Order 2010-6-14 

Served: June 9, 2010 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Issued by the Department of Transportation 

 on the 9th day of June, 2010 

Application of 

 KAISERAIR, INC. 

for a certificate of public convenience and necessity 

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

charter air transportation of persons, property, and 

mail 

 Docket DOT-OST-2009-0208 

FINAL ORDER 

By Order 2010-5-25, issued on May 24, 2010, we directed all interested persons to show cause why we 

should not make final our tentative findings and conclusions that KaiserAir, Inc. (“Kaiser”), is fit, 

willing, and able to engage in interstate charter air transportation of persons, property and mail, using 

one large aircraft. Interested persons were given 14 days to file objections to the order. 

No objections to the show cause order were received. 

ACCORDINGLY, 

1. We find that KaiserAir, Inc., is fit, willing, and able under 49 U.S.C. § 41102 to provide 

interstate charter air transportation of persons, property and mail, using one large aircraft, subject to 

conditions. 

2. We issue a certificate of public convenience and necessity to KaiserAir, Inc., authorizing it to 

engage in interstate charter air transportation of persons, property, and mail, subject to the attached 

Terms, Conditions, and Limitations. 

3. We direct that, should KaiserAir, Inc., wish 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 expansion. 

4. We direct KaiserAir, Inc., 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.1

 

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 The report shall include a description of Kaiser’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. 
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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
 

 

 

Certificate of Public Convenience and Necessity for 

Interstate Charter Air Transportation

KAISERAIR, INC.

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 interstate charter air 

transportation of persons, property, and mail. 

This authorization is not transferable without the approval of the Department of 

Transportation. 

 

 

 

By Direction of the Secretary 

 

Issued by Order 2010-6-14 Susan L. Kurland 

On June 9, 2010 Assistant Secretary for

Effective (See Attached) Aviation and International Affairs
Attachment A 

Terms, Conditions, and Limitations 

KAISERAIR, INC. 

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

1544. 

(5) When the authority contained in this certificate becomes effective, the charter passenger 

authority contained herein will be limited to operations performed under an aircraft 

management agreement with Kona Associates, LLC or with another similarly structured 

company. 

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

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

(7) 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. 

(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.
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SERVICE LIST FOR KAISERAIR, INC. 

MICHAEL BLASCO 

AVIATION SAFETY INSPECTOR 

FAA OAKLAND FSDO 

SUITE 280 

1420 HARBOR BAY PARKWAY 

ALAMEDA, CA 94502 

MARK W ATWOOD 

ELIZABETH J WADSWORTH 

SHER & BLACKWELL LLP 

1800 M STREET NW 

SUITE 900 

WASHINGTON DC 20036 

PETER LYNCH AGC-300 

ASST CHIEF COUNSEL FOR ENFORCEMENT 

FEDERAL AVIATION ADMINISTRATION 

800 INDEPENDENCE AVE SW 

WASHINGTON DC 20591 

BERNARD STANKUS RTS-42 

OFFICE OF AIRLINE INFORMATION 

DOT/RSPA/BTS E-36 

1200 NEW JERSEY AVE SE 

WASHINGTON DC 20590 

WILLIAM J WEBER 

CERTIFICATION SECTION MANAGER 

FAA AFS-900 

45005 AVIATION DRIVE, SUITE 131 

DULLES VA 20166 

CLAY MORITZ, RTS-42 

OFFICE OF AIRLINE INFORMATION 

DOT/RSPA/BTS E-36 

1200 NEW JERSEY AVE SE 

WASHINGTON DC 20590