05/05/201 0 1G:2 4 FA X 202493514 2 FA A ^ DM S 0001/03 1



### U.S . DEPARTMEN T O FTRANSPORTATIO N

OFFIC E O FHEARING S ^ ' FEDERA L AVIATIO N ADMINISTRATIO N

FEDERA L AVIATIO N ADMINISTRATION , Complainant ,

vs . 

### ATRTRA N AIRWAYS , TH

C Respondent . FAA Docke t No . CP10SO000 2 Judg e Bcnkii i

1 1 

### M0 1 IO N FO RDECISIO N O N TH E PLEADING S O RT N TH FALTERNATIVE . MOTIO N FO RHEARIN G O N SANCTIO N ONL Y ci 5 

### Complainant , by an dthroug h th e undersigne dcounsel , pursuan t t o §13.218(t)(5 ) of

th e Rule s of Practic e (1 4 C.F.R . 13,218(f)(5)) , hereb y file s it s Motio n for Decisio n o n th e Pleading; ; o r in th e alternative , Motio n fo r Hearin g o n Sanctio n Only . In support thereof , Complainant state s th e following : 1 . Motion s fo

r decisio n ar

e analogou s t

o motion s fo

r summar y judgment

under Rul e 5 6 o f th e Federa

l Rule s o f Civi l Procedure . Sec , e.g. . Horizo n Ai r Industries . Inc. . FA

A Order No . 96

- 24 a l 6 n. 3 (1996) . Pursuan t

t o thi s rule , th e movin g part y ha s th e burde n o f

"identifyin g fo

r th e cour t th e portion s o f

th e material s o n file tha

t i t believe s demonstrat e th e absenc e o f any genuin e issu e of material fact. " Elec . Servic e v . Pacifi c Elec . Contractors . 80 9 F.2 d626 , 63 0 (9l h Cir .05/05/201 0 1G:2 4 FA X 202493514 2 FA A + DMS I2|002/03 1



### 1987) . Inference s fro

mth e fact s mus t

b e draw n i n th e light

mos t favorabl e t o th e non-movin g parly . Id . a

t 631 . 2 . I n it s answer s to th e complaint , Respondent admitte dParagraph s 1 througl i 9 , whic h contai n all o f

th e factua

l allegation s a

t issue . Th e Respondent

onl y denie dth e allegation s in Paragrajjh s 1 0 o f

th e complaint. ' Respondent denie dthat

th e civi l penalty o f

$15,00 0 sought

b y ihc Complainant

i s appropriate . Se e Exhibi t 1 , Answer

o f Responden t

date dApri l 15 , 2010

-

A s th e allegation s ar

e admitted , there remain n o genuin e issue s o f material fact . Consequently , Complainan t i s entitle dt

o ajudgmen t

o n th e pleadings . Pursuan t t o 1 4 C.F.R . §13.218(f)(5 ) o f

th e Rule s o f

Practice , th e gran

t o f amotio n fo

r decisio n i s calle dfo

r if , amon g other things , "admission s . . . sho w tha t ther e i s n o genuin e issu e o f material fact

an dtha t th e paa y makin g th e motio n i s entitle dto adecisio n a s amatter o f law. " Thus , th e onl y remainin g issu e i s sanction . 4 . The complaint

charge dRespondent

wit h aviolatio n o f

Sectio n 121.467(b)(13 ) o f th e Federa l Aviation Regulation s (FAR) (Titl e 1 4 o f th e Code o f

Federa l Regulations) , fo

r failing t o reliev e aflight

attendant fromflirthe

r dut y fo r a t leas t twenty-fou

r (24 ) consecutiv e hour s durin g an y seve n (7 ) consecutiv e calenda

r days . In accordanc e wit

h Section s 46301(a)-(d ) o f Titl e 4 9 o f th e Unite dState s Cod e (Transportation ) (4 9 U.S.C.§46301(a)-(d)) , Responden t i s liabl e fo

r a civil penall y no i l o excee d$25,00 0 fo r each violatio n o f

th e FARs .

Th e Complaina

mnote s tha

t it s complain t

date dFebruary 24 , 201 0 doe s no t contai n aparagrap h II .05/05/201 0 1B:2 4 FA X 202493514 2 FA A • » DM S 0003/03 1



### Tli c Complainant' s Tabl e o f Sanction s include di n FAA Orde r 2150,3 B effectiv e October 1 , 2007 , set s fort

h th e FAA Administrator' s polic y guidanc e fo r us e b y agenc y employee s involve din th e investigatio n an dprosecutio n o f enforcement

cases . Th e sanctio n guidanc e als o reflect s th e Administrator' s general view s abou t th e civi l penalty range s that are appropriate fo

r differen t type s o f violations . Se e I n th e Matte r o f Folsom' s Air

Service , Inc. , FA A Order No . 2008-1 1 (November

6 , 2008) . Th e Tabl e o f Sanction s i n th e 2150.3 B was formulate dlike it s predecesso r

guidanc e i n th e 2150.3 A t o consider th e nature , circumstances , exten t an dgravit

y o f eac h genera

l typ e o f vjolaiion . T o tha

t end , th e Tabl e o f

Sanction s are categorize dinto civi l penalt y range s base do n th e typ e o f violato r (i.e . individual , smal l busines s concern , o r larg e busines s concern. ) Se e Exhibi t 2 , Orde r 2150.3 B Tabi c o f

Sanctions . A revie w o f

th e Tabl e o f Penaltie s indicate s fo

r violation s committe db y U.S . Air Carrier s or

U.S . Commercia l Operator s wh o ar c classifie da s larg e busines s concerns , th e maximu mcivi l penalty i s $25,00 0 pe r violation . Se e Exhibi t

2 a t page s B- 3 throug h B-4 . Th e Responden t

i s aU.S . Air

Carrier tha t meet s th e definitio n o f alarg e busines s concern , Th e Tabl e o f

Sanction s indicate s that

alarg e busines s concer

n i s a n ai r carrie r operatin g under par t 12 1 o r par t 135 , with a

n aimua l operatin g revenu e o f

$100,000,00 0 o r

more . Operatin g revenu e i s determine db y referenc e t o DOT' s "Ai r Carrie r Industry Schedule dServic e Traffi c Statistic s Quarterly, " whic h i s foundon th e Department' s websit e a t htip://ostpxweb.dot,gov/aviation/index.html . andclickin g o n "Airlin e Financia l Review. " Se e Exliibi t 2 a t pag e B-3 . A revie w o f

th e "Airlin e Quarterl y Financial Review " for Fourt h Quarter 2009 , th e mos t

recen t report available , reveal s tha

t Responden t

AirTra n Airways , ha doperatin g revenu e fo

r th e quarte r

endin g December

200 9 o f $598. 4 millio n dollars . Se e Exhibi t 3 , a t pag e 18 . B y reaso n o f

th e foregoing . Responden t i s classifie dunde r

th e Complainant' s Tabl e o f05/05/201 0 1G;2 5 FA X 202493514 2 FA A+ DM S @1004/03 1



### Sanction. s a s aGroup 1 Ai r Carrier . Th e sanctio n range s include di n th e Administrator' s sanctio n polic y ar e designe dto reflec t

th e agency' s positio n that th e siz e o f

acivi l penalty shoul dvar y dependin g upo n th e siz e o f th e canier . Th e Administrato r

state s i n th e 2150.3 B that sanction s shoul db e deterren t an dtha t th e sanctio n shoul db e hig h enoug h t o remov e an y profi t incentiv e fo

r violations . Penaltie s shoul d never b e permitte dt o b e acos t

o f doin g business . Therefore , th e FA A use s ai r carrie r si^ e a s on e mean s o f ensurin g arelativel y equivalen t deterrent effect o n each ai r

earne r tha t violate s th e same FA A regulation . Se e Exhibi t 4 , FAA Order

2150.3B , Chapter

7 , Paragrap h 4(j ) a

t pag e 7

- 8 ; Se e als o I

n th e Matte r

o f Folsom' s Ai r

Service , Inc. . FA A Orde r No . 2008-1 1 (2008) . Th e Tabl e o f

Sanction s establishe s fo r fligh t an dduty tim e violation s th e appropriate sanctio n i s aModerat e civi l penalty . Fo r "Group 1 Air

Carrier s - larg e busines s concerns " th e Moderate sanctio n rang e i s $10,000- $ 18,74 9 fo r eac h violatio n o f

th e FARs . Se e Exhibi t

2 a t pag e B-3 . Th e 2150.3 B indicate s tha t fo r single , first-time, inadverten t violations , whe

n deieiminin g aspecifi c sanctio n amoun t withi n arange , FAA enforcement personne l begi n wit

h a n amoun t i n th e middl e o f

th e rang e andincreas e tha t amount towar dth e highe r

endo f th e rang e fo r aggravatin g factor s o r

decreas e that

amount towardth e lower

en do f th e rang e fo

r mitigatin g factors . Se e Exhibi t

A , FA A Order

2150.3B , Chapte r

7 , Paragrap h 5(b)(3 ) a

t pag e 7-9 . In th e instant case , th e Complainan t

i s seekin g a$15,00 0 civi l penalty i n accordanc e wit h th e establishe dsanctio n policy .05/05/201 0 1G:2 5 FA X 202493514 2 FA A•> •DM S 12005/03 1



### 6 . WHEREFORE , Complainan t respectfully request s tha t th e Motio n for

Decisio n on th e Pleading s b e grante dan

dResponden t

b e assesse dacivi l penalty i n th e amount o f $15,000 . h i the alternative . Complainant respectfull y request s th e Motio n fo r Hearin g o

n Sanctio n Onl

y b e granted . Submitte dthi s 30'* " day o f

Apri l 2010 . RA^W N RIC H CJEORG E

### 7 ^ Attorney Office o f the Regiona

l Counse l05/05/201 0 1G:2 5 FAX 202493514 2 FA A - DMS @100G/03 1



### CERTIFICAT E O FSERVIC E I hereb y certif

y that acop y o f

th e foregoin g Motio n fo r Decisio n o n th e Pleadings , or i n th e Alternativ e Motio n fo

r Hearin g o n Sanctio n Only wa s maile dby , facsimil e an dFederal Expres s to : lli c Honorabl e Isaac D . Benki n DOT , Administrativ e La

w Judg e Office o f Hearings , M-2 0 120 0 New Jerse y Avenue , S E Eas t Buildin g Groun dFloo r Room£12-32 0 Washington , D C 2059 0 (FAX ) (202 ) 366-753 6 an delectroni c mail , facsimil e an dFederal Expres s Stephen .1 . Kolski , Esq . Executiv e Vic e Presiden t

Corporate Affair s AirTra n Airways , Inc . 995 5 AirTra

n Blvd . Orlando , F

L 3282 7 (FAX ) (407 ) 318-590 1 an dth e origina

l an don e cop y vi aFederal Expres s to Hearin g Docket

Cler k FAA , AGC-430 , Suite 2W100 0 Wilbu r Wrigh t Buildin g 80 0 Independenc e Avenue , S W Washington , D C 2059 1 

# di^^^M^ ^ AP R 3 0 2^" ^ Date d05/05/201 0 1G:2 5 FA X 202493514 2 FA A + DMS 0007/03 1

U.S . DEPARTMEN T O P TRANSPORTATIO N

OFFIC E O F HEARING S FEDERA L AVIATIO N ADMINISTRATIO N

Federa l Aviatio n Administratio n Complainan t

vs . AirTra n Airways , Inc . Responden t FA A Docke t No . CP10SO000 2 Judg e Isaa c 0 . Benki n

ANSWE R O F RESPONDEN T AIRTRA N AIRWAYS . IN C Introductio n O n Febnjar y24 , 2010 , Complainan t filed it s COMPLAIN T i n th e abov e style d matter . O n Marc h 18 . 2010 , Responden t file d it s MOTIO N T O DISMIS S COMPLAINT . O n Marc h 26 . 201 0 Complainan t file d it s AMENDMEN T T O COMPLAIN T amendin g it s COMLAIN T b yallegin g tha t Responden t wa s subjec t t o a maximu m civi l penalt yo f $25,00 0 Instea d o f th e $11,10 0 specifie d i n it s February24,201 0 COMPLAINT . O n Apri l 6 , 2010 , th e Cour t issue d it s ORDE R DENYIN G RESPONDENT S MOTIO N T O DISMIS S COMPLAINT . Responden t no w furnishe s it s ANSWE R i n th e abov e style d matter . Respondent' s Specifi c Response s t o Complainant' s Allegation s Containe d i n Complainant' s Complaint . Paragrap h # 1 : Responden t admit s thi s allegation . Paragrap h # 2 : Responden t admit s thi s allegation . Paragrap h # 3 : Responden t admit s thi s allegation . 

### EXHIBIT . 

# 105/05/201 0 1G:2 5 FA X 202493514 2 FA A + DM S 0006/03 1

- 1^003/00 4

Paragrap h # 4 : Responden t admit s thi s allegation . Paragrap h # 5 : Responden t admit s thi s allegation . Paragrap h # 6 : Responden t admit s thi s allegation . Paragrap h U 7 : Responden t admit s thi s allegation . Paragrap h # 8 : Responden t admit s thi s allegation . Paragrap h # 9 (a s amended) : Responden t admit s thi s allegation . Paragrap h # 10 : Responden t denie s thi s allegation . Paragrap h #11 : Responden t denie s thi s allegation . Respondent' s Affirmativ e Defens e Firs t AfTinnativ e Defense : Th e propose d civi l penalt yi s excessiv e an d unwarranted .

Respectfull ysubmitte d thi s ^ dd yo f April . 201 0 

## j6%yof i 

# O^/nOOmr; ^ Stephe n J . Kolsk i Ftofid a Ba rNumbe r0103408 2 Executiv e Vic e Presiden t Corporat e Affair s AirTra n Airways . Inc . 995 5 AirTra n Blvd . Orlando , F L 3282 7 Phon e (407 ) 315-510 8 FAX : (4078 ) 318-590 1 Emial : Steve.Kolski(a)AirTran.co m05/05/201 0 1G:2 5 FA X 202493514 2 FA A ^ DM S 0009/03 1



### FA A Docke t No . CP10SO000

2 (Civi J Penalt y Action )

SERVIC E LIS T ORIGINA L & ON E COP Y Federa l Aviatio o Administratio n 80 0 IhdependeQc

e Ave , S.W . WashiDgton , DC 20S9 I Attention : Hearing Docket Cieik , AGC-43 0 Wilbu r Wrigh i Buildin g - Suit

e 2W1O0 0 (VI A U . S , MAJL ) 

## ON E COPY Rashawn Rich George , Complainant' s Counse l Office o f the Regiona

l Counsel , ASO- 7 Southen i Region Federa l Aviation Administratio n P.O . Box 2063 6 Atlanta , G A 30320 TEL : 404-305-5200 FAX : 404-305-522 3 (VIAFACSINaLE ) Th e HonoTsbl

e Isaa c D . Benldn , Administrative La w Judg e Office o f Hearings , M-20 U.S . Departmen

t o f Transportatio n 120 0 New Jose y Avenue , S.E . Eas t Building Groun

dFloor , RoomE12-320 Washington , D C 2059 0 TEL : Attorne

y 202-366-213 9 Lega l Assistant 202-366-213 2 FAX : 202-366-753 6 (VIA FACSIMILE )05/05/201 0 1G:2 5 FA X 202493514 2 FA A * DMS I2|010/03 1 10/01/0 7 2150.3 8 Appendi x 0 Tabl e of Sanction s Ai l Enforcemen t Program s Excep t Hazardou s Material s Par t One - Abbreviation s an d Definiijuni i 1 . Applicability . Thi s tabi c ofsanction s applie s t o violation s dial occurre don oratie r Octobe r i , 2007 . For

violation s occunin g befor e Octobe r I , 2007 . FAA enforccmci u personne l appl y th e .sanction guidanc e principle s i n FA A Orde r 2150..3 A usin g u

p t o th e sUttLitoi-

y maximu msanctio n amoun t i n effect a t the tim e o f

th e violalton . 2 , Abbreviations . Th

e followin g abbreviation s ai e ti^c di n ihi s Tabl e /lP/i " Hican s approve dproducno n ui,spect>oi i s^isu^ m A/y y mean s aiiv/orihincs s AW^ C mean s airwonhine.s s certificat e ^7 5 mean s Under

Secretary fo

r Borde r andTrHnipon<Ttio

n Security i A mean s iivspcciio n aulhorizaiio n L C mean s law enforceiricnt P C mean s productio n cciiifleai c ST C mean s supplementa l typ e certificat e T C mean s typ e cenificai c TF Rmean s Temporar y Fligh t Restrictio n TS A mean s Transportatio n Security Administratio n 3

- Definitions : a . A continuin g violatio n arise s whe n a.specific violatio n occur s ove r mor e than on e day o r ove r mor e tha n on e flight . I

t als o ma y involv e aviolatio n that i s ongoing , fo r

example , a

n ongoin g refusa

l t o provid e require drecord s (o th e FA A fo r in;spcction . Punitiv e sanction s are appropriat e fo

r continuin g violation s tha t ar e no t currentl y ongoing . Sanctio n guidanc e fo r thes e violation s i s set

fort h i n paragraph s 6 an d7 {multipl e act s o r multipl e violaiiom ) o f chapte r 7 , A combinatio n o f

punitiv e an dremedia l sanction s i s appropriat e whe n continuin g violation s ar c ongoing . b . Violatio n committe db y asmal l busines s concern . Sectio n 50 3 o f Vision 100—Centur

y o f Aviatio n Reauthorizatio n Ac t (CARA ) amende d4 9 U.S.C . § 46301 t o chang e th e civi l penalt y amount s th e FA A may see k fo r violation s that

occu r o n o r after Decembe r

12 , 2003 ; th e law set s different

limit s o n th e civi l penaltie s th e FAA ma y see k for violation s b y smal l busines s concerns , a s oppose dt o violation s b y othe r entities . Vision 10 0 C/VR A give s smal l busines s concer n th e sam e meanin g a s i n th e Smal l Busines s Ac t (1 5 U.S.C . § 632) . Sectio n 63 2 define s smal l busines s concer n a s a n enterpris e "whic h i s independentl y owne dand operate dan dwhic h i s no t dominan t

in it s fieldo f

operation. " Th e Smal l Busines s Administratio n regulation s implemen t th e Smal l Busines s Ac t

an ddefin e busines s concer n a s B- 1 FYHIRI T ^ ^05/05/201 0 1G:2 5 FA X 202493514 2 FA A •> • DM S 1011/03 1 10/01/0 7 2150.3 8

" abusines s entit y organize dfor profit , wit

h aplac e o f

busines s locate din th e U.S. , an dwhic h operate s primaril y withi n th e U.S . or whic h make s asignifican t contributio n t o the U.S . economy throug h paymen t o f taxe s or us e o f American products , material s o r labor. " 1 3 CF.R , § 121,105 , Th e SB A regulation s furthe r defin e smal l busines s concer n i n tables , describin g eac h kin do f

entit y b y it s economi c activity o r industry , an dlistin g the limi t fo r smal l by annua l receipt s or , mor e commonly , numbe r o f employees . ( fh e siz e limit s generall y arc establishe dunde r

th e Nort h America n Industr

y Classificatio n Syste m(NAICS)- ) ho r th e complet e list , se e 1 3 C.F.R . § 121.20 1 o r the SDA' s websit e a

t www.sba.gov . Thus , i f

aperso n meet s th e definitio n o f

busines s concer n an dha s annua l receipt s o r th e numbe r

o f employee s withi n th e applicabl e SB A limit , i t i s asmal l busines s concern , andthe FAA wil l determin e ih c civi l penalty usin g th e applicabl e range . Limit s fo r commo n aviatio n entitie s follo w (i n number s o f

employees , unles s otherwis e noted) . Manufacturin g Aircraft

- 1,50

0 employee s Aircraf t engin e an dpar i • 1 ,OU

U employee s Othe r aircraf t par t an dequipmen t

- 1,00 0 employee s Ai r transportatio n Schedule dpassenger

- 1,50 0 employee s Schedule dfreight

- 1,50 0 employee s Nonschedule dpassenge r

- 1,50 0 employee s Nonschedule doffshor e marin e passenge r - S25. 5 millio n annua l receipt s Nonschedule dfreigh

t - 1,50 0 employee s Nonschedule doffshor e marin e freigh t - $25, 5 millio n annua l receipt s Othe r nonschedule d- $6. 5 millio n annua l receipt s Support activitie s - $6. 5 millio n annual receipt s Fligh t Trainin g - $23. 5 millio n annua l receipt s Airport operation s Airport operator , organize dfo

r profit

- $6. 5 millio n annua l receipt s Othe r operations , excludin g air traffi c contro l - $6. 5 millio n annua l receipt s Not e that th e followin g guidanc e use s larg e busines s concer n for som e civi l penalty ranges. Tha t i s no t astatutor y o r

regulator y termfor

purpose s o f

FAA enforcement . I

t include s eac h busines s concern that

exceed s th e maximu mlimi t fo r smal l busines s concern , a s wel l a s any othe r entit y that

doe s no t mee t th e definitio n o f

"smal l busines s concern. " c . Civi l Penalty Ranges . Fo r th e purpos e o f

thi s table , whe n civi l penalt y actio n i s recommende dan ddescribe da s Minimum , Moderate , o r Maximum , th e penalt y range s arc define di n subparagraph s (1 ) throug h (9 ) o f thi s paragraph . Not e that th e middl e o f

eac h recommende dsanctio n rang e woul db e fo r asingl e violatio n withou t aggravatin g o r

mitigatin g factors

B- 205/05/201 0 1G:2 G FA X 202493514 2 FA A * DMS @1012/03 1

10/01/0 7 2150.3 B (1 ) VIULAnO N COMMITTE D B Y U.S . AI RCARRIER S O RU.S . CQMMFRCIA L OPFRATOR . CLASSIFICATIO N O FAI RCARRIE RAN D OPERATO R (iROU P I - Each ai r

earne r operatin g unde r

par t 12 1 o r par t 135 , with a

n annua l operatin g revenu e o f

$100,000,00 0 O

r more . Operatin g revenu e i s determine db y referenc e to DOT' S "Ai r Carrie r Industr y Schedule dServic e Traffi c Statistic s Quarterly. " Se e lutp://ostDxwcb,dot,eov/aviatioii/index.html , andclic k o n ".Airlin e Financia l Review. " GROU P I

I • l-.acl i a n canie r o r commercia l operato r

operatin g unde r

pa n 12 1 wit

h a n annual opcr;ilin[ j revenu e n

f les s than $100,000,000 , or unde r pa n 13 5 wit

h a n annua l operatin g revenu e o f

ICJ S iha n $ 100,000,000 , if

the 13 5 operator

ha s 5 0 or mor e pilot s an d2 5 or

mor e aircraf t on ii s opcrHiion s specifications . Operatin g revenu e i s determine db y referenc e t o DOT' S "Ai r

Carrie r Industi y Schedule dServic e Traffi c Statistic s Quarterly. " GROU P M

l - Fac h air

carrie r o r commercia l operato r

operatin g unde r

pa d13 5 wit

h 6 t o 4 9 pilot s or 6 to 24 aircraft , GROU P I

V - r-ac h air carrie r o r commercia l operato r

operatin g unde r

part 13 5 wit h n o mor e than 5 pilot s an dno mor

e than 5 aircraf

t GROU P 1 - larg e busines s concern

Maximu m$18.750-$25,00 0 Moderate $10,000- $ 18,74 9 Minimu m$2,000-$9,99 9 GROU P I - smal l busines s concern (fo r violation s covere dunde r 4 9 U.S.C . § 46301(a)(5)(A)) :

Maximu m$8,250- $ 11,00 0 Moderate $4,400-$8,24 9 Minimu m$l,100-$4,39 9 GROU P I - smal l busines s concer n (fo r violation s covere dunde r 4 9 U.S. C § 46301(a)(1)(A ) o r (B ) bu l no i unde r

4 9 U.S.C . § 46301(a)(5)(A)) : Maximu m$850- $ 1,10 0 Moderat e $650-$84 9 Minimu m$50 0 $64 9 GROU P I I - larg e busines s concern : 

### B- 305/05/201 0 18:2 G FA X 202493514 2 FA A •> •DM S 121013/03 1 10/01/0 7 2150.3 8 11 . Al l individual s an dentities : Failur e t o Surrende r Certificate , Authorization , o r Othe r Approval . Fig . B-ll . 1 . L.S . AI RCARRIERS . U.S . COMMERCIA L OPERATORS , PAR T 125 OPERAIORS . AN D PAR T 12 9 OPERATORS . FiR . B-l-a . Maintenanc e Manua l (1 ) Failur e t o maintai n curren t manual (2 ) I'ailur e to provid e adeqiiiii e instruction s an dprocedure s i n manua l (.\) Faijur c to distribtif

e nianvia l l o appropriat e personne l (4 ) Releas e o t

aircraf t withou t require deqviipiiieiit Civi l Penalrj ' Minimu m Moderat e H

) Maximu m Mmimu mto Moderat e Moderat e l o Maximui n Fig . B-1-b . A/ W Directiv e (1 ) Failure t

o compl y Civi l Penalt v Moderat e t

o Maximu m I'ig . B-l-c , Operation s Spccincation. s (1 ) Excee dinspectio n o r overhau l lim

e limitatio n (2 ) Operatio n contrar y t

o op s spec s • technical noncomplianc e (3 ) Operatio n contrar y to op s spec s likel y poientia l o r actua l advers e effec t

o n saf e operatio n Civi l Penalt y Moderat e Minimu m Moderat e to Maximu m Certilicat e Actio n • " 1 U p t o 7-da y suspensio n

l.J p t o 7-da y suspensio n Certificat e Actio n Certilicat e Actio n Up t o 7-day suspensio n

Fig . B-I-d . Facilitie s an dEquipmen t (1 ) Failur e t o provid e adequatel y fo r prope r servicing , maintenance , repair , or

inspectio n o f

facilitie s andcquipmcn l Civi l Penalt y Maximu m Ccrtincat e Actio n Indefinit e Suspensio n unti l prope r servicing , maintenance , repai r an d inspectio n o f facilitie s an d equipment

i s provide dt o Revocatio n

D-1 205/05/201 0 1G:2 G FA X 202493514 2 FA A + DM S 12014/03 1 

### 10/01/0 7 2150.3 B Fig . B-l-e . MaiDtcnanc e an dInspectio n Or|;anizatio n (I ) Failur e t

o provid e o r

maintai n amaintenanc e an d inspectio n organizatio n Ci»i l Penalty ' Maximu m

Fig . B-l-f. Trainin g Progra m (1 ) lailur e t

o hav e (rainini ; proera m

(2 ) Failur e t

o maintai n trainin g progra m (.1 ) Failur e t

o trai n pefsoiuio l adequatel y Civi l Penall y Maximu m

Moderat e r

o MBximun

i Moderat e t

o Maximu m

Fig . B-l-h . Performanc e o f Mainteaaoc c (t ) Dy unauthorize dperso n (2 ) Failur e t o performo

r imprope r niainienane c Civi l Penalt y Maximu m Moderat e t

o Maximu m

Fig . B-I-j . Recor dJ an dReport s (1 ) Deliberat e violatio n (a ) Intentionall y fals e o r fraudulen t

entry , reproduction , o r

alteratio n i n recor do r report (b ) Othe r Civi l Penalt y Certificat e Actio n indel'init c Sij.^pcriiio n unti l ^ n appropriat e maintenanc e an d inspectio n orga n i.?:a l io n i s provide dr

o Revocatio n Certificat e Actio n Indefinil e Suspen.sio n unti l eompliaiie e ( 0 Revoi;ali<5 n Fig . B-l-g . Maintenanc e o r Aircraf t Papervfor k (1 ) Incomplet e o r

unsigne dreleas e (2 ) Failur e to revis e a/

c dat aaAcr

repai r Civi l I'enalt y Minimu mt

o Maximu m Moderat e t

o Maxitnu m Certificat e

Actio n

Certificat e Actio n Fig.B-I-i . SFAR3 6 (1 ) Failur e t o compl y secon doffens e Civi l Penalt y Maximu m Certificat e Actio n Ccrtincat e Actio n Revocatio n [ RO-da y Suspensio n to Revocatio n B-1 305/05/201 0 16:2 6 FA X 202493514 2 FA A •> •DM S @|015/03 1 

### 10/01/0 7 2150.3 B Fig . B-I-j . Record s & Report s cont . (2 ) Failur e t

o mak e accurat e mechanica l interruptio n summar y report (.1 ) Failur e t o make availabl e report ol'majo r aheraiio n o r repai r J 4 ) Failur e to mak e accurat e mechanica l reliabilit y rcpo n (.5 ) Failur e t o mak e reqtiire dentry maircraf t lo g (6 ) Failur e t

o make availabl e pilo t

record (7 ) Failur e to mak e availabl e loadmanifes t (8 ) Failur e t

o monito r andrecor denrout e radi o coitununicatio n Moderat e t o Maximu m Civi l Pcnalr y Moderate t o Maximu m Moderat e t o Maximu m

Moderat e t o Maximu m Minimu mt o Maximu m Moderate to Maximu m

Moderat e to Maximu m

Fif; . B-l-k . Dispatc h an dFligh t Releas e Rule s (1 ) An y violatio n o f

subpa n U o f

1 4 CF Rpar

t 12 1 Civi l Penalt y

Moderat e to Maximu m Fig . B-1-I . Operatio n o f unairwortli y aircraf

t (I ) Technica l non-conformity t o TC ; n o likel y effec t o n saf e operatio n (2 ) Non-conformity T

o T C tha t may have , o r

ha."i. advers e effec t o n saf e operatio n (3 ) Releas e o f

aircraf t withou t require dequipmen t Civi l Penalt y Minimu m Moderat e t

o Maximu m Moderat e t o Maximu m Certificat e Actirtn Indefinit e Suspen.sio n l o Revocatio n

Ind e finite Su.spensio n l o Revocatio n liidefinii e Suiipcnsio n t o Revocatio n Certificat e Actio n Certificat e Actio n

U p t o 7-da

y suspensio n Fig . B-l-m . Provision s specifi c t o passenger-carryin g 1(1 ) Boarding , o r

servin g alcoholi c beverag e to , aperso n wh o appear s t o b e intoxicate d (2 ) Failur e to brie f

passenger s (3 ) Failur e t o ensur e sea t an dbel l for

eac h passenge r (4 ) Operatio n w/ o operabl e publi c addres s sy.slc m (5 ) Failur e t o stor e bagRaft e properl y Civi l Penalt y Maximu m Moderat e t o Maximu m Maximu m Maximu m Moderat e Certificat e Actio n

1 Fig . B>I-n . Provision s specifi c t o (ligh t dec k cre w (1 ) Us e o f

crcwmembe r

wit h expire dmedical certificat e (2 ) Failur e t o mak e flight dec k sea t availabl e to authorize d enrout e inspector Civi l Penalt y Minimu mt o Moderat e Maximu m Certificat e Actio n

B-1 405/05/201 0 16:2 G FA X 202493514 2 FA A •> •DM S 0016/03 1 

### 10/01/0 7 2150.3 8 Fig . B-l-n . Provi$ion s specifi c t o Migh t dec k cre w cont . (3 ) LLs e o f unqualifie dcrewmembe r (4 ) Fligh t

andDut y Tim e violatio n Fig . B-I-o . Othe r

provision s (1 ) Improperl y Returnin g Aircraf t t( i servic e (2 ) Illega l carriag e o f

controlle dsubstanc e wit h knowledg e o f carrier , tha

t is , knowledg e of

, o r iiivolvcmcn i in , conduc t by top manat;emen t

personne l (J ) Us e ofunqLialiCic dpersoiuie l othe r tha n flight dec k crewmembe r Fig . B-1-p . Operation s a t airport. s requirin g slot s (1 ) Operatio n wiihou i areservatio n fro mA T C (2 ) Operatio n with arcscr^-ation , hu t a t th e wron g tim e (3 ) Us e o f

intcinaiiona l slo t

fo r domesti c flight (4 ) Us e o f

aircraf t no t meetin g criteri ai n 1 4 CF.R , § 9-T.123(cK2 ) i n commute r

slo t Civi l Penalt y Maximu m Moderat e Civi l Penalt y Maxitnu m

Maximu m Civi l Penalt y Moderat e Moderat e Moderat e Moderat e Certificat e Actio n

Certificat e Actio n Revocatio n

Certificat e Actio n

2 . PERSONNE L O FAl RCARRIERS . COMMERCIA L OPERATORS , AND PAR T 125 OPERATORS . Fig . B-2-a . Maintenance , includin g inspectio n (1 ) Performin g maintenanc e withou t certincate , rating , o r authorizatio n (2 ) Performin g maintenanc e tha t exceed s limitation s (3 ) Failur e t o performmainienane e properl y Civi l Penalt y Maximu m Certificat e Actio n 30-t o 45-da y Su,spensio n 30

- to 120

- da y Suspensio n | 1 Fig . B-2-b . Inspectio n 1(1) ' Failur e t o mak e require dinspectio n (2 ) Makin g imprope r

inspectio n (3 ) Imprope r

relea.s e o f

aircraf t t o servic e (4 ) Releasin g aircraf

t fo r servic e withou t

require dequipment Civi l Penalt y

- Certificat e

Actio n 30-to60-.da y Suspensio n 30

- t o 120

- da y Suspeiisi(.) n 3 0 t o 60-day Suspensio n 3 0 t o 60-da y Suspen.sio n |

B-1 505/05/201 0 1G:2 G FAX 202493514 2 FA A + DM S g|017/03 1 

# AIRLINE QUARTERLY FINANCIAL REVIEW FOURT H QUARTE

R200 9 MAJOR S 

# P

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•' ! - N I \I ; ; 1

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## DEPARTMEN T O FTRANSPORTATIO N OFFIC E O FAVIATIO N ANALYSI S COMPETITIO N AN D POLIC Y ANALYSI S DIVISIO N

EXHIBt L 

# 305/05/201 0 1G:2 G FA X 202493514 2 FA A + DMS @|019/03 1

TABL E O P COMTBMT S De.tiC-RIPTIO

NPAG E introduocjo n 3 Tota l Syscer a Passenge r & All-Carg o Major s - i Char e 1 Operatin g an d Ne t Pro£i t (Loss ) Fourt h Quarte r 200 9 i Char t 2 Operatin g an d Ne t Profi t (Lose )

1 2 Moiitho Ende d Fourt h Quarte r 200 9 7 Char e 3 Operacin g Profi t (Loss ) B yQuarte r 9 Char t 4 Ne t Incom e (Loss ) B yQuarte r 8 Char t 5 Operatin g Profi t (Loss ) B y12-Mont h Endin g Period s 9 Char t 6 Ne t Incom e (Loss ) B y12-Mont h Endin g Period a 9 Char t 7 Operatin g Revenu e Pe r Revenu e Ton-Mil e

Percen t Chang e Fro mSam e Per i r> d AYea r Earlie r 1 0 Char t 8 To n ijoa d Facto r Percentag e Poin t Chang e Fro mYea r Earlier.. . 1 0 Char t 9 Operatin g Expens e Pe r Revenu e To n Mile ,

Percen t Chuiiy

c Fro m Sam e Perio d AIfea r Earlie r 1 1 Char t 1 0 Operatin g Expens e Pe r Availabl e Ton-Mile ,

Percen t Chang e Pro m Sam e Perio d AYta r Earlie r H Tota l Paasenge r Major s 1 2 Char t 1 1 Passenge r Revenue s Pe r Revenu e Passenger-Mile ,

Percen t Chang e Fro mSam e Perio d AYea r Earlie r 1 5 Char t 1 2 Revenu e Passenger-Miles ,

Percen t Chang e Pro mSam e Perio d AYea r Earlie r I S Char t 1 3 Availabl e Seat-Miles ,

Percen t chang e Kro mijam e Perio d AYea r Earlie r 1 6 ChaiT . I' I Passenge r Loa d Factor , Percentag e

Poin t Chang e Fro mSam e Perio d AYea r Earlie r 1 6 Char t 1 5 Passenge r (RPM ) Yiel d T / chur L 1 6 PaG^enge r Loa d vacto r 1 7 AirTran , In c 1 6 Alask a Airlines , In c 1 9 America n Airlinua , In c 2 0 America n Eagle , In c 2 1 Atlanti c Southeas t Airline s 2 2 Coiiuii , Inc . 2 3 Continenta l Ai r Lines , In c 2 4 Delt a Ai r Lines , in c 2 5 ExpressJc t Airline s 2 6 Frontie r Airline s 2 7 JetBlu e Airway s 2 8 Meo a Airlines , in c 2 9 Northwes t Airlines , In c 3 0 Slcywes t Airline s C o 3 1 .Southwes t Airline s C o 3 2 U S Airways , in c 3 3 Unite d Ai r Lines , In c 3 4 Tota l All-Carg o Major s 3 5 Federa l Expres s Cor p 3 3 Unite d Parce l Servic e 3 9 Compari:jO n o f Individua l Majo r Operatin g Profi t (Loss ) 4 0 Compariso n o f individua l Majo r Ne t incom e (Lo.?.? ) ^ i Compariso n o t Individua l Majo r Schedule d Passenge r Loa d Facto r 4 2 Compariso n o f Individua l Majo r Schedule d Passenge r Yiel d 4 3 Compariso n o f individua l Majo r Operatin g Profi t Margi n 4 4 Compariso n o t Individua l Majo r Deb t T o Investmen t Rati o an d Tota l Deb t . . 4 5 Footnote s 4 6 Explana c io n o f Lin e item s 4 705/05/201 0 16:2 6 FA X 202493514 2 FA A * DM S I2|019/03 1

INTRODUCTIO N Thi s repor

t contain s staf f comments , table s an d chart s o n th e financia l conditio n o f th e U-S , majo raiflines . Th e dat a are presente d o n bot h a carrie rgrou p an d a n individua l carrie rbasis , bu t th e primar y focu s I S o n th e individua l majo rcarrie ran d it s performance . Dat a ar e presente d fo rth e mos t recen t quarterl yperio d an d th e comparabl e quarte ra yea rearlie ran d als o o n a 12-rT\ont h ende d basi s a s at th e en d of th e fiv e most recen t quarters , I n addition , dat a o n charge s ove rcomparabl e period s 12 - month s earlie rare presented - A graphi c presentatio n o f comparativ e trends , o n a carrie rgrou p basis , i s mad e fo rsevera l uni t an d overal l financia l indicators . I n th e cas e o f merge d carriers , dat a fo rth e carriers involve d have bee n comtine d an d presente d unde rth e nam e o f th e survivin g carrie rs o tha i meaningfu l comparison s coui d b e made . Ai l dat a presente d i n thi s financia l an d traffi c revie w are derive d fro m dat a reporte d t o th e U,S . Departmen t o

f Transportatio n o n For m 4 1 Schedule s byLarg e Certificate d Ai rCarriers , Fo r compariso n purposes , thi s analysi s i s limite d t o th e majo rschedule d passenge ran d all-carg o ai r carriers only . Alask a Airlines , wit h revenue s exceedin g $ 1 billio n I n calenda ryea r1995 , becam e a majo rairlin e effectiv e Januar y1,1996 , an d i s now

/ Include d i n thi s review . Al l financia l an d traffi c result s have bee n retroactivel yrestate d t o includ e th e operation s o f Alaska . Certai n dai a i n thi s revievi / i s classifie d i n two broa d categories : namel y"domestic " an d 'Internatlonar , "Domestic " encompasse s operation s withi n an d betwee n th e 5 0 state s o f th e Unite d States , th e Distric t o f Columbia , th e Commonweali h of Puert o Rico , an d th e U.S . Virgi n Islands . I t als o encompasse s Canadia n transborde roperation s an d fo rcertai n carriers Mexica n transborde roperations . Al l othe r operation s ar e considere d "international" , whic h i s separate d int o Atlantic , Latin , an d Pacific , Suggestion s fro m user

s fo rth e improvin g eithe rth e scope , presentation , o rutilit yo f thi s revie w ar e invited . I t wil l als o b e appreciate d i f suggestions , discrepancies , an d errors I n th e dat a ar e calle d t o th e attentio n o

f th e Economi c & Financia l Division , Offic e of Aviatio n Analysis , Offic e of th e Secretary , U.S . Departmen t o f Transportation , Washington , 0,C . 20590 .05/05/201 0 1G:2 7 FA X 202493514 2 FA A •> •DM S 13020/03 1



### QUARTERL Y FINANCIA L & TRAFn C REVIE W

SYSTE M OPERATION S AirTra n Airway s

ITEM S FINANCIA L RESULTS : (SMHHons ) Operatin g Revenue s Operatin g Expense s Operatin g Profi t (Loss ) N« t Ineom e (Loss ) TRAFFIC : (Bllions l RPM s • Schadulfl d Svc . ASM S - Schedule d Svc . Overal l RTM s (Al l Svc. ) Overal l ATM s (Al l Svc. ) YIEL D & UNI T COS T & PROFITS : (Cents ) Operatin g Revenu e pe rRT M Operatin g Expens e pe rRT M Operatin g Prrjfi t (Loss ) pa rRTIt l Operatin g txpans e pe rAT M Passenge rRevenu e pa rRP M FINANCIA L RATIOS : QUARTE R ENDE D 2009/1 2 2008/1 2 596. 4 572, 3 26. 1 17. 1 4. 5 5, 8 0. 5 0. 7 132. 7 127, 0 5. 8 B5. 3 11.8 6 Operatin g Revenue s t o Tota l Investmen t iimui i Interes t Earne d Curren t Asset s t o Curren t Liabilitie s N o o f Day s Cas h Coverag e o f Cas h Exp . FINANCIA L PERCENTAGES. - Oparaiin g Profi t (Loss ) t o Operatin g Revenu i Ne t Incom e t o Stockholder s Equit y Corporat e Retur n o n Invesimen t Deb t t o I'uLii i Investmen t PASSENGE R LOA D FACTOR ; (Sch . Svc . % ) 589. 4 534. 6 54. 9 -118, 4 4. 2 5. 3 0. 4 0. 6 140. 7 127. 6 13. 1 86. 4 13.1 3 1 2 MONTH S ENDE D 2009/1 2 2009/0 9 2009/0 8 2009/0 3 2008M 2

4. 4

Actua l Breakeve n Etnplovman l & Prnductivltv : Employment , Tota l Weighw d Av g C Y Overal l K(tA' s pa rEmploye e (OOP ) 77. 7

73, 6 7.80 1 57, 6 9. 3 2,341. 4 2,164. 4 177, 0 134, 7 18. 5 23, 3 1. 9 2. 7 126. 5 116. 9 3. 6 80. 3 11.2 5 1,5 7 2.6 5 1.0 4 103, 2 7. 6 36.8 5 14. 5 /0. 7 78, 1 69. 5 7,38 7 56. 7 79. 5

72. 1 7,89 8 234. 4 2,332. 4

2,126. 7 205. 8 -0. 6 18. 2 22, 8 1, 8 2. 8 126. 2 116. 9 1 1 ao. 5 11.5 3 1.6 1 1.0 5 0,3 2 81. 4 8, 8 -0.2 3 5. 4 72, 8 79. 6 71. 0 7,79 5 233. 4 2.408. 3

2.285. 7 122. 6 -116, 3 18. 2 22. 9 1. 8 2, 7 132. 1 125. 3 6. 7 86. 2 12,0 6 1.6 1 0.0 6 0.0 3 74. 6 6. 1 -32.2 1 0. 2 72. 1 79. 6 74 7 7.76 5 234.9 | 2,498. 0

2,467. 1 10, 9 -210. 3 18, 5 23. 3 1. 9 2. 7 134. 9 134. 3 0. 6 92. 0 12.5 3 1,6 5 -1.7 7 0.8 5 70, 9 0. 4 -56.9 7 -8, 9 77. 8 79. 2 78, 7 7,81 2 237, 0 2,552. 5

2,624, 5 -72. 0 -273. 8 18. 7 23. 8 1. 9 2. 8 135. 9 139. 7 •3. 8 95. 3 12.7 8 1.6 7 -3.1 3 0.8 2 59, 6 •2. 8 -69.0 6 -13. 3 82. 0 78. 9 81 5 7,90 6 237. 7

2 6 2 7 2 8 2 9 3 0 3 1 3 2 3 3 Operatin g Pavenue s (% ) Operatin g Expense s (% ) Operatin g Profi t (Loss ) (i n Million s S ) Ne t Incom e (Loss)(i n trillion s $ ) RPM s (Sch . Svc. ) ("/. ) ASM S (Sch . Svc ) (% ) Operatin g Revcnua s pe rRT M (•/. ) Operatin g Expens e pe rRT M (% ) Passunge rRevenu e pe rRP M (Sch . Svc.)( % CHANG E OVE R COMPARABL E PERIO D 1 2 MONTH S EARLtE R | 1. 5 7. 1 -28. 8 135 5 7. 6 8. 4 -5, 7 -0. 5 -9. 7 1. 0

-6. 0 40. 0 -116. 2 -2. 9 •6. 7 3, 6 .3. 4 2. 2 -8. 3

•17. 5 249. 0 408, 5 •1. 4 •2. 1 -6. 9 -16. 3 -12.0 ) -a. 4

-20. 0 317, 7 1S6. 8 -3. 8 -5. 5 -4, 8 -16. 9 -9, 3 •3. 0

-8, 9 150. 0 -78. 4 •1. 5 •4. 6 -1. 5 -7. 5 -5. 2 4. 0

7, 5 '77. 7 -224. 9 3. 0 0. 4 1. 1 4. 5 -1. 5 10. 6

20, 8 •208. 8 -325. 4 8. 8 4. 7 1, 9 11. 4 0. 4 1 805/05/201 0 1G:2 7 FA X 202493514 2 FA A •> • DM S @1021/03 1 10/01/0 7 2150.3 B Chapte r7 . Sanctio n Guidanc e Policie s 1

- Purpose . Thi s chapte r provide s ih e FAA' s policie s fo r dcicrminin g an appropriat e sanctio n onc e FA A enforcemen t

pcrsonnii l decid e tha

t legal enfoiccmen i actio n i s appropriate . Thi s chapte r contain s th e getieral polic y th e FA A intend s t

o appl y i n selectin g th e type s o f

banciion."; , range s o f sanction s withi n tho.s e types , andspecifi c sanctio n amouni.' ; t o impos e i

n legal enforcemen t

action s fo r typica l violation s o f

th e FAA' s statut e an dregulation s Thi s guidanc e cover s th e piiramcter s bot h fo r selectin g sanctions andfo r modifyin g sanction s durin g th e informal procodtircs . Th e guidanc e i

n thi s chapte r

i s applie di

n adjudication s under

4 9 U. S C . § § 44106 , 44709 , 44710 , 44726 , 44924 , 46 1 I 1 , 46301 , arid70115 . Hazardou s material." ; sanctio n guidanc e andpolicie s tir e addresse din Appendi x C . 2 . Genera l Guidelines . a . Certificat e Suspensio n Actio n an dCivi l P«nal(Y Action : Sanction s fo r Punitiv e an d Deterren t

Purposes . (1 ) General . I

f acertificat e holde r

improperl y exercise s th e privilege s o f acertificate , a natura l conseciuenc c o f

tha i ac t i s t o los e th e privilege s fo r aperio do f

tim e commcnsurai c wit

h th e violation . Balance dagains t thi s principle , however , the FA A consider s the advers e impac t tha t acertificat e suspensio n coul dhav e o n th e public . Thus , th e agenc y generall y suspend s th e certificate s o f

individua l certificat e holder s fo r violations . However , the F A A tisuali y take s civi l pcrialty actio n agains t

ai r carrier s an dairport s becaus e suc h action s d o no t disrup t service , whic h may adversel y affec t

th e public . Nevertheless , whe n th e FA A determine s tha t safet y consideration s warran t

it , th e agenc y wil l suspen dth e cenificat c o f an y typ e o f

certificat e holder . I n n o cas e wil l th e FAA tak e civi l penalt y actio n alon e whe n remedia l legal actio n i s necessary o r appropriate . (2 ) Us e o f

bot h punitiv e certificat e actio n an dcivj l penalty actio n for th e same violations . Th e FAA generall y doe s no t tak e civi l penalty actio n an dpunitiv e certificat e actio n (tha t is , certificat e suspensio n for afixe dperio do f

lime ) agains t

acertificat e holde r

fo r th e sam e conduct , [ f

unusua l circumstance s warrxin t deviatio n fromthi s practice , legal counse l consul t with th e Assistan t

Chie f Counse l for

Enforcemen t

(AGC-300 ) before initiatin g th e actions . (3 ) Chang e in typ e o f

propose dsanction . Th e initial enforcemen t actio n reflect s th e agency' s bes t

assessmen t

o f th e appropriat e sanctio n fo r th e violation s alleged . After initiatin g th e action , legal counse l ordinaril y doe s no t chang e th e typ e o f

sanctio n unles s additiona l fact s o r circumstance s ar e presente dt o th e FA A that warran t achange . I f

tli e actio n wa s coordinate d unde r chapte r 6 , paragrap h 3 , wit

h AGC-30 0 befor e initiation , the n legal counse l coordinate s any chang e i n th e typ e o f

sanctio n with AGC-30 0 befor e makin g the change . b . Lega l Sanction s fo r

Remedia l Purposes . (1 ) Indefinit e certificat e suspensio n pendin g complianc e o r demonstratio n o f qualification . Suspensio n actio n i s appropriat e wher e there i s anee dtemporaril y t o 7- 1 

## EXHIBI T05/05/201 0 1G:2 7 FA X 202493514 2 FA A + DMS 12)022/03 1 10/01/0 7 2150,3 B suspen dth e privilege s o f

th e certificat e o r

ratin g pendin g demonstratio n o f qualificatio n o r complianc e wit

h statutory o r

regulatory requirements . FAA generall y use s remedia l suspensio n whe n a n individua l doe s not

voluntaril y surrende r

hi s o r her certificat e pendin g reexamination . 5«'chapte r

5 (2 ) Certificat e revocatio n - general . Th e FAA revoke s acertificate whe n acertificat e holde r lack s th e qualification s t o hol dth e certificate , Th e certificat e holder' s continue dexercis e o f the privilege s o f

lli e certificat e i

n suc h circumstance s woul db e contrary t o safel y i n ai r commerc e o r

ai r transportatio n andth e publi c interest . Revocatio n i s appropriat e wheneve r a certificat e holder' s conduc t demonstrate s alack

o f th e technical proficienc y o r alack o f th e degre e o f care , judgment , or

responsibility , require do f ih c holde r

o f suc h acertificate . Order s o f revocatio n arc issue don a n emergenc y basi s whe n th e certificat e holde r lack s qualificatio n an di s reasonabl y abl e a s apractical matte r to exercis e the privilege s o f the certificate . Lega

l counse l doc s no t alleg e alack

o f qualification s l o avoi ddismissa l o f charge s unde r

4 9 C,F,R . § 821.33 , th e NTSB' s stal e complain t rule . (3 ) Ccrtificai e revocatio n - individuals . Th e FA A generall y revoke s an individual' s certificat e o

r ratin g wheneve r

h e o r sh e demonstrate s alac k

o f vvjUingncs s or

ability t o compil

y consistentl y wit

h statutory o r

regulatory requirements . A lack o f willingnes s o r

ability to compl y may b e demonstrate db y suc h thing s a s repeate do r deliberat e violation s o r

by violation s iha

i involv e grossl y careles s or reckles s conduc t

Hvc n asingl e violatio n ma

y h e .sutficiemt o warran t aconclusio n a

n individual lack s qualification.s . Th e FAA ordinaril y revoke s al l certificate s o f a perso n wh o commit s avjohiio n involvin g intentiona l falsification . (4 ) Certificat e revocatio n - entities . Revocatio n i s normall y appropriat e whe n a certificate-holdin g entity deliberatel y o r flagrantl y violate s th e statut e o r regulation s o r

falsifie s records . Revocatio n als o i s generall y appropriat e whe n th e certificate holde r ha s committe dthe sam e o r similar violation s i

n th e recen t

pas t demonstratin g alac k

o f qualification , or

whe n th e certificat e holde r

n o longer

has , an ddoe s no t

obtai n in areasonabl e time , th e personne l o r equipmen t

t o conduc t

i k operatio n i

n full complianc e wit

h statutory an dregulator y requirements . (5 ) Mandatory certificat e revocation . Unde r 4 9 U.S.C . § 44710 , the FAA i s require dto revok e th e certificate s o f

an y airman wh o ha s bee n convicte do f violatin g certai n federal o r stat e statute s relatin g t o acontrolle dsubstanc e when a n airplan e wa s use di

n th e commissio n o f

th e offens e an dth e airman serve da s a n airman , or

wa s aboar dth e aircraft , i n connectio n wit

h commissio n o f

th e offens e o r

th e facilitatio n o f

th e commissio n o f

the offense . Eve n whe n ther e ha s bee n n o conviction , revocatio n i s require dwhe n a n airma n ha s knowingl y carrie dou t a n activit y punishabl e unde r thes e crimina l statutes . Th e Administrato r ma y waiv e th e revocatio n if alaw enforcemen t

office r request s th e waive r

an dth e Administrato r

decide s th e waive r

wil l facilitat e law enforcemen t purposes . Se e 4 9 U.S.C . § 44710(f) . Unde r 4 9 U.S-C . § 44106 , th e FA A als o mus t

revok e th e registratio n certificat e o f any airplan e use din th e commissio n o f suc h an offens e whe n th e us e wa s permitte db y the owne r o f th e aircraf

t wit h knowledg e tha

t it woul d b e use dfo r

suc h purpose . Unde r

4 9 U.S.C . § 44726 , th e FAA mus t revok e th e certificate s o f any certificat e holde r

o r a n individual wh o ha s acontrollin g o r ownershi p interes t

in th e holde r

wh o wa s convicte do f

aviolatio n o f

federal law relatin g t o th e installation , production , repair , o r sal e o f acounterfei t

o r fraudulently-represente daviatio n part o r material o r

knowingly , an dwith th e 7- 205/05/201 0 16:2 7 FA X 202493514 2 FA A + DM S 12023/03 1

10/01/0 7 2150.3 B inic mt o defraud , carrie dout o r facilitate da

n activity punishabl e under .suc h alaw . Th e Administrato r

may waiv e that

sanctio n t

o facilitate la

w enforcemen t

purpose s o r

amend , rathe r tha n revoke , acertificat e unde r certai n circumstances . Se d4 9 USC , § § 44726(f

) an d(g) , (6 ) Mandator y certificat e actio n fo r security concem.s . Unde r 4 9 U.S C § 46111 , th e Admiuistnuo r

i s require dt

o issu e a n orde r amending, modifying , suspending , or revokin g an y FAA-issoc dcertificat e i f the Administrato r

i s notifie db

y th e Unde r

Secretar y o f Border and Transporiatio n Security (BTS ) o f th e Departmen t

o f Homelan dSecurity (DHS ) tha t th e certificat e holde r

poses , o r i s suspecte do f

posing , aris k

o f ai r pirac y o r terroris mo r

athreat l o airlin e O r passenge r

safety . Under

4 9 US.C . § 44924 , th e Administrato r i s required , a

i th e reques t o f the Unde r

Secretary o f

BTS , t o suspen do r

revok e foreig n repai r

statio n certificate s in connectio n wit

h securit y audit.s . 3 . Applicabilit y an dExclusions . Th e .vanclio n guidanc e tabl e (table ) i n Appendi x B provide s type s o f .sanction s an dgenera l range s o f ."sanctio n amouiu s fo

r violation s of

4 9 U.S.C . subtii k

vi i and1 4 C.F.R . part s 1.-19 9 an d4 9 U.S. C Subtitl e IX , chapte r 70 1 andI4C.F, Rchapte r 11 1 Onc e [h e agenc y ha s determine dtha t legal enforcemen i actio n i s warrante dfo r aviolation , FA A enforcemen t

personne l us e th e tabl e an dparagrap h 4 o f thi s chapter , a s wel l a s any othe r sanctio n guidanc e i

n thi s order , t

o determin e apropose dsanction . Th e matter s describe di n chapte r 7 , subparagraph s 3a.-d . ar c som e type s o f

agenc y actio n tha

t fal l out.sid e ihc scop e o f paragrap h 3 an dth e table . a . Decision s t o Tak e Administrativ e Actio n (Warnin g Notice s o r Letter s of Correction) . A n administrativ e actio n doe s no t constitut e cidie r

afonnal adjudicatio n o f

th e inciden t o r afinding o f

violation . Fo r

tha t reason , FA

A investigativ e personne l d o no t propos e a sanctio n usin g th e table . b . Th e FAA' s Exercis e o f Prosecutoria l Discretion . Th e decisio n whethe r to prosecut e a particular cas e i s base do n arevie w o f th e evidenc e an drelevan t polic y an dlitigatio n considerations . Th e agenc y exercise s broa ddiscretio n in both th e initial decisio n to brin g alegal enforcemen t

action , an di

n an y late r

determinatio n t o compromis e o r settl e acas e base do n variou s considerations . Th e FAA' s discretio n in thes e area s i s absolut e andpresume dt o b e immun e fromreview . Heckle r v . Cheney , 47 0 U.S . 821 , 83 1 (1985) . c . Hazardou s Material s Violations . Action s involvin g violation s o f th e federa

l hazardou s material s transportatio n law , 4 9 U.S.C . chapte r 51 , o r th e Departmen t

o f Transportation' s Ha73rdou s Material s Regulations , 4 9 C.F.R . part s 10 6 throug h 185 . Enforcemen t sanctio n guidanc e fo r

thes e violation s i s foundi n Appendi x C . d . Violation s b y Member s o f th e U.S . Arme dForces

- Th e FAA i s require dt o forward report s o f thes e violation s t o th e Secretary o f th e departmen t

concerne dunde r

4 9 U.S.C . § 46101(b) , wheneve r

th e violato r

i s actin g i n th e performanc e o f official duties . Th e FAA , however , take s remedia l actio n in addition t o referrin g arepor t whe n th e violator , whethe r o r no t



### 7- 305/05/201 0 1G:2 7 FA X 202493514 2 FA A + DM S 0024/03 1

10/01/0 7 2150,3 B actin g i n th e pcrfonnanc c o f

officia l militar y duties , hold s an FAA certificate , andth e violator' s qualification s are a

t issue . Th e FAA ma

y tak e punitiv e actio n agains t amembe r

o f th e US , Arme dForce s fo

r aviolatio n committe dwhe n th e membe r i s not performin g officia

l duties , 4 . Mitigatin g o r

Aggravatin g Factor s an dElements , Th e factor s i n chapte r 7 , .subparagraph s 4,H, throug h m . hav e bee n develope dove r year s o f polic y makin g an dcas e adjudication . The y hav e prove n useful an dappropriat e fo r determinin g th e seriousnes s o f aviolatio n an dfo

r selectin g a

n appropriat e sanction . Flcmeni s fo r evaluatin g an dweighin g eac h factor arc als o described . Thes e factor s an delement s provid e aframewor k fo r determinin g sanctions fo r violation s specificall y liste di n th e tabl e a s wel l a s thos e no t specificall y listed . Al

l th e factor s an delements , however , ma y no t appl y to eac h violation . Onl y thos e factor s an delement s tha t are relevan t

t o aviolatio n ar e considere di n determinin g asanctio n fo r the violation . Thi s lis t

o f factor s an delement s i s no t intende dto b e exhaustive ; other factor s ma

y b e relevan t

a s well . a . Natur e o f

th e Violation . Thre e elcnioni s defin e th e natur e o f aviolation : first, whethe r th e violatio n wa s operationa l or non-operational ; second , whethe r th e violatio n involve dcareles s or reckles s conduct ; an dthird , whethe r the violatio n involve dan y special aggravatin g o r mitigatin g factors . (1 ) Individuals . Whe n a

n individual wh o hold s acertificat e improperl y exercise s (he privilege s o f

tha t certificate , th e natural consequenc e o f tha t ac t shoul db e los s of

privilege s fo

r a perio do f tim e commensurat e wit

h th e violation . Th e FAA , therefore , primaril y use s certificat e action s to enforc e operationa l regulation s agains t individual s wh o hol dcenifieatcs . Th e potentia l advers e impac t

tha t certificat e actio n ma

y hav e o n an individual' s livelihoo ddoe s not alte r thi s principle . Non-operationa l violation s ma y warran t adifferent

typ e o f sanction . (2 ) Entities . Th e FA A ordinaril y take s civi l penalty actio n agains t acertificate-holdin g entit y (fo r example , a

n ai r carrier ) whe n i

t determine s ther

e woul db e asubstantia l advers e impac t o n th e publi c interes t

fromdisrupte dservic e by tha t certificat e holde r

an dth e impac t

i s no t outweighe db y safety considerations . Eve n whe n asubstantia l advers e impac t woul doccur , whe n ther e i s anee dt o preven t continuin g violation s o r

othe r egregiou s conduc t

b y an y certificat e holder , whe n an y certificat e holde r lack s qualification , o r

ther e i s areasonabl e basi s to questio n th e qualification s o f any certificat e holder , th e FA A lake s remedia l action , for example , revocatio n o r

indefinite suspension , a s necessary . (3 ) Careles s o r

reckles s conduct . Violation s tha t involv e careles s o r

reckles s conduc t

i n violatio n o f

1 4 C.F.R . §911 3 ma

y warran t mor e sever e sanctions . Carelessnes s connote s conduc t that fall s belo w th e standar do f car e or prudenc e expecte do f

areasonabl e person , o r holde r o f th e relevan t

certificate , actin g unde r

th e sam e o

r similar circumstances . Recklessnes s connote s conduc t

that demonstrate s agross , o r

eve n callou s o r

fiagranl, disregar dfo

r safety . Aircraf t operation s tha

t d o no t otherwis e resul t

i n aviolatio n o f

aspecifi c regulatio n shoul db e evaluate di n light

o f thes e standard s to determin e whethe r the y constitut e careles s o r reckles s operation s i

n violatio n o f

1 4 C.F.R . § 9 1 13 . Whe n aperso n operate s a n aircraf t in violatio n o f

a specifi c regulatio n othe r

than 1 4 C.F.R . § 91.13 , however , that violatio n constitute s acarcles s or reckles s operatio n i

n an do f itsel f I n tlics c cases , th e misconduc t may als o resul t

i n aviolatio n o f 1 4 C.F.R . § 91.1 3 i f

i f actuall y o r

potentiall y endanger s th e live s o r propert y o f

others . 7 ^05/05/201 0 1G:2 8 FA X 202493514 2 FA A •> • DM S 13025/03 1

10/01/0 7 2150,3 6 Whe n calculatin g the amoun t o f sanctio n base do n thi s factor , adistinctio n generall y i s draw n betwee n instance s wher e 1 4 C.F.R . §91.1 3 i s a n independen t

violatio n an dthos e wher e i t i s residual t o anothe r

violation . Whe n a1 4 C.F.R . § 91.1 3 violatio n i s residual only , ahighe r sanctio n generall y i s no t

warrante dunles s th e conduc t i s als o reckles s b . VVhether

th e Violatio n wa s Inadverten t an dNo t Deliberate . I

f aviolatio n i.s deliberat e o r

no t inadvertent , asanctio n a t th e uppe r en do f th e rang e o r

exceedin g th e rang e fo

r tha i lyp c o f violatio n generall y i s appropriate . A deliberat e violatio n generall y warrant s a .sanction tha

t i s mor e sever e than on e tha t i s jus i not

inadvertent . (1 ) Not deliberate . Thi s clemen t mean s alac k

o f th e degre e o f

deliberatio n foun di

n inieiuiona l misconduct . Deliberat e o r intentiona l misconduc t

i s a n aggravatin g circumstanc e an d include s deliberat e conduc t tha t lead s t o aviolatio n a.s wel l a s eireumstanec s indicatin g inten t t o commi t y violation , (2 ) Inadvertence . An ac t i s inadverten t

whe n i t i s the resul t

o f bot h inattentio n an dlac k o f purposefu l choice . For

example , a

n inadverten t

ac t occur s when apilot

flics a t a n incorrec t akitud e becaus e h e o r

sh e misrea dth e aircraft' s instruments ; however , i t i s no t a n inadverten t

ac t whe n apilo t

flies a t a n incorrec t

altitud e a s aresul t

o f choosin g no t

l o consul t

the aircraft' s instrument s o r

choosin g not

t o us e othe r

availabl e meaii s t

o verif y altitude . Th e les t

t o b e ap[)lie d i s whethe r

th e conduct , no t

the factua

l or legal consequences , i s inadverten t an dunintended . Ferguso n v. Nationa l Transportatio n Safet y Board . 67

K F.2 d821 , 82X-82 9 (9t

h Ci r 1982) . c . Certificat e Holder' s Leve l o f Experience . (1 ) Leve l o f

experienc e refer s primaril y t o th e typ e o f certificat e an drating s hel d(fo r example , student , private , commercial , airlin e transport pilot , or certifie dfligh

t instructor) , an d th e numbe r

o f hour s flown, b y th e certificat e holder . Certificat e holder s wit h greate r level s o f experienc e may b e hel dt o ahighe r standard . Thus , for

example , commercia l pilot s may b e hel d t o ahighe r standar dthan privat e pilot s an dairlin e transport pilot s ma

y b e hel dto a

n eve n highe r standar dthan commercia l pilots . (2 ) In determinin g a

n appropriat e sanction , th e FA A ma y conside r

th e exten t

t o whic h th e certificat e holder' s actio n deviate dfiro mth e degre e o f

car e an ddiligenc e normall y expecte d o f aperso n with th e certificat e holder' s leve l o f experience . A significan t deviatio n fromth e degre e o f car e an ddiligenc e expecte do f th e holde r

o f tha t certificat e may warran t

amor e aggravate dsanction . d . Attitud e o f

th e Violator . (I ) A goo dcomplianc e attitud e i s th e norman ddoc s no t warran t areductio n i n sanction . A prio r violatio n history ma

y sugges t tha t aperso n ha s apoo r

complianc e disposition , whic h i s an aggravatin g factor . Furthermore , aperso n wh o commit s a n ac t o r omissio n contrary t o statutory o r

regulator y requirement s after receivin g notic e throug h aprio r adminisimtive actio n o r counselin g that

suc h conduc t

i s i n violatio n o f

thos e requirement s might wel l b e regarde da s havin g apoo r

complianc e disposition . I n evaluatin g complianc e disposition , th e FAA doe s no t 7- 505/05/201 0 16:2 8 FA X 202493514 2 FAA • * DM S g|02G/03 1 10/01/0 7 2150.3 B vie w a n allege dviolato r

a s havin g apoo r

attitud e becaus e th e allege dviolato r fail s l o respon dl o aletie r o f investigation , choose s t

o b e represente db y counsel , o r contest s th e violation . (2 ) I n assessin g the attitud e o f an allege dviolator , th e FA A may conside r

th e declaratio n o f a n emergenc y lo ai r

traffi c conu-ol . Whe

n a n emergenc y i s genuin e an dno t o f th e person' s ow n making , th e emergenc y i s exculpatory under 1 4 CF.R . § 91.3(b) . However , thi s situatio n i s distinc t fro mth e situatio n wher e adeclaratio n o f emergenc y i s no t

exculpatoi y bu

t i s afactor

tha t migh t b e appropriat e t o conside r i n determinin g sanction . I n emergenc y situations , th e FAA view s declarin g a

n emergenc y l o air

traffi c contro l a s asig n o f goo djudgmen t

andaconstructiv e attitude . Whe n a

n emergenc y i s o f

aperson' s ow n ntaking , that person' s declaratio n o f

a n emergenc y ma

y be considere dmitigatin g i n determinin g th

e sanctio n to b e impose dfo r an y violation s committed , i

n muc h th e sam e wa

y i t i s considere dmitigatin g if aperso n voluntaril y report s aviolation , c . Degre e o f

Hazard . (1 ) rh e degre e o f

ha,£ar dma y b e increase da s aresul t

o f th e interpla y o f

th e operationa l environmen t

(fo r example , weathe r

conditions , congeste dvs . sparsel y populate dareas ) andth e natur e o f the threat l o safet y (t o the lif

e o r property o f

another , includin g thos e i n th e aircraf

t bein g operated , to othe r

aircrafi , o r

t o person s o r

property on th e surface ) tha t th e misconduc t presents . Th e safet

y threat i s ba.se« l o n ihe reasonabl y foreseeabl e consequence s o f th e misconduct . Fo r

example , operatin g 50 0 fee t belo w th e minimu maltitud e pose s agreate r hazard than operatin g 10

0 fec i below . Similarly , i f

a n aircraf t operator fail s to compl y wit

h a n airworthines s directiv e b y operatin g 1 0 hour s pas t arequire dinspection , th e degre e o f hajjar di s probabl y no t

a s grea t a s whe n th e aircraf

t i s operate d100 hour s beyon dth e required . An dit i s no t mitigatin g whe n aviolatio n doc s no t resul t in actua l harm ; tha

t i s simpl y fortuitous . (2 ) Th e sanctio n range s reflec t th e degre e o f

dange r normall y inheren t

in a n averag e violatio n o f

aregulation , withou t

aggravatin g circumstances . A s discusse di n chapte r 7 , subparagrap h 5.b. , a

n increas e in th e degre e o f hazar dma

y for mth e basi s fo

r exceedin g th e sanctio n ranges . Fo

r example , th e rang e fo

r a n unauthorize dlo w flight doe s no t assum e extrem e departure s fromrequire daltitudes , fo r example , flying a

n airplan e ove r

acrowde dassembl y o f person s at

5 0 fee t f . Actio n Take n b y Employe r o r Othe r Authority . Thi s facto r

ordinaril y involve s th e followin g elements : whethe r th e allege dviolator' s employe r ha s take n disciplinar y actio n an d whedic r crimina l prosecutio n i s involved . (1 ) Employmen t

discipline . Wher e th e violatio n woul dnormall y cal l for acertai n typ e o f enforcemen t

action , th e FA A take s that actio n regardles s o f

any actio n take n b y th e violator' s employer . Generally , th e FA A doe s no t credi t a n employer' s disciplinar y actio n towar daperio d o f suspensio n th e FA A impose s agains t th e violator' s certificat e becaus e o f th e differen t purpose s o f

government-ordered , a s contraste dwit h employer-ordered , actions . (2 ) Crimina l prosecution . When arisin g ou t o f th e sam e conduct , local , state , o r federal jjrosccutio n doe s no t

preclud e th e FA

A firomtakin g appropriat e remedia l enforcemen t action ; no r 7- 605/05/201 0 1G:2 8 FA X 202493514 2 FA A •> • DM S 0027/03 1 10/01/0 7 2150.3 B doe s it preclud e ih e FA

A fromtakin g appropriat e punitiv e enforcemen t action . Fo r

case s wher e federal , state , o r

local authoritie s prosecut e criminally , th e FAA generall y doc s tak e remedia l enforcemen t

actio n i f iha t i s warrante ddespit e the crimina l prosecution . However , th e FA A doc s no t generall y take punitiv e lega l enforcemen t

actio n fo r th e .sam e conduct , unles s i

t believe s the crimina l sanclion s ar c no t sufficient t o provid e a

n adequat e deterren t

fo r future violation s b y the violato r ati dother s similarl y situated , o r whe n th e b^ A want s to establis h aviolatio n histor> ' record . I f th e FA A decide s to procee dwit h apunitiv e civi l enforcement actio n i n additio n t o the crimina l prosecution , i

t generall y consider s th e cnmina l penaltie s incurre din thos e proceeding s i n determinin g th e appropriat e amoun t o f sanctio n t o b e sough t

i n the FAA' s putativ e enforcemen t

action . g . Us e o f

aCertificate . Thi s facto r relate s t o th e natur e o r

kin do f activit y o r

operafio n involve da

t th e tim e th e violatio n wa s committed . Whethe r the certificate holde r

wa s engage di

n student , private , commercial , o r airlin e activity bear s on th e severity of the sanctio n Ai r

carrier s ar e hel dto th e highes t

standar dof

care Likewise , personne l engage di n ai r transportatio n ar e hel dt o th e highes t

safet y .standard . h . Violatio n History . (1 ) A violation-fi-e e history i s th e expecte dnorm , no t th e exceptio n and , therefore , i s no t amitigatin g factor . Sanctio n range s i n th e tabl e generall y represen t th e normal rang e o f

sanctio n fo r asingle , first-time , inadverten t violation . Give n th e expecte dnorm , aprio r violatio n recor d ca n b e evidenc e o f

apoo r complianc e dispositio n o r o f apattern o f

disregar dfo

r ih e FAA' s regulations , whic h are aggravatin g factors . A s aresult , aviolatio n history can justif y imposin g a sanctio n a t

th e highe r

en do f th e norma l rang e o r

asanctio n beyon dth e normal range . I t migh t als o justif y revocatio n rathe r

tha n suspensio n i f

th e patter n o f

violatio n reflect s alac k

o f qualification . I n addition , aviolatio n history migh t justif y acertificat e suspensio n i f previousl y issue dcivi l penaltie s hav e no t produce dth e desire ddeterrent effect . In decidin g whethe r a violatio n histor y justifie s aggravatin g th e sanctio n o r changin g th e usua

l typ e o f sanction , th e FA A considen i th e lengt

h o f lim e tha i ha s elapse dbetwee n violations , whethe r th e violation s involve dth e sam e o r

similar regulations , an dwhethe r th e violation s are factuall y similar . (2 ) Th e followin g action s constitut e violatio n history whe n the y involv e regulatory violation s an dbecom e final; order s o f amendment , modification , suspension , o r revocatio n o f

a n FAA certificate ; order s assessin g acivi l penalty ; findings o f violatio n containe di n aconsen t order , orde r

o f complianc e o r

denial ; an dfindings o f

violatio n mad e b y afederal court . I n addition , apart y may agre e a s par t o f asettlemen t

tha t th e FAA ma

y conside r

allege dviolation s a s finding s o f

violatio n for

future sanctio n determinations . i . Decisiona l Law . Decision s o f th e FAA decisionmake r

represen t th e FA A Administrator' s positio n o n issue s arisin g i n civi l penalt y assessmen t actions , includin g issue s regardin g sanctions . Th e polic y in thi s orde r als o represent s th e Administrator' s po.sitio n o n sanction s i n lega l enforcemen t actions . T o th e exten t

tha t thi s documen t

conflict s with FAA decisionmake r

decision s publishe dbefor e thi s document' s issuance , th e .sanctio n guidanc e polic y i n Ihi s orde r

supersede s thos e deci.sions . However , FAA decisionmake r decision s publishe dafter 7- 705/05/201 0 16:2 8 FA X 202493514 2 FA A • > DM S 12028/03 1 10/01/0 7 2150.3 B th e issuanc e o f

thi s documen t

that conflic t wit h th e polic y i

n thi s orde r

supersed e thi s documcn i an darc controlling , j . Abilit y t o Absor b Sanction . Sanction s shoul db e dcicrrenl . Whil e punitiv e sanction s shoul dno t

b e undul y harsh , ilic y shoul db e substantia l enoug h to preven t violator s fro

mprofilin g fromtheir violations , tha

t is , the sanctio n shoul db e hig h enoug h to remov e any profit incentiv e fo r violations . Penaltie s shoul dneve r b e permitte dt

o b e acos t

o f doin g business . Ai r

carriers , in particular , are require db y la w t o hav e the financial wherewitha l to operat e accordin g l o establishe dsafet

y standards . Whil e th e FA A doc s no t

allo w financial circumstance s t o excus e an y violation , i

t doe s conside r

acarrier' s siz e an dfinancia l strength i

n choosin g th e appropriate

sanctio n amount . Th e differenc e in th e penaltie s fixedi n th e la w fo r larg e aii dsmal l busines s concern s recognize s thi s fact . A civi l penalty tha t ma y b e amer e cos t

o f doin g business

- t o a majo r ai r carrie r migh t compe l asmal l air

carrie r t o g o out o f bu.siness . Therefore , th e FA A use s ai r carrie r siz e a s on e mean s o f

ensurin g arelativel y equivalen t deterren t effect o n eac h air carrie r tha t violate s th e sam e F

A A regulation . Th e resultiti g classificatio n o f ai r carrier s b y si^ e an drange s o f

civi l penaltie s are set

fonh i n pa n on e o f

the table . Fo r

all cniiiie s andindividuals , th e FAA consider s ability to pa y acivi l penalty andthe effec t acivi l penalty wil l hav e on a person' s abilit

y to continu e i

n busines s to the extent

i t know s suc h information , k . Consistenc y o f

Sanction . On e o f

th e agency' s goal s i s to achiev e relativ e consistenc y in imposin g simila

r sanction s fo

r similar violations . Th e FA

A pursue s thi s objectiv e t o a.ssur c fairnes s an ds o th e sanction'. s impac t ha s a n equivalen t

degre e o f

deterren i or

diseiphnar y valu e to other s similarl y situated . Thi s goal ma y no t alway s b e achieved , however , becaus e o f th e inherentl y subjectiv e natur e o f th e exercis e o f

judgmen t in settin g sanctions . I . Whethe r

th e Violatio n wa s Reporte dVoluntarily . (1 ) Th e FAA ha s program s tha t allo w person s to report

voluntaril y apparen t

violation s an dreceiv e lesse r

enforcemen t

actio n provide dcertai n criteri aar c met . Thes e program s includ e th e aviatio n safety reporting program , the voluntary disclosur e reportin g program , an dthe aviatio n safet

y actio n program . Beside s thes e programs , th e FA A may gran t special enforcemen t consideratio n unde r

cerui n circumstaiice s t

o aperso n who , inciden t

t o hi s o r her report o f another' s violations , voluntaril y disclose s hi s o r her ow n participatio n i

n th e same o r

relate d violations . Thi s specia l enforcemen t consideratio n ma

y rang e frommitigatin g th e sanctio n t o determinin g that

n o enforcemen t

actio n i s required . (2 ) I f aperso n i s no t

covere dunde r

on e o f thes e program s bu t

nonctliclcs s voluntaril y report s a n apparen t

violatio n t o th e FAA before th e FAA discover s it , take s imniediai e actio n t o correc t th e noncompliance , an dwork s with th e FAA o n step s t o preclud e recurrenc e o f di e apparen t violation , th e FA A ma

y conside r

suc h action s i

n mitigatin g th e sanctio n for th e violation . m . Correctiv e Action . Th e FA A consider s correctiv e actio n amitigatin g facto r in determinin g sanctio n provide dth e cortectiv e actio n exceed s th e minimu mregulatory o r statutory requirements . Th e amoun t o f credi t give n i n settin g asanctio n depend s o n tli c exten t an dtimin g o f th e correctiv e action , that is , ho w extensiv e wa s th e correctiv e actio n an dho w quickl y wa s i l taken . Implementin g ne w procedure s that ar e abov e thos e require dunde r th e FAA' s regulation s 7- 805/05/201 0 1G:2 9 FA X 202493514 2 FA A + DM S I2|029/03 1 10/01/0 7 2150.3 B t o preven t

fiirur e violation s ordinaril y i s considere damitigatin g facto r in determinin g a

n appropriat e sanction . Correctiv e actio n take n after th e allege dviolato r

first become s awar e o f

a deficienc y bu t

befor e FAA discovery o f

th e violatio n ordinaril y warrant s greate r mitigatio n tha

n correctiv e actio n tha

t i s take n onl y afte r

th e allege dviolato r

receive s notic e o f

th e FAA' s enforcemen t

action . (?orrectiv e actio n take n b y an allege dviolato r tha t simpl y bring s tha

t perso n int o complianc e with th e statutory o r regulatory requirement s i s no t considere di

n mitigatio n o f sanction . T o mitigate a.sanction base do n suc h correctiv e actio n woul dpu t a t an economi c disadvantag e competitor s wh o hav e expende dth e resource s necessary to maintai n compliance . 5- Us e o f th e Tabl e o f Sanctions . a . General . Sanctio n detcmiination s arc not accomplishe dthroug h astric t malhemalica l formula ; rather , sanctio n determination s resul t fro majudgmen t

o f where acas e lie. ^ alon g a spectru mo f

gravity . Ullimalely , th e cireum.stancc s o f eac h cas e arc evaluate di n icnn s o f

th e need s o f safel y andthe publi c inicie.st . I) . Single , First-time , Inadverten t Violations . (1 ) Pa n 1 1 o f

th e tabl e specifie s both th e normal type s o f sanctio n (certificat e action , civi l penalt y action , o r

othe r type ) an dth e norma l range s withi n thos e type s th e F/\ A ordinaril y seek s t o impos e i

n alega l enforcemen t

actio n fo r asingle , first-time violatio n tha t i s generall y inadverten t

(th e tabl e include s range. s o f .sanction s fo

r several violalioii. s tha

t usuall y are intentional , for

example , interferenc e with acrewmember , smokin g o n an aircraft) . I n addition , th e tabl e generall y reflect s apresumptio n tha i th e allege dviolato r want s to compl y wit

h th e la w an dt o remed y any noncomplianc e an dthat the allege dviolator , therefore , ha s aconstructiv e attitude . (2 ) Fo r factor s b , d , or

h o f paragrap h 4 (that

is , inadverten t

an dno t deliberat e conduct , altitude , an dviolatio n history) , th e FA A doc s no t

normall y deviat e fromth e range s liste di n th e tabl e solel y base do n th e inadvertenc e o f th e violatio n o r

o n di e allege dviolator' s goo d reputation , pas t

publi c service , violation-fre e history , o r constructiv e attitude . An y mitigatin g circumstance s ar e to b e foun di n the fact s an dcircumstance s o f th e violatio n itsel f (3 ) Applyin g range s withi n asanctio n type. I n determinin g where , withi n eac h range , a sanctio n shoul db e imposed , th e FAA generall y consider s factor s a, c , c , f , g , i , j , k , an dmo f paragrap h 4 (tha t

is , nature o f

th e violation , leve l o f

experience , degre e o f

hazard , actio n b y employe r o r othe r authority , us e o f

certificate , decisiona l law , ability t o absorb sanction , consistenc y o f

the sanctio n with similar cases , correctiv e action) , to the exten t the y ar c applicabl e o r relevant . Whe n determinin g aspecifi c sanctio n amoim t withi n arange , FA A enforcemen t personne l begi n with a

n amoun i i n th e middl e o f th e rang e an dincreas e tha t amoun t towar dth e highe r en do f th e rang e for

aggravatin g factor s o r

decreas e tha

t amoun t towar dth e lowe r

en do f th e rang e for

mitigatin g factors . (4 ) Deviatin g fromrange s withi n asanctio n type. Th e FA A migh t impos e sanction s belo w th e norma l range s base do n justifiabl e mitigatio n unde r factor s j , I , an dmo f

paragrap h 4 (tha t is , th e abilit y to absorb th e sanction , voluntar y reporting , correctiv e action) . Th e FAA may 7- 905/05/201 0 16:2 9 FA X 202493514 2 FA A DM S 1030/03 1

10/01/0 7 2150.3 B impos e .sanction s abov e th e nortnal range s whe n th e followin g circumstances , relatin g to factor s b , d , e , andh o f

paragrap h 4 ar

e present : the violatio n i s othe r tha n inadvertent^ , th e violato r ha s aviolatio n history , th e violatio n involve s asignifican t degre e o f

hazard , o r th e violato r

ha s a poo r complianc e disposition . Th e range s als o ma y b e exceede dwhe n th e cas e involve s multipl e violations . {Se

c chapte r 7 , paragraph s 6 and7) . c . Type s o f

Sanction . (1 ) General . Th e FA

A ordinaril y doe s not

initiat e punitiv e civi l penall y andpunitiv e certificat e action s (that

is , fixed-periodcertificat e suspensions ) agains t acertificat e holde r

fo r th e sam e offense . Whil e electin g to impos e on e sanctio n i s not alegal bar

to aconcurren t proceedin g to impos e another , pursuin g bot h action s solel y fo

r punitiv e purpose s usuiilly i s not necessary . Th e FA

A take s remedial andpunitiv e action s i n di e sam e case , however , whe n warranted . (2 ) Selectin g type s o f

sanctions . Fxcep t

i n exceptiona l circumstances , th e FAA use s th e type o f sanctio n recommende di n th e table . Th e FAA mus t impos e an

y sanctio n mandate db y statut e (fo r

example , revocatio n unde r 4 9 US.C . § § 44106(b) , 44710(b) , and44726(b ) unles s waive db y th e Administrator ) 6 . Genera l Guidanc e o n Multipl e Act s o r Multipl e Violation.s . a . Descriptio n o f

Multipl e Violations . Unforcement action s ofte

n involv e multipl e violations : multipl e violation s o f asingl e regulation ; asingl e violatio n o f multipl e regulations ; o r multipl e violation s o f

multipl e regulations . I

n addition , unde r

4 9 U.SC . § 46301(a)(2) , i f a violatio n i s acontinuin g one , eac h day th e violatio n continues , o r eac h flight

fo r whic h th e violatio n wa s committed , constitute s aseparat e offense . b . Genera l Sanctio n Guidance . Multipl e violation s ordinaril y resul t i n hig h sanctio n amounts . Suc h sanctio n amount s ordinaril y ar e no t determine dby simpl y addin g u p th e individua l penaltie s fo

r multipl e violation s set

fort h i n th e tabic , however . Simpl y addin g u p th e individua l penaltie s for

eac h violatio n coul dresul t in compoundin g asanctio n i n a disproportionatel y hars h manner fo r th e conduc t

involved . Conversely , multipl e violation s may b e s o seriou s i

n thei r consequence s fo

r .safet y andth e publi c interes t

a s l o requir e apenalt y greate r than th e su mo f

th e recommende damoun i o f penall y provide dfo

r i n th e tabl e fo

r eac h violation , c . Singl e Ac t

o f Noncomplianc e Resultin g i n Multipl e Violations . When asingl e instanc e o f

noncomplianc e result s i n multipl e violation s o f genera l andspecifi c regulation s involvin g th e sam e o r

similar conduct , th e FAA ordinaril y doe s no t compoun dth e sanctio n t o reflec t th e amoun t

o f sanctio n recommende di n th e tabl e fo r

eac h regulatory violation . I n calculatin g th e amoun t

o f sanctio n for

multipl e violations , FAA enforcemen i personne l conside r

* Whe n * e violatio n i s on e tha t i. s generall y inljerentl y deliberat e {e.g. , interferenc e wit h crewmembe r

o r smokin g violations) , facto r

b . Ii ! no t coosidere dmdctcrminia g wheilii; r th e .sanctio n shoul db e abov e ih e rang e i n th e table . Th e range s u i th e tabl e for suc h violation s alread y hav e take n int o cotisiJcrado n th e inherentl y deliberat e natur e o f ih c violation . 7-1 005/05/201 0 16:2 9 FA X 202493514 2 FA A + DM S i2|031/03 1 10/01/0 7 2150.3 B th e totality of

circumstance s relatin g t o th e multipl e violations , includin g th e allege dviolator' s degre e o f culpability , andwhethe r

th e allege dviolato r

hadlake n steps , althoug h unsuccessful , to preven t th e violations . d . Typ e o f

I ,egal Enforcemen t

Action . Where thi s guidanc e designate s th e type o f legal enforcemen t

actio n fo r asingl e violation , Ih

c FA A ordinaril y select s th e .sam e typ e o f sanctio n for multipl e violation s o f

asimila i nature Th e seriousnes s o f multipl e violaiion.s , however , ma y requir e changin g wha

t i s nomiali y acivi l penall y actio n t o acenificat c actio n or , sometimes , a punitiv e certificat e su.spensio n to aremedial revocaiio n action . 7 . Specia l Consideration s fo r Numerou s Multipl e Violation s Resultin g Fro ma n Initia l Ac t o r Omission . T o determin e penaliie,' ^ fo r numerou s multipl e violation s tha t resul t fro ma n initial ac t o r omission , th e FA A applie s the special consideration s andguidanc e i n chapte r 7 , subparagraph s 7.a , throug h e . Ihes e case s involv e stic h ahigh numbe r o f multipl e violation s tha

t if F A A enforcemen t

personne l wcrc simpl y t o addth e iccomrncnde damount s of penalty fo

r eac h flight o r day tha t constitute s aseparat e violation , th e resultin g sanctio n amoun i coul db e disproportionatel y hars h fo r th e inisconduc l involved , i n a n averag e case . a . Determinin g Propose dPenalty . T o determin e a n appropriat e civi l penall y i n acas e involvin g numerou s multipl e violation s resultin g fro ma n initial act

or omissio n (fo r

example , a

n aircraf t operate do n adoijen o r

mor e fiiglits afte

r bein g improperl y returne dl o service) , FA A enforcemen i personnel : (1 ) Identif

y eac h initial act

o r omissio n that

cause do r

resulte di n th e multipl e violation s (fo r example , imprope r

maintenanc e plu s imprope r return to service ; failure t o maintai n aquality contro l system) . (2 ) Consul t

th e tabl e in Appendi x Randih e genera l guidanc e i n chapte r 7 , paragrap h 4 , o n aggravatin g an dmitigatin g factor s to detemiin e th e amoun i o f penalty appropriat e fo

r eac h initia l ac t or omisbio n tha

t cause do r

resulte din th e multipl e violation s (fo r example , i

n airworthines s cases , apenalt y for th e ac t o f imprope r maintenanc e o r

inspection ; i n manufacturin g cases , apenalt y fo r th e ac t o f failin g t o maintai n aqualit y contro l system) . (3 ) Determin e th e amoun t o f penalty fo

r th e numerou s multipl e violation s b y applyin g th e guidanc e in chapte r

7 , stibparagraph s 7.b . throug h d . O f particular

importanc e i n determinin g an appropriat e sanctio n fo r numerou s multipl e violation s i s th e degre e o f th e allege dviolator' s culpabilit y fo

r th e multipl e violations . A lowe r degre e o f

culpability i s presen t

whe n th e allege d violato r neithe r kne w no r

wa s likel y to discove r

th e continuin g violations . Fo r example , onc e imprope r maintenanc e wa s don e ther e wer e n o sign s o f i i fromsuc h thing s a s discrepancie s reporte db y th e crew , an dn o inspection s that woul dhav e le dl o it s discover y wer e scheduled . A mor e significan t

degre e o f

culpability i s presen t

whe n factor s suc h a s th e followin g ar e present :

• th e initia l ac t

o r omissio n wa s entere din record s tha t shoul dhav e le dt

o immediat e detectio n an dcorrection ;

• th e initial ac l o r

omissio n remaine dundetecte dan dcontinue dthroug h require d inspection s o r

check s designe dl o reveal suc h discrepancies ; 7-1 1