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Exemptio nNo
. 343 8
UNITE D STATE S O F AMERIC A DEPARTMEN T O F TRANSPORTATIO N FEDERA L AVIATIO NADMINISTRATIO N WASHINGTON , D.C
. 2059 1

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I nth e matte r o f th e petitio no f * * EXECUTIV E AI RFLEE T CORPORATIO N* Regulator yDocke t No
. 2227 0

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fo r a nexemptio nfro mSectio n* 135.2 5 o f th e Federa l Aviatio n* Regulation s * *

DENIA L O F EXEMPTIO N
B ylette r date dOcbobe r 2 , 1981 , Mr
. Willia mB
. Watt , Executiv e Ai r Flee t Corporatio n(EAF) , 9 0 Moonachi e Avenue , Teterboro , N.J
. 0 7 6 0 8 , an dJ
. W
. Rosenthal , Esq.' , Attorney , o f Ginsburg , Feldman , Wei l an dBress , 170 0 Pennsylvani a Avenue , N.W. , Washington , D.C
. 20006 , petitione do nbehal f o f EA F fo r a n exemptio nfro mSectio n135.25(b ) an d(c ) o f th e Federa l Aviatio n Regulation s (FAR ) t o th e exten t necessar yt o allo wpetitione r t o operat e withou t havin g th e exclusiv e us e o f a t leas t on e aircraf t tha t meet s th e requirement s fo r a t leas t on e kin do f operatio n authorize di nth e certificat e holder' s operation s specifications
. Sectio n135.25(b ) provides , i npertinen t part , tha t eac h certificat e holde r mus t hav e exclusiv e us e o f a t leas t on e aircraf t tha t meet s th e requirement s fo r a t leas t on e kin do f operatio nauthorize di nth e certificat e holder' s operation s specifications
. i naddition , fo r eac hkin do f operatio nfo r whic hth e certificat e holde r doe s no t hav e th e exclusiv e us e o f a naircraft , th e certificat e holde r mus t hav e availabl e fo r us e unde r a writte nagreemen t (includin g arrangement s fo r performin g require dmaintenance ) a t leas t on e aircraf t tha t meet s th e requirement s fo r tha t kin do f operation
. Sectio n135.25(c ) provides , i npertinen t part , tha t fo r th e purpos e o f th e previousl ymentione dparagraph , a perso nha s exclusiv e us e o f a naircraf t i f tha t perso nha s th e sol e possession , control , an dus e o f i t fo r flight , a s owner , o r ha s a writte nagreemen t (includin g arrangement s fo r performin g require d maintenance),.i neffec t whe nth e aircraf t i s operated , givin g th e perso ntha t possession , control , an dus e fo r a t leas t 6 consecutiv e months
. VS-82-005- EI nsuppor t o f it s request , EA F states , i npertinen t part :

EA F i s a Delawar e corporatio nwit hit s principa l plac e o f busines s a t Teterbor o Airport , Teterboro , Ne wJersey
. EA F i s a n aircraf t managemen t fir mwhic hals o hold s a certificat e an d operation s specification s issue dunde r Par t 13 5 and , amon g othe r things , conduct s a nai r tax i charte r operatio nunde r a nexemptio n fro mth e Civi l Aeronauti c Boar d(CAB) ' pursuan t t o Par t 29 8 o f th e Board' s Economi c Regulations
. EAF' s principa l busines s i s th e performanc e o f managemen t an dconsultin g service s fo r client s wh o ow nexecutiv e je t aircraft
. Thos e client s {hereinafte r sometime s referre dt o a s "owners" } includ e corporation s an dindividual s wh o us e suc h aircraf t fo r th e transportatio no f thei r ow ncorporat e executive s o r themselves , a s th e cas e ma ybe , an d thei r guests
. Unde r contract s betwee nEA F an dth e owners , EA F perform s a multitud e o f managemen t advisor yfunction s relate dt o th e owners ' operatio no f suc haircraft
. Thes e function s includ e aircraf t maintenanc e an d recordkeeping , an dth e recruitin g an dtrainin g o f fligh t crewmembers
. Severa l o f EAF' s presen t client-owner s hav e determine dthat , i norde r t o utiliz e thei r aircraf t efficiently , i t woul db e desirabl e t o hav e suc haircraf t chartere dt o thir dpartie s fro m tim e t o time
. i norde r t o accomplis hthis , EA F obtaine dth e certificat e an doperation s specification s referre dt o above
. Unde r it s contract s wit hth e owners , EA F ha s complet e operationa l contro l o f th e aircraf t whe ni t i s bein g operate d unde r a charte r an dth e owner ' ha s complet e operationa l contro l (wit hmanagemen t service s performe db yEAF ) whe nth e owne r i s usin g th e aircraf t fo r hi s ow naccount
. Whe nEA F operate s th e aircraft , th e operatio ni s unde r Par t 135 ; whe nth e owne r operate s th e aircraft , i t i s operate dunde r eithe r Par t 9 1 o r Par t 125 , dependin g o naircraf t size
. O nAugus t 11 , 1981 , EA F file da petitio nfo r rulemakin g requestin g tha t th e Federa l Aviatio nAdministratio n(FAA ) abolis h th e Par t 13 5 exclusive-us e requirement
. Thi s petitio nwa s publishe di nth e Federa l Registe r o nSeptembe r 28 , 198 1 (4 6 F R 47465)
. I nit s petition , EA F relie do nth e FAA's ' abolitio ni n Jul y198 1 o f th e analogou s exclusive-us e rul e o f Par t 121 , o nth e basi s tha t i t wa s "aneconomi c burden..
. tha t canno t b e justifie d o nsafet ygrounds. " EA F furthe r pointe dou t tha t th e situatio n wit hwhic hexclusive-us e rule s wer e intende dt o deal--namely , th e plethor a o f nonschedule doperator s whic hemerge dafte r Worl dWa r II--n o longe r exist s an dtha t th e Civi l Aeronautic s Boar dn o longe r ha s an yenforcemen t interes t i nth e area . Finally , EA F argue dtha t th e rul e di dno t eve naccomplis hit s intende dpurpos e sinc e requirin g eac hPar t 13 5 operato r t o hav e th e exclusiv e us eo f on e aircraf t hardl yconstitute d"positiv e control"-

- th e

ostensibl e purpos e o f exclusive-us e rules
. I naddition , EA F submitte da petitio nfo r exemptio nan dfeel s tha t a gran t o f exemptio ni s warrante ddu e t o th e needles s an dwastefu l economi c burde nimpose dupo ni t byth e rul e an db yth e fac t tha t aviatio n •safety.wil l no t b e adversel yaffected--indeed , wil l b e advanced-

- b yth e abolitio no f th e rule
. Becaus e it s uniqu e an dhighl yrespecte dtimesharin g and aircraf t managemen t busines s doe s not , o f itself , giv e EA F th e exclusiv e us e o f on e aircraft , th e company'ha s bee ncompelle dt o purchase , own , an dmaintai na single-engin e Cessn a 15 2 solel yi n orde r t o satisf ySectio n135.25
. Asummar yo f petitioner' s exemptio nreques t wa s publishe di n the-Federa l Registe r o nNovembe r 5 , 198 1 (4 6 F R55051)
. On e commen t wa s received
. Thi s commente r stated,.i npertinen t part : Thi s industr yha s bee nplague dwit htemporar yoperator s wh o decid e t o hel p defra yexpense s o naircraf t o r provid e employmen t fo r out-of-wor k pilot s b ygettin g int o th e ai r tax i busines s fo r shor t period s o f time
. Requirin g tha t a t leas t on e aircraf t b e exclusivel yavailabl e fo r charte r us e i s on e mean s o f requirin g a commitmen t t o th e ai r tax i busines s tha t undoubtedl yha s prevente dth e existenc e o f eve nmor e short-ter mai r tax i operators
. Th e leve l o f inspectio nan dsurveillanc e o f someon e i nan d ou t o f th e ai r tax i busines s ove r a shor t perio do f tim e canno t b e a s comprehensiv e a s i t i s fo r th e continuing , full-tim e operator s th e loca l FA Aoffice s hav e deal t wit hove r a perio do f time ; hence , th e possibilit yo f a lowe r leye l o f safet yfo r thos e operator s exists
. Whil e othe r mean s undoubtedl yexis t t o requir e th e commitmen t mentione dabove , n o othe r metho di s currentl yi n effec t tha t woul dreplac e th e aircraf t requiremen t and , therefore , th e requirement s o f Sectio n135.25(b ) an d(c ) shoul d no t b e delete da t thi s time
. Base dupo na revie wo f th e fact s presente dan di nligh t o f • th e commen t received , th e FA Abelieve s tha t th e aircraf t requiremen t i nPar t 13 5 provide s a stabl e bas e fo r certification
. A t th e presen t time , a s man ya s 10 0 operator s g o ou t o f busines s monthly , wit habou t th e sam e numbe r applyin g fo r ne w certificate s . Thi s aircraf t requiremen t ha s bee ni nexistenc e sinc e 1949 , an dth e industr yha s voice dn o objectio nt o th e rule
. I nth e revisio nt o Par t 13 5 propose di n1977 , onl ya fe wcomment s weire receive drequestin g a change
.Fro ma safet ystandpoint , th e rul e provide s prope r contro l

ove r operation s an dmaintenanc e fo r on e aircraft
. Executiv e Ai r Flee t Corporatio nargue s tha t thi s doe s no t accomplis htha t purpose . Th e FA

Amaintain s tha t byrequirin g ownershi p o r leasin g o f on e aircraft , a napplican t wil l hesitat e befor e makin g applicatio nbecaus e i t mus t commi t itsel f t o contro l on e aircraft
. Withou t suc ha commitment , th e operato r migh t b e tempte dt o reduc e aircraf t maintenanc e an dcre wtrainin g an dthe n sel l o r leas e th e aircraf t befor e routin e FA Asurveillanc e . reveal s onl ypossibl e irregularities
. Suc ha situatio ni s no t i n th e publi c interes t an dcoul dresul t i noperation s conducte da t a reduce dleve l o f safety
. I nconsideratio no f th e foregoing , I fin dtha t a gran t o f exemptio ni s no t i nth e publi c interest
. Therefore , pursuan t t o th e authorit ycontaine di nSection s 313(a ) an d601(c ) o f th e Federa l Aviatio nAc t o f 1958 , delegate dt o m e byth e Administrato r (1 4 CF R11.53) , th e petitio no f Executiv e Ai r Flee t Corporatio nfo r a nexemptio nfro mSectio n135.25(b ) an d(c ) o f th e Federa l Aviatio nRegulation s i s hereb ydenied
.
/s / Kennet hS
. Hunt

Directo r o f Fligh t Operation s

Issue di nWashington , D.C , o n Decembe r 31 , 198 1
.