Order 2010-10-21 

Served: October 27, 2010 

•^'-^iSof'-

UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Issued by the Department of Transportation 

on the 21^ day of October, 2010 

Fitness Determination of 

SOVEREIGN AIR, INC. 

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

Docket DOT-OST-2008-0285 

ORDER DISMISSING APPLICATION 

Summary 

By this order, we dismiss the application filed by Sovereign Air, Inc. ("Sovereign Air"), for 

authority to conduct scheduled passenger operations as a commuter air carrier. 

Background 

On September 12, 2008, Sovereign Air, a corporation formed pursuant to the laws of the State of 

Minnesota and headquartered in Belcourt, North Dakota, filed an application in Docket 

DOT-OST-2008-0285, for authority to conduct scheduled passenger operations as a commuter 

air carrier pursuant to section of Title 49 of the United States Code ("the Statute"). The applicant 

initially proposed to provide scheduled commuter operations 5 times weekly between Minot, 

North Dakota, and Williston, North Dakota, using a 3-seat Cessna 172. 

By letter dated October 14, 2008, the Department requested additional information and/or 

clarification from Sovereign Air in order to fully process its application, including, among other 

things, the compliance information required by 204.3 (I), (m), (o), and (p) of our rules 

(14 CFR 204.3) for all of its key personnel,'' a complete narrative history detailing the 

scope of its historical and current operations, a first-year operating expense forecast 

that conforms to section 204.3(t)(2) of our rules, and third-party verification of all lines-ofcredit and all cash deposits available to support Sovereign Air's proposed commuter operations. 

The applicant provided some information in response to our request for additional information 

• Section 204.2(i) of or rules defines Key Personnel as: the directors, president, chief 

executive officer, chief operating officer, all vice presidents, the directors or supervisors of 

operations, maintenance, and finance, and the chief pilot of the applicant or air carrier, as well 

as any part-time or full-time advisors or consultants to the management of the applicant or air 

carrier. 
on October 21, 2008, and at this same time, requested that certain of the information it provided 

be withheld from public disclosure pursuant to section 302.12 of our Procedural Regulations. 

By letter dated January 14, 2009, the Department informed the applicant that certain information 

for which it requested confidentiality did not warrant such treatment and directed Sovereign Air 

to file this information in the public record within five business days should the applicant choose 

not to file a petition for reconsideration. No action was taken by Sovereign Air. 

By letter dated January 30, 2009, we reminded Sovereign Air that that the information for which 

we denied confidential treatment had not been submitted in the public record, and notified the 

applicant that unless this material was filed in the public record within five business days, we 

would dismiss its application without further notice. 

On February 13, 2009, Jon Payne, the air carrier's Chief Financial Officer ("CFO"), contacted 

the Department's staff and requested an extension of time to file the information that had been 

denied confidential treatment. Mr. Payne stated that Sovereign Air had just received our January 

14 letter due to weather delaying delivery of mail. We therefore granted the applicant a further 

extension until February 20, 2009, to file the information denied confidential treatment. 

On February 20, 2009, Sovereign Air made a filing in the public record. However, instead of 

filing the information that had been denied confidential treatment as directed, the company 

provided an amended response to our October 14, 2008, request for information. 

On April 10, 2009, we reminded Sovereign Air that it had yet to provide the information for 

which the Department denied confidential treatment as directed by our January 14 letter. At this 

same time, we informed the applicant that it had also failed to completely address the questions 

posed in our October 14 information request. Specifically, we informed Sovereign Air that it 

had failed to provide, among other things, a complete narrative history detailing the scope of its 

historical and current operations; complete compliance information for its key personnel, as 

required by sections 204.3 (1), (m), (o), and (p) of our rules (14 CFR 204.3); and a first-year 

operating expense forecast that conforms to section 204.3(t)(2) of our rules. We also noted that, 

although Sovereign Air identified Mr. Robert B. Kams as a member of its key personnel in a 

meeting with Department staff on October 21, 2008, and provided the Department's staff with a 

Notice of Discharge, which indicated Mr. Kams as being recently released from serving a 

sentence for a prior felony conviction, no information regarding Mr. Kams' employment or 

compliance background was included in Sovereign Air's application or in its supplemental or 

confidential filings made in response to our October 14 information request. 

On April 17, 2009, Sovereign Air responded to our April 10 request for information. However, 

the applicant again failed to provide an adequate description of the scope of its historical and 

current operations, complete compliance history information for Mr. Kams, and a first-year 

forecast in the format required by section 204.3(t)(2) of our mles. 

On January 22, and Febmary 8, 2010, Sovereign Air made additional filings in the public record 

in support of its request for conmiuter authority. In its January 22 filing. Sovereign Air amended 

its service proposal, stating that in addition to its proposed commuter operations between Minot, 
North Dakota, and Williston, North Dakota,, the applicant now intends to operate four round 

trips per day between Salina, Kansas, and Kansas City, Missouri, using a King Air 200 or King 

Air 350. In its Febmary 8 filing, Sovereign Air provided a letter from Nvision Partners stating 

that it was willing to provide financing for Sovereign Air's proposed commuter operations. 

However, in each case, the applicant's filings were inadequately supported. For example, 

although Sovereign Air had made significant changes to its operating proposal, it did not provide 

a revised first-year operating forecast or a revised pre-operating expense forecast. In addition, 

Sovereign Air provided inadequate information regarding the proposed funding by Nvision 

Partners, such as the type of funding, terms of repayment, or information demonstrating Nvision 

Partners' financial solvency, all of which are necessary to assess Sovereign Air's fitness to 

conduct its proposed commuter operations. 

By letter dated March 3, 2010, the Department again requested information and/or clarification 

from Sovereign Air in order to fully process its application, including, among other things, 

complete compliance information for Mr. Robert Kams, a description of Sovereign Air's current 

and historical operations detailing the number of flight hours the applicant operates per month, a 

revised first-year operating expense forecast that conforms to section 204.3(t)(2) of our 

rules and third-party verification of all lines-of-credit and all cash deposits available to support 

Sovereign Air's proposed commuter operations. 

On April 2, 2010, Sovereign Air responded to the Department's request for information. 

However, Sovereign Air again failed to respond completely to the Department's information 

request. For example, although Sovereign Air indicated that Mr. Kams was the subject of prior 

felony charges, the applicant failed to provide any description of the prior felony charges against 

him. In addition. Sovereign Air also failed to provide adequate information describing the scope 

of its current and historical operations or a revised first-year operating expense forecast that 

conforms to section 204.3(t)(2) of our mles. In addition, although Sovereign Air stated that 

evidence of lines-of-credit and cash deposits available to support its proposed operations would 

be forthcoming, no such information has been provided. 

Decision 

The Department fully expects an applicant for commuter authority to be prepared to prosecute its 

application at die time it is filed. We note that the applicant's request has been pending 

for over 2 years, and that the application remains materially deficient. While we are 

willing to work with applicants in the certification process and, where warranted, allow 

additional time to file information, we cannot allow applications to remain pending indefinitely, 

particularly where applicants are non-responsive to our requests for information. Processing and 

maintaining incomplete applications delays the Department's ability to process applications from 

companies that have prepared complete filings and are prepared to complete the steps necessary 

to commence operations. 

In light of the above, we have decided to dismiss, without prejudice. Sovereign Air's application 

in Docket DOT-OST-2008-0285. We invite Sovereign Air to refile its application when it is 

fully prepared to prosecute its application. 
ACCORDINGLY, Acting under authority assigned by the Department in its regulations, 

14 CFR 385.12: 

1. We dismiss, without prejudice, the application filed by Sovereign Air, Inc. in Docket DOTOST-2008-0285 for a commuter air carrier authorization. 

2. 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 the Department's 

Regulations, 14 CFR 385.30, may file their petitions within 10 days of the service date of this 

order. 

This order shall become effective and become the final action of the Department of 

Transportation upon expiration of the above period unless within such period a petition for 

review is filed or the Department gives notice that it will review this order on its own motion. 

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. resulations. sov 
SERVICE LIST FOR 

SOVEREIGN AIR, INC. 

Attachment A 

MS SANDRA ANN POITRA 

105 MAIN STREET 

PO BOX 240 

BELCOURT NORTH DAKOTA 58316 

MR JON PAYNE 

CHffiF FINANCIAL OFHCER 

SOVEREIGN AIR INC 

48 CHAMPIONS RUN 

SAN ANTONIO TX 78258 

MR PETER LYNCH 

ASST CHIEF COUNSEL 

FOR ENFORCEMENT (AGC-300) 

FEDERAL AVIATION ADMINISTRATION 

800 INDEPENDENCE AVE SW 

WASHINGTON DC 20591 

MR BERNARD STANKUS RTS-42 

OFHCE OF AIRLINE INFORMATION 

DOT/RSPA/BTS E-36 

1200 NEW JERSEY AVE SE 

WASHINGTON DC 20590 

MR WILLIAM J WEBER (AFS-900) 

CERTIFICATION SECTION MANAGER 

FEDERAL AVIATION ADMINISTRATION 

45005 AVL\TION DRIVE SUITE 131 

DULLES VA 20166 

MR CLAY MORITZ 

OFnCE OF AIRLINE INFORMATION 

DOT/RSPA/BTS E-36 

1200 NEW JERSEY AVE SE 

WASHINGTON DC 20590