Order 2012-1-11

Served: January 17, 2012

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 17th day of January, 2012

Applications of

 UNIVERSAL JET AVIATION, INC.

for certificates of public convenience and necessity 

under 49 U.S.C. 41102 to engage in interstate and 

foreign charter air transportation 

Dockets DOT-OST-2011-0150

 and

 DOT-OST-2011-0151

ORDER TO SHOW CAUSE

PROPOSING ISSUANCE OF CERTIFICATES

Summary

By this order, we tentatively conclude that Universal Jet Aviation, Inc. (“Universal”), is fit, 

willing, and able to provide interstate and foreign charter air transportation of persons, property, 

and mail using one large aircraft,

1 and should be issued certificates of public convenience and 

necessity authorizing such operations, subject to conditions.

Background

Section 41102 of Title 49 of the United States Code (“the Transportation Code”) directs us to 

determine that applicants for certificate authority to provide interstate and foreign charter air 

transportation of persons, property and mail are “fit, willing, and able” to perform such 

transportation and to ensure that all operations relating to this authority conform to the provisions 

of the Transportation Code and the regulations and requirements of the Department. In making 

fitness findings, the Department uses a three-part test that reconciles the Airline Deregulation 

Act’s liberal entry policy with Congress’ concern for operational safety and consumer protection. 

The three areas of inquiry that must be addressed in order to determine a company’s fitness are 

whether the applicant (1) will have the managerial skills and technical ability to conduct the 

proposed operations, (2) will have access to resources sufficient to commence operations without 

posing an undue risk to consumers, and (3) will comply with the Transportation Code and 

regulations imposed by Federal and State agencies. We must also find that the applicant is a 

U.S. citizen.

 1 Large aircraft is defined as any aircraft originally designed to have a maximum passenger seating capacity of 

more than 60 seats or a maximum payload capacity of more than 18,000 pounds. 
2

On August 15, 2011, Universal Jet filed applications in Dockets DOT-OST-2011-0150 and 

DOT-OST-2011-0151 requesting certificates issued under 49 U.S.C. 41102, authorizing it to 

provide interstate and foreign charter air transportation of persons, property, and mail. Universal 

Jet accompanied its applications with information required by section 204.3 of our regulations 

for an examination of its fitness to hold such authority.

2

Additionally, on August 15, 2011, Universal Jet filed an application in Docket DOT-OST-2011-

0152 requesting a pendente lite exemption from Part 298 to allow it to operate one 16-seat 

executive configured Boeing Business Jet (“BBJ”),

3 registration number N920DS, in on-demand 

charter operations pending the Department’s action on the above mentioned applications for 

interstate and foreign passenger charter authority. On August 17, 2011, the Department granted 

a limited exemption to allow Universal Jet to operate one BBJ through November 30, 2011, in 

on-demand air transportation as an air taxi.4 On November 20, 2011, Universal Jet applied for a 

renewal to the abovementioned limited exemption, which the Department subsequently granted 

on November 30, 2011.5

We have received no answers to the applications and no special issues regarding the applicant 

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

Universal Jet’s fitness on the basis of the written record. As discussed below, we tentatively 

conclude that Universal Jet is a U.S. citizen and is fit, willing, and able to operate its proposed air 

service, subject to conditions. However, we will give interested persons an opportunity to show 

cause why we should not adopt as final these tentative findings and conclusions.

FITNESS

The Applicant

Universal Jet is a corporation organized under the laws of the State of Florida. The air carrier, 

headquartered in Boca Raton, Florida, has operated as an air taxi under Part 298 since 1999, and 

holds a Part 135 Federal Aviation Regulation (“FAR”) operating certificate from the Federal 

Aviation Administration (“FAA”). It operates a fleet of 11 Gulfstream business jets, 1 Learjet, 

and 1 Bell helicopter. The air carrier states it is a U.S. citizen and that its sole shareholder and 

President, Mr. Michael McCauley, is a U.S. citizen. If granted the certificates it seeks, Universal 

Jet intends to operate one BBJ in an executive configuration of 16 seats, in interstate and foreign

charter operations.

 2 Universal Jet filed additional information supplementing its applications on August 30 and October 7, 2011. 3 Normally, aircraft with only 16 seats would not require certificate authority since such aircraft generally qualify 

as “small” aircraft that can be operated under the Part 298 air taxi exemption. However, the BBJ, which is a 

modified B-737, is a “large” aircraft, which do not qualify for the air taxi exemption. Thus, Universal Jet has 

applied for certificates to allow it to operate a large aircraft. 

4 See Order 2011-8-19. Universal’s exemption request and application for certificate authority followed the 

Department’s discovery that the carrier’s addition of the BBJ to its air taxi registration had been accepted in error. 

The limited exemption was granted solely to permit Universal to carry out contracts for which it already was 

obligated.

5 See Order 2011-11-34 allowing Universal Jet’s limited exemption to be extended to February 29, 2012. 
3

Managerial Competence

President, Treasurer, and Secretary Michael W. McCauley

Director of Operations Richard C. Peck

Chief Pilot Nicholas T. Reinardy

Director of Maintenance William K. Marsar

Chief Inspector James W. Stedman, Jr.

Director of Safety Josh Fenton

Mr. Michael W. McCauley, Universal Jet’s President, Treasurer, and Secretary since 1995, holds 

an Airline Transport Pilot license and has logged over 12,500 flight hours. He previously served 

as Director of Flight Operations with Appletree Air, Inc. (1994-1995), and Senior Captain with 

Hop-A-Jet, Inc. (1984-1994). Mr. McCauley also is a licensed Check Airman and Airframe and 

Powerplant Mechanic. Mr. McCauley also owns a 50 percent interest in the following aviationrelated businesses: Executive Jet Services, Inc., a FAA Part 145 repair station; FM Holding 

Group LLC, an aircraft holding company; and BDM Holdings LLC, an aviation services 

company. 

Mr. Richard C. Peck has served as Universal Jet’s Director of Operations since 2007. A licensed 

Airline Transport Pilot and Check Pilot, Mr. Peck is also the Assistant Director of Operations for 

Ventura Air Services (2005-Present), and an Aviation Consultant with Aviation Law Experts, 

LLC (2005-Present), positions he holds on a part time basis. Previously the Airport Operations 

Manager for Fort Lauderdale-Hollywood International Airport (2006-2010), Mr. Peck was 

employed by the FAA for 33 years, holding various positions, including Aircrew Program 

Manager (1998-2005), Principal Operations Inspector (1994-1998), Operations Unit Supervisor 

(1989-1994), Staff Specialist-Compliance and Enforcement (1982-1989), Air Traffic Controller 

(1981-1982 and 1974-1978), and Aviation Safety Inspector (1978-1981). Mr. Peck also was an 

Operating Engineer for DIC Underhill (1971-1974) and served in the United States Army (1967-

1970). 

Mr. Nicholas T. Reinardy, Universal Jet’s Chief Pilot, joined Universal Jet in 1999. A licensed 

Airline Transport Pilot with over 8,720 flight hours, he is also a Captain and Check Airman for 

the air carrier. He previously was a Flight Instructor with Professional Flight Training (1998-

1999). 

Mr. William K. Marsar has been Universal Jet’s Director of Maintenance since April 2011. A 

licensed Airframe and Powerplant Mechanic, Mr. Marsar was previously the Director of 

Maintenance with Executive Jet Services, Inc. (January 2011-April 2011) and General 

Manager/Director of Maintenance with Logos Aviation Services, Inc. (January 2007-January 

2011). He was also a Site Manager for Elite Line Services (February 2005-January 2007), and 

worked for American Airlines (August 1985-December 2004) as a Production Manager, 

Production Supervisor, and Airline Mechanic. Additionally, Mr. Marsar was a Machinist in the 

United States Navy (1976-1979).

Mr. James W. Stedman, Jr. is Universal Jet’s Chief Inspector, a position he has held since June 

2011. He is also the Vice President of Avionics for Sky Theater Design Group LLC (2005-
4

present), and the Owner and Chief Executive Officer of Prodigious Avionics (2005-present). 

Mr. Stedman has held various aviation and avionics-related positions, including Airworthiness 

Inspector with General Dynamics Aviation Services (2010-2011); Avionic Manager/Chief 

Inspector with Logos Aviation Services (2007-2010); Vice President of Avionics with Reliance 

Aviation (2005); Avionics Technician with Jet Aviation (2004-2005); Avionics Manager with 

Banyan Air Service (2004); Avionics Manager with Savannah Air Center LLC (2001-2004); 

Lead Avionics Technician with Gulfstream Aerospace (1997-2001); and Avionics Technician 

with PEMCO Aeroplex (1996-1997). Mr. Stedman served in the United States Navy (1985-

1994). 

Mr. Josh Fenton has been Director of Safety at Universal Jet since 2005, and is also the air 

carrier’s Assistant Director of Operations and a licensed Airline Transport Pilot with over 5,000 

flight hours. Mr. Fenton previously was a Pilot with Raytheon Flight Options (2002-2005) and 

Capital Aviation Group (1999-2001). 

Universal Jet states that all its key personnel are U.S. citizens. Additionally, the FAA has 

advised us that Universal Jet’s key technical personnel have been approved by that agency to 

hold their positions,

6 the air carrier has conducted its operations satisfactorily, and it has no 

objection to the Department’s approval of Universal Jet’s application for certificate authority. 

In light of these facts, we tentatively conclude that Universal Jet has the management skills and 

technical ability to conduct its proposed interstate and foreign charter air transportation 

operations using one large aircraft. However, we propose to restrict Universal Jet’s initial large 

aircraft operations to the single aircraft proposed in its application. Should Universal Jet wish to 

add additional large aircraft to its operations at some later date, it would first need to have its 

fitness for such operations determined.7

Operating Plan and Financial Position

As previously noted, Universal Jet currently provides on-demand charter air transportation with a 

fleet of 12 small aircraft and a helicopter operated under Part 135 and Part 298 of our 

regulations. The applicant states that it will predominately operate the BBJ under a single longterm block charter contract, as well as offer regular on-demand charters to other third party 

customers, similar to the services it currently provides with its smaller jet aircraft. The air carrier 

currently manages the BBJ on behalf of Delaware Global Operation, LLC (“Delaware Global”)

pursuant to an Aircraft Management Agreement. Under this agreement, Delaware Global pays 

all operating costs associated with the aircraft and an administration fee for managing the 

aircraft. In turn, Universal Jet performs all management functions associated with maintaining 

 6 Before authorizing an air carrier to conduct air transportation operations, the FAA evaluates the qualifications 

of persons holding certain positions with respect to the minimum qualifications for those positions as prescribed in 

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

skills and technical ability. 

7 In the context of such a review, we would also evaluate Universal Jet’s financial fitness to conduct expanded 

operations.
5

and operating the aircraft and receives a management fee. Additionally, Universal Jet will retain 

10 percent of the charter revenues from the BBJ charter operations.

Historical financial statements submitted in support of Universal Jet’s fitness show that for

calendar year 2008, it posted a net loss of $159,967 on approximately $17.91 million in 

operating revenues. For calendar year 2009, Universal Jet posted a net loss of $269,282 on 

approximately $19.57 million in operating revenues, and for calendar year 2010, Universal Jet

posted a net loss of $152,917 on approximately $19.46 million in operating revenues. 

Despite its past losses, Universal Jet’s most recent income statement for the 7 months ended July 

31, 2011 indicates some improvement, with net income of $1.39 million on approximately 

$25.91 million in operating revenues. In addition, while the air carrier’s most recent balance 

sheet indicates that, as of July 31, 2011, it had current assets of $973,225 and current liabilities 

of $3.81 million, giving the company a negative working capital balance of $2.83 million, 

Universal Jet states that it anticipates full satisfaction of approximately $1.08 million of its 

$3.81 million in current liabilities within the next 12 months.8

To meet the Department’s financial fitness criteria, an applicant should have access to financial 

resources sufficient to cover its pre-operating expenses and the expenses that are reasonably 

projected to be incurred during three months of “normal” operations.9 Universal Jet provided the 

Department with a financial forecast for its first year of operations with its BBJ and stated that it 

has already completed all pre-operating requirements to add the aircraft to its FAA Operating

Specifications. 

In support of its financial fitness, Universal Jet states that it will not directly incur any operating 

expenses due to the structure of the aircraft management agreement in place with Delaware 

Global. The air carrier notes that as part of its aircraft management agreement, Delaware Global 

is responsible for the aircraft operating costs, including but not limited to: fuel, insurance,

catering, maintenance, flight phone, crew travel expenses, flight crew costs, parking, and parts 

and labor. Universal Jet also states that no additional facility or other major acquisitions are 

necessary to commence BBJ operations.

We have reviewed Universal Jet’s financial projections and we find them reasonable. In 

addition, since the aircraft owners pay most of the operating costs to Universal Jet, we are not 

including them in our financial fitness determination. Instead, we base our financial fitness test 

on Universal Jet’s projected indirect expenses ($393,716) plus negative working capital ($2.83 

million).10 Therefore, to meet the Department’s financial fitness criteria, Universal Jet would 

need approximately $3.23 million. 

 8 Universal Jet’s $3.81 million in current liabilities mainly consist of Accounts Payable ($2.3 million) and Taxes 

Payable ($1.15 million). Of the company’s $2.3 million in Accounts Payable, it expects to pay off $1.08 million

within the next 12 months.

9 Because projected expenses during the first several months of air transportation services frequently do not 

include all costs that will be incurred during a “normal” period of operations, it is our practice to base our threemonth test on an average of one-quarter of the first year’s operating cost forecast. 

10 See Swift Air, Order 2006-9-10, at 5.
6

In support of its ability to fund its proposed operations, the air carrier provided a letter from an 

individual, Mr. Michael Fine,

11 stating he will provide a line-of-credit to Universal Jet in the 

amount of $4.5 million. This letter was accompanied by a Wells Fargo Bank financial statement 

in Mr. Fine’s name for the month of July 2011, confirming the amount on deposit in excess of 

the line-of-credit. 

In light of the above, we tentatively conclude that Universal Jet will have access to sufficient 

financial resources to commence the operations it proposes without posing an undue risk to 

consumers and their funds.12

Compliance Disposition

The applicant states that, except as noted above, there are no other actions or outstanding 

judgments against it, its owners, or its key personnel nor have there been any charges of unfair, 

deceptive or anti-competitive business practices, or of fraud, felony or antitrust violations 

brought against any of these parties in the past ten years. The applicant also states that there are 

no pending investigations, enforcement actions, or formal complaints filed by the Department 

against it, its key personnel, or persons having a substantial interest in it with respect to 

compliance with the Transportation Code or the Department’s regulations.

A review of our records and other information available to us has uncovered no information 

which would reflect negatively on the applicant or any of its key personnel. In addition, 

according to the FAA, the air carrier has conducted its operations in satisfactory manner and the 

agency knows of no reason why the air carrier should not be granted the authority it is seeking. 

Moreover, the applicant notes that neither it nor any of its key personnel have been involved in 

an accident or incident in the year preceding its application or at any time in the past which 

remains under investigation by the FAA, the National Transportation Safety Board, or the 

company itself.

In light of these circumstances, we tentatively find that Universal Jet has the proper regard for 

the laws and regulations governing its services to ensure that its aircraft and personnel conform 

to applicable safety standards and that acceptable consumer relations practices will be followed.

CITIZENSHIP

Section 41102 of the Transportation Code requires that certificates to engage in air transportation 

be held only by citizens of the United States as defined in 49 U.S.C. 40102(a)(15). That section 

specifies that the president and two-thirds of the board of directors and other managing officers 

be U.S. citizens, that at least 75 percent of the outstanding voting interest be owned by U.S. 

citizens, and that the air carrier must be under the actual control of U.S. citizens. 

 11 Mr. Fine, a U.S. citizen, is a 50 percent owner of Executive Jet Services, Inc., which he co-owns with Mr. 

Michael McAuley. 

12 As is our practice, prior to making any authority awarded to Universal Jet effective, we will require the 

company to demonstrate that it continues to have access to the financial resources needed to meet our financial test. 
7

As noted earlier, Universal Jet was incorporated under the laws of the State of Florida in 1995. 

Mr. Michael W. McCauley, the applicant’s President, holds all outstanding shares of the 

company’s common stock. In addition, Universal Jet has submitted an affidavit attesting that it 

is a U.S. citizen. Finally, there is no other information before us that would lead us to conclude 

that Universal Jet is not controlled by U.S. citizens. 

In view of the foregoing, we tentatively conclude that Universal Jet is a U.S. citizen and that it is 

fit, willing, and able to provide air transportation services as a U.S. certificated air carrier, 

subject to conditions. 

PUBLIC CONVENIENCE AND NECESSITY

A finding of consistency with the public convenience and necessity is required for the award of 

authority for foreign charter air transportation of persons, property, and mail under section 

41102. We tentatively find that the foreign charter air transportation proposed by Universal Jet

is consistent with the public convenience and necessity. By Order 78-7-106, which instituted the 

Former Large Irregular Air Service Investigation, the Civil Aeronautics Board found that there 

was a continuing demand and need for additional charter air carriers. These findings remain 

valid and apply to the authority sought by Universal Jet. Therefore, if Universal Jet meets the 

fitness requirements of the Transportation Code, it will receive certificates authorizing it to 

engage in interstate and foreign charter air transportation of persons, property, and mail under 

section 41102.13

REQUEST FOR CONFIDENTIAL TREATMENT 

On August 15, 2011, Universal Jet filed a motion for confidential treatment under 

14 CFR § 302.12 (“Rule 12”) of our rules to withhold from public disclosure an Aircraft 

Management Agreement between Universal Jet and Delaware Global Operations LLC (“Exhibit 

F”). In support of its motion, Universal Jet states that the information at issue meets the 

requirements for exemption from public disclosure under the Freedom of Information Act, 5 

U.S.C. Section 552(b)(4). Moreover, Universal Jet states that the material contains proprietary 

information that would not normally be provided to the public nor would its public disclosure be 

required to further the public interest or promote competition. Further, Universal Jet notes that 

Exhibit F includes terms and financial information that could be used by competitors to 

Universal Jet’s commercial disadvantage, and this document is similar to that for which the 

Department has granted confidential treatment in the past. 

Rule 12 instructs us to evaluate requests for confidential treatment in accordance with the 

standards of disclosure found in the Freedom of Information Act (5 U.S.C. Section 552). 

Information may be withheld from disclosure under 5 U.S.C. 552(b)(4) if it is (1) commercial or 

financial, (2) obtained from a person outside of government, and (3) privileged or confidential 

(Gulf and Western Industries, Inc. v. United States, 615 F.2d 527, 529 (D.C. Cir 1979)).

 13 Pursuant to 49 U.S.C. 41307, issuance of foreign authority to the applicant is subject to Presidential review.
8

There is no question that the information for which Universal Jet seeks confidential treatment is 

financial or commercial in nature and that it was obtained from a person outside the government. 

The remaining question is whether the information is privileged or confidential—whether 

“disclosure of the information is likely to have either of the following effects: (1) impair the 

Government’s ability to obtain necessary information; or (2) cause substantial harm to the 

competitive position of the person from which the information was obtained” (National Parks 

and Conservation Association v. Morton, 498 F.2d 765, 770 (D.C. Cir 1974)). Further, to be 

privileged or confidential, the information must not be of the type that is usually released to the 

public (Gulf and Western Industries, Inc. v. United States, 615 F.2d 527, 530 (D.C. Cir 1979)).

After careful review of the motion, we have decided to grant confidentiality to the information 

for which such treatment is sought. Regarding Exhibit F, the Department typically grants 

confidential treatment to agreements of this type. We find that the release of this information 

could cause substantial harm to the competitive position of the applicant. Thus, we will grant

confidential treatment to Exhibit F. 

OBJECTIONS

We will give interested persons 14 days following the service date of this order to show cause 

why the tentative findings and conclusions set forth here should not be made final; answers to 

objections will be due within 7 days thereafter. We expect such persons to direct their 

objections, if any, to the applications and points at issue and to support such objections with 

detailed economic analyses. If an oral evidentiary hearing or discovery procedures are 

requested, the objector should state in detail why such a hearing or discovery is considered 

necessary, and what material issues of decisional fact the objector would expect to establish 

through a hearing or discovery that cannot be established in written pleadings. The objector 

should consider whether discovery procedures alone would be sufficient to resolve material 

issues of decisional fact. If so, the type of procedure should be specified (See Part 302, Rules 19 

and 20); if not, the reasons why not should be explained. We will not entertain general, vague, 

or unsupported objections. If no substantive objections are filed, we will issue orders that will 

make final our tentative findings and conclusions with respect to Universal Jet’s fitness and 

certification.

EFFECTIVE CERTIFICATE CONDITIONS AND LIMITATIONS

If Universal Jet is found fit and issued the certificates it seeks, its authority will not become 

effective until the air carrier has fulfilled all of the requirements for effectiveness as set forth in 

the terms and conditions attached to its certificates. Among other things, this includes (1) our 

receipt of evidence of Universal Jet’s authority from the FAA authorizing such operations, (2) 

evidence of liability insurance coverage that meets the requirements of section 205.5(b) of our 

rules, (3) a statement of changes it may have undergone since its fitness was examined, and (4) 

evidence that Universal Jet continues to have adequate financial resources available to it.

We also wish to remind Universal Jet of the requirements of 49 U.S.C. 41110(e). Specifically, 

that section requires that, once an air carrier is found fit initially, it must remain fit in order to 

hold its authority. To be assured that certificated air carriers continue to be fit after effective 
9

authority has been issued to them, we require that they supply information describing any 

subsequent substantial changes they may undergo in areas affecting fitness. Therefore, if 

Universal Jet is issued effective certificate authority and subsequently proposes substantial 

changes in its ownership, management, or operations, it must first comply with the requirements 

of section 204.5 of our rules.14 

Moreover, as discussed in the FITNESS section of this order, our finding of fitness for Universal 

Jet is based on the operating plans described in its application, namely, performing passenger 

charter air transportation with one large aircraft.15 Were the applicant to propose to expand its 

operations to include additional large aircraft, our fitness findings, particularly involving the 

adequacy of Universal Jet’s management and financial resources, might no longer apply. 

Therefore, should Universal Jet desire to operate additional large aircraft, it must first provide the 

Department with at least 45-days advance notice of such plans and provide updated information 

establishing it fitness for such expansion. The compliance of the company with this requirement 

is essential if we are to carry out our responsibilities under section 41110(e).16

Finally, if Universal Jet is granted effective authority, it would be required to submit a detailed 

progress report, within 45 days following the end of the first year of certificated flight 

operations, to the Air Carrier Fitness Division. The submission of a first year progress report is 

conditioned upon all newly certificated air carriers and was adopted as policy by the Department 

to aid in monitoring the fitness of new air carriers. The report should include a description of the 

air carrier’s current operations (number and type of aircraft, principle markets served, total 

number of full-time employees), a summary of how its operations have changed during the year, 

a discussion of any changes it anticipates from its current operations during its second year, 

current financial statements,17 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.

 14 The air carrier may contact our Air Carrier Fitness Division to report proposed substantial changes in its 

operations, ownership, or management, and to determine what additional information, if any, will be required under 

section 204.5. In addition, by notice dated July 21, 1998, the Department requested air carriers to provide a 30-day 

advance notification of any proposed change in ownership, restructuring, or recapitalization. If the air carrier fails to 

file this updated information or if the information fails to demonstrate that the air carrier will continue to be fit upon 

implementation of the substantial change, the Department may take such action as is appropriate, including 

enforcement action or steps to modify, suspend, or revoke the air carrier's certificate authority. 15 This limitation does not apply to the air carrier’s small aircraft operations and, as a result, Universal Jet remains 

free to conduct operations with as many small aircraft as it desires.

16 We also remind Universal Jet about the requirements of section 204.7 of our rules. This section provides, 

among other things, that (1) the certificate authority granted to a company shall be revoked if the company does not 

commence actual flying operations under that authority within one year of the date of the Department's 

determination of its fitness; (2) if the company commences operations for which it was found fit and subsequently 

ceases such operations, it may not resume commuter operations unless its fitness has been redetermined; and (3) if 

the company does not resume operations within one year of its cessation, its authority shall be revoked for 

dormancy.

17 These financial statements should include a balance sheet as of the end of the company’s first full year of 

certificated flight operations and a 12-month income statement ending that same date.
10

ACCORDINGLY,

1. We direct all interested persons to show cause why we should not issue orders making final 

our tentative findings and conclusions stated above and award certificates to Universal Jet

Aviation, Inc., authorizing it to engage in interstate and foreign charter air transportation of 

persons, property and mail using one large aircraft, subject to the attached specimen Terms, 

Conditions, and Limitations.

2. We direct any interested persons having objections to the issuance of orders making final 

any of the proposed findings, conclusions, or the certificate awards set forth here to file such 

objections with the Department of Transportation Dockets, 1200 New Jersey Avenue, S.E., West 

Building Ground Floor, Rm. W12-140, Washington, D.C. 20590, in Dockets DOT-OST-2011-

0150 and DOT-OST-2011-0151 and serve them upon all persons listed in Attachment A no later 

than 14 days after the service date of this order; answers to objections shall be filed no later than 

7 days thereafter.

3. We grant the motion for confidential treatment filed by Universal Jet Aviation Inc., on 

August 15, 2011.

4. If timely and properly supported objections are filed, we will accord full consideration to the 

matters or issues raised by the objections before we take further action.

5. In the event that no objections are filed, we will consider all further procedural steps to be 

waived and we will enter orders making final our tentative findings and conclusions and will 

issue Universal Jet Aviation, Inc., certificates that will contain exact copies of the attached 

specimen Terms, Conditions, and Limitations.18

6. We will serve a copy of this order on the persons listed in Attachment A.

7. We will publish a notice of this order in the Federal Register.

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

 18 Since we have provided for the filing of objections to this order, we will not entertain petitions for 

reconsideration.
Attachment

Specimen

Terms, Conditions, and Limitations

UNIVERSAL JET AVIATION, INC.

is authorized to engage in interstate charter air transportation of persons, property and mail 

between any point in any State, territory, or possession of the United States or the District of 

Columbia, and any other point in any of those entities.

This authority is subject to the following provisions:

(1) The authority to operate under this certificate will not become effective until six 

(business) days after the Department has received the following documents; provided, however, 

that the Department may stay the effectiveness of this authority at any time prior to that date:

(a) A copy of the holder's Air Carrier Certificate and Operations Specifications 

authorizing such operations from the Federal Aviation Administration (FAA).

(b) A certificate of insurance on OST Form 6410 evidencing liability insurance 

coverage meeting the requirements of 14 CFR 205.5(b) for all of its aircraft.

(c) A statement of any changes the holder has undergone in its ownership, key 

personnel, operating plans, financial posture, or compliance history, since the date of the 

Show Cause Order in this case.

(d) A revised list of pre-operating expenses already paid and those remaining to be 

paid, as well as independent verification that the holder has available to it funds 

sufficient to cover any remaining pre-operating expenses and to provide a working 

capital reserve equal to the operating costs that would be incurred in three months of 

operations.

(2) Pending receipt of effective authority, the holder may not accept payment of any kind 

(i.e., cash, check, or credit card), issue tickets for the operations proposed under this certificate, 

or enter into contracts with charter operators, and any advertisement by the holder must 

prominently state: "This service is subject to receipt of government operating authority." 

(3) The holder shall at all times conduct its operations in accordance with the regulations 

prescribed by the Department of Transportation for the services authorized by this certificate, 

and with such other reasonable terms, conditions, and limitations as the Department of 

Transportation may prescribe in the public interest.

(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 
2

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 a certificate 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 certificate.

(7) The holder is not authorized to engage in air transportation operations between points 

within the State of Alaska.

(8) 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.

(9) In the event that the holder does not commence actual flying operations under this 

certificate within one year of the date of the Department's determination of its fitness, its 

authority shall be revoked for dormancy, unless the holder is conducting operations under 

another type of certificate authority. Further, in the event that the holder commences operations 

for which it was found "fit, willing, and able" and subsequently ceases all such operations, its 

authority under all certificates held 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 operations 

within one year of its cessation, its authority shall be revoked for dormancy.

 ∗ 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.
Attachment

Specimen

Terms, Conditions, and Limitations

UNIVERSAL JET AVIATION, INC.

is authorized to engage in foreign charter air transportation of persons, property, and mail: 

Between any place in the United States and any place outside thereof.

This authority is subject to the following provisions:

(1) The authority to operate under this certificate will not become effective until six 

(business) days after the Department has received the following documents; provided, however, 

that the Department may stay the effectiveness of this authority at any time prior to that date:

(a) A copy of the holder's Air Carrier Certificate and Operations Specifications 

authorizing such operations from the Federal Aviation Administration (FAA).

(b) A certificate of insurance on OST Form 6410 evidencing liability insurance 

coverage meeting the requirements of 14 CFR 205.5(b) for all of its aircraft.

(c) A statement of any changes the holder has undergone in its ownership, key 

personnel, operating plans, financial posture, or compliance history, since the date of the 

Show Cause Order in this case.

(d) A revised list of pre-operating expenses already paid and those remaining to be 

paid, as well as independent verification that the holder has available to it funds 

sufficient to cover any remaining pre-operating expenses and to provide a working 

capital reserve equal to the operating costs that would be incurred in three months of 

operations.

(2) Pending receipt of effective authority, the holder may not accept payment of any kind 

(i.e., cash, check, or credit card), issue tickets for the operations proposed under this certificate, 

or enter into contracts with charter operators, and any advertisement by the holder must 

prominently state: "This service is subject to receipt of government operating authority." 

(3) The holder shall at all times conduct its operations in accordance with the regulations 

prescribed by the Department of Transportation for the services authorized by this certificate, 

and with such other reasonable terms, conditions, and limitations as the Department of 

Transportation may prescribe in the public interest.

(4) The holder shall at all times conduct its operations in accordance with all treaties and 

agreements between the United States and other countries, and the exercise of the privileges 

granted by this certificate is subject to compliance with such treaties and agreements and with 
2

any orders of the Department of Transportation issued under them or for the purpose of 

requiring compliance with them.

(5) The exercise of the authority granted here is subject to the holder's first obtaining from 

the appropriate foreign governments such operating rights as may be necessary.

(6) 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.∗

(7) The holder shall at all times remain a "Citizen of the United States" as required by 49 

U.S.C. 40102(a)(15).

(8) The holder shall maintain in effect liability insurance coverage as required under 14 

CFR Part 205. Failure to maintain such insurance coverage will render a certificate 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 certificate.

(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 does not commence actual flying operations under this 

certificate within one year of the date of the Department's determination of its fitness, its 

authority shall be revoked for dormancy, unless the holder is conducting operations under 

another type of certificate authority. Further, in the event that the holder commences operations 

for which it was found "fit, willing, and able" and subsequently ceases all such operations, its 

authority under all certificates held 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 operations 

within one year of its cessation, its authority shall be revoked for dormancy.

 ∗ 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.
Attachment A

SERVICE LIST FOR UNIVERSAL JET AVIATION, INC.

MICHAEL MCCAULEY 

PRESIDENT

UNIVERSAL JET AVIATION, INC

3700 AIRPORT ROAD

SUITE 204

BOCA RATON FL 33431

OFFICE OF AIRLINE INFORMATION

DOT/RSPA/BTS E-36

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

LORRAINE HALLOWAY

GERALD MURHPY

CROWELL & MORING LLP

1001 PENNSYLVANIA AVE NW

WASHINGTON DC 20004

JERRY PROENZA

FAA

SOUTH FLORIDA FSDO

2895 SW 145TH AVENUE

SUITE 120

MIRAMAR FL 33027

WILLIAM J WEBER

CERTIFICATION SECTION MANAGER

FAA AFS-900

45005 AVIATION DRIVE, SUITE 131

DULLES VA 20166

PETER LYNCH AGC-300

ASST CHIEF COUNSEL FOR 

ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591