Order 2013

- 7

- 12

Served: September 12

, 2013

UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 12 t h day of July , 20 13

Application of

NATIONAL AIR CARGO GROUP, INC.
d/b/a NATIONAL AIRLINES

f or an amended certificate of public convenience and necessity under 49 U.S.C. 41 102 to engage in foreign

scheduled air transportation of persons, property

, and

mail Docket DOT

- OST

- 20 12

- 0204

ORDER ISSUING FOREIGN CERTIFICATE

By Order 2013

- 4

- 12 , issued April 15 , 2013 , we directed all interested persons to show cause why

we should not make final the tentative findings and conclusions stated there in and issue an

amended certificate of public convenience and necessity to National Air Cargo Group, Inc. d/b/a National Airlines (“National Airlines”) authorizing it to engage in foreign scheduled air transportation of persons, property, and mail

, b etween a poin t or points in the United States, a point or points in the United Arab Emirates and beyond to a point or points in Afghanistan

.

Interested persons were given 3 days to file objections to the order.

No objections to the show cause order were received.

On April 29, 2013, a National Airlines B747 cargo aircraft crashed after takeoff from Bagram

Air Field in Afghanistan with seven crew fatalities. The Afghanistan Ministry of Transportation

and Commercial Aviation i s investigating the accident with assistance from the National Transportation Safety Board (“NTSB”) and the Federal Aviation Adminis tration (“FAA”).

The FAA has advised us that

, while the investigation related to the National Airlines accident

remain s open and ongoing, FAA’s certification activities for the air carrier’s additional foreign scheduled passenger operations are continuing. Under these circumstances, and given the Department’s ability to review a carrier’s continuing fitness under 49 U.S.C. 41110(e) should the need arise, we have decided to finalize our order to show cause. In doing so, we note that National Airlines’ authority will not become effective until the air carrier has fulfilled all of the requirements for effectiveness as set forth in the terms and conditions attac hed to its certificate.2

Among other things, this includes (1) our receipt of evidence that National Airlines has been certificated by the FAA to engage in foreign scheduled passenger operations, (2) evidence of liability insurance coverage that meets the requirements of section 205.5(b) of our rules, (3) a statement of changes it may have undergone since its fitness was examined, and (4) evidence that National Airlines continues to have adequate financial resources available to it.

ACCORDINGLY

,

1. We find that National Air Cargo Group, Inc. d/b/a/ National Airlines, is fit, willing, and able to engage in foreign scheduled air transportation of persons, property, and mail, subject to

conditions.

2. We issue an amended certificate of public convenience and necessity to National Air Cargo Group, Inc. d/b/a Natio nal Airlines authorizing it to engage in foreign scheduled air transportation of persons, property, and mail

, between a point or points in the United States, a point or points in the United Arab Emirat es and beyond to a point or points in Afghanistan

.

3. Unless disapproved by the President of the United States under section 41307 of the Transportation Code, this order shall become effective on the 61 st day after its submission for

section 41307 review

, o r upon the date of receipt of advice from the President or his designee under Executive Order 12597 and implementing regulations that he or she does not intend to disapprove the Department's order under that section, whichever occurs earlier. 1

4. We direct that

, should National Air Cargo Group, Inc. d/b/a National Airlines want to operate
more than 6 cargo aircraft and 2 passenger aircraft, it must first notify the Department in writing at least 45 days before the proposed change in operations and demonstrate its fitness

to cond uct such operations prior to commencement.

5. We direct that

, should National Air Cargo Group, Inc. d/b/a National Airlines wish to operate

its own aircraft between the United States and t he United Arab Emirates, it must first provide the Department with at least 45 days advance notice of such plans and provide updated information establishing its fitness for such expansion prior to commencement.

1 This order was submitted for section 41307 review on July 12, 2013. The 61 st day was September 11 , 2013

. Since the President’s designee did not disapprove this order before that date, it became effective on September 1 1

, 2013

.3

6. We direct National Air Cargo Group, Inc. d/ b/a National Airlines to submit to the Air Carrier

Fitness Division a first

- year progress report within 45 days following the end of its first year of scheduled operations. 2

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

By:

SUSAN L. KURLAND Assistant Secretary

for Aviation and 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 a ircraft, 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 fi nancial 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.

# Certificate of Public Convenience and Necessity for

Foreign Air Transportation

Route

908

This Certifies That



## NATIONAL AIR CARGO GROUP, INC.

d/b/a NATIONAL AIRLINES

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 foreign 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 201 3

- 7

- 12 Susan L. Kurland

On July 12, 2013 Assistant Secretary for Aviation Effective on (see attached) and International Affairs

### Terms, Conditions, and Limitations

NATIONAL AIR CARGO GROUP, INC.

d/b/a NATIONAL AIRLI NES

is authori zed to engage in foreign air transportation of persons, property, and mail:

Between a point or p oints in the United States

, a point or p oints in the United Arab Emirates and beyond to a point or points in Afghanistan

This authority is subject to the following provisions:

(1) The author ity to conduct scheduled operations under this certificate will not become effective until six (business) days after the Department has received the following documents; provided

, however , that the Depart ment 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 certifica te 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, financi al 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 and 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 incurred in three months of operations.

(2) Pending receipt of effective authority, the holder may not accept pay ment of any kind (i.e., cash, check, or credit card), issue tickets for the operations proposed under this certificate, or enter into contracts with charter operators, and any advertisement 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 regulations prescribed by the Department of Transportation for the services authorized by this certificate,

and with such other re asonable terms, conditions, and limitations as the Department of Transportation may prescribe in the public interest.2

(4) The holder shall at all times conduct its operations in accordance with all treaties and agreements between the United States and oth er countries, and the exercise of the privileges granted by this certificate is subject to compliance with such treaties and agreements and with any orders of the Department of Transportation issued under them or for the purpose of requiring compliance wit h them. To the extent that the holder has authority to serve more than one country or points in more than one country on the same route segment, that authority does not confer upon the holder any additional rights (including fifth

- freedom intermediate and /or beyond rights) in limited

- entry markets unless the Department has completed any necessary air carrier selection procedures to determine which air carrier(s) should be authorized to exercise such rights and has notified the foreign country(ies ) involved that any such selected air carrier(s) has the required authority. In such cases, the fact that the air carrier may hold authority to serve the countries (points) at issue on the same segment will not be considered as providing an y preference to the holder in an air carrier selection proceeding

.

(5) The exercise of the authority granted here is subject to the holder's first obtaining from the appropriate foreign governments such operating rights as may be necessary.

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

15 44. 

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

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

(8) The holder shall maintain in effect liability insuranc e coverage as required under

14 CFR Part 205. Failure to maintain such insura nce 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.

(9) S hould 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.

(10) The holder is authorized to conduct charter flights in interstate and/or foreign air transportation in accordance with the provisions of 14 CFR 212

.

(11 ) 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 operat ions under

 To assure compliance wi th 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

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 su spended under the terms of 14 CFR 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 cess ation, its authority shall be revoked for dormancy.Attachment A

SERVICE LIST FOR NATIONAL AIR CARGO INC d/b/a NATIONAL AIRLINES

MARK W ATWOOD

ELIZABETH J WADSWORTH

COZEN O’ CONNER

1627 EYE STREET NW SUITE 1100

WASHINGTON DC 20006 PAUL GRANDAHL

DALE MITCHELL

DARYL BENTLEY

EAST MICHIGAN FSDO

FEDERAL AVIATION ADMINISTRATION

MARK MAZOR

CERTIFICATION SECTION MANAGER

FAA AFS

- 900 45005 AVIATION DRIVE, SUITE 131

DULLES VA 20166 WILLIAM CHADWICK

OFFICE OF AIRLINE INFORMATION

DOT/RSPA/BTS E

- 36

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

PETER LYNCH AGC

- 300

ASST CHIEF COUNSEL FOR ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

LUTHER HIPPS

CHARLEY BEERS

BILL ROYAL

ORLANDO FSDO

FEDERAL AVIATION ADMINISTRATION OFFICE OF AIRLINE INFORMATION

DOT/RSPA/BTS E

- 36

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590