Order 2011-3-8 Served: March 3, 2011

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 3 rd day of March, 2011

Application of

CSI Aviation Services, Inc.

for an emergency exemption pursuant to 49 U.S.C. § 40109

to continue to act as an indirect air carrier charter broker

under contract to the Genera l Services Administration Docket DOT-OST-2009-0311

ORDER EXTENDING EXEMPTION

Summary

By this order, we extend for an additional year , that is, until April 14, 20 12, the exemption authority granted to CSI Aviation Services, Inc. (“CSI”), to engage in interstate and foreign indirect air transportation of persons, propert y, and mail pursuant to contra cts arranged under the General Services Administration (“GSA”) Schedule Speci al Item Number (“SI N”) 599-5, Air Charter Services-Brokers. We are also extending this exem ption authority to other air charter brokers listed on GSA Schedule SIN 599-5, and those that may be so listed during the peri od of this exemption. 1

Background

By Order 2010-4-7, the Department granted for one year an exemption from 49 U.S.C. § 41101 and applicable Department regulations to CSI and all ot her similarly situated air charter brokers listed on GSA Schedule SIN 599-5 to engage in interstate and foreign in direct air transportation of persons, property, and mail pursuant to contracts with Federal government agencies arranged under SIN 599-5. In that order, the Department noted that should a rulemaking on this subject be underway but not yet final, we would favorably consider extending th e exemption authority authorized. This rulemaking is in progress and has yet to be completed. Absent our action here, the exemption authority granted by Order 2010-4-7 would expire on April 14, 2011.

On February 14, 2011, CSI submitted an Application for Renewal of Exemption with the Department. No objections to CSI’s applicat ion were filed. GSA di d, however, advise the Department that it is in the public interest to gran t such an extension of this exemption authority so

CSI and other air charter brokers may continue to provide serv ices to the Federal government agencies pursuant to their contracts with GSA.

1 Currently, the following air charter brokers are listed on GSA Schedule SIN 599-5: (1) Air Charter Team; (2) Air Partner, Inc.; (3) Air Planning LLC; (4) Capital Aviation, In c.; (5) CSI Aviation Services, Inc.; (6) Private Jet Services Group Inc.; (7) Sundowner Oklahoma City, LLC; and (8) Zephyr Aviation, LLC.

U N I T E D S

T A T E S O F A

M E R I C A D E P A R T M E N T O F T R A N S P O R T A T

I O N2

Decision

The Department has determined that the servi ces provided by air charte r brokers listed on GSA

Schedule SIN 599-5 continue to be necessary for the acquisition of air transportation by the Federal Government. Accordingly, the Department finds that it is consistent with the public interest to extend the exemption authority gran ted to these brokers and all othe r brokers that may be so listed

in Schedule SIN 599-5 in the future.

In light of the above, the author ity granted here shall be eff ective on April 14, 2011, and shall remain in effect for a period of one year, th at is, until April 14, 2 012, or until a final rule encompassing this authority is is sued, whichever is sooner.

ACCORDINGLY :

1. We extend the exemption authority grante d in Order 2010-4-7 from 49 U.S.C. § 41101 and applicable Department regulations to CSI Aviation Services, Inc., to the extent necessary for it to engage in interstate and foreign indirect air transportation of pers ons, property, and mail pursuant to contracts with Federal government agencies a rranged under the General Se rvices Administration (“GSA”) Schedule Special Item Number (“SI N”) 599-5, Air Charter Services-Brokers.

2. We extend the exemption authority gr anted in Order 2010-4-7 from 49 U.S.C. § 41101 to all

other air charter brok ers listed on GSA Schedule SIN 599-5, and all those th at may be so listed in the future to the extent necessary for them to engage in interstate a nd foreign indirect air transportation of persons, property, and mail pur suant to contracts w ith Federal government agencies arranged under the GSA Schedule SIN 599-5, Air Charter Services-Brokers.

3. The authority granted in orde ring paragraphs 1 and 2 is subj ect to the follo wing conditions:

 Air charter brokers shall cont ract only with dire ct air carriers that hold the requisite Departmental authority to e ngage in air transportation; 2

 All air services arranged by air charter brokers shall be authorized in accordance with the Fly America Act (49 U.S.C. § 40118) by the contracting agency;

 Before engaging in indirect air transportation to the extent permitted by this exemption, an

air charter broker not current ly listed on GSA Schedule SIN 599-5, Air Charter ServicesBrokers shall file a notice in this docket of its listing on GSA Schedule SIN 599-5; and

 An air charter broker curre ntly listed on GSA Schedule SI N 599-5, Air Charter ServicesBrokers, or that is listed subsequent to the issuance of this order, shall file a notice in this docket within 30 days after its removal from the GSA Schedule SIN 599-5, Air Charter

Services-Brokers.

4. The authority granted in ordering paragraphs 1 and 2 shall terminate April 14, 2012, or upon the issuance of a final rule encompassi ng this authority, whichever is sooner. 3

2 Brokers shall not, for example, enter in to agreements with comp anies operating pursuant to 14 CFR Part 125 as these entities are prohibited from engaging in common carriage operations in air transportation, either directly or indirectly, through air charter brokers.

3 Sixty days before the expiration of the exemption author ity granted in ordering paragraphs 1 and 2, we will favorably consider an extension of this exemption authorit y if a rulemaking on this subject is still underway and GSA3

5. We reserve the right to amend, modify, or revoke this author ity at any time, in the public interest, without not ice or hearing.

6. We shall serve this order on the parties to the captioned docket of this order, the U.S. Department of State (Office of Aviation Negotiati ons), the Federal Aviation Administration (AFS200), and the General Services Administration.

By:

SUSAN L. KURLAND Assistant Secretary for Aviation

and International Affairs

An electronic version of this document is available at http://www.regulations.gov

advises the Department that such an ex tension of the exemption authority is n ecessary for the acquisition of airlift for the Federal government agencies.