Order 2014-3-20

Served: March 31, 2014

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 31st day of March, 2014

Application of

 NATIONAL AIR CARGO GROUP, INC.

 d/b/a NATIONAL AIRLINES

for an amended certificate of public convenience and 

necessity under 49 U.S.C. 41102 to engage in foreign 

scheduled air transportation of persons, property, and 

mail

Docket DOT-OST-2012-0204 

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 Emirates and 

beyond to a point or points in Afghanistan.

Background

By Order 2013-7-12, issued July 12, 2013, the Department found National fit, willing, and able 

to conduct foreign scheduled passenger air transportation and issued to it an 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 Emirates, 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 such 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, among other things, 

(1) evidence that National has been certificated by the FAA to engage in foreign scheduled 

passenger operations, (2) evidence of liability insurance coverage that meets the requirements of 
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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 operations.

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 information and find that the material submitted is 

inadequate. Specifically, the liability insurance form OST 6410 indicates an 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 National 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. That list of authorized airports in National’s Operation Specifications 

does not include any locations in Afghanistan. As National is seeking to operate solely in a 

market that is not authorized by its operations specifications and provided incomplete 

information regarding its fitness, we are not able to make effective National’s certificate for 

foreign scheduled air transportation of persons, property, and mail.

Since 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 that 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 

National provide the required information to make its authority effective, the 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 the effectiveness of 

this authority at any time prior to this date.

During this period of stay, we will work closely with National to resolve 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 2013-7-12, for a period of 30 days from 

the date of this order or until we can reach a determination that 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, the 

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 the effectiveness of this authority at any time prior to this date.

2. We will serve a copy 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.

This 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.gov
Attachment 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-36

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 20591

LUTHER HIPPS

CHARLEY BEERS

BILL ROYAL

ORLANDO FSDO

FEDERAL AVIATION ADMINISTRATION

OFFICE OF AIRLINE INFORMATION

DOT/RSPA/BTS E-36

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590