Order 2010

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- 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

- 20 10

- 0156

ORDER CONFIRMING ORAL ACTION AND
ISSUING EFFECTIVE COMMUTER AUTHORIZATION

Summary

By t his 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 20 10

- 11

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

scheduled passenger service as a commuter air carrier. Un der the terms of that order , the authority would become effec tive 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 covera ge 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.

O n November 22

, 2010 , Island updated its application with information regarding third

- party
verificatio n of funds availa ble 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 Op erat ion2

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 effect ive prior to the expiration of the six (6) day waiting period.

Our review of these documents was satisfactory. Under these c ircumstances, we concluded that there was no reason not to grant the company the waiver it requested a nd make its authority

effect ive 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 A uthorization issued to Island A irlines , 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 o f 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

# C

ommuter 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 o

perations 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

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- 2 Todd M. Homan

On Dece mber 2

, 2010 Director Effective November 22 , 2010 Office of Aviation Analysis

### Attachment

As reissued by Order 2010

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- 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 int erest.

(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 "Cit izen 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 conduc ted 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 redu ce 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 sched uled 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 fore ign 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 b een 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

BURLIN GTON 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