Order 2014

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Served: January 9, 2014

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 9 th day of January, 2014

Application of

SCOTT AIR, LLC

d/b/a SCOTT AIR EXPRESS

d/b/a DESERT SPLASH ADVENTURES

for a certificate of public convenience and necessity under

49 U.S.C. § 41102 to engage in interstate scheduled air

transportation of persons, property, and mail Docket DOT

- OST

- 2012

- 0178

ORDER CONFIRMING ORAL ACTION AND

ISSUING EFFECTIVE CERTIFICATE

Summary

By this order, we confirm our oral action of August 27 , 2013 , making effective the

i nterstate certificate issued to Scott Air LLC d/b/a Island Air Express d/b/a Desert Splash

Adventures (“Scott Air ”) to engage in interstate scheduled air transportation of persons,

property, and mail using small aircraft

. 1 We reissue Scott Air’s air carrier certificate to

reflect its effective date.

Background

By Order 2013

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, issued August 19

, 2013 the Department found Scott Air fit willing,

and able to conduct interstate scheduled air transportation of property and mail using

small aircraft. The effectiveness of the authority in this certificate was condit ioned upon

the air carrier (1) receiving authority from the Federal Aviation Administration ( “ FAA ” )

authorizing such operations, (2) submitting evidence that it had obtained liability

insurance coverage meeting the requirements of Part 205 of the Departmen t’s rules, (3 ) a

1 “Small aircraft” is defined as any aircraft originally designed to have a maximum p assenger capacity

of 60 seats or less or a maximum payload capacity of 18,000 pounds or less.2

statement of any changes it had undergone in areas affecting its fitness subsequent to the

issuance date of the Show Cause Order in this case (Order 20 13

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financial information and evidence that the a ir ca r r ier st i ll h a d a v a i l a ble to it f unds

suf f i c ient to m ee t t he D e p a r t ment ’ s fin a n c ial fitness c rite r ia.

On August 22, 2013

, Scott Air provided evidence of its appropriate liability insurance

, a

c opy of its FAA Air Carrier Certificate and Operations Specifications authorizing it to

c onduct its proposed operations and a letter from the Arizona Business Bank dated

August 20, 2013

, indicating it had access to a $500,000 line

- of

- credit. Scott Air also

noted it had not undergone any changes that would affect its fitness. Additionally, Scott

Air requested that the Department waive the six

- day waiting period and make its

authority effective as soon as possible

.

B ased on our review of the information provided by Scott Air , we concluded that the air

carrier remained a U.S. citizen and was fit to commence its interstate scheduled

passenger operations . Moreover, our review of the insurance and FAA documentation

provi ded by Scott Air was satisfactory. Under the se circumstances, on August 27 , 2013,

we advised Scott Air via email that we would make its authority effective on that date.

By this order, we confirm our action of August 27 , 2013

, and reissue the air carrier’s

interstate certificate to reflect its effectiveness.

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

14 CFR 385.12:

1. We confirm our action of August 27 , 2013

, making t he interstate scheduled certifi cate

authority issued to Scott Air , LLC by Order 2013

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2. We direct Scott Air, LLC 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 c ertificated

flight operations using small aircraft

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2 The report shall include a description of the air carrier’s current operati ons (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 it s second year, current financial statements, and a listing of current senior management

and key technical personnel.3

3

. 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

# Certificate of Public Convenience and Necessity for

Interstate Air Transportation

This Certifies That



# SCOTT AIR

, LLC

(as reissued)



### 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, pro perty, and mail.

This Certificate is not transferable without the approval of the Department

of Transportation.

By Direction of the Secretary

Issued by Order 2014

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On January 9 , 2014 Director

Effective on August 27 , 2013 Office of Aviation AnalysisAttachment

* As reissued by Order 2014

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Terms, Conditions, and Limitations



## Scott Air, LLC

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 i s 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 reasonab le 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 Federal Aviat ion Administration (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 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 provisio ns of Subtitle VII of Title 49 of

the United States Code or the Department's regulations shall be sufficient grounds to revoke

this certificate.

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

transportation in acc ordance with the provisions of 14 CFR 212

.

(6) 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 Tra nsportation under that section.

* This certificate is being reissued to reflect its effective date.

∗ ∗ 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.2

(7) 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.

(8) Should the holder propose any substantial change in its ownership, management, or

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

CFR 204.5.

(9) In the event that the holder commences but subsequently ceases all operations for

which it was found “fit, willing and able,” its authority under this certificate shall be

suspended under the terms of 14 CFR 20 4.7 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 revoke d for dormancy.

( 10 ) T he holder ’ s authori t y i s l i mited to op e rat i ons p ursuant to Part 135 of t he F e d e ral

A v ia t ion R e gula t ion. In the eve n t that the holder wishes to ins t i t u te op e rat i ons t h at would

r e quire Part 1 21 ce rt i f

i c at i on from the FA A , it must fir s t be d e ter m ined fit for s u c h

op e rations

.Appendix A

SERVICE LIST FOR

SCOTT AIR, LLC

PIERRE MURPHY

ATTORNEY FOR SCOTT AIR

1200 NEW HAMPSHIRE AVE NW

SUITE 800

WASHINGTON DC 20036 MARK MAZOR

FAA

– AFS 900

45005 AVIATION DRIVE

SUITE 131

DULLES VA 20166

SCOTT VAN VALIN

SCOTT AIR

PO BOX 1174

CRAIG ALASKA 99921 PETER J LYNCH

ASSISTANT CHIEF COUNSEL FOR

ENFORCEMENT

FAA

– AGC 300

800 INDEPENDENCE AVENUE SE

WASHINGTON DC 20591

TROY MCCLANAHAN

PRINCIPAL OPERATIONS INSPECTOR

FAA

3032 VINTAGE PARK BOULEVARD

SUITE 106

JUNEAU ALASKA 99801 REGIONAL COUSEL AAL

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FEDERAL AVIATION ADMINISTRATION

ALASKAN REGION HEADQUARTERS

222 WEST 7TH AVENEU SUITE 14

ANCHORAGE ALASKA 99513

GARY GAROFALO

ISLAND AIRLINES LLC

GAROFALO GOERLICH & HAINBACH

1200 NEW HAMPSHIRE AVE NW

SUITE 800

WASHINGTON DC 20 0 36 OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS E

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1200 NEW JERSEY AVENUE

WASHINGTON DC 20590

MICHAEL CARNEY

KETCHIKAN INTERNATIONAL AIRPORT

1000 AIRPORT TERMINAL WAY

KETCHIKAN AK 99901 ROBERT SANFORD

PRESIDENT

REDEMPTION INC

D/B/A ISLAND AIR SERVICE

PO BOX 125

KODIAK AK 99615

ALLAN MENDELSOHN

HAWAII ISLAND AIR

COZEN OCONNOR

1627 I STREET NW

SUITE 1100

WASHINGTON DC 20006 TIM LACOUR

AIRPORT MANAGER

KLAWOCK AIRPORT

PO BOX 91

CRAIG AK 99921

MR HANK MYERS

PO BOX 7142

BELLEVUE WA 98008