Order 2011-2-3

Served: February 3, 2011

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 3rd day of February, 2011 

Fitness Determination of

SOVEREIGN AIR, INC.

as a commuter air carrier under section 49 U.S.C. § 41738

 Docket DOT-OST-2008-0285

ORDER ON RECONSIDERATION

Summary

By this order, we grant the Petition for Reconsideration of Order 2010-10-21, filed by Sovereign 

Air, Inc. (“Sovereign Air”), in Docket DOT-OST-2008-0285. Upon 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 Commuter Air Carrier Authorization.

Background

On September 12, 2008, Sovereign 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 pursuant 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 unanswered, 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 regarding 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, Sovereign Air filed a Petition for Reconsideration of Order 2010-10-21 

requesting that the Department reconsider and reverse the dismissal of its application. In support 

of its request, Sovereign Air states that it has continued to work to establish its operations. In 

addition, Sovereign Air states that it has several potential investors interested in funding its 

proposed commuter operations and that the negotiations with its potential investors will likely be 

compromised should the Department make final its 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 initiating its proposed service. 
2

Decision

Upon review of Sovereign Air’s petition, we reaffirm our decision to dismiss Sovereign Air’s 

commuter application. The information provided by Sovereign Air remains totally insufficient 

to allow us to continue a fitness 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 

correct 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 secured. However, Sovereign Air did not specifically 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, it 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. 

We cannot allow applications to remain pending indefinitely, particularly where applicants are 

non-responsive to our requests for information. Furthermore, we do not agree that Sovereign 

Air’s concern that its 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 applicants 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 Petition for Reconsideration 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-2008-0285 for a Commuter Air Carrier Authorization.

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

http://www.regulations.gov
Attachment A

SERVICE LIST FOR

SOVEREIGN AIR, INC.

MS SANDRA ANN POITRA

105 MAIN STREET

PO BOX 240

BELCOURT NORTH DAKOTA 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 20591

MR BERNARD STANKUS RTS-42

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 ADMINISTRATION

45005 AVIATION DRIVE SUITE 131 

DULLES VA 20166

MR CLAY MORITZ

OFFICE OF AIRLINE INFORMATION

DOT/RSPA/BTS E-36

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590