Order 2011-9-14

Served: September 19, 2011

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 19th day of September, 2011

Application of

ALASKA CENTRAL EXPRESS, INC.

 

for reissuance of its certificate of public convenience 

and necessity under 49 U.S.C. § 41102 

Docket DOT-OST-1996-1657

ORDER ISSUING EFFECTIVE CERTIFICATE

Summary

By this order, we (1) make effective the authority of Alaska Central Express Inc. (“ACE”), to 

engage in interstate scheduled air transportation of persons, property and mail using small 

aircraft1, and (2) reissue the air carrier’s certificate to reflect its effective date of September 6, 

2011.

Background

By Order 2011-2-12, issued February 18, 2011, the Department found ACE fit to conduct 

interstate scheduled passenger air transportation using small aircraft and reissued its certificate 

removing the condition limiting its passenger operations to charter service only.

However, the authority granted by this certificate was not to become effective until six (business)

days after the Department received (1) a copy of ACE’s Air Carrier Certificate and Operations 

Specifications from the Federal Aviation Administration (“FAA”) authorizing it to engage in 

such operations, (2) a certificate of insurance evidencing liability insurance coverage meeting the 

requirements of Part 205 of our rules, (3) updated fitness information describing any changes 

ACE may have undergone subsequent to the show cause order in this proceeding, and (4) a 

revised list of pre-operating expenses already paid and those remaining to be paid, as well as 

evidence that ACE continued to have sufficient funding to meet our financial fitness criteria.

On August 25, 2011, ACE filed the necessary information to make its authority effective, 

including updated financial fitness information in Docket DOT-OST-1996-1657. Specifically, 

the air carrier provided a list of pre-operating expenses remaining to be paid ($51,450) and a 

revised first-year expense forecast estimating approximately $2.59 million to be incurred. 

 

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.

UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION
2

We reviewed the updated forecasts provided by ACE and find them to be reasonable. Based on 

our review of this information, we calculate that ACE needs $699,794 to meet our financial 

fitness test.2 In support of its ability to fund its proposed operations, ACE provided statements

from Wells Fargo and Northrim Bank showing that, as of July 31, 2011, it had access to

$418,536 and $628,870, respectively. 

Upon review of the information provided by ACE, we determined that the air carrier had fulfilled

its requirements as set forth in Order 2011-2-12. Accordingly, the authority granted to ACE 

became effective on September 6, 2011. By this order, we reissue to ACE its certificate of 

public convenience and necessity to reflect its effective date.

REQUEST FOR CONFIDENTIAL TREATMENT

On August 25, 2011, ACE filed a motion for confidential treatment under section 302.12 of our 

rules (“Rule 12”) for certain information in connection with its request for effective authority. 

The information submitted included a copy of the applicant’s revenue and net income projections 

contained in its revised pro forma current and forecast Profit and Loss Statements (Attachments 

3 and 4). In support of its request, ACE noted that a grant of confidential treatment would be 

consistent with the Department’s previous decisions related to an applicant’s revenue and net 

income forecasts, and that public disclosure of this highly sensitive financial information would 

cause substantial harm to ACE. 

Rule 12 instructs us to evaluate requests for confidential treatment by 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)).

There is no question that the information for which ACE 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 whom 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)).

As ACE notes, the Department previously granted confidential treatment to the air carrier’s 

revenue and net income projections contained in its pro forma Profit and Loss Statement.3 We 

have reviewed the updated information and find that our basis for granting the air carrier’s 

 

2 The $699,794 noted here is comprised of the applicant’s forecast of approximately $51,450 in pre-operating 

expenses remaining to be paid, plus $648,344, which is one-quarter of its estimated $2.59 million in first-year 

expenses.

3 See Order 2011-2-4, at 5-6. 
3

previous request to withhold the documents from public disclosure continues to apply. 

Therefore, we will grant ACE’s request for confidential treatment of Attachments 3 and 4 filed 

on August 25, 2011. 

ACCORDINGLY, Acting under authority assigned by the Department in its Regulations 

14 CFR 385.12(a)(2):

1. We reissue the certificate of public convenience and necessity issued to Alaska Central 

Express, Inc., by Order 2011-2-12 to reflect the effective date of its authority to engage in 

interstate scheduled air transportation using small aircraft.

2. We direct Alaska Central Express, Inc., to submit to the Air Carrier Fitness Division a first

year progress report within 45 days following the end of its first year of actual interstate 

scheduled passenger flight operations using small aircraft.

4

3. We direct that, should Alaska Central Express, Inc., propose to operate large large aircraft, it 

must first notify the Department in writing 45 days prior to the proposed operation and 

demonstrate its fitness to conduct such operations before their commencement.5

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

Persons entitled to petition the Department for review of this order, under 14 CFR 385.30 may 

file their petitions within 10 days of the service date of this order.

The action confirmed in this order was effective when taken and the filing of a petition for 

review shall not alter its effectiveness.

By: 

TODD M. HOMAN

Director

Office of Aviation Analysis

An electronic version of this document is available on the World Wide Web at:

http://www.regulations.gov

 

4 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, current financial statements, 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.

5 This notice should be submitted to the Air Carrier Fitness Division. The air carrier may contact the Air Carrier 

Fitness Division prior to submitting its notice to determine what fitness information must be provided.
Certificate of Public Convenience and Necessity 

for Interstate Air Transportation

(as reissued)

This Certifies That

Alaska Central Express, Inc.

is authorized, subject to the provisions of Subtitle VII of Title 49 of United 

States Code, the orders, rules, and regulations issued thereunder, and the 

attached Terms, Conditions, and Limitations, to engage in interstate air 

transportation of persons, property, and mail.

This Certificate is not transferable without the approval of the Department 

of Transportation.

 

 

By Direction of the Secretary

Issued by Order 2011-9-14 Todd M. Homan

On September 19, 2011 Director

Effective on September 6, 2011 Office of Aviation Analysis
2

Attachment 

As reissued by Order 2011-9-14

Terms, Conditions, and Limitations

ALASKA CENTRAL EXPRESS, INC.

is authorized to engage in interstate 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 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.

(2) The holder's authority under this certificate is effective only to the extent that such operations 

are also authorized by the FAA, and comply with all U.S. Government requirements concerning 

security, including, but not limited to 49 CFR Part 1544. **

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

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

(4) The holder may not operate aircraft originally 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 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.

 

 This certificate is being reissued to reflect its effective date and to reflect the removal of the condition 

that limites the air carrier to interstate charter passenger transportation. .

** 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.
3

(6) The holder is authorized to conduct charter flights in interstate and/or foreign air 

transportation in accordance with the provisions of 14 CFR Part 212. 

(7) Should the holder propose any substantial changes in its ownership, management, or 

operations (as defined in 14 CFR Part 204.2(l)), it must first comply with the requirements of 

14 CFR Part 204.5.

(8) 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 Competition Act of 1979, as amended or as modified by any future legislation 

addressing access restrictions to or from Love Field.

(9) The holder may not enter into any form of agreement or arrangement with Mr. Neil Bergt, 

any member of his family, excluding Mr. Michael A. Bergt, or any entity owned or controlled by 

Mr. Neil Bergt or a member of his family, excluding Mr. Michael A. Bergt, without obtaining 

prior approval from the Department. 

(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 Part 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. 
Attachment A

SERVICE LIST FOR

ALASKA CENTRAL EXPRESS, 

INC.

MR ROBERT P SILVERBERG ESQ

ATTORNEY FOR ALASKA CENTRAL 

EXPRESS INC

SILVERBERG GOLDMAN & BIKOFF LLP

1101 30TH STREET NW

SUITE 120

WASHINGTON DC 20007

MS MARIANNE SEGUIN

RTS-42

OFFICE OF AIRLINE INFORMATION

DOT/RSPA/BTS E-36

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

REGIONAL COUNSEL AAL-7

ALASKAN REGION

FEDERAL AVIATION 

ADMINISTRATION

 222 WEST 7TH AVENUE SUITE 14

 ANCHORAGE ALASKA 99513

 

 

MR MICHAEL BERGT

PRESIDENT ALASKA CENTRAL EXPRESS 

INC

5901 LOCKHEED AVENUE

ANCHORAGE ALASKA 99502

MR BERNARD STANKUS

RTS-42

OFFICE OF AIRLINE INFORMATION

DOT/RSPA/BTS E-36

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

 

 MR WILLIAM J WEBER

 CERTIFICATION SECTION 

 MANAGER

 FAA AFS-900

 45005 AVIATION DRIVE SUITE 131

 DULLES VA 20166

MS DEE RICE

FEDERAL AVIATION ADMINISTRATION

222 WEST 36TH AVENUE

SUITE 101

ANCHORAGE ALASKA 99503