Pinnacle Airlines Petition for Exemption Page 1 July 14, 2011

U.S. Department of Transportation Docket Management System 1200 New Jersey Avenue, SE. West Building Ground Floor, Room W12-140 Washington, DC 20590

SUBJECT: Petition of Pinnacle Airlines, Inc. fo r Exemption from 14 C.F.R. Part 121 Appendixes I and J, and 49 CFR Part 40

Ladies and Gentlemen: Pursuant to the provisions of FAR § 11.61(b) and §11.81, Pinnacle Airlines, Incorporated, operating certificate REXA257A, respectfully submits this petition for exemption in accordance with the procedures set forth under the FAA's re gulation for general rulemaking procedures (14 CFR part 11).

(A) CONTACT INFORMATION:

Craig L Chilcote Vice President Safety, Security and Compliance Pinnacle Airlines, Inc.

1689 Nonconnah Blvd.

Suite 111 Memphis, TN 38132 901-348-4269 (phone) 901-349-5405 (fax)

(B) THE SPECIFIC PROVISIONS OF 14 CFR FROM WHICH PINNACLE SEEKS EXEMPTION, AND A BRIEF DESCRIPTION OF EACH REQUESTED EXEMPTION:Pinnacle Airlines Petition for Exemption Page 2 In July, 2010, Pinnacle Airlines, Inc (“Pinnacle”) purchased Mesaba Airlines, a Regional Airline based out of Minneapolis, MN. Due to the purch ase, there is a planned merger of assets from Mesaba Airlines to Pinnacle. The asset merger w ill include an estimated 1,000 “Safety Sensitive” employees as well as aircraft and other equipment. Pursuant to 14 C.F.R. §11.61, during this transfer, Pinnacle is requesting exemption from the following regulations (table below). It would not be practical for Pinnacle to comply with these regulations and still meet the operational requirements of this asset merger. Since both ai rlines have been operating safely under the listed regulations, any exemption from these regulations would not affect the safety of airlines and would still meet the intent of the regulations requested exempt.

Request

Number Regulation Subpart Subject Description

1 14 CFR

Part 120 109 Pre-Employment Testing Permanently exempt Mesaba employees covered under the FAA approvedMesaba operating certificate from preemployment drug testing requirements

when transferred to the Pinnacle Airlines operating certificate. This exemption would take effect for employees transferred on Sept 15, 2011 and expire upon the completed merger but no later than Sept 15, 2012.

2 49 CFR

Part 40 25 Drug and Alcohol Testing

Records Permanently exempt Mesaba employees

covered under the current FAAapproved Mesaba Operating Certificate from drug and alcohol testing record check requirements. This exemption would take effect for employees transferred on Sept 15, 2011 and expire upon the completed merger but no later than Sept 15, 2012.

3 49 CFR

Part 40 26 MIS Reports Temporary relief is requested regarding possible MIS statistical anomalies as a

result of this asset transfer effective from the start of the asset transfer Sept 15, 2011 and extending one year past the completion of the merger.

4 49 CFR

Part 40 321 General Confidentiality Temporary relief is requested from confidentiality restrictions in the release of drug testing information between

airlines to allow for full disclosure on pre-employment and follow-up testing. This exemption would take effect for employees transferred on Sept 15, 2011 and expire upon the completed merger but no later than Sept 15, 2012. 5 49 CFR 333 Records Temporary relief is requested fromPinnacle Airlines Petition for Exemption Page 3 Part 40 Retention producing records in the time required by the DOT agency. Temporary relief is requested from the start of the asset transfer May 7, 2011 and extending one year past the completion of the merger.

6 49 CFR

Part 40 Subpart

R Public Interest

Exclusions Temporary relief from PIE if services are not compliant with DOT agency drug and alcohol testing regulations.

7 14 CFR

Part 120 109(b) Random Testing Temporary relief is requested regarding

MIS statistical anomalies as a result of the acquisition of assets from Mesaba. Temporary relief is requested from the start of the asset transfer Sept 15, 2011 and extending one year past the completion of the merger.

8 14 CFR

Part 120 217(c) Random Testing Temporary relief is requested regarding

MIS statistical anomalies as a result of the acquisition of assets from Mesaba. Temporary relief is requested from the start of the asset transfer Sept 15, 2011 and extending one year past the completion of the merger.

9 14 CFR

Part 120 115 EAP Permanently exempt Mesaba employees covered under the FAA approved Mesaba operating certificate from the requirement for EAP training and distribution of policies. This exemption would take effect for employees transferred on Sept 15, 2011 and expire upon the completed meger but no later than Sept 15, 2012.

10 14 CFR

Part 120 223 Alcohol misuse

information and training. Permanently exempt Mesaba employees covered under the FAA approved Mesaba operating certificate from the requirement for alcohol misuse training and distribution of policies. This exemption would take effect for employees transferred on Sept 15, 2011 and expire upon the completed merger but no later than Sept 15, 2012.

(C) THE EXTENT OF RELIEF PINNACLE SEEKS, AND THE REASON PINNACLE SEEKS

THE RELIEF:

Due to the planned merger of assets from Mesaba Airlines by Pinnacle, it would be impractical for Pinnacle to comply with all the DOT/F AA Anti Drug and Alcohol Misuse PreventionPinnacle Airlines Petition for Exemption Page 4 Program (AMPP) policies. With the expected surge of approximately 1,000 employees (an increase of nearly 38 percent) the administrative burden imposed on Pinnacle would not be financially practical. Since Mesaba Airlines and Pinnacle maintain similar policies, it is our determination that by accepting these exemptions there would not be any risk to the general public or transportation industry.

The safety sensitive employees transferring from Me saba Airlines to Pinnacle will be conducting

the same duties from one airline to the other and all will have been included in Mesaba Airlines, drug abatement program. Pinnacle is requesting exemption to allow Mesaba to transfer all preemployment drug testing records and back ground history records to Pinnacle to meet the requirements for verified negative pre-employment drug testing and 49 CFR part 40.25 release of drug testing record requests. The former Mesaba pre-employment records will be shipped and physically maintained in a single repository by Pi nnacle Airlines at our headquarters in Memphis, TN. Since the airlines maintain similar drug and alcohol programs and policies, Pinnacle is also requesting exemption from the requirements to pr ovide drug and alcohol policies, and perform employee drug and alcohol training. Keep in mind that Pinnacle maintains its Anti Drug and Alcohol Misuse Prevention Program on line and is available to all employees. Furthermore, the program is also a printed part of the Pilot’s Flig ht Manual and Flight Atte ndant’s Manuals. Pilots and Flight Attendants will account for over 90 pe rcent of all the employees transferred to

Pinnacle Airlines.

As established by precedent in previous airline mergers, conducting pre-employment drug testing and testing history checks on former Mesaba employees would not further contribute to aviation safety, and would merely serve as an unnecessa ry administrative and financial burden to Pinnacle. Thus, with respect to the pre-employme nt process, precedent provides clear justification for approval.

(D) THE REASONS WHY GRANTING PINNACLE'S REQUEST WOULD BE IN THE

PUBLIC INTEREST:

Pinnacle believes granting this request for relief would be in the public interest. Current Mesaba employees who perform safety-sensitive functions have been screened for substance use and are subject to a robust, ongoing, and comprehensiv e FAA-approved testing program. Therefore, the public interest is already served by ensuring th at active substance abusers are detected and prevented from performing safety-sensitive functions. In addition, Mesaba employees who perform safety-sensitive functions have been screened for any prior drug and alcohol testing violations at actual and potential employers. These history checks were processed by Mesaba,

consistent with CFR 40.25. Th us, all appropriate steps have been taken by Mesaba to screen employees based on their previous testing records.

(E) THE REASONS WHY GRANTING TH E EXEMPTION WOULD NOT ADVERSELY AFFECT SAFETY, OR HOW THE EXEMPTION WOULD PROVIDE A LEVEL OF SAFETY AT LEAST EQUAL TO THAT PROVIDED BY THE RULE FROM WHICH PINNACLE

SEEKS THE EXEMPTION:

In addition to the safety issues discussed above, the exemption would provide a level of safety at least equal to or greater than provided by the rule because the Mesaba employees who perform safety sensitive functions already have been, a nd continue to be, screened for substance usePinnacle Airlines Petition for Exemption Page 5 through testing and checks for prior employment -related drug and alcohol testing violations. Mesaba completed the drug testing and the require d checks consistent with established federal procedures.

(F) A SUMMARY WE CAN PUBLISH IN THE FEDERAL REGISTER, STATING: (1) THE RULE FROM WHICH PINNACLE SEEKS THE EXEMPTION: AND (2) A BRIEF

DESCRIPTION OF THE NATURE OF THE EXEMPTION PINNACLE SEEKS:

Pinnacle requests consideration of this pe tition, which was filed in a timely manner, without the 120 day waiting period. Specifically, Pinnacle requests the FAA to make a final decision regarding this petition no later than September 1, 2011. Pinnacle respectfully submits that no party will be prejudiced by an early decision, as the exemption petition is more procedural than

substantive in nature.

In accordance with FAR 11, good cause exists for an exemption to Federal Register publication and comment procedures. Pinnacle is diligently wo rking through the plan for transition of Mesaba assets, and believes that there is no risk to safety and that the public interest would be served by expediting its request. Relief from pre-employment testing and testing history checks requirements have been granted to other carri ers that merged operations. Due to the unique circumstances surrounding other aspects of this petition, however, the decision to grant the requested exemption would not set a precedent for the future.

(G) ANY ADDITIONAL INFORMATION, VIEWS OR ARGUMENTS AVAILABLE TO SUPPORT YOUR REQUEST:

None at this time.

(H) IF YOU WANT TO EXERCISE THE PRIVILEGES OF YOUR EXEMPTION OUTSIDE THE UNITED STATES, THE REASON WHY YOU NEED TO DO SO:

At this time, Pinnacle is not seeking to exercise the privilege of the exemption outside of the

United States.

If we can provide additional information or be of any other assistance, please contact Marry Ann Morrow, Vice President of People at (901) 348-4258. Pinnacle Airlines appreciates your consideration of this petition.

Sincerely,

Craig L. Chilcote Vice President Safety, Security and Compliance