Order 2014-3-2

Served: March 4, 2014

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 4th day of March, 2014

Fitness Determination of

HARRIS AIRCRAFT SERVICES, INC.

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

 Docket DOT-OST-2013-0089

 

ORDER TO SHOW CAUSE

PROPOSING ISSUANCE OF COMMUTER AIR CARRIER AUTHORITY

Summary

By this order, we tentatively find that Harris Aircraft Services, Inc. (“Harris Air”), is a citizen of 

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

commuter air carrier, subject to conditions.

Background

Section 41738 of Title 49 of the United States Code (“Transportation Code”) and section 

298.21(d) of the Department’s Aviation Economic Regulations (14 CFR 298.21(d)) 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 Transportation Code and regulations imposed by 

Federal and state agencies. We must also determine that the applicant is a U.S. citizen. 

On April 16, 2013, Harris Air, an on-demand air taxi serving the Southeastern Alaska area and 

operating under 14 CFR Part 298 of the Department’s regulations and Part 135 of the Federal 

Aviation Regulations (“FAR”), filed an application in Docket DOT-OST-2013-0089 for 

authority to conduct scheduled passenger operations as a commuter air carrier. The air carrier 

accompanied its application with fitness information required by section 204.3 of our regulations 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION
2

and supplemented its application with additional information on August 9, December 19, and

December 23, 2013.

On October 28, 2013, an answer was filed by Pacific Airways, Inc. (“Pacific”), a U.S. 

certificated air carrier operating scheduled and on-demand air service in Southeastern Alaska.

Pacific states that Harris Air lacks the required compliance disposition for failing to adhere to the 

application requirements of 14 CFR §302. Specifically, Pacific states that Harris Air did not 

include the 14 CFR § 302.202(b) notice on the cover sheet of its application, nor did the 

applicant provide the required notice of its application by serving the airport authority of each 

airport it proposes to serve. In addition, Pacific claims that Harris Air failed to submit a signed 

counterpart of Agreement 18900 (OST Form 4523)1 in its application, a form listed in 14 CFR 

204.3. Lastly, Pacific asserts that further proof of Harris Air’s unsatisfactory compliance 

disposition is the company’s failure to collect appropriate Federal Excise Taxes.

Pacific also questions Harris Air’s financial fitness. Pacific maintains that the financial forecasts 

provided by Harris Air are inconsistent with Harris Air’s statement of proposed services in that 

Harris Air did not address the issue of startup expenses in its response to the Department’s 

request for additional information. Additionally, Pacific states that because the financial 

statements were not prepared according to Generally Accepted Accounting Principles, Harris Air

does not pass the Department’s financial fitness requirements, and has less working capital than 

the applicant claims to have. Pacific also asserts that Sitka Aircraft and Support Services, LLC, 

an aircraft holding company under common ownership with Harris Air, is the “alter ego of Harris 

Air and its operations and finances must be considered as a single unit.”

2 Specifically, Pacific 

argues that Sitka Aircraft and Support Services’ negative working capital balance should be 

deducted from Harris Air’s working capital balance. Pacific also expresses a general concern 

over the future of Harris Air’s contract with Southeast Alaska Regional Health Consortium, 

wherein Harris Air provides general transportation services for the consortium’s medical staff 

and general patient travel. 

On December 18, 2013, Harris Air filed an amended application supplementing the record and 

addressing the issues raised by Pacific in its answer. Concerning the allegations raised by Pacific 

about Harris Air’s compliance, Harris Air states that they provided the required notice to the 

State of Alaska as it is the airport authority of each of the airports and seaplane bases they serve. 

The Certificate of Service was submitted to the Office of Statewide Aviation in Juneau, Alaska 

listing each of the airports Harris Air serves. Additionally, the company states that they 

unintentionally omitted OST Form 4523 in its original application and therefore were submitting 

the completed copy in its amended application. In regards to the IRS Excise Tax Audit Loan, 

Harris Air states that an IRS audit conducted in May of 2011 concluded that the company owed 

excise taxes for trips made to certain destinations where Harris Air failed to collect taxes. The 

company explained that they had previously been told by the IRS that these taxes were not 

required to be collected. However, the air carrier agreed to pay the taxes in full with a loan from 

Alaska Pacific Bank.

 

1 OST Form 4523, also known as the “Montreal Agreement,” increases the Warsaw Convention liability limit to 

$75,000 per passenger.

2 See Answer of Pacific Airways, Inc., and petition to dismiss application for failure to comply with 14 CFR and 

14 CFR 302, dated October 28, 2013.
3

With respect to its financial fitness, Harris Air states that the corporation and Sitka Aircraft and 

Support Services, LLC are separate entities and that the air carrier does not receive any financial 

aid or funds of any kind from the aircraft holding company. Harris Air states that its financial

information was prepared by its Vice President, Laura Lynn Kronsperger, as indicated in the 

application, but admits it was not prepared in accordance with Generally Accepted Accounting 

Principles. Harris Air states that Pacific’s concerns regarding the future of the contract with the 

consortium are purely speculative and that no one can predict changes to policy or the future of

the organization. Additionally, Harris Air states that they provide superior service because the 

air carrier is certified to provide Instrument Flight Rules (IFR) flights, an explicit service 

requirement in the contract, whereas other air carriers are limited to providing service in Visual 

Flight Rules (VFR) weather conditions. 

After careful review of the answers and additional information submitted by Pacific and the 

applicant, the Department finds that Harris Air has submitted the necessary information and 

documentation in its application and amendment for us to determine that the applicant should be 

tentatively found fit to operate as a commuter air carrier. In addition, we find that Harris Air’s 

responsive pleading adequately addresses the various issues raised by Pacific. For instance, 

concerning Harris Air’s compliance disposition, namely its failure to submit OST Form 4523 in 

its initial application and to collect Federal Excise Taxes, the company subsequently submitted 

an amended application correcting the deficiency and obtained a loan from Alaska Pacific Bank 

to pay the taxes.

We also find that Pacific’s allegations about Harris Air’s financial fitness are without merit. 

Pacific did not submit evidence supporting its claims that Harris Air’s financial condition is less 

than what the applicant submitted for our review. 

Under these circumstances, we propose to decide the issue of the applicant’s fitness on the basis 

of the written record and we tentatively conclude that Harris Air is a U.S. citizen and is fit, 

willing, and able to provide scheduled passenger operations as a commuter air carrier. However, 

we will give interested persons an opportunity to show cause why we should not adopt as final 

these tentative findings and conclusions.

FITNESS

The Company

Harris Air was formed as a corporation under the laws of the State of Alaska on September 

22, 1998. The company began as an aircraft maintenance facility and then bought its first 

aircraft, a Cessna floatplane, in 1999 to provide on-demand air taxi operations under Part 135. 

Ownership of Harris Air is held equally by Robert S. Harris and Laura L. Kronsperger,3 both of 

whom are U.S. citizens. There is no other controlling interest in the company. The owners of 

Harris Air also share ownership of Sitka Aircraft and Support Services, LLC, an asset leasing 

business and the company that owns two of the aircraft in use by Harris Air.

 

3 Robert S. Harris and Laura L. Kronsperger are husband and wife.
4

Managerial Competence

Harris Air’s management and key personnel consist of the following individuals, each of whom 

is a U.S. citizen. 

Mr. Robert Scott Harris - President

Ms. Laura Lynn Kronsperger - Vice President

Mr. Mark W. Hackett - Director of Operations

Mr. Christopher Hickmann - Chief Pilot

Mr. Greg Fradette - Director of Maintenance

Mr. Robert S. Harris has served as President of Harris Air since the company was formed in 

1998. Before that, Mr. Harris was an Aircraft Mechanic for Mountain Aviation, Inc. and 

maintained company aircraft in support of air taxi operations (1990-1998). From 1982 until 

1990, Mr. Harris served as an Aircraft Mechanic in the U.S. Coast Guard stationed in Oregon 

and Alaska. He completed aviation electrician technical training during his Coast Guard service.

Ms. Laura Kronsperger has served as Vice President of Harris Air since the company was 

formed in 1998. She is also the Manager of Accounting and Information Services for Arrowhead 

Transfer, Inc., a local trucking and propane company also located in Sitka, Alaska (1993 to 

present). Ms. Kronsperger has worked as a Visiting Professor for the University of Alaska 

Southeast teaching business related classes (1990-1994) and as a Bookkeeper for Shaffer & 

Harrington CPAs (1998-1991), providing bookkeeping services for individuals and business 

owners. Ms. Kronsperger earned a M.Ed. in Information Technology from University of Alaska 

Southeast and a B.S. degree in Music Education from Bowling Green State University.

Mr. Mark Hackett has served as Director of Operations and Pilot for Harris Air since May 2001.

He has previous experience as a Director of Operations for Mountain Aviation, Inc., an air taxi 

operator in Southeast Alaska (1993-1998) and as a Part 121 Pilot and Flight Engineer for Atlas 

Air Cargo and Northern Air Cargo (1991-2001). He holds an Airline Transport Pilot license 

with DC-6, DC-7 and B-747 type ratings and a Flight Engineer license. Mr. Hackett served as a 

Flight Crewmember in the U.S. Coast Guard from 1975 until 1979. Mr. Hacket has

approximately 15,000 total hours of flight time. He received aviation and technical training at 

the University of Alaska and the U.S. Coast Guard.

Mr. Christopher Hickman has served as Harris Air’s Chief Pilot since 2008 and a Line Pilot for 

the company since 2006. His previous experience includes service as Chief Pilot for L.A.B. 

Flying Service, Inc., in Juneau, Alaska (2004-2006), and as a Pilot for Blue Skies Skydiving 

Center in Shelton, Washington (June 2000-October 2000). Mr. Hickman was employed as a 

Quality Control Technician for K2, Inc. (1993-2001), and served as a Boatswain’s Mate in the 

U.S. Navy (1991 to 1993). Mr. Hickman is an Airline Transport Pilot with over 8,000 total 

hours of flight time.

Mr. Greg Fradette has served as Harris Air’s Director of Maintenance since September 2011. He 

has worked with a number of companies performing aircraft inspections and maintenance 

including Heritage Aero, STS Aviation Group, and Commuter Air Technology (1994-2011).
5

Mr. Fradette holds an Airframe and Powerplant Mechanic license and FAA Approved Inspection 

Authorization.

In view of the experience and background of the applicant’s key personnel, we tentatively 

conclude that Harris Air has demonstrated that it has both senior management and key technical 

personnel who have the managerial skills and technical ability to support its proposed operations. 

Moreover, the FAA has advised us that they know of no reason to act unfavorably on the 

company’s commuter application.

4

Operating Proposal and Financial Plan

The applicant currently provides on-demand air taxi operations from Sitka Airport. In addition 

to charter operations, the company holds Operations Specifications from the FAA that authorizes 

the air carrier to conduct scheduled service between Sitka and Juneau, Haines, Hoonah, Angoon, 

Pelican, Teenekee, Kate, Petersburg, Wrangell, Skagway and Klawock, Alaska. Harris Air has 

been providing Essential Air Service between Sitka and Port Alexander with two non-stop, 

round-trip flights per week since 1999. 

Harris Air is currently operating the following aircraft under Part 135:

Number of Aircraft Make/Model Number of Pax Seats

1 CE-185-A185F (float plane) 3 Pax

1 DHC-2-MKI (float plane) 5 Pax

3 PA-31-350 (Chieftain) 9 Pax

On December 12, 2012, the company contracted with Southeast Alaska Regional Health 

Consortium to provide air medical service and routine patient and staff travel throughout 

Southeast Alaska. The company has now requested commuter authority to conduct expanded 

scheduled passenger operations as a result of the air medical services contract and to provide 

additional Essential Air Service destinations and U.S. mail transportation service as they are put 

out for bid. 

In establishing financial fitness, the Department typically asks an applicant to demonstrate that it 

has access to financial resources sufficient to cover its pre-operating expenses and any negative 

working capital balance, plus a working capital reserve equal to the operating costs that are 

reasonably projected to be incurred during three months of “normal” operations. Because 

projected expenses during the first several months of air service frequently do not include all 

costs that will be incurred during a “normal” period of operations, it is our practice to base our 

three-month test on one-quarter of the first year’s operating costs. Further, in calculating 

available resources, projected revenues may not be used.

 

4 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 FARs. 

The FAA’s evaluation of these key personnel provides an added practical and in-person test of their skills and 

technical ability. 
6

Harris Air provided forecasts of its pre-operating costs and its first-year operating expenses 

associated with its current and proposed commuter operations. The company stated it will incur 

approximately $353,397 in pre-operating costs. More specifically, Harris Air estimates that its 

pre-operating costs will include those expenses associated with obtaining new operation 

specifications, training and salaries for an additional pilot and mechanic, aircraft lease, terminal 

and airport parking expenses, fuel and insurance. Harris Air also provided a forecast of its first 

year operating expenses. The air carrier projects its first year expenses will total approximately 

$2.58 million. Based on this forecast, we estimate that it will require approximately $999,294 to 

meet our financial fitness criteria.5 

In support of its ability to fund its proposed commuter operations, Harris Air submitted historical 

and current financial statements showing the company’s financial posture. For calendar years

2010, 2011, and 2012, Harris Air earned net income of $362,296, $91,937 and $142,798 on

operating revenues of $2.23 million, $2.24 million and $2.44 million respectively. Harris Air 

submitted a balance sheet on March 31, 2013, that shows the company has current assets of 

$694,346 and current liabilities of $164,213, indicating positive working capital of $530,133 and 

a current ratio of 4.22:1. In this same report, the company reported total equity of $176,535.

In support of its application, the air carrier provided third-party verification of funds available to 

Harris Air.

In light of the above, we tentatively conclude that Harris Air will have access to sufficient 

financial resources to enable it to commence the proposed operations without posing an undue 

risk to consumers or their funds.

6

Compliance Disposition

The applicant states that there are no actions or outstanding judgments against it, persons holding 

a substantial interest in it, or its key personnel, and that none of these parties have been the 

subject of any charges of unfair, deceptive or anti-competitive business practices, or of fraud, 

felony or antitrust violations, or other legal action during the past ten years. Harris Air also 

states that there are no pending investigations, enforcement actions, or formal complaints 

involving the applicant, persons holding a substantial interest in it, or its key personnel with 

respect to compliance with the Statute or the Department’s regulations.

Our search of the Department’s records found no compliance problems with Harris Air and our

review of FAA records indicates that Harris Air has not been involved in any incidents or 

accidents in a 5-year period from October 2008 through October 2013. Additionally, the FAA’s 

Principal Operations Inspector for Harris Air stated that the FAA has no concerns over the safety 

of its operations.

 

5 The $999,294 noted above consists of the applicant’s pre-operating expense forecast of $353,397 plus $645,897 

which is one-quarter of Harris Air’s estimated first-year expenses. 

6 As is our practice, prior to making any authority awarded to Harris Air effective, we will require the company to 

demonstrate that it continues to have the financial resources needed to meet our financial criteria.
7

In light of these circumstances, we tentatively conclude that Harris Air has the proper regard for 

the laws and regulations governing its services to ensure that its aircraft and personnel conform 

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

CITIZENSHIP

Section 41102 of the Transportation Code requires that an applicant for commuter 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 must be under the actual control of

U.S. citizens.

As previously stated, Harris Air is organized as an “S” corporation in the State of Alaska and is 

in good standing. The company is equally owned by Robert Scott Harris and Laura Lynn 

Kronsperger, husband and wife, both of whom are U.S. citizens. There are no other ownership

interests in the company and the company has no subsidiaries. Harris Air’s key personnel are 

U.S. citizens and the company has provided an affidavit attesting that it is a citizen of the United 

States within the meaning of the Statute. Our review of the applicant’s citizenship has uncovered 

no reason to suggest that control of Harris Air rests with non-U.S. citizens.

In light of the foregoing, we tentatively find that Harris Air is owned and actually controlled by 

U.S. citizens, consistent with 49 U.S.C. § 40102(a)(15) and is fit, willing, and able to provide the 

proposed scheduled passenger operations, subject to conditions.

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 Harris Air’s fitness and 

Commuter Air Carrier Authorization.

EFFECTIVE COMMUTER CONDITIONS & LIMITATIONS

If Harris Air is found fit and issued the Commuter Air Carrier Authorization it seeks, its 

authority will not become effective until the company has fulfilled all requirements for 

effectiveness as set forth in the terms and conditions attached to its authorization. Among other 
8

things, this includes our receipt of evidence that Harris Air has been certified by the FAA to 

engage in the subject operations, a fully executed OST Form 6410 evidencing liability insurance 

coverage that meets the requirements of section 205.5(b) of our rules for all of its aircraft, thirdparty verification of available funding necessary to meet the Department’s fitness requirements, 

and a statement of changes it may have undergone since its fitness was examined.

In addition, consistent with the applicant’s proposed operations, we propose to limit any 

authority issued to Harris Air to operations using aircraft that can be operated under FAR Part 

135 (that is, aircraft with no more than 9 seats in scheduled passenger operations). Should Harris

Air desire to operate aircraft that would require certification from the FAA under Part 121, 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.7

Furthermore, we remind Harris Air 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 authority. To be assured that 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. Therefore, if Harris Air is 

issued an effective commuter authorization and should it subsequently propose substantial 

changes in its ownership, management, or operations, it must first comply with the requirements 

of section 204.5 of our rules.8 The compliance of the company with this requirement is essential 

if we are to carry out our responsibilities under section 41110(e).

9

Additionally, if Harris Air is granted effective authority, it would be required to submit a detailed 

progress report, within 45 days following the end of the first year of actual flight operations, to 

the Air Carrier Fitness Division. The submission of a first year progress report is conditioned 

upon all newly authorized air carriers and was adopted as policy by the Department to aid in 

monitoring the fitness of new air carriers. The report should include a description of the air 

carrier’s current operations (number and type of aircraft, principle markets served, total number 

of full-time employees), a summary of how its operations have changed during the year, a 

discussion of any changes it anticipates from its current operations during its second year, 

 

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

hire additional management personnel.

8 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. In addition, 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 this updated 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.

9 We also remind Harris Air 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 commuter operations unless its fitness has been redetermined; and (3) if 

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

dormancy.
9

current financial statements,10 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 

Harris Aircraft Services 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 award of authority set forth here to file them with 

Department of Transportation Dockets, 1200 New Jersey Ave. SE, Room W12-140, Washington, 

D.C. 20590, in Docket DOT-OST-2013-0089 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.

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.11

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.

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

 

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

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

11 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

HARRIS AIRCRAFT SERVICES, 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 authority is limited to operations conducted pursuant to Part 135 of the 

Federal Aviation Regulation. In the event that the holder wishes to institute operations that 

would require Part 121 certification from the FAA, it must first be determined fit for such 

operations.

(4) 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 
2

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

as the Department of Transportation may prescribe in the public interest.

(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 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 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 

 

 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

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

HARRIS AIRCRAFT 

SERVICES, INC.

SCOTT HARRIS

PRESIDENT

HARRIS AIRCRAFT 

 SERVICES INC

400 AIRPORT ROAD 

SITKA AK 99835

PETER LYNCH

ASST. CHIEF COUNCEL FOR

 ENFORCEMENT, AGC-300

FEDERAL AVIATION

ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

TROY MCCLANAHAN

PRINCIPAL OPERATIONS

INSPECTOR

JUNEAU FSDO-05

3032 VINTAGE PARK BLVD

SUITE 106

JUNEAU AK 99801

MARK MAZOR

MANAGER

CERTIFICATION & 

 EVALUATION PROGRAM

OFFICE

FAA AFS-900

45005 AVIATION DRIVE

SUITE 131

DULLES VA 20166

OFFICE OF AIRLINE

INFORMATION

DOT/RITA/BTS E-34

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590