Order 2011

- 2

- 3

Served: February 3, 2011

U N I T E D S

T A T E S O F A

M E R I C A D E P A R T M E N T O F T R A N S P O R T A T

I O N UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 3 rd day of February, 2011

Fitness Determination of

SOVEREIGN AIR, INC.

as a commuter air carrier u nder section 49 U.S.C. § 41738 Docket DOT

- OST

- 200 8

- 0285

ORDER ON RECONSIDERATION

Summary

By this order, we grant the Petition for Reconsideration of Order 2010

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- 21, filed by Sovereign Air, Inc. (“Sovereign Air”), in Docket DOT

- OST

- 2008

- 0285. U pon review of the record, we find that the action taken was appropriate and therefore, we affirm the action taken in that order dismissing the application of Sovereign Air for C ommuter A ir C arrier A uthorization.

Background

On September 12, 2008, Sovereig n Air, a corporation formed pursuant to the laws of the State of Minnesota and headquartered in Belcourt, North Dakota, filed an application in Docket

DOT

- OST

- 2008

- 0285, for authority to conduct scheduled passenger operations as a commuter

air carrier purs uant to section 41738 of Title 49 of the United States Code and section 298. 32 of the Department’s Aviation Economic Regulations (14 CFR 298. 32 )

.

After several of the Department’s letters requesting certain fitness information from the applicant

went un answered, the Department by Order 2010

- 10

- 21, issued October 27, 2010, dismissed Sovereign Air’s application for commuter authority. The Department based its decision on the company’s repeated failure to answer questions or provide fitness information reg arding 1) the scope of its historical and current operations, 2) the compliance history of Mr. Robert Karns

, 3)

its first

- year operating expenses, and 4) the funding available to support the applicant’s proposed

commuter operations.

On November 6, 2010, S overeign Air filed a P etition for R econsideration of O rder 2010

- 10

- 21 requesting that the Department reconsider and reverse the dismissal of its application. In support of its request, Sovere ign Air state s that it has continued to work to establish its op erations . In addition, Sovereign Air states that it has several potential investors inte rested in funding its proposed commuter operations and that the negotiations with its potential investors will likely be compromised should the Department make final i t s decision to dismiss its application for commuter authority. Moreover, the applicant claims that if its application is dismissed and it is forced to refile its application

, the communities that it proposes to operate will be hurt by further delays in in itiating its proposed service.2

Decision

Upon review of Sovereign Air’s petition, we reaffirm our decision to dismiss Sovereign Air’s commuter application. T he information provided by Sovereign Air remains totally insufficient

to allow us to continue a f itness proceeding already more than two years old and that shows no signs of being adequately prosecuted by the applicant . Although, in Order 2010

- 10

- 21, we

identified several deficiencies in Sovereign Air’s application, the applicant made no attempt to

c orrect the deficiencies we identified

. In addition, the applicant noted in its petition that it has undergone management changes and that it intends to modify its operating proposal once a funding source has been secure d . However, Sovereign Air did not s pecifically identify any management changes or provide the relevant section 204.3 (14 CFR 204.3) fitness information pertaining to its new management personnel ’s experience and compliance history.

In light of the foregoing, i t is evident

, that if we were to reinstate Sovereign Air’s application, we would not be in a position to conclude our fitness determination of this company at this time.

W e can n ot allow applications to remain pending indefinitely, particularly where applicants are

non

- responsive to ou r requests for information. Furthermore, we do not agree that Sovereign

Air’s concern that it s efforts to secure funding for its proposed commuter operations will be materially affected if it files a new application is, in and of itself, sufficient reason to keep in place its stagnant application. To the contrary, it has been our practice to require applicant s to have access to all of the necessary capital or have in place a firm funding plan to acquire the capital necessary to meet our financial fitness requirements prior to being awarded economic authority.

ACCORDINGLY,

1. We grant the P etition for R econsideration of Sovereign Air, Inc., and on reconsideration

, affirm the action taken in Order 2010

- 10

- 21 dismissing the application filed by Sovereign

Air

, Inc.

, in Docket DOT

- OST

- 200 8

- 0285 for a C ommuter Air Carrier A uthorization.

2. We will serve a copy of this order on the persons listed in Attachment A.

By:

SUSAN L. KURLAND Assistant Secretary

for Aviation and International Affairs

An electronic ver sion of this document is available on the World Wide Web at: http://www.regulations.govAttachment A

SERVICE LIST FOR SOVEREIGN AIR, INC.

MS SANDRA ANN POITRA

105 MAIN STREET

PO BOX 240

BELCOURT NORTH DAK OTA 58316 MR JON PAYNE

CHIEF FINANCIAL OFFICER

SOVEREIGN AIR INC

48 CHAMPIONS RUN

SAN ANTONIO TX 78258 MR PETER LYNCH

ASST CHIEF COUNSEL FOR ENFORCEMENT (AGC

- 300)

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20 591

MR BERNARD STANKUS RTS

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OFFICE OF AIRLINE INFORMATION

DOT/RSPA/BTS E

- 36

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590 MR WILLIAM J WEBER (AFS

- 900)

CERTIFICATION SECTION MANAGER

FEDERAL AVIATION A DMINISTRATION

45005 AVIATION DRIVE SUITE 131

DUL LES VA 20166 MR CLAY MORITZ

OFFICE OF AIRLINE INFORMATION

DOT/RSPA/BTS E

- 36

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590