16236 Federal Register / Vol. 76, No. 56 / Wednesday, March 23, 2011 / Rules and Regulations 

(preamble to proposed part 704 

revisions). The definition of CDO, 

however, was overly broad, in that it 

inadvertently included particular 

investments that did not—when subject 

to the other credit risk and asset liability 

management limitations of part 704— 

present the risk of excessive losses. This 

final rule amends the CDO definition to 

ensure the following are not prohibited: 

Commercial mortgage backed securities; 

securities collateralized by Agency 

mortgage-backed securities (Agency 

MBS); and securities that are fully 

guaranteed as to principal and interest 

by the United States Government and its 

agencies and government sponsored 

enterprises. 

Paragraph 704.6(b) Exemptions to 

§ 704.6 

Section 704.6 generally requires 

corporate investments meet certain 

single obligor concentration limits, 

sector concentration limits, and credit 

rating requirements. Paragraph 704.6(b) 

exempts certain investments, including 

investments generally issued by or 

guaranteed by the U.S. Government or 

its agencies or sponsored enterprises, 

from the requirements of § 704.6. As 

stated in the preamble to the recent 

corporate rule revisions, however, the 

Board did not intend for this exemption 

to apply to agency MBS in the context 

of sector limits. 75 FR 64786, 64806 

(Oct. 20, 2010) (discussing paragraph 

704.6(d)(1)(i)). As drafted, however, not 

only the sector limits apply to agency 

MBS, but the other requirements, 

including single obligor limits and 

credit rating requirements, inadvertently 

apply to agency MBS. This correction 

clarifies the list of exemptions in 

§ 704.6(b) to make clear that Agency 

MBS are subject to the sector 

concentration limits in 704.6(d) but not 

the other requirements of § 704.6. 

Appendix A, Model Form H 

The rule as published included an 

incorrect date instruction on Model 

Form H in Appendix A. Id. at 64851. 

Model Form H included introductory 

text indicating that the form was for use 

before October 20, 2011. In fact, because 

Model Form H deals with perpetual 

contributed capital, the form should be 

used only on and after October 20, 2011. 

The correction replaces the phrase 

‘‘before’’ with the phrase ‘‘on or after.’’ 

II. Interim Final Rule 

NCUA issued an interim final rule 

with request for comment on November 

24, 2010. As discussed in the preamble 

to the interim final rule, the Board 

issued the rule as an interim final rule 

because the changes were technical in 

nature and it was in the public interest 

to have these corrections become 

effective on the same date as the other 

revisions to the corporate rule. 75 FR 

47173, 47174 (Oct. 20, 2010). 

III. Summary of Comments 

NCUA received two comments on the 

interim final rule, both from credit 

union trade associations. Neither 

commenter suggested changes to the 

rule text, but one of the commenters 

sought additional clarification regarding 

NCUA’s treatment of commercial 

mortgage backed securities (CMBS) 

under the revised definition of CDO. 

The commenter requested that NCUA 

state its reasoning for the exclusion of 

CMBS from the definition of CDO and 

also state that if the structure of CMBS 

changes in a way that increases the 

corporates’ risk of loss on these 

investments, NCUA will remove this 

exclusion. 

This commenter appears to have 

misunderstood the effect of the change 

in the definition. The change operates to 

make CMBS a permissible investment 

for corporate credit unions—that is, 

securities collateralized by commercial 

mortgage loans. CDOs collateralized by 

mortgage securities, commercial or 

residential, remain prohibited under the 

definition of CDO. Investments in plainvanilla CMBS, which are collateralized 

by loans, do not pose the same risk as 

investments in securities collateralized 

by other securities where an investor 

cannot as easily determine the quality of 

the underlying loans. Also, as the 

commenter correctly noted, corporate 

credit union investments in CMBS are 

subject to the sector concentration limits 

imposed under § 704.6(d). Finally, 

NCUA will continually monitor 

corporates’ investments and make 

adjustments to the corporates’ 

investment authorities where 

appropriate. 

IV. Regulatory Procedures 

Section D of the Supplementary 

Information to the November 2010 

interim final rule sets forth the Board’s 

analyses under the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.), the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3506; 5 CFR part 1320 Appendix 

A.1), the Small Business Regulatory 

Enforcement Fairness Act (Pub. L. 104– 

121), Executive Order 13132, and the 

Treasury and General Government 

Appropriations Act (Pub. L. 105–277, 

112 Stat. 2681 1998). See 75 FR 71527— 

71528. Because the final amendments 

are clarifications and do not alter the 

substance of the analyses and 

determinations accompanying that final 

rule, the Board continues to rely on 

those analyses and determinations for 

purposes of this rulemaking. 

List of Subjects in 12 CFR Part 704 

Credit unions, Corporate Credit 

Union, Reporting and recordkeeping 

requirements. 

By the National Credit Union 

Administration Board on March 17, 2011. 

Mary F. Rupp, 

Secretary of the Board. 

Accordingly, the interim final rule 

amending 12 CFR Part 704, which was 

published at 75 FR 71526 on November 

24, 2010, is adopted as a final rule 

without change. 

[FR Doc. 2011–6755 Filed 3–22–11; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 91 

[Docket No. FAA–2011–0246; Amendment 

No. 91–321; SFAR No. 112] 

RIN 2120–AJ93 

Prohibition Against Certain Flights 

Within the Tripoli (HLLL) Flight 

Information Region (FIR) 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: This action prohibits flight 

operations within the Tripoli (HLLL) 

Flight Information Region (FIR) by all 

U.S. air carriers; U.S. commercial 

operators; persons exercising the 

privileges of a U.S. airman certificate, 

except when such persons are operating 

a U.S.-registered aircraft for a foreign air 

carrier; and operators of U.S.-registered 

civil aircraft, except when such 

operators are foreign air carriers. The 

FAA finds this action necessary to 

prevent a potential hazard to persons 

and aircraft engaged in such flight 

operations. 

DATES: This action is effective March 21, 

2011. 

FOR FURTHER INFORMATION CONTACT: For 

technical questions about this final rule, 

contact: David Catey, William Gonzalez, 

or Steven Laurenzo, Air Transportation 

Division, Flight Standards Service, 

Federal Aviation Administration, 800 

Independence Avenue, SW., 

Washington, DC 20591. Telephone: 

202–267–3732, 202–267–4080, and 202– 

267–8772, respectively. For legal 

questions contact: Lorna John, Office of 

the Chief Counsel, AGC–200, Federal 


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Federal Register / Vol. 76, No. 56 / Wednesday, March 23, 2011 / Rules and Regulations 16237 

1Coverage under FAA premium war risk 

insurance policies is suspended as a condition of 

the premium war risk policy at any time an 

Continued 

Aviation Administration, 800 

Independence Avenue, SW., 

Washington, DC 20591; telephone (202) 

267–3921. 

SUPPLEMENTARY INFORMATION: 

Authority for This Rulemaking 

The FAA is responsible for the safety 

of flight in the United States (U.S.) and 

for the safety of U.S. civil operators, 

U.S.-registered aircraft, and U.S.- 

certificated airmen throughout the 

world. Also, the FAA is responsible for 

issuing rules affecting the safety of air 

commerce and national security. The 

FAA’s authority to issue rules for 

aviation safety is found in Title 49 of the 

United States Code. Subtitle I, section 

106(g), describes the authority of the 

FAA Administrator. Subtitle VII, 

Aviation Programs, describes in more 

detail the scope of the agency’s 

authority. Section 40101(d)(1) provides 

that the Administrator shall consider in 

the public interest, among other matters, 

assigning, maintaining, and enhancing 

safety and security as the highest 

priorities in air commerce. Section 

40105(b)(1)(A) requires the 

Administrator to exercise his authority 

consistently with the obligations of the 

United States Government under 

international agreements. Furthermore, 

the FAA has broad authority under 

section 44701(a)(5) to prescribe 

regulations governing the practices, 

methods, and procedures the 

Administrator finds necessary for safety 

in air commerce and national security. 

I. Background 

The FAA has safety and national 

security concerns regarding flight 

operations in the Tripoli FIR (HLLL). An 

armed conflict is ongoing in Libya and 

presents a potential hazard to civil 

aviation. The runways at Libya’s 

international airports, including the 

main international airports serving 

Benghazi (HLLB) and Tripoli (HLLT) 

may be damaged or degraded. Air 

navigation services in the Tripoli 

(HLLL) FIR may also be unavailable or 

degraded. In addition, the proliferation 

of air defense weapons, including ManPortable Air-Defense Systems 

(MANPADS), and the presence of 

military operations, including Libyan 

aerial bombardments and unplanned 

military flights entering and departing 

the Tripoli FIR (HLLL), pose a potential 

hazard to U.S. operators, U.S.-registered 

aircraft, and FAA-certificated airmen 

that might operate within the Tripoli 

FIR (HLLL). 

On March 18, 2011, the UN Security 

Council adopted Resolution 1973. 

Paragraph 6 of that Resolution mandates 

a ban on all flights in the airspace of 

Libya, with certain exceptions detailed 

in Paragraph 7. Paragraph 7 also 

requires that any flights in Libya be 

coordinated with any mechanism 

established under Paragraph 8 of the 

Resolution. 

Because the circumstances described 

herein warrant immediate action by the 

FAA, I find that notice and public 

comment under 5 U.S.C. 553(b)(3)(B) are 

impracticable and contrary to the public 

interest. Further, I find that good cause 

exists under 5 U.S.C. 553(d) for making 

this rule effective immediately upon 

issuance. I also find that this action is 

fully consistent with the obligations 

under 49 U.S.C. 40105 to ensure that I 

exercise my duties consistently with the 

obligations of the United States under 

international agreements. 

Approval Based on Authorization 

Request of an Agency of the United 

States Government 

If a department, agency, or 

instrumentality of the U.S. Government 

determines that it has a critical need to 

engage any person covered under SFAR 

No. 112, § 91.1603(a), including a U.S. 

air carrier or a U.S. commercial operator 

for a charter to transport civilian or 

military passengers or cargo, the U.S. 

Government department, agency, or 

instrumentality may request the FAA 

approve persons covered under SFAR 

No. 112, § 91.1603(a) to conduct such 

operations. 

An approval request must be made in 

a letter signed by an appropriate senior 

official of the requesting department, 

agency, or instrumentality of the U.S. 

Government; the letter must be sent to 

the Associate Administrator for 

Aviation Safety (AVS–1), Federal 

Aviation Administration, 800 

Independence Avenue, SW., 

Washington, DC 20591. Electronic 

submissions are acceptable, and the 

requesting agency may request an 

electronic copy of the FAA’s response. 

Electronic submissions to the FAA 

should be sent to sfar112@faa.gov. A 

single letter may request approval from 

the FAA for multiple persons covered 

under SFAR No. 112, § 91.1603(a), and/ 

or for multiple flight operations. To the 

extent known, the letter must identify 

the person(s) expected to be covered 

under the SFAR on whose behalf the 

U.S. Government department, agency, or 

instrumentality is seeking FAA 

approval, and it must describe— 

• The proposed operation(s), 

including the nature of the mission 

being supported; 

• The service to be provided by the 

person(s) covered by the SFAR; 

• To the extent known, the specific 

locations within the Tripoli (HLLL) FIR 

where the proposed operation(s) will be 

conducted; 

The request for approval must also 

include a list of operators, including 

subcontractors, with whom the U.S. 

Government department, agency, or 

instrumentality requesting FAA 

approval has a current contract(s), 

grant(s), or cooperative agreement(s) for 

specific flight operations in the Tripoli 

(HLLL) FIR. Additional contracted 

operators may be identified to the FAA 

at any time after the FAA approval is 

issued. Updated lists should be sent to 

sfar112@faa.gov. 

If an approval request includes 

classified information, you may contact 

Aviation Safety Inspectors David Catey, 

William Gonzalez, or Steven Laurenzo 

for instructions on submitting it to the 

FAA. Their contact information is listed 

in the FOR FURTHER INFORMATION

CONTACT section of this final rule. 

FAA approval of the operation under 

SFAR No. 112, § 91.1603(c), does not 

relieve persons subject to the SFAR of 

their responsibility to comply with all 

applicable FAA rules and regulations. 

Operators of civil aircraft will have to 

comply with the conditions of their 

certificate and Operations Specifications 

(OpSpecs). In addition, operators will 

have to comply with all rules and 

regulations of other U.S. Government 

departments or agencies that may apply 

to the operation, including, but not 

limited to, the Transportation Security 

Regulations issued by the 

Transportation Security Administration, 

Department of Homeland Security. 

Approval Conditions 

When the FAA approves the request, 

the FAA’s Aviation Safety Organization 

(AVS) will send a letter to the 

requesting department, agency, or 

instrumentality confirming that the 

FAA’s approval is subject to the 

following conditions: 

(1) The approval will stipulate those 

procedures and conditions that limit, to 

the greatest degree possible, the risk to 

the operator while still allowing the 

operator to achieve its operational 

objectives. 

(2) Any approval will specify that the 

operation is not eligible for coverage 

under a premium war risk insurance 

policy issued by the FAA under section 

44302 of chapter 443 of title 49, United 

States Code. 

(3) If the operator is already covered 

by a premium war risk insurance policy 

issued by the FAA,1 the FAA will issue 


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16238 Federal Register / Vol. 76, No. 56 / Wednesday, March 23, 2011 / Rules and Regulations 

operation is covered by non-premium war risk 

insurance through a contract with a department, 

agency, or instrumentality of the U.S. Government 

under 49 U.S.C. 44305. 

an endorsement to the operator’s 

premium war risk insurance policy that 

specifically excludes coverage for any 

operations in the Tripoli (HLLL) FIR, 

including operations under a flight plan 

that contemplates landing in or taking 

off from Libyan territory. The 

endorsement to the premium war risk 

insurance policy will take effect before 

the approval’s effective date. The 

operator must further establish that it 

has obtained substitute war risk 

coverage for operations in the Tripoli 

FIR. Additionally, before any approval 

takes effect, the operator must submit to 

the FAA a written release of the U.S. 

Government from all claims and 

liabilities, and its agreement to 

indemnify the U.S. Government with 

respect to any and all third-party claims 

and liabilities relating to any event 

arising from or related to the approved 

operations in the Tripoli (HLLL) FIR. 

This waiver of claims does not preclude 

an operator from raising a claim under 

an effective non-premium war risk 

insurance policy issued by the FAA. 

(4) Other conditions as determined by 

the FAA. 

The FAA will issue OpSpecs to the 

certificate holder authorizing these 

operations. The FAA may impose 

additional conditions on operators 

through Operations Specifications or 

letters of authorization. The FAA will 

notify requesting departments or 

agencies of FAA approval of civil 

operations under agreement with a U.S. 

government agency of any additional 

conditions beyond those contained in 

the approval letter. 

Request for Exemptions 

Any operations not conducted under 

the approval process discussed above 

must be conducted under an exemption 

to this SFAR. A request by any person 

covered under SFAR No. 112, 

§ 91.1603(a) for an exemption must 

comply with 14 CFR part 11, and will 

require exceptional circumstances 

beyond those contemplated by the 

approval process set forth in this SFAR. 

Additionally, the endorsement of any 

premium war risk insurance policy and 

a waiver and indemnification agreement 

will also be required as a condition of 

any exemption issued under SFAR No. 

112, § 91.1603(c). The FAA recognizes 

that there may be operations conducted 

by other States with the support of the 

U.S. government. These operations 

would not be permitted under the 

approval process; however, the FAA 

will process these exemption requests 

on an expedited basis and prior to any 

private exemption requests. 

Regulatory Analysis 

This rulemaking action is taken under 

an emergency situation within the 

meaning of Section 6(a)(3)(d) of 

Executive Order 12866, Regulatory 

Planning and Review. It also is 

considered an emergency regulation 

under Paragraph 11g of the Department 

of Transportation (DOT) Regulatory 

Policies and Procedures. In addition, it 

is a significant rule within the meaning 

of the Executive Order and DOT’s 

policies and procedures. The FAA 

expects there will be some costs 

associated with this emergency rule, but 

is unable to quantify those costs at this 

time. However, the FAA also expects 

that few, if any, operators subject to this 

SFAR are actually operating in the 

Tripoli (HLLL) FIR given the current 

state of affairs. Accordingly, the costs of 

this SFAR would be minimal. 

As the FAA Administrator I certify 

that this rule will not have a significant 

economic impact on a substantial 

number of small entities as defined in 

Regulatory Flexibility Act of 1980 (Pub. 

L. 96–354), as amended. Because the 

rule is being issued for aviation safety, 

it is not considered an unnecessary 

obstacle to international trade under the 

Trade Agreements Act of 1979 (Pub. L. 

96–39) and does not create an unfunded 

mandate for any entity. 

Availability of Rulemaking Documents 

You can get an electronic copy of 

rulemaking documents using the 

Internet by— 

1. Searching the Federal eRulemaking 

Portal (http://www.regulations.gov); 

2. Visiting the FAA’s Regulations and 

Policies Web page at http:// 

www.faa.gov/regulations_policies/ or 

3. Accessing the Government Printing 

Office’s Federal Digital System at: 

http://www.gpo.gov/fdsys/. 

You can also get a copy by sending a 

request to the Federal Aviation 

Administration, Office of Rulemaking, 

ARM–1, 800 Independence Avenue, 

SW., Washington, DC 20591, or by 

calling (202) 267–9680. Make sure to 

identify the amendment or docket 

number of this rulemaking. 

Small Business Regulatory Enforcement 

Fairness Act 

The Small Business Regulatory 

Enforcement Fairness Act (SBREFA) of 

1996 requires FAA to comply with 

small entity requests for information or 

advice about compliance with statutes 

and regulations within its jurisdiction. If 

you are a small entity and you have a 

question regarding this document, you 

may contact your local FAA official, or 

the person listed under the FOR FURTHER

INFORMATION CONTACT heading at the 

beginning of the preamble. You can find 

out more about SBREFA on the Internet 

at http://www.faa.gov/ 

regulations_policies/rulemaking/ 

sbre_act/. 

List of Subjects in 14 CFR Part 91 

Air traffic control, Aircraft, Airmen, 

Airports, Aviation safety, Freight, Libya. 

The Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

amends Chapter I of Title 14, Code of 

Federal Regulations, as follows: 

PART 91—GENERAL OPERATING AND 

FLIGHT RULES 

■ 1. The authority citation for part 91 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 1155, 40103, 

40113, 40120, 44101, 44111, 44701, 44709, 

44711, 44712, 44715, 44716, 44717, 44722, 

46306, 46315, 46316, 46504, 46506–46507, 

47122, 47508, 47528–47531; articles 12 and 

29 of the Convention on International Civil 

Aviation (61 Stat. 1180). 

■ 2. In part 91, add Subpart M, 

consisting of § 91.1603 to read as 

follows: 

Subpart M—Special Federal Aviation 

Regulations 

§ 91.1603 Special Federal Aviation 

Regulation No. 112—Prohibition Against 

Certain Flights Within the Tripoli (HLLL) 

Flight Information Region (FIR). 

(a) Applicability. This section applies 

to the following persons: 

(1) All U.S. air carriers and U.S. 

commercial operators; 

(2) All persons exercising the 

privileges of an airman certificate issued 

by the FAA, except when such persons 

are operating a U.S.-registered aircraft 

for a foreign air carrier; and 

(3) All operators of U.S.-registered 

civil aircraft, except operators of such 

aircraft that are foreign air carriers. 

(b) Flight prohibition. Except as 

provided in paragraphs (c) and (d) of 

this section, no person described in 

paragraph (a) of this section may 

conduct flight operations within the 

Tripoli (HLLL) FIR. 

(c) Permitted operations. This section 

does not prohibit persons described in 

paragraph (a) of this section from 

conducting flight operations within the 

Tripoli (HLLL) FIR under the following 

conditions: 

(1) Flight operations are conducted 

under a contract, grant or cooperative 

agreement with another department, 


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Federal Register / Vol. 76, No. 56 / Wednesday, March 23, 2011 / Rules and Regulations 16239 

agency, or instrumentality of the United 

States Government with the approval of 

the FAA, or by an exemption issued by 

the Administrator. The FAA will 

process requests for approval or 

exemption in a timely manner, with an 

order of preference first for those 

operations in support of U.S. 

government-sponsored activities, 

second for those operations in support 

of government-sponsored activities of 

another State with the support of a U.S. 

government agency, and third for all 

other operations. 

(2) Flight operations are coordinated 

with any mechanism established by 

paragraph 8 of U.N. Security Council 

Resolution 1973 (2011). 

(d) Emergency situations. In an 

emergency that requires immediate 

decision and action for the safety of the 

flight, the pilot in command of an 

aircraft may deviate from this section to 

the extent required by that emergency. 

Except for U.S. air carriers and 

commercial operators that are subject to 

the requirements of 14 CFR parts 119, 

121, 125, or 135, each person who 

deviates from this section must, within 

10 days of the deviation, excluding 

Saturdays, Sundays, and Federal 

holidays, submit to the nearest FAA 

Flight Standards District Office a 

complete report of the operations of the 

aircraft involved in the deviation, 

including a description of the deviation 

and the reasons for it. 

(e) Expiration. This Special Federal 

Aviation Regulation will remain in 

effect for 3 years from the effective date. 

The FAA may amend, rescind, or extend 

this Special Federal Aviation Regulation 

as necessary. 

Issued in Washington, DC on March 20, 

2011. 

J. Randolph Babbitt, 

Administrator. 

[FR Doc. 2011–6942 Filed 3–21–11; 4:15 pm] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Parts 91 and 119 

Moratorium on New Exemptions for 

Passenger Carrying Operations 

Conducted for Compensation and Hire 

in Other Than Standard Category 

Aircraft 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Policy statement. 

SUMMARY: This document announces a 

temporary moratorium on new requests, 

or changes to exemptions from certain 

sections of Title 14, Code of Federal 

Regulations (14 CFR) for the purpose of 

carrying passengers for compensation or 

hire on Living History Flight 

Experiences (LHFE). It explains the 

history of these exemptions and the 

reason for the temporary moratorium. 

DATES: This moratorium becomes 

effective on March 23, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Raymond Stinchcomb, General Aviation 

and Commercial Division, General 

Aviation Operations Branch (AFS–830), 

Flight Standards Service, FAA, 800 

Independence Avenue, SW., 

Washington, DC 20591; telephone (202) 

267–8212. 

SUPPLEMENTARY INFORMATION: 

Background 

In 1996, the FAA granted an 

exemption from various requirements of 

part 91 and part 119 to an aviation 

museum/foundation allowing the 

exemption holder to operate a large, 

crew-served, piston-powered, 

multiengine, World War II (WWII) 

bomber carrying passengers for the 

purpose of preserving U.S. military 

aviation history. In return for donations, 

the contributors would receive a local 

flight in the restored bomber. Without 

these contributions, the petitioner 

asserted that the cost of operating and 

maintaining the airplane would be 

prohibitive. 

The FAA determined that these 

airplanes were operated under a limited 

and experimental category 

airworthiness certificate. Without type 

certification under Title 14 Code of 

Federal Regulations (14 CFR) § 21.27, 

they are not eligible for standard 

airworthiness certificates. The high cost 

of type certification under § 21.27 makes 

this avenue impractical for operators 

providing living history flights. 

Comparable airplanes manufactured 

under a standard airworthiness 

certificate did not exist. Thus, the FAA 

determined that an exemption was an 

appropriate way to preserve aviation 

history and keep the airplanes 

operational. In granting the exemption, 

the FAA found there was an 

overwhelming public interest in 

preserving U.S. aviation history, just as 

the preservation of historic buildings, 

historic landmarks, and historic 

neighborhoods have been determined to 

be in the public interest. While aviation 

history can be represented in static 

displays in museums, in the same way 

historic landmarks could be represented 

in a museum, the public has shown 

support for and a desire to have these 

historic aircraft maintained and 

operated to allow them to experience 

flight in these aircraft. 

A 2004 policy explicitly limited the 

scope of LHFE exemptions to WWII or 

earlier vintage airplanes. The reasons 

enumerated in the statement addressed 

both public interest (e.g. the unique 

opportunity to experience flight in a B– 

17 or B–24 while such aircraft can still 

be safely maintained) and public safety 

(i.e. older and slower multiengine 

airplanes allow time for appropriate 

corrective measures in the event of an 

in-flight emergency and such crews 

must meet FAA qualifications and 

training requirements). The FAA stated 

that the agency did not believe it 

prudent to grant exemptions from the 

FAA regulations to operators of 

supersonic jets. 

In response to numerous requests to 

expand the scope of the exemptions, the 

FAA requested comments on a proposed 

policy in 2006, and subsequently 

published a new policy on October 9, 

2007 (72 FR 57196). 

The 2007 policy statement agreed to 

consider any request for exemption for 

passenger-carrying flights in nonstandard category aircraft, especially 

former military turbine-engine-powered 

aircraft, on a case-by-case basis. For 

petitioners intending to operate 

experimental exhibition, surplus foreign 

or domestic aircraft, and/or turbojet or 

turbine-powered aircraft, it stated that 

the FAA would closely examine the 

proposed operation with respect to 

safety of flight, passenger safety 

considerations, and safety of the nonparticipating public during the 

operational period and within the 

operational area before approving a 

LHFE exemption. Other criteria 

included passenger/crew egress, 

emergency egress systems such as 

ejection seats, documentation or 

statistical make and model operational 

history, historical significance of the 

particular aircraft, maintenance history, 

operational failure modes, and aging 

aircraft factors. The 2007 policy also 

observed that some of the aircraft in 

question are complex in nature, 

requiring special skills to operate safely, 

and that military equipment such as 

ejection seat systems can pose 

additional risk to aircraft occupants, 

ground personnel, and non-participating 

bystanders on the ground. 

Also in the 2007 statement, the FAA 

cautioned that those requesting an 

exemption from a particular standard or 

set of standards must demonstrate that 

(1) there is an overriding public interest 

in providing a financial means for a 

non-profit organization to continue to 

preserve and operate these historic 

aircraft, and (2) adequate measures 


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