Order 2011-8-5 Served: August 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 August, 2011

Application of

TWIN CITIES AIR SERVICE, LLC

for authority to engage in scheduled passenger operations as a commuter air carrier under 49 U.S.C. § 41738 Docket DOT-OST-2011-0032

FINAL ORDER

Summary

By this order, we (1) find that Twin Cities Air Serv ice, LLC (“Twin Cities”), is a citizen of the United States and is fit, willing, and ab le to provide scheduled passenger ai r transportation as a commuter air carrier; (2) confirm our oral ac tion of July 25, 2011, making its co mmuter authorization effective on that date; and (3) issue to it a Commuter Air Carrier Authorization, subject to the attached Terms, Conditions, and Limitations, to reflect its effective date.

Background

By Order 2011-7-5, issued July 13, 2011, we directed all interested persons to show cause why we
should not make final our te ntative findings and conclusions that Twin Cities is fit, willing, and able to provide scheduled passenger service as a commuter air carrier using sm all aircraft pursuant to Part 135 of the Federal Aviation Regulations (“FAR”). Inte rested persons were given seven days to file objections to the order.

No objections to the show-cause order were received.

UPDATED FITNESS

The authority to operate under this commuter author ization was not to become effective until six (business) days after the Department had received (1) a copy of Twin Cities’ Air Carrier Certificate and Operations Specifications from the Federal Aviation Administration (“FAA”) authorizing it to engage in such operations, (2) a certificate of insurance evidencing liability insurance coverage meeting the requirements of Part 205 of our rules, and (3) updated fitness in formation describing any changes Twin Cities may have undergone subseque nt to the Show Cause or der in this proceeding, including evidence that the air carrier continued to ha ve funding sufficient to meet our financial fitness
criteria.

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

On July 19, 2011, Twin Cities submitted updated fitne ss information to make its commuter authority effective. Specifically, the air carrier provi ded a copy of OST Form 6410 evidencing liability insurance meeting the requirements of 14 CFR 205.5(b) and a copy of its Air Carrier Certificate and Operation Specifications from the FAA authorizing it to engage in its propos ed operations. Twin Cities also provided third-party verification that , as of July 19, 2011, it continues to meet the Department’s financial fitness criteria. It also updated its list of key personnel.

Our review of the material reveal ed the need for further informati on and/or clarification. Thus, the Department requested that Twin Cities file detail ed resumes, including FAA licenses and certificates, specific titles and duties, and citi zenship, for the new key personnel. We also requested that Twin Cities submit an updated list of (1) all actions and outstanding judgments for more than $5,000, including the amount of each judgment, the party to whom it is payable, and how long it has been outstanding; (2) actions and outst anding judgments of less than $5,000 and the total amount owed by each on such judgments; (3) all pending investigations, enforcement actions, and formal complaints filed by the Department, including the FAA, regardi ng compliance with the Statute or orders, rules, regulations, or requirements issued pursuant to the Statute, and any co rrective actions taken; and (4) all charges of unfair or decep tive or anticompetitive business practices , or of fraud, felony or antitrust violation, brought against any relevant corporati on, key personnel employed (or to be employed) by any relevant corporation, or pers on having a substantial in terest in any relevant corporation since the
issuance.

On July 22, 2011, Twin Cities filed the additional information and requested that the Department waive the six business day waiting period, noting that the peak season for its proposed commuter services occurs in the months of July and August.

Management

Mr. Jamey D. Gauthier will replace Mr. Dale Stew art as Chief Pilot. Mr. Stewart will remain employed by Twin Cities and will provide significant oversight of the transition in responsibilities. Mr. Gauthier is a U.S. citizen who has been empl oyed by Twin Cities since 2000. He began as a flight instructor and in 2002 became a FAR 135 Captain. Since 2005, he has been both pilot-in-command (“PIC”) and second-in-command (“ SIC”) in King Air BE-200 turbopr op aircraft. An FAA Safety Counselor from 2001 to 2003, Mr. Gauthier was pr eviously employed in non-aviation positions by Nichols Portland (1996-2001) in production, training, and data collection and L.L. Bean (1992-1996) in distribution and shipping. Mr. Gauthier is a veteran of the U. S. Navy (1986-1990), having served with a patrol squadron in armament branch a nd in-flight ordnance technician positions. While Mr. Gauthier’s only aviation experience is as a p ilot with Twin Cities, he has over 3,000 PIC flight hours in Cessna 402 aircraft, which will be used in Twin Cities’ scheduled operations, and his total flight time over 7,000 hours is equi valent to that of Mr. Stewart.

Mr. David Carter will re place Mr. Ben M. Mosher as Director of Maintenance at Twin Cities. Mr. Mosher will remain employed by Twin Cities and will provide significant oversight of the transition in responsibilities. Mr. Carter, a U.S. citizen who holds an Airframe and Powerplant Mechanic certificate from the FAA, has worked in the aviation industry si nce 1970 and has been a
senior mechanic with Twin C ities since 2003. From 1991 to 2003, Mr . Carter was the owner/operator
of Coastal Aviation Services. He served as Di rector of Maintenance and Chief Inspector for Skymaster Air Taxi (1989-1991) a nd as floor mechanic and Chief Inspector for Maine Aviation Corporation. In 1979, he began work in line ma intenance at Bar Harbor Airlines, becoming a maintenance supervisor in 1981. From 1970-1978, he co mpleted a four year apprenticeship program3

to become a Journeyman Aircraft Metal Fabricator and later served as second shift production supervisor.

In view of the experience and b ackground of the applicant’s key pers onnel, we conclude that Twin Cities has the management skills and technical ability to conduct its proposed commuter service. 1

REQUEST FOR CONFIDENTIAL TREATMENT

On July 22, 2011, Twin Cities filed a motion to withhold from public disclosure under section 14 CFR 302.12 the un-redacted resumes of Jamey D. Gauthier and David Carter, noting th at the redacted items
include the Pilots License Number for Mr. Gauthier and the Mechanic Airframe Powerplant Certificate Number of Mr. Carter. Further, Twin Cities ha s provided redacted resumes in the public docket.

Rule 12 instructs us to evaluate re quests for confidential treatment in accordance with the standards of
disclosure found in the Freedom of Information Ac t (5 U.S.C. section 552). By this standard, information may be withheld from disclosure unde r 5 U.S.C. 552(b)(4) if it is (1) commercial or financial, (2) obtained from a person outside the government, and (3) privileged or confidential. [ Gulf and Western Industries, Inc. v. United States, 615 F.2d 527, 529 (D.C. Cir. 1979)].

There is no question that the info rmation for which confidential trea tment is sought is financial or
commercial in nature and that it was obtained from a person outside the government. The remaining question is whether this information is privilege d and confidential – whet her “disclosure of the information is likely to have the following effect s: (1) impair the Government’s ability to obtain necessary information; or (2) cause substantial harm to the competitive position of the person from whom the information was obtained” ( See National Parks and Conservation Association v. Morton

, 498 F.2d 765,770 (D.C. Cir. 19740)). Further, to be pr ivileged or confidential, information must not be the type that is usually released to the public ( See Gulf and Western Industries, Inc. v. United States, 615 F.2d 527, 529 (D.C. Cir. 1979)).

We have reviewed the applicant’ s request and have determined it necessary to grant confidential treatment to Exhibits F-7 and F-8. The Department has granted confidential treatment to similar documents in the past and we fi nd no reason not to do so here.

Conclusion

We find that Twin Cities is fit to conduct its operati ons as a U.S. commuter ai r carrier, and that it has submitted the documentation necessary to make its au thority effective. Ther efore, on July 25, 2011, we orally advised Twin Cities that we would make it s authority effective on that date. By this order,
we confirm that action and issue to Twin Cities co mmuter authority to reflect its effective date.

ACCORDINGLY,

1. We find that Twin Cities Air Service, LLC is fit, willing, and able under 49 U.S.C. § 41738 to provide scheduled passenger service as a commuter ai r carrier using small aircraft pursuant to Part 135 of the Federal Aviation Regula tions, subject to conditions.

1 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 qualifica tions for those positions as prescribed in the FARs. The FAA’s evaluation of these key personnel provides an added practi cal and in-person test of their skills and technical ability.
The FAA has advised us that Twin C ities’ management personnel are quali fied and acceptable for their positions.4

2. We confirm our oral action of July 25, 2011, gr anting Twin Cities Air Se rvice, LLC a waiver from the six day waiting period and making its commuter authority effective on that date.

3. We issue a Commuter Air Carrier Authorization to Twin Cities Air Service, LLC, subject to the Terms, Conditions, and Limitations attached.

4. We direct that should Twin Cities Air Servi ce, LLC propose to perform operations that would require certification from the FAA under Part 121, it must first provid e the Department with at least 45-days advance notice of such pl ans and provide updated fitness info rmation establishing its fitness for such expansion.

5. We direct that Twin Cities Air Service, LLC submit to the Air Carrier Fitness Division a first-year progress report within 45 days following th e end of its first year of actual commuter flight operations. 2

6. 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 shall 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 cha nges it anticipates from its current operations during its second year, current financial statements, and a listing of current senior management and key technical personnel.

# Commuter Air Carrier Authorization

TWIN CITIES AIR SERVICE, LLC

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 scheduled passenger air transportation operations as a commuter air carrier.

This authorization is not transferable without the approval of the Department of Transportation.

By Direction of the Secretary

Issued by Order 2011-8-5 Susan L. Kurland On August 3, 2011 Assistant Secretary for Effective July 25, 2011 Avia tion and International AffairsAttachment



### Terms, Conditions, and Limitations

TWIN CITIES AIR SERVICE, LLC

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

This authority is subject to the following provisions:

(1) The holder shall at all times conduct its operations in accordance with the requirements of 14 CFR Part 298 and any other re gulations prescribed by the Department of Transportation for the services authorized here, and with such other reasonable terms, conditions, and limitations as th e Department of Transportation may prescribe in the public

interest.

(2) The holder’s authority is lim ited 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 certificatio n from the FAA, it must first be determined fit for such operations.

(3) 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.

(4) The holder's authority under this certificate is effective only to the extent that such operations are also authorized by the Federal Aviation Admi nistration (FAA), and comply with all U.S. Government requirements concerni ng security, including, but not limited to 49

CFR Part 1544. 

(5) The holder shall at all times remain a "Citizen of the United States" as required by 49 U.S.C. 40102(a)(15).

(6) The holder shall maintain in effect li ability insurance cover age as required under 14
CFR Part 205. Failure to maintain such in surance coverage will render this authority ineffective, and this or other failure to comply w ith the provisions of Subtitle VII of Title 49 of the United States Code or the Department's re gulations shall be sufficient grounds to revoke this authority.



To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (i ncluding 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.2

(7) The holder may reduce or terminate servi ce 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 Tr ansportation under that section.

(8) The holder may not provide scheduled passenge r air transportation to or from Dallas (Love Field), Texas, except within the limits se t forth in section 29 of the International Air Transportation Competition Act of 1979, as amended or as modified by any future legislation addressing access restrictions to or from Love Field.

(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) 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 th e 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 TWIN CITIES AIR SERVICE, LLC

MR EDWARD P FABERMAN
WILEY REIN LLP
1776 K STREET NW
WASHINGTON DC 20006 MR BERNARD STANKUS RTS-42
OFFICE OF AIRLINE INFORMATION
DOT/RSPA/BTS E-36
1200 NEW JERSEY AVE SE
WASHINGTON DC 20590

MS KATRINA A. SKOWRON
WILEY REIN LLP
1776 K STREET NW
WASHINGTON DC 20006 MR WILLIAM J WEBER
CERTIFICATION MANAGER
FAA AFS-900
45005 AVIATION DRIVE SUITE 131
DULLES VA 20166

MR NATHAN HUMPHREY
PRESIDENT TWIN CITIES AIR SERVICE, LLC
81 AIRPORT DRIVE
AUBURN ME 04210 MR PETER LYNCH
ASST CHIEF COUNSEL FOR ENFORCEMENT
FAA/AGC-300
800 INDEPENDENCE AVE SW
WASHINGTON DC 20591

MR GARY READIO
AVIATION SAFETY INSPECTOR
FAA PORTLAND FSDO-65
PORTLAND ME 04102 MS ANNE SUISSA
OFFICE OF AIRLINE INFORMATION
DOT/RSPA/BTS E-36
1200 NEW JERSEY AVE SE
WASHINGTON DC 20590

FAA FLIGHT STANDARDS DISTRICT OFFICE
412 YELLOWBIRD ROAD
PORTLAND ME 04102 MANAGER
PORTLAND INTERNATIONAL JETPORT
1001 WESTBROOK STREET
PORTLAND ME 04102

MANAGER
YARMOUTH INTERNATIONAL AIRPORT
PO BOX 386
YARMOUTH NOVA SCOTIA
CANADA B5A 4B3