OG/03/201 0 17;0 G FAX 202493514 2 FA A* DM S 21001/02 5



# RECEIVE D U.S . DEPARTMEN T O FTRANSPORTATIO N/iii i « - i o OFFIC EO FHEARING S '^^* ^ " 3 20t0 FEDERA LAVIATIO N ADMINI S 

### I RATIO N 

# HEARIN G DOCKE T FEDERALAVIATIO N ADMiNl S I RATION , Complainant ,

vs . 

### AIRTRA NAIRWAYS , INC . Respondent . FA A Docket No . CP10SO000 2 Judg e Bcnki n

COMPLAlNANT\ S RESPONS ET O PREHEARIN GORDE R^ ^ Complainant , b y an dthroug hth e undersij^c dcounsel , submit s th e followin g Responis c to the Administrativ e La

w Judge' s Prehearin g Order i nthi s mailer . WITNES S LIS T Th e Complainan t

expect s t o cal l th e followin g witnes s t o testif y a t thelhearing : 1 . FA A luspccto r

Thoma s T . Frish e FA A Souther n Regiona l Offic e ASO-230 , 

### Fligh t

Standard s Divisio n- Technica l Branc h 170 1 Columbi aAvenu e Colleg e Park , C A 3033 7 Mr . Frish e i s expecte dt o testif y concernin g FA

A polic y andprocedur e indeterminin g th e amount o f acivi l penalty sanctio na s it relate s t o th e perso no r

entity bein g chaiged , th e allege dFedera l Aviatio nRegulation s violation(s) , an dany mitigatin g o r aggravatin g factors .06/03/201 0 17;0 G FA X 202493514 2 FA A* DM S @l002/02 5



### EXHIBIT S Th e Complainan t

may offe r i nevidenc e durin g th e hearin g th e followin g exhibits : Al . FAA Orde r

2150.3B , Appendi x B - Tabl e o f Sanctions . A2 . DOT' S "Ai r

Carrie r Industry Schedule dServic e Traffi c Statistic s Quanerly. ' A3 . FAA Orde r

2150.3B , Chapter

7 - Sanctio nGuidanc e Policies . Th e Complainan t

ma y als o offe

r i nevidenc e an

y other document s a s necessary an d appropriate fo

r purpose s o f

rebuttal or

impeachment

tha t canno t b e reasonabl y anticipate da t ihi s time . Copie s o f

th e abov e exhibit s are attache dfo r bot hth e Judg e andfor

counse l for Respondent

in accordanc e wit

hth e Prehearin g Order . Respectfully submitte dthi s J" " day o f June , 2010 .

ROBHR T B . DIXO N Allomc y 

### Offic e o f th e Regional Counse l06/03/201 0 17;0 6 FA X 202493514 2 FA A• > DM S @l003/02 5



### CERTIFICAT EO FSERVIC E I hereb y certif

y tha t acop y o f thi s Complainant' s Respons e T o Prehearin g Order wa s sent b y facsimil e andFedE x to : Th e Honorabl e Isaac D . Benlci n DOT , Administrativ e La

w Judg e Office o f Hearings , M-2 0 1200 New Jerse y Avenue , S E Eas t Buildin g Groun dFloo r Roo mEl2-32 0 Washington , D.C . 2059 0 Fa x (202 ) 366-753 0 an d Stephen J . Kolski , Esq . Executiv e Vic e Presiden t

Corporat e Affair s AirTra n Airways , Inc . 995 5 Ai r Tra n Blvd . Orlando , F

L3282 7 Fa x (407 ) 318-590 1 an dth e origina

l an don e cop y vi aFedE x to : Hearin g Docke t

Cler k FAA , AGC-430 , Suite 2WI00 0 Wilbu r Wright Buildin g 800 Independenc e Avenue , S.W . Washington , D.C . 2059 1

Date d06/03/201 0 17:0 6 FA X 202493514 2 FA A* DM S 121004/02 5

10/01/0 7 2150.3 6 Appendi xB Tabl e o f Sanc<ion s A l l Rnforccmcn t Program s Eicep i Hazardou s Material s Par t On e - Al>breviafion s an d Definirion s 1 . Applicabilii yThi s labl e o f sanction j applie s l o violaoon s tha t occurre d o n o rahe r Octobe rI , 200 7 Fo rviolation s occurrin g b<;for e Octobe r1 . 3007 . FA Acnforceiiici n personne l appl y«h e sanctio n gtiid;inc(. - /jnncipk s m TA AOrde r21.S O 3 Au.sin g u p l o (h e siatuioi y maximu m sanciio n amoun i i n ett'ec i A \ ih o limeofih cviohiuo n 2 . Abbrcviaiion.s . Th e (bliowm g abbrcvuuions/in : use d i n (hi s Tabi c APli ymean s approve d prt»du<.iio n mspeciio n .sy.'.icn i A/ W mean s air^orihines s /4W^ C mean s airworthines s ccmficai e /Jr 5 mean s Unde rSecietar ylo rBor<k- f an d Transponaim n Securit y [ Amean s in.spectioi i auihon/.alio n L E mean s la wentorcemen ( / ' C mean s productio n cenificad ST C mean s supplemcnla l typ e certificat e T C mean s typ t certificat e Tf-' R mean s Temporar yFligh t Restrictio n TS Amean s Transportatio n Securit yAdministratio n 3 Defmilions : a . Aconiinuin g violatio n arise s whe n a specifi cviolatio n occur s ove rmor e tha n on e da y o rove rmor e tha n on e flight . I t als o ma yinvolv e a violatio n (ha t i s ongoing,y^ rexample , a n ongoin g refusa l t o provid e require d record s t o (h e FA Afo rinspection . Punitiv e sanction s ar c appropriat e fo rcontinuin g violation s tha i ar e no t currentl yongoing . Sanctio n guidanc e fo r thes e violation s i s se t fort h i n paragraph s 6 an d 7 (multipl e act s o rmultipl e violations ) o l chapte r7 , Acombinatio n o f punitiv e an d remedia l sanction s i s appropriat e whe n continuin g violation s ar e ongoing . b . Violatio n commiKc d b ya smal l business'concern . Sectio n 50 3 o f Visio n 100—-Centur y o f Aviatio n Reauthorizatio n Ac t (CARA ) amende d 4 9 U.S. C § 4630 1 t o chang e th e civi l penalt yamount s th e FA Ama ysee k fo rviolation s (ha t occu ro n o rafte rDecembe r12 , 2003 ; th e la wset s difTcrcn t limit s o n th e civi l penaltie s th e FA Ama ysee k fo rviolation s b ysmal l busines s concerns , a s oppose d t o violation s b yothe rentities . Visio n 10 0 CAR Agive s smal l busines s concer n th e sam e meanin g a s i n (h e Smal l Busines s Ac t (1 5 US.C . § 632) . Sectio n 63 2 define s smal l busines s concer n a s a n enterpos e "whic h i s independentl yowne d an d operate d an d whic h i s no l dominan t i n ic : fiel d o f operation. " Th e Smal l Busines s Administratio n regulation s implemen t th e Smal l Busines s Ac t an d defin e busines s concer n as B- 1 

## EXHIBIT . 

# A l06^03/201 0 17:0 7 FA X 202493514 2 FA A+ DM S 0005/02 5



### 10/01/0 7 2150.3 B

" abusines s entity organize dfor profit , wjt

haplac e o f

busines s locate di

n th e US. , andwhic h operate s primaril y withi nth e US . o r whic hmake s asignifican t contributio n l o th e US . economy throug hpaymen t of (axe s o r us e o f American products , material s o r labor " 1 3 C PR . § 1 2 1.10

5 fh e SB A regulation s furthe r defin e smal l busines s concer n i n tables , describin g eac hkin do f

entity b y it s economi c activity or industry , an dlistin g th e limit fo r smal l by annua l receipt s or , more commonly , numbe r o f employees , (Th e si/ e limit s generall y are establishe dunde r

th e Nort hAmerican Industr

y Classificatio n Syste m(NAICS), ) Fo r th e complet e list , se e I3C-F.R . § 12 1 20 1 o r ihe SBA' s websit e a

t www.jiba.Rov . Thus , if

aperso n meet s th e definitio n o i busines s concer n an dha s annual receipt s or th e numbe r

o f employee s withi nth e applicable - SB A limit , i t i s asmal l hu.^ine.s. ^ concern , an dth e FA. A wil l determin e th e civi l penalty usin g th e applicabl e range . Limit s fo r commo n aviatio n entitie s follo w (in number s o f

employees , unles s otherwis e no(cd ) Manufacturin g 

### Aircraf t - 1,50 0 employee s Aircraf t engin e an dpar

t - 1,00 0 employee s Othe r aircraf t pa n an dequipmen t

1,00 0 employee s Air transportatio n Schedule dpassenger

- 1,50 0 employee s Schedule dfreight - 1,50

0 employee s Nonschedulc dpassenger

- 1,50 0 employee s Nonschcdule doffshore marin e passenge r - $25. 5 millio n annual receipt s Nonsehedule dfreight - 1,50 0 employee s Nonschedulc doffshor e marin e freigh t - $25. 5 millio n annual receipt s Othe r nonschcdule d- $ 6 5 millio n annual receipt.' ? Support activitie s - $6 5 millio n annua l receipt s Flight Trainin g - $23. 5 millio n antiual receipt s Airport operation s Airport operator , organize dfor

profi t - $6. 5 millio n aiuiual receipt s Othe r operations , excludin g ai r traffi c contro l - $6. 5 millio n aruiua l receipt s Not e that th e followin g guidanc e use s larg e busines s concer n fo r some civi l penalty ranges . Tha t i s no t astatutory o r

regulatory termfo

r purpose s o f

FA A enforcement . I

t include s eac h busines s concerntha

t exceed s th e maximu mlimi t fo r smal l busines s concern, a s wel l a s any othe r entit y tha t

doe s no t mee t th e definitio n o f

"smal l busines s concern. " c . Civi l Penalty Ranges . Fo r th e purpos e o f

thi s table , whe n civi l penalty actio n i s recommende dan ddescribe da s Minimum , Moderate , o r Maximum , th e penalty range s are define di n subparagraph s (1 ) throug h(9 ) o f thi s paragraph . Not e tha t th e middl e of

eac h recommende dsanctio n rang e woul db e fo r asingl e violatio n withou t aggravatin g or

mitigatin g factors .

B-2OG/03/201 0 17:0 7 FA X 202493514 2 FA A* DM S @l00G/02 5



### 10/01/0 7 2150.3 B (I ) VIOLATIO NCOMMITTE D B Y U.S . AI RCARRIER S O RU.S . COMMERCIA L OPF-RAIOR . Cl.ASSlFlCAllO NO FAIRCARRIE RAN D OPERATO R GROU P1 Eachai r

carrie r operatin g unde r

par t 12 1 o r pa n 135 , witha

n annua l operatin g revenu e o f

$ 100.000,00 0 o r

more . Operatin g revenu e i s determine db y referenc e t o D O I s 'Ai r Carrie r Industr y Schedule dServic e Traffi c Statistic s Quanerly. " Se e httt:i://QStpxweb.dot.t>ov/aviation/index.html , andclic k o n 'Airiin e Financia l Review. " CiROUPI

I - hac hai r

canie r o i commercia l operato r

operatin g unde r

pa n 12 1 wit

ha n anniial operatin g revenu e o f

les s than $ 100.000,000 , o r unde r par t 13 5 witha

n annua l operatin g revenu e o f

Ics. s tha n .$100,000,000 , i f

th e 13 5 operato r

lia s 5 0 o r mor e pilot s an d2 5 oi mure aircrof i o n it s uper;iii<ins - spociriciitions . Operatin g revenu e is determine db y referenc e t o D O I' s "Ai r

Carrie r Industry Schedule dServic e Traffi c Statistic s Quanerl y " (iROU PM

l - hac hai r

carrie r or coininercia l operato r

operatin g unde r

par t 13 3 wit h6 t o 4 9 pilot s O f 6 t o 2 4 iiircraf t GROU PIV - Hac

han carrie r

o r commercia l operato r

operatin g unde r

pa n 13 5 withn o mor e than 5 pilot s andn o more than 5 airL-raf i GROU P I - larg e busines. s concer n



### Maximu m$l8,750-$25,00 0 Moderat e $10,000- $ 18,74 9 Minimu m$2,000-59,99 9 CJROU PI - smal l busines s concer n (fo r violation s covere dunde r 4 9 U.S.C . § 46301(a)(5)(A)) :

Maximu m$8,250- $ 11,00 0 Moderat e $4,400-38,24 9 Minimu m$l,l00-$4,39 9 GROU P1 - smal l busines s concer n (fo r violation s covere dunde r 4 9 U.S C § 46301(a)(1)(A ) o r (B ) but no l under

4 9 U.S. C § 46301(a)(5)(A)) : Maximu m$850-51,10 0 Moderat e $650-$84 9 Minimu m$50 0 $64 9 GROU P1 1 - larg e busines s concern :

B- 306/03/201 0 17:0 7 FA X 202493514 2 FA A * DM S 21007/02 5

10/01/0 7 2150.3 B 11 . Al l individual s an d entities : Failur e t o Surrende rCcrtincato , Authorization , o rOthe r Approval . Fi g B- 1 I . 1 . U.S . AI RCARRIERS . V.S . COMMERClAl . OPLRATORS . PAR T 125 OPERATORS . A^ D PAR T 12 9 OPERATOR S Fig . B-l-a . Maintenanc e Manua l (I ) Failur e t o maintai n curren t manua l (2 ) Failur e l o provid e adequat e in.?imc(ion s an d procedure s i n manua l (3 ) Failur e t o distribut e manua l t o appropriat e pci^onriL- l (4 ) Releas e o f aircral l wnhou i rcquirc j <.'quiprncn i Civi l Penalt y Minimu m Moderat e l o Maximiin i M i n I rr u mto ^

Moderat e Modoraii ; \ u Maximu m Fig . U-l-b . AA V Diiccriv e (I ) Failur e t o compl y Civi l Penalt y Moderat e K

> Maximu m Fig . B-l-c . Operation s Specification s (I ) Excee d in-jpectio n o roverhau l tim e limiiatio n (2 ) Operatio n contrar yt o op s spec s - technica l nQncomplianC i (3 ) Operatio n contrai yt o op s spce s - likel ypotentia l o racf\is l advers e cftec co n saf e operatio n Civi l Penalt y Moderat e Minimu m Moderat e t o Maximu m Fig . B-l-d . pHcilitie s an d Equipmen t (1 J Failur e t o provid e adequatel yfo rprope rservicing , maintenance , repair , o riaspectio n o f facilitie s an d equipmen t Civi l P«aa(t y Maximu m Certificat e Actio n i; p 1 0 7-d3 y .suspensio n

U p 1 0 7 da y .suspensio n CertiHcat f Actio n Certincat e Actio n U p t o 7-da y suspensio n

Certificat e Actio n Indefinit e Suspensio n unti l prof)e r servicing , niainlcnauce , repai ran d inspectio n o f facilitie s an d equipmen t i s provide d t o Revocatio n



### B-1 2OG/03/201 0 17:0 7 FA X 202493514 2 FA A - > DM S @|009/02 5



### 10/01/0 7 2150.31 3 Fig . B-l-e . Maintenanc e an d Inspectio n Organizatio n ( I ) failur e t o provid e o rmaintai n a maint^-nanc can( J inspectio n organizatio n

Fip . B-l-f . Trainin g Progra m ( I ) failur e t o ha^ e trainin g progra m

(2 ) Failur e t o maintai n trainin g pro^jra m (3 ) Failur e l o trai n personne l .idequatel y FIR . B-I-g . Maintenanc e o rAircraf t Paperwor k (1 ) Incomplet e o run.signe d r e leas e (2 ) Failur e t o revis e a/ cdat a afte rrepai r Fig . B-l-h . Performanc e o f Mainrenanc e (1 ) B yunauthorize d perso n (2 ) Failur e t o perfor m o rirn£r<)£e rmaintenanc e Civi l Pena|r >

Fig , B-I-i . SEA R3 6 ( I ) Failur e l o compl ysecon d offens e Fig . B'Nj . Record s an dReport s (I ) Deliberat e violatio n <^a ) Intentionall y fals e o r

fraudulen t

entry , reproduction , o r

alteratio n in recor do r report (b ) Othe r 

# L.. . Maximu m

Civi l Penalt y Ma xI mun i

Moderat e t o Maximu m Moderat e t o Maximu m Civi l Penalt y Minimu m l o Maximu m Moderat e t o Maximu m Civi l Peoalt y Maximu m Moderat e t o Maximu m Civi l Penalt y Maximu m Civi l Penalt y Certificat e Actio n Indcfmii e Suspen.sio n liiiii i a n appropiiiit e m;tinicn;inc e an d inspectio n or[iani/.iiUo n i. s provnif d i(. ) Revocatio n Certificat e Actio n Indefmit c Suspensio n unti l ctjinpliano c t o R e voca l io n

Certificat e Actio n

Certificat e Actio n

Certificat e Actio n Certificat e Actio n Revocatio n I80.da y Suspensio n t o Revocatio n 

### B-1 306/03/201 0 17:0 7 FAX 202493514 2 FA A + DM S gl009/02 5 

### 10/01/0 7 2150.3 6 Fig . B-l-j . Record s & Report s cont . (2 ) Failur e t o mak e accurat e mechanica l interruptio n summary repor t

J^j^F^Wu Kt o mak e accurat e mechanica l reliabilit yrepo n (5 ) Failur e t o mak e require d entr yi n aircraf t lo g (6 ) Failur e t o mak e availabl e pilo t recor d (.3) Failur e l o mak e availabl e report o f majo ralleiatio n o r repai r

(7 ) Failur e t o mak e availabl e loa d inanifcs i Civi l Penalt y Moderat e t o Maximu m Moderat e t o Maximu m

Moderat e t o Maximu m Minimui n t o Maximu m Miiderat e t o Maximu m Moderat e t o Maximu m (X ) Failur e t o monito ran d recor d enrout cradi o comrnunicaiio n Moderat e ( o Maximu m Mg . B-l-k . Dispatc h an d Fligh t Releas e RUIF. % (1 ) An yviolatio n of.subpa n U o f 1 4 Cl - R pa n 12 1 Civi l Penalt y Moderat e t o Maximu m Fig . B-l-l . Operatio n ofunairworth yaircraf t ( I ) Technica l non-conformit yt o TC ; n o likel yeffec t o n .saf e Operatio n (2 ) Non-conformit yt o I' C tha t ma yhave , o rhas , advers e effec t ^nsaf e operatio n (3 ) Releas e o f aircraf t withou t require d equipmen t Civi l Penalt y Minimu m Moderat e t o Maximu m Moderat e t o Maximu m Certiificat o Actio n Indefinit e Suspen.sio n t o Revocatio n Indefinit e Su.'jpen.sio n t o Revocatio n Indefinit e Su.^pensioi i t o Revocatio n Certificat e Actio n Certificat e Actio n

U p t o 7-day suspensio n Fi^ . B-1-ID . Provision s specifi c t o passenger-carryin g (1 ) Boarding , o r

servin g alcoholi c beverag e to , aperso n wh o appear s t o b e intoxicate d (2 ) Failur e t o brie f

passenger s (3 ) failur e t o ensur e seat a^ dbel t fo r eac hpa-ssenger (4 ) Operatio n w/ o operabl e publi c addres s syste m (5 ) Failur e t o stor e baggag e properl y Civi l Penalt y Maximu m M(xlcratc t

o Maximu m Maximu m Maximu m Moderat e Certificat e Actio n

Fig . B-l-D . Provision s specifi ct o fiigfat dec k cre w (1 ) Us e o f crewmcmbe rv*ril h expire d medica l certificat e (2 ) Failur e t o mak e flight dec k seat availabl e t o authorize d eru^out e inspecto r Civi l Penalt y Minimu m t o Moderat e Maximu m Certificat e Actio n

B-1 4OG/03/201 0 17:0 7 FA X 202493514 2 FA A + DM S iaolO/02 5



### 10/01/0 7 2150.3 0 Fig . B-l-n . Provision s specifi ct o fiigbt dec k cre wcont . (3 ) Us e o f unqualifie d erewmembe r (4 ) Fligh t an d Dut yTim e vjolaiio n Civi l Penalt y Maximu m Moderat e Certificat e Actio n Fig . B-I-o . Othe rprovision s (I ) Improperl yRctiimin^ ^ Aircraf t t o servic e (2 ) Illega l carriag e o f controlle d sub.slance wit h knowledg e o f carrier , tha t is , knowledg e o f o rinvolvemen t in , conduc t b y to p manatJcmen t peisonne l Civi l Penalt y Maximu m (J ) U.s e ofunqualidc d personne l othe rtha n fligh t dec k trcwmcmbc r Miiximu m Certificat e Actio n Revocatio n

Fip . B-l-p . Operation s a t airport s requirin g slot s (1 ) Operatio n wiihou i a resen'atio n fro m AFC. " (2 ) Operatio n wu h i i reservation , bu t a t th e wron g tim e (3 ) Us e orinlemaijona l slo t lo rdomesti cnigh t (4 ) Us e o f aircraf t no t meeiiii B criteri a i n |4C.f.R . j 93.123(c)(2 ) m conunute rslo t Civi l Penalt) ' Moderat e Moderat e Moderat e Moderat e Certificat e Actio n

2 . PERSONNE LO FAI RCARRIERS , COMMERCIA LOPERATORS . AN D PAR T 12 5 OPER A TORS . Fig . B-2-a . Maintenance , includin g inspectio n (1 ) Performin g maintctiaiie e withou t certificate , rating , o r authorizatio n (2 ) Performin g maintenanc e tha t exceed s limitation s (3 ) Failur e t o perfor m maintenanc e properl y Civi l Penalt y Maximu m Certificat e Actio n 30 - t o 45-da y Suspensio n 30 - t o 120 - da y Suspensio n Fig - B-2-b . Inspectio n (I ) • Failur e t o mak e require dinspectio n (2 ) Makin g improper

inspectio n (3 ) Imprope r

relea.s e o f

aircraf t to servic e (4 ) Releasin g aircraf

t fo r .servic e withou t

require dequipmen t Civi l Penalt y Certificat e Actio n 30 - to 60-da y Suspensio n 30 - t o 120 - day Suspensio n 3 0 to 60-day Suspensio n 3 0 t o 60-da y Suspensio n



### B-1 5OG/03/201 0 17:0 7 FAX 202493514 2 FA A• * DMS 12)011/02 5 

# AIRLIN E QUARTERL

Y HNANCIA L REVIE W FOURT H QUARTE

R200 9 MAJORS

1 •• • ...'.r.rj . j "

< - ••• • -.....--"'i f : \



# DEPARTMEN T O FTRANSPORTATIO N OFFIC EO FAVIATIO N ANALYSI S COMPETITIO NAND POLIC Y ANALYSI S DIVISIO N

EXHJBI L 

# A2 .06/03/201 0 17:0 7 FAX 202493514 2 FA A+ DM S @l012/02 5

TABL E O F CONTEKT S i:iR.<!CRIPTIO

NPAG E IntroducLioi i 3 Tota l .yy3C.e

mPaesenge r d All-Carg o Major s a Char t 1 Operatin g an d Ne t Profi t (Loss ) Fourt h Quarte r 200 9 7 Char t 2 Operatin g an d Ne t Profi t (Loss )

1 2 Month s Ende d rourt h Quarte r 200 9 7 Char t 3 Operatin g Profi t (Lose ) HyQuarte r 8 Char t 4 Ne t Incom e (Loss ) B yQuarte r S Char t 5 Opsratin g Profi t (Loss ) B y12-Mont h Endin g Period s 5 char t 6 Ne t Incom e (Loss ) C y12-Mont h Endin g Period s 9 Char t "

7 Operatin g Revenu e Pil r Revenu e Ton-Mil e Pcret;n t Changf t Pro mSam e Perio d AYea r Earlie r 1 0 Chiix T S To n Loa d Facto r Percentag e Poin t Chang e Fro mYea r Edrli*i'.. . 1 0 Char t 9 Operatin g Expens e Pe r Rcvetlu e Ton-MJle ,

Percen t Chang e Fro m.<;am e Perio d AYea r Earlie r 1 1 Char t 1 0 Operatin g Expens e Pe r Availabl e Ton-Mile ,

Percen t Chang e fro mSam e Perio d AYea r Earlie r l l Tota l Passenge r Ma j or a 1 2 Char e 1 1 Passenge r Revenue s Pa r Revenu e Passenger-Mile ,

Pfircen c Chang e Fro mSam e Perio d AVea r Earlie r I S f:har n 1 2 Revenu e Passenger-Miles , Percen t Chang e Fro mSjin c Perio d AYea r Kar l ie r 1 5 Char e 1 3 Avtiilabl e .Seat-MiIftp ,

Percen t cihang e Fro mSam e Perio d AYea r Earlie r 1 6 Char t 1 4 Passenge r Loa d Factor , Percentag e

Poin t Chang e Fro mSam e Perio d AYea r Earlie r 1 6 Char t 1 5 Passciige r (RPM ) Yiel d 1" ? Char r lc-

> faesenge r Loa d Facto r 1 7 Ai V Ira n , In c 1 8 Alask a Airlines , In c 1 9 Amo i ico n A i r 1 i nfi.i , In c 2 0 America n Eagle , In c 2 1 Atlanti c Southcua t Airline.' S 2 2 Comair , In c 2 3 Coritinuntu l Ai r

Lines , Iii c 2 4 Delt a Ai r L.i.neir. , m c 2 5 ExpressJe t Airline s 3 6 Fron t i li t

A,. i r l i ne.." . 2 7 JetBlu e Airway s 2 8 Meg a Airlines , In c 2 9 No r Chwe!? C Ai r l i nfi s , In c 3 0 Skywes t Airline s C o 3 1 .30iithvJrir.i: . Airline s C o 3 2 U S Airways , in c 3 3 Wn i rr- AAi r r. i nft-s , in c 3 4 Tcca l All-Carg o Major s _3 5 Fccl-e-ra l Fxprejn s Cor

p 3 8 Unite d Parce l Servic e 3 9 Ccmpariso n o f Individua l Majo r Operatin g Profi t (Loss ) 1 0 Compariso n o f individua l Majo r Ne t Incom e (Loss ) 4 1 Compariso n o l Individua l Majo r .Schedule d Pas.=ienge r Loa d Facto r 4 2 C>'mpai-i.=io

n o f Individua l Majo r Schedule d Passenge r Yiel d " 3 Compariso n o f Individua l Majo r Operatin g Profi t Margi n 4 4 Compari-'jon o f Individua l Majo r Dt-b t T o Investmen t Rati o an d Tota l Deb t . . 4 5 Footnote." . "1 6 Explanatio n o f Lin e Item s 4 7OG/03/201 0 17:0 9 FA X 202493514 2 FA A^ DM S @1013/02 5

INTRODUCTIO N Thi s repo n coniain s staf f comments , (able s an d chart s o n th e financia l conditio n o f (h e IJ,S . majo rairiines . Th e dat a ar e presente d o n bot h a carrie rgrou p an d a n individua l carrie rbasis , bu t th e primar y focu s i s o n th e rndividua i majo rcarrie ran d it s performance . Dat a ar e presente d fo rth e mos t recen t Ouarterl yperio d an d th e comparabl e quarte ra yea rearlie ran d als o o n a 12-mont h ende d basi s a s a t th e en d o f th e fiv e mos t recen t quarters , i n addition , dat a o n charge s ove rcomparabl e period s 12 - month s earlie rar e presented . Agraphi cpresentatio n o f comparativ e irands , o n a carrie rgrou p basis , i s mad e fo rsevera l uni t an d overal l financia l indicators . I n th e cas e o f merge d carriers , dat a fo rth e carrier s involve d hav e bee n combine d an d presente d unde rth e nam e o f th e survivin g carrie rs o tha t meaningfu l comparison s coul d b e made . Al l dat a presente d i n thi s financial an d traffi crevie war e derive d fro m dat a reporte d t o th e U.S . Departmen t o f Transportatio n o n For m 4 1 Schedule s b yLarg e Certificate d Ai rCarriers . Fo r compariso n purposes , thi s analysi s i s limite d l o th e majo rschedule d passenge ran d all-carg o ai r carrier s only . Alask a Airlines , wit h revenue s exceedin g $ 1 billio n i n calenda ryea r1995 , becam e a majo rairlin e effectiv e Januar y1.1996 , an d i s no winclude d i n thi s review . Al l financia l an d traffi c result s hav e bee n retroactivel yrestate d t o Includ e th e operation s o f Alaska . Certai n dat a i n thi s revie w i s classifie d i n tw o broa d categories ; namel y"domestic " an d "international" . "Domestic " encompasse s operation s withi n an d betwee n th e 5 0 state s o f th e Unite d States , tf^ e Distric t o f Columbia , th e Commonweali h o f Puert o Rico , an d th g U.S . Virgi n Islands , l i als o encompasse s Canadia n tronsborde roperation s an d fo rcertai n carrier s Mexica n iransborde roperation s Al l othe r operation s ar e considere d "iniernational" , whic h i s separate d int o Atlantic . Latin , an d Pacific . Suggestion s fro m user s fo rth e improvin g eithe rth e scope , presentation , o rutilit yo f thi s revie w ar e invited . I t wil l als o b e appreciate d i f suggestions , discrepancies , an d error s i n th e dat a ar ccalle d l o th e attentio n o f th e Economi c& Financia l Division , Offic e o f Aviatio n Analysis , Offic e o f lli e Secretary . U.S . Departmen t o f Transportation , Washington , D.C . 20590 .06/03/201 0 17:0 8 FAX 202493514 2 FA A DM S 21014/02 5



### QUARTERL Y FINANCIA L& TRAFFI C REVIE W

SYSTE M OPERATION S AirTra u Airway s ITEM S 1 2 3 A 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 I B 1 9 2 0 2 1 2 2 2 3 2 4 2 5 FINANCIA L RESULTS : (SMUHonst Operatin g Revenue s Operatin g Expense a Operatin g Profi t (Loss ) Ne t Incom e (Loss ) TI^^FFI C (^liiffnf ) r^PM s - Schedule d Svt . ASM a - scncciuie a Sv c Overal l RTM s (Al l Svc. ) Overal l ATM s (AH Svc. ) YIEL D & UNI TC05 T& PROFITS : (Cents ) Operatin g Revenu e pe rRT M Operatin g E)tpeni; 6 pe rRT M Operatin g Profi t (Loss ) pe rRT M Operatin g Expens e pe rAT M Passenge rRevenu e pe rRPt ^ FtNANCIAI . RATIOS Operstin g Revenue s t o Tota l Investmen t Time s interes t Earne d Cun-en t Asset s t o Cunen t Liabilitie s No . o f Day s Cas h Coverag e o f Cas n Exp . FINANCIA L PtRCENTAGE S (Jperatint ] Profi l (Loss ) t o Operatin g R«venu < Ne t Incom o t o Stockholder s Equit y Corporat e Retur n o n Inveslmwi t Deb t t o Tota l Invesinien i PASSENGE R LOA D FACTOR : (Sch . Svc , % Actua l Breakeve n CmDlovme m AProauptivity : Employment , Tota l V>/eighle d Av g C Y Overal l RTM' s pe rEmploye e (000 ) QUARTE R ENDE D 2009/1 2 596. 1 572. 3 26. 1 17. 1 4. 5 5, 6 0, 5 0, 7 132. 7 127, 0 5 8 8S. 3 11.8 6

4, 4

77. 7 73. 6 7.80 1 57. 8 2006/1 2

589. 4 534. 6 54 9 -llfl. 4 4, 2 5. 3 0. 4 0 6 140 7 127. 6 1 3 1 86. 4 13.1 3

9. 3

78. 1 69, 5 7,38 7 56, 7 1 2 MONTH S ENDE D | 2009/1 2 2,341. 4 2,164, 4 177. 0 134. 7 18, 5 23. 3 1. 9 2. 7 126. 5 116. 9 9, 6 80. 3 11,2 5 1.5 7 2.6 5 1.0 4 10 3 2 7. 6 3 5 8 5 14. 5 70. 7 79. 5 72, 1 7.89 8 234. 4 2009/0 9

2,332. 4 2,126. 7 205. 8 -o. e 18. 2 22. 8 t. 8 2, 6 128. 2 116, 9 11. 3 80, S 1 1 5 3 16 1 1.0 S 0 6 2 81. 4 8. 8 -0.2 3 5. 4 72, 8 79, 6 71. 0 7,79 5 233, 4 2009/0 $

2,408. 3 2,285. 7 122. 6 -118. 3 18. 2 22. 9 1. 8 2, 7 132. 1 125. 3 6, 7 56. 2 12.0 6 1.6 1 0.0 6 0,9 3 74. 6 5, 1 -32.2 1 0, 2 72. 1 79. 6 74. 7 7.76 5 234, 9 2009/0 3

2.498, 0 2.467, 1 10. 9 -210. 3 18, 5 23. 3 1. 9 2. 7 134, 9 134. 3 0. 6 92. 0 1 2 5 3 1.6 5 -1,7 7 0.8 5 70. 9 0 4 -569 7 -8, 9 77. 8 79. 2 78. 7 7.01 2 237, 0 200a/1 2

2,552. 5 2,624. 5 -72. 0 -273. 8 18. 7 23. 8 1. 9 2. 8 135. 9 139. 7 -3. 8 95. 3 17.7 8 1.6 7 -3,1 3 Q.8 2 59. 6 -2. 8 -65.0 6 -13. 3 E2. 0 78. 9 61. 5 7.30 6 22.7. 7 2 6 2 7 2 8 2 9 3 0 3 1 3 2 3 3 3 4 Op a ratin g Revenue s (% ) Operatin g Expense s {" M Operatin g Profi t (Loss ) (i n Million s $ ) Ne t incom e (L05S)(i n Million s S ) RPMs(Sdi . Sv c)(•/. ) ASM S (Sch . Svc.)(% ) Operatin g Revcnue cpe rRT M (% ) Operatin g Fxpens e pe rRT M (% ) Passenge rRevenu e pe rRP M (Sen . Svc.)( % CHANG E OVE R COMPARABL E PERIO D 1 2 MONTH S EARLIE R 1. 5 7. 1 -28, 8 135. 5 7. 8 8. 4 -5, 7 -O S -9. 7 1. 0

-6. 0 40. 0 -116. 2 -2. 9

- 6 7 3. 8 -3. 4 2 2 -8. 3

-17, 5 249. 0 408. 5 -1. 4 -2. 1 -6, 9 -16. 3 -12. 0 -8. 4

-20. 0 317. 7 156. 8 -3, 8 -5, 5 -1, 8 -16. 9 -9, 3 -3. 0

-8. 9 150. 0 -78. 4 -1. 5 -4, 6 -1. 5 -7. 5 -5, 2 4. 0

7 5 -77. 7 -224. 9 3, 0 0 4 1, 1 4. 5 -1. 5 10. 6

io e -20 8 a -325. 4 8. 8 4. 7 1. 9 11. 4 0. 4 1 8r» « * nM« ; 121015/02 5 OB/03/201 0 17:0 8 FAX 202493514 2 FA A0M5 >

10/01/0 7 2150.3 6 Chapte r7 . Sanctio n Guidanc e Policie s I - Purpose . Thi s chapte rprovide s th e FAA' s policie s fo r(Jeterminin g a n appropriat e .s;tncuo n onc e FA Aeiiforcemen l personne l dircid e tha t lega l cnforccmen i actio n i s appiopriai e Tin s chapte r contain s (h e genera l polic yth e KA Aintend s ( o appl yi n selectin g tlu : type s o(\sanc(ions . range s o ( sanction s vi^ilhi n (hos e types , an d specifi csanctio n amount s t o impos e i n lega l cnrorcemen t action s To rtypica l violation s ci f th e FAA' s statut e an d regulation s Thi s guidanc e cover s th e paraniclt-.r' ; bot h fo rselectin g sanction s an d fo rmodifyin g sanction s durin g th e infonna l procedures . Th e guidanc e i n thi s chapte ri s applie d i n adjudication s unde r4 9 U S.C . § § 44106 , 44709 , 44 7 if l 44726 . 44924 , 461 1 1 , 46301 . an d 7011 5 Hazardou s material s sanciio n guidanc e iin d policie s ar e ;iddressc d m Appendi xC 2 . Gcneri l Guidelines . a , CeriiHcat cSuspensio n Actio n an d Civi l Kenait yAction : Sanccion s fo rPunitiv e an d Deterren t Purposes .

(1 ) General , I f a certificat e holde rimproperl yexercksc s th e privilege s o f a certificate , a natura l consequenc e o f tha t ac t i s t o los e th e privilege s fo ra perio d o f tim e commensurat e wit h th e violation . Balance d agains t thi s principle , licvevei , th e FA Aconsider s th e advers e impac t tha t a certiOcai e suspensio n coul d hav e o n th e public . Thus , th e agenc ygenerall ysuspend s th e certificate s o f individua l certificat e holder s fo rviolations . However , th e FA Au.suall ylakes - eivj l penalt yactio n agains t ai rcarrier s an d airport s becaus e .suc h action s d o no t dismp t service , ^^liic h ma yadversel yafTec t (h e public . Nevertheless , whe n th e FA Adetermine s tha t safet y consideration s warran t it , th e agenc ywil l suspen d th e certificat e o f an ytyp e o f certificat e holder . I n n o cas e wil l th e FA Alak e civi l penalt yactio n alon e whe n remedia l lega l actio n i s necessar y o rappropriate . (2 ) Us e o f bot h punitiv e certificat e actio n an d civi l penalt yactio n fo rth e sam e violations . Th e FA Agenerall ydoe s no t lak e civi l penalt yactio n an d punitiv e cenificat e actio n (tha t is , certificat e suspensio n fo ra fixe d perio d o f time ) agains t a certLfi^w e holde rfo rth e sam e conduct . I f unusua l circumstance s warran t deviatio n fro m thi s practice , lega l counse l consul t i wit h th e Assistan t Chie f Counse l fo rEnforcemen t (AGC-300 ) befor e initiatin g th e action s (3 ) Chang e i n typ e o f propose d sanction . Th e initia l enforcemen t actio n reflect s th e agency' s bes t assessmen t o f th e appropriat e sanctio n fo rth e violation s alleged . Afte rinitiatin g th e action , lega l counse l ordinaril ydoe s no t chang e th e typ e o f sanctio n iuiles. s additiona l fact s o r circumstance s ar e presente d t o th e FA Atha t wairan t a change . I f th e actio n wa s coordinate d unde rchapte r6 , paragrap h 3 , wit h AGC-30 0 befor e initiation , the n lega l counse l coordinate s an y chang e i n th e typ e o f sanctio n wit h AGC-30 0 befor e makin g th e change . b . Lega l Saoction s fo rRemedia l Purposes , ( I ) Indefinit e cenificat e suspensio n pendin g complianc e o rdemonstratio n o f qualification . Suspensio n actio n i s appropriat e wher e ther e i s a nee d temporaril yt o 7- 1 

# A 3 EXHIBIT - '06/03/201 0 17:0 8 FA X 202483514 2 FA A+ DM S 0018/02 5



### 10/01/0 7 2150.3 B suspen dthe privilege s o f th e certificat e o r

ratin g pendin g dcmon.stratio n o f qualificatio n o r complianc e wit

hstatutor y or regulatory requirements . FA A generall y use s remedia l suspensio n whe n a n individua l doc s no t

voluntaril y surrende r

hi s o r her certificat e pendin g reexamination . Si^ e chapte r 5 . (2 ) Cenificai e revocatio n- general , Th e FAA revoke s acenificat e whe n acertificat e holde r lack s the qualification s t o hol dth e certificate . Th e cenificai e holder' s continue dcxerci.i e o f th e privilege s o f

th e certificat e ir

\suc hcircumstance s woul db c contrary t o safer y i n ai r commerc e o r

air transponatio n an dth e publi c interest . Revocatio n i s appropriat e wheneve r a certificat e holder' s conduc t demonstrate s alack

o f th e technical proficienc y o r alac k o f th e degre e o f care , judgment , or

responsibility , require do f th e holde r

o f suc hacenificate . Order s o f revocatio n ar c issue don a nemergenc y ha.si s when th e certificat e holder lack s qualificatio n an dis reasonabl y abl e a s apractical maite i t o exercis e th e privilege s o f th e certificate . Legal counse l doc s no t alleg e alack

o f qualification s t o avoi ddismis^sa l ofchargc s unde r

4 9 CF.R . § 821.33 . th e NTSB' s stal e complain t mlc . (3 ) Cenificat e revocatio n • individuals . Th e FAA generall y revoke s a n individual' s certificai c o r

ratin g wheneve r

h e or sh e demonstrate s alack

o f willingnes s o r

abilit y t o compl y consistentl y wit

hstatutor y o r regulatory requirements . A lac k o f willingnes s o r

ability t o compl y may b e demonstrate db

y suc hthing s a s repeate do r deliberat e violation s o r

b y violation s tha

t involv e grossl y careles s o r reckles s conduc t

Even asingl e violatio n ma y b e sufficien t

to warran t aconclusio na

nindividual lack s qualifications . Th e FA A ordinaril y revoke s ai l certificate s o f a perso n wh o commit s aviolatio n involvin g intentiona l falsification .
cert (4 ) Certificat e revocatio n- entities . Revocatio n i s normall y appropriat e whe n a i,ciiificate-holdin g entit

y deliberatel y o r

flagrantl y violate s th e staait e o r regulation s o r

falsifie s records . Revocatio n aLs

o i s generall y appropriat e whe n th e certificate holde r ha s commine dth e sam e o r similar violation s inth e recen t

pas t demonstratin g alack

o f qualification , or

whe n th e certificai c holde r

n o longer

has , an ddoe s no t

obtai n i n areasonabl e time , th e personne l o r equipmen t

to conduc t

it s operatio n i

n ful l complianc e withstatutory andregulator y requirements . (5 ) Mandatory certificat e revocation . Unde r 4 9 U.S.C . § 44710 , th e FA A i s require dt o revok e th e cenificate s o f any airman wh o ha s bee n convicte do f violatin g certai n federal o r sut c statute s relatin g t o acontrolle dsubstanc e whe n an airplan e wa s use din th e commissio n o f th e offens e an dth e airman serve da s a n airman , o r

wa s aboar dth e aircraft , in connectio n wit h commissio n o f

th e offens e o r

th e facilitatio n o f

th e commissio n o f

the offense . Eve n whe n ther e ha s bee n n o conviction , revocatio n i s require dwhe n a n ainua n ha s knowingl y carrie dou t a n activit y punishabl e under thes e crimina l statutes . Th e Administrato r ma y waiv e th e revocatio n i f ala w enforcemen t

office r request s the waive r

an dth e Administrato r

decide s th e waive r

wil l facilitat e law enforcemen t purposes . Se e 4 9 U S.C . § 44710(0 - Under 4 9 U.S.C . § 44106 , th e FA A als o mus t

revok e th e registratio n cenificat e o f an y airplan e use din th e commissio n o f suc h a n offens e whe nth e us e wa s permitte db y th e owne r o f th e aircraf

t withknowledg e tha

t it woul d b e use dfor

suc hpurpose . Unde r

4 9 U.S.C - § 44726 , th e FAA mus t revok e th e certificate s o f any certificat e holde r

o r a nindividua l wh o ha s acontrollin g o r ownershi p interes t

in th e holde r

wh o wa s convicte do f

aviolatio n o f

federa l law relatin g to th e installation , production , repair , o r sal e o f acounterfei t

o r fraudulently-represente daviatio n part o r material o r

knowingly , an dwithth e 7- 2

### OG/03/201 0 17;0 8 FA X 202483514 2 FA A• ^ DM S 12017/02 5

10/01/0 7 2150.3 B ii^ent to defraud , carrie dout

o r facilitate da

n activity punishabl e unde r suc halaw . Th e Administrato r

may waiv e tha

i sanctio n t

o facilitate la

w enforcemen t

purpose s o r

amend , rathe r tha n revoke , acertificat e unde r certai n circumstances . Se c 4 9 U S. C § § 44726( 0 and(g) . (6 ) Mandatory cenificat e actio n fo r security concerns . Under 4 9 US C § 46 1 11 , th e Administrato r

i s require dt

o issu e a n orde r amending , modifying , suspending , o r revokin g an y FAA-issue dcertificat e i f the Administrato r

i s notifie dby the Under

Secretary o f

Border an d Transportatio n Security (BTS ) of (h e Departmen t

o f Homelan dSecurity (DMS ) tha i th e certificat e holde r

poses , or i s suspecte do f

posing , aris k

o f air pirac y o r terroris mor

athreat t o airlin e o r passenge r

safety . Under

4 9 U.S.C . § 44924 , the Administrato r i s required , a

l th e reques t o f th e Unde r

Secretary o f

BTS , to suspen do r

revok e foreig n repai r

statio n cenificate s m connectio n wit

hsecurity audit s 3 . Applicabilit y an dLxclusionS - Th e sanctio n guidanc e tabl e (tabic ) mAppendi x Rprovide s type s o f sanctions an dgenera l range s o f sanctio n amount s fo

r violation s o

f 4 9 U.S.C ; subtitl e VI I an d1 4 C.F.R . pan s 1,-19

9 an d4 9 U.S.C . subtitl e IX , chapte r 70 1 an d1

4 C.F.R . chapte r

111 . Onc e th e agenc y ha s determine dtha t lega l enforcement

aciio n is warrante dfo

r aviolation , FAA enforcemen t

personne l us e th e tabl e andparagrap h4 o f (hi s chapter , as well a s any othe r sanctio n guidanc e i

nthi s order , t

o determin e apropose dsanciio n Th e matter s describe di n chapte r 7 , .vubparagraph. s 3a.-d . ar c som e type s o f

agene y aeiio n tha

i fal l outsid e ihc scop e o f paragrap h3 an dth e table , a . Decision s ( o Tak e Administrativ e Actio n (Warnin g Notice s u r Letter s o

f Correction) . Anadministrativ e actio n doe s no t constitut e eithe r

aforma l adjudicatio n o f

th e inciden t o r afinding o f

violation . Fo

r thai reason , FA

A investigativ e personne l d o not propos e a sanctio n usin g th e table . b . Th e FAA' s Exercis e o f Trosecutoria l Discretion . Th e decisio n whethe r t o prosecut e a particular eas e i s base do narevie w o f (he evidenc e an drelevan t polic y andlitigatio n considerations . Th e agenc y exercise s broa ddiscretio n in bothth e initial decisio n ( o brin g alega l enforcemen t

action , an di

n an y later

determinatio n to compromis e or settl e acas e base do n variou s considerations . Th e FAA' s discretio n i n thes e area s i s absolut e andpresume dto b e immun e fi-omreview . Heckle r v. Cheney , 47 0 U.S . 821 , K3 1 (1985) . c . Hazardou s Material s Violations . Action s involvin g violation s o f th e federa

l hazardou s material s transportatio n law , 4 9 U.S.C . chapte r 51 , or th e Departmen t

o f Transportation' s Hazardou s Material s Regulations , 4 9 C.F.R . part s 10 6 throug h185 . Enforcement sanctio n guidanc e for

thes e violation s i s foun

din Appendi x C . d . Violation s b y Member s o f th e U.S . Arme dForces . Th e FAA i s require dt o forward report s o f thes e violation s to th e Secretary o f th e departmen t

concerne dunde r

4 9 U.SC . § 46101(b) , wheneve r

th e violato r

i s actin g i

n th e performanc e o f

officia l duties . Th e FAA , however , take s remedia l actio n in additio n to referrin g areport whe n th e violator , whethe r o r no t

7-306/03/201 0 17:0 9 FA X 202483514 2 FA A• * DMS 121018/02 5

10/01/0 7 2150.3 B actin g i n th e performanc e o f officia l militar yduties , hold s a n FA Acertificate , an d th e violator' s qualification s ar e at issue . Th e FA Ama ytak e punitiv e actio n agains t a membe ro f th e U.S . Arme d Force s fo ra violatio n corrunitic d whe n th e membe ri s no t performin g officia l duties . 4 . Mitigatin g o rAggravatin g Factor s an d Elements - Th e factor s i n chapte r7 , subparagraph s 4.a , throug h tn . hav e bee n develope d ove ryear s o f polic ymakin g an d cas e adjudication . The y hav e prove n usefu l an d appropriat e fo rdeterminin g th e seriousnes s o f a violatio n an d fo r selectin g a n appropriat e sanction . Element s fo revaluatin g an d weighin g eac h facto rar e als o describe d Thes e factor s an d element s provid e a framewor k fo rdeterminin g sanction s fo r violation s specificall yliste d i n th e tabl e a s wel l as thos e no t specificall yliste d Al l (h e factor s an d elements , however , ma yno t appl yt o eac h violation . Onl ythos e factor s an d element s tha t ar crelevan t t o a violatio n ar e considere d i n determinin g a sanciio n fo rth e violatio n Thi s lis t o f factor s an d element s i s no t intende d t o h e exhaustive ; othe rfactor s ma yb crelevan t as wel l a . Natur e o f th e Violation . Thre e element s defin e (h e natur e o f a violation : first, whethe r th e violatio n wa s operationa l o rnon-operational ; second , vvhethe rth e violatio n involve d careles s o rreckles s conduct ; an d third , whethe rth e violatio n involve d an yspecia l aggravatin g o r mitigatin g factors . (1 ) Individuals . Whe n a n individua l wh o hold s a certificat e improperl yexercise s th e privilege s ii f tha t cenificate , th e natura l consequenc e o f tha t ac t shoul d b clos s o f privilege s fo ra perio d o f lim e commensurat e wit h th e violation . Th e FAA , therefore , primaril yuse s certificat e action s t o enforc e operationa l regulation s agains t individual s wh o hol d certificates . Th e potentia l advers e impac t tha t certificat e actio n ma yhav e o n a n individual' s livelihoo d doc s no t alte rthi s principle . Non-operationa l violation s ma ywarran t a differen t typ e o f sanciion . (2 ) Entities . Th e FA Aordinaril ytake s civi l penalt yactio n agains t a certificaie-holdin y entit y(fo rexample , a n ai rcarrier ) whe n i t determine s ther e woul d b ca subsianiia l advers e impac t o n th e publi cinteres t fro m disrupte d servic e b ytha t certificat e holde ran d th e impac t i s no t outweighe d b ysafet yconsiderations . Eve n whe n a substantia l advers e impac t woul d occur , whe n ther e i s a nee d t o preven t continuin g violation s o rothe regregiou s conduc t b yan y certificat e holder , whe n an ycertificat e holde rlack s qualification , o rther e i s a reasonabl e basi s t o qticstio n th e qualification s o f an ycertificat e holder , th e FA Atake s remedia l action , fo rexample , revocatio n o rindefinit e suspension , a s necessary . (3 ) Careles s o rreckles s conduct . Violation s tha t involv e careles s o rreckles s conduc t i n violatio n o f 1 4 C.F.R . §91.1 3 ma ywarran t mor e sever e sanctions . Carelessnes s connote s conduc t tha t fall s belo wth e standar d o f car e o rprudenc e expecte d o f a reasonabl e person , o r holde ro f th e relevan t certificate , aclin g unde rth e sam e o rsimila rcircumstances . Recklessnes s connote s conduc t tha t demonstrate s a gross , o reve n callou s o rflagrant , disregar d fo rsafety . Aircraf t operation s tha t d o no t otherwis e resul t i n a violatio n o f a specifi cregulatio n shoul d b e evaluate d i n ligh t o f thes e standard s t o determin e whethe rthe yconstitut e careles s o rreckles s operation s i n violatio n o f 1 4 C.F.R . § 91.13 . Whe n a perso n operate s a n aircraf t i n violatio n o f a specifi cregulatio n othe rtha n 1 4 C.F.R . §91.13 , however , tha t violatio n constiotte s a careles s o r reckles s operatio n i n an d o f itsel f I n thes e cases , th e misconduc t ma yals o resul t i n a violatio n o f 1 4 C.F.R - § 91.1 3 ifitactuall yo rpotentiall yendanger s th e live s o rpropert yo f others . 7- 406/03/201 0 17:0 3 FAX 202483514 2 FA A^ DMS 0018/02 5



### 10/01/0 7 2150.3 B Whe n calculatin g th e amoun i o f sanciio n base don thi s factor , adistinctio n generall y i s draw n betwee n instance s wher e 1 4 CFR , § 91.1 3 i s a n independen t

violatio n an dthos e wher e i t i s residual t o anothe r violation . Wlien a1

4 C. FR . § 9 1 1 3 violatio n i s residual only , ahighe r sanctio n generall y i s no l warrante dunles s th e conduc t i s als o reckless . b . Whethe r

th e Violatio nwa s Inadverten t an dNo t Deliberate . I

f aviolatio n i s deliberat e o r

no t inadvertent , asanctio n a t th e uppe r

en do f th e rang e o

r exceedin g th e rang e fo

r tha t typ e o f violatio ngenerall y i s appropriate . A deliberat e violatio n generall y warrant s a sanctio n tha

t i s more sever e tha

n on e tha t i s jus t not inadvertent . (1 ) No t deliberate . Thi s elemen t mean s alack

of th e degre e o

f deliberatio n foundi

n intentiona l misconduct . Delibcral e o r intentional misconduc t

i s a n aggravatin g circumstanc e and include s deliberat e conduc t tha t lead s t o aviolatio n a s well a s circumsiiincc s indicatin g inten t t o commi t aviolation , (2 ) Inadvcnencc , A

n act i s inadverten t

whe n i t i s th e resul t

o f bot hmaueniio n an dlack o f purposefu l choice . For

example , a

n inadverten l ac i occur s when apilot flic s a t a n incorrec t altitud e becaus e h e o r

sh e misreadth e aircraft' s in.struments ; however , i i i s not a n inadvcnc mact whe napilo t

flics a t a nincorrec t

altitud e a s aresul t

o f choosin g not

to consul t

the aircraft' s instalment s o r

choosin g not

to us e othe r

availabl e mean s to verif

y altitude . Th e tes t

to b e applie d i s whethe r

(h e conduct , no t

th e factua

l o r legal consequences , i s inadvenen t an dunintended . Ferguso n v

. Nationa l Transportatio n Safet y Board , 67 8 F.2d821 , H28-829 (9lhCir . 1982) . c . Certificat e Holder' s Leve l o f Experience . (1 ) Leve l o f

experienc e refer s primaril y to th e typ e o f cenificat e an drating s hel d(for example , student , private , commercial , airlin e transpor t pilot , o r cenifie dflight

instructor) , an d th e numbe r

o f hour s flown, b y the certificat e holder . Cenificat e holder s wit hgreate r level s o f experienc e ma

y b e hel dl o ahighe r

standard . Thus , fo

r example , commercia l pilol s may b c hel d t o ahighe r

standar dthan privat e pilot s andairlin e transport pilot s ma

y b e hel dt o a

n eve n highe r standar dthancommercia l pilots , (2 ) I ndeterminin g a

n appropriat e sanction , th e FAA ma y conside r

th e exten t

t o whic h th e certificat e holder' s actio n deviate dfromth e degre e o f car e an ddiligenc e normall y expecte d o f aperso n withih e certificat e holder' s leve l o f experience . A significan t deviatio n fromth e degre e o f car e an ddiligenc e expecte do f th e holde r

o f tha t certificat e ma

y wanan t amor e aggravate dsanciion . d . Attitud e o f

th e Violator . (1 ) A goo dcomplianc e attitud e i s th e nor man ddoe s no t

warran t areductio n in sanction . A pno r violatio n history ma

y sugges t tha t aperso n ha s apoo r

complianc e disposition , whic hi s a n aggravatin g factor . Furthermore , aperso n wh o commit s an ac t o r omissio n contrary to statutory o r

regulator y requirement s after receivin g notic e throug haprio r administrativ e actio n o r counselin g tha

t suc hconduc t

i s in violatio n o f

thos e requirement s might wel l b e regarde da s havin g apoo r

comphanc c disposition . I n evaluatin g complianc e disposition , (he FA A doe s no i 7- 506/03/201 0 17:0 8 FA X 202483514 2 FAA+ DM S 12020/02 5



### 10/01/0 7 2150.3 B view a n allege dviolato r

a s havin g apoo r

attitud e becaus e th e allege dviolato r fail s t o respon dt

o alette r o f investigation , choose s t

o b e represente dby counsel , or contest s th e violation . (2 ) I n assessin g ih e attitud e o f a nallege dviolator , th e FA A ma y conside r

the declaratio n of a n emergenc y (

o air traffi c control . When a

n emergenc y i s genuin e an dno t o f th e person' s ow nmaking , th e emergenc y i s exculpatory under 1 4 CF.R . § 91.3(b) . However , thi s situatio n is distinc t fro mth e situatio nwher e adeclaratio n o f emergenc y i s no t

exculpator y but

i s afactor

tha i migh t b e appropnat e l o conside r i n determinin g sanction . I n emergenc y situations , the FA A view s declarin g a

n emergenc y t

o ai r trafUl c contro l a s asig n o f

goo djudgmen t

an dacon.structiv e atiitud e Whe

n a n emergenc y i s of

aperson' s own making , tha t person' s declaratio n o f

a n emergenc y ma

y h e considere dmitigatin g i

n dcitrminin g the sanctio n t o b e impose dfo r an y violation s commuted , i

nmuc hthe sam e wa

y i t i s considere dmitigatin g if aperso n voluntaril y report s aviolation . c . Degre e o f

Hazard . (1 ) The degre e o f

hazar dma

y b e increase da s aresul t

o f (he interpla y o f

th e operational environmen t

(for example , weather

condidons , congeste dvs . sparsel y populate dareas ) andth e natur e o f the threat t o .safet y (t o th e lif e or propen y o f

another , includin g thos e i n (h e aircraf t bein g operated , t

o othe r aircraft , o

r to person s o

r property on th e surface ) that th e misconduc t presents , Th e safet

y threat i s base do n the reasonabl y foreseeabl e consequence s of th e misconduci . Fo r

example , operatin g 50 0 fee t belo w th e minimu maltitud e pose s agreater hazard than operatin g 10

0 feet below . Similarly , i f

a naircraf t operato r fail s t o compl y wiiha

n airworthines s directiv e b

y operatin g 1 0 hour s pas t arequire dinspection , th e degre e o f hazardi s probabl y no t

a s grea t as whe n (he aircraf

t i s operate d10

0 hour s beyon dih e required . An di t i s no t mitigatin g whenaviolatio n doe s no t resul t i n actua l hami ; tha

t i s simpl y fortuitous . (2 ) fh e sanctio n range s reflec t the degre e o f

dange r normall y inheren t

in a n averag e violatio n o

f aregulation , withou t

aggravatin g circumstances . A s discusse din chapte r 7 , subparagrap h5.b. , a

n increas e in the degre e o f hazardma

y for mth e basi s for

exceedin g the sanctio nranges . Fo

r example , th e rang e fo

r a n unauthorize dlo w fligh t doe s no t assume extreni e departure s fromrequire daltitudes , fo r example , flying a

n airplan e ove r

acrowde dassembl y o f person s at

5 0 fee l f . Actio nTake n b y Employe r o r Othe r Authority . Thi s factor

ordinaril y involve s th e followin g elements : whethe r th e allege dviolator' s employe r ha s take n disciplinar y actio n an d whethe r crimina l prosecutio ni s involved . (1 ) Employmen t

discipline . Where th e violatio n woul dnomiall y cal l fo r acertai n typ e o f enforcemen t

action , th e FA A take s that actio n regardles s o f

an y actio n take n b y th e violator' s employer . Generally , th e FA A doe s no t credi t an employer' s disciplinar y actio n towardaperio d o f suspensio nth e FAA impose s agains t the violator' s certificat e becaus e o f th e different purpose s o f

government-ordered , a s contraste dwit hemployer-ordered , actions . (2 ) Criminal prosecution . When arisin g out o f th e sam e conduct , local , state , or federa l prosecutio ndoe s no t

preclud e th e FA

A fromtakin g appropriat e remedia l enforcemen t action ; no r 7- 606/03/201 0 17:0 8 FAX 202483514 2 FA A• > DM S 1021/02 5



### 10/01/0 7 2150.3 B doe s it preclud e th e FAA fro

mtakin g appropriat e punitiv e cnforccmen l action . Fo r case s wher e federal , state , o r

local authoritie s prosecut e criminally , th e FAA generall y doe s tak e remedia l enforcemen t

actior t if tha t i s warrante ddespit e th e crimina l prosecution . However , th e FA A doe s no t generall y take punitiv e legal enforcemen t actio n fo r th e same conduct , unles s i t believe s th e crimina l sanction s ar e not sufficien t t o provid e a

n adequat e deterren t

fo r ftjturc violation s b y th e violato r an dother s .similarly situated , o r whe n th e FAA want s to establis haviolatio n histoi y record . If

th e FAA decide s to procee dwit hapunitiv e civi l enforcement actio n i n additio n t o the crimina l prosecution , i

t generall y consider s th e crimina l penaltie s incurre din thos e proceeding s i n determinin g th e appropnat e amoun t o f sanctio n t

o b e sough t

i n the FAA' s punitiv e enforcemen t

action , g . Us e o f

aCertificate . Thi s facto r relate s to th e natur e o r

kindo f activity o r

operatio n involve da

t th e tim e th e violatio n wa s committed . Whethe r th e certificate holde r

wa s engage di

n student , private , commercial , o r airlin e activity bear s o

n th e ,s-everit

y o f th e sanction . Ai r

carrier s ar c hel dl o th e highes t

standar do f

care . Likewise , personne l engage dmair iransponalio n ar e hel dt o th e highes t

safet y standar d h . Viulatioi i History . 

### (1 ) A violation-fre e history i s th e expecte dnorm , no t th e exceptio n and , therefore , i s no t amitigatin g facto r

Sanctio n range s i

n th e tabl e generall y represen t th e normal rang e o f

sanctio n fo r asingle , first-time , inadvenen t violation . Give n th e expecte dnorm , aprio r violatio n recor d ca nb e evidenc e o f

apoo r complianc e dispositio n o r o f apalte mo f

disregar dfo

r th e FAA' s regulations , whic har e aggravatin g factors . A s aresult , aviolatio n history can justif y imposin g a sanctio n at

th e highe r

en do f th e norma l rang e o r

asanctio n beyon dth e norma l range . I t migh l als o justif y revocatio nrathe r

tha n suspensio n i f

th e partemo f

violatio n refleci s alac k

o f qualificatio nI

n addition , aviolatio n history migh t justif y acertificate suspensio n i f previousl y issue dcivi l penaltie s hav e no t produce dth e desire ddeterren t effect . I n decidin g whethe r

a violatio n histor y justifie s aggravatin g th e sanciio n o r changin g th e u.sua

l typ e o f sanction , th e FA A consider s th e lengt

ho f tim e that ha s elapse dbetwee n violations , whethe r th e violation s involve dth e sam e o r

similar regulations , an dwhethe r th e violation s ar

e factuall y similar , (2 ) Th e followin g action s constitut e violatio n history whe n they involv e regulator y violation s an dbecom e final ; order s o f amendment , modification , suspension , o r revocatio n o f

a n FA A certificaic ; order s assessin g acivi l penalty ; findings o f violatio n containe din aconsen t order , orde r

o f complianc e o r

denial ; an dfinding s o f

violatio n mad e b y afederal cour t In addition , aparty ma y agre e a s pa n o f asettlemen t

that th e FAA ma

y conside r

allege dviolation s a s findings o f

violatio n fo

r futur e sanctio n determinations . LDecisiona l Law . Decision s o f th e FA A decisionmake r represen t th e FAA Administrator' s positio no nissue s arisin g i n civi l penalt y assessmen t actions , includin g issue s regardin g sanctions . Th e polic y in thi s orde r als o represent s th e Administrator' s positio n o n sanction s in lega l enforcemen t actions . T o th e exten t

that thi s documen t

conflict s wi( hFA A decisionmake r

decision s publishe dbefor e thi s document' s issuance , the sanctio n guidanc e polic y i n thi s orde r

supersede s thos e decisions . However , FA A decisionmake r decision s publishe dafter 7- 706/03/201 0 17:0 8 FA X 202483514 2 FA A* DM S @|022/02 5



### 10/01/0 7 2150.3 B th e issuanc e o f

thi s documen t

iha i conflic t wit hth e polic y in thi s orde r supersed e thi s documen t an dar e controllin g j . Abilit y t o Absor b Sanction . Sanction s shoul db e deterrent . Whil e punitiv e .sanction s shoul dno t

b e undul y harsh , they shoul db c substantia l enoug ht o preven t violator s fro

mprofitin g fromthei r violations , that

is , th e sanciio n shoul db e hig henoug ht o remov e any profi t incentiv e fo r violation s Penaltie s shoul dneve r b c permitte dto b c acos t o f doin g business . Air

carriers , i n particular , are require db y law to hav e th e financial wherewitha l t o operat e accordin g t o establishe dsafet

y standards . Wliil e th e FA A doc s no t

allo w financial circumstance s t o excus e an y violation , i

t doe s conside r

aearner' s siz e andfinancial strengthi n choosin g the appropriat e sanctio namount . Th

e differenc e mth e penaltie s fixedi n th e la w fo r larg e an dsmal l busines s concern s recognize s thi s fact A civi l penalty tha

t ma y b c amer e cos t

o f doin g busines s t

o a majo r ai r carrie r migh l compe l asmal l ai r carrie r t o g o out o f business . Therefore , the FA A use s ai r carrie r siz e a s on e mean s o f

ensurin g arelativel y equivalen t deterrent effect o n eac hai i carrie r thai violate s th e sam e FA A regulation . Th e resultin g classificatio n o f air carrier s by siz e an drange s o f

civi l penaltie s ar e se t

fonhin pa n on e o f

the table . Fo r

al l entitie s an dindividuals , th e FA A consider s abilit y t o pa y acivi l penalty an dth e effec t acivi l penalty wil

l hav e o n a person' s ability t o continu e i n busines s to th e extent

i t know s suc hinformation . k . Consistenc y of

.Sanction . On e o f

th e agency' s goal s i s to achiev e relativ e consistenc y i n imposin g similar

sanction s for

similar violations . Th

e FAA pursue s (hi s objectiv e to a.ssur e fairnes s ands o th e sanction' s impac t ha s a n equivalen t

degre e o f

deienen t o r disciplinary valu e to other s similarl y situated . Thi s goa l ma y no t alway s b c achieved , however , becaus e o f th e inherentl y subjectiv e natur e o f th e exercis e o f

judgmen t i n settin g sanctions , 1 . Whethe r

th e Violatio nwa s Reporte dVoluntarily . (1 ) Th e FA A ha s program s tha t allo w person s t o repor t

voluntaril y apparen t

violation s an dreceive lesser

enforcemen t

actio n provide dcenai n criteri aar e met . Thes e program s includ e th e aviatio nsafety reportin g program , th e voluntary disclosur e reportin g program , an dthe aviatio n safet

y actio n program . Beside s thes e programs , th e FA A ma y gran t special enforcemen t consideratio n unde r

certai ncircumstance s t

o aperso n who , inciden t

t o hi s o r her repo n o f another' s violations , voluntaril y disclose s hi s o r her ow n participatio n i

n th e same o r

relate d violations . Thi s specia l enforcemen t consideratio n ma

y rang e frommitigatin g th e sanctio n to determinin g tha

t n o enforcemen t

actio n i s required . (2 ) I f aperso n i s no t

covere dunde r

on e ofthe.s e program s but nonetheles s voluntaril y report s a n apparen t

violatio n l o th e FAA befor e th e FAA discover s it , take s immediat e actio n t o correc t th e noncompliance , an dwork s wii hth e FAA o n step s to preclud e recurrenc e o f th e apparen t violation , th e FA A may conside r suc haction s i

n mitigatin g th e sanctio n fo r th e violation . m . Correctiv e Action . Th e FA A consider s correctiv e actio n amitigatin g factor in determinin g sanctio nprovide dth e correctiv e actio n exceed s th e minimu mregulatory o r statutory requirements . Th e amoun t o f credi t give n i n settin g asancrio n depend s o n th e exten t an dtimin g o f th e correctiv e action , that is , ho w extensiv e wa s (he correctiv e actio n an dho w quickl y wa s i ( taken . Implementin g ne w procedure s that ar e abov e (hos e require dunde r th e FAA' s regulation s 7- 806/03/201 0 17:1 0 FA X 202483514 2 FA A* DM S 1023/02 5

10/01/0 7 2150.3 B t o prcven ( futur e violation s ordinaril yi s considere d a miligaiin g facto ri n determinin g a n appropriat e sanciion . Correctiv e actio n take n afte rth e allege d violato rfirst become s awar e o f a deficienc ybu t befor e FA Adiscover yo f th e violatio n ordinaril ywarrant s greate rmitigatio n tha n correctiv e actio n tha ( i s take n onl yafte rth e allege d violato rreceive s notic e o f th e FAA' s enforcemen t action . Correctiv e ac(io n (ake n b ya n allege d violato rtha t simpl ybring s tha t perso n int o complianc e wit h th e statutor yo rregulator yrequirement s i s no t considere d i n mitigatio n o f sanction . T o mitigat e a sanctio n base d o n suc h correctiv e actio n woul d pu t a t a n economi c disadvantag e competitor s wh o hav e expende d (h e resource s necessar yl o maintai n complianc e S . Vs e o f Ih e Tabi co f Sanctions . a . General . Sanctio n determination s ar e no t accomplishe d throug h a stric t mathematica l formula ; rather , sanctio n determination s resul t fro m a judgmen t o f wher e a cas e lie s alon g ; i spectm m o f gravit yUltimately , th e circumstance s o f eac h eas e ar cevaluate d i n temi s o f th e need s o f safet yan d th e publi cinterest . b . Single , First-time , inadverten t Violations . (1 ) Par t 1 1 o f Ih e tabl e specifie s bot h th e norma l type s o f sanctio n (certificat e action , civi l penalt yaction , o rothe rtype ) an d th e norma l range s withi n thos e type s th e FA Aoidinwnl yseek s t o impos e i n a lega l enforcemen t actio n fo ra single , first-time viulalio n tha t i s generall y inadverten t (th e tabl e include s range s o f sanction s fo rsevera l violation s tha i usuall yar c intentional , fo rexample , interferenc e wit h a erewmember , smokin g o n a n aircraft) . I n addition , th e tabl e generall yreflect s a presumptio n tha t th e allege d violato rwant s t o compl ywit h th e la w an d t o remed yan ynoncomplianc e an d tha t th e allege d violator , therefore , ha s a constructiv e attitude . (2 ) Fo rfactor s b , d , o rh o f paragrap h 4 (tha t is , inadverten t an d no t deliberat e conduct , altitude , an d violatio n history) , th e FA Adoc s no t normall ydeviat e from th e range s liste d i n th e labl csolel ybase d o n th e inadvertenc e o f tli e violatio n o ro n th e allege d violator' s goo d reputation , pas t publi cservice , violation-fre e history , o rconsinictiv e attitude . An ymitigatin g circumstance s ar e t o b e fotm d i n th e fact s an d circumstance s o f th e violatio n itsel f (3 ) Applyin g range s withi n a sanctio n type . I n determinin g where , withi n eac h range , a sanciio n shoul d b e imposed , ih e FA Agenerall yconsider s factor s a , c , e , f , g , i , j , k , an d m o f paragrap h 4 (tha t is , natur e o f th e violation , leve l o f experience , degre e o f hazard , actio n b y employe ro rothe rauthority , us e o f certificate , decisiona l law , abilit yt o absor b sanction , consistenc yo f th e sanctio n wit h simila rcases , correctiv e action) , t o th e exten t ihc yar e applicabl e o rrelevant . Whe n determinin g a specifi csanciio n amoun t withi n a range , FA Aenforcemen t persoime l begi n wit h a n amoun t i n th e middl e o f th e rang e an d increas e tha t amoun t towar d th e highe ren d o f th e rang e fo raggravatin g factor s o rdecreas e tha t amoun t towar d th e lowe ren d o f th e rang e fo rmitigatin g factors . (4 ) Deviatin g fro m range s withi n a sanctio n type . Th e FA Amigh t impos e sanction s belo wth e norma l range s base d o n justifiabl e mitigatio n unde rfactor s j , I , an d m o f paragrap h 4 (tha t is , th e abilit yt o absor b th e sanction , volunur yreporting , correctiv e action) . Th e FA Ama y 7- 906/03/201 0 17:1 0 FA X 202493514 2 FA A* DM S 0024/02 5



### 10/01/0 7 2150.3 B impos e sanction s abov e th e nomia l range s whe n th e followin g circumstances , relatin g t o factor s b , d , e . an dho f

paragrap h4 are present : th e violatio n i s othe r than inadvertent' , th e violato r ha s aviolatio nhistory , the violatio n involve s asignifican t degre e o f

hazard , o r

th e violato r

ha s a poo r complianc e disposition . Th e range s als o ma y be exceede dwhen th e cas e involve s multipl e violation s (Se e chapte r

7 , paragraph s 6 and7 ) c . Type s o f

Sanction . (1 ) (Jeneral . Th e FA

A ordinaril y doc s no l initiate punitiv e civi l penall y an dpunitiv e certificat e action s (that

is , fixed-periodcenificat e suspensions ) agains t acertificat e holde r

fo r th e sam e offense . Whil e electin g to impos e on e sanctio n i s no t alegal ba

r t o aconcurrcn i proceedin g l o impos e another , pursuin g bot hacdon s solel y fo

r puni(iv e purpose s usuall y i s no t necessary . Th e FA A take s remedial andpunitiv e aciion s i n th e sam e case , however , when warranted . (2 ) Selectin g type s o f

sanction s Excep t

i n exceptiona l circumsiances , th e FAA use s th e typ e o f sanctio n recommende di n th e tabl e Th e FAA mus t impos e any sanctio n mandate db y stamt c (fo r

example , revocatio n unde r 4 9 U S C . § § 44106(b) , 44710(b) , and44726(b ) unles s waive dby (he Administrator) . 6 . Genera l Guidanc e o nMultipl e Act s o r Multipl e Violations . a . Descriptio n o f

Multipl e Violations , h'nforcemen i action s often involv e multipl e violations : multipl e violation s o f asingl e regulation ; asingl e violatio n o f multipl e regulations ; o r multipl e violation s o f

multipl e regulations . I

n addition , unde r

4 9 U.S.C . § 4630 1 (a)(2) , i f a violatio n i s acontinuin g one , eac hda y th e violatio n continues , o r eac hflight

fo r whic hth e violatio nwa s conunitted , constioite s aseparat e offense , b . Genera l Sanctio n Guidance . Multipl e violation s ordinaril y resul t i n hig hsanctio n amounts . Suc hsanciio namount s ordinaril y are no t determine db y simpl y addin g u p th e individua l penaltie s for

multipl e violation s se t

fonhi n th e table , however . Simpl y addin g u p th e individua l penaltie s for

eac hviolatio n coul dresul t in compoundin g asanctio n in a disproportionatel y hars hmanne r fo r th e conduc t

involved . Conversely , multipl e violation s ma y b e s o seriou s i

nthei r consequence s fo

r safet y an dth e publi c interes t

a s to requir e apenalt y greate r than th e su mo f

th e recotmnende damoun t o f penalt y provide dfo

r i n (he tabl e for

eac h violation . c . Singl e Ac t

o f Noncomplianc e Resultin g i aMultipl e Violations . When asingl e instanc e o f

noncomplianc e resuh s in multipl e violation s o f genera l an dspecifi c regulation s involvin g th e sam e o r

similar conduct , th e FA A ordinaril y doe s no t compoun dthe sanctio n to reflec t th e amoun t

o f sanciio n recommende di n th e tabl e fo r

eac hregulatory violation . In calculatin g th e amoun i o f sanctio n fo

r multipl e violations , FA A enforcemcn l personne l conside r Whe n th e violatio n i s on e ihat i s generall y inherentl y deliberat e (e.g. , imerferenc c wit herewmembe r

o r smokin g violations) , facto r

b . i s not considere di ndetenuinin g >¥hcthcr th e sanctio nshoul db e abov e ih e range i nth e table . Th e range s inth e tabl e fu r suc hviolation s alread y h»v c take n int o consideratio n th e inherentl y deliberat e natur e o f th e violaiioi\ . 7-1 0Oe/03/201 0 17:1 0 FA X 2024835U 2 FA A* DMS 12025/02 5

10/01/0 7 2150.3 B th e totalit yo f circum.stance s relatin g t o (h e muUipl e violations , includin g th e allege d violator' s degre e o f culpability , an d whethe rth e allege d violato rha d take n steps , althoug h unsuccessftil , t o preven t th e violations . d . Typ e o f Lega l Enforcemen t Action . Wher e thi s guidanc e designate s th e ryp e o f lega l enforcemen t actio n fo ra singl e violation , th e FA Aordinaril yselect s th e sam e typ e o f sanciio n fo rmultipl e violation s o f a simila rnatur e Th e seriousnes s o f multipl e violations , however , ma y recjuir e changin g wha t i s nomiall ya civi l penalt yactio n ( o a eeriific;il e actio n or . sometimes . 3 punitiv e cenificat e suspensio n to n remedia l revocatio n action . 7 . Specia l Consideration s fo rNwmer(;ti s Multipl e Violation s Resultin g Fro m a n Initia l Ac t o rOmission . T o deicmiin e penaltie s fo rnumerou s multipl e violation s tha t resul t fro m a n initia l ac t o romission , th e FA Aapplie s (h e specia l consideration s an d guidanc e i n ehapic r7 , subparagraph s 7.a . throug h e . Ihes e case s involv e suc h a hig h numbc i o f multipl e violation s tha t i f FA Aenforcemen t personne l wer e simpl y1 0 ad d th e recommende d amount s o f penalt yfo rciic h flight o rda ytha t constitute s a separat e violation , th e resultin g sanctio n amoun t coul d b c disproportionatel yhars h fo rth e misconduc t involved , i n a n averag e case . <i . Determinin g Propose d Penalty . T o deiermin e :i n appropriat e civi l penalt yi n a cas e involvin g numerou s multipl e violation s resultin g fro m a n initia l ac t o i omissio n (fii rexample , a n aircraf t operate d o n a doze n o rmor e flights afte rbein g improperl yreturne d t o service) , FA A enforcemen t personnel : (1 ) Identit yeac h initia l ac t o romissio n tha t cau.sc d o rresulte d i n th e multipl e violation s (fo rexample , imprope rmaintenanc e plu s imprope rretur n t o service ; failur e t o maintai n a qualit y contro l system) . (2 ) Consul t th e tabi ci n Appendi xD an d th e genera l guidanc e i n chapte r7 , paragrap h 4 , o n aggravatin g an d mitigatin g factor s t o determin e th e amoun t o f penall yappropriat e fo reac h initia l ac t o romissio n tha t cause d o rresulte d i n th e multipl e violation s (fo rexample , i n airworthines s cases , a penalt yfo rth e ac t o f imprope rmaintenanc e o rinspection ; i n manufacturin g cases , a penalt yfo rth e ac t o f failin g t o maintai n a qualit ycontro l system ) (3 ) Determin e th e amoun i o f penalt yfo rth e numerou s multipl e violation s b yapplyin g th e guidanc e i n chapte r7 , subparagraph s 7.b . throug h d . O f particula rimportanc e i n determinin g a n appropriat e sanctio n fo rnumerou s multipl e violation s i s th e degre e o f th e allege d violator' s culpabilit yfo rth e multipl e violations . Alowe rdegre e o f culpabilit yi s presen t whe n th e allege d violato rneithe rkne wno rwa s likel yl o discove rth e continuin g violations . Fo rexample , onc e imprope rmaintenanc e wa s don e ther e wer e n o sign s o f i i fro m suc h thing s a s discrepancie s reporte d b yth e crew , an d n o inspection s tha t woul d hav e le d t o it s discover ywer e scheduled - A mor e significan t degre e o f culpabilit yi s presen t whe n factor s suc h a s th e followin g ar e present :

• th e initia l ac t o romissio n wa s entere d i n record s (ha i shoul d hav e le d t o immediat e deicclio n an d correction ;

• th e initia l ac t o romissio n remaine d undetecte d an d continue d tliroug h require d inspection s o rcheck s designe d t o revea l suc h discrepancies , 7-1 1