AFS-10-198-E

Jun 30 2010

Exemp tion No. 8565C Regul atory Docket No. FAA-2004-17662

Mr. Stuart A. Goldstein Counsel for The Liberty Foundation, Inc.
Law Offices of Goldstein & Sordo 9350 South Dixie Highway, 10 th Floor Miami, FL 33156

Dear Mr. Goldstein:

This letter is to inform you that we have granted y our petition to amend Exemption No. 8565, as amended. It transmits our decision, explains it s basis, and gives you the conditions and limitations of the exemption, including the date it ends.

The Basis for Our Decision
By letter posted to the docket on March 11, 2010, y ou petitioned the Federal Aviation Administration (FAA) on behalf of The Liberty Found ation Inc. (Liberty), for an amendment to Exemption No. 8565, as amended. That exemption from §§ 91.315, 119.5(g), and 119.21(a) of Title 14, Code of Federal Regulations (14 CFR) allows Liberty to operate its Boeing B-17 (B-17), N390TH, to carry passengers for compensation or hire on local flights for educational and historical purposes. The amend ment you request would add the Curtis P-40 (P-40), N2416X, to Exemption No. 8565, as amen ded.

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

The FAA has determined that good cause exists for n ot publishing a summary of the petition in the Federal Register

because the requested amendment to the exemption w ould not set a precedent, and any delay in acting on this petition would be detrimental to Liberty.2

The FAA has issued a grant of exemption in circumst ances similar in all material respects to those presented in your petition. In Grant of Exem ption No. 7093, the FAA found that preserving historic U.S. aircraft is in the public interest, in the same manner that preserving historic buildings, landmarks, and neighborhoods ha s been determined to be in the public interest. While aviation history can be represente d with static displays in museums in the same manner that historic landmarks can be represen ted in museums, the public has shown a willingness to support the preservation and operati on of historic aircraft and a desire to experience flights in them.

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

• they don’t differ materially from those presented b y the petitioner in the Grant of Exemption No. 7093;

• the reasons stated by the FAA for granting the encl osed exemption also apply to the situation you present; and

• a grant of exemption is in the public interest.

Our Decision
The FAA has determined that the justification for t he issuance of Exemption No. 8565, as amended, remains valid with respect to this exempti on and is in the public interest. Therefore, under the authority provided by 49 U.S.C. 40113 and 44701, which the FAA Administrator has delegated to me, I grant your petition, subject to the conditions and limitations listed
below.

Conditions and Limitations

1. This exemption applies only to the aircraft listed below:

a. North American B-17, N390TH; and

b. Curtis P-40, N2416X.

2. Liberty must maintain its Limited Category airplane s in accordance with the:

a. Maintenance requirements as specified in the approp riate type certificate data sheet, as amended;

b. FAA-approved maintenance inspection program that me ets the requirements of § 91.409(e), (f)(4) and (g); and

c. The appropriate military technical manuals.

3. Liberty must maintain its Experimental Airplanes in accordance with the:

a. Maintenance requirements as specified in their oper ating limitations;

b. FAA-approved maintenance inspection program that me ets the requirements of § 91.409(a) and (b), and3

c. The appropriate military technical manuals.

4. In accordance with 14 CFR 91.111, formation operati ons, including simulated air combat are prohibited and not subject to additional waiver.

5. Prior to conducting operations in accordance with t his exemption, Liberty must provide records to the Atlanta FSDO showing that th ey have successfully operated the
Curtis P-40 for a minimum of 25 hours to demonstrat e their ability to operate a liquid cooled single engine fighter aircraft.

6. The PIC for the B-17 must:

a. Hold at least a commercial pilot certificate with a n airplane multiengine land rating, an airplane instrument rating, and the appr opriate type rating;

b. Have completed within the previous 12 calendar mont hs, Liberty's PIC qualification and recurrent flight and ground train ing program in each specific airplane for which PIC privileges are sought;

c. Have completed within the previous 12 calendar mont hs, Liberty's PIC proficiency check in each specific airplane for whi ch PIC privileges are sought;

d. Have at least a total of 2,500 hours of aeronautica l flight experience, 1,000 hours of aeronautical flight experience in mu ltiengine land airplanes, and 25 hours in each specific airplane; or have at leas t a total of 1,000 hours of aeronautical flight experience, 200 hours of aerona utical flight experience in a multiengine land airplane, and 100 hours and 50 tak eoffs and 50 landings in each specific airplane; and

e. Have accomplished within the previous 90 days, thre e takeoffs and three landings to a full stop in each specific airplane f or which PIC privileges are sought. For initial PIC qualification in a the spec ific airplane or if the pilot has allowed his/her takeoff and landing currency to lap se in each specific airplane the takeoff and landing currency may not be accompl ished during passengercarrying operations.

7. The PIC for the single engine airplane must:

a. Hold at least a commercial pilot certificate with a n airplane single-engine land rating, an airplane instrument rating, and an FAA a uthorization to act as PIC of the P-40;

b. Have completed within the previous 12 calendar mont hs, Liberty's PIC qualification and recurrent flight and ground train ing program for each specific airplane;

c. Have completed within the previous 12 calendar mont hs, Liberty's PIC proficiency check for each specific airplane;4

d. Have at least a total of:

(i) 2,500 hours of aeronautical flight experience, 1,00 0 hours of aeronautical flight experience in single-engine lan d airplanes, and 25 hours in each specific airplane;

(ii) ii. 1,000 hours of aeronautical flight experience, 200 hours of aeronautical flight experience in a single-engine l and airplane, and 100 hours and 50 takeoffs and 50 landings in each s pecific airplane; and

e. Have accomplished within the previous 90 days, thre e takeoffs and three landings to a full stop in each specific airplane. For initial PIC qualification in each specific airplane or if the pilot has allowed his/her takeoff and landing currency to lapse in any specific airplane, the tak eoff and landing currency may not be accomplished during passenger-carrying opera tions.

8. The SIC for the B-17 must:

a. Hold at least a commercial pilot certificate with a n airplane multiengine land rating and an airplane instrument rating;

b. Have completed within the previous 12 calendar mont hs, Liberty's SIC qualification and recurrent flight and ground train ing program in each specific airplane for which SIC privileges are sought;

c. Have completed within the previous 12 calendar mont hs, Liberty's SIC proficiency check in each specific airplane for whi ch SIC privileges are sought;

d. Have at least a total of 1,500 hours of aeronautica l flight experience, 250 hours of aeronautical flight experience in a multiengine land airplane; or have at least a total of 500 hours of aeronautical flight experie nce, 100 hours of aeronautical flight experience in a multiengine land airplane, a nd 25 hours and 10 takeoffs and 10 landings in each specific airplane for which SIC privileges are sought;
and

e. Have accomplished within the previous 90 days, thre e takeoffs and three landings to a full stop in the airplane for which S IC privileges are sought. For initial SIC qualification in each specific airplane or if the pilot has allowed his/her takeoff and landing currency to lapse in th e specific airplane, the takeoff and landing currency may not be accomplishe d during passengercarrying operations.

9. Liberty must develop and maintain written B-17 qual ification and recurrent ground training programs for its PICs and SICs in the B-17 that covers the training subjects
listed below. Each PIC and SIC in the B-17 must rec eive the following training within the previous 12 calendar months and be found to be competent and proficient in these areas prior to serving in an PIC or SIC po sition in the B-17:5

REQUIRED TRAINING TASKS a. General information and description of the airp lane; b. Aircraft limitations; c. Aircraft servicing; d. Airspeeds; e. Fuel system; f. Electrical system; g. Hydraulic system; h. Engines; i. Instruments and avionics; j. Landing gear, brakes, controls, and flaps syste ms; k. Propeller; l. Emergency procedures, including— (i) Instruction in emergency assignments and proce dures, including coordination among crewmembers; (ii) Individual instruction in the location, funct ion, and operation of emergency equipment, including— A. First aid equipment and its proper use; and
B. Portable fire extinguishers, with emphasis on t he type of extinguisher to be used on different classes of fires; (iii) Instruction in the handling of emergency sit uations, including— A. Fire in flight or on the surface and smoke cont rol procedures with emphasis on electrical equipment and related circuit brea kers found in cabin areas; and B. Illness, injury, or other abnormal situations i nvolving passengers or crewmembers;

m. Weight and balance; n. Performance planning; o. Airplane's checklist; and p. Differences in type.

10. Liberty must develop and maintain a written qualifi cation and recurrent ground training program for its PIC in each specific airpl ane that covers the training subjects listed below. Each PIC must receive the following training within the previous 12 calendar months and be found to be competent and proficient in these areas prior to serving in a PIC position in each specific airpl ane:

REQUIRED TRAINING TASKS a. General information and description of the airp lane; b. Aircraft limitations; c. Aircraft servicing; d. Airspeeds;6

e. Fuel system; f. Electrical system; g. Hydraulic system; h. Engines; i. Instruments and avionics; j. Landing gear, brakes, controls, and flaps syste ms; k. Propeller; l. Emergency procedures, including— (i) Instruction in emergency assignments and proce dures, including coordination among crewmembers; (ii) Individual instruction in the location, funct ion, and operation of emergency equipment, including— A. First aid equipment and its proper use; and
B. Portable fire extinguishers, with emphasis on t he type of extinguisher to be used on different classes of fires; (iii) Instruction in the handling of emergency sit uations, including— A. Fire in flight or on the surface and smoke cont rol procedures with emphasis on electrical equipment and related circuit brea kers found in cabin areas; and B. Illness, injury, or other abnormal situations i nvolving passengers or crewmembers;

m. Weight and balance; n. Performance planning; and o. Airplane's checklist.

11. Liberty must develop and maintain a written B-17 qu alification and recurrent flight training program for its PIC in the B-17 that cover s the areas of operations and tasks, as listed in the following table of training tasks. Each PIC in the B-17 must successfully accomplish this training before being assigned PIC responsibilities and
duties. Each PIC in the B-17 must receive and succe ssfully accomplish the following training within the previous 12 calendar months and be found to be competent and proficient in these areas prior to serving in a PIC position in the B-17 for Liberty:

REQUIRED TRAINING TASKS a. Preflight Preparation, including— (i) Aircraft exam (oral or written); and (ii) Aircraft performance & limitations (oral or written). b. Ground Operations, including— (i) Preflight inspection; (ii) Cockpit resource management; (iii) Powerplant start procedures; (iv) Taxiing; and7

(v) Pre-takeoff checks. c. Takeoffs & Departures, including— (i) Normal & crosswind takeoffs; (ii) Powerplant failure; and (iii) Rejected takeoffs. d. In-flight Maneuvers, including— (i) Steep turns; (ii) Approach to stalls; (iii) Powerplant failure; and (iv) Specific flight characteristics. e. Landings & Approaches to Landing, including— (i) Normal & crosswind approaches & landing; (ii) Maneuvering to a landing with a simulated p owerplant failure; (iii) Rejected landing; and (iv) Landing from a no flap or a nonstandard flap approach. f. Normal & Abnormal Procedures, including— (i) Powerplant; (ii) Fuel system; (iii) Electrical system; (iv) Hydraulic system; (v) Environmental & pressurization system (as ap propriate and if equipped); (vi) Fire detection & extinguishing system; (vii) Navigation & avionics system; (viii) Automatic flight control system, electronic flight instrument system, & related systems (as appropriate and if equ ipped); (ix) Flight control system; (x) Anti-ice & de-ice system; and (xi) Aircraft & personal emergency equipment. g. Emergency Procedures, including— (i) In-flight fire & smoke removal; (ii) Rapid decompression (as appropriate and if e quipped with a pressurization system); (iii) Emergency descent; (iv) Ditching; and (v) Emergency evacuation. h. Post flight Procedures, including— (i) After landing procedures; and (ii) Parking and securing aircraft.8

12. Liberty must develop and maintain a written qualifi cation and recurrent flight training program for its PICs in each specific single engine airplane that covers the areas of operations and tasks, as listed in the following ta ble of training tasks. Each PIC must successfully accomplish this airplane specific trai ning before being assigned PIC responsibilities and duties. Each PIC must receive and successfully accomplish the following training within the previous 12 calendar months and be found to be competent and proficient in these areas prior to se rving in a PIC position in each specific single engine airplane:

REQUIRED TRAINING TASKS a. Preflight Preparation, including— (i) Aircraft exam (oral or written); and (ii) Aircraft performance & limitations (oral or written). b. Ground Operations, including— (i) Preflight inspection; (ii) Cockpit resource management; (iii) Powerplant start procedures; (iv) Taxiing; and (v) Pre-takeoff checks. c. Takeoffs & Departures, including— (i) Normal & crosswind takeoffs; (ii) Powerplant failure; and (iii) Rejected takeoffs. d. In-flight Maneuvers, including— (i) Steep turns; (ii) Approach to stalls; (iii) Powerplant failure; and (iv) Specific flight characteristics. e. Landings & Approaches to Landing, including— (i) Normal & crosswind approaches & landing; (ii) Maneuvering to a landing with a simulated p owerplant failure; (iii) Rejected landing; and (iv) Landing from a no flap or a nonstandard flap approach. f. Normal & Abnormal Procedures, including— (i) Powerplant; (ii) Fuel system; (iii) Electrical system; (iv) Hydraulic system; (v) Environmental & pressurization system (as ap propriate and if equipped); (vi) Fire detection & extinguishing system;9

(vii) Navigation & avionics system; (viii) Automatic flight control system, electronic flight instrument system, & related systems (as appropriate and if equ ipped); (ix) Flight control system; (x) Anti-ice & de-ice system; and (xi) Aircraft & personal emergency equipment. g. Emergency Procedures, including— (i) In-flight fire & smoke removal; (ii) Rapid decompression (as appropriate and if e quipped with a pressurization system); (iii) Emergency descent; (iv) Ditching; and (v) Emergency evacuation. h. Post flight Procedures, including— (i) After landing procedures; and (ii) Parking and securing aircraft.

13. Liberty must develop and maintain a written B-17 qu alification and recurrent flight training programs for its SIC in the B-17 that cove rs the areas of operations and tasks, as listed in the following table of training tasks. Each SIC in the B-17 must successfully accomplish this training before being assigned SIC responsibilities and
duties. Each SIC in the B-17 must receive and succ essfully accomplish the following training within the Previous 12 calendar months and be found to be competent and proficient in these areas prior to serving in an SI C position in the B-17 for Liberty:

REQUIRED TRAINING TASKS: a. Operational procedures applicable to the powerp lant, equipment, and systems; b. Performance specifications and limitations; c. Normal, abnormal, and emergency operating proce dures; d. Three takeoffs and three landings to a full sto p as the sole manipulator of the flight controls; e. Engine-out procedures and maneuvering with an e ngine out while executing the duties of PIC; f. Crew resource management training; and g. Familiarization with the aircraft flight manual , placards, and markings.

14. Liberty may not use a pilot nor may any pilot serve as a pilot in any airplane unless, since the beginning of the 12th calendar month befo re that service, that pilot has passed a competency check given by the FAA or an au thorized check pilot in that airplane to determine the pilot's competence in pra ctical skills and techniques in the appropriate airplane. The competency check will co nsist of the appropriate10

maneuvers and procedures currently required for the original issuance of the commercial pilot certificate.

15. The FAA's Atlanta Flight Standards District Office (FSDO) will determine what maneuvers and procedures are critical, such as pref light preparation, ground operations, takeoffs and departures, and normal pro cedures, etc., and maneuvers and procedures that may be unsafe for a particular airp lane.

16. Recurrent flight training for pilots must include, at least, flight training in the maneuvers and procedures in this exemption. However , satisfactory completion of the check required by this exemption within the precedi ng 12 calendar months may be substituted for recurrent flight training.

17. Liberty must document and record all ground and fli ght training and/or testing required by this grant of exemption in a manner acc eptable to the FAA's Atlanta
FSDO. That documentation and records must contain the following information:

a. Date of each training session;

b. Date of each testing session;

c. The amount of time of each session of ground and fl ight training given;

d. The amount of time of each session of ground and fl ight testing given;

e. Location where each session of ground and flight tr aining was given;

f. Location where each session of ground and flight te sting was given;

g. The airplane identification number in which each fl ight training session was received;

h. The airplane identification number in which each fl ight testing session was received;

i. The name and certificate number of the pilot who pr ovided each session of training;
j. The name and certificate number of the pilot who pr ovided each session of testing;

k. The signature and printed name of the pilot who rec eived the training. That pilot's signature will serve as a verification of h aving received each session of training; and

l. The signature and printed name of the pilot who rec eived the testing. That pilot's signature will serve as a verification of h aving received each session of testing.11

18. When requested, the Liberty's pilot qualification a nd recurrent ground- and flighttraining programs and/or records listed in conditio ns above must be made available to the Atlanta FSDO, 1701 Columbia Ave., College Park, GA, 30337, 404-305-7200.

19. Liberty must have the services of an FAA-certificat ed airframe and powerplant mechanic or an appropriately rated repair station a vailable at all stopovers to perform all required maintenance inspections and repairs.

20. Liberty will maintain the following information and records and will make those records available for review to the FAA when reques ted:

a. The name of each pilot crewmember Liberty authorize s to conduct flight operations in its airplanes under the terms of this exemption;

b. Copies of each PIC's and SIC's pilot certificate, m edical certificate, qualifications, and initial and recurrent training and testing documentation to comply with the conditions listed above; and

c. Records of maintenance performed and maintenance in spection records to comply with the conditions above, as appropriate. M aintenance and inspection records must meet the requirements of §§ 91.405, 43 .9, and 43.11.

21. Before permitting a person to be carried on board i ts airplane for the purposes authorized under this exemption, Liberty will infor m that person that its airplanes hold only a limited airworthiness certificate; the significance of the airworthiness certificate as compared to a standard airworthiness certificate; and that the FAA has authorized this flight under a grant of exemption f rom the requirements of §§ 91.315, 91.319, 119.5(g), and 119.21(a). The explanation o f the significance of a limited airworthiness certificate, experimental airworthine ss certificate compared to a
standard airworthiness certificate must include at least the following information:

a. The FAA has not established nor has it approved lim ited category airworthiness certificated airplane manufacturing s tandards. The FAA has not established nor has it approved experimental catego ry airworthiness certificated airplane manufacturing standards. In contrast, standard category airworthiness certificated airplanes are manufactur ed to FAA-approved standards, including standards addressing the desig n of the airplane and lifelimited parts.

b. Limited category airworthiness certificated airplan es are issued when the FAA finds the airplane—

ii. Has been previously issued a limited category type certificate and the airplane conforms to that type certificate; and

iii. To be in a good state of preservation and repair an d is in a safe operating
condition.12

c. An airplane may be issued an experimental airworthi ness certificate for the purpose of exhibition when the airplane is intended only for exhibition of the airplane's flight capabilities, performance, or unu sual characteristics at airshows, motion picture, television, and similar p roductions and the maintenance of exhibition flight proficiency, inclu ding (for persons exhibiting the airplane) flying to and from such airshows and productions.

d. Standard category airworthiness certificates are is sued for an airplane when
theFAA finds the—

i. Airplane has been built and maintained in accordanc e with that airplane's type certification standards as established by the FAA; and

ii. Airplane's inspection and maintenance requirements are in compliance with the applicable Federal Aviation Regulations.

22. Liberty must notify the Atlanta FSDO within 24 hour s of any of the following occurrences by written report, by electronic mail, or by facsimile:

a. Each in-flight fire in any system or area that requ ires activation of any fire suppression system or discharge of a portable fire extinguisher.

b. Each exhaust system component failure including the turbocharger components that causes damage to any engine, structure, cowlin g, or components.

c. Each airplane component or system that causes, duri ng flight, accumulation or circulation of noxious fumes, smoke, or vapor in an y portion of the cabin or

crew area.

d. Except for training, each occurrence of engine shut down or propeller feathering, and the reason for such shutdown or fea thering.

e. Each failure of the propeller governing systems or feathering systems.

f. Any landing gear system or component failures or ma lfunctions, which require use of emergency or standby extension systems.

g. Each failure or malfunction of the wheel brake syst ems that cause loss of brake control on the ground.

h. Each airplane structure that requires major repair due to damage, deformation, or corrosion, and the method of repair.

i. Each failure or malfunction, of the fuel system, ta nks, pumps, or valves.
j. Each malfunction, failure, or defect in any system or component that requires taking emergency action of any type during the cour se of any flight.

k. For the purpose of this section, "during flight" me ans the period from the moment the airplane leaves the surface of the earth on takeoff until it touches down on landing.13

23. All flight operations must be conducted:

a. At a minimum operating altitude of not less than 1, 000 feet above ground level (AGL);

b. Between the hours of official sunrise and sunset, a s established in the American Air Almanac, as converted to local time;

c. Within a 25-statute-mile radius of the departure ai rport with landings only permitted at the departure airport;

d. With a minimum flight visibility of not less than 3 statute miles and a minimum ceiling of not less than 1,500 feet AGL;

e. Passenger-carrying operations for compensation may be conducted at distances greater than 25 statute miles of the departure airp ort up to 50 statute miles with concurrence of the FAA FSDO having geographic respo nsibility for the aviation event. For such flights, landings are onl y permitted at the departure airport. The operator must provide information per taining to the proposed route of flight, which will avoid densely populated areas or congested airways in accordance with 14 CFR § 91.319(c) for airplane certificated in the experimental category. Those operators utilizing a irplane certificated in the limited category are not bound by the restriction r egarding the avoidance of densely populated areas or congested airways;

f. For passenger-carrying flights greater than 25 stat ute miles from the departure airport and up to 50 statute miles, the PIC must ob tain weather reports and forecasts prior to flight and valid for the duratio n of the proposed operation that
indicate that the weather would be no less than 5 s tatute miles visibility and cloud ceilings no less than 2,000 feet AGL.

g. Passenger-carrying operations shall be terminated i f ceiling and visibility become less than the minimum required by these cond itions and limitations. Weather forecasts listing discriminators such as pr obability (PROB), becoming (BECOMG) or temporarily (TEMPO) shall be limiting; and

h. The airplane may only be operated from an airport t hat has a fire station or firefighting services available or within close proximi ty of the airport.

24. No persons other than the assigned flight crewmembe rs may be permitted on the pilot station of the airplane during flight operations.

25. Except for essential crewmembers, all flight operat ions must carry no more than the maximum number of passengers permitted by the airpl ane's weight and balance limitations and number of approved seats in the air plane.

26. All airplanes must have the equipment listed in §§ 91.205(b) and 91.207, and that equipment must be in an operable condition during t he flight.14

27. Liberty must hold and continue to hold a determinat ion from the U.S. Internal Revenue Service that it is a § 501(c)(3) nonprofit, tax-exempt, charitable organization under §§ 509(a)(1) and 170(b)(1)(A)(vi) of the Inte rnal Revenue Code.

28. Liberty must notify the Atlanta FSDO at least 5 wor king days (Mondays through Fridays) before conducting any PIC or SIC initial o r recurrent qualification training and any PIC or SIC initial or recurrent proficiency checks required to be conducted under the terms of this grant of exemption.

29. No later than 72 hours prior to commencing flight o perations under the terms of this grant of exemption, Liberty must notify the jurisdi ctional FAA FSDO where it intends to conduct the flight operations and shall provide a copy of this exemption to that jurisdictional FAA FSDO.

30. Failure to comply with any of the conditions and li mitations of this grant of exemption will be grounds for the immediate suspens ion or revocation.

The Effect of Our Decision
Our decision extends the termination date of Exempt ion No. 8565, as amended, to November 30, 2012, unless sooner superseded or resc inded.

Sincerely,

/s/
John M. Allen Director, Flight Standards Service