June 12 (Reuters) - The Federal Aviation Administration

said Thursday it is shrinking the area around Reagan Washington

National Airport where helicopters are allowed to operate.

In March, the FAA imposed permanent restrictions on

non-essential helicopter operations around Reagan to eliminate

helicopter and passenger jet mixed traffic, including

permanently closing one key route. The changes came after the

National Transportation Safety Board made two urgent safety

recommendations following the Jan. 29 mid-air collision of an

American Airlines ( AAL ) regional jet and an Army helicopter

that killed 67 people.