2 U8 Department Otfce ofthe Chief Counsel Enforcement Division of Transportation Northeast Team Federal Aviation 1 Aviation Plaza ‘Administration slamaica, New York 11434 U.S. CERTIFIED MAIL, RETURN-RECEIPT REQUESTED, ELECTRONIC MAIL, and FIRST-CLASS MA\ October 6, 2015 President SkyPan International, Inc. TLLN. Milwaukee Avenue Chicago, IL 60642 Electronic Mail: segalpan@[Link] RI SkyPan International, Inc., Case Nos. 2014EA150081 & 2013EA110005 Dear Sir or Madam: Based upon the following facts and circumstances, it appears that SkyPan International, Ine. (SkyPan”) has violated the regulations of the Federal Aviation Administration for the following reasons: 1. SkyPan operated an Unmanned Ai following fights: raft System (hereinafter “the fi"), on the a. On or about March 21, 2012, on at least one flight for a project at or in the vicinity of 35 W. 15" Street, New York, NY: b. On or about March 22, 2012, on at least one flight for a project at or in the vicinity of 35 W. 15" Street, New York, NY: €. On or about April 20, 2012, on at least one flight for a project at or in the vicinity of New York City High Line at 19" Street and 10" Avenue, New York, NY: d. In or about May 2012, on at least one flight for a project at or in the v 10" Avenue and 33"! Street, New York, NY; of €. In or about May 2012, on at least one flight for a project at or in the vie New York City Bryant Park Tower at 40" Street and 6" Avenue, New York, NY; £ On or about May 8, 2012, on at least one flight for a project at or in the vicinity of 440 Park Avenue. New York. NY:m. @ In or about August 2012, on at least two flights for a project at or in the vicinity of 1107 Broadway, New York, NY: On or about September 24, 2012, on at least two flights for a project at or in the vicinity of 432 Park Avenue, New York, NY; On or about October 11, 2012, on at least one flight for a project at or in the nity of 56 Leonard Street, New York, New NY; On or about February 6, 2013, on at least one flight for a project at or in the nity of 56 Leonard Street, New York, New York: On or about February 6, 2013, on at least one fight for a project at or in the vicinity of World Trade Center Tower 3, New York. NY: On or about February 13, 2013, on at least one flight for a project at or in the vicinity of World Trade Center Tower 3, New York, NY: On or about April 13, 2013, on at least one flight for a project at or in the vicinity of 303 E. 51" Street, New York, New NY; (On or about April 14, 2013, on at least one flight for a project at or in the vicinity of 303 E. 51* Street, New York, New York: In or about early May 2013, on at least three flights for a project at or in the ity of 53 West 53% Street, New York, NY: On or about May 14, 2013, on at least two flights for a project at or in the vicinity of 250 South, New York, NY: On or about May 14, 2013, on at least one flight for a project at or in the vicinity of 40-50 Riverside Boulevard, New York, NY; On or about May 14, 2013, on at least one Might for a project at or in the vicinity of $0 UN Plaza, New York. NY: In or about June/July 2013, on at least four flights for a project at or in the vicinity of 250 E. 57" Street, New York, NY; On or about June 4, 2013, on at least one flight for a project at or in the vieinity of 153 E, 79" Street, New York, NY: On or about June 19, 2013, on at least one flight for a project at or in the vicinity of 155 E. 79" Street, New York, NY; - On or about July 21. 2013, on at least one flight for a project at or in the vicinity of 40-50 Riverside Boulevard, New York, NY:ww. In or about July 2015, on at least three flights for a project at or in the vicinity of 551 West 21" Street, New York, NY: x. On or about July 20, 2013, on at least one flight for a project at or in the vicinity of 151 N Franklin, Chicago, Ilinoi y. In or about September 2013 on at least two flights for a project at or in the vicinity of 41-43-45 E. 60" Street, New York. NY; z. On or about September 12, 2013, on at least two flights for a project at or in the vicinity of 41 East 22™ Street, NY; aa. On or about September 18, 2013, on at least one flight for a project at or in the vicinity of 20 West 40" Street, New York, NY: bb. On or about September 18, 2013, on at least one flight for a project at or in the vicinity of the “Park Lane” project, New York. NY; cc, On or about September 2 vicinity of Central Park South 1013, on at least one flight for a project at or in the Tower” project, New York, NY: dd. On or about vicinity of ‘eptember 20, 2013, on at least one flight for a project at or in the ‘entral Park South “House” project, New York, NY: ee. In or about early October 2013, on at least one flight for a project at or in the inity of 301 East 50" Street, New York, NY: ff. On or about October 2: vicinity of 200 Amsterdam, 2013, on at least one flight for a project at or in the New York, NY; On or about May 25, 2014, on at least one flight for a project at or in the vici of 520 Fifth Avenue, New York, NY: hh. On or about May 26, 2014, on at least one flight for a project at or in the vicinity of 520 Fifth Avenue, New York. NY: ii, On or about May 27, 2014, on at least one flight for a project at or in the vicinity of 217 West 57" Street, New York, NY; In or about May-July 2014, on at least eight flights for a project at or in the inity of 217 West 57" Street. New York, NY: kk. On or about June 15, 20174, on at least one flight for a project at or in the vicinity of 41-43-45 E. 60" Street, New York, NY; IL. On or about July 26, 2014, on at least one flight for a project at or in the vieinity of 111 West 57" Street, New York, NY;4 mm. On or about August 9, 2014, on at least one flight for a project at or in the nity of “NYC MoMA project”, New York, NY: nn. On or about August 10, 2014, on at least one flight for a project at or in the vicinity of “NYC MoMA project”, New York, NY: 00, In or about August ~September 2014, on at least one flight for a project at or in the vicinity of 610 Lexington Avenue, New York, NY; pp. In or about September 2014, on at least one flight for a project at or in the vicinity of 180 East 88" Street, New York, NY; 4g. In oF about September 2014, on at least one flight for a project at or in the vicinity of 8: th Avenue and 625 West 57" Street, New York, NY: rr. O1 vicinity of 360 Tenth Aveni or about September 14, 2014, on at least one flight for a projeet at or in the . New York, NY: ss On or about November 22, 2014, on at least one flight for a project at or in the vicinity of 50-62 Clinton Street, New York, NY; and Ut. On oF about December 15, 2014, on at least one flight for a project at or in the vicinity of 105-109 28" Street, New York, NY: SkyPan conducted the flights described above in paragraph I for other than hobby or jonal use. Of the flights described above in paragraph 1, SkyPan operated the following flights in New York Class B airspace: a. Paragraph 1(e): b. Paragraph 1(1): c. Paragraph 1(h): d. Paragraph 1(m); e. Paragraph 1(n): f Paragraph 1(0): g. Paragraph 1(q): h. Paragraph 1(r): i. Paragraph 1(s); j. Paragraph 1(t):k. Paragraph 1(u); 1. Paragraph 1(w): m. Paragraph I(y); n. Paragraph 1(bb): ©. Paragraph I(ce); p. Paragraph I(dd); q. Paragraph 1(ce); Paragraph 1(f1); s. Paragraph I(gg) t. Paragraph 1 (hh): u. Paragraph 1(ii);, v. Paragraph 1(jj); Ww. Paragraph (kk): x. Paragraph 1(II); y. Paragraph 1(mm): z. Paragraph 1(nn): aa, Paragraph 1(00); bb. Paragraph 1(pp): ce. Paragraph 1(qq). ‘SkyPan operated the aireraft on the flights listed in paragraph 3 without receiving an Air Traffic Control (ATC) clearance from the ATC facility having jurisdiction for that area, SkyPan operated the aircraft on the flights listed in paragraph 3 when the aircraft was not equipped with a two-way radio. SkyPan operated the aircraft on the flights listed in paragraph 3 when the aireraft was not equipped with a transponder and altitude reporting equipment.il 6 SkyPan operated the aircraft on the flights referenced in paragraph 1 above when the aircraft had not been registered with the Federal Aviation Administration, pursuant to 14 CFR. § 47.3(b). SkyPan operated the aircraft on the flights referenced in paragraph 1 above when it did not have within it an effective U.S. registration issued to its owner or, for operation within the United States, the second copy of the Aircraft registration Application as provided for in § 47.31(c), or a registration certification issued under the laws of a foreign country. SkyPan operated the aireraft on the flights referenced in paragraph 1 above when it did not have within it an appropriate and current airworthiness certificate, . SkyPan operated the aircraft on the flights referenced in paragraph 1 above without a cate of Waiver or Authorization issued in accordance with 14 CER, § 91.903 prior to the flights. By reason of the above, SkyPan operated the aireraft on the flights referenced above in a careless or reckless manner so as to endanger the life or property of another. By reason of the foregoing, it appears that SkyPan failed to comply with the following Federal Aviation Regulations: (a) (b) © (d) 14 CER. § 47.3(b), which states no person may operate an aireralt that is eligible for registration under 49 U.S.C. 44101-44104, unless the aircraft (a) has b registered by its owner; (2) is carrying aboard the temporary authorization required 47.31(¢); ot (3) isan airedraft of the Armed Forces. 14 CER. § 91.13(@), which states that no person may operate an aireraft in a careless or reckless manner so as to endanger the life or property of another. 14. CER. § 91.131(a), which states no person may operate an aireraft within a Class B airspace area except in compliance with §91.129 and the following rules: (1) The operator must receive an ATC clearance from the ATC facility having jurisdiction for that area before operating an aircraft in that area. 14 CFR. § 91.131(c) which states that unless otherwise authorized by ATC. no person may operate an aircraft within a Class B airspace area unless that aireralt is equipped with—(1) For IER operation, An operable VOR or TACAN receiver or an operable and suitable RNAV system; and (2) For all operations. An operable two ‘ay radio capable of communications with ATC on appropriate frequencies for that Class B airspace area.7 (©) 14 CER. § 91.131(€)(1) which states that no person may operate an aireraft in a Class B airspace area unless the aircraft is equipped with—(1) The applicable operating transponder and automatic altitude reporting equipment specilied ing 91.215 (a), except as provided in § 91.215 (e) (14. CER. § 91.203(a)(1), which states except as provided in § 91.715, no person may operate a civil aireraft unless it has within it an appropriate and current airworthiness certificate, Each U.S. airworthiness certificate used to comply with this subparagraph (except a special flight permit, a copy of the applicable operations specifications issued under § 21.197(c) of this chapter, appropriate sections of the air carrier manual required by parts 121 and 135 of this chapter containing that portion of the operations specifications issued under § 21.97(c), or an authorization under § 91.611) must have on it the registration number assigned to the aircraft under part 47 of this chapter. However. the airworthiness certificate need not have on it an assigned special identification number before 10 days after that number is first affixed to the aircrafi. A revised airworthiness certificate having on it an assigned special identification number, that has been affixed to an aircraft, may only be obtained upon application to an FAA Flight Standards district office. (2) 14 CFR. § 91.203(a)(2), which states except as provided in § 91.715, no person may operate a civil aircrafi unless it has within it an effective U.S. registration certificate issued to its owner or, for operation within the United States, the second copy of the Aircraft registration Application as provided for in § 47.31(¢), or a registration certification issued under the laws of a foreign country. Pursuant to 49 U.S.C. § 46301(a)(5), SkyPan is subject to a civil penalty not to exceed $11,000.00 for each violation of the Federal Aviation Regulations, After careful consideration of all available information, we are willing to accept $1,903,000 in settlement of this matter.We will take no further action for a period of 30 days after your receipt of this letter to afford kyPan an opportunity to submit the suggested amount in settlement or furnish additional information pursuant to the procedures described in the enclosure, Please direct all communications to Attorney Judith L. Vaughan, 1 Aviation Plaza, Jamaica, New York 11434, telephone (718) 553-3255, fax (718) 995. Peter J. Lynch Assistant Chief Counsel for Enforcement Fu Enforcement Divisi 1 Aviation Plaza Jamaica, New York 11434 email: [Link]@[Link] Telephone: (718) 553-3285 (main) (718) 553-3255 (direct) (718) 995-5699 (fax) ce: William Niro (electronic mail only to wniro@[Link] Enclosures: Information Sheet and Reply Form Instructions for Paying Civil Penalty Informal Conference Location ListCIVIL PENALTY LETTER INFORMATION SHEET AND REPLY FORM A person who violates any of the referenced statutory provisions in 49 U.S.C. § 46301. or any rules, regulations, or orders issued under the referenced statutory provisions, is subject to a civil penalty for each violation. The maximum, civil penalty for each violation is prescribed by law and is specified in the letter enclosed with this with this information sheet, ‘The Administrator has authority to compromise civil penalties. The enclosed letter states the sum that the FAA would accept in full settlement of the alleged violation or violations described in the letter, You are not required to accept the offer of settlement in the enclosed letter or to make a counter offer of settlement. If you do not wish to settle the ease, the FAA will refer the matter to a U attorney, who may bring a civil action for the full amount of the civil penalty prescribed by AUS. district court will decide all issues of fact and lav, following a trial at which you will have the right to present evidence on your behalf and cross-examine the Administrator's witnesses, You may respond to the Civil Penalty Letter WITHIN 30 DAYS FROM THE DATE YOU RECEIVE THE LETTER BY USING THE ATTACHED REPLY FORM. To respond, mark your choice of the available options on the attached Reply Form, Return the completed Reply Form to the FAA attomey identified in the Civil Penalty Letter at the address provided in the Letter.REPLY FORM RETURN WITHIN 30 DAYS TO: FAA Office of the Chief Counsel Enforcement Division, Northeast Team | Aviation Plaza Jamaica, New York 11434 ‘Telephone: (718) 553-3255 Facsimile: (718) 995-5699 Email: [Link]@[Link] Subject: Civil Penalty Letter, Case No. __ Case Name: In reply to your Civil Penalty Letter, I elect to proceed as indicated below: ed by the FAA in the enclosed letter in accordance jes” attached to this form. | understand that by | Thave paid the amount offe | Penal LI 1g my answer to your letter in writing, with this Reply Form, and request that my written answer and any information attached to it be considered in connection ith the allegations set forth in your letter. NOTE: Under this option, you may submit written information or material to explain, mitigate. or deny the violation or violations alleged in the Civil Penalty Letter, or to show that extenuating circumstances do not warrant a civil penalty. You may submit information under this option in conjunction with a request for an informal conference under Option 3.a. or Option 3.b, below. The FAA will consider the information you provide in determining whether or not you are subject to a civil penalty action, as well as the amount of any civil penalty sought in such an action 3.a. [__] _ I request the opportunity to discuss this matter with an FAA attorney at an in- person informal conference at (choose an FAA office from the attached “Informal Conference Location List”). 3.b. [_] _ I request the opportunity to discuss this matter with an FAA attomey ina telephonic informal conference. Please call me at the number noted below to make arrangements for the conference Telephone number to call to arrange for conference,NOTE: The informal conference under Option 3.2, or Option 3.b. above is intended to provide you with an opportunity to present your reasons why the FAA should not proceed with a civil penalty action for the allegations alleged in the Letter. It also is intended to provide you with an opportunity to present any supporting documentation or information you wish the FAA to consider before the agency decides whether to proceed with a civil penalty action. 4. [_] _ I wish to have the issues of fact and law in the matter decided by the U.S. district court.INSTRUCTIONS FOR PAYING CIVIL PENALTIES You may pay the civil penalty amount offered in the Civil Penalty Letter by using one of the following methods of payment: 1) Senda certified check or money order for the civil penalty amount to: Mike Monroney Aeronautical Center 6500 South MacArthur Blvd. General Accounting, AMK-322 Oklahoma City, OK 73169 Attention: Kathy Gore NOTE: Include a reference to case number on the certified check or money order. To pay the civil penalty with a major credit card over the intemet: [Link] the web site at htips:/[Link]. iin the search box type: “Federal Aviation Adm Payments.” iii,Scroll down to and click on “FAA Civil Penalty Payments~ FAA Headquartei [Link] the requested information to pay by credit card. istration Civil Penalty 3) To pay the civil penalty by electronic funds transfer, provide all of the following information with the electronic funds transfer: Receiver Bank Name: Receiver ABA (USS. bank routing number): 0210 3000 4 Receiving Institution: USS. Treasury c/o Federal Reserve Bank of New York 33 Liberty Street New York, New York 10045 Account Number: TREAS NYC/(69001 104) Beneficiary’ Federal Aviation Administration Reference: Case No. Attn: Kathy Gore, AMK-322INFORMAL CONFERENCE LOC. TION LIST FAA Wester Enforeement Team Located at: Office of the Regional Counsel 222 West 7” Avenue #14 Anchorage. Alaska 99513-7587 California FAA Western Enforcement Team Located at: Office of the Regional Counsel 15000 Aviation Boulevard Lawndale. California 90261 Georgia FAA Southern Enforcement Team Located at: Office of the Regional Counsel 1701 Columbia Avenue, Suite $30 College Park, GA_30337 Tinos FAA Midwest Enforcement Team Located at: Office of the Regional Counsel 2300 E. Devon Avenue, Room 419Des Plaines, IL_ 60018 Massachusetts FAA Eastern Enforcement Team Located at: Office of the Regional Counsel 12 New England Executive Park, Room 311 Burlington, MA 01803-5299 Missouri New York FAA Midwest Enforcement Team at Office of the Regional Counsel 901 Locust St., Room 506 Kansas City, MO_64106-2: FAA Eastern Enforcement Team Located at: Office of the Regional Counsel 1 Aviation Plaza, Room 561 Jamaica, NY_114634 Oklahoma FAA Southwest Enforcement Team Located at: FAA Mike Monroney Aeronautical Center Office of the Center Counsel 6500 South MacArthur Blvd. Oklahoma City, OK_73 169-6901 Texas FAA Southwest Enforcement Team Located at: Office of the Regional Counsel 10101 Hillwood Parkway Drive Ft. Worth. TX_76177 ‘Washington FAA Western Enforcement Team Located at: Office of the Regional Counsel 1601 Lind Avenue, SW Renton, WA 98057 District of Columbia FAA Enforcement Division Located at: Office of the Chief Counsel 800 Independence Avenue, SW Washington, DC_20591