AFS-12-416-E July 18, 2012

Exemption No. 6523H Regulatory Docket No. FAA-2001-9940

Mr. Bryan Carricaburu Vice President, Director of Operations Peninsula Airways, Inc., d.b.a. PenAir 6100 Boeing Avenue Anchorage, AK 99502

Dear Mr. Carricaburu:

This letter is to inform you that we have granted your petition to extend Exemption No. 6523, as amended. It explains the basis for our decision and describes its effect, describes its effect, and lists the conditions and limitations.

The Basis for Our Decision

By letter dated May 29, 2012, you petitioned the Federal Aviation Adm inistration (FAA) on behalf of Peninsula Airways, Inc., d.b.a. PenA ir (PenAir), for an extension of Exemption No. 6523, as amended. That exemption from 121.574(a)(1) and (3) of Title 14, Code of Federal Regulations (14 CFR) permits the carriage and operation of oxygen storage and dispensing equipment for medical use by patients requiring emergency or continuing medical attention while onboard an aircraft operated by PenAir when the equipment is furnished and maintained by a hospital treating the patient.

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

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

in the Federal Register because the requested extension of the exemption would not set a precedent, and any delay in acting on this petition would be detrimental to PenAir.2

Our Decision

The FAA has determ ined that the justification for the issuance of Exemption No. 6523, as amended, remains valid with respect to this exemption 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 following conditions

and limitations.

Conditions and Limitations

1. The oxygen equipm ent that is used in accordance with this exemption must be furnished and maintained by a hospital that is located in Alaska.

2. PenAir must develop and implement an FAA-approved program whereby hospitals may furnish oxygen equipment for medical use on board PenAir's aircraft. The procedures used in that program must ensure the following:

a. The equipment used is—

i. Of an approved type or is in conformity with the manufacturing, packaging, marking, labeling, and maintenance requirements of 49 CFR parts 171, 172, and 173, except § 173.24(a)(1), and has documentation affixed to it that verifies its compliance with those regulations;

ii. Maintained by the hospital in accordance with an approved maintenance program;

iii. Free of flammable contaminants on all exterior surfaces;

iv. Capable of providing a minimum mass flow of oxygen to the user of 4 liters per minute;

v. Constructed so that all valves, fittings, and gauges are protected from damage; and

vi. Appropriately secured.

b. When the oxygen is stored in the form of a compressed gas as defined in 49 CFR § 173.300(a)—

i. The equipment used has been under the hospital's approved maintenance program since it was purchased new or since the last hydrostatic test of the storage cylinder; and

ii. The pressure in any oxygen cylinder does not exceed the rated cylinder

pressure.

3. PenAir must ensure that each patient who is carried under the authority of this exemption is escorted by a person who is qualified to operate the furnished oxygen equipment and to administer oxygen according to the written instructions of a licensed physician.3

4. The oxygen that is given to a patient must be administered in accordance with the instructions of a licensed physician. If these instructions cannot be obtained in writing from a licensed physician, the pilot in command of a flight may obtain verbal instructions from a licensed physician through the available communications network in Alaska and annotate those instructions for use by the escort who administers the oxygen. If written or verbal instructions regarding the administration of oxygen cannot be obtained from a licensed physician prior to a flight, that flight may not be conducted under the authority of this exemption.

5. The pilot in command of a flight conducted under the authority of this exemption must ensure that the all patients and escorts are briefed in accordance with 14 CFR § 121.571, especially paragraph (a)(3) of that section.

6. PenAir must ensure that a flight attendant, who is required under 14 CFR § 121.391, is not used to meet the escort requirement of Condition No. 3 of this exemption.

The Effect of Our Decision

Our decision extends the term ination date of Exemption No. 6523, as amended, to October 31, 2014, unless sooner superseded or rescinded.

Sincerely,

/S/ Raymond Towles Acting Director, Flight Standards

Service