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Sat, Mar 05, 2011

Settlement Reached Between Phoenix Heliparts And FAA

Company To Re-Certify Its Repair Station Certificate

Phoenix Heliparts, Inc. (Phoenix) has reached a settlement with the FAA in the company's appeal of the August 2010 revocation of its repair station certificate. The agreement will allow the company to start the re-certification process after February 28, 2011, six months earlier than provided in the FAA's order. In return, the company withdrew the NTSB appeal that it filed last September.

"This news is truly gratifying for all of us here," Tina Cannon, Phoenix president, said. "The case is now closed and we look forward to working closely with the FAA in the re-certification process. We intend to bring fresh enthusiasm and dedication to our loyal customers in America and around the world. We truly appreciate their support throughout this ordeal."

Phoenix has continued its maintenance operations under the individual certificates of its employees, as permitted under FAA regulations. The FAA's allegations were based on events that occurred in 2008 under previous management. Following the company's move to a new, expanded location in 2010, and enhancements to its procedures, the FAA re-evaluated Phoenix's repair station operations and re-issue its repair station certificate reflecting the operations in its new facilities. This would not have happened unless Phoenix demonstrated that it was in full compliance with the agency's requirements.

Unfortunately, the company's efforts did not prevent the FAA's legal office from revoking Phoenix's repair station certificate based on the 2008 allegations. "The federal government has tremendous power and virtually unlimited resources," Cannon said. "When it exercises its emergency powers, normal due process protections are thrown out the window, as they were in this case. Most companies are simply no match for the federal government, particularly small businesses such as Phoenix Heliparts."

In settling the case, Phoenix admitted to no wrongdoing. In fact, the company was looking forward to presenting its side of the story to an NTSB law judge this spring. However, the high cost of preparing for trial and the inevitable distractions to its business convinced the company that it needed to re-focus all its energies on obtaining re-certification.

FMI: www.phoenixheliparts.com

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