Orde r 2010-11-1 1 Served : Novembe r

10 , 201 0

OFTRJA,,

.

^Af^fS f ' ^ UNITE D STATE S O FAMERIC A

DEPARTMEN T O FTRANSPORTATIO N OFFIC EO FTH E SECRETAR Y WASHINGTON , D.C

. Issue db y th e Departmen t of Transportatio n o n th e 10'* " day o f

November , 201 0 Applicatio n of COMPAS S AIRLINES , INC

. for adisclaime r

o f jurisdictio n an dreissuanc e o f certificat e or , alternatively , approva l of th e transfe r o f it s certificat e unde r

4 9 U.S.C

. § 4110 5 Docke t DOT-OST-2010-024 2

ORDE RCONFIRMIN GORA LACTIO N AN D REISSUIN GCERTIFICAT E Summar y B y thi s order , w e (1 ) confirmou r ora l actio n of

Octobe r 1 , 2010 , disclaimin g jurisdictio n ove r th e transfe r

of th e interstat e schedule dcertificat e an dothe r operatin g authoritie s issue dt o Compas s Airlines , Inc. , t o Compas s Airlines , LLC , an d(2 ) reissu e th e ai r carrier' s interstat e certificate

. Backgroun d Establishe da s acorporatio n unde r th e law s of

th e Stat e of

Delaware , Compas s Airlines , Inc. , (Compass ) i s a

n operatin g ai r

carrie r that hold s acertificat e o f

publi c convenienc e an dnecessity t o engag e i n interstat e schedule dpassenge r ai r transportation, ' a s wel l a s othe r operatin g authorities. " O n Septembe r 28 , 2010 , Compas s file da n applicatio n i n Docke t

DOT-OST-2010

- 024 2 requestin g that

th e Departmen t

disclai mjurisdictio n ove r th e transfe r

of it s operatin g authoritie s t o Compas s Airlines , LL C (Compas s LLC) , anewly-forme dDelawar e limite d liability company. ^ Compas s state s that

th e transfe r

of it s operatin g authority i s incidenta l t o a n intra-corporat e reorganizatio n for

busines s an dta x purposes . Th e company further state s tha t

th e reorganizatio n wil l no t resul t i n an y materia l change s t o th e ownership , citizenship , management , control

.

' Se e Orde r

2008-6-17 , a s reissue do n Jun e 16 , 2008

. ^ Compas s hold s th e followin g internationa l authorities : U.S

. - Canad aOpe n Skie s Exemption , issue db y Notic e o f Actio n Taken , date dAugus t 16 , 2010 , an dBlanke t

Statemen t

o f Authorizatio n fo

r Compas s t o display th e K L cod e betwee n (1 ) point s in th e U.S

. an d(2 ) point s i n th e U. S an dpoint s in thir dcountries

. ' I n it s application , Compas s als o request s that th e Departmen t

registe r th e trad e name s "Compas s Airlines " an d "Compas s Airlines , LLC. "operations , financial condition , assets , liabilities , o r ne t wortho f

th e company . Compas s contend s tha t

th e transfe r

wil l allo w th e ai r

carrie r t o continu e t o operat e whil e optimizin g it s operationa l an dfinancia l resources , thereb y enhancin g competitio n i n th e domesti c an d internationa l marketplac e an dbenefitin g airlin e employees

. Th e corporat e reorganization , subsequently , becam e effectiv e o n Octobe r 1 , 2010

. N o answer s opposin g Compass ' applicatio n wer e file di n th e docket

. Decisio n Upo n revie w o f

th e informatio n provide db y Compass , w e hav e decide dt o disclai mjurisdictio n ove r th e carrier' s reincorporatio n a s aDelawar e limite dliabilit y company . Compas s advise s that th e reincorporatio n wil l hav e n o effec t o n it s actua l ownership , control , management , citizenship , financial condition , o r

operations

. In previou s cases , th e Departmen t ha s disclaime djurisdictio n ove r similar corporat e reorganization s basedo n th e conclusio n tha t th e circumstance s o f

th e propose dtransfe r

di dno t fal l withi n th e meanin g of sectio n 4110 5 o f

th e Transportatio n Code." ^ Sinc e th e applican t

advise s tha t

ther e wil l b e n o ownershi p change s o r change s i n fitness-relate d area s a s aresul t

o f th e transfe r

t o Compas s LLC , w e se e n o reaso n not t o d o s o here

. Therefore , o n Octobe r

1 , 2010 , w e orall y advise dCompas s of thi s decision

. B y thi s order , w e confirmou r oral actio n an dreissu e Compass ' certificat e t o reflec t th e Compas s LL C name . ' ACCORDINGLY , 1

. W e confirmou r

ora l actio n o f

Octobe r 1 , 2010 , disclaimin g jurisdictio n ove r th e transfe r

of th e interstat e schedule dpassenge r certificat e currentl y hel db y Compas s Airlines , Inc. , t o Compas s Airlines , LLC

. 2

. W e reissu e th e interstat e schedule dpassenge r certificat e issue dt o Compas s Airlines , Inc. , b y Orde r 2008-6-1 7 i n th e for

mattached. ^

^ See , for

example , Order s 96-4-1 8 an d2003-3-2

. ' W e wil l make th e reissue dcertificat e effectiv e o n Octobe r 1 , 2010

. ^ Th e reissue dcertificat e als o amend s aprovisio n that conditione dth e effectivenes s o f Compass ' authority o n th e ai r carrie r remainin g awholly-owne dsubsidiary o f Northwes t

Airline s Corporatio n ("NWAC") , whic hbecam e a wholly-owne dsubsidiary o f Delt aAi r

Lines , Inc. , o n Octobe r 29 , 2008

. Th e Departmen t initiall y impose dth e conditio n o n Compass ' authority whe n th e ai r carrie r requeste dto conduc t

operation s independen t

o f afee-for

servic e agreement
. Considerin g that Compas s wa s wholly-owne db y NWAC , an dNWA C demonstrate dth e financial wherewitha l necessary t o support independen t

operation s conducte db y Compass , th e Departmen t limite d Compass ' operation s provide dthat th e ai r carrie r remaine dwholly-owne db y NWAC

. In Jun e 2010 , th e Departmen t wa s advise dthat

Compas s woul dt o b e acquire db y Tran s State s Holdings , Inc

. (Tran s States) , th e paren t compan y o f

Tran s State s Airlines , Inc. , an dGoJe t Airlines , LLC

. Shortl y thereafter , o n Jul y 1 , 2010 , in accordanc e wit hth e provisio n o f

1 4 CF Rsectio n 204.5 , Tran s State s submitte dinformatio n t o th e Departmen t

i n coimectio n wit

hit s propose dacquisitio n o f Compass

. Since , followin g Tran s State s acquisitio n o f Compass , th e air

carrie r woul dcontinu e t o b e awholly-owne dsubsidiary o f anothe r entity possessin g th e financial wherewitha l t o support

it s independen t

operations , b y lette r

date dAugus t

6 , 2010 , th e Departmen t notifie dCompas s tha t w e foun dthat

Compas s continue dt o remai n fit unde r it s ne w ownership

. Thus , w e ar e amendin g Compass ' certificat e t o reflec t

thi s findin g an dconditio n th e effectivenes s o f th e ai r carrier' s authority o n it remainin g a wholly-owne dsubsidiary o f Tran s States

. ^ W e conside r

th e othe r authoritie s containe din footnot e 2 abov e als o t o b e resissue dt o reflec t th e effectiv e dat e an dnam e change

.3

. W e acknowledg e registratio n of th e trad e names "Compas s Airlines " an d"Compas s Airlines , LLC. " 4

. W e wil l serv e acop y o f thi s orde r

o n th e persons liste din Attachmen t A

.
By : SUSA N L

. KURLAN D Assistan t Secretary fo r Aviatio n an dInternationa l Affair s
A n electroni c versio n o f

thi s documen t

i s availabl e o n th e Worl dWid e We b at : http://www

. regulations , go v

### s^o^2 ^



# ^ss^^ ^
Certificat e o f

Publi c Convenienc e an dNecessity fo r Interstat e Ai r

Transportatio n (a s reissued )
Thi s Certifie s Tha t 

# COMPAS S AIRLINES , LL C d/b/aDELTA CONNECTIO N d/b/aCOMPAS S AIRLINES , INC

. d/b/aCOMPAS S AIRLINE S
i s authorized , subjec t

t o th e provision s o f

Subtitl e VI I o f

Titl e 4 9 o f

Unite d State s Code , th e orders , rules , an dregulation s issue dthereunder , an dth e attache dTerms , Conditions , an dLimitations , t o engag e i n interstat e ai r transportatio n o f

persons , property , an dmail

. Thi s Certificat e i s no t

transferabl e withou t

th e approva l o f

th e Departmen t

o f Transportation

. B y Directio n o f th e Secmtar y Issue dby Orde r

Susa n L

. Kurlan d O n Octobe r

Assistan t Secretar y fo r

Aviatio n Effectiv e o n Octobe r

1 , 201 0 an dInternationa l Affair sAttachmen t *A s reissue db

y Orde r Terms , Conditions , an dLimitation s COMPAS S AIRLINES , LL C d/b/ aDELT A CONNECTIO N '^i^ ^ " ^ d/b/ aCOMPAS S AIRLINES , INC

. d/b/ aCOMPAS S AIRLINE S

i s authorize dt o engag e i n interstat e ai r transportatio n o f

persons , property , an dmai l betwee n an y poin t i n an y State , territory , o r possessio n o f

th e Unite dState s o r

th e Distric t

o f Columbia , an dan y othe r poin t i n an y o f

thos e entities

. Thi s authorit y i s subjec t t o th e followin g provisions : (1 ) Th e holde r

shal l a t

al l time s conduc t

it s operation s i n accordanc e wit hth e regulation s prescribe db y th e Departmen t o f Transportatio n fo r

th e service s authorize db y thi s certificate , an dwith suc hothe r

reasonabl e terms , conditions , an dlimitation s a s th e Departmen t o f Transportatio n ma y prescrib e i n th e publi c interest

. (2 ) Th e holder' s authorit y unde r thi s certificat e i s effectiv e onl y t o th e exten t tha t suc hoperation s ar e als o authorize db y th e Federa l Aviatio n Administratio n (FAA) , an dcompl y withal l U.S

. Governmen t

requirement s concernin g security , including , bu t no t limite dt o 4 9 CF RPar t 1544.* * (3 ) Th e holde r

shal l a t al l time s remai n a"Citize n o f th e Unite dStates " a s require db y 4 9 U.S.C

. 40102(a)(15)

. (4 ) Th e holde r

shal l maintai n i n effec t liabilit y insuranc e coverag e a s require dunde r 1 4 CF R Par t 205

. Failur e t o maintai n suc hinsuranc e coverag e wil l rende r acertificat e ineffective , an dthi s o r othe r failur e t o compl y wit hth e provision s o f Subtitl e VI I o f

Titl e 4 9 o f

th e Unite dState s Cod e o r th e Department' s regulation s shal l b e sufficien t ground s t o revok e thi s certificate

. (5 ) Th e authorit y containe di n thi s certificat e shal l remai n effectiv e onl y s o lon g a s th e holde r remain s awholl y owne dsubsidiar y o f Tran s State s Holdings , Inc

. (6 ) Th e holde r

i s authorize dt o conduc t charte r

flight s i n interstat e and/o r foreig n ai r transportatio n i n accordanc e wit hth e provision s o f 1 4 CF R212

.

* Thi s certificat e i s bein g reissue dt o reflec t it s ne w corporat e nam e an dtrad e names , a s wel l a s amen da condition

. T o assur e complianc e wit hal l applicabl e U.S

. Governmen t requirement s concernin g security , th e holde r shall , before commencin g an y ne w servic e (includin g charte r flights ) t o o r

fro maforeig n airport , contac t it s Principa l Security Inspecto r (PSI ) t o advis e th e PS I o f it s plan s an dt o fin dou t whethe r th e Transportatio n Security Administratio n ha s determine dtha t securit y i s adequat e t o allo w suc hairport(s ) t o b e served

.(7 ) The holde r may reduc e o r

terminat e sennc e a t

an y poin t

o r betwee n an y tw o points , subjec t t o complianc e wit

hth e provision s o f

4 9 U.S.C

. 4173 4 cm

dal l order s an dregulation s issue dby th e Departmen t

o f Transportatio n unde r

tha t section

. (8 ) Th

e holde r ma y not provid e schedule dpassenge r ai r transportatio n t o o r

fro mDalla s (Lov e Field) , Texas , excep t

withi n th e limit s se t

fort hi n sectio n 2 9 o f

th e Internationa l Ai r

Transportatio n Competitio n Ac t

o f 1979 , a s amende do r

a s modifie db y an y futur e legislatio n addressin g acces s restriction s t o o r

fro mLov e Field

. (9 ) Shoul dth e holde r propos e an y substantia l chang e in it s ownership , management , o r operation s (a s define di n 1 4 CFR204.2(1)) , i t mus t firs t compl y wit

hth e requirement s o f

1 4 CFR204.5

. (10 ) I n th e even t

tha t th e holde r

commence s bu t

subsequentl y cease s al l operation s fo r whic hi t was foun d"fit , willin g an dable , " it s authorit y unde r thi s certificat e shal l b e suspende dunde r th e term s o f 1 4 CFR204. 7 an dth e holde r ma y neithe r recommenc e no r

advertis e suc hoperation s unles s it s fitnes s t o d o s o ha s bee n redetermine dby th e Department

. Moreover , i f th e holde r

doe s not

resum e operation s withi n on e yea r o f it s cessation , it s authorit y shal l b e revoke dfo r dormancy

.Attachmen t A SERVIC E LIS T FO R COMPAS S AIRLINES , INC

. M RDAVI D HAYE S II I VIC EPRESIDEN T & GENERA LCOUNSE L TRAN S STATE S HOLDING S IN C 1149 5 NAVAI D ROA D BRIDGETONM O 6304 4 M RKENNET H PQUIN N MS JENNIFE RTROC K COUNSE LFO RCOMPAS S AIRLINE S IN C PILLSBUR Y WINTHRO PSHA WPITTMA N 230 0 N STREE T NW WASHINGTO N D C 2003 7 M RPETE RLYNC H AGC-30 0 ASS T CHIE FCOUNSE LFO R ENFORCEMEN T FEDERA LAVIATIO N ADMINISTRATIO N 80 0 INDEPENDENC EAV ES W WASHINGTO N D C 2059 1

MS ANN ESUISSA , RTS-4 2 OFFIC EO FAIRLIN EINFORMATIO N DOT/RITA/BT S E-3 4 120 0 NEWJERSE Y AV ES E WASHINGTO N D C 2059 0 M RWILLIA M J WEBE R CERTIFICATIO N SECTIO N MANAGE R FA A AFS-90 0 4500 5 AVIATIO N DRIVE , SUIT E13 1 DULLES , V A 2016 6

M RBERNAR D STANKUS , RTS-4 2 OFFIC EO FAIRLIN EINFORMATIO N DOT/RITA/BT S E-3 4 120 0 NEWJERSE Y AV ES E WASHINGTO N D C 2059 0