Order 2014-1-14

Served: January 23, 2014 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation 

 on the 23rd day of January, 2014

Fitness Determination of

 CORPORATE FLIGHT MANAGEMENT, INC.

as a commuter air carrier under 49 U.S.C. §41738

 Docket DOT-OST-2013-0061

FINAL ORDER 

By Order 2013-11-21, issued November 25, 2013, we directed all interested persons to show 

cause why we should not make final our tentative findings and conclusions that Corporate Flight 

Management, Inc. (“CFM”), is fit, willing, and able to provide scheduled passenger service as a 

commuter air carrier using small aircraft1 pursuant to Part 135 of the Federal Aviation 

Regulations. Interested persons were given 14 days to file objections. No objections to the 

show-cause order were received. 

In Order 2013-11-21, the Department stated that CFM’s authority to conduct operations under its 

commuter air carrier authorization would not become effective until the Department received (1) 

a copy of CFM’s Air Carrier Certificate and Operation Specifications from the Federal Aviation 

Administration (“FAA”) authorizing such operations, (2) evidence of liability insurance 

coverage that meets the requirements of section 205.5(b) for all its aircraft, (3) a statement of any 

changes it had undergone in areas affecting its fitness subsequent to the issuance date of the 

Show Cause Order in this case (Order 2013-11-21), and (4) updated financial information and 

evidence that the air carrier still had available to it funds sufficient to meet the Department’s 

financial fitness criteria. 

On December 10, 2013, CFM provided the information necessary to receive effective authority.2

 

Specifically, CFM provided evidence of operating authority from the FAA, updated financial 

information, third-party verification of financial resources, updated personnel information, and 

 1 Small aircraft is defined as any aircraft originally designed to have a maximum passenger capacity of 60 seats 

or less or a payload capacity of no more than 18,000 pounds.

2 In order to expedite processing of its application, CFM provided all of the information required to make its 

authority effective prior to the Department issuing a final order in this matter. 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION
2

updated fleet information.3 Also, on December 18, 2013, CFM submitted a revised copy of its 

Certificate of Insurance (OST Form 6410) evidencing liability insurance meeting the 

requirements of 14 CFR 205.5(b).4

 

FITNESS

CFM states that its Director of Operations, Mr. Dwayne McMurry, has been replaced by 

Mr. Tim Tomlinson. Also, Mr. Matthew Chaifetz has replaced Mr. Mark Stear as the Vice 

President of Sales and Marketing. CFM states that these new individuals are U.S. citizens, and 

the air carrier submitted resumes and compliance information for each individual.

Mr. Tim Tomlinson initially joined CFM in April 2008. An Airline Transport Pilot and an 

Airframe and Powerplant Mechanic, Mr. Tomlinson has more than 20 years of aviation 

experience and has held various positions within the industry. From 2005 to 2008, he was a pilot 

for GoJet Airlines. Before that, from 2004 to 2005, he worked as a Part 121 certification 

consultant. From 2001 to 2004, he was the Director of Training for Great Plains Airlines, and 

from 1999 to 2001, he was a pilot for Midway Airlines. From 1996 to 1999, Mr. Tomlinson was 

the Director of Operations for Corporate Airlines, a related entity.5 Prior to that, from 1986 to 

1996, he worked for American Eagle holding positions of increasing responsibility, including 

Pilot, Instructor, Check Airman, and Director of Training.

Mr. Matthew Chaifetz joined CFM in October 2013. Before coming to the air carrier, he served 

as the Chief Operating Officer for Contour Flight from 2009-2013. Prior to that, he was Vice 

President of Jetstream International from 2006 to 2009. From 2004 to 2006, Mr. Chaifetz was 

the Director of Air Operations for STS Travel Group. He also worked for JetBlue Airways from 

2003 to 2004.

In view of the experience and background of the applicant’s key personnel, and the fact that they 

are currently conducting operations similar to those proposed, we conclude that CFM has 

demonstrated that it has the management skills and technical ability to conduct its proposed 

scheduled service operations using small aircraft.

6

With respect to CFM’s financial fitness, in Order 2013-11-21, the Department determined that 

CFM would need $170,138 to meet our financial fitness requirements. In its December 10 

 3 CFM removed nine aircraft from its Operations Specifications, added five aircraft, and intends to add 3 more 

aircraft. The air carrier states that these fleet changes are a result of terminating aircraft leases.

4 The certificate of insurance provided on December 10, 2013, did not reflect the required insurance coverage. 

Therefore, the air carrier submitted a revised insurance form that meets the Department’s requirements. 5 See Fn. 2 of Order 2013-11-21 for a description of the relationship between CFM and Corporate Airlines.

6 Initially, CFM reported an additional personnel change. CFM stated that its Director of Maintenance, Mr. Allen 

Peralta, was to be replaced by Mr. William Baker at the end of 2013. However, the FAA advised us that it has not 

yet determined that Mr. Baker is qualified and acceptable for the position. Thus, CFM has advised the Department 

that this proposed personnel change will not occur until the FAA has approved the new individual. Before 

authorizing an air carrier to conduct air transportation operations, the FAA evaluates certain of the air carrier’s key 

personnel with respect to the minimum qualifications for those positions as prescribed in the Federal Aviation 

Regulations. The FAA’s evaluation of these key personnel provides an added practical and in-person test of the 

skills and technical ability of these individuals. 
3

submission, CFM provided a copy of its October 31, 2013, balance sheet showing the company 

having current assets of $9.6 million and current liabilities of $5.3 million, giving the company 

positive working capital of $4.3 million. Additionally, the company provided copies of its bank 

statements showing that it had more than $400,000 on deposit with its financial institutions as of 

October 31, 2013. Thus, we find that CFM has access to sufficient funds necessary to 

commence its proposed operations.

Based on our review of the updated fitness information, insurance, and FAA documentation 

provided by CFM, we find that CFM is fit to provide scheduled passenger service as a commuter 

air carrier and we make such authority effective immediately. 

ACCORDINGLY, 

1. We find that Corporate Flight Management, Inc., is fit, willing, and able under 49 U.S.C. 

§ 41738 to provide scheduled passenger service as a commuter air carrier using small aircraft 

pursuant to Part 135 of the Federal Aviation Regulations, subject to conditions. 

2. We issue a Commuter Air Carrier Authorization to Corporate Flight Management, Inc., subject to 

the Terms, Conditions, and Limitations attached. 

3. We direct Corporate Flight Management, 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 commuter 

operations.7 

4. We will serve a copy of this Order on the persons listed in Appendix 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 

 7 The report should 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 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, a balance sheet as of the end of the company’s first full year of actual flight operations and a twelve month 

income statement ending that same date, and a listing of current senior management and key technical personnel. 

The air carrier should also be prepared to meet with staff members of the Fitness Division to discuss its current and 

future operations. 
 

 

Commuter Air Carrier Authorization

 

CORPORATE FLIGHT MANAGEMENT, 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 scheduled passenger 

air transportation operations as a commuter air carrier.

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

Transportation.

 

 

By Direction of the Secretary

Issued by Order 2014-1-14 Susan L. Kurland 

On January 23, 2014 Assistant Secretary for

Effective on January 23, 2014 Aviation and International Affairs
2

Attachment

Terms, Conditions, and Limitations

Corporate Flight Management, Inc.

is authorized to engage in scheduled passenger air transportation operations as a commuter air carrier.

This authority is subject to the following provisions:

(1) The holder shall at all times conduct its operations in accordance with the requirements of 

14 CFR Part 298 and any other regulations prescribed by the Department of Transportation for the 

services authorized here, and with such other reasonable terms, conditions, and limitations as the 

Department of Transportation may prescribe in the public interest.

(2) The holder authority is limited to operations conducted pursuant to Part 135 of the Federal 

Aviation Regulations. In the event that the holder wishes to institute operations that would require Part 

121 certification from the FAA, it must first be determined fit for such operations.

(3) The holder may not operate aircraft designed to have a maximum passenger capacity of more 

than 60 seats or a maximum payload capacity of more than 18,000 pounds.

(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 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 this authority 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 authority.

(7) 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.

(8) 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 

 ∗∗ 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.
3

Competition Act of 1979, as amended or as modified 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 requirements of 14 CFR 204.5.

(10) In the event that the holder commences but subsequently ceases all scheduled passenger 

operations, the authority granted here 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 such operations within one 

year of its cessation, its commuter authority shall be revoked for dormancy.
Attachment A

SERVICE LIST FOR CORPORATE FLIGHT MANAGEMENT, INC.

ALLEN HOWELL

PRESIDENT

CORPORTATE FLIGHT MANAGEMENT INC

276 DOUG WARPOOLE ROAD

SMYRNA TN 37167

SUSAN B JOLLIE

COUNSEL FOR CORPORTATE 

FLIGHT MANAGEMENT INC

7503 WALTON LANE

ANNANDALE VA 22003

PETER LYNCH AGC-300

ASST CHIEF COUNSEL FOR 

ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS RTS-42

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

MARK MAZOR

CERTIFICATION SECTION 

MANAGER

FAA AFS-900

45005 AVIATION DRIVE SUITE 131

DULLES VA 20166

SAMUEL PODBERESKY

U.S. DEPARTMENT OF 

 TRANSPORTATION

ASSISTANT GENERAL COUNSEL

 FOR AVIATION AND PROCEEDINGS

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

MR THOMAS LUIPERSBECK

PRINCIPAL OPERATIONS INSPECTOR

FEDERAL AVIATION ADMINISTRATIION

NASHVILLE FSDO CE9

MR ED BLOUNT

SUPERVISOR

FEDERAL AVIATION 

ADMINISTRATIION

NASHVILLE FSDO CE9