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 17th day of August, 2011

Application of

UNIVERSAL JET AVIATION, INC.

for an exemption 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-configured Boeing 737 aircraft, commonly called a Boeing Business Jet (“BBJ”), in 

on-demand air transportation as an air taxi.

Background 

Universal Jet is a corporation 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 

holds 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

pendente 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, 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION
2

registration number N920DS, in on-demand charter operations pending the Department’s action 

on its contemporaneously filed applications 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-demand 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 associated with 

the operations of the BBJ are borne 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 that 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 advised 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

We 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 and 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 immediately upon being notified of the processing error in accepting its 

 

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

here. 2 In 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 Notice 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 find 

that granting 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 is 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 applications for certificates of 

public convenience and necessity or any aspect of those applications. 

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 executiveconfigured 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 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
SERVICE 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 145TH STREET

 SUITE 120

 MIRAMAR FL 33027

REGIONAL COUNSEL

FEDERAL AVIATION ADMINISTRATION

SOUTHERN REGION

PO BOX 20636

ATLANTA GA 30320 

MR GERALD F MURPHY

MS LORRAINE 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