Order 2010

- 11

- 4

Served: November 5, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 5 th day of November

, 2010

Fitness Determination of

ISLAND AIRLINES, LLC

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

- OST

- 2010

- 0156

ORDER TO SHOW CAUSE

PROPOSING ISSUANCE OF COMMUTER AIR CARRIER AUTHORITY

Summary

By this order, we tentatively find that Island Airlines, LLC (“ Island ” )

, is a citizen of the United States and is fit, willing , and able to conduct operations as a commuter air carrier, subject to

conditions.

Background

Section 41738 of Title 49 of the United States Code ( the “ Transportation Code”) and section 298.21(d) of t he Department’s Aviation Economic Regulations (14 CFR 298.21(d)) direct us to determine whether companies proposing to provide scheduled passenger service as commuter air carriers are “fit, willing, and able to perform the service,” and to ensure that all operations relating to this service conform to the safety standards established by the Federal Aviation Administration ( “ FAA ” ). 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 n air carrier’s fitness are whether the applicant: (1) will have the managerial

skills and technical abi lity to conduct the proposed operations, (2) has sufficient financial resources to commence the operations proposed without posing an undue risk to consumers or their funds, and (3) will comply with the Transportation Code and regulations imposed by

federa l and state agencies. We must also determine that the applicant is a U.S. citizen.

On June 16, 2010, Island, an i ntrastate scheduled opera tor serving the State of Massachusetts and holding a Part 135 Federal Aviation Regulation (“FAR”) oper ating certificate from the FAA,

filed an a pplication in Docket DOT

- OST

- 2010

- 0156 for authority as a commuter air carrier The air carrier accompanied its application with fitness information required by section 204.3 of our2

regulations

, and supplemented its appl ication with additional info rmatio n on July 28

, 1 and August 5 , 2010.

No a nswers opposing Island ’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 fitness on the basis of the written record, and we tentativel y conclude that

Isl and is a U.S. citizen and is fit, willing, and able to provide operations as a commuter air

carrier. 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 Company

Island was founded in 1991 as Island Airlines, Inc., by Mr. William F. McGrath , Jr

. for the purpose of conducting scheduled intrastate passeng er operations between Nantucket and Hyannis, Massachusetts. The air carrier was then acquired in 2007 by IAP, LLC

, (“IAP”)

, a Massachusetts limited liability company owned by two current employees, Mr. W. Scott LaForge and Mr. Brent Hanley, and was renamed Island Airlines, LLC. In March 2010, IAP transferred 85 percent of its ownership i nterest in Island to Island Air Holdings, LLC (“Holdings”), a Delaware limited liability corporation. Island now seeks to become a commuter

a ir carrier utilizing it s fleet of 6 Ce ssna 402 aircraft and 1 Cessna 208B Caravan

.

Managerial Competence

Island’s management and key technical personnel consist of the following individual s. Each have certified they are U.S. citizens

.

Mr. W. Scott LaForge

– President /Chief Executive Officer

Mr. Brent on J. Hanley

– Chief Pilot /Executive Vice President

Mr. R ichard Araujo

- Director of Mainten ance Mr. Carl A. Vogel

- Director of Operations Mr. Philip A. Geraci

– Manager of Customer Service and Stations

Mr. Brian C. Hansen

– Information Technology Management Coordinator Mr. Curtis W. Frye, Jr.

– Ground Crew Ma nager Mr. Edward Zeglen

– Maintenance Consultant

Mr. W. Scott LaForge , an Airline Transport Pilot, is President and Chief Executive Officer of

I sland (2004

- present) and is also President and Director of Operations of Ocean Air, Inc., an

aircraft and RV sales company (1986

- present). 2 Mr. LaForge was previously Executive Vice

1 On June 16 , 2010, Island filed a motion requesting confidential treatment under 14 CFR 302.12 (Rule 12) of

our Pro cedural Regulations for financial statements that the air carrier had provided with its fitness applicatio n. By letter dated July 26

, 2010, the Department part ially granted confidential treatment to Island with instructions that certain information be redacted and filed in the public docket, which the a pplicant complied with on July 28 , 2010

. 2 Ocean Air relinquished its FAA Part 135 certificate in 1991 and cu rrently conducts occasional recreational

vehicle and aircraft transactions.3

President of Hyannis Air Service, Inc. (1987

- 2004), and Vice President of Operations /Director of Operations of Gull Air, Inc. (1975

- 1987).

Mr. Brent on J. Hanley

, an A irline Transpo rt Pilot, is currently Chief Pilot (since 2006), Executive Vice President (since 2010) and Check Airman for Island (since 2002 )

. He has been

a n A320/B737 First Officer with USAirways

, but is currently on a voluntary leave of absence (1999

- present)

. Mr. Hanley previ ously was employed as Chief Pilot /Captain/Check Airman with Cape Air/Nantucket Airlines (1995

- 1999), a s First Officer with Atlantic Coast Airlines (1993

- 1995)

, a s Corporate Pilot and Flight Instructor with Hyldburg Aviation (1992

- 1993), a s Fli ght Instructor with Blue Hill Air (1991

- 1992) , and a s a Sales and Serviceperson with Pioneer Pump Co

. (1987

- 1990). Mr. Hanley also served in the United States Navy (1983

- 1987).

Mr. Richard Araujo, Director of Maintenance for Island

, has been employed with the air carrier since 2007, initially as its Chief Inspector and Airframe and Powerplant Mechanic . He was promoted to h is current position in February 2010

. A licensed Airframe and Powerplant Mechanic, Mr

. Araujo previously was e mployed as an Airl ine Mechanic with Cape Air (2005

- 2007), a Snow Removal Operator with Massac husetts Port Authority ( 2004

– 2005), the Owner of Sunshine Irrigation (1998

- 2001), and a Supervisor for Manny Soares Excavating (1992

- 1998)

. From 2001

- 2004

, he wa s a student at East Coast Aero Technical School.

Mr. Carl A

. Vogel is Island’s Director of Operations, a position he has held since May 1999. Prior to this, he was Manager of Flight Operations for the USAirways Shu ttle (1998

- 1999), Shift Manager

, Crew Sch eduling for USAirways Shuttle/Trump Shuttle (1989

- 1998), and Director of Ground Training and Assistant Director of Flight Operations with Aero Coach International Airways (1987

- 1989). An Airline Transport Pilot, Mr. Vogel has also been employed as a pilot

for several airlines

, including Provincetown/Boston/People’s Express Airlin es (1986

- 1987),

Trans

- Air Inc. (1986), and Chapman Air (1984

- 1985) , and was the Manager of Spirit of Palo Alto Aviation’s Flight Department where he was also the company’s Chief Flight Instructor, Chief Aerobatics Flight Instructor, and Airshow Demonstration Pilot (1976

- 1982)

.

Mr. Philip A. Geraci, Manager of Customer Servic e and Stations for Island since 2008, has over 35 years of aviation experience. He previously w as Island’s Manager of Customer Relations and Hyannis Station Manager (2005

- 2008), Supervisor of Passenger Service and Gate Agents with US Airways (1992

- 2005), a Senior Operations Agent with Trump Sh uttle (1989

- 1992), and held several positions in Operations and Customer Service for Eastern Airlines (1972

- 1989).

Mr. Brian C. Hansen is Island’s Information Technology Management Coordinator , a position he

has he ld since 2006. An Air Transport Pilot, he also has been employed as a pilot for Island (1999

- present) and Ocean Wings Charter Service (1999)

, and has also worked as a Ramp Agent for Island (1998

- 1999).

Mr. Curtis W. Frye, Jr. has been Ground Crew Manag er at Island since 1996. Previously

, he was the Manager of Roy’s Mobil (1990

- 1995) , a salesman for Boch Oldsmobile (1988

- 1990), and the Owner/Manager of Woman ’ s World Health Clubs (1980

- 1987).4

Mr. Edwa rd J. Zeglen serves as a Maintenance Consultant to Island. He is a licensed Airframe and Powerplant Mechanic with over 30 years experience in the aviation maintenance f ield. Mr Zeglen currently is employed with Hyannis Air Service as General Manager of Maintenance (2005

- present). Prior to that, he w as a Sup ervisor/Mechanic/ Foreman with Hyannis Air Service (1994

- 2005), Owner of Hangar 2 Inc. (1987

- 1994), a Line Mechanic Supervisor with Gull Air

, Inc. (1981

- 1987)

, and a Line Mechanic with Phoenix Aviation (1980

- 1981).

In view of the experience and background of the applicant’s key personnel, we tentatively

conclude that Island has demo nstrated that it has both key management and technical personnel who have the managerial skills and technical ability to support its prop osed operations

. Moreover

, the FAA has advised us that all of the applicant’s key personnel have been found qualified to hold their respective positions. 3

Opera ting Proposal and Financial Condition

Island is currently op erating as a scheduled intrasta t e air carrier under Part 135 operating authority. The air carrier has now requested commuter authority and plans to initiate interstate charter operations in the late fall and early spring months between points in Southern Connecticut and Rhode Island, the greater New York tri

- state area, and the Cape and Islands region, on the one hand, and Nantucket and Martha’s Vineyard on the other

, using its existing

aircraft fleet of 6 Cessna 402Cs and 1 Cessna Caravan.

In establishing financial fitness, the Depar tment typically asks an applicant to demonstrate that it has access to financial resources sufficient to cover its pre

- operating expenses and any negative working capital balance, plus a working capital reserve equal to the operating costs that are

reasona bly projected to be incurred during three months of “normal” operations. Because projected expenses during the first several months of air service frequently do not include all costs that will be incurred during a “normal” period of operations, it is our practice to base our

three

- month test on one

- quarter of the first year’s operating costs. Further, in calculating available resources, projected revenues may not be used.

F inancial statements submitted in support of Island ’s fitness show that for calend ar year 2009, the company lost $529,129 on approximately $5.5 m illion in operating revenues. Island’s

historic financial statements show a $ 99,173 net profit and a $222,650 net loss for calendar years 2007 and 2008, respectively. The applicant’s balance sheet at March 31, 2010

, shows that the company has current assets and current liabilities of $ 1.22 m illion and $756,455

, respectively,

in dicating positive working capital of $465,449 and a current ratio of 1:1.6 (that is, for every

dollar owed on March 31, 2010, pa yable within 12 months, Island had $1.60 with which to pay it)

.

3 Before authorizing a n air carrier to conduct air transportation operations, the FAA also evaluates certain of the applicant’s key personnel with respect to the minimum qualifications for those positions as prescribed in the Federal Aviation Regulations. The FAA’s evaluation of the se key personnel provides an added practical and in

- person test of the skills and technical ability of these individuals. The FAA has advised us that all of the individuals holding key technical positions with Island are qualified and have been approved f or those positions.5

Island also provided information about the expenses associated with its proposed commuter operations. The air carrier states that due to its existing infrastructure as a scheduled intrastate air carrier, it will incur pre

- operating costs of no more than $40,000, which are mainly the costs associated with FAA and DOT certification as well as some advertising and promotional costs.

Island projects that total expenses in its first year of c ommuter operations will amount to approximately $ 5.90 million. Based on this forecast , we estimate that Island will require about
$ 1.4 8 million to meet our financial fitness criteria

. 4

In support of its application

, the air carrier submitted third

- party verif ication from Bank of Cape

Cod showing that Island had, as of March 31, 2010

, $970,169 on deposit in its name. Island also provided letters from each of Holdings ’ investors

, committing an additional $1.2 million i n available funds.

We have reviewed the forecasts provided by Island and find them to be reasonable. Moreover,

we have reviewed Island’ s financial statements. Because the applicant provided evidence that

assets are available to support the proposed oper ations, we tentatively conclude that Island has

access to sufficient financial r esources to enable it to commence its proposed operations without posing an undue risk to consumers or their funds

. 5

Compliance Disposition

The applicant states that there are no actions or outstanding judgments against it, persons holding a substantial interest in it, or its key personnel, and that none of these parties have been the subject of any charges of unfair, deceptive or anti

- competitive business practices, or of f raud, felony or antitrust violations, or other legal action during the past ten years. The air carrier al so states that there are no pending investigations, enforcement actions, or formal complaints involving the applicant, persons holding a substantial i nterest in it, or its key personnel with respect to compliance with the Statute or the Department’s regulations.

The FAA advises us that it is working with Island in connection with the applicant's efforts to

obtain commuter operating authority from that agency, and it knows of no reason why we should

not find Island fit. Additionally, our review of FAA records indicates that Island has not been involved in any accidents or incidents since it initially commenced operations.

In light of these circumstances, we tent atively conclude that Island 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.

4 The $1.48 million noted here is one

- quarter of the applicant’s forec ast of approximately $5.90 million i n first year expenses, plus $40,000 in pre

- operating costs

. 5 As is our practice, prior to making any authority awarded to Is land effective, we will require the company to

demonstrate that it continues to have the financial resources needed to meet our financial fitness criteria.6

CITIZENSHIP

Section 41102 of the Transportation Code requires that authority 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 also requires 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. citi zens , and that t he air carrier must be under the actual control of U.S. citizens.

As noted earlier, Island, a Delaware limited li ability company, is owned by Holdings

, (8 5 percent ), and IAP (15 percent). Ownership of Holdings

, a Delaware limited liabili ty

company created by Mr. Thomas Cunningham and managing member of Island, is divided
among E mily Air, LLC (“Emily Air”) (25 percent), and 7 U.S. citizens (75 percent)

. 6 Emily Air, in turn, is own ed by Mr. Thomas Cunningham (90 percent )

, who also serves a s the managing member, and Mr. Carter Hertzberg (10 percent ), both U.S. citizens. IAP is a Massachusetts limited liability company owned by Mr. LaForge (67 percent) and Mr. Hanley (33 percent), Island’s President/CEO and Chief Pilot, respectively. Moreov er, all of Islands’s key personnel

are U.S. citizens and t he applicant has provided an affidavit attesting that it is a citizen of the United States within the meaning of the Statute and that it is owned and controlled by U.S.

citizens. Ad ditionally, our review of the applicant’s citizenship has uncovered no reason to suggest that control of Island rests with non

- U.S. citizens.

In light of the foregoing, we tentatively find that Island is owned and actually controlled by U.S. citizens, consistent with 49 U.S.C. § 40102(a)(15) and is fit, willing, and able to provide the proposed interstate commuter operations, subject to conditions.

OBJECTIONS

We will give interested persons 14 days following the service date of this order t o 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 application 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 decisi onal 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 wil l issue an order that will make final our tentative findings and conclusions with respect to Island ’s fitness and commuter
authorization

.

6 The 7 U.S. citizen investors each hold 10.7 15 percent ownership of Holdings either individually or through single member/single asset LLCs formed for that purpose. They are as follows: M essrs. David Golden, Garrett Bewkes, Brian Simmons, Frank Queally, Steven Quamme, Alex Seaver, and Chansoo Joung.7

EFFECTIVE COMMUTER AUTHORIZATION & LIMITATIONS

If Island is foun d fit and issued the commuter authority it seeks, its authority will not become effective until the company has fulfilled all requirements for effectiveness as set forth in the

terms and condit ions attached to its commuter authorization . Among other things, this includes our receipt of evidenc e that Island has been cert ifi cat ed by the FAA to engage in the proposed operations, a fully executed OST Form 6410 evidencing liability insurance coverage that meets the requirements of section 205.5(b) of our rules for all of its aircraft, third

- party ve rification of available funding necessary to meet the Department’s fitness requirements, and a statement of changes it may have undergone since its fitness was examined. In addition, consistent with the applicant’s proposed operations, we propose to limit any authority issued to Island to operations using aircraft that can be operated under FAR Part 135 (that is, aircraft with no more than 9 seats in scheduled passenger operations). Should Island desire to acquire and operate larger aircraft

that would re quire certification from the FAA under 14 CFR Part 121, our fitness findings might no longer apply. Therefore, should Island desire to operate aircraft that would require certification from the FAA under Part 121, it must first provide the Department with at least 45 days advance notice of such plans and provide updated information establishing its fitness for such expansion.

Furthermore, we remind Island of the requirements of 49 U.S.C. § 41110(e). Specifically, that section requires that, once a n air carrier is found fit initially, it must remain fit in order to hold its authority. To be assured that c ommuter air carriers continue to be fit after effective 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 Island is issued an effective commuter authorization and should it subsequently propose substantial changes in its ownership, management, or operations, it must first comply with the requirements of section

204.5 of our rules. 7 The compliance of the company with this requirement is essential if we are to carry out our responsibilities under section 41110(e)

. 8

Additionally, if the air carr ier is granted effective authority, it would be required to submit a

detailed progress report, within 45 days following the end of its firs t year o f commuter flight operations, to the Air Carrier Fitness Divis ion. The submission of a first

- year progress repor t is conditioned upon all new ly authorized commuter 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

7 Island may contact our Ai r 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 Depa rtment requested air carriers to provide a 30

- day advance notification of any proposed change in ownership, restructurin g, or recapitalization. If Island fails to file this updated information or if the information fails to demonstrate that the air carrie r 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 commuter authority.

8 We also remind Isla nd about the requirements of section 204.7 of our rules. This section provides, among other things, that (1) the commuter 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 redetermin ed; and (3) if the company does not resume operations within one year of its cessation, its authority shall be revoked for dormancy.8

description of Island ’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 sta tements, 9 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.

ACCORDINGLY,

1. We direct all interested persons to show cause why we should not issue an order finding

that Island Airlines, LLC

, is fit, willing, and able under 49 U.S.C. § 417 38 to provide air transportation as a commuter air carrier using small aircraft pursuant to Part 135 of the Federal Aviation Regulations, subject to conditions

.

2. We direct any interested persons having objections to the issuance of an order making final any of the proposed findings, conclusions, or award of authority set forth here to file them with Departme nt of Transportation Dockets, 1200 New Jersey Avenue, SE, Washington, D.C. 20590, in Docket DOT

- OST

- 2010

- 0156 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. 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. 10

4. In the event that no objections are fi led, we will consider all further procedural steps to be waived and we will enter an order making final our tentative findings and conclusions.

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

6. We will publish a summary of t his 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:

h ttp: // www. regulations .gov

9 These financial statements should include a balance sheet as of the end of the company’s first full year of actual fligh t operations and a 12

- month income statement ending that same date.

10 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

Island Airlines, LLC

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 authority to conduct scheduled passenger operations 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 a nd 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 incurr ed 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) or issue tickets for scheduled passenger operations, and any advertisement or listing of flight s 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 requirements of 14 CFR Part 298 and any other regulations pres cribed 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

(4) 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.

(5) The holder’s 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 Par t 121 certif i catio n from the FAA, it must first be determined fit for such operations.

(6) The holder's authority under this certificate is effective only to the extent th at 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 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.

( 9 ) In the event that the holder receives effective scheduled passenger authority, the following additional conditions will apply:

(a) 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.

(b) 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 C ompetition Act of 1979, as amended by section 337 of the Department of Transportation and Related Agencies Appropriations Act, 1998.

( 10 ) Should the holder propose any substantial changes in its ownership, management, or operations (as that term is defin ed in 14 CFR 204.2(l)), it must first comply with the requirements of 14 CFR 204.5.

(1 1 ) In the event that the holder does not commence actual flying operations as a commuter air carrier under this authority within one year of the date of the Department's determination of its fitness, its commuter authority shall be revoked for dormancy. Furt her, 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

 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

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 ISLAND A IRLINES, LLC

MR GARY B GAROFALO

MR VICTOR H SMITH

GAR OFALO GOERLICH HAINBACH

PC

1200 NEW HAMPSHIRE AVE NW

SUITE 800

WASHINGTON DC 20036 MR JOSEPH TAYLOR

POI FOR ISLAND AIRLINES

FEDERAL AVIATION

ADMINISTRATION

ONE CRANBERRY HILL

FOURTH FLOOR SUITE 402

LEXINGTON MA 02421 MR WILLIAM WEBER

CERTIFICATION SECTION

MANAGER

FAA AFS

- 900

45005 AVIATION DRIVE

SUITE 131

DULLES VA 20166

MR W SCOTT LAFORGE

CEO

ISLAND AIRLINES LLC

480 BARNSTABLE ROAD

HANGAR 1

HYANNIS MA 02601 MR CLAY MORITZ RTS

- 42

OFFICE OF AIRLINE

INFORMATION

DOT/RSPA/BTS E

- 36

1200 NEW JERSEY AVENUE SE

WASHINGTON DC 20590 REGIONAL COUNSEL

FEDERAL AVIATION

ADMINISTRATION

NEW ENGLAND REGION

12 NEW ENGLAND

EXECUTIVE PARK

BURLIN GTON MA 01803

MR PETER LYNCH

AGC

- 300

FAA ASST CHIEF COUNSEL FOR

ENFORCEMENT

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591 MR BERNARD STANKUS

OFFICE OF AIRLINE

INFORMATION

DOT/RSPA/BTS E

- 36

1200 NEW JERSEY AVENUE SE

WASHINGTON DC 20590