Order 2012-6-22

Served: June 25, 2012 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 25th day of June, 2012

Application of

 MIAMI AIR INTERNATIONAL, INC.

for an exemption pursuant to 49 U.S.C. § 40109 from the 

provisions of 49 U.S.C. § 41104(c) and 14 CFR § 212.3(l)

 DOCKET DOT-OST-2012-0082

ORDER GRANTING EXEMPTION

Summary 

By this order, we grant an exemption from 49 U.S.C. § 41104(c) and 14 CFR § 212.3(l) to Miami 

Air International, Inc. (“Miami Air”), to the extent necessary to permit it to engage in single-entity 

charter air transportation of persons and property between certain points within the State of Alaska, 

subject to conditions.

Background 

By application dated May 18, 2012, Miami Air requested an exemption from the provisions of 

49 U.S.C. § 41104(c) and 14 CFR § 212.3(l) to the extent necessary to permit it to conduct 

single-entity charter air transportation of persons and property on behalf of Shell Offshore, Inc. 

(“Shell”), between certain points within the State of Alaska for the duration of a charter contract 

from July 1, 2012, to October 31, 2012.1 

Miami Air is a U.S. certificated air carrier with authority to conduct passenger charter operations in 

all states of the United States, except for charters flights between points within the State of Alaska, 

a restriction imposed by 49 U.S.C. § 41104(c) and implemented by 14 CFR § 212.3(l).2

 

1 Miami Air styled its exemption application as a request for an “emergency exemption.” However, rather 

than treat the application properly submitted within the purview of section 302.311 of our regulations, we 

have instead chosen to consider it as a normal exemption application, for which the applicant, citing an 

approaching start-up date and a desire to begin service preparations, has requested expedited treatment. 

2 See Order 91-10-50, issued September 25, 1999. Paragraph 2 of Miami Air’s certificate explicitly states 

that “the holder of is not authorized to engage in air transportation between points in the State of Alaska.” 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION
2

The applicant states that in the summer of 2012, Shell will be engaged in oil exploration activities at 

remote offshore sites in the North Slope of northern Alaska. In order to engage in these activities,

Shell needs to transport workers between Anchorage, Alaska; Deadhorse, Alaska; and Barrow, 

Alaska, where these workers will then travel by connecting helicopter services to their actual 

worksites. The applicant further explains that Shell requires dedicated air transportation services 

that can be offered on a flexible basis to accommodate irregular work schedules, weather changes, 

and other factors.

According to the applicant, when assessing its upcoming transportation needs, Shell contacted all of 

the Alaskan air carriers that could perform these services without requiring an exemption, as well as 

other passenger air carriers, informing them of Shell’s need for transportation services and Shell’s 

proposed requirements. The applicant states that Shell requested approximately four charter flights 

per week between the previously mentioned Alaskan points. However, such flights would need to 

be conducted using dedicated jet aircraft based in Anchorage, Alaska, for the duration of the 

contract. The contracted air carrier would provide a minimum of two complete crews based in 

Alaska for the duration of the contract, including pilots, flight attendants, and mechanics. Further, 

the contracted air carrier would remain “on-call” 24-hours a day. Lastly, the crew would have to be 

trained in accordance with Shell’s own safety program. 

Miami Air states that given the highly specialized nature of the operation, no other Alaskan air 

carrier was able to meet Shell’s specific requirements. However, the applicant indicates that if 

granted the relief requested, it intends to provide the transportation services desired by Shell as a 

single-entity charter. Under the proposed arrangement, Northern Aviation Services, Inc. (“NAS”), 

an affiliate of Northern Air Cargo, Inc., a U.S. certificated cargo air carrier based in Alaska, would 

function as agent for Shell in this transaction. NAS would provide to Shell certain ancillary 

services such as ground handling, landing fees, fuel, catering, crew per diem, crew lodging, taxes, 

etc. Additionally, the duration of this charter flight arrangement would be limited to 3-4 months. 

Although it is anticipated that the flights will be conducted July 1, 2012 through October 31, 2012, 

the applicant notes that they may be extended to November 30, 2012, depending on weather 

conditions. Lastly, the applicant maintains that granting the requested relief is consistent with the 

public interest.

No answers opposing Miami Air’s application were filed and no special issues regarding the 

applicant have come to our attention. Under these circumstances, we propose to decide the issue of 

the applicant’s requested exemption from certain statutory and regulation requirements on the basis 

of the written record.

Decision 

After careful consideration, we have decided to grant Miami Air the requested exemption from 

49 U.S.C. § 41104(c) and 14 CFR § 212.3(l) to the extent necessary to enable it to engage in the 

transportation services and operating arrangements described in this order. 

49 U.S.C. § 41104(c) provides that an air carrier holding a certificate issued under 49 U.S.C. 

§ 41102 may provide charter air transportation between places in Alaska only to the extent the 

Secretary decides the transportation is required by public convenience and necessity. This statute 

is implemented by 14 CFR § 212.3(l), which states that a certificated air carrier may not perform 

any charter in interstate commerce within the State of Alaska. Thus, in order for Miami Air to 
3

conduct the proposed operations on behalf of Shell, the air carrier would require relief from the 

provisions of the Statute as well as the Department’s rules.

We have carefully reviewed the facts of this matter and find that a grant of exemption is in the 

public interest. The circumstances presented here are extremely unique. First, according to the 

applicant, the prospective single-entity charter customer, Shell, has solicited air transportation 

services from air carriers that could perform the proposed services without an exemption and none 

of them are interested in conducting the charter flights.3 Second, the flights would be conducted on 

behalf of a single entity and not held out to the public as a whole, thus, Miami Air would not be 

competing against other Alaskan certificated air carriers in the large aircraft charter market in open 

competition. Thus, we find that a grant of exemption would not adversely affect competition. 

Third, the exemption would be limited to the duration of the contract which is not expected to 

extend beyond November 30, 2012. Lastly, without the exemption, Shell may not be able to 

adequately meet its transportation needs, which may adversely affect its offshore exploration efforts 

during 2012 and possibly impact the U.S. economy. In light of the above, we will grant the 

requested relief.

ACCORDINGLY:

1. We grant Miami Air International, Inc., an exemption from 49 U.S.C. § 41104(c) and 14 CFR 

§ 212.3(l) to the extent necessary to permit it to conduct single-entity charter air transportation of 

persons and property for Shell Offshore, Inc., between points within the State of Alaska. 

2. We reserve the right to amend, modify, or revoke this authority at any time, in the public 

interest, without notice or hearing.

3. This exemption expires November 30, 2012.

4. 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 at:

http://www.regulations.gov

 

3 Importantly, we note that all of the air carriers that could perform the flights without an exemption were 

served with a copy of the application and no objections to the application were received.
Attachment A

SERVICE LIST FOR

MIAMI AIR CHARTER, INC.

JAMES PROIA 

CHIEF EXECUTIVE OFFICER

MIAMI AIR INTERNATIONAL INC

PO BOX 660880

MIAMI FL 3266-0880

MR PETER LYNCH AGC-300

ASST CHIEF COUNSEL FOR ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

JAMES W TELLO

LAW OFFICES OF JAMES W TELLO

1025 CONNECTICUT AVENUE NW

SUITE 1000

WASHINGTON DC 20036

MR WILLIAM J WEBER

CERTIFICATION SECTION MANAGER

FAA AFS-900

45005 AVIATION DRIVE SUITE 131

DULLES VA 20166

EDWARD W SAUER

COUNSEL FOR ALASKA AIRLINES INC

SQUIRE SANDERS LLP

1200 19TH STREET NW

SUITE 300

WASHINGTON DC 20036

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS 

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590