Order 2011-11-11

Served: November 9, 2011

Issued by the Department of Transportation

on the 9th day of November, 2011

Fitness Determination of

 ORANGE AIR, LLC

for certificates of public convenience and necessity 

under 49 U.S.C. § 41102 to engage in interstate and 

foreign charter air transportation of persons, property,

and mail

Dockets DOT-OST-2011-0073

and

 DOT-OST-2011-0074

ORDER TO SHOW CAUSE

PROPOSING ISSUANCE OF CERTIFICATES

Summary

By this order, we tentatively conclude that Orange Air, LLC (“Orange Air”), is a citizen of the United 

States and is fit, willing, and able to provide interstate and foreign charter air transportation of persons, 

property, and mail, using one large aircraft, and should be issued certificates of public convenience and 

necessity authorizing such operations, subject to conditions.

Background

Section 41102 of Title 49 of the United States Code (the “Transportation Code”) directs us to determine 

that applicants for certificate authority to provide interstate and foreign charter air transportation of 

persons, property and mail are “fit, willing, and able” to perform such transportation and to ensure that 

all operations relating to this authority conform to the provisions of the Transportation Code and the 

regulations and requirements of the Department. In making fitness findings, the Department uses a 

three-part test that reconciles the Airline Deregulation Act’s liberal entry policy with Congress’ concern 

for operational safety and consumer protection. The three areas of inquiry that must be addressed in 

order to determine a company’s fitness are whether the applicant (1) will have the managerial skills and 

technical ability to conduct the proposed operations; (2) will have access to resources sufficient to 

commence operations without posing an undue risk to consumers or their funds; and (3) will comply 

with the Transportation Code and regulations imposed by Federal and State agencies. We must also find 

that the applicant is a U.S. citizen.

On April 1, 2011, Orange Air filed applications in Dockets DOT-OST-2011-0073 and DOT-OST-2011-

0074, requesting certificates issued under 49 U.S.C. § 41102 authorizing it to engage in interstate and 

foreign charter air transportation of persons, property, and mail. Orange Air accompanied its 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C. UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION
2

applications with information required by section 204.3 of our regulations for an examination of its 

fitness to hold such authority.1 Orange Air filed additional information supplementing its applications 

on June 23 and August 18, 2011.

We have received no answers to the applications and no special issues regarding the applicant have 

come to our attention. Under these circumstances, we propose to decide the issue of Orange Air’s 

fitness on the basis of the written record. As discussed below, we tentatively conclude that Orange Air 

is a U.S. citizen and is fit, willing, and able to operate its proposed air service, subject to conditions. 

However, we will give interested persons an opportunity to show cause why we should not adopt as final 

these tentative findings and conclusions.

FITNESS

The Applicant

Orange Air, a non-operating corporation organized under the laws of the State of Delaware in 2011, is 

wholly owned by Orange Air Holdings, LLC (“Holdings”), which in turn is owned by RWF 

Capital, LLC (“RWF”) (58 percent interest), Mr. Frederick W. (“Chip”) Credno, III (40 percent 

interest),2 and JO Holdings, LLC (2 percent interest). The applicant intends to commence operations 

using a single leased MD-83 aircraft, offering this aircraft for government contract flights and for public 

and private charters.

Managerial Competence

Holdings is controlled by a Board of Managers comprised entirely of U.S. citizens. The Board is 

chaired by Mr. Jeffrey Oshinsky, and includes as its members Messrs. Hugo Reiter, Jorge Wolf, and 

Alberto Franco. 

Mr. Jeff Oshinsky, a member of the Florida and New York Bar Association, has over 21 years of 

experience in business, commercial, and securities law having practiced most recently at his own firm, 

Jeffrey M. Oshinsky, P.A. (2011-Present). Before this, Mr. Oshinsky practiced law at Stearns Weaver 

Miller Weissler Alhadoff & Sitterson, P.A. (2005-2011), White & Case LLP (2001-2005), Revelex.com 

(2000-2001), Greenberg Traurig, P.A. (1994-2000), and Proskauer Rose Goetz & Mendelsohn, P.C. 

(1990-1994). He earned a Juris Doctorate from Brooklyn Law School in 1990, and a Bachelor of 

Science degree in Business Administration in 1987.

Mr. Hugo Reiter possesses over 20 years of commercial aviation experience having served as President 

and Founder of AirTrust Capital Corporation, an aircraft leasing corporation (1999-Present), and 

Aeroholdings Group, Inc., and Interavia Holding Limited, Inc., both of which are aviation consultancy 

firms (1991-1999). Additionally, he co-founded and served as Executive Vice President of American 

Software Technology Corp., which developed software for the insurance industry (1982-1990). He 

 

1 Contemporaneously with its applications of April 1, 2011, Orange Air filed a motion for confidential treatment under 

14 CFR § 302.12 to withhold from public disclosure certain information filed in support of its application. Specifically, 

Orange Air requested confidential treatment be afforded to the Federal Aviation Administration certificate numbers of its key 

personnel and to sensitive financial data relating to the company. By this order, we grant the applicant’s request for 

confidential treatment. See the CONFIDENTIAL TREATMENT section of this order for a more detailed discussion.

2 RWF loaned Mr. Chip Credno the capital necessary for him to acquire 40 percent of Holdings.
3

began his career as a real estate developer and designed and constructed commercial real estate projects 

(1980-1988). Additionally, he earned a Bachelor of Science degree in Architecture in 1980. 

Mr. Jorge Wolf possesses eight years of aviation experience having served as Executive Vice President 

and Chief Financial Officer for AirTrust Capital Corp. (2002-Present). Before that, he co-founded and 

served as Chief Operating Officer and Chief Financial Officer for Breakstone Homes, Inc., a luxury 

home builder in southern Florida (1998-2002). After earning a Juris Doctorate from the University of 

Miami in 1991, he started practicing corporate and real estate law and rose to become Managing Partner 

at Rosenthal, Rasco, Stock, Denberg & Wolf, P.A. (1992-2002). Additionally, he earned a Bachelor of 

Arts degree from the University of Michigan in 1987. 

Mr. Alberto Franco has over 26 years of experience in business, securities trading, and portfolio 

management. He currently serves as Vice President of Corporate Development at AirTrust Capital

Corp. (2009-Present). Prior to this, he served as a Partner at Quantek Asset Management, LLC (2006-

2009), and Head Portfolio Manager at Bulltick Financial Services, LLC (2004-2008). Additionally, he 

founded and served as Portfolio Manager at Franco Asset Management, LP (2002-2004). Mr. Franco 

held the positions of Principal Owner and Head Portfolio Manager at HWF Partners (1998-2002), Senior 

Managing Director at Bankers Trust (1995-1998), Head of Emerging Markets Trading at Smith Barney 

(1994-1995), Head of Trading at Vescorp Partners (1993-1994), Manager of the Emerging Markets 

Trading Group at Bear Stearns, and began his career in securities as a Trader at Salomon Brothers 

(1986-1991). From 1982 until 1986, he worked as a Coffee Exporter for his family’s business in 

Lima, Peru. Mr. Franco earned a Bachelor of Arts in Administrative Science from Yale University in 

1982. 

The following table identifies Orange Air’s officers and other key management and technical personnel, 

each of whom is a U.S. citizen. 

Name Position Citizenship

Mr. Frederick W. Credno, Jr. President and Chief Executive Officer U.S.

Mr. Karl Rothman Chief Financial Officer U.S. 

Mr. Frederick W. (“Chip”) 

Credno, III

Vice President and Director of Safety U.S.

Mr. Paul W.J. Hook Director of Operations U.S. and U.K.

Mr. Kurt Lugar Director of Quality Assurance and 

Chief Inspector

U.S.

Captain Joseph Schoofs Chief Pilot U.S.

Mr. Brooke Mayger Director of Maintenance U.S.

Mr. Roger Carbon Director of In-Flight U.S.

Ms. Kimberly Hunter Director of Administration and 

Human Resources

U.S.

Mr. Frederick W. Credno, Jr., an Airline Transport Pilot with over 18,000 total flight hours logged, has 

served as President and Chief Executive Officer since co-founding Orange Air. Prior to that, he served 

as President and Chief Executive Officer for: Capital Airways, LLC (2009-2011); Capital Jet, LLC 

(2009-2011); Capital Aviation, Inc. (1997-2011); SkyLink Air & Logistic Support (USA) (1998-2005);

United Jet International, Inc. (1992-1997); and Jet Management Group, Inc. (1985-1989). Additionally,
4

he served as an Aviation Consultant for US Jet (1991-1992). He gained experience in aviation 

operations and management, having served as Captain and First Officer for Eastern Airlines, Inc. (1989-

1991); Director of Operations for Syracuse Tank and Manufacturing Company, Inc. (1975-1985);

Director of Operations/Chief Pilot for D.W. Winkelman Co., Inc. (1973-1975); Captain for SAIR 

Aviation (1971-1973), and Captain and First Officer for Flight Service, Inc. (1969-1971). He also 

served as a Flight Instructor and Instrument Flight Instructor at Mid-State Flight School at Middle 

Tennessee State University (1968-1969). He received his education from Middle Tennessee State 

University and University College - Syracuse University.

Mr. Karl Rothman, a Certified Public Accountant, currently serves as Orange Air’s Chief Financial 

Officer in the capacity of an independent contractor (2011-Present). In addition to his duties at Orange 

Air, Mr. Rothman also currently serves as a Controller, Project Manager, and Treasurer for a variety of 

clients (2004-Present). Prior to that, he served as a Manager at Kroll, Inc. (2007-2008); Navigant 

Consulting, Inc. (2004-2007); Gibbons and Gibbons, PC (2001-2004); and Akin, Gump, Strauss, Hauer, 

and Feld, LLP (2000-2001). Additionally, he served as Controller at Elite Funding Corporation (1998-

2000), and was employed by the Marketing Ventures Group (1996-1998), and Georgetown University 

Medical Center (1990-1996). He holds a Bachelor’s degree in Arts from the University of Virginia and 

is a professional member of the American Institute of Certified Public Accountants and the Virginia 

Society of Certified Public Accountants. 

Mr. Frederick W. (“Chip”) Credno, III has served as Orange Air’s Vice President and Director of Safety 

since the company was formed. Before that, he served as Vice President and Senior Program Manager 

at Capital Aviation, Inc., a Virginia-based air charter and aviation services company (1997-2011). He 

graduated with a Bachelor’s degree in Business Administration from LeMoyne College in 1993. He 

also earned Master Certificates in Commercial Contract Management and Government Contract 

Management in 2006 from Villanova University. 

Mr. Paul W. J. Hook, an Airline Transport Pilot with over 9,000 total flight hours logged, assumed the 

position of Orange Air’s Director of Operations in February 2011. Prior to that, he served in the same 

capacity for Capital Airways, LLC (2008-February 2011), Jet Domain, Inc. (2007-2008), Enterprise 

Aviation, Inc. (2005-2007), and Century Aviation/LynxxJet, Inc. (2001-2005). Additionally, he served 

as Chief Pilot/Director of Flight Operations for Trans-Gulf Corporation (2000-2001); Basic Capital 

Management, Inc. (1999-2000); Marbyia Investments, Ltd (1992-1999), a Saudi Arabia-based Part 125 

operator; and American Air Ambulance/Allied Aviation (1987-1992). He also served as Vice President, 

Director of Operations, and Chief Pilot for Aero Med International, Inc. (1985-1987). Mr. Hook gained 

extensive aviation experience, having served as Chief Pilot for Care Flight Unlimited (1983-1985); 

Training Captain for Dallah Avco (1979-1983); Chief Pilot for Northrop Wilcox, Inc. (1978-1979);

Pilot/Manager for E. Brooksbank, Ltd. (1973-1977); and Air Traffic Controller for Thruxton Airport in 

Andover, U.K. (1970-1973). He also served as a Research Technician at the U.K. Atomic Energy 

Authority (1967-1970). He was educated at Oxford University (1964-1968). 

Mr. Kurt Lugar, an Airframe and Powerplant Mechanic, assumed his current position as Orange Air’s 

Chief Inspector/Director of Quality Assurance in 2011. Before joining the applicant, Mr. Lugar served 

as Chief Inspector/Director of Maintenance at Capital Airways, LLC (2008-2011). Previously, he 

served as a self-employed Technical Representative/Contractor (2006-2008). He developed a broad 

base of maintenance skills, having served as a Manager of Maintenance Control and Planning and 
5

Director of Quality Assurance at Boston-Maine Airways d/b/a PanAm Clipper (2005-2006), a Line 

Maintenance Manager at Southeast Airlines (2003-2004), and a Regional Maintenance Manager at Spirit 

Airlines (1991-2002). In addition, Mr. Lugar served as an Airframe and Powerplant Line Station 

Mechanic for Express One, Carnival, Kiwi, Allegro, and JetTrain, (1994-1999), as well as for Jettall 

Holdings Corp. (1990-1991), and Westates Airlines (1989-1991). He also served as a Mechanic Helper 

for American Air Freight (1987-1988). Prior to that, Mr. Lugar served as an Enlisted Club Staff for the 

Naval Air Station in Dallas, Texas (1985-1986), and a Warehouseman for Arrendando and Martinez 

Fast Freight (1983-1985). 

Captain Joseph Schoofs, an Airline Transport Pilot with nearly 13,000 total flight hours logged, assumed 

his current position as Orange Air’s Chief Pilot in July 2011. He has over 25 years of aviation 

experience having piloted for several major air carriers. Before joining Orange Air, he served as 

Director of Training and Flight Standards, as well as Pilot, Instructor, and Check Airman for Falcon Air 

Express (“Falcon”) (2009-2011). Captain Schoofs developed skills in multiple areas of flight operations 

and training, having served as Director of Operations, Check Airman, Captain, and Pilot Manager for 

Nigerian-based Arik Air (2008); Contract Ground and Simulator Instructor for Boeing-affiliate, Alteon

(2006-2008); Owner, Captain, Check Airman, Instructor, and Examiner for Global Air Consulting, Inc. 

(2006-Present); Director of Operations and Chief Pilot for Paramount Jet (2006-2008); Pilot, Instructor, 

and Check Airman for Falcon (2005-2008); Contract Ground and Simulator Instructor and Examiner for 

Aero Services, Inc. (2004-2007); Director of Training, Ground and Simulator Instructor, and Line Pilot

for Southeast Airlines (2002-2004); Simulator and Ground Instructor for Pan Am International Flight 

Academy (2001-2002); Line Captain for US Airways (1999-2001); Executive Vice President for 

Universal Pilot Application Service (1998-1999); Director of Training for Ryan International Airlines 

(1997-1998); Pilot, Instructor, and Manager of Training for Comair Airlines (1996-1997); and General 

Manager of TranStar International Airline (1995-1996). He also served as a Graduate Assistant for the 

Center for Leadership at the University of Tampa (1993-1995). Before that, he was employed as a Line 

Pilot for WestAir Airlines (1988-1993), a Pilot for Scenic Air Tours (1987-1988), and Owner and 

Builder for Southeast Home Builders (1983-1987). Captain Schoofs started his career as an Independent 

Flight Instructor in Atlanta, Georgia (1979-1983), and earned a Bachelor’s degree in Business 

Management from Liberty University in 1993. 

 

Mr. Brooke Mayger, an Airframe and Powerplant Mechanic, has served as Orange Air’s Director of 

Maintenance since March 2011. Prior to that, he served as Vice President of Technical Operations for 

AirBorne Asset Management (2006-2011), Spirit Airlines (1999-2006), Laker Airways (1998-1999), 

and SunJet International Airlines (1993-1998). In addition, he served as Chief Flight Engineer/Director 

of Quality Control for Key Airlines (1985-1993), and as an Aircraft Mechanic for Northeastern Airways 

(1983-1985). He attended Cayuga College and Embry Riddle Aeronautical University. 

Mr. Roger Carbon has served as Orange Air’s Director of In-Flight since March, 2011. Before joining 

the applicant, he served as a Flight Attendant for Capital Airways (2009-2011), Sky King, Inc. (2005-

2009) and Vanguard Airlines (1999-2002). Additionally, he served as a Personal Assistant to Mr. Tom 

Schwartz (2002-2003). Mr. Carbon also held the position of Substitute Teacher and Caregiver in 

Burlington and Topeka, Kansas (1995-2005), and prior to that, owned Blue Moon Deli (1990-1995). He 

earned a Bachelor of Arts in Business Administration from Pittsburg State University in 1990. 
6

Ms. Kimberly Hunter has served as Director of Administration and Human Resources since Orange Air 

was founded. Before that, she served as Director of Administration at Capital Aviation, Inc. (2006-

2011), Human Resources/Payroll Manager at SkyLink USA (2004-2005), and Accounting Manager at 

Andretta Associates (2003-2004). Ms. Hunter was self-employed as an Accounts Receivable/Billing 

Professional (1997-2003), and served as a Payroll/Benefits Specialist at Mutual of New York (1984-

1997). 

In light of these facts, we tentatively conclude that Orange Air has the management skills and technical 

ability to conduct its proposed interstate and foreign charter air transportation operations.

3

Operating Plan and Financial Position

If granted the certificate authority it seeks, Orange Air intends to begin passenger charter operations

using one leased MD-83 series aircraft configured for 169 passengers. The applicant intends to operate 

these flights under Aircraft, Crew, Maintenance, and Insurance (“ACMI”) contracts, with charterers 

contractually responsible for certain operating costs, such as fuel, associated with the air transportation 

provided.

In evaluating a new entrant applicant’s financial fitness, the Department generally asks that the applicant 

have available to it resources sufficient to cover all pre-operating costs and any negative working capital 

balance, plus a working capital reserve equal to the operating costs that would be incurred in three 

months of normal operations.4

Orange Air provided forecasts of its pre-operating costs, as well as projected first-year revenues and 

expenses associated with its proposed operations. Based on these forecasts, the applicant’s 

pre-operating expenses are expected to total approximately $1.44 million plus $100,000 in equipment 

costs, with first-year expenses totaling approximately $5.94 million. We have reviewed the applicant’s 

projected expenses and believe them to be reasonable. Therefore, to meet our fitness test, we estimate 

that Orange Air will need access to approximately $3.02 million.5

In support of its ability to finance its proposed charter operations, the members of RWF, Messrs. Reiter, 

Wolf, and Franco, have each committed to advance up to $1.10 million to Orange Air, or collectively 

$3.30 million. Additionally, Messrs. Reiter, Wolf, and Franco provided third-party verification 

showing that each has over $1.1 million on deposit in their own names. Also, the company’s most 

recent balance sheet indicates that, as of March 31, 2011, it had current assets of $10,575 and current 

liabilities of $1,250, giving the company a positive working capital balance of $9,325.

 

3 Before authorizing an air carrier to conduct air transportation operations, the FAA also evaluates the applicant’s key 

personnel with respect to the minimum qualifications for those positions as prescribed in the Federal Aviation Regulations. 

The FAA’s evaluation of these key personnel provides an added practical and in-person test of the skills and technical ability 

of these individuals. In July 2011, the FAA advised us that Orange Air’s key technical personnel are acceptable to that 

agency in their respective positions. 4 Because projected expenses during the first several months of operations frequently do not include all of the costs that 

will be incurred during a “normal” period of operations, it is our practice to base our three-month standard on one quarter of 

the first year’s operating cost forecast. In calculating available resources, projected revenues may not be used.

5 The $3.02 million noted here is one-quarter of the applicant’s forecast of approximately $5.94 million in first year 

expenses equaling $1.48 million, plus $1.44 million in pre-operating expenses and $100,000 in equipment costs noted 

separately by the applicant.
7

In light of the above, we tentatively conclude that Orange Air will have access to sufficient financial 

resources to enable it to commence its proposed operations without posing an undue risk to consumers 

or their funds.

6

Compliance Disposition 

The applicant states that there are no actions or outstanding judgments against it, its owners, or its key 

personnel nor have there been any charges of unfair, deceptive or anti-competitive business practices, or 

of fraud, felony or antitrust violations brought against any of these parties in the past ten years. The 

applicant also states that there are no pending investigations, enforcement actions, or formal complaints 

filed by the Department against it, its key personnel, or persons having a substantial interest in it with 

respect to compliance with the Transportation Code or the Department’s regulations.

A review of our records and other information available to us has uncovered no information which 

would reflect negatively on Orange Air or any of its key personnel. In addition, according to the Federal 

Aviation Administration (“FAA”), the applicant has conducted its operations satisfactorily and the

agency knows of no reason why the air carrier should not be granted the authority it is seeking. 

Moreover, Orange Air notes that neither it nor any of its key personnel have been involved in an 

accident or incident in the year preceding its application or at any time in the past which remains under 

investigation by the FAA, the National Transportation Safety Board, or the company itself.

In light of these circumstances, we tentatively find that Orange Air has the proper regard for the laws 

and regulations governing its services to ensure that its aircraft and personnel conform to applicable 

safety standards and that acceptable consumer relations practices will be followed. 

CITIZENSHIP

Section 41102 of the Transportation Code requires that certificate authority to engage in air 

transportation be held only by citizens of the United States as defined in 49 U.S.C. § 40102(a)(15). The 

Statute also requires that the president and two-thirds of the Board of Directors and other managing 

officers be U.S. citizens, that at least 75 percent of the outstanding voting interest be owned by U.S. 

citizens, and that the air carrier must be under the actual control of U.S. citizens. 

As noted earlier, Orange Air is organized under the laws of the State of Delaware and is wholly owned 

by Holdings, which, in turn, is owned by RWF, Mr. Fred W. Credno, III, and JO Holdings, LLC, all 

U.S. citizens. RWF is a Delaware limited liability company wholly owned in equal parts by Messrs. 

Hugo Reiter, Alberto Franco, and Jorge Wolf, all of whom are US citizens. JO Holdings, LLC is a 

Florida limited liability company wholly owned by Mr. Jeffrey Oshinsky, a U.S. citizen. In addition, the 

applicant has submitted an affidavit attesting that it is a citizen of the United States within the meaning 

of the Statute, that all managers and key technical personnel are U.S. citizens, and that it is owned and 

 

6 As is our practice, prior to making any authority awarded to Orange Air effective, we will require the company to 

demonstrate that it continues to have access to the financial resources needed to meet our financial test, including updated 

third-party verification from Messrs. Reiter, Wolf, and Franco showing that each continue to have sufficient capital in their 

names to commit and make available to Orange Air.
8

controlled by U.S. citizens. Finally, there is no other information before us that would lead us to 

conclude that Orange Air is not controlled by U.S. citizens.

In view of the foregoing, we tentatively conclude that Orange Air is a U.S. citizen and that it is fit, 

willing, and able to provide air transportation services as a U.S. certificated air carrier, subject to 

conditions. 

PUBLIC CONVENIENCE AND NECESSITY

No finding of consistency with the public convenience and necessity is required for the award of 

authority for interstate charter air transportation of persons, property, and mail under section 41102, 

although such a finding is required for authority to engage in foreign charter air transportation.

We tentatively find that the foreign charter air transportation proposed by Orange Air is consistent with 

the public convenience and necessity. By Order 78-7-106, which instituted the Former Large Irregular 

Air Service Investigation, the Civil Aeronautics Board found that there was a continuing demand and 

need for additional charter air carriers. These findings remain valid and apply to the authority sought by 

Orange Air. Therefore, if Orange Air meets the fitness requirements of the Transportation Code, it will 

receive certificates authorizing it to engage in interstate and foreign charter air transportation of persons, 

property, and mail under section 41102.7

REQUEST FOR CONFIDENTIAL TREATMENT

On April 1, 2011, Orange Air filed a motion under section 302.12 (“Rule 12”) of the Department’s 

regulations requesting confidential treatment of Exhibit A, which contains the FAA certificate numbers 

of Orange Air’s key personnel, and Exhibit B, which contains two unredacted pages from Orange Air’s 

application that show revenue forecasts for its first full year of operations and its forecast operating 

results, which includes sensitive salary and revenue assumptions. 

In support of its request for confidential treatment, the applicant states that the documents Orange Air 

requests to withhold from public disclosure are (1) commercial or financial; (2) obtained from a person 

outside the government; and (3) privileged or confidential. Additionally, Orange Air claims the release 

of such information would cause material competitive harm to Orange Air by revealing confidential 

information about the applicant’s cost structure and its methods of doing business. The applicant further 

states that the documents that it requests to be withheld from public disclosure are the kinds of 

information that are typically afforded confidential treatment in commercial contexts.

Rule 12 instructs us to evaluate requests for confidential treatment in accordance with the standards of 

disclosure found in the Freedom of Information Act (5 U.S.C. section 552). Information may be 

withheld from disclosure under 5 U.S.C. 552(b)(4) if it is (1) commercial or financial, (2) obtained from 

a person outside of government, and (3) privileged or confidential (Gulf and Western Industries, Inc. v. 

United States, 615 F.2d 527,529 (D.C. Cir 1979)).

 

7 Pursuant to 49 U.S.C. § 41307, issuance of foreign authority to the applicant is subject to Presidential review.
9

The information sought to be withheld from disclosure clearly meets the first two requirements. The 

only question, therefore, is whether the information is privileged or confidential--whether “disclosure of 

the information is likely to have either of the following effects: (1) to impair the government’s ability to 

obtain necessary information in the future; or (2) to cause substantial harm to the competitive position of 

the person from whom the information was obtained.” [National Parks and Conservation Association v. 

Morton, 498 F.2d 765, 770 (D.C. Cir. 1974).] Furthermore, to be privileged or confidential, the 

information must not be of the type that is usually released to the public. [Gulf & Western Industries, 

Inc. v. U.S., supra, 615 F.2d at 530.]

We have decided to grant in its entirety Orange Air’s motion to withhold from public disclosure Exhibit 

A and Exhibit B. With respect to Exhibit A, we have found that the FAA certificate numbers are 

generally linked to social security numbers and the release of such personally identifiable information is 

potentially harmful to an applicant’s key personnel. Concerning Exhibit B, we agree that the release of 

such material would allow Orange Air’s competitors and others to readily calculate the underlying 

economic terms of its operations and Orange Air’s competitors could then use this information to 

undermine its relationship with its clients by offering more attractive terms. Further, the Department 

does not need an applicant’s revenue projections in order to make a fitness determination, therefore we 

see no harm in affording confidential treatment to such data. The information for which Orange Air 

seeks confidential treatment is similar to that for which we have granted confidential treatment in the 

past, and we see no reason not to do so here.

OBJECTIONS

We will give interested persons 14 days following the service date of this order to show cause why the 

tentative findings and conclusions set forth here should not be made final; answers to objections will be 

due within 7 days thereafter. We expect such persons to direct their objections, if any, to the application

and points at issue and to support such objections with detailed economic analyses. If an oral 

evidentiary hearing or discovery procedures are requested, the objector should state in detail why such a 

hearing or discovery is considered necessary, and what material issues of decisional fact the objector 

would expect to establish through a hearing or discovery that cannot be established in written pleadings. 

The objector should consider whether discovery procedures alone would be sufficient to resolve material 

issues of decisional fact. If so, the type of procedure should be specified (See Part 302, Rules 19 and 

20); if not, the reasons why not should be explained. We will not entertain general, vague, or 

unsupported objections. If no substantive objections are filed, we will issue orders that will make final 

our tentative findings and conclusions with respect to Orange Air’s fitness and certificate authority.

CERTIFICATE CONDITIONS AND LIMITATIONS

If Orange Air is found fit and issued the certificates it seeks, its authority will not become effective until 

the air carrier has fulfilled all of the requirements for effectiveness as set forth in the terms and 

conditions attached to its certificates. Among other things, this includes (1) our receipt of evidence of 

Orange Air’s authority from the FAA authorizing such operations; (2) evidence of liability insurance 

coverage that meets the requirements of 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 Orange Air continues to have 

adequate financial resources available to it.
10

We also wish to remind Orange Air of the requirements of 49 U.S.C. § 41110(e). Specifically, that 

section requires that, once an air carrier is found fit initially, it must remain fit in order to hold its 

authority. To be assured that certificated air carriers continue to be fit after effective authority has been 

issued to them, we require that they supply information describing any subsequent substantial changes 

they may undergo in areas affecting fitness. Therefore, if Orange Air is issued effective certificate 

authority and subsequently proposes substantial changes in its ownership, management, or operations, it 

must first comply with the requirements of section 204.5 of our rules.8

Moreover, as discussed in the FITNESS section of this order, our finding of fitness for Orange Air is 

based on the operating plans described in its application, namely, performing passenger charter air 

transportation using one large aircraft.9 Were the applicant to propose to expand its operations to 

include additional large aircraft, our fitness findings, particularly involving the adequacy of Orange 

Air’s management and financial resources, might no longer apply. Therefore, should Orange Air desire 

to operate additional large aircraft, it must first provide the Department with at least 45-days advance 

notice of such plans and provide updated information establishing it fitness for such expansion. The 

compliance of the company with this requirement is essential if we are to carry out our responsibilities 

under section 41110(e).10

Finally, if Orange Air is granted effective authority, it would be required to submit a detailed progress 

report, within 45 days following the end of the first year of certificated flight operations, to the Air 

Carrier Fitness Division. The submission of a first year progress report is conditioned upon all newly 

certificated air carriers and was adopted as policy by the Department to aid in monitoring the fitness of 

new air carriers. The report should include a description of the air carrier’s current operations (number 

and type of aircraft, principle markets served, total number of full-time employees), a summary of how 

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

operations during its second year, current financial statements,11 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.

 

8 The air carrier may contact our Air Carrier Fitness Division to report proposed substantial changes in its operations, 

ownership, or management, and to determine what additional information, if any, will be required under section 204.5. In 

addition, by notice dated July 21, 1998, the Department requested air carriers to provide a 30-day advance notification of any 

proposed change in ownership, restructuring, or recapitalization. If the air carrier fails to file this updated information or if 

the information fails to demonstrate that the air carrier will continue to be fit upon implementation of the substantial change, 

the Department may take such action as is appropriate, including enforcement action or steps to modify, suspend, or revoke 

the air carrier's certificate authority.

9 A “large” aircraft is defined as any aircraft with an original design capacity of more than 60 passenger seats or 18,000 

pounds payload.

10 We also remind Orange Air about the requirements of section 204.7 of our rules. This section provides, among other 

things, that (1) the certificate authority granted to a company shall be revoked if the company does not commence actual 

flight operations under that authority within one year of the date of the Department's determination of its fitness; (2) if the 

company commences operations for which it was found fit and subsequently ceases such operations, it may not resume 

certificated operations unless its fitness has been redetermined; and (3) if the company does not resume operations within one 

year of its cessation, its authority shall be revoked for dormancy.

11 These financial statements should include a balance sheet as of the end of the company’s first full year of actual 

certificated flight operations and a 12-month income statement ending that same date.
11

ACCORDINGLY,

1. We direct all interested persons to show cause why we should not issue orders making final our 

tentative findings and conclusions stated above and award certificates to Orange Air, LLC, authorizing it 

to engage in interstate and foreign charter air transportation of persons, property and mail, using one

large aircraft, subject to the attached specimen Terms, Conditions, and Limitations.

2. We direct any interested persons having objections to the issuance of orders making final any of the 

proposed findings, conclusions, or award of authority set forth here to file them with Department of 

Transportation Dockets, 1200 New Jersey Avenue, SE, Room W12-140, Washington, D.C. 20590, in 

Dockets DOT-OST-2011-0073 and DOT-OST-2011-0074 and serve them upon all persons listed in 

Attachment A no later than 14 days after the service date of this order; answers to objections shall be 

filed no later than 7 business days thereafter. 

3. We direct that should Orange Air, LLC want to operate more than one large aircraft, it must first 

provide the Department with at least 45 days’ notice and demonstrate its fitness for such operations.

4. If timely and properly supported objections are filed, we will accord full consideration to the matters 

or issues raised by the objections before we take further action.12

5. In the event that no objections are filed, we will consider all further procedural steps to be waived 

and we will enter an order making final our tentative findings and conclusions.

6. We grant in its entirety the Motion for Confidential Treatment filed by Orange Air, LLC on April 1, 

2011.

7. We will serve a copy of this order on the persons listed in Attachment A.

8. We will publish a summary of this order in the Federal Register.

By:

SUSAN L. KURLAND

Assistant Secretary

for Aviation and International Affairs

An electronic version of this document is available on the World Wide Web at:

http://www.regulations.gov

 

12 Since we have provided for the filing of objections to this order, we will not entertain petitions for reconsideration.
Attachment

SPECIMEN

Terms, Conditions, and Limitations

ORANGE AIR, LLC

is authorized to engage in interstate charter air transportation of persons, property and mail 

between any point in any State, territory, or possession of the United States or the District of 

Columbia, and any other point in any of those entities.

This authority is subject to the following provisions:

(1) The authority to operate under this certificate will not become effective until six 

(business) days after the Department has received the following documents; provided, however, 

that the Department may stay the effectiveness of this authority at any time prior to that date:

(a) A copy of the holder's Air Carrier Certificate and Operations Specifications 

authorizing such operations from the Federal Aviation Administration (FAA).

(b) A certificate of insurance on OST Form 6410 evidencing liability insurance 

coverage meeting the requirements of 14 CFR 205.5(b) for all of its aircraft.

(c) A statement of any changes the holder has undergone in its ownership, key 

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

Show Cause Order in this case.

(d) A revised list of pre-operating expenses already paid and those remaining to be 

paid, as well as independent verification that the holder has available to it funds 

sufficient to cover any remaining pre-operating expenses and to provide a working 

capital reserve equal to the operating costs that would be incurred in three months of 

operations.

(2) Pending receipt of effective authority, the holder may not accept payment of any kind 

(i.e., cash, check, or credit card), issue tickets for the operations proposed under this certificate, 

or enter into contracts with charter operators, and any advertisement by the holder must 

prominently state: "This service is subject to receipt of government operating authority." 

(3) The holder shall at all times conduct its operations in accordance with the regulations 

prescribed by the Department of Transportation for the services authorized by this certificate, 

and with such other reasonable terms, conditions, and limitations as the Department of 

Transportation may prescribe in the public interest.

(4) 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 
2

all U.S. Government requirements concerning security, including, but not limited to 49 CFR Part 

1544. ∗

(5) The holder shall at all times remain a "Citizen of the United States" as required by 49 

U.S.C. 40102(a)(15).

(6) The holder shall maintain in effect liability insurance coverage as required under 14 

CFR Part 205. Failure to maintain such insurance coverage will render a certificate 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 certificate.

(7) The holder is not authorized to engage in air transportation operations between points 

within the State of Alaska.

(8) 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.

(9) In the event that the holder does not commence actual flying operations under this 

certificate within one year of the date of the Department's determination of its fitness, its 

authority shall be revoked for dormancy, unless the holder is conducting operations under 

another type of certificate authority. Further, in the event that the holder commences operations 

for which it was found "fit, willing, and able" and subsequently ceases all such operations, its 

authority under all certificates held 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 operations 

within one year of its cessation, its authority shall be revoked for dormancy.

 

∗ 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.
Attachment

SPECIMEN

Terms, Conditions, and Limitations

ORANGE AIR, LLC

is authorized to engage in foreign charter air transportation of persons, property, and mail: 

Between any place in the United States and any place outside thereof.

This authority is subject to the following provisions:

(1) The authority to operate under this certificate will not become effective until six 

(business) days after the Department has received the following documents; provided, however, 

that the Department may stay the effectiveness of this authority at any time prior to that date:

(a) A copy of the holder's Air Carrier Certificate and Operations Specifications 

authorizing such operations from the Federal Aviation Administration (FAA).

(b) A certificate of insurance on OST Form 6410 evidencing liability insurance 

coverage meeting the requirements of 14 CFR 205.5(b) for all of its aircraft.

(c) A statement of any changes the holder has undergone in its ownership, key 

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

Show Cause Order in this case.

(d) A revised list of pre-operating expenses already paid and those remaining to be 

paid, as well as independent verification that the holder has available to it funds 

sufficient to cover any remaining pre-operating expenses and to provide a working 

capital reserve equal to the operating costs that would be incurred in three months of 

operations.

(2) Pending receipt of effective authority, the holder may not accept payment of any kind 

(i.e., cash, check, or credit card), or enter into contracts for the operations proposed under this 

certificate, and any advertisement by the holder must prominently state: "This service is subject 

to receipt of government operating authority." 

(3) The holder shall at all times conduct its operations in accordance with the regulations 

prescribed by the Department of Transportation for the services authorized by this certificate, 

and with such other reasonable terms, conditions, and limitations as the Department of 

Transportation may prescribe in the public interest.

(4) The holder shall at all times conduct its operations in accordance with all treaties and 

agreements between the United States and other countries, and the exercise of the privileges 

granted by this certificate is subject to compliance with such treaties and agreements and with 

any orders of the Department of Transportation issued under them or for the purpose of 

requiring compliance with them.
2

(5) The exercise of the authority granted here is subject to the holder's first obtaining from 

the appropriate foreign governments such operating rights as may be necessary.

(6) 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.∗

(7) The holder shall at all times remain a "Citizen of the United States" as required by 49 

U.S.C. 40102(a)(15).

(8) The holder shall maintain in effect liability insurance coverage as required under 14 

CFR Part 205. Failure to maintain such insurance coverage will render a certificate 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 certificate.

(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 does not commence actual flying operations under this 

certificate within one year of the date of the Department's determination of its fitness, its 

authority shall be revoked for dormancy, unless the holder is conducting operations under 

another type of certificate authority. Further, in the event that the holder commences operations 

for which it was found "fit, willing, and able" and subsequently ceases all such operations, its 

authority under all certificates held 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 operations 

within one year of its cessation, its authority shall be revoked for dormancy.

 

∗ 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.
Attachment A

SERVICE LIST FOR ORANGE AIR, LLC

MR JOHN R MIETUS

LAW OFFICE OF JOHN MIETUS LLC

6701 DEMOCRACY BLVD

BETHESDA MD 20817-7500 

MR WILLIAM J WEBER

CERTIFICATION SECTION MANAGER

FAA AFS-900

45005 AVIATION DRIVE SUITE 131

DULLES VA 20166

MR ROBERT E TALMADGE

PRINCIPAL OPERATIONS INSPECTOR

FEDERAL AVIATION ADMINISTRATION

MIAMI CMO 29

2895 SOUTHWEST 145TH AVENUE

MIRAMAR FL 33027

MR PETER LYNCH AGC-300

ASST CHIEF COUNSEL FOR ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

MS ANNE SUISSA RTS-42

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS E-34

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590