Order 2010

- 6

- 17

Served: June 1 6 , 2010

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 1 6 th day of June , 20 10

Fitness Determination of

SCHUMAN AVIATION COM PANY LTD.

d/b/a MAKANI KAI HELICOPTERS

d/b/a KO OLINA HELICOPTERS

d/b/a PACIFIC AIR EXPRESS

d/b/a MAKANI KAI AIR CHART ERS

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

- OST

- 20 10

- 0006

ORDER TO SHOW CAUSE

PROPOSING ISSUANCE OF COMMUTER AIR CARRIER AUTHORITY

Summary

By this order, we tentatively find that Schuman Aviation Company Ltd. d/b/a Makani Kai Helicopters d/b/a Ko Olina Helicopters d/b/a Pacific Air Express d/b/a Makani Kai Air Charters (“ Schuman Aviation ”) is a citize n of the United States and is fit, willing, and able to conduct scheduled passenger operations as a commuter air carrier, subject to conditions.

Background

Section 41738 of Title 49 of the United States Code (“the Statute ”) and section 298. 32 of the Depa rtment’s Aviation Economic Regulations (14 CFR 298. 32 ) direct us to determine whether companies proposing to provide scheduled passenger service as commuter air carriers are “fit, willing, and able to operate the proposed commuter service. ” We must also e nsure that all operations relating to this service conform to the safety standards established by the Federal Aviation Administration ( “ FAA ” ). In making fitness findings, the Department uses a three

- part test that reconciles the Airline Deregulation Act’s liberal entry policy with Congress’ concern for operational safety and consumer protection. The three areas of inquiry that must be addressed in

order to determine a n air carrier’s fitness are whether the applicant: (1) will have the managerial

skills an d technical ability to conduct the proposed operations, (2) has sufficient financial resources to commence the operations proposed without posing an undue risk to consumers or their funds, and (3) will comply with the Statute and regulations imposed by fed eral and state agencies. We must also determine that the applicant is a U.S. citizen.2

On January 4 , 20 10

, Schuman Aviation filed an application in Docket DOT

- OST

- 20 10

- 0006 for authority to provide scheduled passenger operations as a commuter air carrier pursuant to section

41738 of the Statute. Schuman Aviation accompanied its application with the fitness information required by section 204.3 of our regulations (14 CFR 204.3)

. 1

No answers opposing Schuman Aviation’s application were filed and no specia l 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 basis of the written record, and we tentatively conclude that

Schuman Aviation is a U.S. citizen and i s fit, willing, and able to provide scheduled passenger operations as a commuter air carrier. 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 Co mpany

Schuman Aviation , a corporation organized under the laws of the State of Hawaii in October 1996, is wholly owned by Mr. Gustav Richard Schuman. The applicant currently is registered as an air taxi operator under Part 298 of our rules and provides o n

- demand passenger and cargo services under Part 135 of the Federal Aviation Regulations ( “FAR” ) within Hawaii using both Fixed Wing and Rotorwing aircraft. In addition to providing air transportation services, the company is also an approved FAA Part 145 repair station. If granted commuter authorization, the applicant intends to provide daily scheduled passenger service from Honolulu International Airport to Princeville Airport using two 9

- seat Piper PA31

- 350 Chieftain aircraft under an agreement with Ha waii Island Air, Inc. (“Island Air”), a U.S. commuter air carrier, 2 whereby

Island Air w ill market, sell, collect tickets, set flight schedules, load and unload aircraft, and

Schuman Aviation w ill provide the aircraft, pilots, fuel, and maintenance.

Manag erial Competence

Mr. Gustav Richard Schuman has served as Schuman Aviation’s President since he founded the company in 1996. In addition to his duties and responsibilities at Schuman Aviation, he is also a Vice President at Schuman Carriage Company, Ltd. , where he is responsible for the parts and service departments for several vehicle dealerships. Prior to forming Schuman Aviation,

Mr. Schuman was President and Owner of Hawaiian Odyssey Helicopters , a Part 91 Helicopter Company (1996), a Field Superviso r at Industrial Technology (1993

- 1995), and President of Schuman Automotive Company, Ltd. (1980

- 1993). Mr. Schuman has also served in the U.S. Army Reserves (1986

- 1990) and he holds a Commercial Helicopter Pilot license and a Fixed Wing Private Pilot lice nse

.

Mrs. Diane Schuman, has been employed with Schuman Aviation since January 1997, where she is responsible for the day

- to

- day accounting functions of the company. Prior to joining Schuman

Aviation

, she was employed by Hawaiian Odyssey Helicopters wher e she was responsible for the

1 Schuman Aviat ion filed additional information supplementing its application on February 2 5, 2010.

2 See Order 2006

- 6

- 9, issued June 7, 2006.3

company's accounting and bookkeeping functions (1996). In addition, prior to a brief resignation from the workforce in 1988, Mrs. Schuman was employed at Bob Smolinski and Woodell Law

F irm as an Accounting Office Manager (198 4

- 1988) and at Protec and Auto Audio as a Bookkeeper (1981

- 1984).

Mr. Clyde Kawasaki joined Schuman Aviation in June 2009 as its Director of Operations. He

holds an Airline Transport Pilot License and has accumulated over 16,000 total flight hours.

Prio r to joining Schuman Aviation, Mr. Kawasaki was employed by Aloha Airlines as a Boeing 737 Captain (1998

- 2008). Mr. Kawasaki has also previous ly served as a Chief Pilot and Director of Operations at various Part 135 operators

.

Mr. Kyle Gray joined Schuma n Aviation in October 20 09 as its Chief Pilot of Fixed Wing

O perations . He holds an Airline Transport Pilot License and has accumulated over 3,500 total flight hours. Prior to joining Schuman Aviation, he was employed by Alpine Air as a Beech 99 Captain (2009), at Mokulele Airlines as a Cessna Grand Caravan C208B Captain (2008), at Aloha Airlines as a Boeing 737 First Officer (2007

- 2008), at Mesa Air Group as a CL

- 65/EMB

145 Captain/First Officer (2003

- 2007), at Eveland Aero as a Flight Instructor (2002

- 2 003), and at Federal Express as a Ramp Agent (1998

- 2000).

Mr. Eiki Miyasato, an FAA licensed Commercial Pilot, joined Schuman Aviation in 2001 as its Chief Pilot of Rotorwing operations. Prior to this, he was employed by Sunshine Helicopters as a Part 13 5 Pilot (2000

- 2001), by South Sea Helicopters as a Part 135 Pilot (1999

- 2000) , and at Makani Kai Helicopters as a Part 135 Manager (1991

- 1997)

.

Mr. Mike Iven, a n FAA licensed Airframe and Powerplant M echanic, has served as Schuman

Aviation’s Director of M aintenance since June 2008. In addition to his duties and responsibilities at Schuman Aviation , Mr. Iven became Manager of Schuman Aviation’s Part 145 Repair Station Division in 2009 and he has been Robinson Helicopter Factory Service Center’s

maintenance representative in Hawaii since 1999. Prior to joining Schuman Aviation, Mr. Iven served as President at Cessna Service Center (2007

- 2008), as Director of Maintenance at All Island Aviation (2006

- 2007), as Director of Maintenance at Rainbow Pacific Helico pters ( 2000

- 2004), and as an Airframe and Powerplant Mechanic for several repair stations in Hawaii (199 5

- 199 9 ).

In view of the experience and background of the applicant’s key personnel, we tentatively

conclude that Schuman Aviation ’s management team p ossesses the managerial skills and technical ability to conduct the proposed operations. 3

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

- person test
of the skills and technical ability of these individuals. The FAA has advised us that Schuman Aviation ’s key technical personnel are acceptable to that agency in their respective positions.4

Operating Proposal and Financial Plan

If granted the commuter authorization it seeks, Schuman Aviation intends to operate scheduled service five times daily betwe en Honolulu International Airport and Princeville Airport using two Piper PA31

- 350 Chieftain aircraft configured for 9 passenger seats. As previously noted, Schuman Aviation intends to operate these flight under an agreement with Island Air, whereby

Islan d Air will market, sell, collect tickets, set flight schedules , load and unload aircraft, and

Schuman Aviation will provide the aircraft, pilots, fuel, and maintenance.

In support of its application, Schuman Aviation submitted current and h istorical fin ancial

statements demonstrating the company’s most recent results from operation s . The historical profit and loss statements provided by the applicant show that f or calendar year 2008

, the company reported net income of $331,630 on approximately $ 2.66 mil lion in operating

revenues ; f or calendar year 2009

, the company reported a net loss of $217,168 on approximately $ 1.92 million in operating revenues ; and for the quarter ending March 31, 2010, the company reported net income of $ 211,270 on approximately $ 7 13,323 in operating revenues . In addition, the company’s M arch 31 , 2010, balance sheet shows that it has c urrent assets of $ 573,022 and current liabilities of $ 303,755

, giving the company a positive working capital balance of $ 269,267

.

Schuman Aviation also provided the Department with a financial forecast for its first year of scheduled operations and a list of pre

- operating expenses. Schuman Aviation states that it expects to incur no significant pre

- operating expenses since it already provides on

- de mand air service in the markets it proposes to operate scheduled service. The applicant projects total operating expenses of about $ 1.56 million for its first year of scheduled service. Based on our evaluation, w e find these e xpense projections reasonabl e and estimate that the company will need approximately $ 390,000 to meet our financial fitness test. 4

Schuman Aviation states that it will fund its proposed commuter operations from internal funds and with additional funding from Mr. Schuman, the compan y’s sole owner, if necessary. In this regard, the company provided a letter from Mr. Schuman stating that he would make additional funding available to the applicant as necessary to meet the Department’s fitness criteria prior to receiving effective autho rity.

In light of the above , we tentatively conclude that Schuman Aviation 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. 5

4 We have generally asked that new entrant applicants have resources sufficient to cover all pre

- o perating costs, plus a working capital reser ve equal to the operating costs that would be incurred in three months of normal

commuter operations. However, 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.

5 As is our practice, prior to making any authority awarded to Schuman Aviation effective, we will require the company to provide third

- party verification evidencing that it has actual ly obtained the financial resources needed to

meet our financial test.5

Compliance Dispos ition

Schuman Aviation identified one pending civil lawsuit against it . The lawsuit was filed on June 18, 2009, in the U.S. District Court of Hawaii by the United States of America

. The parties

seek to determine whether certain helicopter tour operati ons conducted by Schuman Aviation were subject to federal excise taxes. Schuman Aviation maintains that as a helicopter tour operator it was exempt from the tax and it is therefore seeking a refund of the federal excise taxes it paid in regards to its hel icopter tour operations. Schuman Aviation further contends that several helicopter tour operators have prevailed in summary judgments in similar cases and that it also expects to succeed on the merits.

Our review of FAA records indicate that Schuman Avia tion has been cited for no violations and it has been involved in only one accident in the five years preceding its application , of which no injuries or fatalities occurred. 6 Further, the FAA has advised us that the applicant is making satisfactory progre ss in obtaining the required safety authority for the operations proposed and

that it has no objection to the Department’s approval of Schuman Aviation ’s application for commuter authority.

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

- competitive business practices, 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 Department against it, its key personnel, or persons having a substantial interest in it with respect to

com pliance with the Statute or the Department’s regulations. Moreover, o ur review of the applicant ’s compliance disposition has produced no evidence of any compliance issues other than those disclosed by the applicant. While we note that the applicant has a pending action against it for alleged violation s of federal regulations

, this matter is being appropriately adju di cated and it does not appear that and adverse finding in this case would wa rrant a negative fitness finding considering the applicant’s compl iance record.

In light of these circumstances, we tentatively conclude that Schuman Aviation has the proper regard for the laws and regulations governing its services to ensure that its aircraft and personnel conform to applicable safety standards and tha t acceptable consumer relations practices will be

followed.

CITIZENSHIP

The Statute 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 t hat the president

and two

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

, that at

6 On January 5, 2009, a Schuman Aviation operated Eurocopter AS 350 BA crashed upon landing atop a ridge at an elevation of about 2,400 feet . On November 9, 2009, the National Transpo rtation Safety board released its final report noting that the probable cause of the accident was partial loss of engine power for an undetermined reason during landing. No fatalities or injuries were reported as a result of the accident.6

least 75 percent of the outstanding voting interest be owned by U.S. citizens , and that t he air

carrier must be under the actual control of U.S . citizens.

As noted earlier, Mr. Gustav Richard Schuman, the sole shareholder

, sole director , and President of Schuman Aviaiton, is a U.S. citizen

. Moreover, all of Schuman Aviation’s other key personnel are U.S. citizens and t he applicant has provide d an affidavit attesting that it is a citizen of the United States within the meaning of the Statute and that it is owned and controlled by U.S.

citizens. O ur review of the applicant has uncovered no reason to suggest that control of

Schuman Aviation rest s with non

- U.S. citizens.

I n light of the foregoing, we tentatively find that Schuman Aviation is owned and actually controlled by U.S. citizens, consistent with 49 U.S.C. § 40102(a)(15) and is fit, willing, and able to provide commuter operations, subjec t 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 da ys 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 obj ector should state in detail why such a hearing or discovery is considered necessary, and what material issues of decisional fact the objector would expect to establish through a hearing or discovery that cannot be established in written pleadings. The ob jector 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, 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 Schuman Aviation ’s fitness and

C ommuter A ir C arri er A uthorization

.

EFFECTIVE COMMUTER AUTHORIZATION

CONDITIONS AND LIMITATIONS

In the event that we find Schuman Aviation fit, willing, and able to conduct the proposed scheduled service, we will issue to it a Commuter Air Carrier Authorization. However, that authorization will not become effective until the company has fulfilled all of the requirements for effectiveness as set forth in the Terms, Conditions, and Limitations attached to it. Among other things, this includes (1) our receipt of evidence of Schuman Aviation ’s 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 examin ed, and (4) evidence that Schuman Aviation has adequate financial

resources available to it.

Moreover, given the limited scope of Schuman Aviation’s proposed operations, we will impose certain limitations on its authorization to provide scheduled air tran sportation as a commuter air7

carrier. Our finding of fitness for Schuman Aviation is based on the operating plans described in its application, namely, utilizing aircraft that can be operated under Part 135. Should Schuman Aviation desire to acquire and operate larger aircraft that would require certification from the FAA under Part 121, our fitness findings, particularly involving the adequacy of Schuman Aviation’s management and financial resources, might no longer apply. Therefore, we propose

to limit any authority issued to Schuman Aviation to operations conducted under Part 135. Should Schuman Aviation desire to operate aircraft that would require certification from the FAA under Part 121, it must first provide the Department with at least 45

- days a dvance notice of such plans and provide updated information establishing its fitness for such expansion.

Furthermore, we remind Schuman Aviation 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 commuter air carriers continue to be fit after effective authority has been issued to them, we require that they supply information describing any subsequent subst antial changes they may undergo in areas affecting fitness. Therefore, if

Schuman Aviation is issued an effective Commuter Air Carrier Authorization and should it subsequently propose substantial changes in its ownership, management, or operations, it mus t first comply with the requirements of section 204.5 of our rules. 7 The compliance of the company with this requirement is essential if we are to carry out our responsibilities under
section 41110(e). 8

Additionally, if Schuman Aviation is granted effect ive authority, it would be required to submit a detailed progress report, within 45 days following the end of the first year of commuter flight operations, to the Air Carrier Fitness Division. The submission of a first year progress report 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 aircraft, principal 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, 9

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

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

8 We also remind Schuman Aviation about the requirements of section 204.7 of our rules. This section provides, among other things, that (1) the commuter authority granted to a company shall be revoked if the company does not

commence actual fl ying 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 commuter operat ions 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 These financial statements should include a balance sheet as of the end of th e company’s first full year of commuter flight operations and a 12

- month income statement ending that same date.8

ACCORDINGLY,

1. We direct all interested persons to show cause why we should not issue an order finding that

Schuma n Aviation Company Ltd. d/b/a Makani Kai Helicopters d/b/a Ko Olina Helicopters d/b/a Makani Kai Air Charters d/b/a Pacific Air Express is fit, wi lling, and able under 49 U.S.C. § 41738 to provide scheduled passenger service as a commuter air carrier using small aircraft pursuant to Part 135 of the Federal Aviation Regulations.

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 fil e 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

- 0006 and serve them upon all persons listed in Attachment A no later than 14 days after the service date of this orde r; answers to objections shall be filed no later than 7 business days thereafter.

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

. 10

4. 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.

5

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

6

. 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

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

reconsideration.

### Attachment 

### Specimen



### Terms, Conditions, and Limitations

SCHUMAN AVIATION COMPANY LTD.

D/B/A MAKANI KAI HEL ICOPTERS

D/B/A KO OLINA HELIC OPTERS

D/B/A MAKANI KAI AIR CHARTERS

D/B/A PACIFI C AIR EXPRESS

is authorized to engage in scheduled passenger air transportation operations as a commuter air

carrier.

This authority is subject to the following provisions:

(1) The authority to conduct scheduled passenger operations will not become eff ective until six (business) days after the Department has received the following documents; provided

, however , that the Department may stay the effectiveness of this authority at any time prior to that

date:

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

(b) A certificate of insurance on OST Form 6410 evidencing liability insurance coverage meeting the requirements of 14 CFR 205.5(b) for all of it s 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 expen ses 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 th at 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) or issue tickets for scheduled passenger operations, and any

advertisement or listing of flights by the holder must prominently state: "This service is subject to receipt of government operating authority."

(3) The holder shall at all times conduct its operations in accordance with the requirements of 14 CFR Part 298 and any othe r regulations prescribed by the Department of Transportation2

for the services authorized here, and with such other reasonable terms, conditions, and limitations as the Department of Transportation may prescribe in the public interest.

(4) The holder’s au thority is limited to operations conducted pursuant to Part 135 of the Federal Aviation Regulations. In the event that the holder wishes to institute operations that would require Part 121 certification from the FAA, it must first be determined fit for su ch operations.

( 5 ) The holder may not operate aircraft designed to have a maximum passenger capacity of more than 60 seats or a maximum payload capacity of more than 18,000 pounds.

( 6 ) The holder's authority under this certificate is effective only to th e extent that such operati ons are also authorized by the FAA, and comply with all U.S. Government requirements concerning security , including, but not limited to 49 CFR Part 1544

. **∗**

( 7

) The holder shall at all times remain a "Citizen of the United States " as required by

49 U.S.C. § 40102(a)(15).

( 8 ) The holder shall maintain in effect liability insuran ce coverage as required under

14 CFR Part 205. Failure to maintain such insurance coverage will render this authority 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 authority.

( 9 ) In the event that the holder receives effective scheduled passenger authority, t he following additional conditions will apply:

(a) The holder may reduce or terminate service at any point or between any two points, subject to compliance with the provisions of 49 U.S.C. § 41734 and all orders and regulations issued by the Department of Transportation under that

section.

(b) The holder may not provide scheduled passenger air transportation to or from Dallas (Love Field), Texas, except within the limits set forth in section 29 of the International Air Transportation Compet ition Act of 19 79, as amended or as modified by any future legislation addressing access restrictions to or from Love

Field.

.

( 10 ) Should the holder propose any substantial changes in its ownership, management, or operations (as that term is defined in 14 CFR 204.2(l)) , it must first comply with the requirements of 14 CFR 204.5.

**∗** To assure complian ce 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 advise the PSI of its p lans and to find out whether the Transportation Security Administration has determined that security is adequate to allow such airport(s) to be served.3

(1 1 ) In the event that the holder does not commence actual flying operations as a commuter air carrier under this authority within one year of the date of the Department's determination of

its fitness, its commuter authority shall be revoked for dormancy. Further, in the event that the holder commences but subsequently ceases all scheduled passenger operations, the authority granted here shall be suspended under the terms of 14 CFR 204.7 and th e 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 such operations within one year of its cessation, its commuter authority shall be re voked for dormancy.Attachment A

SERVICE LIST FOR

SCHUMAN AVIATION COMPANY LTD.

D/B/A MAKANI KAI HEL ICOPTERS

D/B/A KO OLINA HELIC OPTERS

D/B/A MAKANI KAI AIR CHARTERS

D/B/A PACIFIC AIR EX PRESS

RICHARD SCHUMAN

PRESIDENT

SCHUMAN AVIATION COMPANY L TD

130 IOLANA PLACE

HONOLULU HAWAII 96819 PETER LYNCH AGC

- 300

ASST CHIEF COUNSEL FOR ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

WILLIAM J WEBER

CERTIFICATION SECTION MANAGER

FAA AFS

- 900

45005 AVIATION DRIVE S UITE 131

DULLES VA 20166 GINO REZZONICO

PRINCIPLE OPERATIONS INSPECTOR

FEDERAL AVIATION ADM INISTRATION

HONOLULU FSDO

135 NAKOLO PLACE

HONOLULU HAWAII 9681 9

ANNE SUISSA RTS

- 42

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS E

- 34

1200 NEW JERSEY AVE SE

WASHIN GTON DC 20590 BERNARD STANKUS

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS RTS

- 42

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

CLAY MORITZ

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS RTS

- 42

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590