Order 2014

- 7

- 19
Served: July 29, 201 4

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 29 th day of July , 201 4

Applications of

ORANGE AIR, LLC

for certificates of public convenience and

n ecessity under 49 U.S.C. § 41102 to engage in interstate and foreign charter air transportation of persons, property, and mail Docket s DOT

- OST

- 2011

- 0073

and DOT

- OST

- 2011

- 0074

ORDER CONFIRMING ORAL ACTION AND
ISSUING EFFECTI VE CERTIFICATE S

Summary

By this order, we (1) confirm our oral action of June 3, 2014 , making the certificate s of public convenience and necessity issued to Orange Air, LLC (“ Orange Air ”)

, for interstate and foreign

charter passenger air transportation ef fective on that date, and (2) reissue Orange Air’s interstate

and foreign charter certificate s to reflect their effective date.

Background

By Order 201 1

- 1 1

- 31 , issued November 28, 2011 , the Department found Orange Air fit, willing,

and able to conduct interstate and foreign charter passenger air transportation and issued to it

certificate s authorizing it to engage in interstate and foreign charter passenger operations. The authority granted by these certificate s was not to become effective until six ( business) days after the Department had received (1) a copy of Orange Air ’ s Air Carrier Certificate and Operations Specifications from the Federal Aviation Administration (“FAA”) authorizing it to engage in such operations, (2) a certificate of insurance e videncing liability insurance coverage meeting the requirements of Part 205 of our rules, (3) updated fitness information describing any changes Orange Air may have undergone subsequent to the show cause order in this proceeding, 1 and (4) evidence that Ora nge Air continued to have sufficient funding to meet our financial fitness

criteria.

1 See Order 2011

- 11

- 11 , served November 9, 2011

.2

On May 20, 2014

, Orange Air submitted all of the information required to make its certificate authority effective with the exception of its Air Carrier Certificate and Operations Specifications

from the FAA

. Orange Air also requested that the Department waive the six

- day waiting period and make its authority effective as soon as possible after the air carrier submits its FAA

information

. Subsequently, o n June 3, 2014

, Orange Air submitted to the Department a copy of its Air Carrier Certificate and Operations Specifications from the FAA authorizing interstate and foreign passenger charter operations.

FITNESS UPDATE

Management

Orange Air state s that t here have been two minor changes in the company’s key personnel

. Mr

. Tim Camelin replaced Mr . Frederick W. (“Chip”) Credno, III as Orange Air’s Director of Safety and Security in April 2014. Prior to joining Orange Air, Mr. Camelin had been the Director of Safety and Security for Sky King, Inc., since June 2013. Before that, he held the positions of Flight Safety Standardization Pilot with Arm Fleet Support (6/2011

- 6/2013), Safety and Security Manager and Program Manager with Presidential Airways (1/2008

- 6/2011), EMS pilot with Omni Helicopters (5/2006

- 1/2008), and Test Pilot with Lockheed Martin (1/2004

- 5/2006). Mr. Camelin retired from the U.S. Army in December 2004 after 21 years of service.

Ms. Connie Richardson now serves as Orange Air’s Manager of Human Resourc es and Accounting. 2 Before coming to Orange Air, she had been working as an O ffice M anager for Rinehart Development and Investment Group, LLC, since July 2011. From October 2006 to July 2011, Ms. Richardson worked for White’s Site Development, Inc., hold ing various positions, including Assistant Comptroller, Human Resources Manager, and Purchasing Manager.

Ownership

A t t he time the air carrier was initially found fit, Orange Air was wholly owned by Orange Air Holdings, LLC (“Holdings”), which in turn was owned by RWF Capital, LLC (“RWF”) (58 percent ), Mr. Frederick W. (“Chip”) Credno, I II (40 percent ), and JO Holdings, LLC (“JO”) (2 percent ). RWF

, a Delaware limited liability company , was wholly owned in equal parts by Messrs. Hugo Reiter, Alberto Fr anco, and Jorge Wolf, all of whom are US citizens. JO

, a Florida limited liability company

, was wholly owned by Mr. Jeffrey Oshinsky, also a U.S.

citizen.

B y letter dated July 17, 2013, Orange Air informed the Department that the ownership of Holdings ha d changed. 3 The company continued to be owned by RWF (45.82 percent ) and JO (1.6 percent ), but had two new investors, Frutaser, LLC (“Frutaser”) (34.29 percent ) and Sabal

2 T hese duties were previously performed by Ms. Kimberly Hunter , Director of Adm inistration

. 3 This informat ion was submitted by Orange Air in Dockets DOT

- OS T

- 2011

- 0073 and DOT

- OST

2011

- 0074 in connection with Orange Air’s request for a waiver of the Department’s revocation for dormancy provisions applicable to its certificate authority

.3

Holdings (“Sabal”) (18.29 percent ). Frutaser is wholly

- owned by JS Management, LLC, which was owned by Mr. Jacob Serfati (55 percent ) and his wife, Ori Serfati (45 percent ), both U.S.

citizens.

By letter dated May 20, 2014, Orange Air informed the Department that the ultimate owners of Holdings amended their investments. Specifically

, Frutaser’s interest s increased from 34.29

percent to 42.86 percent , RFW’s interest s have been reduced from 45.82 percent to 32.28

percent , and Sabal’s holdings have increased from 18.29 percent to 22.80 percent

. 4

Since all of Orange Air’s majority sh areholders are U.S. citizens, we find that these changes in holding will have no adverse effect on Orange Air’s citizenship and that the company continues to be owned and controlled by U.S. citizens.

Based on the above, we determined that Orange Air conti nued to be fit to provide interstate and foreign charter air transportation and 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. Thu s, on June 3, 2014 , we orally advised Orange Air that we were making its interstate and foreign certificate authority effective on that date. By this order, we

confirm that action and reissue to Orange Air its interstate and foreign charter certificate s to
reflect their effective ness

.

ACCORDINGLY, Acting under authority assigned by the Department in its Regulations,

14 CFR 385.12:

1. We confirm our oral action of June 3, 2014, granting Orange Air, LLC, a waiver from the

six

- day waiting period and maki ng its interstate and foreign charter certificate authority effective

on that same date.

2. We re issue to Orange Air, LLC, the interstate charter section 41102 certificate issued to it by Order 2011

- 11

- 31 in the attached form to reflect its effec tive date (Docket DOT

- OST

- 2011

- 0073 ).

3. We re issue to Orange Air, LLC, the foreign charter section 41102 certificate issued to it by Order 2012

- 1

- 31 in the attached form to reflect its effec tive date (Docket DOT

- OST

- 2011

- 0074 ).

4. We direct that, should Ora nge Air, LLC, propose to operate more than one large aircraft, it must first notify the Department in writing at least 45 days prior to the proposed operation and demonstrate its fitness to conduct such operations before their commencement.

4 In its May 20, 2014, letter, Orange Air made no reference to JO or the remaining ownership interest of 2 percent. However, since 98 percent of the company is owned and controlled by U.S. citizens, the company would continue to meet the Department’s ownership requirements eve n if that remaining

2 percent was held by non

- U.S. citizens.4

4. We direct Orange Air, 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 certificated operations. 5

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

The action confirmed in this order was effective when taken 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 ava ilable on the World Wide Web at: http://www.regulations.gov

5 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 su mmary 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 operat ions and a 12

- month income statement ending that same date), and a listing of current senior management and key technical personnel. The carrier should also be prepared to meet with

staff members of the Fitness Division to discuss its current and future o perations.

# Certificate of Public Convenience and Necessity for Interstate Charter Air Transportation

This Certifies That



## ORANGE AIR, LLC

is authorized, su bject 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 interstate charter air transportation of persons, propert y

, and mail.

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

By Direction of the Secretary

Issued by Order 2014

- 7

- 19 Todd M. Homan

On July 29, 2014 Director Effective June 3, 2014 Office of Aviation Analysis6



### Attachment

∗

As reissued by Order 2014

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- 19



### 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 t he District of Columbia, and any other point in any of those entities.

This authority is subject to the following provisions:

(1) The holder shall at all times conduct its operations in accordance with the regulations prescribed by the Department of Tran sportation 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.

(2) The holder's authority under this certificate is e ffective 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

. ∗ ∗

(3) The holder shal l at all times remain a "Citizen of the United States" as required by 49 U.S.C. 40102(a)(15).

(4) 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.

(5) The holder is not authoriz ed to engage in air transportation operations between points within the State of Alaska.

(6) 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 requir ements of 14 CFR

204.5.

∗ This certificate 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.7

(7) 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 C FR 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 r evoked for dormancy.

# Certificate of Public Convenience and Necessity for Foreign Charter Air Transportation

This Certifies That



## ORANGE AIR, 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 foreign charter air transportation of persons, property, and mail.

This Certificate is not transferable without the approval of the Depart ment of Transportation.

By Direction of the Secretary

Issued by Order 2014

- 7

- 19 Todd M. Homan

On July 29, 2014 Director Effective on June 3, 2014 Office of Aviation Analysis

### Attachment

∗

As reissued by Order 2014

- 7

- 19



### Terms, Conditions, and Limitations

ORANGE AIR, LLC

is a uthorized 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 holder shall at all times con duct 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.

(2) 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 sub ject 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.

(3) 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.

(4) The holder's authority under this certificate is effective only to the extent that such operations are also authorized by the Federal Aviation Administ ration (FAA), and comply with 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,

∗ Th is certificate 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 foreig n 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

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) 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.

(8) In the event that the holder commences but subsequently ceases all operations for which it was found "fit, willing, and able," its authority under this certificate 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 authori ty shall be revoked for dormancy.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 DRIV E SUITE 131

DULLES VA 20166

MR ROBERT E TALMADGE

PRINCIP AL OPERATIONS INSPECTOR

FEDERAL AVIATION ADM INISTRATION

MIAMI CMO 29

2895 SOUTHWEST 145 TH AVENUE

MIRAMAR FL 33027 MR PETER LYNCH AGC

- 300

ASST CHIEF COUNSEL FOR ENFORCEMENT

FEDERAL AVIATION ADMINIS TRATION

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