Order 2014

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Served: March 3 1, 2014

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

Issued by the Department of Transportation

on the 3 1 st day of March , 20 1 4

Application of

NATIONAL AIR CARGO GROUP, INC.
d/b/a NATIONAL AIRLINES

f

or an amended certificate of public convenience and necessity under 49 U.S.C. 41 102 to engage in foreign

scheduled air transportation of persons, property

, and

mail Docket DOT

- OST

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- 0204

ORDER STAYING EFFECTIVENESS OF FOREIGN CERTIFICATE

Summary

By this order, we are staying for a period of 30 days the effectiveness of the amended section

41102 certificate issued to National Air Cargo Group, Inc. d/b/a National Airlines (“National”), authorizing it to engage in foreign scheduled air transportation of persons, property, and mail, between a point or points in the United States, a point or points in the United Arab Emira tes and beyond to a point or points in Afghanistan.

Background

By Order 2013

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- 12 , issued July 12 , 2013

, the Department found National fit, willing, and able

to conduct foreign scheduled passenger air transportation and issued to it a n amended certificate of public convenience and necessity authorizing it to engage in such operations, subject to conditions. Specifically, the order directed that

, should National wish to operate its own aircraft

between the United States and the United Arab Emir ates, or should it wish to operate more than six cargo aircraft and/or more than two passenger aircraft, it must first provide the Department with at least 45 days advance notice of such plans and provide updated information establishing

its fitness for su ch expansion prior to commencement.

Under its terms and conditions, National’s foreign scheduled passenger certificate would become effective on the sixth business day after the Department received, a mong other things, (1) evidence that Nation al has be en certificated by the FAA to engage in foreign scheduled passenger operations, (2) evidence of liability insurance coverage that meets the requirements of2

section 205.5(b) of our rules, (3) a statement of changes it may have undergone since its fitness

was examined, and (4) evidence that National continues to have adequate financial resources

available to it to cover any pre

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

On March 24, 2014, National provided updated fitness information to make its foreign scheduled certificate effective, including evidence of appropriate liability insurance, a copy of its bank statement from Wells Fargo Bank showing the amount of cash the company has on hand , an updated first

- year expense forecast, and resumes from individuals holding key management positions. National also submitted Operations Specification from the FAA authorizing foreign scheduled operations.

We have completed our review of the infor mation and find that the material submitted is inadequate. Specifically, the liability insurance form OST 6410 indicates a n attached schedule

that was omitted in National’s submission to the Department

. The bank statement from Wells Fargo bank appears to be a printout from the Wells Fargo website; the Department requires either third party verification of financial statements or an original bank statement. The resumes

for the two new employees in key management roles do not list the positions that Nation al claims

the individuals now hold.

Regarding the FAA Operations Specifications , while National did provide evidence that it had been certificated by the FAA to engage in foreign scheduled passenger operations, the air carrier did not provide the list of specific airports authorized by the FAA where it may conduct scheduled operations. Th at list of authorized airports in National’s Operation Specifications does not include any locations in Afghanistan. As Nationa l is seeking to operate solely in a

marke t that is not authorized by its operations specifications and provided incomplete information regarding its fitness, we are not a ble to make effective National’s certificate for foreign scheduled air transportation of persons, property, and mail

.

S ince the information received from National fails to demonstrate its continuing fitness to operate the proposed services covered by its certificate, we have decided to stay the effectiveness

of th at certificate for a period of 30 days or until the air carrier can provide the complete

information required to make its certificate effective

, whichever is sooner. We note that should

N ational provide the required information to make its authority effective, t he authority to operate under this certificate will not become effective until six (business) days after the Department has

received such information , provided however, that the Department may stay t he effectiveness of this authority at any time prior to th is date

.

During this period of stay, we will work closely with National to re solve our outstanding fitness

issues. However, if a determination that National continues to be fit cannot be accomplished within 30 days, we intend to issue another order staying National’s foreign scheduled passenger authority

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ACCORDINGLY

, acting under authority assigned by the Department in its Regulations, 14 CFR 385.12(a) (5) (ii):

1. We stay the effectiveness of the certificate of public convenience and necessity to engage in foreign scheduled air transportation of persons, property, and mail issued to National Air Cargo Group, Inc. d/b/a National Airlines by Order 2013

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the date of this order or until we can reach a determination tha t National Air Cargo Group,

Inc. d/b/a National Airlines has provided all the documentation to make its authority effective to conduct the operations authorized by its certificate , whichever is earlier

. We note that

should the air carrier provide the required information to make its authority effective, t he authority to operate under this certificate will not become effective until six (business) days after the Department has received such informati on , provided however, that the Department

may stay t he effectiveness of this authority at any time prior to th is date

.

2. We will serve a cop y of this order on the persons listed in Attachment A.

Persons entitled to petition the Department for review of this order, under 14 CFR 385.30 may file their petitions within 10 days of the service date of this order.

T his order is effective immediately, and the filing of a petition for review shall not alter its

effectiveness.

By:

TODD M. HOMAN

Director Office of Aviation Analysis

An electronic version of this document is available on the World Wide Web at http://www.regulations.govAttachment A

SERVICE LIST FOR NATIONAL AIR CARGO INC d/b/a NATIONAL AIRLINES

MARK W ATWOOD

ELIZABETH J WADSWORTH

COZEN O’ CONNER

1627 EYE STREET NW SUITE 1100

WASHINGTON DC 20006 PAUL GRANDAHL

DALE MITCHELL

DARYL BENTLEY

EAST MICHIGAN FSDO

FEDERAL AVIATION ADMINISTRATION

MARK MAZOR

CERTIFICATION SECTION MANAGER

FAA AFS

- 900 45005 AVIATION DRIVE, SUITE 131

DULLES VA 20166 WILLIAM CHADWICK

OFFICE OF AIRLINE INFORMATION

DOT/RSPA/BTS E

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1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

PETER LYNCH AGC

- 300

ASST CHIEF COUNSEL FOR ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 2059 1

LUTHER HIPPS

CHARLEY BEERS

BILL ROYAL

ORLANDO FSDO

FEDERAL AVIATION ADMINISTRATION OFFICE OF AIRLINE INFORMATION

DOT/RSPA/BTS E

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1200 NEW JERSEY AVE SE

WASHINGTON DC 20590