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December 17, 2018 Hogan Lovells US LLP Columbia Square 555 Thirteenth Street, NW Washington, DC 20004 T +1 202 637 6934 F +1 202 637 5910 December 17, 2018 U.S. Department of Transportation Docket Operations West Building Ground Floor, Room W12-140 1200 New Jersey Avenue, SE Washington, DC 20590 Subject: Cirrus Design Corporation d/b/a Cirrus Aircraft Petition for Exemption to 14 CFR §§ 47.65 and 47.69(b) Dear Sir or Madam: Pursuant to 14 C.F.R. Part 11, Cirrus Design Corporation d/b/a Cirrus Aircraft (“Cirrus”), hereby applies for a Grant of Exemption from 14 C.F.R. §§ 47.65 and 47.69(b). If granted, the requested relief would allow Cirrus to obtain a Dealer’s Aircraft Registration Certificate, AC Form 8050-6, without meeting the United States citizenship requirements, and permit Cirrus to conduct limited flights outside of the United States under its Dealer Certificate for demonstration, sales and marketing purposes. The requested exemptions in this petition are not new or novel to the FAA. The FAA has issued grants of exemption from 14 C.F.R. §§ 47.65 and 47.69(b) in circumstances similar in all material respects to those presented in this petition, and therefore the requested relief would not set a precedent. Moreover, any delay in acting on this petition would be detrimental to Cirrus. Accordingly, Cirrus submits that good cause exists for not publishing a summary of the petition in the Federal Register. If you have any questions as you review these documents please do not hesitate to contact me at 202-637-8644 or [email protected]. Best Regards. Sincerely, E. Tazewell Ellett Hogan Lovells US LLP Counsel for Cirrus Design Corporation d/b/a Cirrus Aircraft Petition of Cirrus Design Corp. Page 1 of 12 BEFORE THE FEDERAL AVIATION ADMINISTRATION ________________________________________________________________________ Cirrus Design Corporation d/b/a Cirrus Aircraft Docket No. FAA-2018-_____ Petitioner. CIRRUS DESIGN CORPORATION d/b/a CIRRUS AIRCRAFT PETITION FOR EXEMPTION FROM 14 C.F.R. §§ 47.65 and 47.69(b) E. Tazewell Ellett Matthew Clark Hogan Lovells US LLP 555 13th Street, N.W. Washington, DC 20004 Phone: 202-637-8644 Fax: 202-637-5910 [email protected] [email protected] Counsel for Cirrus Design Corporation d/b/a Cirrus Aircraft DATE: December 17, 2018 Petition of Cirrus Design Corp. Page 2 of 12 I. INTRODUCTION AND BACKGROUND OF PETITIONER Cirrus Design Corporation d/b/a Cirrus Aircraft (“Cirrus”) is a Wisconsin corporation formed in 1984 with its headquarters in Duluth, Minnesota. Cirrus was created by two brothers, Dale and Alan Klapmeier, in their parents’ barn in Baraboo, Wisconsin. During the 1990s, Cirrus designed, developed, and put into production the SR20, which was the first general aviation aircraft to incorporate an airframe parachute among many other safety firsts and enhancements, and was followed shortly thereafter by the groundbreaking SR22. Since 2004, Cirrus has been manufacturing (in Duluth) the bestselling single engine aircraft in the world, and Cirrus has delivered (to date) over 7,000 SR-series airplanes to its customers. As noted above, among Cirrus’ most successful innovations is the Cirrus Airframe Parachute System (“CAPS”), the country’s first (and still only) factory-installed whole-airframe parachute system on a FAA-certified aircraft. The CAPS parachute system has saved over 163 lives and counting over the past 17 years. Because of its reputation for safety, quality, and innovation, Cirrus is consistently lauded by regional and national media and is the subject of regular and significant media coverage. In 2010, the FAA granted Cirrus a type certificate for the SR22T, but the worldwide recession had a significant impact on the financial stability of light aircraft manufacturers like Cirrus. Importantly, in 2011, China Aviation Industry General Aircraft Co. Ltd. (“CAIGA”) purchased Cirrus Industries, Inc. in a well-publicized transaction in the general aviation industry.1 This investment from 1 In terms of the corporate structure of the Cirrus entities, Cirrus Design Corporation, a Wisconsin corporation, is a wholly-owned subsidiary of Cirrus Industries, Inc., a Delaware corporation, which in turn (as of 2011) is a wholly- owned subsidiary of CAIGA (US) Co. Ltd., a private limited company established and existing under the laws of the State of Delaware, which in turn is a wholly-owned subsidiary of CAIGA Co. Ltd., a private limited company established and existing under the laws of the State of Delaware, which in turn is a wholly-owned subsidiary of China Aviation Industry General Aircraft Co., Ltd., a private limited company established and existing under the laws of China. Petition of Cirrus Design Corp. Page 3 of 12 CAIGA allowed Cirrus the necessary financial resources to weather a difficult market period and fund its Vision Jet program in Duluth. In 2016, Cirrus received an FAA type certificate for, and began producing, its Vision Jet aircraft, the world’s first single-engine personal jet. – a very light 7 passenger jet. Consistent with Cirrus’ unwavering commitment to safety and innovation, the Vision Jet also implemented the CAPS safety system for the aircraft. It would be an understatement to say that the aviation community took notice of the Vision Jet. In fact, for its visionary accomplishment in developing the world’s first personal jet and one with a whole-airframe parachute system, Cirrus was awarded the prestigious Collier Trophy in April 2018. The Collier trophy is awarded annually “for the greatest achievement in aeronautics or astronautics in America, with respect to improving the performance, efficiency, and safety in air or space vehicles, the value of which has been thoroughly demonstrated by actual use during the proceeding year.” To date, Cirrus has delivered over 88 Vision Jets to the market. Cirrus currently employs over 1,400 employees in the United States. In addition to the manufacturing plant and company headquarters in Duluth, Minnesota (where over 1,000 employees are currently employed), an additional company manufacturing facility, which produces the composite components for the Cirrus’ aircraft, is located in Grand Forks, North Dakota. In January 2017, Cirrus opened its new Vision Center customer experience campus in Knoxville, Tennessee at the McGhee Tyson Airport. The facility focuses on all customer interactions, including training, maintenance and repair, personalization and deliveries for the Vision Jet and SR-series. To facilitate Cirrus’ operations, and to eliminate delays/inefficiencies associated with the need to obtain a certificate of registration for each individual aircraft produced at Cirrus’ main manufacturing facility in Duluth, Cirrus wishes to obtain a Dealer's Aircraft Registration Certificate. Cirrus first applied for a Dealer’s Aircraft Registration Certificate in 2002 and has maintained a Dealer’s Aircraft Registration Certificate since that date. In 2011, an upstream corporate owner of Cirrus was acquired by CAIGA, a Chinese entity. Cirrus’ current Dealer’s Aircraft Registration Certificate was issued by the FAA on April 7, 2018 and is set to expire on April 6, 2019. Petition of Cirrus Design Corp. Page 4 of 12 While Cirrus is a Wisconsin corporation with an established place of business in the United States and is substantially engaged in manufacturing and/or selling aircraft, Cirrus is now concerned that it may not satisfy the technical definition of “a citizen” of the U.S under 49 U.S.C. § 40102 (a)(15) because of the company’s upstream ownership. Accordingly, in an abundance of caution, Cirrus respectfully requests an exemption from the citizenship requirement in 14 C.F.R. § 47.65 to be eligible for a Dealer's Aircraft Registration Certificate, AC Form 8050-6. If granted an exemption from the citizenship requirement in 14 C.F.R. § 47.65, Cirrus additionally desires to conduct limited flights outside the U.S. under its Dealer's Aircraft Registration Certificate for the purpose of demonstrating and selling its aircraft and marketing its aircraft to international customers. Cirrus therefore requests an exemption from 14 C.F.R. § 47.69(b), in order to enable it to conduct international flights under its Dealer’s Aircraft Registration Certificate for demonstration, sales, and marketing purposes. II. INFORMATION REQUIRED BY 14 C.F.R. § 11.81 TO SUPPORT A PETITION FOR EXEMPTION As required by 14 C.F.R. § 11.81, Cirrus provides the following information in support of this Petition: (a) Contact information: Name: Cirrus submits this Petition for Exemption through counsel, E. Tazewell Ellett and Matthew Clark Mailing address: E. Tazewell Ellett Counsel for Cirrus Design Corporation Hogan Lovells US LLP 555 13th Street, NW Washington, DC 20004 Telephone number: 202-637-8644 (Ellett) 703-610-6154 (Clark) Facsimile number: 202-637-5910 E-mail addresses: [email protected] [email protected] Petition of Cirrus Design Corp. Page 5 of 12 (b) The specific sections of 14 CFR from which an exemption is sought: 14 C.F.R. § 47.65 Eligibility and 14 C.F.R. § 47.69(b) Limitations. (c) The extent of relief sought and the reason relief is sought: 14 C.F.R. § 47.65 “Eligibility” Cirrus seeks an exemption from 14 C.F.R. § 47.65 to the extent necessary to allow Cirrus to obtain a Dealer’s Aircraft Registration Certificate without being a U.S. citizen, as defined by 49 U.S.C. 40102(a)(15).2 Cirrus does not seek an exemption from the requirement in 14 C.F.R. § 47.65 that an applicant for a Dealer's Aircraft Registration Certificate have an established place of business in the U.S. and be substantially engaged in manufacturing or selling aircraft. The reason for the requested relief from 14 C.F.R. § 47.65 is to eliminate the administrative burden for Cirrus to obtain a separate certificate of registration for each individual aircraft assembly.
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