AFS-11-430-E October 24, 2011

Exemption No. 10377 Regulatory Docket No. FAA-2011-0892

Mr. Jeffrey J. Jenkins Chief Inspector, Part 135
PHI, Inc.

P.O. Box 90808 Lafayette, LA 70509

Dear Mr. Jenkins:

This letter is to inform you that we have granted your request for exemption. It transmits our decision, explains its basis, and gives you the conditions and limitations of the exemption, including the date it ends.

The Basis for Our Decision

By letter dated August 9, 2011, you petitioned the Federal Aviation Administration (FAA) on behalf of PHI, Inc. (PHI), for an exemption from §§ 91.411(b) and 91.413(c) of Title 14, Code of Federal Regulations (14 CFR). That exemption, if granted, would allow PHI to perform air traffic control (ATC) transponder tests and inspections and altimeter system and altimeter reporting equipment tests and inspections for its part 119 aircraft maintained under a continuous airworthiness maintenance program (CAMP). The exemption would also allow PHI to perform similar tests and inspections on its part 135 aircraft maintained under an approved aircraft inspection program (AAIP).

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

in the Federal Register . The requested exemption would not set a precedent, and any delay in acting on this petition would be detrimental to PHI.

The FAA has issued a grant of exemption in circumstances similar in all material respects to those presented in your petition. In Grant of Exemption No. 7770 (copy enclosed), the FAA2

found the reasons stated by the FAA for granting the enclosed exemption also apply to the situation you present.

In Exemption No. 7770, the FAA acknowledged the regulations from which the petitioner sought relief were written well before the FAA envisioned a company operating aircraft under part 135 whose part 135 fleet consists of aircraft with 9 or fewer passenger seats and aircraft with 10 or more passenger seats. With this type of fleet, the petitioner’s own employees maintain its part 135 aircraft with 10 or more passenger seats, but the petitioner is required to send its part 135 aircraft with 9 or fewer passenger seats to a part 145 certificated repair station for certain maintenance. We found the petitioner’s mechanics to be more familiar with the aircraft upon which the required testing would be performed than are the mechanics at a part 145 certificated repair station. PHI’s situation is similar in that some of its aircraft

are maintained under a CAMP while others are maintained under an AAIP. Because PHI operates its entire fleet under part 135, it would conduct the tests and inspections required by §§ 91.411(b) and 91.413(c) under the more comprehensive maintenance requirements of a CAMP, in a manner similar to the relief granted to PenAir in Exemption No. 7770.

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

 they are similar in all material respects to relief previously requested in the enclosed Grant of Exemption No. 7770;

 the reasons stated by the FAA for granting the enclosed Grant of Exemption No. 7770 also apply to the situation you present; and

 a grant of exemption is in the public interest.

Our Decision

Under the authority contained in 49 U.S.C. 40113 and 44701, which the FAA Administrator has delegated to me, I hereby grant PHI, Inc., an exemption from 14 CFR §§ 91.411(b) and 91.413(c) to the extent necessary to allow PHI to perform ATC transponder tests and inspections and altimeter system and altimeter reporting equipment tests and inspections for its part 119 aircraft maintained under a CAMP. PHI is also granted relief to perform similar tests and inspections on its part 135 aircraft maintained under an AAIP. This exemption is subject to the conditions and limitations described below.

Conditions and Limitations

1. All ATC transponder tests and inspections and all altimeter reporting equipment tests and inspections must be conducted under PHI’s part 119 CAMP.

2. All tests and inspections must be recorded in the aircraft’s maintenance log by the person performing each inspection and test. This entry must identify the person, the date, and this exemption number.3

3. An appropriate record of these tests and inspections also must be kept in PHI’s maintenance recording system for part 119 and part 135.

This exemption terminates on October 31, 2013, unless sooner superseded or rescinded.

Sincerely,

/s/

David C. Gilliom Acting Deputy Director, Flight Standards

Service

Enclosure