Order 2010

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Served: March 23, 2010

UNITED STATES OF AM ERICA
DEPARTM ENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 23 rd Day of March, 2010

Fitness Determination of

CHARTER AIR TRANSPORT, INC.

as a commuter air carrier under section

49 U.S.C. § 41738 Docket DOT

- OST

- 2009

- 0187

FINAL ORDER

By Order 20 10

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, issued March 8 , 20 10

, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions that Charter Air Transport, Inc. (“CAT”), is fit, willing, and able to provide scheduled passenger service as a commuter air carrier using small aircraft 1 pursuant to Part 135 of the Federal Aviation Regulations. Interested persons were given 5 business days to file objections.

No objections to the show

- cause order were received.

ACCORDINGLY,

1. We find that Charter Air Transport, Inc., is fit, willing, and able under 49 U.S.C. § 41738 to provide scheduled passenger service as a commuter air carrier using small aircraft pursuant to Part 135 of the Federal Aviation Regulations, subject to conditions.

2. We issue a Commuter Air Carrier Authorization to Charter Air Transport, Inc., subject to the Terms, Conditions, and Limitations attached.

1 Small aircraft is defined as any aircraft originally designed to have a maximum passenger capacity of less than 60 seats or a payload capacity of no more than 18,000 pounds.

U N I T E D S

T A T E S O F A

M E R I C A D E P A R T M E N T O F T R A N S P O R T A T

I O N3. We direct Charter Air Transport, Inc., to submit to the Air Carrier Fitness Division a first

year progress rep ort within 45 days following the end of its first year of commuter operations. 2

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

.

By:

SUSAN L. KURLAND Assistant Secretary for Aviation

a nd International Affairs

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov

2 The report should include a description of the air carrier’s current operations (number and type of aircraft, principal markets served, total number of full

- time and part

- time employees), a summary of how these operations have changed during the year, a discussion of any changes it anticipates from its current operations during its second year, a balance sheet as of the end of the company’s first full year of actual flight opera tions and a twelve month income statement ending that same date, and a listing of current senior management and key technical personnel. The air carrier should also be prepared to meet with staff members of the Fitness Division to discuss its current and future operations.

# Commuter Air Carrier Authorization

CHARTER AIR TRANSPORT, INC.

is authorized, subject to the provisions of Subtitle VII of Title 49 of the United States Code, the orders, rules, and regulations issued thereunder, and the attached Terms, Conditions, and Limitations, to engage in scheduled passenger air transportation operations as a commuter air carrier.

This authorization is not transferable without the approval of the Department of Transportation.

By Direction of the Secretary

Issued by Order 2010

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- 29 Susan L. Kurland

On March 8, 2010 Assistant Secretary for Effective on (See Attached) Aviation and International Affairs

### Attachment 

### Terms, Conditions, and Limitations

Charter Air Transport, Inc.

is authorized to engage in scheduled passenger air transportation operations as a commuter air carrier.

This authority is subject to the following provisions:

(1) The 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 flights 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.

(4) The holder 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 Part 121 certification from the FAA, it must first be determined fit for such operations.( 5 ) Th e 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.

(6 ) The holder's authority under this certificate is effective only to the extent that such ope rations 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 Uni ted 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

oth er 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 Dep artment 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 Compet ition Act of 1979, as amended or as modified by any future legislation addressing access restrictions to or from Love Field.

( 10 ) 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.

(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 fitne ss, its commuter authority shall be revoked for dormancy. Further, 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 hol der may neither recommence nor advertise such operations unless its fitness to do so has been redetermined by the Department. Moreover, if the holder does not resume such operations within one year of its cessation, its commuter 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.A ttachment A

SERVICE LIST FOR CHARTER AIR TRANSPORT, INC.

MR DAVID A LUCAS
CHARTER AIR TRANSPOR T INC
2301 NORTH MARGINAL ROAD
CLEVELAND OH 44143 SUSAN B JOLLIE
COUNSEL FOR CHARTER AIR

TRANSPORT INC
7503 WALTON LANE
ANNANDALE VA 22003 PETER LYNCH AGC

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ASST CHIEF COUNSEL F OR
ENFORCEMENT
FEDERAL AVIATION ADM INISTRATION

800 INDEPENDENCE AVE SW
WASHINGTON DC 20591

BERNARD STANKUS
OFFICE OF AIRLINE IN FORMATION
DOT/RITA/BTS RTS

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1200 NEW JERSEY AVE SE
WASHINGTON DC 20590 MARIANNE SEGUIN
OFFICE OF AIRLINE IN FORMATION
DOT/RITA/BTS RTS

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1200 NEW JERSEY AVE SE
WASHINGTON DC 20590 CLAY MORITZ
OFFICE OF AIRLINE IN FORMATION
DOT/RITA/BTS RTS

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1200 NEW JERSEY AVE SE
WASHINGTON DC 20590

SAMUEL PODBERESKY
U.S. DEPARTMENT OF

TRANSPORTATION
ASSISTANT GENERAL CO UNSEL

FOR AVIATION AND PRO CEEDINGS
1200 NEW JERSEY AVE SE
WASHINGTON DC 20590 MR WILLIAM J WEBER
CERTIFICATION SECTIO N
MANAGER
FAA AFS

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45005 AVIATION DRIVE SUITE 131
DULLES VA 20166