Order 2011

- 12

- 18
Served: December 22, 2011

UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 22 nd day of December

, 2011

Application of

GOJET AIRLINES , LLC
d/b/a UNITED EXPRESS

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

- OST

- 2011

- 0193

ORDER AMENDING CERTIFICATE

Summary

By this order, we amend the certificate of public convenience and necessity issued to GoJet Airlines, LLC d/b/a United Express (“GoJet”) by removing a condition in the air

carrier’s certificate that limits the number of aircraft in its fleet

.

Background

On October 21, 2011

, GoJet filed an application in Docket DOT

- OST

- 2011

- 0193 for an amendment to its certificate to remove the condition that imposes fleet restrictions on the

air carrier. In support of its request, GoJet asserts that removal of this restriction will

enable it to increase its fleet by 15 additional aircraft, bringing the air carrier’s fleet size

to 40 total aircraft. GoJet states that with the additional 15 aircraft, the air carrier intends

to operate as “Delta Connection,” provid ing scheduled passenger feeder service to Delta Air Lines, Inc. (“Delta”), pursuant to an air services agreement with Delta. GoJet intends

to commence these flights in December 2011. 1

GoJet states that it has substantial financial resources to support the removal of the fleet restriction and that its key management and technical personnel have the requisite experience to oversee any expanded operations.

Answers to GoJet’s application were due November 9, 2011 . No answers were received.

1 GoJet requests that the Department register the trade name “Delta Connection” for use in the air carrier’s operations.

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

FITNESS

The Company

By Order 2005

- 8

- 1 0, issued August 16, 2005, the Department found GoJet fit, willing, and able to conduct interstate scheduled air transportation and issued to it a certificate authorizing it to engage in interstate scheduled passenger operations. At that time, the Departm ent limited the number of large aircraft that GoJet could operate to five aircraft.

Since then, t he Department has gradually increased the number of aircraft that GoJet is permitted to operate in the context of informal continuing fitness reviews. The air carrier currently operates a fleet of 25 aircraft under a fee

- for

- service agreement with United Air

L ines

, Inc (“United”)

. In its request for an amendment, GoJet states that it intends to increase its fleet by 15 additional aircraft to be operated under a similar agreement for

Delta.

Managerial Competence

GoJet provided a list of its key management and technical personnel and states that with the exception of the air carrier’s Direct or of Safety, none of its key management and technical personnel has changed since the air carrier was initially found fit

. The following individuals, all U.S. c itizens, se r ve as GoJet’s key management and technical personnel:

Hulas Kanodia, Managing Director Gerald F. Wigmore, Secretary Treasurer Daniel Reed, Director of Operations William S. Reid, Director of Maintenance Jeffrey S. Craig, Chief Inspector Dennis S. Craig, Chief Pilot Jennifer L. Zahn, Director of Safety

Ms. Jennifer Zahn became GoJet’s Director of Safety in December 2010. Sh e initially joined GoJet as a pilot in October 2005. In December 2007 , Ms. Zahn became GoJet’s Manager of Standards un til taking her current position . Before coming to GoJet,

Ms. Zahn was an Adjunct Professor for Parks College of Engineering and Aviation (January 2003

– October 2005). Prior to that, she worked as a pilot for Air Midwest (March 1995

- November 1995), Trans States Airlines (November 1995

– April 1999) and Trans World Airlines/American Airlines (April 1999

– October 2002).

In view of this informat ion, we conclude that GoJet has demonstrated that its key management and technical personnel have the skills and technical abilities to support its request for the removal of its fleet restriction.3

Operating Plans and Financial Condition

As mentioned previous ly, GoJet currently provides feeder service for United under a

fee

- f or

- service contract. Starting in December 2011, GoJet intends to commence feeder

service as “Delta Connection” for Delta under a similar agreement. Under its agreement

with Delta , GoJet will receive guaranteed cost reimbursement, and GoJet intends to operate 15 additional Bombardier CRJ

- 700 aircraft, all of which will be owned by Delta.

In support of its request to amend its certificate, GoJet submitted its September 30, 2011,

ba lance sheet showing the air carrier having current assets of $38.1 million and current liabilities of $30.6 million, giving the company positive working capital of approximately $7.5 million. GoJet also submitted its 9

- month income statement ending the sa me period, showing revenues of $192 million and net income of $7.2 million. Additionally, GoJet provided third party verification from its financial institution showing GoJet hav ing $31.2 million in cash on deposit. GoJet also filed first

- year projected expenses of $45.7

million associated with the operation of 15 additional aircraft

.

In evaluating an applicant’s financial fitness, the Department generally asks that the company have available to it resources sufficient to cover all pre

- operating costs p lus a working capital reserve equal to the operating costs that would be incurred in three months of normal certificated operations. However, w e generally do not find it necessary to apply our normal working capital reserve requirement in cases where a n e xisting air

carrier is requesting removal of the condition in its certificate that limit s its fleet, provided the company is able to demonstr ate that it is financially fit. In GoJet’s case, the

air carrier has adequate cash and positive working capital. Moreover

, GoJet does not provide independent scheduled passenger air transportation and the air carrier is being

reimbursed for the feeder services it provides to well

- established major airline s under

contract

.

In light of the above, we conclude that GoJet has access to sufficient financial resources and poses no undue risk to consumers or their funds.

Compliance Disposition

Our review of Federal Aviation Administration (“FAA”) records and other data available

to us indicates that GoJet has not had any accidents or incidents over the past 12 months; however, the FAA has initiated 9 enforcement actions against GoJet over the past year

. One of these enforcement actions pertains to recordkeeping, while the remaining eight are related to alleged maintenance violations. Since all of these enforcement actions appear to be typical for a company of this size and scope , and t he FAA has advised u s that it has no objections to us granting the request, we see no reason why we should not act favorably on GoJet’s request.4

In light of these circumstances, we conclude that GoJet has the proper regard for the laws and regulations governing its opera tions to ensure that its aircraft and personnel conform to applicable safety stan dards and that acceptable consumer relations practices will be

followed.

DECISION

The Department has reviewed the information submitted by GoJet and finds it appropriate to remove the aircraft limitation from the air carrier’s certificate . At the time

that GoJet was found fit to operate large aircraft, the Department’s practice was to monitor new entrants more closely f or the first five years of o perations and limit fleet growth in order to give the air carrier’s key management and technical personnel experience in overseeing scheduled passenger operations. This fleet restriction stemmed

from recommendations from the FAA 90 Day Safety Review of Se ptember 1996. O ver past the five year s , the FAA has closely overseen and regulated GoJet’s fleet growth and

continues to do so.

In consideration of the above, the Department finds it appropriate to approve GoJet’s request. The air carrier’s financial condition has remained strong and the Department

finds no reason to continue to restrict GoJet’s operations. Moreover, GoJet’s key management and technical personnel are more experienced in overseeing scheduled passenger operations than they were at the t ime that GoJet was initially found fit. We remind GoJet, however, that although the Department is no longer requiring the air carrier to seek economic approval to operate additional aircraft, the air carrier is still subject to FAA safety approval before adding aircraft to its Operations Specifications.

ACCORDINGLY,

1. We remove the condition in the interstate c ertificate of p ublic c onvenience and

n ecessity issued to GoJet Airlines, LLC d/b/a United Express, by Order 2005

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- 10 that imposes a limitation on the number of aircraft the air carrier is authorized to operate.

2. We reissue the interstate scheduled passenger certificate of public convenience and necessity issued to GoJet Airlines, LLC d/b/a United Express, by Order 2005

- 8

- 10 in the

form and s ubject to the Terms, Conditions, and Limitations attached.

3. We direct that, should GoJet Airlines, LLC d/b/a United Express propose to conduct independent operations, it must first notify the Department in writing at least 45 days prior to the proposed change in operations.

4. We register the trade name “Delta Connection” to GoJet Airlines, LLC d/b/a United Express for use in certain of its operations.5

5

. We will serve a copy of this order on all persons listed in Appendix 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

# Certificate of Public Convenience and Necessity for Interstate Air Transportation

This Certifies That



# GOJET AIRLINES, LLC

d/b/a UNITED EXPRESS

d/b/a DELTA CONNECTION

(as reissued)



### is authorized, subject to the provisions of Subtitle VII of Title 49 of United States Code, the orders, rules, and regulations issued thereunder, and the attached Terms, Conditions, and Limitations, to engage in interstate air transportation of persons, property, and mail.

This Certificate is not transferable without the approval of the Department of Transportation.

By Direction of the Secretary

Issued by Order 201 1

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- 18 Susan L. Kurland

On December 22, 2011 Assistant Secretary for Effective on December 22, 2011 Aviation and International Affairs

### Attachment

∗ 

### As reissued by Order 2011

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### Terms, Conditions, and Limitations

GOJET AIRLINES, LLC

d/b/a UNITED EXPRESS

d/b/a DELTA CONNECTION

is authorized to engage in interstate 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 p oint in any of those entities.

This authority is subject to the following provisions:

(1) 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 terms, conditions, and limitations as the Department of Transportation may prescribe in the public interest.

(2) The holder's authority under this certificate is effective only to the extent that such op erations are also authorized by the Federal Aviation Administration (FAA), and comply with all U.S. Government

requirements concerning security. ∗ ∗

(3) The authority contained in this certificate shall remain effective only so long as the holder remains

a wholly

- owned subsidiary of Trans States Holdings, Inc.

(4) T he scheduled passenger authority contained herein will be limited to operations performed under a fee

- for

- service agreement, or a similar agreement

, with another major U.S. air carrier.

(5) Th e 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 authorized to conduct charter flights in interstate and/or foreign air transportation

in accordance with the provisions of 14 CFR 212

.

∗ This certificate is being reissued to remove a restrictive condition.

∗ ∗ 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 advise the PSI of its plans and to find out whether the Transportation Security

Administration has d etermined that security is adequate to allow such airport(s) to be served.2

( 8 ) 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.

( 9 ) The holder may not provide scheduled passenger air transportation to or from Dallas (Love Field), Texas, except within the lim its set forth in section 29 of the International Air Transportation Competition Act of 1979, as amended by section 337 of the Department of Transportation and Related Agencies Appropriations Act, 1998.

( 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.

(1 1 ) In the event that the holder commences but subsequently ceases all operations for which it w as found “fit, willing and able,” its authority under this certificate 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 Departmen t. Moreover, if the holder does not resume operations within one year of its cessation, its authority shall be revoked for dormancy.Attachment A

SERVICE LIST FOR GOJET AIRLINES, LLC

d/b/a UNITED EXPRESS

d/b/a DELTA CONNECTION

MR DAVID J A HAYES III

VICE PRESIDENT & GEN ERAL COUNSEL

TRANS STATES HOLDING S INC

11495 NAVAID ROAD

BRIDGETON MO 63044 MR WILLIAM J WEBER

CERTIFICATION SECTION MANAGER

FAA AFS

- 900

45005 AVIATION DRIVE SUITE 131

DULLES VA 20166

MS LISA A HARIG

COUNSEL FOR GOJET AIRLINES LLC

MCBREEN & KOPKO

1501 LEE HIGHWAY

SUITE 180

ARLINGTON VA 2209 MR PETER LYNCH AGC

- 300

ASST CHIEF COUNSEL FOR ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

MR RICK MCGUIRE

POI FOR GOJET A I RLINES LLC

FEDERAL AVIATION ADM INISTRATION

ST LOUIS FSDO

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10801 PEAR TREE L A N E

ST ANN MO 63074 MS ANNE SUISSA RTS

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OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS E

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1200 NEW JERSEY AVE SE

WASHINGTON DC 20590