Order 2011

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Served: August 25, 2011

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 25 th day of August, 2011

Application of

CARLSBAD

- PALOMAR AIRLINES, INC.

d/b/a CALIFORN IA PACIFIC AIRLINES

for a certificate of public convenience and necessity under 49 U.S.C. 41102 to engage in interstate scheduled air transportation of persons, property, and mail Dockets DOT

- OST

- 2010

- 0126

FINAL ORDER

By Order 2011

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- 15 , issued August 10, 2011 , we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated in it and award a certificate of public convenience and necessity to Carlsbad

- Palomar Airlines, Inc. d/b/a

Califor nia Pacific Airlines authorizing it to engage in interstate scheduled air transportation of persons, property, and mail. Interested persons were given 14 days to file objections to the order.

No objections to the show

- cause order were received.

ACCORDIN GLY,

1. We find that Carlsbad

- Palomar Airlines, Inc. d/b/a California Pacific Airlines is fit, willing, and able to engage in interstate scheduled air transportation of persons, property, and mail, subject to conditions.

2. We issue a certificate of publ ic convenience and necessity to Carlsbad

- Palomar Airlines, Inc.

d/b/a California Pacific Airlines to engage in interstate air transportation in the form and subject to the Terms, Conditions, and Limitations attached.

3. We direct that s hould Carlsbad

- Palo mar Airlines, Inc. d/b/a California Pacific Airlines propose to operate more than three aircraft, it must notify the Department in writing at least 45 days prior to the proposed change in operations and demonstrate its fitness to conduct such operations be fore their commencement.2

4

. We direct Carlsbad

- Palomar Airlines, Inc. d/b/a California Pacific Airlines to submit to the Air Carrier Fitness Division a first year progress report within 45 days following the end of its first year of certificated operatio ns. 1

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

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

1 The report shall include a description of the carrier’s current operations (number and type of aircraft, principal
markets served, total number of full

- time and part

- time employees), a summary of h ow 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, and a listing of current senior management and key technical personnel.

# Certificate of Public Convenience and Necessity for Interstate Air Transportation

This Certifies That



## CARLSBAD

- PALOMAR AIRLINES, INC.

d/b/a CALIFORNIA PACIFIC AIRLINES

is authorized, subject to the provisions of Subtitle VII of Title 49 of United States Code, the orders, rules, and regulations issued thereunder, and the attached Terms, Conditions, and Limitations, to engage in interstate air transportation of persons, property, and ma il.

This Certificate is not transferable without the approval of the Department of Transportation.

By Direction of the Secretary

Issued by Order 2011

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On August 25, 2011 Assistant Secretary for Effective (See Attached) Aviat ion and International Affair s

### Attachment



### Terms, Conditions, and Limitations

CARLSBAD

- PALOMAR AIRLINES, INC.

d/b/a CALIFORNIA PACIFIC AIRLINES

is authorized to engage in interstate 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 becom e 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 Cer tificate 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 cos ts 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 issue tickets for the operations proposed under this certificate, and any advertisement or listing of flights 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 und er this certificate is effective only to the extent that such operations are also authorized by the Federal Aviation Administration (FAA), and comply with2

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 co verage 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 authorized to conduct charter flights in interstate and/or foreign air transportation in accordance with the provisions of 14 CFR 212

.

(8) In the event that the holder receives effective scheduled passenger authority, the following

additional c onditions will apply:

(a) 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.

(b) 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 Compet ition Act of 1979, as amended or as modifi ed 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 requirement s 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 ho lder 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 cert ificates 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 wi thin one year of its cessation, its authority shall be revoked for dormancy.

 To assu re 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 P SI 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

CARLSBAD

- PALOMAR AIRLINES, INC.

JEROME PENDZICK

FAA FSDO MANAGER

8524 GIBBS DRIVE

SUITE 120

SAN DEIGO CA 92123 MR PETER LYNCH AGC

- 300

FAA ASST CHIEF COUNSEL

FOR ENFORCEMENT

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591 WILLIAM J WEBER

CERTIFICATION SECTION MANAGER

FAA AFS

- 900

45005 AVIATION DRIVE SUITE 131

DULLES VA 20166

BERNARD STANKUS

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS RT S

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1200 NEW JERSEY AVE SE

WASHINGTON DC 20590 TED VALLAS

PRESIDENT AND CEO

CALIFORNIA

- PALOMAR AIRLINES INC

D/B/A CALIFORNIA PACIFIC AIRLINES

5670 EL CAMINO REAL

SUITE D

CARLSBAD CA 92008 ANNE SUISSA RTS

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OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS E

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1200 NEW JERSEY AVE SE

WASHINGTON DC 20590