AFS-12-181-E March 21, 2012

Exemption No. 6963G Regulatory Docket No. FAA-2000-8463

Robert E. Cohn, Esq. Counsel for Peninsula Airways, Inc. Hogan & Hartson LLP 555 Thirteenth Street, N.W. Washington, DC 20004

Dear Mr. Cohn:

This letter is to inform you that we have granted your petition to extend Exemption No. 6963, as amended. It explains the basis for our decision and describes its effect, lists the conditions and limitations, to include date of expiration.

The Basis for Our Decision

By letter dated January 19, 2012, you petitioned the Federal Aviation Adm inistration (FAA) on behalf of Peninsula Airways, Inc. (PenAir), for an extension of Exemption No. 6963, as amended. That exemption from § 91.323(b)(4) allows PenAir to operate two Grumman Goose G-21A amphibian aircraft at a weight th at exceeds the certificated weight at which the climb performance was demonstrated.

In your petition, you indicate that there has been no change in the conditions and reasons relative to public interest and safety that were the basis for granting the original exemption.

The FAA has determined that good cause exists for not publishing a summary of the petition

in the Federal Register because the requested extension of the exemption would not set a precedent, and any delay in acting on this petition would be detrimental to PenAir.

Our Decision

The FAA has determ ined that the justification for the issuance of Exemption No. 6963, 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. 40113 and 44701, which the FAA2

Administrator has delegated to me, I grant your petition, subject to the following conditions

and limitations.

Conditions and Limitations

1. Before any operation is conducted under this exemption, the FAA principal operations inspector (POI) assigned to PenAir must amend PenAir’s operations specifications to include this exemption.

2. Before any operation is conducted under this exemption, PenAir must provide the POI with acceptable documentation applicable to each route PenAir proposes to operate, demonstrating to the POI’s satisfaction that suitable alternative landing areas that would permit a safe landing by the affected aircraft in the event of the failure of one engine are available at all times.

a. This documentation must establish to the POI’s satisfaction that the proposed landing area is free of hazards including, but not limited to, ice, logs, any living being, or any other substance that could endanger a safe landing.

b. This documentation must establish to the POI’s satisfaction that the proposed route to each landing area is free of any obstruction that extends above the surface that could endanger the descent to the landing area.

3. Each PenAir pilot in command must be trained in the provisions contained in this exemption before conducting operations under this exemption.

4. All operations under this exemption are limited to visual flight rules conditions.

5. This exemption is not valid for operations outside of the United States.

The Effect of Our Decision

Our decision extends the term ination date of Exemption No. 6963, as amended, to May 31, 2014, unless sooner superseded or rescinded.

Sincerely,

/s/

John W. McGraw Acting Director, Flight Standards

Service