O rder 2014

- 2

- 8

Served: February 11, 2014

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 N UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 11 th day of February

, 2014

Notice of

AJET HOLDINGS

, LLC

of intent to resume operations under 14 CFR 204. 7 Docket DOT

- OST

- 20 14

- 000 6

In the matter of the revocation of the certificate authority issued to

RYAN INTERNATIONAL AIRLINES , INC.

pursuant to the provisions of 14 CFR 204.7

ORDER DENYING WA IV ER FROM DORMANCY,

DISMISSING NOTICE TO RESUME OPERATIONS

, AND REVOKING C ERTIFICATE AUTHORITY

Summary

By this order, we are denying the waiver from dormancy and dismissing the notice to resume operations filed by Ajet Holdings

, LLC (“ Ajet ”), on behalf of Ryan International Airlines , Inc. (“Ryan Air”), in Docket DOT

- OST

- 20 14

- 0006 ; and revoking the certificate authority issued to Ryan Air for reason of dormancy.

Background

Ryan Air has held interstate all

- cargo authority since 1980, worldwide charter authority since 1984, and interstate sc heduled authority since 1992. 1 Ryan Air operated under these certificates until January 11 , 2013, when it ceased operations after fil ing for Chapter 11 bankruptcy.

Section 204.7 of the Department’s Economic Regulations (14 CFR § 204.7) provides that, if an air carrier ceases air transportation operations for which it was found fit, it may neither resume air transportation operations nor advertise such services until its fitness to do so has been re

determined by the Department. Section 204.7 further prov ides that, if an air carrier does not

1 Ryan Air’s foreign charter authority was last reissued by Order 9 2

- 6

- 18 , served June 11, 1992 ; the air carrier’s

interstate charter and interstate all

- cargo authority was last reissued by Order 92

- 5

- 26, served May 21, 1992; and its interstate scheduled authority was last reissued by Order 98

- 7

- 6, served July 8, 1998

.2

have its fitness redetermined and resume operations within one year of the date of its cessation, its certificate authority will be revoked for dormancy.

By letter dated January 16, 2013, we advised Ryan Air that, pur suant to section 204.7, its authority was suspended and that it could not resume air transportation operations until the Department had redetermined its fitness to do so.

Subsequent to its bankruptcy filing, Ryan Air was purchased by Ajet in February 20 13. On October 21, 2013, one of Ajet’s primary creditors initiated an involuntary Chapter 7 bankruptcy proceeding against Ajet. When Ajet’s principles failed to respond or object to the involuntary bankruptcy pr o c e eding a trustee was appointed

.

By lette r dated December 20, 2013, we informed Ajet’s trustee of the section 204.7 dormancy requirements. Moreover, we noted that unless Ryan Air file d a notice requesting to resume operations and a request for a waiver from the provisions of dormancy by January 16, 2014, that its authority would be revoked pursuant to section 204.7. W e also informed the company that it is not our practice to grant extensions from section 204.7 unless the air carrier demonstrate d

“ good cause ” for such action . Specifically, we st ated that Ryan Air would need to provide up

- to

date information regarding its ownership, key management and technical personnel, and citizenship, along with current financial documents, operating plans and compliance disposition reports, which evidence tha t Ryan still meets the Department’s fitness criteria, and that it has completed nearly all the steps to recommence operations ( i.e. has the necessary personnel, financial resources, aircraft, and FAA operating authority ).

On January 15, 2014, representati ves of Ajet’s Trustee filed a Notice of Inten t to Resume Operations and a request for a waiver from the dormancy provisions of section 204.7. The

Trustee contends that an extension of the dormancy provisions is necessary in order to secure bankruptcy cour t approval to conclude a sale of Ryan Air. No information was provided concerning the Ryan Air’s current personnel, ownership, or finances or that would indicate that

the air carrier has completed nearly all the steps necessary to recommence operations

.

Decision

We have repeated ly stated that we will not permit waivers for the dormancy provision unless it is clear that the air carrier remains fit, willing, and able and that our action would permit the

imminent resumption of its operations. Ryan Air ha s not provided any information which would

allow us to determine the fitness of the air carrier

. Moreover, any purchaser of the stock or

assets of Ryan Air would not be in a position to recommence operations in the immediate future since the company, unde r its new ownership, must be found fit under the provisions of 14 CFR

204.7 in order to do so , a process which is no different from that involving a new applicant.

In light of these circumstances, we have decided to revoke for reasons of dormancy the

cer tificate authority held by Ryan Air. This action is being taken without prejudice to any future applications that Ryan Air or its new owners may wish to file for new air carrier authority.3

ACCORDINGLY , Pursuant to authority assigned by the Depart ment in i ts regulations,

14 CFR 385.12:

1. We d eny the application for a waiver from section 204.7 (14 CFR 204.7) and dismiss the Notice of Intent to Resume Operations filed by Ajet Holdings, LLC, on behalf of Ryan

International Airlines , Inc.

, in Docket DOT

- OST

- 2 0 14

- 000 6

.

2. We revoke the certificate of public convenience and necessity issued to Ryan International

Airlines , Inc. , by Order 98

- 7

- 6 authorizing it to engage in interstate scheduled air transportation of property and mail. 2

3

. We revoke the certifica te s of public convenience and necessity issued to Ryan Air International, Inc. , by Order 92

- 5

- 26 authorizing it to engage in interstate charter and all

- cargo air transportation.

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 this 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.regula tions.gov

2 By this order, we revoke Ryan Air’s interstate certificates. Revocation of Ryan Air’s foreign certificate authority is subject to Presidential review under 49 U.S.C. § 41307 and will be handled in a separate order.ATTACHMENT A

SERVICE LIST FOR

RYAN INTERNATIONAL AIRLINES , INC.

PETER LYNCH AGC

- 300

ASST CHIEF COUNSEL FOR

ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591 MARIANNE SEGUIN

JENNIFER RODES

OFFICE OF AIRL INE INFORMATION

DOT/R IT A/BTS RTS

- 42

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

LENARD E SCHWARTZER

JASON A IMES

SCHWARTZER & MCPHERSON LAW FIRM

COUNSEL FOR YVETTE WEINSTEIN

TRUSTEE FOR AJET HOLDINGS LLC

2850 SOUTH JONES BLVD SUITE 1

LAS VEGAS NEVADA 89 146 MARK MAZOR

MANAGER

CERTIFICATION & EVALUATION PROGRAM

OFFICE

FAA AFS

- 900

45005 AVIATION DRIVE

DULLES VA 20166

GERARDO MARTINEZ

FEDERAL AVIATION ADMINISTRATION