Exem ption No. 10282

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

WASHINGTON, DC 20591

In the matter of the petition of

BCC EQUIPMENT LEASING

CORPORATION Regulatory Docket No. FAA-2011-0528

for an exemption from Special Federal Aviation Regulation No.77

of Title 14, Code of Federal Regulations

GRANT OF EXEMPTION

By letter dated May 20, 2011, Daniel E. Laronde, Project Manager, Aircraft Technical Services, BCC Equipm ent Leasing Corpor ation (BCC), 500 Naches Avenue, SW., 3 rd Floor, Renton, Washington 98057, petitioned the Federal Aviation Administration (FAA) on behalf of BCC for an exemption from Special Fede ral Aviation Regulation (SFAR) No. 77 of Title 14, Code of Federal Regulations (14 CFR). The proposed exemption, if granted, would permit a BCC-contracted flightcrew to fly a BCC-owned lease defaulted B-737-400 airplane (the aircraft) out of Baghdad International Airport (BIAP) and the territory and airspace of Iraq in order to ferry the aircraft back to the United States.

The petitioner requests relief from the following regulation:

SFAR No.77 – Prohibition Against Certain Flights Within the Territory and Airspace of Iraq. Paragraph 2, Flight prohibition, prescribes that no person may conduct flight operations over or within the territory of Iraq except as provided in paragraphs 3 and 4 of this SFAR. Paragraph 3, Permitted operations, prescribes that this SFAR does not prohibit persons described in paragraph 1 from conducting flight operations within the territory and airspace of Iraq where such operations are authorized either by another agency of the United States Government with the approval of the FAA or by an exemption issued by the Administrator.

AFS-11-317-E2

The petitioner supports its request with the following information:

The petitioner states that this request applies to BCC-owned B-737-400, MSN 25109, Registration N416BC, and the airmen contracted by BCC to conduct the requested flight. The aircraft is currently parked at BIAP and was flown into BIAP under Jordanian registry while in operation by Jordanian air carrier Solitaire Airlines. Prior to the flight into BIAP, BCC served Solitaire with a formal notice of lease default and on March 30, 2011, BCC formally took action to terminate the lease; however, Solitaire refused to acknowledge the termination of the lease and continued to operate the aircraft notwithstanding the lease termination. BCC immediately requested deregistration of the aircraft at the Jordanian Civil Aviation Regulatory Commission (CARC), which would have the effect of grounding the aircraft. As the process for Jordanian deregistration was being worked, Solitaire continued to operate the aircraft. BCC initially requested deregistration of the aircraft on April 21, 2011, and supplemented that request with additional submissions to CARC.

BCC states that it had no control over the timing of the actual deregistration or the location of the aircraft at the time of deregistration. On May 10, 2011, the CARC deregistered the aircraft. At the time of deregistration, the aircraft was parked on the BIAP ramp.

BCC claims that currently the aircraft is registered with the FAA as N416BC and is being prepared for a ferry flight to the United States. The planned route will be Baghdad – Luxembourg – Keflavik, Iceland – Bangor, Maine – Goodyear, Arizona. In preparation for the flight, BCC will carry out a line service check and preflight inspection in accordance with the manufacturer’s applicable aircraft maintenance manuals. The maintenance will be performed by Turkish Technix of Istanbul, Turkey, a part 145 certificated repair station. BCC will make application to the FAA for a special flight permit for the intended flights. Once satisfactory condition of the aircraft has been confirmed by a FAA designated airworthiness representative (DAR), theaircraft will be issued a special flight permit. The flight will be conducted by BCCcontracted pilots who are qualified U.S. Airmen. The contracted flightcrew will be responsible for flight planning and flyover permission from civil aviation authorities (CAA) of countries on the planned route.

BCC states that SFAR 77 does not permit a means for BCC to fly the aircraft out of Iraq and back to the United States where proper maintenance and storage of the aircraft can be accomplished. The need to get the aircraft out of Iraq as quickly as possible is a matter of high public interest. The longer the aircraft remains idle in this unfavorable environment and without access to qualified local maintenance personnel or facilities, the risk for additional flight delays will continue to expand. It is difficult to determine how long the aircraft could remain parked in this situation at BIAP or the actual economic impact for doing so; however, it is certain that the longer the aircraft remains in Iraq, the condition of the aircraft will continue to diminish and the residual value of3

the aircraft will be impacted negatively, as well as the airworthiness of the aircraft due to the lack of proper maintenance and storage available to BCC.

BCC indicates that it is important to note that prior to delivery of the aircraft to Solitaire on October 15, 2010, the aircraft had undergone a major inspection at AAR aircraft Service, Indianapolis. The aircraft was flown to Amman, Jordan, where it was parked until February 26, 2011, while Solitaire was awaiting the issuance of an operating certificate from the CARC. Other than the U.S. registration marks placed onto the fuselage as required by part 45, there are no other U.S. identifying markings on the aircraft. In fact, the flag of Jordan remains painted on the fuselage minimizing the risk for this aircraft to be identified as a U.S. product.

The FAA has determined that good cause exists for waiving the requirement for Federal Register publication because the exemption, if granted, would not set a precedent, and any delay in acting on this petition would be detrimental to BCC.

The FAA’s analysis is as follows:

The FAA has considered fully the petitioner’s request and supporting information and finds that the circumstances presented by the petitioner justify a grant of exemption. For the following reasons, the FAA finds the petitioner has sufficiently shown that a grant of exemption would be in the public interest and that a level of safety equivalent to that provided by the regulations would be maintained:

Public Interest

SFAR 77 was issued because tensions and instability in Iraq increase the threat of harm to U.S. operators and civil aircraft operating in this area. The same public interest supporting the issuance of SFAR 77, namely, k eeping U.S.-registered aircraft out of Iraq, supports the removal of a U.S.-registered aircraft from Iraq. Moreover, the BCC had no control over when the Jordanian CARC deregistered the aircraft. However, since the CARC deregistered the aircraft while it was parked at BIAP, the aircraft’s current location places an undue risk on a U.S.-registered aircraft. The FAA finds that it is in the public interest to facilitate the aircraft’s departure and prevent prolonged undue hazard as a result of potential threats to persons and U.S.-registered aircraft in

the area.

Equivalent Level of Safety

The FAA finds that an expeditious departure of the aircraft can be conducted at a level of safety equivalent to that provided by the regulations because:

1. The aircraft has no U.S. marking except for N416BC.

2. The aircraft is painted with a Jordanian flag.4

3. A special flight permit will be issued for the flights.

4. BCC will ensure the contracted aircrew flight plans and files all required

documentation.

5. BCC will ensure the contracted aircrew receives a threat assessment briefing before the flight departs BIAP.

6. BCC-contracted aircrew will operate the aircraft from BIAP in accordance with threat assessment and local operating rules/procedures to exit SFAR area expeditiously to minimize hazards to the aircrew and aircraft.

The FAA’s Decision

In consideration of the foregoing, I find that a grant of exemption is in the public interest. Therefore, pursuant to the authority contained in 49 U.S.C. §§ 40113 and 44701, delegated to me by the Administrator, BCC Equipment Leasing Corporation is granted an exemption from 14 CFR SFAR 77 to the extent necessary to a llow BCC to fly aircraft N416BC out of BIAP and out of the territory and airspace of Iraq, subject to the conditions and limitations listed

below.

Conditions and Limitations

1. A special flight perm it must be obtained before the intended flights.

2. The flight will be conducted by BCC contracted pilots who are qualified U.S.

airmen.

3. The contracted pilots and BCC will be responsible for flight planning and flyover permission from CAAs of countries on the planned route.

4. BCC will ensure the contracted pilots receive a current threat assessment briefing from the U.S. Embassy before the flight departs BIAP.

5. BCC-contracted aircrew will operate the aircraft from BIAP in accordance with threat assessment and local operating rules/procedures to exit SFAR area expeditiously to minimize hazards to the aircrew and aircraft.

6. BCC will notify FAA of the specific date of flight operations 72 hours in advance, and will provide a flight update to the FAA Washington Operations Center (WOCC) at 202-267-3333 when the aircraft has left Iraqi airspace.

Relief from SFAR 77 is also granted to the BCC- contracted airmen who will be exercising the privileges of airmen certificates issued by the FAA in operating the aircraft in the territory5

and airspace of Iraq to the extent necessary to conduct the flight operations that are the subject of this grant of exemption.

This exemption terminates on July 15, 2011, unless sooner superseded or rescinded.

Issued in Washington, D.C., on June 7, 2011.

/s/

John W. McGraw Acting Director, Flight Standards

Service