AFS-12-295-E April 30, 2012

Exemption No. 10520 Regulatory Docket No. FAA-2012-0378

Mr. Jeffrey A. Miller Director of Operations

National Airlines 835 Willow Run Airport Ypsilanti, MI 48198

Dear Mr. Miller:

This letter is to inform you that we have granted your request for exemption. 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 March 28, 2012, you petitioned the Federal Aviation Administration (FAA) on behalf of National Airlines for an exempti on from § 121.434(c)(1)(ii) of Title 14, Code of Federal Regulations (14 CFR) to the extent necessary to allow National Airlines to substitute a qualified and authorized check airman or aircrew program designee for an FAA inspector to observe a qualifying pilot in command (PIC) who is completing initial or upgrade training specified in § 121.424 during at least one fli ght leg that includes a takeoff and landing.

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 not set a precedent, and any delay in acting on this petition would be detrimental to National Airlines.

The FAA has issued a grant of exemption in circumstances similar in all material respects to those presented in your petition. In Grant of Exemption No. 8054 (copy enclosed), the FAA found that subject to certain conditions and limitations, the requirement for an FAA inspector to observe a qualifying PIC before he/she begins operations in an airplane unsupervised may be conducted by and satisfied by the certificate holder’s check airman or aircrew program2

designee. The FAA found that this could be accomplished without reducing the level of safety provided by the regulation.

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

 they are similar in all material respects to relief previously requested in the enclosed Grant of Exemption No. 8054;

 the reasons stated by the FAA for granting the enclosed Grant of Exemption No. 8054 also apply to the situation you present; and

 a grant of exemption is in the public interest.

Our Decision

Under the authority contained in 49 U.S.C. 40113 and 44701, which the FAA Administrator has delegated to me, I hereby grant National Airlines an exemption from 14 CFR § 121.434(c)(1)(ii) to the extent necessary to allow National Airlines to substitute a qualified and authorized check airman in place of an FAA inspector to observe a qualifying PIC while that PIC is performing prescribed dutie s during at least one flight leg that includes a takeoff and landing when completing initial or upgrade training as specified in § 121.424, subject to the conditions and limitations described below.

Conditions and Limitations

1. A National Airlines check airman or aircrew program designee may conduct a PIC observation in place of an FAA inspector when—

a. The Administrator preapproves that substitution for each observation of a qualifying PIC candidate, thus reserving first right of refusal to the FAA in each case. National Airlines, therefore, must contact an appropriate FAA office, in each instance, before substituting that check airman or aircrew program designee;

b. The qualifying PIC candidate has completed no less than 10 hours of supervised operating experience (OE) and accomplished no fewer than two takeoffs and landings; and

c. The qualifying PIC candidate is performing PIC duties during a complete flight leg, including flightdeck preparation, before starting engines checklist, taxi, takeoff, all other flight phases, landing, taxi, and securing checklist.

2. Each National Airlines check airman and aircrew program designee conducting a PIC observation in place of an FAA inspector must—

a. Be approved by the Administrator to conduct the observation;3

b. Have served as a check airman or aircrew program designee for National Airlines for no less than 6 months; and

c. Not supervise the OE or conduct the initial line check for the qualifying PIC candidate being observed.

3. National Airlines must maintain student, check airman, and aircrew program designee records that demonstrate compliance with the conditions and limitations of this exemption.

This exemption terminates on April 30, 2014, unless sooner superseded or rescinded.

Sincerely,

/s/

John S. Duncan Deputy Director, Flight Standards

Service

Enclosure