PEREGRINE BALLOONING PTY LTD (“the operator”) (Aviation Reference Number 589205)

may, without carrying a cabin attendant, operate the E-300 hot air balloons bearing nationality and registration marks VH-PAX and VH-PBQ in operations that involve carrying 16 passengers on condition that:

(a) the duties and responsibilities of the pilot in command of a balloon relating to the briefing and control of passengers in normal and emergency situations are set out in the operator’s operations manual; and

(b) during the operations, an approximately equal weight of passengers is located in each of the balloon’s 4 passenger compartments; and

(c) during the operations, the passengers are, at all times, in a position to hear any instructions given by the pilot in command; and

(d) during the operations, there are 2 suitably trained ground crew available, with one at either end of the basket, to assist the pilot with the embarkation and disembarkation of passengers; and

(e) the training required by the ground crew referred to in paragraph (d) above is included in the operator’s operations manual; and

(f) the operations are conducted in accordance with all relevant requirements set out in section 20.16.3 of the Civil Aviation Orders other than subparagraph 6.1 (a) and paragraph 7.1.

This instrument takes effect on gazettal and stops having effect at the end of June 2007.

[Signed J. Marcolin]

Jim Marcolin

Acting General Manager

General Aviation Operations

21 October 2004