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September 25 , 2015

Exemption No. 10871B Regulatory Docket No. FAA

- 2013

- 0221

Ms. Caitlin M. Randles Supervisor, Flight Test Engineering The Boeing Company

P.O. Box 3707 Seattle, WA 98124

Dear Ms. Randles:

This letter is to inform you that we have granted, in part, your petition to amend Exemption

No. 10871, as amended. It explains the basis for our decision, describes its effect, and lists the

revised conditions and limitations

.

The Basis for Our Decision

By letter dated October 2, 2014, you petitioned the Federal Aviation Administration (FAA) on behalf of The Boeing Company (Boeing) for an amendment to Exemption No. 10871, as amended. That exemption from §§ 61.75(d)(2) and 61. 117 of Title 14, Code of Federal Regulations (CFR) allows certain foreign pilots exercising private pilot privileges to act as a flight crewmember on Boeing aircraft. Specifically, the exemption allows these pilots to fly as

second

- in

- command (SIC) while c onducting evaluation and demonstration flights within the United States for potential buyers of those aircraft or on behalf of their respective civil aviation authority (CAA).

A summary of the petition was published in the Federal Register on May 1 8 , 201 5, (80 FR 28341 ). No comments were received.

In its letter, Boeing requested several amendments to Exemption No. 10871A:

1) Exemption No. 10871A allowed sales demonstration and evaluation flights only. Boeing requests the FAA remove the adjective “sales” , so that the text reads “demonstration and evaluation flights”. This would allow additional relief, including2

operations by foreign pilots from aviation

- oriented magazines and foreign pilot organizations. In its petition, Boeing indicates it would benefit from those entities’ assessment of its products. Those assessments, according to Boeing, are an integral part of Boeing’s business model and will lead to increased sales, and will contribute to maintaining the United States’ foreign trade balance.

The F AA finds that this amendment would unacceptably broaden the relief granted in Exemption No. 10871, because the exemption could be used for a much wider scope

of demonstration and evaluation activities and would include any person associated with a foreign pilot organization or aviation publication

. As these individuals can evaluate the aircraft to a significant degree without an exemption by using a flight simulator, we do not envision a burden to Boeing from excluding them from this exemption. We find that adding this relief would unnecessarily affect risk and the relief would no longer meet an equivalent level of safety.

2) Condition/Limitation No. 8 of Exemption No. 10871A requires that the foreign pilot acting as SIC be an “authorized representative of a legitimate potential purchaser of the type aircraft being flown.” Boeing requests that the FAA amend this text because some of the foreign pilots represent entities that are already Boeing customers. The FAA does not envision any safety or public interest impact from this change, and has

amended the text in Condition/Limitation No. 10 (separated from former Condition/Limitation No. 8) to accommodate Boeing’s request.

3) Condition/Limitation No. 10 of Exemption No. 10871A identifies the supernumeraries

allowed aboard during flights operated under the exemption. In its petition, Boeing asks for relief for additional personnel, including: a) Engineers and other customer representatives, including corporate executives, managers, sales agents, operational personnel, a nd unnamed others; b) Any persons and property that may support demonstration flights who represent qualified aviation press or foreign pilot organizations, including photographers and any other technical experts; and, c) Any Boeing personnel required to support demonstration flights, including interpreters and any persons associated with sales, public relations, and photography.

The FAA has considered this request and finds that the amendment requested by Boeing does not meet an equivalent level of safety.

Th e conditions and limitations of Boeing’s first grant of exemption for this relief (Exemption No. 10061, issued on 5/7/2010), did not allow for any supernumeraries :

“ No person or property may be on board the aircraft, other than necessary for conduct of the flight. ” After considering a petition from Boeing to amend this requirement, the FAA on September 30, 2013 amended Boeing’s subsequent exemption (Exemption3

No. 10871), allowing limited supernumeraries. The current exemption (10871A) has that same relief, and allows Boeing and CAA flight test directors and as many Boeing and CAA flight test engineers as needed to answer questions related to airplane and systems operation.

The FAA finds that Boeing can already transport the additional personnel requested in its October 2, 2014 letter; these persons could be carried aboard any Boeing aircraft for any demonstration or evaluation flight with any properly certificated (non

- exempted) flight crew. The FAA finds that since Boeing could offer flights for these addit ional

individuals outside of this exemption , the rationale for including those individuals on flights using the exempted flightcrew does not meet the equivalent level of safety position cited by the FAA in its original grant of this relief.

In its petiti on, Boeing asserts that its supernumeraries are already limited, in accordance with the requirements of 14 CFR part 21, for operations using a special airworthiness certificate in the experimental category. The limitations for supernumeraries in the exempt ion are related to the nonstandard, unique configuration of the flight crew, not to the airworthiness certification of the aircraft. T he expanded relief requested by Boeing is inadequately supported and is not consistent with our original evaluation of equ ivalent level of safety and public interest in Exemption

Nos. 10061 and 10871. Accordingly, the FAA has not amended Condition and

Limitation No. 3 (formerly Condition/Limitation No. 10).

4) The petition includes numerous suggestions for editorial and typogr aphical changes to the conditions and limitations, and proposes that the FAA use Boeing’s rewritten conditions and limitations provided in a separate document. The FAA has reviewed its conditions and limitations for editorial updates and has made some mino r format changes, including some of the changes Boeing recommends.

In reviewing the conditions and limitations, the FAA amended Condition/Limitation

No. 1, allowing exempted operations in any aircraft identified on Boeing’s Production

Limitation Record. This change will pre vent Boeing from having to petition for amendments to this exemption when it develops new models. The FAA also amended former Condition/Limitation No. 5(c) (now 7(c)) to correctly cite the purposes for a special airworthiness certificat e in the experimental category for market survey. The previous text (“for the purpose of demonstration and flight evaluations conducted by a foreign civil aviation authority ”) is not one of the identified purposes allowed under a special airworthiness cert ificate in the experimental category.

In addition to the above, the FAA has made renumbering changes to the condition and limitations. The allowed supernumeraries have been moved from Condition/Limitation

No. 10 to No. 3. New Condition/Limitation No. 10 identifies the permitted organizations the person acting as SIC may represent (separated from former

Condition/Limitation No. 8). Consequently, former Condition/Limitation Nos. 3, 4, 5,4

6, 7, and 8 have shifted to Condition/Limitation Nos. 4, 5, 6, 7, 8, a nd 9. Former Condition/Limitation No. 9 has shifted to Condition/Limitation No. 11, and former

Condition/Limitation No. 11 has shifted to Condition/Limitation No. 12.

Our Decision

The FAA has determined that the justification for th e issuance of Exemption No. 10871 , as amended, remains valid with respect to this exemption and is in the public interest. Therefore, under the authority provided by 49 U.S.C. §§ 106(f), 40113 and 44701, which the FAA Administrator has delegat ed to me, I hereby grant, in part, the petition of The Boeing Company for an exemption from 14 CFR §§ 61.75(d)(2) and 61.117, subject to the following

conditions and limitations.

Conditions and Limitations

1. This exemption is issued for the purpose of allowing certain flights using any Boein g model aircraft identified on Boeing’s FAA

- issued Production Limitation Record. The flights are limited to those required for demonstration and evaluation: a) by any legitimate Boeing aircraft customer or potential customer , or ; b) by request of any foreign civ il aviation authority (CAA)

.

2. The privileges of this exemption are intended to enable a foreign pilot who holds a U.S. private pilot certificate with airplane multi

- engine class rating and an instrument airplane rating (subject to the requirements of Condi tion/Limitation No. 6) to act as SIC in the operations described in Condition/Limitation No. 1.

3. Boeing is authorized to conduct flights under this exemption only with pilots and property identified in these conditions and limitations, and the following no n

crewmembers: a) any Boeing or foreign Civil Aviation Authority (CAA) Flight Test Directors; b) any Boeing or foreign CAA Flight Test Engineers; and, c) any Boeing or foreign CAA engineers as necessary for evaluation of systems operation.

4. The privileges of this exemption are not valid unless Boeing has a letter issued by the FAA Flight Standards District Office (FSDO), 1601 Lind Ave., SW, Renton, Washington 98057, specifically indicating approval of each of the foreign pilots operating Boeing aircraft under the p rivileges of this exemption.

5. Each foreign pilot identified in the documentation required under Condition/Limitation No. 4 must hold at least an FAA private pilot certificate with

instrument and multi

- engine ratings. Any person authorized by the FAA Admini strator to issue a private pilot certificate on the basis of a foreign pilot license under § 61.75 may place an instrument rating on the certificate for that applicant (upon request of the applicant) without the applicant having passed the knowledge test r equired by5

§ 61.75(d)(2). The person issuing the § 61.75 private pilot certificate must indicate on that certificate the following limitation:

Instrument rating privileges are only valid for use under the privileges of Exemption No. 10871.

6. The privileges of this exemption may not be used for operations that involve: a) delivery of an aircraft; b) maintenance or manufacturing flight testing; c) flights operated under a special airworthiness certificate in the experimental category other than for the purpose of mark et survey; or, d) flights operated for the purpose of crew training.

7. Boeing must remain in full operational control of any aircraft operated using the privileges of this exemption.

8. The pilot

- in

- command (PIC) of any flights operated using the privileges of t his exemption must: a) hold a valid U.S. commercial pilot certificate or airline transport pilot certificate with the appropriate type rating; b) hold a valid U.S. first

- or second

- class medical certificate; c) be directly employed by Boeing; and, d) must act as the P IC at all times during the flight.

9. The person acting as SIC of any flights operated using the privileges of this exemption

must: a) hold a valid pilot certificate issued by an International Civil Aviation Organization (ICAO)

- member state containing commercia l pilot certification (or equivalent) with instrument and multi

- engine ratings, or airline transport pilot certification (or equivalent) with a multi

- engine rating. The pilot certificate must be in the English language, or must be accompanied by

documentat ion in the English language translating certification, privileges, and validity of those certificates. b) hold any valid medical certificate issued under 14 CFR part 67, or a medical certificate issued by the ICAO

- member state that issued the person’s foreign pilot certificate identified in Condition/Limitation No. 9(a).

10. The person acting as SIC of any flight operated using the privileges of this exemption must be an authorized representative of: a) any legitimate customer or potential customer for the model air craft being

flown , or ; b) any CAA seeking demonstration and evaluation of the model aircraft being

flown

.6

11. Any flight operated using the privileges of this exemption must have an additional person aboard (other than the persons identified in Condition/Limitat ion Nos. 2 and 8)

who: a) is employed by Boeing; b) is not acting as PIC of the aircraft; c) holds the appropriate U.S. airman and medical certificates to act as SIC of the aircraft being flown; and, d) Boeing has found to be qualified to act as SIC of the aircraft be ing flown.

12. This exemption applies to flights conducted within domestic United States airspace. Boeing may exercise this relief for operations within the territory and airspace of a foreign country only with the specific permission of the foreign CAA.

Th e Effect of Our Decision

The FAA has extended the termination date of Exemption No. 10871, as amended, to September 30, 201 7 , unless sooner superseded or rescinded.

Sincerely,

/s/ John Barbagallo Deputy Director, Flight Standards Service