Order 2013-11-21

Served: November 25, 2013

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 25 day of November, 2013

Fitness Determination of

 CORPORATE FLIGHT MANAGEMENT, INC. 

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

Docket DOT-OST-2013-0061

ORDER TO SHOW CAUSE

PROPOSING ISSUANCE OF COMMUTER AIR CARRIER AUTHORITY

Summary

By this order, we tentatively find that Corporate Flight Management, Inc. (“CFM”), is a citizen 

of the United States and is fit, willing, and able to conduct scheduled passenger operations as a 

commuter air carrier.

Background

Section 41738 of Title 49 of the United States Code (“the Statute”) and section 298.21(d) of the 

Department’s Aviation Economic Regulations direct us to determine whether companies 

proposing to provide scheduled passenger service as commuter air carriers are “fit, willing, and 

able to perform the service,” and to ensure that all operations relating to this service conform to 

the safety standards established by the Federal Aviation Administration (“FAA”). In making 

fitness findings, the Department uses a three-part test that reconciles the Airline Deregulation 

Act’s liberal entry policy with Congress’ concern for operational safety and consumer protection. 

The three areas of inquiry that must be addressed in order to determine an air carrier’s fitness are 

whether the applicant: (1) will have the managerial skills and technical ability to conduct the 

proposed operations, (2) has sufficient financial resources to commence the operations proposed 

without posing an undue risk to consumers or their funds, and (3) will comply with the Statute 

and regulations imposed by federal and state agencies. We must also determine that the 

applicant is a U.S. citizen. 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION
2

On March 22, 2013, CFM filed an application in Docket DOT-OST-2013-0061 for authority to 

provide scheduled passenger operations as a commuter air carrier pursuant to section 41738 of 

the Statute. CFM accompanied its application with the fitness information required by section 

204.3 of our regulations.1 

No answers were filed to the application and no other issues regarding the applicant have come 

to our attention. Under these circumstances, we propose to decide the issue of the applicant's 

fitness on the basis of the written record. Upon review of the information in the application and 

the safety and compliance information on the air carrier received from the FAA, we tentatively 

conclude that CFM is a U.S. citizen and has met the fitness test to conduct commuter operations. 

We will, however, give interested parties an opportunity to show cause why we should not adopt 

as final our tentative determination that CFM is fit, willing, and able to provide commuter 

service. 

FITNESS

The Company

Based in Smyrna, Tennessee, CFM was incorporated on July 26, 1982, under the laws of the 

State of Tennessee.

2

 The applicant currently operates as an air taxi under Part 298 of the 

Department’s rules and holds a Part 135 certificate from the FAA using a fleet of 24 small 

aircraft ranging from 5-seat Embraer Phenom 100s to 30-Seat Jetstream 4101s.3 In addition to 

its air taxi operations, CFM provides aircraft management services, fixed based operations, 

aircraft maintenance services under 14 CFR Part 145, and aircraft sales and related services. 

CFM also provides four round trips per week between Manistee, Michigan, and Chicago 

Midway Airport pursuant to a public charter agreement with Public Charters, Inc. CFM is owned 

by CFM Holdings, Inc. (79.4 percent), Executive Group Holdings, Inc. (2.56 percent), and 15 

individuals (17.97 percent), all of whom are U.S. citizens.

4

Managerial Competence

The following individuals serve on CFM’s Board of Directors:

Mr. James Allen Howell 

Mr. Charles Howell IV

Mr. David Augustin

 

1

 CFM filed information supplementing its application on June 12 and 26, 2013, and July 23 and 30, 2013.

2

From 1982 to 1986, CFM provided contract flight department and aircraft management services to owners of 

aircraft operated under 14 CFR Part 91. In 1984, CFM began operating as a fixed based operator (FBO) and also 

became certificated under 14 CFR Part 145 as a repair station. In 1986, CFM commenced operations as an air taxi 

under 14 CFR Part 298.

In 1995, DOT found CFM fit as a commuter air carrier and the company received Operations Specifications 

under 14 CFR Part 121 to conduct scheduled passenger operations from the FAA. From 1996 to 2001, the company 

held certificates under Part 135 and Part 121. In 2001, CFM formed Corporate Airlines, Inc. (Corporate Airlines), 

as a wholly-owned subsidiary and transferred to it the Part 121 commuter operations. CFM subsequently divested 

Corporate Airlines and retained its air taxi operations and Part 135 certificate.

3

Small aircraft is defined as any aircraft originally designed to have a maximum passenger capacity of 60 seats

or less or a payload capacity of no more than 18,000 pounds. 

4 CFM’s ownership is further discussed under the CITIZENSHIP section of this order.
3

Mr. Tom Chappell

Mr. John Couri

Mr. Leon Custers

Mr. James Allen Howell co-founded CFM in July 1982, along with Mr. Charles Howell IV and 

Mr. David Augustin. He initially served as the company’s Secretary, Treasurer, and Director of 

Marketing and Sales. From September 1996 to December 1998, he served as the General 

Manager of Corporate Airlines.5 Then, in January 1998, he became CFM’s President, Chief 

Executive Officer (“CEO”), Secretary, and Treasurer. He also serves on CFM’s Board of 

Directors.

Mr. Charles Howell IV is a member of CFM’s Board of Directors. In 1985, Mr. Howell became 

the General Manager of CFM and later became President of the company in 1986. He served as 

President until 1996 when he co-founded Corporate Airlines, Inc., and became the President and 

CEO of that company. Mr. Howell left Corporate Airlines, Inc., in 2002 to join Great Lakes 

Airlines, Inc., where he currently serves as the CEO. 

Mr. David Augustin serves as Chairman of CFM’s Board of Directors. He has worked with the 

Corporate Flight family of companies since 1983. Over the years, he has held various positions 

within the company, including FBO Manager, Parts Manager, and Maintenance Manager. From 

1997-2012, he served as President of CFM. Mr. Augustin holds a Commercial Pilot certificate, 

as well as an Airframe and Powerplant mechanic certificate.

Mr. Tom Chappell, a CFM Board member, has been Chairman and CEO of Chappell, Smith & 

Associates, the parent company of CS&A Insurance, since 1981. CS&A Insurance provides 

aviation insurance, aviation risk management, aviation safety management, and FBO business 

development services.

Mr. John Couri is also a CFM Board member. He is President of the Couri Foundation, Inc., 

Founders Hall Foundation, Inc., the Hammon Street Senior Center Foundation, Inc., and serves 

on several other corporate advisory and local non-profit Boards. Mr. Couri was a co-founder of 

Duty Free International, Inc., in 1983, and served as its President and CEO until October 1993, 

Board Chairman until December 1994, and company Consultant until December 1999. In May 

2004, Mr. Couri became Chairman of the Board of Trustees at Syracuse University. He served 

in that capacity until May 2008 and continues as a Life Board Member.

Mr. Leon Custers is CFM’s Chief Operating Officer (“COO”) and also serves on the Board of 

Directors. Before becoming the COO in October 2010, he served as the Vice President of 

Maintenance from April 2002 to October 2010. Prior to that, he was the Chief Pilot from August 

1997 to April 2002. Before coming to CFM, Mr. Custers held several Flight Instructor positions 

at various companies, including Howell Enterprises, Inc. (1997-1999), Falconhead FBO (1995-

1997), and Metropolitan Helicopters, Inc. (1996). Mr. Custers is a certificated Airline Transport 

Pilot.

 

5

See Fn. 2 for more about the relationship between CFM and Corporate Flight, Inc.
4

Additionally, the following individuals serve as CFM’s key management and technical 

personnel. 

Mr. James Allen Howell – President, CEO, Secretary, and Treasurer

Mr. Leon Custers – Chief Operating Officer

Mr. Douglas Cate – Chief Financial Officer

Mr. Ryan Donahue – Vice President of Maintenance

Mr. Mark Stear – Vice President of Sales and Marketing

Mr. Dwayne McMurry – Director of Operations

Mr. Allen Peralta – Director of Maintenance

Mr. Ronald Barnum – Director of Safety

Mr. Stanley White – Chief Inspector/Director of Quality Assurance

Mr. Jack Hart – Chief Pilot

All of the individuals listed above are U.S. citizens. 

Mr. Douglas Cate has served as CFM’s Chief Financial Officer since 2006. Before coming to 

CFM, he held several positions within the banking industry, including Senior Vice PresidentCommercial Lending at Regions Bank (2003-2006), Vice President – Commercial Lending at 

NBC Bank (2002-2003), Regional Manager at Calvary Bank (1996-2003), Assistant Vice 

President at SunTrust Bank (1989-1996), and Loan Officer at Heritage Federal Savings and Loan 

1987-1989).

Mr. Ryan Donahue became CFM’s Vice President of Maintenance in April 2012. Previously, he 

served as the company’s Aviation Service Manager from March 2007 to April 2012. He has 

been simultaneously serving as the Director of Maintenance for Harmony Air, LLC since 

February 2008. Before joining CFM, he served as a Lead Technician and Manager of Stores for 

Leading Edge Aviation Services from June 2002 to March 2007. Mr. Donahue is an Airframe 

and Powerplant mechanic.

Mr. Mark Stear joined CFM as the Vice President of Sales and Marketing in 2009. Before 

coming to CFM, he served as Sales Manager for Embraer Executive Jets (2005-2009), Citation 

Shares (2003-2005), and Cessna Aircraft Company (1999-2003). Prior to that, he was a Sales 

Administrator for Bombardier Learjet (1995-1999) and a Marketing Manager for Grimes 

Aerospace (1994-1995).

Mr. Dwayne McMurry became CFM’s Director of Operations in February 1988. He initially

joined CFM in 1983 and worked there for a year before taking a position as a pilot for D.A.C.S. 

Aviation Services (1986-1988). He also worked as a pilot for Silverline, LTD (1985-1986) and 

Tennessee Airways (1984-1985). Mr. McMurry is an Airline Transport Pilot.

Mr. Allen Peralta has been CFM’s Director of Maintenance since 2001. He initially joined the 

company as a Shop Supervisor in 1988. In 1997, he became an Inspector in addition to working 

as Shop Supervisor. In 1999, Mr. Peralta became CFM’s General Manager until 2000. In 2000, 

he became Chief Inspector until accepting his current position in 2001. Before coming to CFM, 

Mr. Peralta worked as an Aircraft Technician for Nashville Jet Center (1980-1988), Galaxy
5

Corporation (1978-1990), Clinical Laboratory (1977-1978), and Big Brother Aircraft (1972-

1977). 

Mr. Ronald Barnum has been the Director of Safety at CFM since 2007. He initially joined 

CFM in 1991 as a pilot and Line Service Manager. He worked for the CFM until 1998 when he 

became a Computer Operator for Laboratory Corporation of America (1998-1999). From 1999 

to 2007, he was the company’s Line Service Training Manager. Mr. Barnum is a pilot.

Mr. Stanley White became CFM’s Chief Inspector/Director of Quality Assurance in 2007. 

Before that, he had been an Inspection Supervisor Trainee since 2006. Before joining CFM, 

Mr. White was a Maintenance Manager and the Director of Maintenance for RegionsAir 

(formerly Corporate Airlines) from 1996-2006. Prior to that, Mr. White worked in aircraft 

maintenance for American Airlines (1996) and American Eagle (1989-1996). Mr. White is an

Airframe and Powerplant mechanic.

Mr. Jack Hart, an Airline Transport Pilot with more than 9,000 hours logged, has served as 

CFM’s Chief Pilot since 2007. Before coming to CFM, he worked as a pilot for Capital Cargo 

International (2006-2007), ExpressNet (2004-2006), TransMeridian Airlines (2003-2004), 

Southeast Airlines (2003-2003), and Express One International, Inc. (1997-2002). 

In view of the experience and background of the applicant’s key personnel, and the fact that they 

are currently conducting operations similar to those proposed, we tentatively conclude that CFM

has demonstrated that it has the management skills and technical ability to conduct its proposed 

scheduled service operations using small equipment.

6

Operating Proposal and Financial Condition

In its application for commuter authority, CFM states that in October 2012, it entered into an 

aircraft charter contract with Public Charters, Inc. (“PCI”), to provide four round trip flights per 

week between Manistee, Michigan (MBL) and Chicago Midway Airport (MDW).7 CFM states 

that it currently operates these flights on Thursday, Friday, Saturday, and Sunday of each week. 

CFM adds that these flights are conducted as public charter flights under 14 CFR Part 380 with 

CFM as the direct air carrier and PCI as the indirect air carrier.8 According to CFM, PCI 

receives funding for the operation from the Manistee Blacker Airport Authority (MBAA), which 

receives funding from DOT under an Alternate Essential Air Service (EAS) grant.9

 

6

Before authorizing an air carrier to conduct air transportation operations, the FAA also evaluates certain of the 

air carrier’s key personnel with respect to the minimum qualifications for those positions as prescribed in the Federal 

Aviation Regulations. The FAA’s evaluation of these key personnel provides an added practical and in-person test 

of the skills and technical ability of these individuals. The FAA has advised us that CFM’s management personnel 

are qualified and acceptable for their positions.

7 The October agreement ended on February 15, 2013. Therefore, on February 16, 2013, CFM entered into 

another agreement with PCI for the same services, replacing the October 2012 agreement.

8

PCI has filed a public charter prospectus in connection with this application.

9

In April 2012, PCI was selected by MBAA and the community of Manistee/Ludington, Michigan, to provide 

Alternate EAS on the proposed route. See Docket DOT-OST-1996-1711. Under the Alternate EAS grant, MBAA 

receives program funds and controls their disbursement to PCI. PCI is responsible for contracting with and making 

payments to the direct air carrier providing the air transportation.
6

CFM states that its current arrangement does not meet market demands and that MBAA would 

like CFM to perform daily flights. However, under CFM’s existing economic authority as an air 

taxi, the air carrier is limited to four weekly roundtrip flights in a market. Thus, CFM is 

requesting commuter air carrier authority to allow the air carrier to conduct 7 round trip flights 

per week in this market. CFM notes that all of the proposed flights will be marketed by PCI and 

operated as public charter flights.

In light of its service proposal, CFM contends that it will incur no material start-up costs for the 

proposed increase in service. CFM states that MBAA has already paid CFM $5,000 to base its 

aircraft at MBL. CFM also argues that PCI bears the cost of establishing and maintaining the 

base of operations. CFM states that the air carrier is able to accommodate the increased number 

of flights without adding aircraft, operations and maintenance personnel, or infrastructure. Thus, 

CFM contends that the only expenses the air carrier will incur are directly related to the number 

hours of increased aircraft utilization. CFM estimates that it operates approximately 383 flight 

hours per year in its existing MBL-MDW operations. The air carrier expects the proposed three 

additional round trip flights to add nearly 289 flight hours, bringing total aircraft utilization to 

672 flight hours.

CFM provided a forecast of its first-year expenses for the proposed commuter operations. The 

air carrier divided its projected costs into two categories: those to be paid by PCI and those to be 

paid by CFM. CFM expects the first year of commuter operation expenses to total $680,550, of 

which, $154,044 are to be paid by CFM and $526,505 are to be paid by PCI. We have reviewed 

these expense projections and find them to be reasonable.

Although the applicant notes that $526,505 of the projected first-year expenses will be paid by 

PCI, for the purposes of determining the air carrier’s financial fitness to conduct its proposed 

scheduled service, the Department will base its financial fitness test on the total operating 

expenses associated with the proposed commuter operations. Thus, we estimate that CFM will 

need approximately $170,138 to meet the Department’s financial fitness criteria.

10

In support of its ability to fund its proposed commuter operations, CFM submitted current and 

historical financial statements. Specifically, the air carrier provided its current income statement 

for the 8-month period ending April 30, 2013, which showed CFM reporting a net loss of 

$149,911, on operating revenues of $21.1 million. For the 12-months ended August 31, 2012, 

2011, and 2010, CFM reported net income (loss) of $398,570, ($8,057), and ($420,046), 

respectively, on operating revenues $34.9, million, $30.3 million, and $22.9 million, 

respectively. Additionally, the air carrier provided a balance sheet as of April 30, 2013, that 

reflected working capital of $4.4 million and total equity of $2.6 million. 

In light of its positive working capital, it appears that CFM has available funds adequate to cover 

the financial requirements for its commuter operations. Therefore, we tentatively conclude that 

 

10

 To meet the Department’s financial fitness criteria, an applicant should have access to financial resources 

sufficient to cover its pre-operating expenses and the expenses that are reasonably projected to be incurred during 

three months of operations. In calculating available resources, projected revenues may not be used.
7

CFM will have access to resources sufficient to allow it to commence the proposed commuter 

operations without posing an undue risk to consumers or their funds. However, we will require 

that the company provide updated financial information showing that CFM continues to have 

funds sufficient to meet our financial fitness criteria available to it prior to making its commuter 

authorization effective. 

Compliance Disposition 

CFM appears to have a favorable compliance disposition. Our search of the Department’s 

enforcement files found no record or problems involving this company, its owners, or its key 

personnel. There are no FAA enforcement actions pending against the air carrier and it has not 

had any accidents or incidents since its inception. Further, the FAA reports that CFM is overall a 

safe operating air carrier with an extremely cooperative management team, and the agency has 

no concerns about CFM’s proposed expanded operations. 

The applicant states that there are no actions or outstanding judgments against it, its owners, or 

its key personnel, nor have any charges of unfair, deceptive or anti-competitive business 

practices, or of fraud, felony or antitrust violations been brought against any of these parties in 

the past ten years. There have been no formal complaints filed in the past five years or orders 

issued in the past ten years finding CFM, its key personnel, or persons having a substantial 

interest in it to be in violation of the Statute or of the Federal Aviation Regulations. 

Based on the above, we tentatively conclude that CFM has the proper regard for the laws, rules 

and regulations governing its services to ensure that its aircraft and operations will conform to 

applicable safety standards and that acceptable consumer relations practices will be followed.

CITIZENSHIP

49 U.S.C. §41102 requires that authority to engage in air transportation be held only by citizens 

of the United States as defined in 49 U.S.C. §40102(a)(15). That section requires that the 

president and two-thirds of the Board of Directors and other managing officers be U.S. citizens,

that at least 75 percent of the outstanding voting interest be owned by U.S. citizens, and that the 

air carrier is under the actual control of U.S. citizens.

As noted earlier, CFM is owned by CFM Holdings, Inc. (“CFMH”) (79.4 percent), Executive

Group Holdings, Inc. (“EGH”) (2.56 percent), and 15 individuals ( 17.97 percent), all of whom 

are U.S. citizens. CFMH is owned by Mr. James Allen Howell (38 percent), Mr. David Augustin 

(38 percent), and Mr. Charles Howell IV (24 percent), all U.S. citizens. EGH is wholly-owned 

by Couri and Company, LLC, which in turn, is owned by Mr. John Couri and Mr. Christopher 

Couri, both U.S. citizens.11 Further, all of CFM’s key management and technical personnel are 

U.S. citizens. Moreover, CFM has provided an affidavit attesting that it is a citizen of the United 

States within the meaning of the Statute and that it is actually controlled by U.S. citizens. Our 

review of the applicant has uncovered no reason to suggest that control of CFM rests with nonU.S. citizens.

 

11 Mr. John Couri is a member of CFM’s Board of Directors.
8

Based on the above, we tentatively conclude that CFM is a citizen of the United States and is fit, 

willing, and able to provide the limited scheduled passenger service it proposes as a commuter 

air carrier.

OBJECTIONS

We will give interested persons 14 days following the service date of this order to show cause 

why the tentative findings and conclusions set forth here should not be made final; answers to 

objections will be due within 7 days thereafter. We expect such persons to direct their 

objections, if any, to the application and points at issue and to support such objections with 

detailed economic analyses. If an oral evidentiary hearing or discovery procedures are 

requested, the objector should state in detail why such a hearing or discovery is considered 

necessary, and what material issues of decisional fact the objector would expect to establish 

through a hearing or discovery that cannot be established in written pleadings. The objector 

should consider whether discovery procedures alone would be sufficient to resolve material 

issues of decisional fact. If so, the type of procedure should be specified (See Part 302, Rules 19 

and 20); if not, the reasons why not should be explained. We will not entertain general, vague, 

or unsupported objections. If no substantive objections are filed, we will issue an order that will 

make final our tentative findings and conclusions with respect to CFM’s fitness and commuter 

air carrier authorization.

EFFECTIVE COMMUTER AUTHORIZATION

CONDITIONS AND LIMITATIONS

In the event that we find CFM fit, willing, and able to conduct the proposed commuter service, 

we will issue to it a Commuter Air Carrier Authorization. However, that authorization will not 

become effective until the air carrier has fulfilled all requirements for effectiveness as set forth in 

the Terms, Conditions, and Limitations attached to its authorization.12 Among other things, this 

includes our receipt of evidence that the air carrier has been issued Operations Specifications by 

the FAA authorizing scheduled passenger service under Part 135 of the Federal Aviation 

Regulations, evidence of liability insurance coverage that meets the requirements of Part 205 of 

our rules for commuter air carriers, and evidence that CFM continues to have adequate financial 

resources available to it to meet our financial fitness criteria. 

Given the relatively limited scope of CFM’s proposed operations, we propose to limit any 

authority issued to the applicant to operations conducted under Part 135. Should CFM

subsequently desire to acquire and operate larger aircraft that would require certification from 

the FAA under Part 121 or certificate authority from the Department under 49 U.S.C. §41102, it 

must first be determined fit for such operations.13

Further, we remind CFM of the requirements of 49 U.S.C. §41110(e). Specifically, that section 

requires that, once an air carrier is found fit initially, it must remain fit in order to hold its 

 

12

 We also reserve the right to stay the effectiveness of CFM’s authority if any new information becomes available 

to us that warrants such action.

13 We note that the operation of larger aircraft could require the air carrier to have access to additional funds and 

hire additional management personnel. 
9

authority. To be assured that commuter air carriers continue to be fit after effective authority has 

been issued to them, we require that they supply information describing any subsequent 

substantial changes they may undergo in areas affecting fitness. In this regard, should CFM

propose any substantial changes in its ownership, management, or operations, it must first 

comply with the requirements of section 204.5 of our rules.14 The compliance of the company 

with this requirement is essential if we are to carry out our responsibilities under the Statute. 15

Moreover, to aid the Department in monitoring the fitness of new air carriers, we have adopted a 

requirement that all start-up air carriers must submit a detailed progress report to the Air Carrier 

Fitness Division within 45 days following the end of the first year of actual flight operations 

under the commuter authority. 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 in its current operations during its second year, current 

financial statements,16 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. 

ACCORDINGLY:

1. We direct all interested persons to show cause why we should not issue an order finding that 

Corporate Flight Management, Inc., is fit, willing, and able under 49 U.S.C. §41738 to provide 

scheduled passenger service as a commuter air carrier using small aircraft pursuant to Part 135 of 

the Federal Aviation Regulations. 

2. We direct any interested persons having objections to the issuance of an order making final 

any of the proposed findings, conclusions, or the award of authority set forth here to file them 

with the U.S. Department of Transportation Dockets, 1200 New Jersey Avenue, S.E., West 

Building Ground Floor, Rm. W12-140, Washington, D.C. 20590, in Docket DOT-OST-2013-

0061 and serve them upon all persons listed in Attachment A no later than 14 days after the 

service date of this order; answers to objections shall be filed no later than 7 days thereafter.

 

14

 The air carrier may contact our Air Carrier Fitness Division to report proposed substantial changes in its 

operations, ownership, or management, and to determine what additional information, if any, will be required under 

section 204.5. Moreover, by notice dated July 21, 1998, the Department requested air carriers to provide a 30-day 

advance notification of any proposed change in ownership, restructuring, or recapitalization. If the air carrier fails to 

file the information or if the information fails to demonstrate that the air carrier will continue to be fit upon 

implementation of the substantial change, the Department may take such action as is appropriate, including 

enforcement action or steps to modify, suspend, or revoke the air carrier's commuter authority. 

15

 We also remind CFM about the requirements of section 204.7 of our rules. This section provides, among other 

things, that (1) the commuter authority granted to a company shall be revoked if the company does not commence 

actual flying operations under that authority within one year of the date of the Department’s determination of its 

fitness; (2) if the company commences operations for which it was found fit and subsequently ceases such 

operations, it may not resume scheduled passenger operations unless its fitness has been redetermined; and (3) if the 

company does not resume such operations within one year of its cessation, its authority shall be revoked for 

dormancy. 

16 These financial statements should include a balance sheet as of the end of the company’s first full year of actual 

flight operations and a 12-month income statement ending that same date.
10

3. If timely and properly supported objections are filed, we will accord full consideration to the 

matters or issues raised by the objections before we take further action.17

4. In the event that no objections are filed, we will consider all further procedural steps to be 

waived, and we will enter an order making final our tentative findings and conclusions set out 

here and awarding Corporate Flight Management, Inc., a Commuter Air Carrier Authorization, 

subject to the attached specimen Terms, Conditions, and Limitations.

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

6. We will publish a summary of this order in the Federal Register.

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

 

17

 Since we have provided for the filing of objections to this order, we will not entertain petitions for 

reconsideration.
Attachment

Specimen

Terms, Conditions, and Limitations

CORPORTATE FLIGHT MANAGEMENT, INC.

is authorized to engage in scheduled passenger air transportation operations as a commuter air carrier.

This authority is subject to the following provisions:

(1) The authority to conduct scheduled passenger operations 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) or issue tickets for scheduled passenger operations, and any advertisement 

or listing of flights 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 requirements of 14 

CFR Part 298 and any other regulations prescribed by the Department of Transportation for the 

services authorized here, and with such other reasonable terms, conditions, and limitations as the 

Department of Transportation may prescribe in the public interest.

(4) The holder’s authority is limited to operations conducted pursuant to Part 135 of the Federal 

Aviation Regulations. In the event that the holder wishes to institute operations that would require 

Part 121 certificate from the FAA it must first be determined fit for such operations. 
2

(5) The holder may not operate aircraft designed to have a maximum passenger capacity of 

more than 60 seats or a maximum payload capacity of more than 18,000 pounds.

(6) The holder's authority is effective only to the extent that such operations are also authorized 

by the FAA, and comply with all Department of Transportation requirements concerning security.

(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 this authority 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 authority.

(9) In the event that the holder receives effective scheduled passenger authority, the following 

additional conditions will apply:

(a) 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 Transportation under that section.

(b) 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 Competition Act of 1979, as amended by section 337 

of the Department of Transportation and Related Agencies Appropriations Act, 1998. 

(10) Should the holder propose any substantial changes in its ownership, management, or 

operations (as that term is defined in 14 CFR 204.2(l)), it must first comply with the requirements of 

14 CFR 204.5.

(11) In the event that the holder does not commence actual flying operations as a commuter air 

carrier under this authority within one year of the date of the Department's determination of its 

fitness, its commuter authority shall be revoked for dormancy. Further, in the event that the holder 

commences but subsequently ceases all scheduled passenger operations, the authority granted here 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 such operations within one year of its cessation, its commuter authority shall be 

revoked for dormancy.
Attachment A

SERVICE LIST FOR CORPORTATE FLIGHT MANAGEMENT, INC.

ALLEN HOWELL

PRESIDENT

CORPORATE FLIGHT MANAGEMENT INC

276 DOUG WARPOOLE ROAD

SMYRNA TN 37167

SUSAN B JOLLIE

COUNSEL FOR CORPORATE FLIGHT 

MANAGEMENT INC

7503 WALTON LANE

ANNANDALE VA 22003

PETER LYNCH AGC-300

ASST CHIEF COUNSEL FOR 

ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS RTS-42

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

MARK MAZOR

CERTIFICFMION SECTION 

MANAGER

FAA AFS-900

45005 AVIATION DRIVE SUITE 131

DULLES VA 20166

SAMUEL PODBERESKY

DOT

ASSISTANT GENERAL COUNSEL

 FOR AVIATION AND PROCEEDINGS

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590