Order 2010-1-2 

 

 

 UNITED STATES OF AMERICA 

 DEPARTMENT OF TRANSPORTATION 

 OFFICE OF THE SECRETARY 

 WASHINGTON, D.C.

Issued by the Department of Transportation 

on the October 29, 2009

 

Served: January 4, 2010 

In the Matter of Consolidated 

International Route Authority for: 

Pinnacle Airlines, Inc. 

under a certificate of public convenience 

and necessity pursuant to 49 USC 41101 

 Docket DOT-OST-2005-22228 

 

ORDER ISSUING CERTIFICATES 

Summary

By this order we grant Pinnacle Airlines, Inc. (referred to as Pinnacle or the captioned air carrier) 

consolidated certificate authority to provide combination service in: (1) markets which are not 

limited as to entry or frequency but which do not involve open-skies partners of the United States, 

for which Pinnacle holds economic authority by exemption or certificate; and (2) U.S.-Mexico 

city-pair markets for which Pinnacle holds economic authority by exemption or certificate. 

Background and Consolidation Request

In furtherance of the Department’s regulatory streamlining initiative for licensing U.S. air carriers, 

we announced by Notice on February 13, 2009 (February Notice) our intention to realign the 

existing non-open-skies economic authority held by carriers already holding a blanket open-skies 

certificate into new consolidated certificates of public convenience and necessity.1

 We stated that 

we would realign economic authority involving markets, other than Mexico, that are not openskies partners of the United States into two certificates -- an indefinite duration certificate for 

markets that are not entry- or frequency-limited and a five-year certificate for limited-entry and 

 

1

 February 13, 2009 Notice in Docket DOT-OST-2005-22228. 
limited-frequency markets so that all authority in limited-entry or limited-frequency markets will 

have a common expiration date. We stated that we would cover a carrier’s U.S.-Mexico authority 

in a third, separate certificate, as a carrier must obtain new economic authority on a city-pair basis 

each time it proposes to add a new city-pair market to its U.S.-Mexico services. 

We invited carriers to request realignment of their economic authority by submitting a letter to the 

streamlining docket, Docket DOT-OST-2005-22228, identifying the authority to be included in the 

new certificates. Specifically, the carrier must identify the authority it holds for a particular 

market, whether it is limited to code-share services only, whether the market is entry- or 

frequency-limited, the number of the order in which the authority was granted (for previouslyissued certificate authority) and the docket in which it was granted (for exemption authority). We 

stated that if no issues arise making it impractical to consolidate currently-held authority as 

requested by the carrier, we would draft a self-executing final order designed to issue the nonopen-skies market certificates upon completion of the 49 USC 41307 Presidential review process. 

Pinnacle submitted a request by letter dated May 1, 2009, listing the markets for which it seeks 

consolidated certificates.2

Decision

Under assigned authority and consistent with our streamlining and consolidated certificate 

initiative, we have decided to grant Pinnacle’s consolidation request and to reissue Pinnacle’s 

existing economic authority to serve markets that are not open-skies partners of the United States. 

Pinnacle is eligible to receive consolidated certificates, as described in the February Notice, as it 

holds a blanket open-skies certificate.3

Our action here establishes for the carrier two new route certificates, attached at Appendices A and 

B. The authority to serve a particular market is included in the certificate as a route segment. We 

find that grant of the certificates is consistent with the public convenience and necessity.4 We find 

further that the pending consolidated certificate requests are not controversial and that it is 

appropriate to grant the authority at issue here under simplified procedures, as explained in the 

February Notice.5 

 

The authority in the attached certificates is either consistent with aviation agreements that are 

currently being applied and that authorize the use of rights for which the United States has 

exchanged valuable operating rights, or with the overall state of aviation relations between the 

 

2

 The markets for which Pinnacle seeks consolidated certificates are listed in Appendix C. 3

 By Order 2008-10-8, issued August 8, 2008, Pinnacle was issued a Certificate of Public Convenience and Necessity 

for Route 887, authorizing the carrier to serve the open-skies partners of the United States. 

4

 Based on officially noticeable data, the Department has found the carrier fit, willing, and able to engage in foreign 

scheduled air transportation of persons, property, and mail using large aircraft, subject to the restriction that Pinnacle’s 

operations are performed under an agreement with a major U.S. carrier and that Pinnacle operates no more than 16 

large aircraft. See Order 2008-1-1, issued October 24, 2007. The restriction is retained in this consolidation action. 5

 In accordance with 14 CFR § 302.207, et seq., we may, in our discretion, omit a tentative decision in proceedings and 

proceed directly to a final decision. 
United States and the relevant foreign country or countries. All of the authority conferred here 

contributes to the variety of price and service options available to travelers and shippers. 

 

We therefore find, under assigned authority, that the public interest warrants granting Pinnacle 

consolidated certificate authority attached at Appendices A and B, and subject to the conditions 

attached. 

The attached certificates of public convenience and necessity are subject to the standard terms, 

conditions, and limitations we consistently impose in the public interest. The certificate holder 

may request amendment of the certificates to include newly obtained authority, through the 

addition of a new route segment, as described in the February Notice. 

Upon effectiveness, the authority granted by this order supersedes any orders previously issued or 

actions taken by the Department granting the carrier operating rights in the listed markets. For 

those services currently operated under an exemption, the exemption will terminate upon the 

effectiveness of the attached certificate of public convenience and necessity. 

Findings and Conclusions

In view of the foregoing and all the facts of record, we find and conclude that: 

1. It is consistent with the public convenience and necessity to issue the captioned air 

carrier the certificates attached as Appendices A and B, to this order; 

2. On the basis of data officially noticeable under 14 CFR 302.24 of the Department’s 

regulations, the captioned air carrier is a citizen of the United States and is fit, willing, 

and able to perform properly the foreign air transportation described in the attached 

certificates and to conform to the provisions of Subtitle VII of Title 49, United States 

Code (Transportation), and to the Department’s rules, regulations, and requirements; 

3. The public interest requires that the exercise of the privileges granted by the attached 

certificates be subject to the terms, conditions and limitations contained in the attached 

certificates and to such others required by the public interest as the Department may 

prescribe; 

4. The issuance of the attached certificates to the captioned air carrier does not constitute a 

major regulatory action under the Energy Policy and Conservation Act of 1975, as 

defined by section 313.4(a)( 1) of the Department’s regulations;6

 and 

5. The public interest does not require an oral evidentiary hearing or a show-cause 

proceeding on the applications and the actions taken here. There are no material, 

determinative issues of fact requiring such procedures for their resolution. 

In view of the above, and acting under authority assigned by the Department in its regulations, 

 

6

 Our finding is based on the fact that the grant of this portion of the application would not result in a near-term 

increase in annual fuel consumption in excess of 10 million gallons. 
14 CFR Part 385, we find that our action here is consistent with Department policy. 

ACCORDINGLY, 

1. We issue, as attached in Appendix A, a certificate of public convenience and necessity to 

Pinnacle Airlines, Inc., for markets that are not limited as to entry or frequency but which 

involve non-open-skies aviation partners of the United States and for which Pinnacle 

Airlines, Inc. otherwise holds economic authority by exemption or certificate; 

2. We issue, as attached in Appendix B, a certificate of public convenience and necessity to 

Pinnacle Airlines, Inc., covering U.S.-Mexico city-pair markets the carrier is authorized 

to serve by exemption; 

3. This order supersedes any orders previously issued or actions taken by the Department to 

the extent such order or action grants the carrier operating rights, by certificate or 

exemption, in markets covered by the attached certificates; 

4. The certificates issued to Pinnacle Airlines, Inc. will be effective upon the service date of 

this order;7 

5. Unless disapproved by the President of the United States under 49 U.S.C. § 41307, this 

order shall become effective upon the 61st day after its submission for § 41307 review, or 

upon the date of receipt of advice from the President or his designee under Executive 

Order 12597 and implementing regulations that he or she does not intend to disapprove 

the Department’s order under that section, whichever occurs earlier;8 and 

 

7

 Pinnacle’s operations using large aircraft are restricted to operations performed under an agreement with a major 

U.S. carrier and the number of aircraft that the carrier may operate is also limited (see footnote 4). 8

 This order was submitted for section 41307 review on October 29, 2009. The 61st day is December 29, 2009. Since 

the President or his designee did not disapprove this order before that date, it became effective on December 29, 2009.
7. We will serve this order on Pinnacle Airlines, Inc., the Ambassador in Washington, D.C. 

of each foreign aviation partner that the applicant holds authority to serve, the U.S. 

Department of State (Office of Aviation Negotiations), and the Federal Aviation 

Administration. 

By: 

PAUL L. GRETCH 

Director 

Office of International Aviation 

(SEAL) 

An electronic version of this document is available on the World Wide Web at: 

http://www.regulations.gov
Appendix A 

Certificate of Public 

Convenience and Necessity 

for 

 ROUTE 896 

This Certifies That 

Pinnacle Airlines, Inc. 

is authorized, subject to the provisions of Subtitle VII of Title 49 of United 

States Code, the orders, rules, and regulations issued thereunder, and the 

attached Terms, Conditions, and Limitations, to engage in foreign air 

transportation of persons, property and mail. 

This certificate is not transferable without the approval of the Department of 

the Transportation.

 By Direction of the Secretary 

 

Issued by Order 2010-1-2 Paul L. Gretch 

On October 29, 2009 Director, Office of 

Effective on December 29, 2009 International Aviation
 Order 2010-1-2 

 Route 896 

 Page 1 of 2 

Terms, Conditions, and Limitations 

Pinnacle Airlines, Inc. 

for Route 896 

is authorized to engage in scheduled foreign air transportation of persons, property and mail: 

 Between the United States and Turks & Caicos Islands. 

 Between the United States and Belize. 

This authority is subject to the following conditions: 

(1) The holder shall at all times conduct its operations in accordance with the regulations 

prescribed by the Department of Transportation for the services authorized by this certificate, 

and with such other reasonable terms, conditions, and limitations as the Department of 

Transportation may prescribe in the public interest. 

(2) The holder shall at all times conduct its operations in accordance with all treaties and 

agreements between the United States and other countries, and the exercise of the privileges 

granted by this certificate is subject to compliance with such treaties and agreements and with 

any orders of the Department of Transportation issued under them. To the extent that the holder 

has authority to serve more than one country or points in more than one country on the same 

route segment, that authority does not confer upon the holder any additional rights (including 

fifth-freedom intermediate and/or beyond rights) in limited-entry markets unless the Department 

has completed any necessary carrier selection procedures to determine which carrier(s) should be 

authorized to exercise such rights. In such cases, the fact that the carrier may hold authority to 

serve the countries (points) at issue on the same segment will not be considered as providing any 

preference to the holder in a carrier selection proceeding. 

(3) The exercise of the authority granted here is subject to the holder’s first obtaining from 

the appropriate foreign governments such operating rights as may be necessary. 

(4) The holder’s authority under this certificate is effective only to the extent that such 

operations comply with all applicable requirements of the Federal Aviation Administration and 

with all applicable U.S. Government requirements concerning security, including, but not limited 

to, 40 CFR Part 1544. To assure compliance with all applicable U.S. Government requirements 

concerning security, the holder shall, before commencing any new service to or from a foreign 

airport, contact its Principal Security Inspector (PSI) to advise the PSI of its plans and to find out 

whether the Transportation Security Administration has determined that security is adequate to 

allow such airport(s) to be served. 
 Order 2010-1-2 

 Route 896 

 Page 2 of 2

(5) The holder shall at all times remain a “Citizen of the United States,” as required by 49 

U.S.C. 40102(a)(15). 

(6) The holder shall maintain in effect liability insurance coverage as required under 14 CFR 

Part 205. Failure to maintain such insurance coverage will render a certificate ineffective, and 

this or other failure to comply with the provisions of Subtitle VII of 49 U.S.C. or the 

Department’s regulations shall be sufficient grounds to revoke this certificate. 

(7) Should the holder propose any substantial changes in its ownership, management, or 

operations (as that term is defined in 14 CFR 204.2(l)), it must first comply with the 

requirements of 14 CFR 204.5. 

(8) In the event the holder ceases all operations for which it was found “fit, willing, and 

able,” its authority under this certificate shall be suspended under the terms of 14 CFR 204.7 and 

the holder may neither commence nor advertise such operations unless its fitness to do so has 

been redetermined by the Department. Moreover, if the holder does not resume operations 

within one year of its cessation, its authority shall be revoked for dormancy. 

(9) The holder may combine services authorized by this certificate with all services 

authorized by other Department of Transportation certificates and exemptions; provided that 

such operations are in compliance with the provisions of all applicable bilateral aviation 

agreements, and provided further that (a) nothing in the award of route integration authority 

should be construed as conferring upon the holder additional rights (including fifth-freedom 

intermediate and/or beyond rights) to serve markets where U.S. carrier entry is limited unless the 

holder first notifies the Department of its intent to serve such a market and unless and until the 

Department has completed any necessary carrier selection procedures to determine which 

carrier(s) should be authorized to exercise such rights; and (b) should there be a request by any 

carrier to use the limited-entry route rights that are included in this certificate by virtue of the 

route integration authority granted here, but that are not then being used by the holder, the 

holding of such authority by route integration will not be construed as providing any preference 

for the holder in a competitive carrier selection proceeding to determine which carrier(s) should 

be entitled to use the authority at issue. 

 
Appendix B 

Experimental Certificate of Public 

Convenience and Necessity 

for 

ROUTE 897 

This Certifies That 

Pinnacle Airlines, Inc. 

is authorized, subject to the provisions of Subtitle VII of Title 49 of United 

States Code, the orders, rules, and regulations issued thereunder, and the 

attached Terms, Conditions, and Limitations, to engage in foreign air 

transportation of persons, property and mail. 

This certificate is not transferable without the approval of the Department of 

the Transportation.

 By Direction of the Secretary 

 

Issued by Order 2010-1-2 Paul L. Gretch 

On October 29, 2009 Director, Office of 

Effective on December 29, 2009 International Aviation
 Order 2010-1-2 

 Route 897 

 Page 1 of 3 

Terms, Conditions, and Limitations 

Pinnacle Airlines, Inc. 

for Route 897 

is authorized to engage in scheduled foreign air transportation of persons, property and mail 

over the following U.S.-Mexico city-pair route segments: 

Atlanta-Cozumel 

Atlanta-Guadalajara 

Atlanta-Monterrey 

This authority is subject to the following terms, conditions, and limitations: 

(1) The holder shall at all times conduct its operations in accordance with the regulations 

prescribed by the Department of Transportation for the services authorized by this certificate, 

and with such other reasonable terms, conditions, and limitations as the Department of 

Transportation may prescribe in the public interest. 

 (2) The holder shall at all times conduct its operations in accordance with all treaties and 

agreements between the United States and other countries, and the exercise of the privileges 

granted by this certificate is subject to compliance with such treaties and agreements and with 

any orders of the Department of Transportation issued under them. To the extent that the holder 

has authority to serve more than one country or points in more than one country on the same 

route segment, that authority does not confer upon the holder any additional rights (including 

fifth-freedom intermediate and/or beyond rights), in limited-entry markets unless the Department 

has completed any necessary carrier selection procedures to determine which carrier(s) should be 

authorized to exercise such rights and has notified the foreign country(ies) involved that any such 

selected carrier(s) has the required authority. In such cases, the fact that the carrier may hold 

authority to serve the countries (points) at issue on the same segment will not be considered as 

providing any preference to the holder in a carrier selection proceeding. 

(3) The exercise of the authority granted here is subject to the holder’s first obtaining from 

the appropriate foreign governments such operating rights as may be necessary. 

(4) The holder’s authority is effective only to the extent that such operations comply with all 

applicable requirements of the Federal Aviation Administration, the Transportation Security 

Administration, and with all applicable U.S. Government requirements concerning security, 

including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. 

Government requirements concerning security, the holder shall, before commencing any new 

service (including charter flights) to or from a foreign airport, contact its Principal Security 

Inspector (PSI) to advise the PSI of its plans and to find out whether the Transportation Security 

Administration has determined that security is adequate to allow such airport(s) to be served.
 

 Order 2010-1-2 

 Route 897 

 Page 2 of 3 

(5) The holder shall at all times remain a “Citizen of the United States” as required by 49 

U.S.C. 40102(a)(15). 

(6) The holder shall maintain in effect liability insurance coverage as required under 14 CFR 

Part 205. Failure to maintain such insurance coverage will render a certificate ineffective, and 

this or other failure to comply with the provisions of Subtitle VII of 49 U.S.C. or the 

Department’s regulations shall be sufficient grounds to revoke this certificate. 

(7) The holder acknowledges that this certificate is granted to determine if the holder’s 

projected services, efficiencies, methods, rates, fares, charges, and other projected results will, in 

fact, materialize and remain for a sustained period of time, and to determine whether the holder 

will provide the innovative and low-priced air transportation it proposed in its application for this 

authority. 

(8a) The holder may combine services on all city-pair route segments of this certificate and 

combine services on this certificate with U.S.-Mexico combination services authorized by other 

Department of Transportation certificates or exemptions, subject to the condition below. 

 (8b) The provisions in paragraph 8(a), above shall not authorize services which would 

constitute multiple designations on city-pair route segments where such multiple designations are 

not agreed to by the United States and Mexico. 

(9) The holder may combine services authorized by this certificate with all services 

authorized by other Department of Transportation certificates and exemptions; provided that 

such operations are in compliance with the provisions of all applicable bilateral aviation 

agreements, and provided further that (a) nothing in the award of route integration authority 

should be construed as conferring upon the holder additional rights (including fifth-freedom 

intermediate and/or beyond rights) to serve markets where U.S. carrier entry is limited unless the 

holder first notifies the Department of its intent to serve such a market and unless and until the 

Department has completed any necessary carrier selection procedures to determine which 

carrier(s) should be authorized to exercise such rights; and (b) should there be a request by any 

carrier to use the limited-entry route rights that are included in this certificate by virtue of the 

route integration authority granted here, but that are not then being used by the holder, the 

holding of such authority by route integration will not be construed as providing any preference 
 Order 2010-1-2 

 Route 897 

 Page 3 of 3 

 

for the holder in a competitive carrier selection proceeding to determine which carrier(s) should 

be entitled to use the authority at issue. 

 

(10) The holder shall file a notice with the Department if it discontinues services on a citypair route segment for 90 days or longer. This notice shall be given as soon as the decision to 

discontinue service (other than seasonal/intermittent service) is made, but in no case later than 

the 91st day of dormancy. Notices shall be filed in the form of a letter addressed to the U.S. 

Department of Transportation, U.S. Air Carrier Licensing Division, X-44, 1200 New Jersey 

Avenue, SE, Washington, DC 20590, and shall identify the dormant city-pair route segment, the 

certificate route number, and the date the 90th day of dormancy will or did occur. 

 (11) Should the holder propose any substantial changes in its ownership, management, or 

operations (as that term is defined in 14 CFR 204 of the Department’s regulations), it must first 

comply with the requirements of 14 CFR 204. 

 

(12) In the event that the holder ceases all operations for which it was found “fit, willing, and 

able,” its authority under this certificate shall be suspended under the terms of 14 CFR 204 of the 

Department’s regulations and the holder may neither recommence nor advertise such operations 

unless its fitness to do so has been redetermined by the Department. Moreover, if the holder 

does not resume operations within one year of its cessation, its authority shall be revoked for 

dormancy. 

The authority to serve each city-pair route segment in this certificate shall continue in effect until 

December 29, 2014; notwithstanding the above, however, the authority to serve any city-pair 

route segment shall expire automatically and revert to the Department (a) the 90th day after the 

holder discontinues service on that segment, or (b) when the holder notifies the Department (as 

provided in this certificate) that the segment is dormant, whichever occurs earlier; unless the 

Department earlier suspends, modifies, or deletes the authority. 
Appendix C 

List of Currently-Held Economic Authority Submitted for Consolidation by Pinnacle*

1. Non-limited-entry Markets (Non-Open-Skies) 

U.S.-Belize, Docket DOT-OST-2008-0086. 

U.S.-Turks & Caicos Islands, Docket DOT-OST-2008-0376. 

2. U.S.-Mexico City-Pair Markets 

Atlanta-Cozumel, Docket DOT-OST-2008-0005. 

Atlanta-Guadalajara, Docket DOT-OST-2009-0045. 

Atlanta-Monterrey, Docket DOT-OST-2009-0045. 

* Pinnacle operates each of the listed services under the “DL*” code of Delta Air Lines, 

Inc., pursuant to an agreement with the carrier.