Order 2010-6-14 Served: June 9, 2010

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 9 th 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 Kaiser Air, Inc. (“Kaiser”), is fit, willing, and able to engage in interstate charter ai r 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, w illing, and able under 49 U.S.C. § 41102 to provide interstate charter air transportati on of persons, property and mail, usi ng one large aircraft, subject to conditions.

2. We issue a certificate of public convenience and n ecessity 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 demonstrat e its fitness for such expansion.

4. We direct KaiserAir, Inc., to submit to the Ai r Carrier Fitness Division a first-year progress report within 45 days following the end of its first year of certificated operations. 1

1 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 anticip ates from its current operations duri ng its second year, current financial statements (including a balance sheet at the end of its firs t year of flight operations an d a 12-month income statement ending that same date), and a listing of current senior management and key technical personnel.2

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) Avia tion and International AffairsAttachment A



### Terms, Conditions, and Limitations

KAISERAIR, INC.

is authorized to engage in interstate charte r air transportation of persons, property and mail between any point in any State, territory, or possession of the Un ited 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 certif icate 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 ti me prior to that date:

(a) A copy of the holder's Air Carrier Certificate and Operations Specifications authorizing such operations from the Fe deral 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, si nce the date of the Show Cause Order in this case.

(d) A revised list of pre-op erating expenses already paid and those remaining to be paid, as well as independent verification t hat the holder has available to it funds sufficient to cover any remaining pre-ope rating 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, th e holder may not accept payment of any kind (i.e., cash, check, or credit card), issue tickets fo r the operations proposed under this certificate, or enter into contracts with charter operato rs, and any advertisement by the holder must prominently state: "This servic e is subject to receipt of government operating authority."

(3) The holder shall at all times conduct its operations in a ccordance with the regulations prescribed by the Department of Transportation for th e services authorized by this certificate, and with such other reasonable terms, conditi ons, and limitations as the Department of Transportation may prescribe in the public interest.

(4) The holder's authority under this certificate is effective onl y to the extent that such operations are also authorized by the Federal Aviation Administration (FAA), and comply with2

all U.S. Government requirements concerning s ecurity, including, but not limited to 49 CFR Part 1544. 

(5) When the authority contained in this certi ficate 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 "Citiz en of the United States" as required by 49 U.S.C. 40102(a)(15).

(7) The holder shall maintain in effect liabi lity insurance coverage as required under 14 CFR Part 205. Failure to maintain such insura nce coverage will render a certificate ineffective, and this or other failure to comply with the provisions of Subtitle VII of Ti tle 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 dete rmination 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. More over, if the holder does not resume operations within one year of its cessation, its au thority 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 flight s) 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.3

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 COUNSE L 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