AIR

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- E January 30, 2014 Exemption No. 10926 Regulatory Docket No. FAA

- 2013

- 0934

Mr. Keith R. Morgan IAE Manager

Certification & Airworthiness 400 Main Street, M/S 121

- 10 East Hartford, CT 06108

Dear Mr. Morgan :

This letter is to inform you that we have granted your request for exemption. It transmits our decision, explains the basis for our decision, describes its effect, and gives you the conditions and limitations of the exemption, including the date it ends.

The Basis for Our Decision By letter dated October 28 , 201 3 , you petitioned the Federal Aviation Ad ministration (FAA) on behalf of International Aero Engines AG (IAE, AG) for an exemption from §§ 21.142 and 21.147 (14 CFR). That exemption from §§ 21.142 and 21.147 of Title 14, Code of Federal Regulations (14 CFR) would allow IAE , AG to amend its product ion limitation record (PLR)

to allow t he installation of certain interface components (IC) described in an aircraft type

certificate (TC) not held by IAE, AG. Additionally, IAE, AG requests an exemption from § 21.146 to the extent necessary to manufacture completed engi n es that do not conform to their approved design solely because of the installed IC.

The FAA has determined that good cause exists for not publishing a summary of the petition

in the Federal Register because the requested exemption would no t set a precedent, and any delay in acting on this pe tition would be detrimental to IAE, AG

.

The FAA has issued grants of exemption in circumstances similar in all material respects to those presented in your petiti on. In Grant of Exemption Nos. 10079, 10 079A, and 10079B (copies enclosed) , the FAA found that the IC can be installed during production without adversely affecting safety provided the conditions and limitations of th e exemption are met. The manufacturing process and configuration of the IC installation must be documented and approved in a manner acceptable to the FAA. This relief is consistent with the agency’s2

efforts to refine and develop its regulations and explore processes that realize efficiencies and

reduce risk.

Having reviewed your reasons for requesting an exemption, I find that

—

• they are similar in all material respects to relief previously requested in the e nclosed Grant of Exemption Nos. 10079, 10079A, a nd 10079B ;

• the reasons stated by the FAA for granting the enclosed Grant of Exemption Nos. 10079, 10079A, and 10079B ; also apply to the situation you present; and

• for the reasons stated in Grant of Exemption Nos. 10079, 10079A, and 10079B

, a grant of

exem ption is in the public interest.

Our Decision Under the authority contained in 49 U.S.C. §§ 106(f), 40113 and 44701

, which the FAA

Administrator has d elegated to me, I hereby grant International Aero Engines, AG an exemption from 14 CFR §§ 21.142, 21.146 and 21.147 (14 CFR) to the extent necessary to

allow the manufacture and installation of IC described in an aircraft TC not held by IAE, AG

, subj ect to the conditions and limitations described below.

Conditions and Limitations

1. IAE, AG may manufacture IC, which includes single articles or kits that are part of a product TC under parts 23, 25, 27 and 29, and install those components during production

on IAE, AG engines under IAE, AG ’s P roduction C ertificate No.114

- NE . The design data

for the IC must be licensed to IAE, AG and the IC to be installed must be identified on the
IAE, AG PLR.

2. The IC added to the IAE, AG ’s PLR is limited to airframe components specified in condition No. 1. The relief provided by this exemption is limited to th e manufacture of IC

that is to be installed on IAE, AG engines during engine production, shipped loose with a new engine or, as spare or replacement articles.

3. To exercise the privileges of this exemption, IAE, AG must apply to the manager of its

FAA mana ging office using FAA Form 8110

- 12, Application for Type Certificate, Production Certificate, or Supplemental Type Certificate, requesting amendment of IAE,

AG ’s PLR for the manufacture and installation of IC. The data licensed to IAE, AG must be a complet e data package and include design and installation drawings. That data must

be made available to IAE, AG and the FAA upon request.

4. The IC listed on IAE, AG ’s PLR is limited to IC manufactured by IAE, AG under IAE,

AG ’s production certificate. The design data must be licensed from the holder of a U.S.

TC (including an FAA

- validated TC) for the aircraft on which the IAE, AG engine is to be

installed.3

5. The application by IAE, AG to its FAA managing office to amend its PLR must contain the following information:

a. A comprehensive description of the scope of the proposed manufacturing and installation activity for the IC on each affected engine model under the provisions of this exe mption.

b. A specific description of the IC to be installed on each affected IAE, AG engine model, including the part number. Kits combining IC must define the individual IC included in

the kit.

c. The licensing agreement between IAE, AG and the holder of the TC that specifically

identifies the IC to be installed.

d. A description of the documentation to be maintained by IAE, AG identifying the IC by its associated TC, IAE, AG ’s supplier of the IC (if applicable), and the IAE, AG product on

which the IC is instal led.

6. The holder of type design data identifying the IC installed on the IAE, AG product under this exemption retains all the continuing airworthiness responsibilities for the IC. IAE, AG is responsible for all issues related to quality, manufacturing, and installation of the IC by IAE,

AG . The IAE, AG quality manual must include a description of how those responsibilities will be separated, identified, and fulfilled by IAE, AG and the hol der of the TC identifying the

IC.

7. When exercising the privileges of this exemption, the IC may only be installed under the provisions of IAE, AG ’s production certificate.

8. IAE, AG must have procedures and processes in place to ensure the engine, notwith standing the installed IC, conforms to its approved type design, the IC conforms to its approved type design data, and the IAE, AG product with the installed IC is in a condition for safe operation.

9. Prior to manufacturing and installing IC on an engine u nder the provisions of this exemption, IAE, AG must receive confirmation from its FAA certificate managing office that the FAA Transport Airplane Directorate and the FAA Engine and Propeller Directorate have determined that any component IAE, AG intends to manufacture and install under the provisions of this exemption is an IC and that installing the IC during engine manufacture provides a level of safety that is equivalent to that achieved by installation of the IC after engine manufacture.

10. IAE, AG must amend its quality manual to indicate that any FAA airworthiness approval documentation issued for an engine containing IC manufactured and installed under the provisions of this exemption must specify that the IC was installed on the product under a

licens ing agreement.

11. Prior to the issuance of any FAA Form 8130

- 3 for a IAE, AG engine manufactured under the IAE, AG quality system and containing IC manufactured and installed under the provisions of this exemption, IAE, AG must specify in block 13 of the fo rm that:

a. the IC was installed on the engine during manufacture in accordance with Exemption No. (use the assigned exemption number for this exemption)

, b. the IC manufactured and installed under the exemption conforms to its type design, and4

c. the engine, ex cluding the IC installed, conforms to its type design.

12. The privileges of this exemption are extended to IAE, AG consortium engines when the engines are manufactured under IAE, AG 's quality system and completed as a product under IAE, AG ’s production cert ificate. This exemption does not apply when IAE, AG is manufacturing components of a consortium product and the engine is completed under a separate production certificate.

13. Before exercising the privileges of this exemption, IAE, AG must have procedures for dispositioning discrepancies with the IC. Any authority granted by the TC holder in the licensing agreement, allowing for nonconforming material dispositions to be made by IAE,

AG , must be documented in IAE, AG ’s quality procedures. IAE, AG has no auth ority to amend the type design of the IC. All changes to the type design must be made by the design approval holder (i.e., through material review board (MRB) action).

14. IAE, AG ’s manuals relevant to the exempted activity, such as maintenance/operation manuals, and parts catalogs, must be revised to reflect the exempted activity.

This exemption terminates on February 28, 2016

, unless sooner superseded or rescinded.

Sincerely,

/s/

Frank P. Paskiewicz Deputy Director, Aircraft Certification Service

Enclosure s