Exemption No. 6540J

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION WASHINGTON, DC 20591

In the matter of the petition of

COLLINGS FOUNDATION Regulatory Docket No. FAA-2001-11089

for an exemption from §§ 91.315, 91.319(a)(2), 119.5(g), and 119.21(a) of Title 14, Code of Federal Regulations

PARTIAL GRANT OF PETITION FOR RECONSIDERATION

By letters posted to the docket on: October 1, 2009, October 2, 2009, and March 16, 2010, you petitioned the Federal Aviation Administration (FAA) on behalf of the Collings Foundation (Collings) for reconsideration of the FAA’s denial of the request to amend Exemption No. 6540. The amendment you request would add a McDonnell Douglas F-4 Phantom (NX749CF), McDonnell Douglas TA -4J Skyhawk (NX524CF), Classic Fighter Me-262 (NX262AZ), and Fieseler Fi-156 Storch (NX156FC) to the current list of aircraft operated under Exemption No. 6540, as amended.

The petitioner requests relief from the following regulations:

Section 91.315: Limited category civil aircraft: Operating limitations prescribes that no

person m ay operate a limited category civil aircraft carrying persons or property for compensation or hire.

Section 91.319(a)(2): Addresses the operating limitations for aircraft having experimental certificates. It provides that:

(a) No person m ay operate an aircraft that has an experimental certificate—

(1) For other than the purpose for which the certificate was issued; or

(2) Carrying persons or property for compensation or hire.

Section 119.5(g): This provision addresses certifi cations, authorizations, and prohibitions. It prescribes, in pertinent part, that no person may operate as a direct air carrier or as a commercial operator without, or in violation of, an appropriate certificate and appropriate2

operations specifications. No person may operate as a direct air carrier or as a commercial operator in violation of any deviation or exempti on authority, if issued to that person or that person's representative.

Section 119.21(a) prescribes, in pertinent part, that:

(a) Each person who conducts airplane operations as a com mercial operator engaged in intrastate common carriage of persons or property for compensation or hire in air commerce, or as a direct air carrier, shall comply with the certification and operations specifications requirements in subpart C of this part.

The petitioner supports its request with the following information:

The petitioner believes that the FAA made several important factual errors and did not correctly interpret and apply a law, regulation, or precedent in consideration of its initial petition to amend its exemption to add the McDonnell Douglas F-4 Phantom (NX749CF), McDonnell Douglas TA-4J Skyhawk (NX524CF) , Classic Fighter Me-262 (NX262AZ), and Fieseler Fi-156 Storch (NX156C) to the current list of aircraft operated under Exemption No. 65.40. The FAA denied the petition on the basis th at these aircraft were not historically significant. The petitioner states that the policy for Exemptions for Passenger Carrying Operations conducted for Compensation and Hire in Other Than Standard Category Aircraft (71 FR 15087) does not exclude the petitioner from adding these aircraft to its exemption as

historical aircraft.

The petitioner contends that the Me-262 and Fi-156 are historically significant to the U.S. and the world’s aeronautical history. The petitioner references the U.S. Army Air Forces use of the Me-262’s technology to create the first generation of post World War II swept wing fighters (e.g. the legendary F-86 Saber). The petitioner also references that the Fi-156 was used during World War II to rescue Benito Mussolini, the Fascist Italian leader, from a mountaintop where he was held by allied troops. Moreover, the petitioner states that even though these aircraft were not U.S. manufactured, they are both on display in prominent U.S. museums. The petitioner notes that the Fi-156 is one of the few foreign aircraft on display at the National Museum of the United States Air Force. The petitioner also notes that an original Me-262 is on display at the National Museum of the United States Air Force and the National Air and Space Museum.

The petitioner recognizes that the Me-262 it seeks to add to its exemption is not an original Me-262 but rather a replica of this historical aircraft. The petitioner states, however, that the FAA’s policy does not exclude replica aircraft from exemption. The petitioner cites the policy section stating, “...Aircraft holding any category of airworthiness certificate issued under 14 CFR part 21 may be considered for an exemption to provide living history flight experiences.” Additionally the petitioner notes that the FAA has issued exemptions for other aircraft that are replicas, such as a Ryan NYP and a Wright B Model.

The petitioner contends that the egress systems of the F-4 and TA-4 should not exclude them from exemption. The petitioner believes that the policy allows for these aircraft to be3

considered. The petitioner states that Collings maintains the egress systems of these aircraft to both the manufacturers’ and military’s standards. Collings has an FAA approved inspection program, inspection sheets, and conducts 100-hour inspections. Regarding the context of applicant aircraft from foreign manufacturers, the petitioner believes that end user agreements associated with these aircraft significantly eliminate a market for them. The petitioner notes that Collings is operating only U.S. manufactured turbojet and egress equipped aircraft.

The petitioner summarizes its petition with the inclusion of two appendices of documentation to support its claim of equivalent level of safety. These appendices included, among other things, copies of the aircrafts’ airworthiness certificates and corresponding operating limitations, as well as copies of Collings’ training programs for the F-4 and TA-4. The petitioner acknowledges these documents were not included in its original petition, because it was not understood that they needed to be included in their entirety. The petitioner explains that because it was granted similar exemptions in the past, it incorrectly assumed that it did not need to include this information in its petition.

The FAA has determined that good cause exists for waiving the requirement for Federal Register publication because any delay in acting on this petition would be detrimental to Collings.

The FAA's analysis is as follows:

In order to facilitate the timely issuance of the exemption for the F-4, A-4, and the Fiesler Storch, the FAA has determined that it is necessary to separate the ME-262 and address theME-262 as a separate issue due to the need for additional information concerning the ME262. The FAA is currently researching the construction, maintenance, and operational history of the Collings ME-262 replica. Upon receipt of this additional information from Collings the FAA will review the exemption request for the ME-262.

Collings had included four aircraft in its request that were determined to not meet the requirements for an exemption. The FAA’s “Exemptions for Passenger Carrying Operations Conducted for Compensation and Hire in Other Than Standard Category Aircraft” (72 FR 57196; 10/09/07) policy states that aircraft must m eet the test of being historically significant in the context of U.S. aeronautical history. After reviewing the additional information provided by Collings in support of the petition for reconsideration, the FAA has determined the Fi-156 qualifies as a historically significan t aircraft based on the following analysis:

The Fieseler Fi-156 Storch is a World War II German reconnaissance aircraft that represents a significant shift in technology that was being applied to WW II observation aircraft. Much of this technology is still used on modern aircraft. Therefore, the petitioner’s request to include the Fieseler Co. Fi-156 Storch in this exemption is granted. All operations must be conducted in accordance with the conditions and limitations listed in this exemption.4

In regards to the McDonnell Douglas F-4 Phantom and the McDonnell Douglas TA-4J, the

FAA has determined that both aircraft meet the historically significant test. In addition, the FAA has considered the supplemental information provided by Collings and has determined that the enhanced training and ejection seat criteria submitted by Collings is adequate to permit the public to experience flights conducted in accordance with the limitations and conditions of this exemption, provided that passengers are in accordance with the passenger briefing requirements of 14 C.F.R. §135.117 and are also informed before the flight on the medical hazards that may result from possible ejection. Collings has operated the F-4 and TA-4 egress equipped “fast jets” over 10 years with continuous safe maintenance, training, and flight operation. Furthermore, Collings is the only operator of U.S.-manufactured egress equipped aircraft that maintains seats to military standards and component expiration dates. The ejection seat criteria and training programs submitted by Collings are incorporated into the limitations and conditions of this exemption. Therefore the petitioner’s request to add the F-4 and the TA-4J in this exemption is granted. The FAA notes, however, that in accordance with the conveyance of these aircraft, the U.S. is absolved from all liability in Collings’ use of these aircraft. See Public Law No. 105-261, 106-398.

The FAA’s Decision

In consideration of the foregoing, I find that a grant of petition for reconsideration is in the public interest. The FAA has determined that the justification for the issuance of Exemption No. 6540, as amended, remains valid with respect to this exemption. Therefore, pursuant to the authority contained in 49 U.S.C. §§ 40113 and 44701 the Collings Foundation is granted an exemption from §§ 91.315, 91.319(a), 119.5(g), and 119.21(a) of Title 14, Code of Federal Regulations to allow Collings to operate its Bell UH-1 (UH-1), Boeing B-17 (B17), Consolidated B-24 (B-24), Fieseler Co. Fi-156 Storch, Grumman TBM (G-TBM), McDonnell Douglas F-4 Phantom, McDonnell Douglas TA-4J Skyhawk, and North American B-25 (B-25) for the purpose of carrying passengers for compensation or hire on local flights for educational and historical purposes, subject to the conditions and limitations listed below.

Conditions and Limitations

1. This exemption applies only to the aircraft listed below: a. Boeing B-17, N93012; b. Consolidated B-24, N224J; c. North American B-25, N3476G; d. McDonnell Douglas F-4 Phanton, N746CF e. McDonnell Douglas TA-4J, N524CF. f. Grumman TBM, N9590Z g. Fieseler Co. Storch, N156FC h. Bell UH-1, 911KK

2. Collings must maintain its B-17 in accordance with the: a. Maintenance requirements as specified in the B-17 type specification sheet, as amended;5

b. FAA-approved maintenance inspection program that meets the requirements of § 91.409(e), (f)(4), and (g); and c. B-17 military technical manuals.

3. Collings must maintain its B-24 in accordance with the: a. Maintenance requirements as specified in its B-24 operating limitations, as amended; b. FAA-approved maintenance inspection program that meets the requirements of § 91.409(a) and (b); and c. B-24 military technical manuals.

4. Collings must maintain its B-25 in accordance with the: a. Maintenance requirements as specified in the B-25 type specification sheet, as amended; b. FAA-approved maintenance inspection program that meets the requirements of § 91.409(e), (f)(4), and (g); and c. B-25 military technical manuals.

5. Collings must maintain its F-4 in accordance with the: a. Maintenance requirements as specified in its F-4 operating limitations, as amended; b. FAA-approved maintenance inspection program that meets the requirements of § 91.409(e), (f)(4), and (g); c. F-4 military technical manuals, and d. All aircraft systems and components must be maintained in accordance with manufacturers and US government inspection, maintenance, overhaul, and life limits.

6. Collings must maintain its A-4 in accordance with the: a. Maintenance requirements as specified in its A-4 operating limitations, as amended; b. FAA-approved maintenance inspection program that meets the requirements of § 91.409(e), (f)(4), and (g); and c. A-4 military technical manuals. d. All aircraft systems and components must be maintained in accordance with manufacturers and US government inspection, maintenance, overhaul, and life limits.

7. Collings must maintain its G-TBM in accordance with the: a. Maintenance requirements as specified in its G-TBM operating limitations, as amended; b. FAA-approved maintenance inspection program that meets the requirements of § 91.409(a) and (b); and c. G-TBM military technical manuals.

8. Collings must maintain its Storch in accordance with the:6

a. Maintenance requirements as specified in its operating limitations, as amended; b. FAA-approved maintenance inspection program that meets the requirements of § 91.409(a) and (b); and

c. Storch technical manuals. d. All aircraft systems and components must be maintained in accordance with manufacturers and government inspection, maintenance, overhaul, and life limits.

9. Collings must maintain its Bell UH-1 in accordance with the: a. Maintenance requirements as specified in its Bell UH-1 operating limitations, as amended; b. FAA-approved maintenance inspection program that meets the requirements of § 91.409(f) (4) and (g); and c. Bell UH-1 military technical manuals.

10. The pilot in command (PIC) for the B-17, B-24, and B-25 must: a. Hold at least a commercial pilot certificate with an aircraft multiengine land rating, an airplane instrument rating, and the appropriate type rating; b. Have completed within the previous 12 calendar months, Collings’ PIC qualification and recurrent flight and ground training program in each aircraft for which PIC privileges are sought; c. Have completed within the previous 12 calendar months, Collings’ PIC proficiency check in each aircraft for which PIC privileges are sought; d. Have at least a total of 2,500 hours of aeronautical flight experience, 1,000 hours of aeronautical flight experience in multiengine land airplanes and 25 hours in the specific aircraft; or have at least a total of 1,000 hours of aeronautical flight experience, 200 hours of aeronautical flight experience in a multiengine land airplane, and 100 hours and 50 takeoffs and 50 landings in the specific aircraft; and e. Have accomplished within the previous 90 days, three takeoffs and three landings to a full stop in each aircraft for which PIC privileges are sought. For initial PIC qualification in the specific aircraft or if the pilot has allowed his/her takeoff and landing currency to lapse in the specific aircraft, the takeoff and landing currency may not be accomplished during passenger-carrying operations.

11. The pilot in command (PIC) for the F-4, and A-4 must: a. Hold at least a commercial pilot certificate with an airplane multiengine land rating, an airplane instrument rating, and the appropriate experimental aircraft authorization; b. Have completed within the previous 12 calendar months, Collings’ PIC qualification and recurrent flight and ground training program in each aircraft for which PIC privileges are sought; c. Have completed within the previous 12 calendar months, Collings’ PIC proficiency check in each aircraft for which PIC privileges are sought;7

d. Have at least a total of 2,500 hours of aeronautical flight experience, 1,000 hours of aeronautical flight experience in multiengine land airplane and 25 hours in the specific aircraft; or have at least a total of 1,000 hours of aeronautical flight experience, 200 hours of aeronautical flight experience in a multiengine land airplanes, and 100 hours and 50 takeoffs and 50 landings in the specific aircraft; and e. Have accomplished within the previous 90 days, three takeoffs and three landings to a full stop in each aircraft for which PIC privileges are sought. For initial PIC qualification in the specific aircraft or if the pilot has allowed his/her takeoff and landing currency to lapse in the specific aircraft, the takeoff and landing currency may not be accomplished during passenger-carrying operations.

12. The PIC for the G-TBM must: a. Hold at least a commercial pilot certificate with an aircraft single-engine land rating and an airplane instrument rating; b. Have completed within the previous 12 calendar months, Collings’ PIC qualification and recurrent flight and ground training program in the G-TBM; c. Have completed within the previous 12 calendar months, Collings’ PIC proficiency check in the G-TBM; d. Have at least a total of 2,500 hours of aeronautical flight experience, 1,000 hours of aeronautical flight experience in single-engine land airplanes and 25 hours in the G- TBM; or have at least a total of 1,000 hours of aeronautical flight experience, 200 hours of aeronautical flight experience in a single-engine land airplane, and 100 hours and 50 takeoffs and 50 landings in the G-TBM; and e. Have accomplished within the previous 90 days, three takeoffs and three landings to a full stop in the G-TBM. For initial PIC qualification in the G-TBM or if the pilot has allowed his/her takeoff and landing currency to lapse in the G-TBM, the takeoff and landing currency may not be accomplished during passenger-carrying operations.

13. The PIC for the Storch must: a. Hold at least a commercial pilot certificate with an airplane single-engine land rating and an aircraft instrument rating; b. Have completed within the previous 12 calendar months, Collings’ PIC qualification and recurrent flight and ground training program in the Storch; c. Have completed within the previous 12 calendar months, Collings’ PIC proficiency check in the Storch; d. Have at least a total of 2,500 hours of aeronautical flight experience, 1,000 hours of aeronautical flight experience in single-engine land airplanes and 25 hours in the Storch or have at least a total of 1,000 hours of aeronautical flight experience, 200 hours of aeronautical flight experience in a single-engine land airplanes, and 100 hours and 50 takeoffs and 50 landings in the Storch; and e. Have accomplished within the previous 90 days, three takeoffs and three landings to a full stop in the Storch. For initial PIC qualification in the Storch or if the pilot has allowed his/her takeoff and landing currency to lapse in the Storch, the8

takeoff and landing currency may not be accomplished during passenger-carrying operations.

14. The PIC for the Bell UH-1 must: a. Hold at least a commercial pilot certificate with a rotorcraft helicopter rating. b. Have completed within he previous 12 calendar months, Collings’ PIC qualification and recurrent flight and ground training program in the Bell UH-1; c. Have completed within the previous 12 calendar months, Collings’ PIC proficiency check in the Bell UH-1; d. Have at least a total of 2,500 hours of aeronautical flight experience, 1,000 hours of aeronautical flight experience in helicopters, and 25 hours in the Bell UH-1; or at least a total of 1,000 hours of aeronautical flight experience, 200 hours of aeronautical flight experience in helicopters, and 100 hours and 50 takeoffs and 50 landings in the Bell UH-1; and e. Have accomplished within the previous 90 days, three takeoffs and three landings to a full stop in the Bell UH-1. For initial PIC qualification in the Bell UH-1 or if the pilot has allowed his/her takeoff and landing currency to lapse in the Bell UH-1, the takeoff and landing currency may not be accomplished during passenger-carrying operations.

15. The second in command (SIC) for the B-17, B-24, or B-25 must: a. Hold at least a commercial pilot certificate with an airplane multiengine land rating and an airplane instrument rating; b. Have completed within the previous 12 calendar months, Collings’ SIC qualification and recurrent flight and ground training program in the aircraft for which SIC privileges are sought; c. Have completed within the previous 12 calendar months, Collings’ SIC proficiency check in each aircraft for which SIC privileges are sought; d. Have at least a total of 1,500 hours of aeronautical flight experience, 250 hours of aeronautical flight experience in a multiengine land airplanes; or have at least a total of 500 hours of aeronautical flight experience, 100 hours of aeronautical flight experience in a multiengine land airplanes, and 25 hours and 10 takeoffs and 10 landings in each aircraft for which SIC privileges are sought; and e. Have accomplished within the previous 90 days, three takeoffs and three landings to a full stop in the aircraft for which SIC privileges are sought. For initial SIC qualification in the specific aircraft or if the pilot has allowed his/her takeoff and landing currency to lapse in the specific aircraft, the takeoff and landing currency may not be accomplished during passenger-carrying operations.

16. Collings must develop and maintain written B-17, B-24, and B-25 qualification and recurrent ground training programs for its PICs and SICs in the B-17, B-24, and B-25 that cover the training subjects listed below. Each PIC and SIC in the B-17, B-24, and B-25 must receive the following training within the previous 12 calendar months and be found to be9

competent and proficient in these areas prior to serving in a PIC or SIC position in the B-17, B-24, and B-25:

REQUIRED TRAINING TASKS a. General information and description of the aircraft; 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 systems; k. Propeller; l. Emergency procedures, including— (i) Instruction in emergency assignments and procedures, including coordination among ground and flight crewmembers; (ii) Individual instruction in the location, function, and operation of emergency equipment, including— A. First aid equipment and its proper use; and B. Portable fire extinguishers, with emphasis on the type of extinguisher to be used on different classes of fires; (iii) Instruction in the handling of emergency situations, including— A. Fire in flight or on the surface and smoke control procedures with emphasis on electrical equipment and related circuit breakers found in cabin areas; and B. Illness, injury, or other abnormal situations involving passengers or crewmembers; m. Weight and balance; n. Performance planning; o. Aircraft's checklist; and p. Differences in type.

17. Collings must develop and maintain written F-4 and A-4 qualification and recurrent ground training programs for its PICs in the F-4 and A-4 that cover the training subjects listed below. Each PIC in the F-4 and A-4 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 in the F-4 and A-4:

REQUIRED TRAINING TASKS a. General information and description of the aircraft; b. Aircraft limitations; c. Aircraft servicing;10

d. Airspeeds; e. Fuel system; f. Electrical system; g. Hydraulic system; h. Engines; i. Instruments and avionics; j. Landing gear, brakes, controls, and flaps systems; k. Propeller; l. Emergency procedures, including— (i) Instruction in emergency assignments and procedures, including coordination among ground and flight crewmembers; (ii) Individual instruction in the location, function, and operation of emergency equipment, including— A. First aid equipment and its proper use; and B. Portable fire extinguishers, with emphasis on the type of extinguisher to be used on different classes of fires; (iii) Instruction in the handling of emergency situations, including— A. Fire in flight or on the surface and smoke control procedures with emphasis on electrical equipment and related circuit breakers found in cabin areas; and B. Illness, injury, or other abnormal situations involving passengers or crewmembers; m. Weight and balance; n. Performance planning; o. Aircraft's checklist; and p. Differences in type. q. Ejection seat characteristics, hazards, and safety precautions

18. Collings must develop and maintain a written G-TBM qualification and recurrent ground training program for its PICs in the G-TBM that covers the training subjects listed below. Each PIC in the G-TBM 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 the G-TBM:

REQUIRED TRAINING TASKS a. General information and description of the aircraft; b. Aircraft limitations; c. Aircraft servicing; d. Airspeeds; e. Fuel system; f. Electrical system; g. Hydraulic system; h. Engines; i. Instruments and avionics;11

j. Landing gear, brakes, controls, and flaps systems; k. Propeller; l. Emergency procedures, including— (i) Instruction in emergency assignments and procedures, including coordination among ground and flight crewmembers; (ii) Individual instruction in the location, function, and operation of emergency equipment, including— A. First aid equipment and its proper use; and B. Portable fire extinguishers, with emphasis on the type of extinguisher to be used on different classes of fires; (iii) Instruction in the handling of emergency situations, including— A. Fire in flight or on the surface and smoke control procedures with emphasis on electrical equipment and related circuit breakers found in cabin areas; and B. Illness, injury, or other abnormal situations involving passengers or crewmembers; m. Weight and balance; n. Performance planning; and

o. Aircraft's checklist.

19. Collings must develop and maintain a written Storch qualification and recurrent ground training program for its PICs in the Storch that covers the training subjects listed below. Each PIC in the Storch 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 the Storch:

REQUIRED TRAINING TASKS a. General information and description of the aircraft; 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 systems; k. Propeller; l. Emergency procedures, including— (i) Instruction in emergency assignments and procedures, including coordination among ground and flight crewmembers; (ii) Individual instruction in the location, function, and operation of emergency equipment, including— A. First aid equipment and its proper use; and12

B. Portable fire extinguishers, with emphasis on the type of extinguisher to be used on different classes of fires; (iii) Instruction in the handling of emergency situations, including— A. Fire in flight or on the surface and smoke control procedures;

and B. Illness, injury, or other abnormal situations involving passengers or crewmembers; m. Weight and balance; n. Performance planning, and

o. Aircraft's checklist.

20. Collings must develop and maintain a written Bell UH-1 qualification and recurrent ground training program for its PICs in the Bell UH-1 that covers the training subjects listed below. Each PIC in the Bell UH-1must 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 the Bell UH-1:

REQUIRED TRAINING TASKS a. General information and description of the aircraft; b. Aircraft limitations; c. Aircraft servicing; d. Airspeeds; e. Fuel system; f. Electrical system; g. Hydraulic system; h. Engine; i. Instruments and avionics; j. Flight control system; k. Rotors; l. Emergency procedures, including— (i) Instruction in emergency assignments and procedures, including coordination among ground and flight crewmembers; (ii) Individual instruction in the location, function, and operation of emergency equipment, including— A. First aid equipment and its proper use; and B. Portable fire extinguishers, with emphasis on the type of extinguisher to be used on different classes of fires; (iii) Instruction in the handling of emergency situations, including— A. Fire in flight or on the surface and smoke control procedures with emphasis on electrical equipment and related circuit breakers found in cabin areas; and B. Illness, injury, or other abnormal situations involving passengers or crewmembers; m. Weight and balance;13

n. Performance planning; o. Aircraft checklist; and p. Differences in each model.

21. 21. Collings must develop and maintain written B-17, B-24, and B-25 qualification and recurrent flight training programs for its PICs in the B-17, B-24, and B-25 that cover the areas of operations and tasks, as listed in the following table of training tasks. Each PIC in the B-17, B-24, and B-25 must successfully accomplish this training before being assigned PIC responsibilities and duties. Each PIC in the B-17, B-24, and B-25 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 serving in a PIC position in the B-17, B-24, and B-25 for Collings:

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 powerplant 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 appropriate and if equipped);14

(vi) Fire detection & extinguishing system; (vii) Navigation & avionics system; (viii) Automatic flight control system, electronic flight instrument system, & related systems (as appropriate and if equipped); (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 equipped 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.

22. Collings must develop and maintain written F-4 and A-4 qualification and recurrent flight training programs for its PICs in the F-4 and A-4 that cover the areas of operations and tasks, as listed in the following table of training tasks. Each PIC in the F-4 and A-4 must successfully accomplish this training before being assigned PIC responsibilities and duties. Each PIC in the F-4 and A-4, 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 serving in a PIC position in the F-4 and A-4 for Collings:

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; and15

(iv) Specific flight characteristics; e. Landings & Approaches to Landing, including— (i) Normal & crosswind approaches & landing; (ii) Maneuvering to a landing with a simulated powerplant 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 appropriate 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 equipped); (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 equipped with a pressurization system); (iii) Emergency descent; (iv) Ditching; and (v) Emergency evacuation; (vi) Ejection seat usage, safety, and hazards (crew, passenger, ground personnel, and general public) h. Post flight Procedures, including— (i) After landing procedures; and (ii) Parking and securing aircraft.

23. Collings must develop and maintain a written G-TBM qualification and recurrent flight training program for its PICs in the G-TBM that covers the areas of operations and tasks, as listed in the following table of training tasks. Each PIC in the G-TBM must successfully accomplish this training before being assigned PIC responsibilities and duties. Each PIC in the G-TBM 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 serving in a PIC position in the G-TBM:

REQUIRED TRAINING TASKS a. Preflight Preparation, including— (i) Aircraft exam (oral or written); and16

(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 powerplant 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 system (as appropriate 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 equipped); (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) Emergency descent; (iii) Ditching; and (iv) Emergency evacuation; h. Post flight Procedures, including— (i) After landing procedures; and (ii) Parking and securing aircraft.17

24. Collings must develop and maintain a written Storch qualification and recurrent flight training program for its PICs in the Storch that covers the areas of operations and tasks, as listed in the following table of training tasks. Each PIC in the Storch must successfully accomplish this training before being assigned PIC responsibilities and duties. Each PIC in the Storch 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 serving in a PIC position in the Storch:

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 powerplant 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 system (as appropriate 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 equipped); (ix) Flight control system; (x) Anti-ice & de-ice system; and18

(xi) Aircraft & personal emergency equipment; g. Emergency Procedures, including— (i) In-flight fire & smoke removal; (ii) Emergency descent; (iii) Ditching; and (iv) Emergency evacuation; h. Post flight Procedures, including— (i) After landing procedures; and (ii) Parking and securing aircraft.

25. Collings must develop and maintain a written Bell UH-1 qualification and recurrent flight training program for its PICs in the Bell UH-1 that covers the areas of operations and tasks, as listed in the following table of training tasks. Each PIC in the Bell UH-1 must successfully accomplish this training before being assigned PIC responsibilities and duties. Each PIC in the Bell UH-1must 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 serving in a PIC position in the Bell UH-1:

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) Hover 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) Powerplant failure; and (iii) Specific flight characteristics; e. Landings & Approaches to Landing, including— (i) Normal &crosswind approaches & landing; (ii) Steep approaches; (iii) Rejected landing; and (iv) Autorotations; f. Normal & Abnormal Procedures, including— (i) Powerplant; (ii) Fuel system;19

(iii) Electrical system; (iv) Hydraulic system; (v) Environmental system (as appropriate 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 equipped); (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) Emergency descent; (iii) Ditching; and (iv) Emergency evacuation; h. Post flight Procedures, including— (i) After landing procedures; and (ii) Parking and securing aircraft.

26. Collings must develop and maintain written B-17, B-24, and B-25 qualification and recurrent flight training programs for its SICs in the B-17, B-24, and B-25 that covers the areas of operations and tasks, as listed in the following table of training tasks. Each SIC in the B-17, B-24, and B-25 must successfully accomplish this training before being assigned SIC responsibilities and duties. Each SIC in the B-17, B-24, and B-25 must receive and successfully accomplish the following training within the previous 12 calendar months and befound to be competent and proficient inthese areas priorto serving inanSIC position in the B17, B-24, and B-25 for Collings:

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

35. Aircraft specific limitations: For the B-17, B-24, B-25, G-TBM, and UH-1: Collings may not use a pilot nor may any pilot serve as a pilot in any aircraft unless since the beginning of the 12th calendar month before that service, that pilot has passed a competency check given by the FAA or an authorized check pilot in that20

aircraft to determine the pilot's competence in practical skills and techniques in the appropriate aircraft. The competency check will consist of the appropriate maneuvers and procedures currently required for the original issuance of the commercial pilot certificate. The FAA's North Florida Flight Standards District Office (FSDO) will determine what maneuvers and procedures are critical, such as preflight preparation, ground operations, takeoffs and departures, and normal procedures, etc., and maneuvers and procedures that may be unsafe for a particular aircraft.

For the F-4, A-4 and Storch: Collings may not use a pilot nor may any pilot serve as a pilot in any aircraft unless since the beginning of the 12 th calendar month before that service, that pilot has passed a competency check given by the FAA or an authorized check pilot in that aircraft to determine the pilot's competence in practical skills and techniques in the appropriate aircraft. The competency check will consist of the appropriate maneuvers and procedures currently required for the original issuance of the commercial pilot certificate. The FAA's Houston, TX, Flight Standards District Office (FSDO) will determine what maneuvers and procedures are critical, such as preflight preparation, ground operations, takeoffs and departures, and normal procedures, etc., and maneuvers and procedures that may be unsafe for a particular aircraft. The check pilot authorized to conduct F-4, and A-4 checks must be approved by the Houston FSDO and must be concurred with by the FAA General Aviation and Commercial Division, AFS-800, Washing ton, DC.

27 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 preceding 12 calendar months may be substituted for recurrent flight training.

28. Aircraft Specific Limitations:

For the B-17, B-24, B-25, G-TBM, and UH-1: Collings must document and record all ground and flight training and/or testing required by this grant of exemption in a manner acceptable to the FAA's North Florida 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 flight training given; d. The amount of time of each session of ground and flight testing given; The results of each session of ground and flight testing given; e. Location where each session of ground and flight training was given; f. Location where each session of ground and flight testing was given; g. The aircraft identification number in which each flight training session was received;21

h. The aircraft identification number in which each flight testing session was received; i. The name and certificate number of the pilot who provided each session of training; j. The name and certificate number of the pilot who provided each session of testing; k. The signature and printed name of the pilot who received the training. That pilot's signature will serve as a verification of having received each session of training; and l. The signature and printed name of the pilot who received the testing. That pilot's signature will serve as a verification of having received each session of testing.

For the F-4, A-4 and the Storch: Collings must document and record all ground and flight training and/or testing required by this grant of exemption in a manner acceptable to the FAA's Houston, TX 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 flight training given; d. The amount of time of each session of ground and flight testing given; e. Location where each session of ground and flight training was given; f. Location where each session of ground and flight testing was given; g. The aircraft identification number in which each flight training session was

received; h. The aircraft identification number in which each flight testing session was

received; i. The name and certificate number of the pilot who provided each session of

training; j. The name and certificate number of the pilot who provided each session of

testing; k. The signature and printed name of the pilot who received the training. That

pilot's signature will serve as a verification of having received each session of training; and l. The signature and printed name of the pilot who received the testing. That

pilot's signature will serve as a verification of having received each session of testing.

29. Aircraft specific limitations: For the B-17, B-24, B-25, and G-TBM: When requested, Collings’ pilot qualification and recurrent ground and flight training programs and/or records listed under the conditions of this exemption must be made

available to the North Florida FSDO.

For the F-4, A-4, and Storch:22

When requested, Collings’ pilot qualification and recurrent ground and flight training programs and/or records listed under the conditions of this exemption must be made available to the Houston, TX, FSDO.

30. Collings must have the services of an FAA-certificated airframe and powerplant mechanic or an appropriately rated repair station available at all stopovers to perform all required maintenance inspections and repairs.

31. Collings will maintain the following information and records and will make those records available for review to the FAA when requested: a. The name of each pilot crewmember Collings authorizes to conduct flight operations in its aircraft under the terms of this exemption; b. Copies of each PIC's and SIC's pilot certificate, medical certificate, qualifications, and initial and recurrent training and testing documentation. c. Records of maintenance performed and maintenance inspection records as appropriate. Maintenance and inspection records must meet the requirements of §§ 91.405, 43.9, and 43.11.

32. Before permitting a person to be carried on board its aircraft for the purposes authorized under this exemption, Collings will inform that person that its aircraft 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 from the requirements of §§ 91.315, 91.319, 119.5(g), and 119.21(a). The explanation of the significance of a limited ai rworthiness certificate, or experimental airworthiness certificate compared to a standard airworthiness certificate must include at least the following information: a. The FAA has not established nor has it approved limited category

airworthiness certificated aircraft manuf acturing standards. The FAA has not established nor has it approved experimental category airworthiness certificated aircraft manufacturing standards. In c ontrast, standard category airworthiness

certificated aircraft are manufactured to FAA-approved standards, including standards addressing the design of the aircraft and life-limited parts; b. Limited category airworthiness certificated aircraft are issued when the FAA

finds the aircraft— i. Has been previously issued a limited category type certificate and the aircraft conforms to that type certificate; and ii. To be in a good state of preservation and repair and is in a safe operating condition; c. An aircraft may be issued an experimental airworthiness certificate for the purpose of exhibition when the aircraft is intended only for exhibition of the aircraft's flight capabilities, performance, or unusual characteristics at airshows, motion picture, television, and similar productions and the maintenance of exhibition flight proficiency, including (for persons exhibiting the aircraft) flying to and from such airshows and productions; and23

d. Standard category airworthiness certificates are issued for an aircraft when the

FAA finds the—

i. Aircraft has been built and maintained in accordance with that aircraft's type certification standards as established by the FAA; and ii. Aircraft's inspection and maintenance requirements are in compliance with the applicable Federal Aviation Regulations. e. For flights conducted in the F4 and TA-4, the PIC must all inform the passengers of the medical risks associated with possible ejection, and that flight in these aircraft may not be appropriate for persons with a history of neck or back problems.

33. Collings must notify the FSDO with oversight of the specific aircraft within 24 hours 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 requires activation of any fire suppression system or discharge of a portable fire extinguisher; b. Each exhaust system component failure, including the turbocharger (supercharger) components, that causes damage to any engine, structure, cowling, or

components; c. Each aircraft component or system that causes, during flight, accumulation or circulation of noxious fumes, smoke, or vapor in any portion of the cabin or crew area d. Except for training, each occurrence of engine shutdown or propeller feathering, and the reason for such shutdown or feathering; e. Each failure of the propeller governing systems or feathering systems; f. Any landing gear system or component failures or malfunctions, which require use of emergency or standby extension systems; g. Each failure or malfunction of the wheel brake system that causes loss of brake control on the ground; h. Each aircraft 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, tanks, pumps, or valves; j. Each malfunction, failure, or defect in any system or component that requires taking emergency action of any type during the course of any flight; and k. For the purpose of this section, "during flight" means the period from the

moment the aircraft leaves the surface of the earth on takeoff until it touches down on landing.

34. 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, as established in the American Air Almanac, as converted to local time; c. Within a 25-statute-mile radius of the departure airport 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;24

e. Passenger-carrying operations for compensation may be conducted at distance greater than 25 statute miles of the departure airport up to 50 statute miles with concurrence of the FAA FSDO having geographic responsibility for the aviation event. For such flights, landings are only permitted at the departure airport. The operator must provide information pertaini ng to the proposed route of flight, which must avoid densely populated areas or congested airways in accordance with § 91.319(c) for aircraft certificated in the experimental category. Those operators utilizing aircraft certificated in the limited category are not bound by the restriction regarding the avoidance of densely populated areas or congested airways; f. For passenger-carrying flights greater than 25 statute miles from the departure airport and up to 50 statute miles, the PIC must obtain weather reports and forecasts prior to flight and valid for the duration of the proposed operation that indicate that the weather would be no less than 5 statute miles visibility and cloud ceilings no less than, 1000 feet AGL. Passenger-carrying operations shall be terminated if ceiling and visibility become less than the minimum required by these conditions and limitations. Weather forecasts listing discriminators such as probability (PROB), becoming (BECOMG), or temporarily (TEMPO) shall be limiting; and g. The aircraft other than the F-4 and A-4 may only be operated from an airport that has a fire station or fire-fighting serv ices available or within close proximity of the airport. h. Operations of the F-4 and A-4 are only permitted at airports with operational arresting systems. i. Operations of the F-4 and A-4 are only permitted at airports with airport crash fire rescue stations that have been trained by Collings on the hazards and safety issues of the installed ejection seats.

35. For all aircraft subject to this exemption, f light within 500 feet of another aircraft (i.e., formation flying) is prohibited. In addition, the PIC is prohibited from performing aerobatic flights while passengers are onboard the aircraft.

36. Prior to flight, the PID must conduct a passenger briefing in accordance with 14 C.F.R. § 135.117.

37. No persons other than the assigned flight crewmembers may be permitted on the pilot station of the aircraft during flight operations.

38. No persons other than the assigned flight crewmembers may be permitted manipulate the flight controls during flight operations.

39. Except for essential crewmembers, all flight operations must carry no more than the maximum number of passengers permitted by the aircraft's weight and balance limitations and number of approved seats in the aircraft.25

40. All aircraft must have the equipment listed in §§ 91.205(b) and 91.207 and that equipment must be in an operable condition during the flight.

41. Collings must hold and continue to hold a determination 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 Internal Revenue Code.

42. Collings must notify the North Florida or Houston, Texas FSDO, as appropriate, at least 5 working days (Mondays through Fridays) before conducting any PIC or SIC initial or 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.

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

FAA FSDO.

44. Failure to comply with any of the conditions and limitations of this grant of exemption will be grounds for the immediate suspension or revocation of Exemption No. 6540, as

amended.

45. Additional Training Requirements for TA-4 and F-4 aircraft: Passengers must satisfactorily complete the appropriate secti ons of the TA-4 Skyhawk-Escape IG3 Ejection Seat Training or F-4-Ground Training Egress System , and the results of this training must be recorded prior to operation.

46. Collings must develop a continuous analysis and management program for all aircraft subject to this exemption that ensures compliance with its inspection program, training program, and conditions and limitations of this exemption.

The Effect of Our Decision

This exemption terminates on May 31, 2012, unless sooner superseded or rescinded.

Issued in Washington, DC, on May 7, 2010.

/s/

John W. McGraw Acting Director, Flight Standards

Service