Subject: Pilot Approval Program

1. Purpose:

This paper outlines the requirements that must be met by Client's employee pilots who use privately owned/rented aircraft in flying (FAR Part 91) on Client's business. Since pilots who are flying such aircraft on Client's business create a liability exposure for the Client, the Client requires pre-approval in accordance with specific standards. Pilot authorization is necessary to ensure liability protection and receive specified travel reimbursement.

2. Background:

Client's employees have been flying private aircraft on Client's business as provided under Client's Statute:

USE OF PRIVATE AIRPLANES. (a) Whenever any Client's agency determines that the duties of any member or employee require the use of an airplane, it may authorize him or her to charter such airplane with or without a pilot; and it may authorize any member or employee to use his or her personal airplane and reimburse him or her for such use at a rate set biennially by the department of employment relations, subject to the approval of the joint committee on employment relations. Such reimbursement shall be made upon the certification of the amount by the head of the Client's agency to the department of administration.

Within the Client's Legal Entity, Client's Risk Management (CRM) office approves the flying status of all pilots after verifying their compliance with required qualifications, competencies, and currencies. This approval is with respect to FAR Part 91 flying only.

Utilizing private aircraft for Client's business usually results in saving the Client's money while providing the employee with savings in time and frustration. The use of private planes is also beneficial when an assigned task involves going to locations that are not serviced by commercial flights. In addition, there are Client's courses, which include flight in a private aircraft as part of the Staff learning experience.

To assure that pilots who fly privately owned/rented aircraft on Client's business are qualified, a list of qualifications has been developed. These qualifications will be used by the CRM in their annual screening of all employees who want to fly private aircraft in accordance with Part Far 91 as part of their employment duties. The qualifications of each pilot will be examined annually in accordance with the following procedures:

1. In March of each year, the attached memo and the Pilot Approval forms will be sent out by the CRM to all known institution pilots. In cases where a pilot has previously completed a pilot history form, a copy will be sent to the pilots for verification and updating.

2. CRM will forward all forms to the Client's Aviation Consultant for professional evaluation. The forms will then be returned to CRM for final approval. Procedural questions should be directed to CRM.

3. CRM will forward a list of the approved pilots to the Client's institution risk manager, preaudit supervisors and travel auditors for reimbursement purposes.

4. Attached are the current forms that are sent to pilots seeking approval. The forms include the pilot history data, pilot questionnaire and operational and flight rules.

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