Orde r 2010-10-2 1 Served : Octobe r

27 , 201 0

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- UNITE D STATE S O FAMERIC A

DEPARTMEN T O FTRANSPORTATIO N OFFIC E O FTH E SECRETAR Y WASHINGTON , D.C

. Issue db y th e Departmen t o f Transportatio n o n th e 21 ^ day o f

October , 201 0 Fitnes s Determinatio n o f SOVEREIG N AIR , INC

.
a s acommute r

ai r carrie r unde r sectio n 4 9 U.S.C

. § 4173 8 Docke t DOT-OST-2008-028 5

ORDE RDISMISSIN G APPLICATIO N Summar y B y thi s order , w e dismis s th e applicatio n file db y Sovereig n Air, Inc

. ("Sovereig n Air") , for authority t o conduc t

schedule dpassenge r

operation s a s acommute r ai r carrier

. Backgroun d O n Septembe r

12 , 2008 , Sovereig n Air, acorporatio n forme dpursuan t t o th e law s o f

th e Stat e o f Minnesot aan dheadquartere di n Belcourt , North Dakota , file dan applicatio n i n Docke t DOT-OST-2008-0285 , for authorit y t o conduc t

schedule dpassenge r

operation s a s acommute r ai r carrie r pursuan t t o sectio n o f

Titl e 4 9 o f

th e Unite dState s Cod e ("th e Statute")

. Th e applican t initiall y propose dt o provid e schedule dcommute r operation s 5 time s weekl y betwee n Minot , North Dakota , an dWilliston , North Dakota , usin g a3-seat Cessn a172

. B y lette r date dOctobe r

14 , 2008 , th e Departmen t requeste dadditional informatio n and/o r clarificatio n fro mSovereig n Ai r i n orde r t o full y proces s it s application , including , amon g othe r things , th e complianc e informatio n require db y 204. 3 (I) , (m) , (o) , an d(p ) o f ou r rule s (1 4 CF R204.3 ) fo r

al l of it s ke y personnel,' ' acomplet e narrativ e histor y detailin g th e scop e o f it s historica l an dcurren t operations , afirst-yea r operatin g expens e forecas t tha t conform s t o sectio n 204.3(t)(2 ) o f ou r rules , an dthird-part y verificatio n o f al l lines-of

credi t an dal l cas h deposit s availabl e t o support Sovereig n Air' s propose dcommute r operations

. Th e applican t

provide dsom e informatio n i n respons e t o ou r reques t for additional informatio n

• Sectio n 204.2(i ) o

f o rrule s define s Ke

yPersonne l as : th e directors , president , chief executive officer , chief operatin g officer , al l vic e presidents , th e directors o rsupervisors o f operations , maintenance , an d finance , an d th e chief pilot o f th e applican t o rai rcarrier , as wel l a s an ypart-tim e o rfull-tim e advisor s o rconsultant s t o th e managemen t o f th e applican t o rai r carrier

.o n Octobe r 21 , 2008 , an da

t thi s sam e time , requeste dthat certai n of

th e informatio n i t

provide d b e withhel dfro mpubli c disclosur e pursuan t t o sectio n 302.1 2 of

ou r Procedura l Regulations

. B y lette r date dJanuar y 14 , 2009 , th e Departmen t informe dth e applican t

that certai n informatio n for whic h it requeste dconfidentialit y di dnot warran t suc h treatmen t

an ddirecte dSovereig n Ai r t o fil e thi s informatio n i n th e publi c recor dwithi n fiv e busines s day s shoul dth e applican t choos e not t o fil e apetitio n for

reconsideration

. N o actio n wa s take n b y Sovereig n Air

. B y lette r date dJanuar y 30 , 2009 , w e reminde dSovereig n Ai r tha t that th e informatio n for

whic h w e denie dconfidentia l treatmen t ha dno t bee n submitte di n th e publi c record , an dnotifie dth e applican t that unles s thi s materia l wa s file di n th e publi c recor dwithi n fiv e busines s days , w e woul ddismis s it s applicatio n withou t furthe r notice

. O n Februar y 13 , 2009 , Jo n Payne , th e ai r carrier' s Chie f

Financia l Officer

("CFO") , contacte d th e Department' s staf

f an drequeste dan extensio n o f tim e t o fil e th e informatio n tha t ha dbee n denie dconfidentia l treatment
. Mr

. Payn e state dtha t Sovereig n Ai r

ha djus t receive dou r

Januar y 1 4 lette r du e t o weathe r

delayin g deliver y o f

mail

. W e therefor e grante dth e applican t afurthe r extensio n unti l Februar y 20 , 2009 , t o fil e th e informatio n denie dconfidentia l treatment
. O n Februar y 20 , 2009 , Sovereig n Ai r mad e afilin g i n th e publi c record

. However , instea do f filin g th e informatio n that ha dbee n denie dconfidentia l treatmen t a s directed , th e compan y provide dan amende drespons e t o ou r Octobe r 14 , 2008 , reques t

fo r information

. O n Apri l 10 , 2009 , w e reminde dSovereig n Ai r tha t i t ha dye t t o provid e th e informatio n for whic h th e Departmen t

denie dconfidentia l treatmen t a s directe db y ou r

Januar y 1 4 letter

. A t

thi s sam e time , w e informe dth e applican t that i t ha dals o faile dt o completel y addres s th e question s pose di n ou r

Octobe r 1 4 informatio n request
. Specifically , w e informe dSovereig n Ai r tha t i t ha dfaile dt o provide , amon g othe r things , acomplet e narrativ e histor y detailin g th e scop e of it s historica l an dcurren t

operations ; complet e complianc e informatio n for it s ke y personnel , a s require db y section s 204. 3 (1) , (m) , (o) , an d(p ) o f ou r rule s (1 4 CF R204.3) ; an dafirst-year operatin g expens e forecas t that conform s t o sectio n 204.3(t)(2 ) o f ou r rules

. W e als o note dthat , althoug h Sovereig n Ai r

identifie dMr

. Rober t

B

. Kam s a s amembe r

o f it s ke y personne l i n a meetin g with Departmen t staf f o n Octobe r

21 , 2008 , an dprovide dth e Department' s staf f witha Notic e o f Discharge , whic h indicate dMr

. Kam s a s bein g recentl y release dfro mservin g a sentenc e for

aprio r felon y conviction , n o informatio n regardin g Mr

. Kams ' employmen t o r complianc e backgroun dwa s include di n Sovereig n Air' s applicatio n o r i n it s supplementa l o r confidentia l filing s mad e i n respons e t o ou r Octobe r 1 4 informatio n request
. O n Apri l 17 , 2009 , Sovereig n Ai r responde dt o ou r

Apri l 1 0 reques t

fo r information

. However , th e applican t

agai n faile dt o provid e an adequat e descriptio n o f th e scop e o f

it s historica l an d curren t operations , complet e complianc e histor y informatio n for Mr

. Kams , an dafirst-year forecas t i n th e format

require db y sectio n 204.3(t)(2 ) of ou r mles

. O n Januar y 22 , an dFebmar y 8 , 2010 , Sovereig n Ai r mad e additiona l filing s i n th e publi c recor d i n support of it s reques t

fo r conmiute r

authority

. I n it s Januar y 2 2 filing

. Sovereig n Ai r amende d it s servic e proposal , statin g that i n additio n t o it s propose dcommute r operation s betwee n Minot ,North Dakota , an dWilliston , North Dakota, , th e applican t no w intend s t o operat e fou r roun d trip s pe r da y betwee n Salina , Kansas , an dKansa s City , Missouri , usin g aKin g Ai r 20 0 o r Kin g Ai r 350

. I n it s Febmar y 8 filing , Sovereig n Ai r provide dalette r

fro mNvisio n Partner s statin g tha t i t wa s willin g t o provid e financin g for Sovereig n Air' s propose dcommute r operations

. However , i n eac h case , th e applicant' s filing s wer e inadequatel y supported

. Fo r example , althoug h Sovereig n Ai r

ha dmad e significan t

change s t o it s operatin g proposal , i t di dnot provid e arevise dfirst-year

operatin g forecas t

o r arevise dpre-operatin g expens e forecast

. In addition , Sovereig n Ai r

provide dinadequat e informatio n regardin g th e propose dfundin g b y Nvisio n Partners , suc h a s th e typ e o f funding , term s o f

repayment , o r

informatio n demonstratin g Nvisio n Partners ' financia l solvency , al l o f whic h ar e necessar y t o asses s Sovereig n Air' s fitnes s t o conduc t it s propose dcommute r

operations

. B y lette r date dMarc h 3 , 2010 , th e Departmen t agai n requeste dinformatio n and/o r clarificatio n fro mSovereig n Ai r

i n orde r t o full y proces s it s application , including , amon g othe r things , complet e complianc e informatio n for Mr

. Rober t

Kams , adescriptio n o f

Sovereig n Air' s curren t an dhistorica l operation s detailin g th e numbe r o f fligh t hour s th e applican t

operate s pe r

month , a 

### revise dfirst-yea

r operatin g expens e forecas t tha t conform s t

o sectio n 204.3(t)(2 ) o

f ou r rule s an dthird-part y verificatio n o f al l lines-of-credi t

an dal l cas h deposit s availabl e t o support Sovereig n Air' s propose dcommute r operations

. O n Apri l 2 , 2010 , Sovereig n Ai r responde dt o th e Department' s reques t fo r information

. However , Sovereig n Ai r agai n faile dt o respon dcompletel y t o th e Department' s informatio n request
. Fo r

example , althoug h Sovereig n Ai r indicate dthat

Mr

. Kam s wa s th e subjec t of prio r felon y charges , th e applican t faile dt o provid e an y descriptio n o f th e prio r felon y charge s agains t him

. In addition

. Sovereig n Ai r als o faile dt o provid e adequat e informatio n describin g th e scop e o f it s curren t

an dhistorica l operation s o r arevise dfirst-year

operatin g expens e forecas t that conform s t o sectio n 204.3(t)(2 ) o f ou r mles

. I n addition , althoug h Sovereig n Ai r state dtha t evidenc e o f

lines-of-credi t

an dcas h deposit s availabl e t o support it s propose doperation s woul d b e forthcoming , n o suc h informatio n ha s bee n provided

. Decisio n Th e Departmen t

full y expect s an applican t fo r commute r

authorit y t o b e prepare dt o prosecut e it s 

### applicatio n a t die tim e i t i s filed

. We note tha

t th e applicant' s reques t

ha s bee n pendin g fo r ove r 2 years , an dtha

t th e applicatio n remain s materiall y deficient

. Whil

e w e ar e willin g t o work

with applicant s i n th e certificatio n proces s and , wher e warranted , allo w additional tim e t o fil e information , w e canno t allo w application s t o remai n pendin g indefinitely , particularl y wher e applicant s ar e non-responsiv e t o ou r request s for

information

. Processin g an d maintainin g incomplet e application s delays th e Department' s abilit y t o proces s applications fro m companie s tha t

hav e prepare dcomplet e filing s an dar e prepare dt o complet e th e step s necessar y t o commenc e operations

. I n ligh t of th e above , w e hav e decide dt o dismiss , withou t prejudice

. Sovereig n Air' s applicatio n 

### i n Docke t DOT-OST-2008-0285

. We invit e Sovereig n Ai

r t o refil e it s applicatio n when i

t i s full y prepare dt

o prosecut e its application

.ACCORDINGLY , Actin g unde r authorit y assigne db y th e Departmen t i n it s regulations , 1 4 CF R385.12 : 1

. W e dismiss , withou t

prejudice , th e applicatio n file db y Sovereig n Air, Inc

. i n Docke t DOT

OST-2008-028 5 for

acommute r

ai r carrie r authorization

. 2

. W e wil l serv e acop y o f thi s orde r

o n th e person s liste di n Attachmen t A

. Person s entitle dt o petitio n th e Departmen t fo r revie w o f

thi s orde r

unde r th e Department' s Regulations , 1 4 CF R385.30 , ma y fil e thei r petition s withi n 1 0 day s o f th e servic e dat e o f

thi s order

. Thi s orde r

shal l becom e effectiv e an dbecom e th e final actio n o f th e Departmen t

of Transportatio n upo n expiratio n o f th e above perio dunles s withi n suc h perio dapetitio n for revie w i s file do r

th e Departmen t

give s notic e tha t

i t wil l revie w thi s orde r

o n it s ow n motion

. By :

TOD D M

. HOMA N Directo r Offic e o f Aviatio n Analysi s

An electroni c versio n o f

thi s documen t

i s availabl e o n th e Worl dWid e We b a t http://www

. resulations

. so v

### SERVIC E LIS T FO R SOVEREIG N AIR , INC

. Attachmen t A

MS SANDR A AN N POITR A 105 MAI N STREE T P O BO X 240 BELCOUR T NORT H DAKOT A 5831 6 M RJO N PAYN E CHffi FFINANCIA L OFHCE R SOVEREIG N AI RIN C 4 8 CHAMPION S RU N SA N ANTONI O T X 7825 8 M RPETE RLYNC H ASS T CHIE FCOUNSE L FO RENFORCEMEN T (AGC-300 ) FEDERA L AVIATIO N ADMINISTRATIO N 80 0 INDEPENDENC E AV E S W WASHINGTO N D C 2059 1

M RBERNAR D STANKU S RTS-4 2 OFHC E O FAIRLIN E INFORMATIO N DOT/RSPA/BT S E-3 6 120 0 NEWJERSE Y AV E S E WASHINGTO N D C 2059 0 M RWILLIA M J WEBE R(AFS-900 ) CERTIFICATIO N SECTIO N MANAGE R FEDERA L AVIATIO N ADMINISTRATIO N 4500 5 AVL\TIO N DRIV E SUIT E 13 1 DULLE S V A 2016 6 M RCLA Y MORIT Z OFnC E O FAIRLIN E INFORMATIO N DOT/RSPA/BT S E-3 6 120 0 NE WJERSE Y AV E S E WASHINGTO N D C 2059 0