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U.S.Departmentof Transportation OfficeoftheSecretary ofTransportation July 19, 2012
Mr. JimBuntz SeniorVice President ofFinance Carlsbad-PalomarAirlines, Inc.

d/b/a CaliforniaPacific Airlines 5670 El CaminoReal, SuiteD Carlsbad, CA 92008

DearMr. Buntz: 

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## 3l 1200 NewJersey Avenue, SE Washington, DC 20590

Re: Docket DOT-OST-2010-0126, Application of Carlsbad-Palomar Airlines, Inc. d/b/a California Pacific Airlines for certificates

. of public convenience and necessity

As you know, by Order 2011-8-23, issued August 25, 2011, the Department found Carlsbad-Palomar Airlines, Inc. d/b/a California Pacific Airlines ("CP Air") fit to engage in scheduled passenger operations as a certificated air carrier. The effectiveness ofthis authority was conditioned upon CP .Air's fulfilling a number· of conditions, including providing us with a copy ofits AirCarrier Certificate and Operations Specifications from the Federal Aviation Administration authorizing such operations.



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# . Although over ten months have elapsed since the Department's grant of authority to CP Air, to date, the company has not fulfilled the conditions imposed by Order 2011-8-23 to have its authority made effective. This letter is to remind the company of the requirements of section 204.7 of the Department's regulations (14 CFR 204.7) and the impact ofthat section on its authority. Specifically, section 204.7 provides, among other things, that the authority granted to a company shall be revoked ifthe company does not commence actual flying operationsunderthat authority within one year ofthe date ofthe Department's determination ofits fitness--that is, byAugust 25, 2012, for CPAir.
If CP Air is not able to fulfill the conditions set by Order 2011-8-23 for receipt of effective authority and commence operations by August 25, 2012, it may request a waiver of the requirements of section 204.7. However, you should be aware that such waivers are not granted routinely, but only where "good cause" is shown. In showing good cause, CP Air would have to provide adequate evidence that it still meets the Department's fitness criteria and that it has completed nearly all ofthe steps to commence operations (e.g., has the necessary personnel, financial resources, and aircraft, and that it is well advanced in its FAA certification process). Any such waiver request should be mailed to U.S. Department of Transportation, Docket Operations, (M-30, Room Wl2-2
140), 1200New Jersey Avenue, S.E., West Building Ground Floor, Washington, D.C. 20590, or you may electronically file your response at www.regulations.gov. In either case, you must pay the $280 filing fee at www.pay.gov and accompany your filing with proofofpayment.
In addition, ifyou believe that special issues exist which cannot be presented adequately in writing, you mayrequest that an oral evidentiaryhearing beheld before we revoke CP Air's authority for dormancy. Such a request must be in writing and must be submitted to the Departmentpriorto August 25, 2012. Any suchrequest must setforth in detail the reasons why such procedures are considered necessary and what facts supporting its continued fitness CP Air would be able to establish through this procedure that it could not otherwise establish in writing or through a timely filed request for a fitness redetermination.
Ifyou have any questions concerning this matter, please contact Mr. Damon Walker of my staffat (202) 366-9721..

LauralynJ. Remo Chief, AirCarrierFitness Division Office ofAviationAnalysis

cc: DocketDOT-OST-2010-0126