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 12thday of July, 2013 

Application of

 NATIONAL AIR CARGO GROUP, INC.

 d/b/a NATIONAL AIRLINES

for an amended certificate of public convenience and 

necessity under 49 U.S.C. 41102 to engage in foreign 

scheduled air transportation of persons, property, and 

mail

Docket DOT-OST-2012-0204 

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 therein 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, between a point 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 is investigating the accident with assistance from the National 

Transportation Safety Board (“NTSB”) and the Federal Aviation Administration (“FAA”).

The FAA has advised us that, while the investigation related to the National Airlines accident 

remains 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 attached 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 National 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 Emirates 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 61st day after its submission for 

section 41307 review, or 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 conduct 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 the 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 61st day was September 11, 2013. 

Since the President’s designee did not disapprove this order before that date, it became effective on September 11, 

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 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.
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, property, and mail.

This Certificate is not transferable without the approval of the Department of 

Transportation.

 By Direction of the Secretary

 

Issued by Order 2013-7-12 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 AIRLINES

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

Between a point or points in the United States, a point or points in the United Arab 

Emirates and beyond to a point or points in Afghanistan 

This authority is subject to the following provisions:

(1) The authority 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 Department 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 certificate 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, financial 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 payment 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 reasonable 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 other 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 with 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 any 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 

1544.

(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 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.

(9) Should 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 operations under 

 



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

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 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 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