Order 2014

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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 23 rd d ay 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

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, 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 aircraft 1 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 author ity 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”) author izing 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 Caus e 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.

O n December 1 0 , 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.

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 N2

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

th e air carrier subm itted 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 he ld various positions within the industry. From 2005 to 2008, he was a p ilot 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 Airline s, 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 i ncreasing 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

sch eduled service operations using small aircraft

. 6

With respect to CFM’s financial fitness, in Order 2013

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- 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 O perations S pecifications , 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 c overage

. T herefore, the air carrier submitted a revised insurance form that meets the Department’s requirements

. 5 See Fn. 2 of Order 2013

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- 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, t he FAA advised us that i t 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. B efore authorizing an air carrier to conduct air transportation operation s, 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 i n

- 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 li a bi lities 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 ha d 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 upda ted 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 yea r progress report within 45 days following the end of its first year of commuter operations. 7

4. We will serve a copy of this O rder on the p ersons listed in Appendix A

.

By:

SUSAN L. KURLAND Assistant Secretary for Aviation

a nd 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 em ployees), 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 operati ons 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

fu ture 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

a ir 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

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- 14 Susan L. Kurland

On January 23, 2014 Assistant Secretary for Effective on January 23, 2014 Aviation and International Affairs2



### 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 aut horized 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

Aviat ion 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 p assenger 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 Subtitl e 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 provisi ons 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 advi se 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 owne rship, 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 her e 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 on e year of its cessation, its commuter authority shall be revoked for dormancy.A ttachment A

SERVICE LIST FOR CORPORATE FLIGHT MANAGEMENT, INC.

ALLEN HOWELL
PRESIDENT
CORPORTATE FLIGHT MA NAGEMENT INC
276 DOUG WARPOOLE RO AD
SMYRNA TN 37167 SUSAN B JOLLIE
COUNSEL FOR CORPORTA TE
FLIGHT MANAGEMENT IN C
7503 WALTON LANE

ANNANDALE VA 22003 PETER LYNCH AGC

- 300
ASST CHIEF COUNSEL F OR
ENFORCEMENT
FEDERAL AVIATION ADM INISTRATION
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
CERTIFI CATION 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 PRO CEEDINGS
1200 NEW JERSEY AVE SE
WASHINGTON DC 20590

MR THOMAS LUIPERSBEC K
PRINCIPAL OPERATIONS INSPECTOR
FEDERAL AVIATION ADM INISTRATIION
NASHVILLE FSDO CE9 MR ED BLOUNT
SUPERVISOR
FEDERAL AVIATION
ADMINISTRATIION
NASHVILLE FSDO CE9