BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Application of ) 

1 

MIAMI AIR INTERNATIONAL, INC. ) Docket OST-2012- 

) 

for an emergency exemption ) 

pursuant to 49 U.S.C. 5 40109 ) 

and 14 C.F.R. $5 302.302 AND 302.311. ) 

) 

APPLICATION OF 

MIAMI AIR INTERNATIONAL, INC. 

FOR AN EMERGENCY EXEMPTION 

Communications with respect to this document should be sent to: 

James Proia, CEO James W. Tello 

MIAMI AIR INTERNATIONAL, INC. LAW OFFICES OF JAMES W. TELL0 

P.O. Box 660880 1025 Connecticut Avenue, NW 

Miami, FL 3266-0880 Suite 1000 

jprioa~~miamiair.com - Washington, DC 20036 

Phone: 202-399- 191 8 

Fax: 202-478-0244 

jamestello~,earthlink.net 

[E-MAIL RESPONSES PREFERRED] 

Counsel for 

MIAMI AIR INTERNATIONAL, INC. 

May 18,2012 

ANSWERS TO THIS APPLICATION SHOULD BE FILED BY MAY 30,2012 
BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Application of 1 

1 

MIAMI AIR INTERNATIONAL, INC. ) Docket OST-2012- 

for an emergency exemption 

1 

) pursuant to 49 U.S.C. 5 40109 1 

and 14 C.F.R. 55 302.302 and 302.311. ) 

May 18,2012 

APPLICATION OF 

MIAMI AIR INTERNATIONAL, INC. 

FOR AN EMERGENCY EXEMPTION 

Miami Air International, Inc. ("Miami Air"), pursuant to 49 U.S.C. Section 40109 

and 14 C.F.R. Sections 302.302 and 302.3 11, hereby applies for an emergency exemption 

from the provisions of 49 U.S.C. Section 41 104(c) and 14 C.F.R. Section 212.3(1) to 

engage in single entity charter air transportation of persons and property for the Shell 

Offshore, Inc. ("Shell") between certain points within the State of Alaska for the 

duration of a certain charter contract from July 1,2012 to October 3 1,20 12, and for other 

relief. 

Miami Air is seeking emergency relief from the Department because the parties to 

this charter service have only recently concluded their agreement, and the charter service 

is scheduled to commence July 1,2012, only a few weeks from now. Given the need to 

make the necessary arrangements to put this charter in place, Miami Air is seeking a 
Application of Miami Air International, Inc. 

Docket OST-2012- 

Page 2 of 6 

shortened answer date for this Application, and expedited relief from the Department. 

As we will show, this proposed service is very specialized, tailored for a large oil 

company's needs this summer and fall, and highly distinguishable from the kinds of 

multiple entry, and permanent, services intended for sale to the general public in Alaska. 

As such, it is consistent with the public interest, a finding on which the Department may 

and should issue an exemption to permit its operation. 

Miami Air states the following as the basis for its application: 

This summer, Shell will be engaged in oil exploration activities at remote offshore sites 

in the North Slope off of Northern Alaska. In order to engage in these activities, Shell 

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

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

work sites. Given the need to transport workers to and from these sites, and to hold the 

aircraft on the ground while these transfers to and from helicopters are made, Shell 

requires dedicated transport services that can be offered on a flexible basis, in order to 

accommodate irregular work schedules, as well as changes in weather and other factors. 

1. When assessing its transportation needs for this summer and fall, Shell contacted a 

number of Alaskan and other passenger air carriers to let them know of Shell's need for 

summer lift, and the specific requirements of the proposed program. Shell requested a 

series of charter flights Anchorage-Barrow-Deadhorse-Deadhorse-Barrow-Anchorage 
Application of Miami Air International, Inc. 

Docket OST-2012- 

Page 3 of 6 

comprising up to four flights per week for the summer season1 with the following 

characteristics: 

(a) A jet aircraft dedicated for that purpose to be based in Anchorage for the duration 

of the contract; 

(b) A minimum of two complete crews based in Alaska for the duration of the 

contract, including six pilots, ten flight attendants and two mechanics (rotated on a 

monthly basis); and, 

(d) Twenty-four-hour, on-call service. 

The highly specialized nature of the operation by definition limits the number of carriers 

able to provide the lift that is required, as does the need for dedicated aircraft and for 

crews to be trained in accordance with Shell's own safety program. The possible need for 

extended and unpredictable hold times on the ground also made this program unsuitable 

for scheduled operators. 

2. No Alaskan carrier could fill all of these specific requirements. However - 

subject to grant of this application -- Miami Air offered just such a service with its B737- 

400 jet aircraft. (Northern Aviation Services, Inc., an affiliate of Northern Air Cargo, 

Inc., a certificated cargo carrier based in Alaska that bctions as agent for Shell in this 

transaction, is to provide to Shell certain ancillary services such as ground handling, 

landing fees, fueI, catering, crew per diem, crew lodging, taxes, etc. A number of the 

actions attributed here to Shell were accomplished by NAS on Shell's behalf.) 

' The precise timing of the program will be driven by weather (and ice) conditions on the North Slope. The 

program is anticipated to start on or about July 1,2012 and may extend to November 30,2012, depending 

on conditions. 
Application of Miami Air International, Inc. 

Docket OST-2012- 

Page 4 of 6 

3. Miami Air is a certificated charter air carrier with authority to operate in all 

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

a restriction imposed by 49 U.S.C. Section 41 104(c) and implemented by14 C.F.R. 

Section 212.3(1). This structure was enacted as a part of the Airline Deregulation Act of 

1978 to protect Alaskan carriers from wholesale authorization of permanent authority for 

intra-Alaska routes and charter operations. In the context of multiple-entry authorization, 

a specific finding of "required by the public convenience and necessity" is the 

protectionist standard for permanent, certificated authority.2 It is not a standard to be 

found in the exemption provisions of the same Airline Deregulation Act. It does not 

apply to temporary needs for a particular kind of service between specific points for a 

limited duration in time. 

4. Section 401 09 of the Transportation Code was revised and revitalized in the 

same statue that enacted the restrictive Alaskan language, changing the standard from 

"undue burden" to "consistent with the public interest," a much more liberal standard 

aligned with the policy thrust of the new law for charter operations outside the State of 

See MarkAir, Inc. v. Civil Aeronautics Board, 744 F.2d 1383 (1984), reversing Alaskan lnterstate 

Charter-Entry Proceeding, CAB Order 83-1 1-5 (November 1,1983). 

In doing so, the Senate report on the bill that would become law observed, 

"While current FA Act does have a section 416 allowing exemption from the act the test for the Board's 

use of the exemption power is far too rigid. In practice it has been limited to circumstances where no 

interested party -usually some competitor - has expressed an objection to a proposed action -- generally 

limiting its use to only the most minor and innocuous requests . . . And, the new exemption provisions' 

decisional criteria - a broad public interest test - is a vast improvement over current law which analyses the 

need for exemption by focusing on the burden enforcement would place on the air carrier, and only 

incidentally includes public need. . ." S. Report 95-631, p. 85-86 (February 6, 1978). 
Application of Miami Air International, Inc. 

Docket OST-2012- 

Page 5 of 6 

5. Thus, the standard for an exemption to provide authority for a limited period of 

time is not the same as that required for permanent authority. Miami Air, in this 

application, seeks only the former and not the latter. The "consistent with the public 

interest" standard for the exemption power of the Department is the more liberal one 

applicable generally. The "public interest" has consistently been construed by the 

Department to increase access by the pubic (including its businesses) to the varying and 

special kinds of services that those businesses see their requirements to be. 

6. Finally, in order to accommodate the start-up of this service need by Shell on 

July 1,2012, we request that that the answer date be accelerated to May 30,2012, so as to 

allow time for the Department to fully consider this request in time for issuance of 

authority permitting that operational start. 

Conclusion. This is not an application to operate a service that will then be held out to 

the public generally and it is sharply limited in scope and duration. It comprises, in its 

nature and extent, a private service carefully and individually created for a single, 

individual customer. In that way it is also highly distinguishable from other applications 

previously received by the Department that were intended to be held out to all. Given the 

temporary, immediate and unique characteristics of the service needs of Shell this 

summer, we submit that Miami Air's proposal easily fits the criteria for an exemption 

that is "consistent with the public interest." Section 40109(c). We urge the speedy grant 

of this application for exemption for this limited contract for specialized, single-entity 
Application of Miami Air International, Inc. 

Docket OST-2012- 

Page 6 of 6 

charter flights so as to facilitate Shell's operations - one of the mainstays of the Alaskan 

economy. 

WHEREFORE, Miami Air International, Inc. requests that the Department grant 

this Application as consistent with the public interest to the extent necessary for it to 

- perform the single entity charter operations described. 

Respectfully submitted, 

&es W. Tello 

LAW OFFICES OF JAMES W. TELL0 

Counsel for 

MIAMI AIR INTERNATIONAL, INC. 

Verification: 

Pursuant to Title 18 United States Code Section 1001, I, Michael Hackert in my 

individual capacity and as the authorized representative of Miami Air InternationaI, Inc., 

make this verification on information and belief that I have not in any manner knowingly 

and willfully falsified, concealed or failed to disclose any material fact or made any false, 

fictitious, or fraudulent statement or knowingly used any documents which contain such 

statements in connection with the preparation, filing or prosecution of the pleading. I 

understand that an individual who is found to have violated the provisions of 18 U.S.C. 

100 1 shall be fined or imprisoned not more than five years, or both. 

Michael Hackert, Vice President, Sales and Marketing 
CERTIFICATE OF SERVICE 

I, James W. Tello, hereby certify that I am causing the forgoing Application of Miami Air International, 

Inc., for an Emergency Exemption to be served by first class mail postage prepaid on the certificated air 

carriers listed on the attached schedule provided by the U.S. Department of Transportation for that 

purpose. In addition, I am serving the following air carriers by e-mail at the addresses noted below: 

Alaska Airlines, Inc. msinick@ssd.com 

Peninsula Airways, Inc, recohn@hhlaw.con 

James W. Tello 
U.S. Certificated Air Carriers 

(last updated:January 1, 2012) 

Air Excursions, LLC Mike Loverink Owner P.O. Box 16 Gustaws AK 99826 

Alaska Central Express, Inc. Donald Swortwood CEO 590 1 Lockheed Ave Anchorage AK 99502 

Alaska Seaplane Service, LLC Craig Loken General 8995 Yundunkin Dr. Juneau AK 99801 

Manager 

Arctic Circle Air Service, Inc. dmla Robert Hajdukovich President 5345 Airport Industrial Road Fairbanks AK 99709 

ERA Alaska dmla Frontier 

Alaska 

Ryan Air, Inc. Wilfred Ryan President 5701 Silverado Way, Unit L Anchorage AK 99518 

Bering Air, Inc. James Rowe President Box 1650 Nome AK 99762 

Bidzy Ta Hot' Aana, Inc. Brian Mart~n President P.O. Box 29 Mcgrath AK 99627 

d/b/a Tanana Air Service 

F.S. Air Service, Inc. Frederick Lee Mason Pres~dent 6500 Carl Brady Dr., Suite 109A Anchorage AK 99502 

Flight Alaska, Inc. Timothy S. Vottis President and 1515 East Tudor Rd., Suite 4 Anchorage AK 99507 

d/b/a Yute Air Alaska Gen.Manager 

Forty Mile Air, Ltd. Leif Wilson President Box 539 Tok AK 99780 

Frontier Flying Service, Inc. dlbla Robert Hajdukovich Chief 5245 Airport Industrial Rd. Fairbanks AK 99709 

Frontier Alaska Executive 

Officer 

Grant Aviation, Inc. Bruce McGlasson President Box 92200 Anchorage AK 99509 

Hageland Aviation Services, Inc. dmla James Tweto President Box 220610 Anchorage AK 99522 

Frontier Alaska 

Homer Air, Inc. John Dana Pruhs President 2190 Kachemak Bay Drive Homer AK 99603 
U.S. Certificated Air Carriers 

(last updated:January 1, 201 2) 

tliamna Air Taxi, Inc. Timothy J. La Porte President Box 109 Iliamna AK 99606 

Inland Aviation Services, Inc. Stephen L. Hill President P.O. Box 244 Aniak AK 99557 

Katmai Air, LLC 

dlbla Katmai Air 

Raymond F. Petersen President 4 125 Aircraft Drive Anchorage AK 99502 

Lynden Air Cargo, LLC Judy McKenzie President 6441 South Airpark Place Anchorage AK 99502 

Northern Air Cargo, Inc. David W. Karp CEO 3900 Old INT'L Airport Rd. Anchorage AK 99502 

Pacific Airways, Inc. Stephen Montanus President P.O. Box 5158 Ketchikan AK 99901 

Peninsula Airways, Inc. Orin D. Seybert CEO and 6100 Boeing Avenue Anchorage AK 99502 

d/b/a Penair Chairman 

PM Air, LLC Sessoms Marcus President 1515 Tongass Ave. Ketchikan AK 99901 

dlbla Promech Air 

Redemption, lnc. Robert Stanford President P.O. Box 125 Kodiak AK 99615 

dlbla Island Air Service 

Seaport Airlines, Inc. d/b/a Robert McKinney President 8421 Livingston Way Juneau AK 99801 

Wings of Alaska 

Servant Air, Inc. Wes Osowski President 1619 Airport Way, Box 3 Kodiak AK 99615 

Smokey Bay Air, Inc. Claire A. McCann President 2100 Kachemak Drive Homer AK 99603 

Spernak Airways, Inc. Michael B. Spemak President 1707 Memll Field Drive Anchorage AK 99501 

TatondukOutlitters, Limited Robert Everts President 5525 Airport Industrial RD., P.O. Fairbanks AK 99709 

dlbla Everts Air Alaska Box 6 1680 

d/b/a Everts Air Cargo 

Venture Travel, LLC Brian Salazar President 4085 Tongass Ave. Ketchikan AK 99901 

d/b/a Taquan Air 
U.S. Certificated Air Carriers 

(last updated:January 1, 2012) 

Warbelow's Air Ventures, Inc. Arthur Warbelow President Box 60649,3758 S. University Fairbanks AK 99709 

Avenue 

Wright Air Service, Inc. Robert Bursiel Prestdent Box 60142, Fairbanks Int'l Airport Fairbanks AK 99706