Order 2010

- 9

- 1 7
Served: September 1 7

, 2010

Issued by the Department of Transportation
on the 1 7 th day of September , 20 10

Fitness Determination of

DYNAMIC AIRWAYS , LLC
d/b/a DYNAMIC AVIATION

for a certificate of public convenience and necessity under
49 U.S.C. § 41102 to engage in interstate charter air transportation of persons, property and mail Docket DOT

- OST

- 20 10

- 00 58

ORDER TO SHOW CAUSE PROPOSING ISSUANCE OF A CERTIFICATE Summary

By this order, we tentatively conclude that Dynamic Airways , LLC d/b/a D ynamic Aviation (“ Dynamic Airways ”) is a citizen of the United States and is fit, willing, and able to provide interstate charter air transportation of persons, pr operty, and mail

, using five large aircraft

, and should be issued a certificate of public convenience and necessity authorizing such operations, subject to conditions.

Background

Section 41102 of Title 49 of the United States Code (“the Transportation Code”) directs us to determine that applicants for certificate authority to provide interstate charter air transportation of persons, property and mail are “fit, willing, and able” to perform such transportation and to ensure that all operations relating t o this authority conform to the provisions of the Transportation Code and the regulations and requirements of the Department. In making fitness findings, the Department uses a three

- part test that reconciles the Airline Deregulation Act’s liberal entry po licy with Congress’ concern for operational safety and consumer protection. The three areas of inquiry that must be addressed in order to determine a company’s fitness are whether the applicant (1) will have the managerial skills and technical ability to conduct the proposed operations, (2) will have access to resources sufficient to commence operations without posing an undue risk to consumers or their funds , and (3) will comply with the Transportation Code and regulations imposed by Federal and State age ncies. We must also find that the applicant is a U. S. citizen.

On March 5, 2010

, Dynamic Airways filed an application in Docket DOT

- OST

- 20 10

- 00 58 requesting a certificate issued under 49 U.S.C. § 41102 authorizing it to provide interstate charter UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.2

air transportation of persons, property, and mail

, using five large aircraft

. 1 Dynamic Airways accompanied its application with fitness information required by 14 CFR § 204.3 of our regulations and supplemented its application with additional information on J une 22 and July 30, 2010. 2

No answers opposing Dynamic Airways ’ application were filed and no special issues regarding the applicant have come to our attention. Under these circumstances, we propose to decide the issue of the applicant’s fitness on the b asis of the written record, and we tentatively conclude that Dynamic Airways is a U.S. citizen and is fit, willing, and able to provide interstate charter air transportation using five large aircraft . However, we will give interested persons an opportunity to show cause why we should not adopt as final these tentative findings and conclusions.

FITNESS
The Applicant

Dynamic Airways , a non

- operating corporation organized under the laws of the State of Virginia
in 2008 , is wholly owned by Mr. Mich ael A. Stoltzfus (67.0 percent) and his father, Mr. Karl D. Stoltzfus, Sr. 3 (33.0 percent)

. The Stoltzfus family also own Dynamic Aviation Group, Inc. (“Group”) 4 and Dynamic JetLease, LLC. 5

1 A large aircraft is defined as any aircraft with an original design capacity of more than 60 passenger seats or an 18,000 pound payload.

2 Contemporaneously with its application and supplemental filing of June 22, 2010, Dynamic Airways filed

motions for confidential treatment under 14 CFR § 302.12 (“Rule 12”) to withhold from public disclosure certain information filed in support of its application. Specifically, Dynamic Airways requested confidential treatment be afforded to FAA certificate numbers of its key personnel, information relating to sensitive financial information relating to its sister company, Dynamic Aviation G roup , Inc

. , and an intra

- o rganizational agreement. By letter dated July 29, 2010, the Department granted the applicant’s requests in their entirety.

3 Mr. Karl D. Stoltzfus, Sr., a co

- owner of Dynamic Airways, has served as Chairman of Dynamic Airways’ sister company, Dynamic Aviation Group , Inc., since he founded that company in 1969. In addition to his duties at Group, he has served on numerous Board of Directors, including Summit Bank (2005

- present); Mission Aviation Fellowship (2003

- present); Jungle Aviation and Radio Service (1990

- 2001); Peoples Supply (1989

- 1992); Rotary Club (1998

- 2001); and Steve Wingfield Ministries (1984

- 2002). He holds a Bac helor of Science degree in Business

Administration from Eastern Mennonite U niversity and is an Airline Transport Pilot with over 4,500 total flight hours logged.

4 Group was formed in 1967 and does business as Dynamic Air, which holds a Part 135 Air Carrier Certificate issued from the Federal Aviation Administration (“FAA”) to provide on

- demand cargo operations; Group also does business as K&K Aircraft, Inc., which h olds a Part 137 Agricultural Aircraft Certificate issued from the FAA to provide aerial agricultural operations. Collectively, Group operates 88 small aircraft and offers its services to federal, state and local governments, non

- profit research organizati ons, and private corporations to carry out missions relating to intelligence, surveillance and reconnaissance (“ISR”); airborne data acquisitions; fire management; aerial application; and sterile insect disbursement operations. Its voting stock is owned b y five members of the Stoltzfus family , each of whom is a U.S. citizen

, with Messr. Karl D. and Michael A Stoltzfus each owning more than 10 percent of the voting stock , and collectively more than 75 percent of the voting stock. Group’s

n on

- voting stock is held by the Karl D. Stoltzfus Irrevocable Trust, which was formed under the laws of Virginia and managed by a U.S. citizen trustee for the benefit of Mr. Stolzfus’ heirs. Additionally, G roup wholly owns an aircraft leasing s ubsidiary , Dynamic AvLease, Inc

. , which provides aircraft leasing and aircraft and parts sales

. 5 Dynamic JetLease, LLC is a former subsidiary of Dynamic Airways that was established to acquire one of the

MD

- 80 series aircraft to be used in A irways’ operations

. In January 2010, t he company was sold by Dynamic Airways to Dynamic Airways’ owners

, and a s a result, i s 1 00 percent owned by M ess r. Michael A. and Karl D.

Stoltzfus

.3

Managerial Competence

The following table identifies Dynamic Airways’ officers and other key management and
technical personnel, each of whom is a U.S. citizen

.

Name Position
Mr. Michael A. Stoltzfuz President and Chief Executive Officer Mr. George “Guy” Cannady Vice President of Operations

Mr. Aaron S. Lorson Executive Vice President

Mr. J. Merle Zook Chief Financial Officer (“CFO”)

Mr. Paul D. Weston Director of Safety

Mr. Richard R. Walters Director of Operations Mr. Edgar R. Fergus Chief Pilot

Mr. Jack W. Branan , Jr. Director of Maintenance Mr. A. Gray Thomason Chief Inspector

Ms. Julie Acheson Director of In

- Flight

Mr. Michael A. Stoltzfus , a co

- owner of Dynamic Airways , is an Airline Transport Pilot with over 4,800 total flight hours logged. He will assume the position of P resident and Chief
Executive Officer of Dynamic Airways if the company is granted the certifi cate authority it seeks and will remain in his current position, which he has held since 2006, as G roup ’s President and
Chief E xecutive Officer. Since joining Gro up, he has held multiple positions w ith increased levels of responsibility with the company, including Base Manager, California Medfly Program (1992

- 1994), Manager of Flight Operations (1995

- 1996), Vice President of Flight Operations (1996

- 1999), Executive Vice President/Vice President of Flight Operations (1999

- 2002), Chief Operating Officer (2002

- 2003), and President and Chief Operating Officer (2003

- 2006). Before
this , he served as Flight Engineer for Northern Air Cargo (1994

- 1996), and as President and Co

Founder of De

- Ice Systems International (1990

- 1995). Mr. Stoltzfus is a graduate of Eastern
Mennonite University ( 1997 ) and the Harvard Business School ( 2004 )

.

Mr. George G. Cannady, an Airframe and Powerplant Mechanic and an Airline Transport Pilot with over 11,000 total flight hours logged, assumed his current position as Vice President of Operations with Dynamic Airways in June 2010. Before joining Dynamic Airways , he served as
President /General Manager of Prescott Support Company, Inc. (200 5

- 2010 ) , and as Owner and
President of Atlanta Air Service s , LLC (2003

- 2010) . Mr. Cannady was also Vice President and General Manager for Air First, Inc. (1989

- 2003), and Vice President of Operations for Gulf Air Transport, Inc. (1980

- 1989). He also served in the U.S. Navy from 1975 to 1998. Mr. Cannady earned a Bachelor’s degree in Aeronautics from Embry

- Riddle Aeronautical University.

I f Dynamic Airways is granted the certificate authority it seeks

, Mr. Aaron S. Lorson, an Airline Transport Pilot and Airframe and Powerplant Mechanic

, will allocate his time between his current position as Group’s Vice President of Flight Operations and Dynamic Airways’
Executive Vice President. He moved progressively through a series of positions at Group with
inc reased levels of responsibility, including Pilot (1999

- 2000), Chief Pilot (2000

- 2004), Director of Flight Operations (2004

- 2007), and Vice President of Flight Operations (2007

- 2010)

. He graduated from LeTourneau University in 1998 with a Bachelor ’s d egree in Aviation Technology and Flight

.4

Mr. J. Merle Zook, a Certified Public Accountant, has served as Group’s Chief Financial Officer
since 2002 and will assume the accounting functions of Dynamic Airways as its CFO if the applicant is granted the certificate authority it seeks. H e joined Group in 1999 as its Controller before being promoted to his current position

. Mr. Zook accumulated accounting and finance experience while employed by Phibbs, Burkholde r, Geisert & Huffman, LLP as its Manager of Audit and Accounting (1995

- 1999) and also as Superviso r of Audit and Accounting (1993

- 1995). Prior to this , he served as a Controller for Kobelco Compressors, (America) Inc. (1990

- 1993), and as a Staff Accountan t for Stauffer & Company, CPAs (1987

- 1990). He earned
a Bachelor’s d egree in Accounting in 1987 from Eastern Mennonite University

.

Mr. Paul D. Weston, an Airline Transport Pilot with over 18,000 flight hours logged , assumed his current position w ith Dynamic Airways as Director of Safety and Regulatory Compliance in
October 2009. Prior to joining the applicant , he developed skills in multiple areas of operations and management, having served as DHC

- 8 Fleet Management for Colgan Air, Inc. (2007

- 200 9), Airline Certification Project Manager for CAVOK International (2004

- 2007), Manager of Technical Operations for Midwest Airlines, Inc. (2002

- 2004), Instructor for Atlantic Coast Aviation (2001), Vice President of Operations for Heart L and Air Lines, LLC (2000

- 2001), Senior Aviation Safety Inspector for the National Transportation Safety Board (1996

- 2000), Acting Assistant Director of Training and Standards for ValuJet Airlines, Inc. (1995

- 1996), and Owner/Manager of Westco Builders, Inc., a custom home bu ilding company (1979

- 1996). Previously, Mr. Weston held multiple positions with increased levels of responsibility at Eastern
Air l ines, Inc., including L

- 188 Second Officer (1966

- 1967), DC

- 9 First Officer (1968

- 1973),

B

- 727 Second Officer Instructor and C heck Airman (1969

- 1978), Base Second Officer Supervisor (1971

- 1987), Captain of DC

- 9 and B

- 727 (1983

- 1991), and Check Captain (1987

- 1991). H e earned a Bachelor ’s degree in Business Administration from the University of
Miami ( 1965 )

.

Mr. Richard R. Wa lters, an Airframe and Powerplant Mechanic and an Airline Transport Pilot with over 10,000 flight hours logged , assumed his current position as Dynamic Airways’ Director of Operations in 2009. Before this, he held the same position at Arrow Cargo, Inc. (2 009), TradeWinds Airlines, Inc./Sky Lease, Inc. (2006

- 2009), and Aloha Airlines, Inc. (2004

- 2006). He moved progressively through a series of positions at Polar Air Cargo , including Flight Officer (1994

- 2000)

, B

- 747

- 400 Fleet Manager (2000

- 2001)

, and Seni or Director of Flight Operations (2001

- 2004). Before that, Mr. Walters served as a Flight Officer for Evergreen International Airlines (1986

- 1994), and as a Flight Instructor for Siegel Aviation, Jericon Aviation, and California Airways (1984

- 1987). Additionally, he was employed as a Maintenance Instructor for World Airways (1984

- 1985). Mr. Walters received an Associate of Science Degree from Reedley College in 1984.

Mr. Edgar R. Fergus, an Airline Transport Pilot with over 24,000 total flight hou rs logged, joined Dynamic Airways as its Chief Pilot in May 2010. Before this, he held various positions at Lynx
Aviation

, including First Officer (2008

- 2009)

, Pilot Ground Instructor (2009)

, and Chief Pilot (2009

- 2010). Mr. Fergus developed skills in mu ltiple areas of aviation operations, having served as Captain and First Officer for American Airlines (1999

- 2007); Chief Pilot (1998

- 1999) and Captain/First Officer (1993

- 1998) for RenoAir; Captain/First Officer for Air Wisconsin (1979

- 1993); Aviation Prog ram Director (1978

- 1979), Chief Flight Instructor (1976

- 1978), and Instructor (1974

- 1976) for Lansing Community College; and First Officer for Great Lakes Commuter Airlines (1973

- 1974). He earned a Bachelor of Science in Biology from Delaware5

Valley Colle ge (1969), a Master of Science in Zoology from Michigan State University (1971), and a Master of Science in Communications from Michigan State University (1975).

Mr. Jack W. Branan, Jr., an Airframe and Powerplant Mechanic, assumed his current po sition as the applicant’s Director of Maintenance in August 2009. Prior to joining the applicant , he was employed by Pace Airlines as Director of Quality/Chief Inspector (2006

- 2009) and as an Inspector/Auditor (2003

- 2006). He developed skills in multiple areas of av i ation maintenance

, having served as a Foreman for US Airways (1993

- 2002) and a Mechanic for Piedmont Airlines (1980

- 1993). Before launching his career in the aviation industry, Mr. Branan served as President of Branan Chevrolet (1977

- 1980) an d Assistant Manager of Jones Paint and Body (1975

- 1977).

Mr. A. Gray Thomason, an Airframe and Powerplant Mechanic, has held his current position of Director of Quality/Chief Inspector for Dynamic Airways since 2009. Prior to joining the applicant, he served as Quality Control Inspector for Timco Aviation Services (2008

- 2009), General Manager of Summer Industries, Inc. (2005

- 2008), Mechanic/Inspector/Lead Mechanic at Piedmont Airlines/US Airways (1985

- 2005), and Mechanic/Shift Supervisor for Wrangle r Aviation (1983

- 1985). Mr. Thomason earned a diploma from the Piedmont Aerospace Institute
in 1983.

Ms. Julie Acheson assumed her current position as Dynamic Airways’ Director of In

- Flight
Services in 2009. Before this, she held the same position at P ace Airlines (2003

- 2009) and
served as Manager of In

- Flight (1999

- 2003) and Flight Attenda nt/Check Flight Attendant (1987

- 1999) for CCAir, Inc. Before her career in the aviation industry, Ms. Acheson held various administrative positions with Manpowe r, Inc. (1987

- 1986), Broadway & Seymour (1986), and Dalton, Morgan and Shook, Partners (1985

- 1986). Prior to that, she served as a Parole and Probation Officer for the Ohio Department of Reha bilitation and Correction (1984

- 1985), Radiology Transcriptionis t and Phlebotomist f or Lima Memorial Hospital (1979

- 1984), and Cashier/Bookkeeper for Robert Hall Clothes (1974

- 1979).

In light of these facts, we tentatively conclude that Dynamic Airways has the management skills and technical ability to conduct its proposed interstate charter air t ransportation operations using
five large aircraft. 6

Operating P lan and Financial P osition

If granted the certificate authority it seeks, Dynamic Airways int ends to operate charter services for collegiate and professional sports teams and other public and private charterers using one
leased MD

- 80 series aircraft and anticipates expanding to a total of five such aircraft within the first year of operations as d emand for its services increases

. Dynamic Airways intends to operate these flights under Aircraft, Crew, Maintenance, and Insurance (“ACMI”) contracts, with charterers directly responsible for all remaining cost s associated with the air transportation provided.

6 Before authorizing an air carrier to conduct air transportation operations, the FAA also evaluates the applicant’s key personnel with respect to the minimum qualifications for those positions as prescribed in the Federal Aviation Regulations. The FAA’s ev aluation of these key personnel provides an added practical and in

- person test of the skills and technical ability of these individuals. In February 2010, the FAA advised us that Dynamic Airways’ key technical personnel are acceptable to that agency in th eir respective positions.6

In evaluating a new entrant applicants’ financial fitness, the Department generally asked that
those applicants have resources sufficient to cover all pre

- operating costs and any negative working capital balance, plus a working capital reserve equal to the operating costs that would be incurred in three months of normal operations. 7

Dynamic Airways provided forecasts of its pre

- operating costs, as we ll as all projected first

- year revenues and expenses a ssociated with its proposed operations. Based on these forecasts, the applicant’s pre

- operating expenses are expected to total approximately $3.4 9 million, with
first

- year expenses totaling approximately $8.2 6 million. We have reviewed the applicant’s

pr ojected direct costs on a block hour basis against the costs reported by other air carriers operating similar aircraft, and believe them to be reasonable. The company’s most recent balance sheet indicates that, as of May 31, 2010, it had current assets of $357,122 and current liabilities of $604,213, giving the company a negative working capital balance of $247,091. Therefore, to meet our fitness test, we estimate that Dynamic Airways will need access to approximately $5.80 million. 8

In support of its a bility to finance its proposed charter operations, Dynamic Airways provided
third

- party verification from PNC Bank evidencing that it has access to an established
line

- of

- credit in excess of our financial fitness requirement.

In light of the above, we tentatively conclude that Dynamic Airways will have access to sufficient financial resources to enable it to commence its proposed operations without posing an
undue risk to consumers or their funds

. 9

Compliance Disposition

Dynamic Airways identified one pending lawsuit

- a subsidiary of Group is currently a defendant in a Federal lawsuit, Sonya Huisman v. United States et al., arising out of a June 12, 2006

, aircraft accident in Tampa, Florida

, that killed a pilot employed by Group

. 10

The applicant states that, except as noted above, there are no other actions or outstanding judgments against it, its owners, or its key personnel nor have there been any charges of unfair, deceptive or anti

- compet itive business practice, or of fraud, felony or antitrust violations brought against any of these parties in the past ten years. The applicant also states that there are no pending investigations, enforcement actions, or formal complaints filed by the Dep artment

7 Because projected operations during one or more of the first three months of anticipated actual air transportation services frequently do not include all costs of operations that will be incurred during a normal period of operations, it has been our practice to base our three

- month standard on one quarter of the first year’s operating cost forecast. In calculating available resources, projected revenues may not be used.

8 The $5.8 0 million noted here is one

- quarter of the applicant’s forecast of approximately $8.25 million in first year expenses equaling $2.06 million, plus $3.49 million in pre

- operating expenses and $247,091 in negative

work ing capital.

9 As is our practice, prior to making any authority awarded to Dy namic Airways effective, we will require the company to demonstrate that it continues to have access to the financial resources needed to meet our financial test.

10 On November 1, 2008, a Beechcraft King Air owned and operated by Dynamic AvLease, a wholly

- owned subsidiary of Group , was r eported missing when it did not return from a geological surveying mission in a remote area of Guyana. The airline transport

- rated p ilot, commercial

- rated co

- pilot, and a passenger are missing. The accident investigation is under review by the Government of Guyana.7

against it, its key personnel, or persons having a substantial interest in it with respect to compliance with the Transportation Code or the Department’s regulations.

A review of our records and other information available to us has uncovered no information which would reflect negatively on the applicant or any of its key personnel. In addition, according to the FAA, the air carrier has conducted its operations satisfactory and the agency knows of no reason why the air carrier should not be gran ted the authority it is seeking. Moreover, the applicant notes that neither it nor any of its key personnel have been involved in
an accident o r incident in the y ear preceding its application or any time in the past which remains under investigation by th e FAA, the NTSB, or the company itself.

In light of these circumstances, we tentatively conclude that Dynamic Airways has the proper regard for the laws and regulations governing its services to ensure that its aircraft and personnel conform to applic able safety standards and that acceptable consumer relations practices will be
followed.

CITIZENSHIP

Section 41102 of the Transportation Code requires that authority to engage in air transportation be held only by citizens of the United States as defined in 49 U.S.C. § 40102(a)(15). The Statute
also requires that the president and two

- thirds of the Board of Directors and other managing
officers be U.S. citizens

, that at least 75 percent of the outstanding voting interest be owned by
U.S. citiz ens , and that the air carrier must be under the actual control of U.S. citizens.

As noted earlier, Dynamic Airways

, a limited liability company, is organized under the laws of the State of Virginia. M essrs. Michael A. Sto lztfus and Karl D. Stoltzfus, S r. are U.S. citizen s and the sole shareholder s of the applicant. In addition, t he applicant has submitted an affidavit attesting that it is a citizen of the United States within the meaning of the Statute , that all managers are U.S. citizens, and that it is owned and controlled by U.S. citizens. Finally, there is
no other information before us that would lead us to conclude that Dynamic Airways is not controlled by U.S. c itizens

.

I n view of the foregoing, we tentatively conclude that Dynamic Airways is a U.S. c itizen and that it is fit, willing, and able to provide air transportation services as a U.S. certificated air carrier, subject to conditions.

OBJECTIONS

We will give interested persons 14 days following the service date of this order to show cause why the tentative findings and conclusions set forth here should not be made final; answers to objections will be due within 7 days thereafter. We expect such persons to direct their objections, if any, to the application and points at issue and to support such objections with detailed economic analyses. If an oral evidentiary hearing or discovery procedures are requested, the objector should state in detail why such a hearing or discovery is considered necessary, and what material iss ues of decisional fact the objector would expect to establish through a hearing or discovery that cannot be established in written pleadings. The objector should consider whether discovery procedures alone would be sufficient to resolve material
issues of decisional fact. If so, the type of procedure should be specified ( See Part 302, Rules 19 and 20); if not, the reasons why not should be explained. We will not entertain general, vague,8

or unsupported objections. If no substantive objections are filed, we will issue an order that will make final our tentative findings and conclusions with respect to Dynamic Airways’ fitness and certificate authority.

CERTIFICATE CONDITIONS AND LIMITATIONS

If Dynamic Airways is found fit and issued the certificate it s eeks, its authority will not become
effective until the air carrier has fulfilled all of the requirements for effectiveness as set forth in the terms and conditions attached to its certificate. Among other things, this includes (1) our receipt of evidence of Dynamic Airways’ authority from the FAA authorizing such operations

, (2) evidence of liability insurance coverage that meets the requirements of section 205.5(b) of
our rules

, (3) a statement of changes it may have undergone since its fitness was exami ned, and (4) evidence that Dynamic Airways continues to have adequate financial resources available to
it.

We also wish to remind Dynamic Airways of the requirements of 49 U.S.C. § 41110(e). Specifically, that section requires that, once an air carrier is found fit initially, it must remain fit in order to hold its authority. To be assured that certificated air carriers continue to be fit after effective authority has been issued t o them, we require that they supply information describing any subsequent substantial changes they may undergo in areas affecting fitness. Therefore, if Dynamic Airways is issued effective certificate authority and subsequently propose s substantial

c hange s in its ownership, management, or operations, it must first comply with the requirements
of section 204.5 of our rules. 11

Moreover, as discussed in the FITNESS section of this order, our finding of fitness for Dynamic Airways is based on the operating p lans described in its application, namely, performing passenger charter air transportation using five large aircraft. Were the applicant to propose to expand its operations to include additional large aircraft, our fitness findings, particularly involving the adequacy of Dynamic Airways’ management and financial resources, might no longer apply. Therefore, s hould Dynamic Airways desire to operate additional large aircraft, it must first provide the Department with at least 45

- days advance notice of such p lans and provide updated information establishing it fitness for such expansion. The compliance of the company with this requirement is essential if we are to carry out our responsibilities under section 41110(e). 12

11 The air carrier may contact our Air Carrier Fitness Division to report proposed substantial changes in its
operat ions, ownership, or management, and to determine what additional information, if any, will be required under section 204.5. In addition, by notice dated July 21, 1998, the Department requested air carriers to provide a 30

- day advance notification of any p roposed change in ownership, restructuring, or recapitalization. If the air carrier fails to file this updated information or if the information fails to demonstrate that the air carrier will continue to be fit upon implementation of the substantial chang e, the Department may take such action as is appropriate, including enforcement action or steps to modify, suspend, or revoke the air carrier's c ertificate authority.

12 We also remind Dynamic Airways about the requirements of section 204.7 of our rules. This section provides, among other things, that (1) the certificate authority granted to a company shall be revoked if the company does not commence actual flying operations under that authority within one year of the date of the Department's
determination of its fitness; (2) if the company commences operations for which it was found fit and subsequently ceases such operations, it may not resume certificated air carrier service unless its fitness has been redetermined ; and (3) if the company does not resume operations within one year of its cessation, its authority shall be revoked for dormancy.9

Finally, if Dynamic Airways is granted effective authority, it would be required to submit a detailed progress report, within 45 days following the end of the first year of certificated flight operations, to the Air Carrier Fitness Division. The submission of a first year progress report is

co nditioned upon all newly certificated air carriers and was adopted as policy by the Department to aid in monitoring the fitness of new air carriers. The report should include a description of the air carrier’s current operations (number and type of aircra ft, principle markets served, total
number of full

- time employees), a summary of how its operations have changed during the year, a discussion of any changes it anticipates from its current operations during its second year, current financial statements, 13 and a listing of current senior management and key technical personnel. The air carrier should also be prepared to meet with staff members of the Fitness Division to discuss its current and future operations.

ACCORDINGLY,

1. We direct all interested persons to show cause why we should not issue an order making final our tentative findings and conclusions stated above and award a certificate to Dynamic Airways , LLC d/b/a Dynamic Aviation , authorizing it to engage in interstate charter air transportation of persons, property and mail, using five large aircraft, subject to the attached specimen Terms, Conditions, and Limitations.

2. We direct any interested persons having objections to the issuance of an order making final any of the proposed findings, conclusions, or award of authority set forth here to file them with Department of Transportation Dockets, 12 00 New Jersey Avenue, S E

, Room W12

- 140

, Washington, D.C. 20590, in Docket DOT

- OST

- 20 10

- 0058 and serve them upon all persons listed in Attachment A no later than 14 days after the service date of this order; answers to objections shall be filed no later than 7 business days thereafter.

3. We direct Dynamic Airways , LLC d/b/a Dynamic Aviation to submit to the Air Carrier Fitness Division a first year progress report within 45 days following the end o f its first year of actual certificated flight operations.

4

. If timely and properly supported objections are filed, we will accord full consideration to the
matters or issue s raised by the objections before we take further action. 14

5

. In the event that no objections are filed, we will consider all further procedural steps to be waived and we will enter an order making final our tentative findings and conclusions.

13 These financial statements should include a balance sheet as of the end of the company’s first full year of certificated flight operations and a 12

- month income s tatement ending that same date.

14 Since we have provided for the filing of objections to this order, we will not entertain petitions for

reconsideration.10

6

. We w ill serve a copy of this order on the persons listed in Attachment A.

7

. We will publish a summary of this order in the Federal Register.

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 

### SPECIMEN Terms, Conditions, and Limitations

DYNAMIC AIRWAYS , LLC
d / b / a DYNAMIC AVIATION

is authorized to engage in interstate charter air transportation of persons, property and mail between any point in any State, territory, or possession of the United States or the District of Columbia, and any other point in any of those entities.

This auth ority is subject to the following provisions:

(1) The authority to operate under this certificate will not become effective until six (business) days after the Department has received the following documents; provided

, however

, that the Department may sta y the effectiveness of this authority at any time prior to that date:

(a) A copy of the holder's Air Carrier Certificate and Operations Specifications authorizing such operations from the Federal Aviation Administration (FAA).

(b) A certificate of insura nce on OST Form 6410 evidencing liability insurance coverage meeting the requirements of 14 CFR 205.5(b) for all of its aircraft.

(c) A statement of any changes the holder has undergone in its ownership, key personnel, operating plans, financial posture, or compliance history, since the date of the
Show Cause Order in this case.

(d) A revised list of pre

- operating expenses already paid and those remaining to be paid, as well as independent verification that the holder has available to it funds sufficient to cover any remaining pre

- operating expenses and to provide a working capital reserve equal to the operating costs that would be incurred in three months of operations.

(2) Pending receipt of effective authority, the holder may not accept payment of any kind (i.e., cash, check, or credit card), issue tickets for the operations proposed under this certificate, or enter into contracts with charter operators, and any advertisement by the holder must prominently state: "This service is subject to receipt of g overnment operating authority."

(3) 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 ter ms, conditions, and limitations as the Department of Transportation may prescribe in the public interest.

(4) The holder's authority under this certificate is effective only to the extent that such operations are also authorized by the Federal Aviation Ad ministration (FAA), and comply with2

all U.S. Government requirements concerning security , including, but not limited to 49 CFR Part

1544

. 

(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 Title 49 of the United States Code or the Department's regulations shall be sufficient grounds to revoke this certificate.

(7) The holder is not authorized to engage in air transportation operations between points within the State of Alaska.

(8) S hould the holder propose any substantial chang e in its ownership, management, or operations (as defined in 14 CFR 204.2(l)), it must first comply with the requirements of 14 CFR
204.5.

(9) In the event that the holder does not commence actual flying opera tions under this certificate within one year of the date of the Department's determination of its fitness, its authority shall be revoked for dormancy, unless the holder is conducting operations under another type of certificate authority. Further, in the event that the holder commences operations for which it was found "fit, willing, and able" and subsequently ceases all such operations, its authority under all certificates held shall be suspended under the terms of 14 CFR 204.7 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.

 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 advi se 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.Attachment A

SERVICE LIST FOR DYNAMIC AIRWAYS LLC

D/B/A DYNAMIC AVIATION

JOHN R MIETUS
LAW OFFICE OF JOHN MIETUS LLC
6701 DEMOCRACY BLVD
BETHESDA MD 20817

- 7500 MR WILLIAM J WEBER
CERTIFICATION SECTION MANAGER
FAA AFS

- 900
45005 AVIATION DRIVE SUITE 131
DULLES VA 20166

TONY BERNHARDT
PRINCIPLE OPERATIONS INSPECTOR
FEDERAL AVIATION ADM INISTRATION
GREENSBORO FSDO 39
6433 BRYAN BOULIVARD
GREENSBORO NC 27409 MR PETER LYNCH AGC

- 300
ASST CHIEF COUNSEL FOR ENFORCEMENT
FEDERAL AVIATION ADMINISTRATION
800 INDEPENDENCE AVE SW
WASHINGTON DC 20591

MS ANNE SUISSA RTS

- 42
OFFICE OF AIRLINE INFORMATION
DOT/RITA/BTS E

- 34
1200 NEW JERSEY AVE SE
WASHINGTON DC 20590 BERNARD STANKUS
OFFICE OF AIRLINE
INFORMATION
DOT/R IT A/BTS RTS

- 42
1200 NEW JERSEY AVE SE
WASHINGTON DC 20590

CLAY MORITZ
OFFICE OF AIRLINE
INFORMATION
DOT/R IT A/BTS RTS

- 42
1200 NEW JERSEY AVE SE
WASHINGTON DC 20590