Order 2010-12-2

Served: December 2, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 2

nd day of December, 2010

Fitness Determination of

ISLAND AIRLINES, LLC

as a commuter air carrier under Section 49 U.S.C.§ 41738

 Docket DOT-OST-2010-0156

 

ORDER CONFIRMING ORAL ACTION AND

ISSUING EFFECTIVE COMMUTER AUTHORIZATION

Summary

By this order, we confirm our oral action of November 22, 2010, making the authority of Island 

Airlines, LLC (“Island”) effective on that date. We reissue Island’s commuter air carrier 

authorization to reflect its effective date. 

Background

By Order 2010-11-24 issued November 22, 2010, the Department found Island fit to conduct 

scheduled passenger service as a commuter air carrier. Under the terms of that order, the 

authority would become effective on the sixth business day after we had received (1) a copy of 

the air carrier’s Air Carrier Certificate and Operation Specifications from the Federal Aviation 

Administration (“FAA”) authorizing it to engage in scheduled passenger service, (2) evidence of 

liability insurance coverage that meets the requirements of section 205.5(b) for all its aircraft, (3) 

a statement of any changes it had undergone in areas affecting its fitness subsequent to the 

issuance date of the Show Cause Order in this case (Order 2010-11-4), and (4) updated financial 

information and evidence that the air carrier still had available to it funds sufficient to meet the 

Department’s financial fitness criteria.

On November 22, 2010, Island updated its application with information regarding third-party 

verification of funds available to the air carrier that supported its ability to meet our financial 

fitness criteria, a copy of OST Form 6410 evidencing liability insurance meeting the 

requirements of 14 CFR 205.5(b), a copy of Island’s Air Carrier Certificate and Operation 

UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION
2

Specifications from the air carrier, and financial and other updated fitness information.

1 

Additionally, the air carrier stated that it had undergone no substantial changes in ownership, key 

personnel, compliance history, operating plans or financial posture since the issuance of the 

Show Cause Order, with the exception of removing one aircraft from its fleet, thereby bringing 

the total fleet count to 5 Cessna 402s and 1 Cessna Caravan. Island also requested that we make 

its authority effective prior to the expiration of the six (6) day waiting period.

Our review of these documents was satisfactory. Under these circumstances, we concluded that 

there was no reason not to grant the company the waiver it requested and make its authority 

effective prior to the expiration of the six-day waiting period. Therefore, on November 22, 2010, 

we orally advised Island that we were making its commuter authority effective on that date. 

By this order, we confirm our oral action and reissue to Island its commuter air carrier 

authorization to reflect its effective date. 

ACCORDINGLY: Acting under authority assigned by the Department in its regulations, 

14 CFR 385.12:

1. We confirm our oral action of November 22, 2010, making the commuter authority 

issued to Island Airlines, LLC effective on that date.

2. We reissue the Commuter Air Carrier Authorization issued to Island Airlines, LLC by 

Order 2010-11-24, in the attached form to reflect its effective date.

3 We direct Island Airlines, LLC to submit to the Air Carrier Fitness Division a first-year 

progress report within 45 days following the end of its first year of commuter operations.

2

4. 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 the Department’s 

Regulations, 14 CFR 385.30, may file their petitions within 10 days of the service date of this 

order.

 

1 The air carrier stated that it has $36,000 in pre-operating expenses remaining to be paid, but provided updated 

bank statements dated November 22, 2010, indicating the air carrier had access to $616,775. Island also provided 

third-party verification of an additional $1.2 million in available funds.

2 The report shall include a description of the air carrier’s current operations (number and type of aircraft, 

principal markets served, total number of full-time and part-time employees), a summary of how these operations 

have changed during the year, a discussion of any changes it anticipates from its current operations during its second 

year, current financial statements (including a balance sheet at the end of its first year of flight operations and a 12-

month income statement ending that same date), 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.
3

The action confirmed in this order was effective when taken and the filing of a petition for 

review shall not alter its effectiveness.

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
 

Commuter Air Carrier Authorization 

(as reissued)

This Certifies That

ISLAND AIRLINES, LLC

is authorized, subject to the provisions of Subtitle VII of Title 49 of the United 

States Code, the orders, rules, and regulations issued thereunder, and the 

attached Terms, Conditions, and Limitations, to engage in scheduled passenger 

air transportation operations as a commuter air carrier.

This authorization is not transferable without the approval of the Department of 

Transportation.

 

 

By Direction of the Secretary

Issued by Order 2010-12-2 Todd M. Homan

On December 2, 2010 Director 

Effective November 22, 2010 Office of Aviation Analysis
 

Attachment

As reissued by Order 2010-12-2

Terms, Conditions, and Limitations

ISLAND AIRLINES, LLC

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 holder shall at all times conduct its operations in accordance with the requirements of 14 

CFR Part 298 and any other regulations prescribed by the Department of Transportation 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.

(2) 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.

(3) The holder's authority under this certificate is effective only to the extent that such operations 

are also authorized by the Federal Aviation Administration (FAA), and comply with all U.S. 

Government requirements concerning security, including, but not limited to 49 CFR Part 1544.

(4) The holder shall at all times remain a "Citizen of the United States" as required by 49 U.S.C. 

40102(a)(15).

(5) The holder shall maintain in effect liability insurance 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.

(6) The holder’s authority 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 such operations.

(7) 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.

(8) 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 

 

This authority is being reissued to reflect its effective date.

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 determined that security is adequate to allow such airport(s) to be served.
2

Competition Act of 1979, as amended or as modified by any future legislation addressing 

access restrictions to or from Love Field.

(9) Should the holder propose any substantial change in its ownership, management, or operations 

(as defined in 14 CFR 204.2(l)), it must first comply with the requirements of 14 CFR 204.5.

(10) 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 the 

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 authority shall be revoked for dormancy.
 

Attachment A

SERVICE LIST FOR 

ISLAND AIRLINES, LLC 

MR GARY B GAROFALO

MR VICTOR H SMITH

GAROFALO GOERLICH 

HAINBACH PC

1200 NEW HAMPSHIRE AVE 

NW

SUITE 800

WASHINGTON DC 20036

MR JOE TAYLOR

CERTIFICATION TEAM LEAD

FEDERAL AVIATION 

ADMINISTRATION

ONE CRANBERRY HILL

FOURTH FLOOR SUITE 402

LEXINGTON MA 02421

MR WILLIAM WEBER

CERTIFICATION SECTION MANAGER

FAA AFS-900

45005 AVIATION DRIVE 

SUITE 131

DULLES VA 20166

MR W SCOTT LAFORGE 

CEO 

ISLAND AIRLINES LLC

480 BARNSTABLE ROAD

HANGAR 1

HYANNIS MA 02601

MR CLAY MORITZ RTS-42

OFFICE OF AIRLINE 

INFORMATION

DOT/RSPA/BTS E-36

1200 NEW JERSEY AVENUE SE

WASHINGTON DC 20590

REGIONAL COUNSEL

FEDERAL AVIATION 

ADMINISTRATION

NEW ENGLAND REGION

12 NEW ENGLAND EXECUTIVE 

PARK

BURLINGTON MA 01803

MR PETER LYNCH 

AGC-300

FAA ASST CHIEF COUNSEL 

FOR ENFORCEMENT

800 INDEPENDENCE AVE 

SW

WASHINGTON DC 20591

MR BERNARD STANKUS 

OFFICE OF AIRLINE 

INFORMATION

DOT/RSPA/BTS E-36

1200 NEW JERSEY AVENUE SE

WASHINGTON DC 20590