Order 2011

- 8

- 19
Served: August 17 , 2011

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY
WASHINGTON, D.C.

Issued by the Department of Transportation

on the 17 th day of August

, 2011

A pplication of

UNIVERSAL JET AVIATION, INC.

for an e xemp tion from the provisions of 14 CFR

Part 298 Docket DOT

- OST

- 2011

- 0152

ORDER GRANTING EXEMPTION

Summary

By this order, we grant a limited exemption to Universal Jet Aviation Inc

. (“ Universal Jet ”)

, from
the provisions of 14 CFR Part 298 (“Part 298”) of the Department’s Economic Regulations

, to the extent necessary to allow the air carrier to operate , through November 30, 2011, a certain

executive

- c onfigured Boeing 737 aircraft , commonly called a Boeing Business Jet (“BBJ”)

, in

on

- demand air transport ation as an air taxi

.

Background

Universal Jet is a corporati on organized under the laws of the State of Florida. The air carrier,
headquartered in Boca Raton, Florida

, has operated as an air taxi under Part 298 since 1999

, and

hold s a Part 135 Federal Aviation Regulation (“FAR”) operating certificate from the Federal

Aviation Administration (“FAA”) . It operates a fleet of 11 Gulfstream business jets, 1 Learjet,

and 1 Bell helicopter. The air carrier states it is a U.S. citizen and that its sole shareholder and

President , Mr. Michael McCauley, is a U.S. citizen.

The Application

On August 15, 2011, Universal Jet filed an application in the subject docket requesting a
pendent e lite exemption from Part 298 to allow it to operate one executive configured BBJ

, 1

1 Normally, aircraft with only 16 seats would not require certificate authority since such aircraft generally qualify
as “small” aircraft that can be operated under the Part 298 air taxi exemption. However, the BBJ, which is a

modified B

- 737, and other similar sized aircraft are “large” aircraft

, i.e., aircraft originally designed to have a
maximum passenger capacity of more than 60 seats or a maximum payload capacity of more than 18,000 pounds,

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

N2

registration number N920DS, in on

- demand charter operations pending the Department’s action
on its contemporaneously filed application s for interstate and foreign passenger charter
certificate authority

. 2

Universal Jet argues that that the temporary relief requested poses no material issues to the
company’s ability to operate the BBJ in charter operations. In fact, Universal Jet states that it
has until recently operated the BBJ as part of its current on

- d emand air taxi operations, having
had the BBJ approved and added to its Operations Specifications by the FAA and its registration
of the aircraft under 14 CFR Part 298 approved earlier this year. Universal Jet also states that
“aside from technical design capacity specifications, this 16

- seat BBJ has essentially the same
characteristics, capability and operational profile as the other 13 charter aircraft on Universal’s

air carrier certificate.” 3 The air carrier further maintains that because all costs ass ociated with
the operations of the BBJ are born e by its owner pursuant to an aircraft management agreement,
concern regarding the financial impact of the addition of the BBJ to Universal Jet’s Operations
Specifications is minimal. Universal Jet states th at the information provided in its applications
for certificate authority clearly establishes its fitness to conduct charter operations with this

aircraft. Moreover, Universal Jet contends that , in reliance on the approvals received earlier this

year, it has entered into contracts to provide charter air transportation using the BBJ and that its
next contractually obligated flight is scheduled for August 17, 2011, to provide return
transportation for passengers now in Saudi Arabia. Universal Jet further ad vised the Department
that it has contracted flights with the aircraft through the end of November 2011.

No answers opposing Universal Jet ’s exemption request were filed.

Decision

W e have determined that it is consistent with the public interest to grant a limited exemption to

Universal Jet from the provisions of Part 298 so that it may conduct certain on

- demand charter
operations using the BBJ previously accepted on its FAA Operations Specifications for a limited
period, not to exceed November 30 , 2011

. 4 Because Universal Jet’s air taxi registration was
inadvertently processed with the addition of the BBJ , Universal Jet reasonably believed that that
the BBJ qualified for air taxi service when placed in operation, and thus entered into contracts

, including a long

- term contract, for the use of this specific aircraft. We find that the grant of this
exemption will alleviate, especially for the immediate period, the risk of stranding passengers
relying on Universal Jet for return air transportation an d inconvenience and possible additional
expense for passengers who already have contracted for the use of this aircraft . In addition, we

find that since Universal Jet submitted applications for the appropriate economic authority to
operate the BBJ immedia tely upon being notified of the processing error in accepting its

which do not qualify for the air taxi exem ption. Thus, Universal Jet has applied for the exemption authority at issue

here

. 2 I n the same docket, Universal Jet filed a Motion to shorten the answer period, requesting that answers to its
exemption request be filed no later August 16, 2011. By Not ice dated August 15, 2011, the Department granted the
air carrier’s request.

3 See Application of Universal Jet Aviation, Inc. for Pendente Lite Exemption and Motion to Shorten Answer

Period, at 3.

4 The grant of exemption in this case does not limit the number of small , non

- BBJ aircraft Universal Jet may use
in its current air taxi operations.3

registration of the BBJ under Part 298 , it has shown a good faith effort to comply with the laws
and regulations governing its services

, and for this and the other reasons stated above

, we f ind

that grant ing temporary relief is appropriate

. We point out the temporary nature of this
exemption , the fact that the exemption is limited to the specific aircraft involved, registration

number N920DS, and that we expect the air carrier to prosecute i s applications for appropriate
authority as expeditiously as possible. We also note that Universal Jet should not construe our
grant of this limited exemption as a decision to approve the related application s for certificate s of
public convenience and necessity or any aspect of those application s

.

ACCORDINGLY,

1. We grant Universal Jet Aviation , Inc.

, an exemption until November 30, 2011, from the
provisions of 14 CFR Part 298 to the extent necessary to enable it to operate an executive

configured Boeing 737 aircraft

, registration number N920DS, in on

- demand charter operations

.

2. We may amend, modify, or revoke this order at any time and without hearing.

3. We will serve a copy of this order on th e 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.govSERVI CE LIST FOR
UNIVERSAL JET AVIATION, INC ATTACHMENT A

MR MICHAEL MCAULEY

PRESIDENT

UNIVERSAL JET AVIATION INC

3700 AIRPORT ROAD

SUITE 204

BOCA RATON FL 33431 MR JERRY PROENZA

FEDERAL AVIATION ADMINISTRATION

PRINCIPAL OPERATIONS INSPECTOR

SOUTH FLORIDA FSDO

2895 SW 145 TH STREET

SUITE 120

MIRAMAR FL 33027 REGIONAL COUNSEL

FEDERAL AVIATION ADMINISTRATION

SOUTHERN REGION

PO BOX 20636

ATLANTA GA 30320

MR GERALD F MURPHY

MS LOR R AINE B HALLOWAY

CROWELL & MORING LLP

1001 PENNSYLVANIA AVENUE NW

WASHINGTON DC 20004 MR KEN DAY

AIRPORT MANAGER

3701 FAU BOULEVARD

SUITE 205

BOCA RATON FL 33431 MR PIERRE MURPHY

1200 NEW HAMPSHIRE AVE NW

SUITE 800

WASHINGTON DC 20036

MR MALCOLM BENGE

888 SEVENTEENTH ST NW

SUITE 700

WASHINGTON DC 20006 MS ANNE SUISSA RTS

- 42

OFFICE OF AIRLINE INFORMATION

DEPARTMENT OF TRANSPORTATION

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590 MR JAMES TELLO

PO BOX 66824

WASHINGTON SQUARE STATION

WASHINGTON DC 20035

MR MARSHALL SINICK

1201 PENNSYLVANI AVE NW

SUITE 500

WASHINGTON DC 20004 MR PETER LYNCH

ASST CHIEF COUNSEL FOR

ENFORCEMENT AGC

- 300

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVENUE SW

WASHINGTON DC 20591