Inspectors from the FAA?s Scottsdale Flight Service District Office inspected PHI Aug. 27, 2008, and found a variety of violations of the Federal Aviation Regulations. They included unauthorized use of an electronic recordkeeping system, failure to operate the maintenance shop according to its approved repair station and quality control manuals, and using unqualified people to perform the work. 

FAA inspectors reinspected PHI?s facility on Sept. 15 and 16, 2008, and discovered hundreds of additional discrepancies. These included identifying unserviceable parts as serviceable and retaining them for reuse; failure to document maintenance work and inspections; and failure to have and use approved data to guide major repairs and alterations. 

PHI performed major restoration work on a damaged Hughes 369 helicopter for the U.S. Department of Agriculture, but the department retained another company to inspect the helicopter before it returned to service. That inspection turned up more than 30 airworthiness discrepancies. The FAA also alleges company employees deliberately falsified maintenance forms, including a return-to-service authorization, when more than 100 items had not been inspected according to the company?s quality control manual.