AIR-16-9314-E March 30, 2016

Exemption No. 11771A Regulatory Docket No. FAA-2015-0058

Mr. Loren Crea Director of Flight Operations Neptune Aviation Services Inc. 2 Corporate Way

Missoula, MT 59808

Dear Mr. Crea:

This letter is to inform you that we have granted your petition to extend and amend Exemption No. 11771. It transmits our decision, explains its basis, and gives you the conditions and limitations of the exemption, including the date it ends.

The Basis for Our Decision

By letter dated December 2, 2015, you petitioned the Federal Aviation Administration (FAA) on behalf of Neptune Aviation Services, Inc. (Neptune) for an extension of, and amendment to, Exemption No. 11771. That exemption from § 91.611 of Title 14, Code of Federal Regulations (14 CFR) allows Neptune to conduc t ferry flights with one engine inoperative on its BAe 146-200A aircraft to one of Neptune’s maintenance facilities without obtaining a special flight permit (SFP) for each flight.

The amendment you request would allow Neptune to fly its BAe 146-200A aircraft that do not meet applicable airworthiness requirements, but is capable of safe flight, to a base where repairs are to be performed, without obtaining a SFP for each flight.

In your petition, you indicate that there has been no change in the conditions and reasons relative to public interest and safety that were the basis for granting the original exemption.

A summary of the petition was published in the Federal Register on January 12, 2016 (81 FR 1468). No comments were received.2

In your original petition for exemption, you asked for the relief necessary to permit Neptune to ferry a BAe-146 airplane with one engine inoperative to a maintenance facility, without obtaining a SFP for each flight. Because § 91.203 specifically allows flights under § 91.611, we determined that relief from § 21.197 was not necessary. Your request for amendment clarified that you also wanted relief to conduct ferry flights for other maintenance purposes.

Neptune supports its request with the following information concerning an equivalent level of safety:

While Neptune Aviation is operating under Part 91 for the majority of our flight time, and then under Part 137 while in the fire control area, the company has chosen to mimic much of Part 121 and 135 Air Carrier regulatory requirements. We enhance safety and streamline flight and maintenance operations through company policy that have established the following items:

1. Operate a 24/7 Maintenance Control Center (MCC) to manage the fleet needs while deployed on contract. 2. A comprehensive maintenance Required Item Inspection (RII) program has been developed and implemented for both the P2V and BAe-146 fleets. 3. Neptune Aviation has a Safety Management System (SMS) program in place. 4. Flight and maintenance personnel receive annual and specialized training. 5. Instituted a Deferred Maintenance Item (DMI) Program and a formal Functional Check Flight (FCF) program for post-maintenance events, i.e., heavy checks, annual inspections, modification, etc. 6. The company operates two Part 145 Certificat ed Repair Stations (Missoula, MT and Alamogordo, NM) to support the fleet while deployed and to perform annual inspections and maintenance checks.

Additional factors with a positive impact on safety include:

 Neptune’s airplanes were originally type certificated as transport category airplanes, the most stringent airworthiness standard for airplanes.

 The BAe-146s are powered by four turbofan engines.

 Neptune’s implementation of air carrier like operations and maintenance procedures.

 Oversight provided by the Helena Flight Standards District Office (FSDO)

Considering the foregoing, along with the conditions and limitations placed in this exemption, the FAA finds that an equivalent level of safety, as provided by the rule, will be met by this exemption.3

Our Decision

The FAA has determined that the justification for the issuance of Exemption No. 11771 remains valid with respect to this exemption and is in the public interest. Therefore, under the authority provided by 49 U.S.C. §§ 106(f), 40113 and 44701, which the FAA Administrator has delegated to me, I grant Neptune Aviation Services, Inc. (Neptune) an exemption from 14 CFR §§ 21.197 and 91.611 to apply for and be issued an authorization for ferry flight with one engine inoperative and a special flight pe rmit with a continuing authorization without holding an air carrier or an operating certificate, subject to the conditions and limitations

listed below.

Conditions and Limitations

1. The provisions of this exemption are limited to Neptune’s BAe 146-200A aircraft while they are being operated by Neptune’s pilots.

2. Before exercising the privileges of this exemption, Neptune must provide the Helena FSDO with the names and position title of the BAe-146 fleet Director of Maintenance (DOM), Director of Flight Operations (D FO), and Neptune President/Chief Operating Officer. During the use of this exemption, Neptune must promptly notify the Helena FSDO of any changes in these management personnel or BAe-146 fleet policies and procedures. If changes to these management personnel, policies, or procedures affect the conditions/limitations of this exemption, no ferry flights may be conducted until the change is reviewed by the FAA and its impact on the conditions/limitations of this exemption is determined.

3. Before exercising the privileges of this exemption, Neptune must provide the Helena FSDO, 2725 Skyway Drive, Helena, MT 59602, with a current copy of its company policy and procedures manual. Neptune must also provide the FSDO with any changes to that manual. A current copy of the FAA approved airplane flight manual (AFM) and aircraft maintenance manual (AMM) must also be provided to the FSDO. If changes to the manual affect the provisi ons of this exemption, no ferry flights can be conducted until the change is reviewed by the FAA and its impact on the conditions of this exemption is determined.

4. Before exercising the privileges of this exemption, Neptune must apply for and receive a special flight permit with a con tinuing authorization from the Helena FSDO.

5. Before exercising the privileges of this exemption, Neptune must apply for and receive an authorization for ferry flight w ith one engine inoperative from the Helena

FSDO.

6. Before each flight under this exemption, an appropriately rated and certificated

maintenance technician must determine if the aircraft is capable of safe flight. The4

technician must make an entry in the aircraft’s maintenance records certifying that the airplane is safe for flight.

7. When conducting a one-engine-inoperative ferry flight, Neptune must comply with all the provisions of § 91.611, except for holding an air carrier or an operating certificate.

8. When exercising the privileges of this exemption, one-engine-inoperative ferry flights must be conducted by a flight crew that ha ve received appropriate training in threeengine ferry flights in accordance with Neptune’s FAA approved BAe-146 AFM and AMM three-engine ferry procedures.

9. Flights conducted pursuant to § 21.197 under this exemption are limited to flying the aircraft to a base where maintenance or alterations are to be performed.

10. This exemption is only valid while Neptune’s part 137 agricultural operator certificate is not surrendered, suspended, or revoked.

11. This exemption is not valid for operating outside the United States.

The Effect of Our Decision

This exemption terminates on June 30, 2018, unless sooner superseded or rescinded.

Sincerely,

//s//

David W. Hempe Deputy Director, Aircraft Certification Service