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Exemptio nNo . 3438 A UNITE D STATE S OF

- AMERIC A• DEPARTMEN T O F TRANSPORTATIO N FEDEPA L AVIATIO NADMINISTRATIO N WASHINGTON , D.C . 2 0 59 1

I nth e matte r o f th e petitio no f EXECUTIV E AI RFLEE T CORPORATIO N* Regulator yDocke t * No . 2227 0 - fo r a nexemptio nfro mSectio n* 135.25(b ) an d(c ) o f th e Federa l * ' Aviatio nRegulation s *

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. kk-k-k * GRAN T O F EXEMPTIO N B ylette r date dFebruar y2 , 1982 , Mr . Willia mB . Watt , Executiv e Ai r Flee t Corporation
. (EAF) , 9 0 Moonachi e Avenue , Teterboro , N.J . 07608 , an dJ . W . Rosenthal , Esq. , Attorney , o f Ginsburg , Feldman , Wei l an dBress , 170 0 Pennsylvani a Avenue , N.W. , Washington , D.C . 20006 , petitione dfo r reconsideratio n o f Denia l o f Exemptio nNo . 343 8 issue dt o EA F o nDecembe r 31 , 1981
. EA F seek s a nexemptio nfro mSectio n135.25(b ) an d(c ) o f th e Federa l Aviatio nRegulation s (FAR ) t o th e exten t necessar yt o allo wpetitione r t o operat e withou t havin g th e exclusiv e us e o f a t leas t on e aircraf t tha t meet s th e requirement s fo r a t leas t on e kin do f operatio nauthorize di n th e certificat e holder' s operation s specifications
. Section s o f th e FARaffected ; Sectio n135.25(b ) provides , i npertinen t part , tha t eac h certificat e holde r mus t hav e exclusiv e us e o f a t leas t on e aircraf t tha t meet s th e requirement s fo r a t leas t on e kin do f operatio nauthorize di nth e certificat e holder' s operation s specifications
. I naddition , fo r eac hkin do f operatio nfo r whic hth e certificat e holde r doe s no t hav e th e exclusiv e us e o f a naircraft , th e certificat e holde r mus t hav e availabl e fo r us e unde r a ' writte nagreemen t (includin g arrangement s fo r performin g require dmaintenance , a t leas t on e aircraf t tha t meet s th e requirement s fo r tha t kin do f operation
. VS-82-140- ESectio n135.25(c ) provides , i npertinen t part , tha t fo r th e purpos e o f th e previousl ymentione dparagraph , a perso nha s exclusiv e us e o f a naircraf t i f tha t perso n ha s th e sol e possession , control , an dus e o f i t fo r flight , a s owner, , o r ha s a writte nagreemen t (includin g arrangement s fo r performin g require dmaintenance) , i n effec t whe nth e aircraf t i s operated , givin g th e .perso n tha t possession , control , an dus e fo r a t leas t 6 consecutiv e months
. Th e petitioner' s supportiv e informatio ni s a s follows : EA F state di nit s origina l petitio ntha t i t i s a Delawar e corporatio nwit hit s principl e plac e o f busines s at

Teterbor o Airport , Teterboro , Ne wJersey . EA F i s a n aircraf t managemen t fir mwhic hals o hold s a certificat e an doperation s specification s issue dunde r Par t 13 5 and , amon g othe r things , conduct s a nai r tax i charte r operatio n unde r a nexemptio nfro mth e Civi l Aeronautic s Boar d(CAB ) pursuan t t o Par t 29 8 o f th e Board' s economi c regulations
. EAF' s principa l busines s i s th e performanc e o f managemen t an dconsultin g service s fo r client s wh o ow nexecutiv e je t aircraft
. Thos e client s includ e corporation s an d individual s wh o us e suc haircraf t fo r th e transportatio n o f thei r owncorporat e executive s o r themselves , a s th e cas e may.be , an dtheir

- guests . Unde r contract s betwee n EA F an dth e owner s o f thes e aircraft , EA F perform s a multitud e o f managemen t advisor yfunction s relate dt o th e owners ' operation.o f suc haircraft
. Thes e function s includ e aircraf t maintenanc e an drecordkeepin g andth e recruitin g andtrainin g o f fligh t crewmembers
. Severa l o f EAF' s presen t client-owner s hav e determine d that , i norde r t o utiliz e thei r aircraf t efficiently , i t woul db e desirabl e t o hav e suc haircraf t chartere dt o thir dpartie s fro mtim e t o time
. I norde r t o accomplis h this , EA F obtaine d- th e certificat e an d operation s specification s referre dt o above
. Unde r it s contract s wit hth e owners , EA F ha s complet e operationa l contro l o f th e aircraf t whe ni t i s bein g operate dunde r a charter , an dth e owne r ha s complet e operationa l contro l (wit hmanagemen t service s performe d byEAF ) whe nth e owne r i s usin g th e aircraf t fo r it s own account . Whe nEA F operate s th e aircraft , th e operatio ni s unde r Par t 135 ; whe nth e owne r operate s th e aircraft , i t i s operate dunde r Par t 9 1 o f th e FAR .Becau£; e it s uniqii e an dhighl yrespecte dtimesharin g an d aircraf t managemen t busines s doe s not , o f itself , giv e EA F th e exclusiv e us e o f on e aircraft , th e compan yha s bee ncompelle dt o purchase , own , an dmaintai na single-engin e Cessn a 15 2 solel yi norde r t o satisf y Sectio n135.25
. I nit s recen t petition , EA F state s tha t i t file dit s origina l petitio nfo r exemptio na s a corollar yt o it s earlie r petitio nfo r rulemakin g {4 6 F R47465 , Septembe r 28 , 1981 ) t o abolis hth e Par t 13 5 exclusive-us e requirement
. EA F emphasize dth e irrelevanc e o f Sectio n 135.2 5 t o th e safet yo f it s operatio ni nvie wo f it s managemen t contract s whic hprovid e fo r th e continuou s maintenanc e o f al l it s manage daircraf t unde r Par t 135.

- I naddition , EA F note dth e outrageou s economi c wast e whic hresulte dfro mEAF' s havin g t o ow nan dmaintai na - • Smal l airplane , whic hi s neve r flown , simpl yt o compl y wit hth e rule
. EAF.state s tha t th e denia l o f exemptio nwa s erroneousl y base do na publi c commen t opposin g th e petitio nfo r rulemakin g andtha t th e commen t i s no t directe dtowar dth e individua l situatio nwhic hEA F cite di nsuppor t o f it s reqries t fo r exemption
. Also , EA F state s tha t th e Federa l Aviatio nAdministratio n(FAA ) faile dt o not e tha t thre e favorabl e publi c comment s wer e submitte dt o suppor t it s petitio nfo r rulemaking
. EA F state s th e denia l o f exemptio ni s fundamentall yinadequat e becaus e th e FA A faile dt o addres s EAF' s uniqu e aircraf t managemen t arrangement s an dtha t forcin g EA F t o ov/ nan dmaintai na n aircraf t whic hi s neve r flownpurel yt o compl ywit h Sectio n135.2 5 i s a noutrageou s economi c waste . Accordingly , EA F strongl ybelieve s tha t a gran t o f exemptio nwil l resul t i na nincreas e i naviatio nsafet y an da reductio ni nth e economi c burde no f governmen t regulation
. Asummar yo f th e EA F petitio nwa s publishe di nth e Federa l Registe r (4 7 F R8721 , Marc h1 , 1982) , andn o publi c comment s wer e received
. Th e FAAanalysis/summar yi s a s follows : Th e EA F petitio nfo r rulemakin g i s identifie da s Docke t No . 22084
. I t i s a separat e rulemakin g actio nunde r Par t 3l~~oT ' th e FARan dshoul dno t hav e anydirec t bearin g o nthi s petitio nfo r exemption
.Th e FA Arecognize s tha t EA F i s uniqu e wit hrespec t t o it s Par t 13 5 operation
. EA F i s primaril yresponsibl e fo r performin g managemen t an d consultan t service s fo r certai n busines s aircraf t owners . Amon g it s contractua l obligations , EA F perform s aircraf t maintenanc e an d recordkeeping , an d the-recruitin g an d trainin g o f flight ' crewmembers
. EA F ha s operationa l contro l o f thes e busines s aircraf t durin g charte r flight s conducte di n accordanc e wit hit s Par t 13 5 certificat e an d operation s specifications
. Th e aircraf t ma yb e .operate dbyEA F unde r Par t 13 5 fo r a fe wday s followe dbya perio do f day s durin g whic hth e sam e aircraf t i s operate dbyth e owne r fo r privat e operation s unde r Par t 91
. Th e FAAfind s tha t th e uniquenes s o f th e EA F operatio n warrant s a gran t o f exemptio nsubjec t t o th e conditio n tha t EA F shal l no t operat e unde r Par t 13 5 anyU.S.

- registere dcivi l airplan e whic hha s a seatin g capacit yo f 2 0 o r mor e passenger s o r a maximu mpayloa dcapacit yo f 6,00 0 pound s o r more , an d use dt o conduc t non-commo n carriag e operation s unde r Par t 125
. Sectio n125.11(b ) state s tha t n o Par t 12 5 certificat e holde r ma yconduc t any operatio nwhic hresult s directl yo r indirectl yfro man y person' s holdin g ou t t o th e publi c t o furnis hai r transportation
. Thus , t o preclud e an ypossibl e mixin g o f Par t 13 5 commo ncarriag e operation s wit hPar t 12 5 non-commo ncarriag e operation s fo r compensatio nan d hire , th e FAAfind s tha t EA F ma yno t operate , o r lis t o n it s Par t 13 5 operation s specifications , an yairplan e whic hi s liste do n th e operation s specification s o f anyPar t 12 5 • certificat e holder
. Th e FA Afind s tha t thi s conditio ni s necessar yin

- th e publi c interes t t o provid e th e highes t leve l o f safet yfo r person s bein g transporte dbyEA F under , it s Par t 13 5 certificat e an d operation s specifications
. I nconsideratio no f th e foregoing , I findtha t a gran t o f exemptio ni s i n th e publi c interest
. Therefore , pursuan t t o th e authorit ycontaine di n Section s 313(a ) an d 601(c ) o f th e Federa l Aviatio nAc t o f 1958 , delegate dt o m e b yth e Administrato r (1 4 CF R11.53) , Executiv e Ai r Flee t Corporatio n i s grante da n exemptio nfro mSectio n135.25(b ) an d (c ) o f th e FA Rt o th e exten t necessar yt o allo wEAF

- t o operat e unde r Par t 13 5 withou t havin g th e exclusiv e us e o f a t leas t on e aircraf t tha t meet s th e requirement s fo r a t leas t on e kin do f operatio nauthorize di n th e EA F operation s specification s subjec t t o th e conditio ntha t EA F shal l no t operat e unde r Par t 13 5 an yairplan e which : 1
. Ha s a seatin g capacit yo f 2 0 o r mor e passengers , o r 2
. Ha s a maximu mpayloa dcapacit yo f 6,00 0 pound s o r more , an d

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