BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

------------------------------------------------------------------------

:

Application of :

:

UNIVERSAL JET AVIATION, INC. : Docket DOT-OST-2011-0152

:

for an exemption from 14 C.F.R. Part 298 :

:

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APPLICATION OF

UNIVERSAL JET AVIATION, INC.

FOR RENEWAL OF PENDENTE LITE EXEMPTION

AND MOTION TO SHORTEN ANSWER PERIOD

Communications with respect to this document should be sent to:

Michael McCauley

President

UNIVERSAL JET AVIATION INC.

Boca Raton Airport

3700 Airport Road

Suite 204

Boca Raton, FL 33431

(961) 989-0025

November 20, 2011

Lorraine B. Halloway

Gerald F. Murphy

CROWELL & MORING LLP

1001 Pennsylvania Avenue, NW

Washington, DC 20004-2595

(202) 624-2500

lhalloway@crowell.com

gmurphy@crowell.com

Counsel for

Universal Jet Aviation, Inc.

NOTICE: Answers to this application would be due under normal procedures on December 6,

2011. Universal Jet Aviation, Inc. is requesting that the Department shorten the

answer period and require answers to be filed no later than Monday, November 28,

2011, or to act without waiting for answers. Universal will conduct a poll of all

carrier representatives on the service list to this application and immediately notify

the Department of the results.
BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

------------------------------------------------------------------------

:

Application of :

:

UNIVERSAL JET AVIATION, INC. : Docket DOT-OST-2011-0152

:

for an exemption from 14 C.F.R. Part 298 :

:

------------------------------------------------------------------------

APPLICATION OF

UNIVERSAL JET AVIATION, INC.

FOR RENEWAL OF PENDENTE LITE EXEMPTION

AND MOTION TO SHORTEN ANSWER PERIOD

Universal Jet Aviation, Inc. (“Universal” or the “Company”) requests a renewal of its

exemption pendente lite from Part 298 of the Department’s Economic Regulations granted by the

Department pursuant to Order 2011-8-19, allowing Universal to operate one executiveconfigured Boeing 737 aircraft (“Boeing Business Jet” or “BBJ”) in on-demand charter

operations. Absent renewal, Universal’s exemption will expire on November 30, 2011.

Extending the relief provided to Universal is in the public interests of preserving contract

sanctity and providing service options for passengers, and under the unique circumstances

presented. Indeed, the same compelling reasons supporting the Department’s initial grant of

Universal’s exemption just three short months ago continue today and justify the requested

renewal.

In support of its application, Universal states as follows:

1. On August 17, 2011, the Department granted Universal “an exemption until

November 30, 2011 from the provisions of 14 C.F.R. Part 298 to the extent necessary to enable it
Renewal Application of Universal

Page 2

DCACTIVE-16675754.1

to operate a single Boeing Business Jet in on-demand charter operations.”1The Company has

operated the 16-seat BBJ as part of its extensive and worldwide charter operations, involving

nearly a dozen other large cabin business jet aircraft2 with essentially the same characteristics,

capability, and operational profile, and provided safe and reliable air transportation to its

customers in doing so. Universal has a proven track record of more than 10 years of providing

global air transportation solutions to private individuals and corporate personnel. There is no

question that Universal possesses the necessary experience and expertise to offer charter service

with the BBJ as part of its fleet.

2. This exemption was initially granted in part “because [Universal’s] air taxi

registration was inadvertently processed with the addition of the BBJ, [and hence Universal]

reasonably believed that the BBJ qualified for air taxi service when placed in operation, and thus

entered into contracts, including a long-term contract, for the use of this specific aircraft,” and

with due regard to the “inconvenience and possible additional expense for passengers who have

already contracted for the use of this aircraft.”3In addition to ongoing commitments to its

customers, the Company has an obligation to provide charter service with the BBJ under its

Management Agreement with the aircraft’s owner, which was also premised on the air taxi

1 Order 2011-8-19 at 3.

2 Universal has 11 large cabin Gulfstream business jets, 1 mid-size Learjet and a Bell 430 executive

helicopter listed on its FAA certificate. See http://avinfo.faa.gov/detail.asp?DSGN_CODE=UJ8A&OPER_FAR=135&OPER_NAME=UNIVERSAL+JET+AVIATION

+INC.

3 Order 2011-8-19 at 2. Earlier this year, the Federal Aviation Administration (“FAA”) approved

Universal’s request for addition of one Boeing Business Jet to its operations specifications and Part 298 air taxi

registration. On August 4, 2011, FAA advised that this request had been “accepted and approved in error” (see

Letter from John S. Duncan, Manager, Air Transportation Division, FAA, to Universal Aviation, Inc., dated August

4, 2011 (“Duncan Letter”)) and the BBJ was removed from Universal’s operations specifications on August 10,

2011. See Letter from Jerry Proenza, Principal Operations Inspector, South Florida FSDO, FAA, to Richard Peck,

Director of Operations, Universal Aviation, Inc., dated August 11, 2011. FAA also advised Universal that it would

be able to operate the BBJ under an exemption from Part 298. See Duncan Letter supra.
Renewal Application of Universal

Page 3

DCACTIVE-16675754.1

registration discussed above. The same rationale upon which the Department granted Universal

relief in August hold true today.

3. DOT’s exemption was also premised on the expectation that Universal would

“prosecute [its] applications for appropriate authority as expeditiously as possible.” The

Company has done so. Following through with continued “good faith effort[s] to comply with

the laws and regulations governing its services,”4 Universal believes it has satisfactorily

responded to the Department’s requests for information and anticipates that the Department will

issue a show cause order for each of the Company’s pending certificate applications in the

coming weeks.5The evidence submitted in those proceedings clearly establishes that Universal

is fit, willing and able to provide foreign and interstate charter air transportation of persons,

property and mail.6

4. Moreover, because all operating costs for the BBJ – including but not limited to

those for maintenance, insurance and flight crews, continue to be passed through to the aircraft’s

4 Order 2011-8-19 at 3.

5

See Dockets DOT-OST-2011-0150 (foreign certificate) and DOT-OST-2011-0151 (interstate

certificate). As was the case with its initial exemption application in this docket, no answers or objections were

submitted on either of Universal’s pending certificate applications and the time period for responsive pleadings has

long since expired.

6

Information regarding Universal’s proposed operations and its fitness to hold a certificate of

public convenience and necessity to provide charter air transportation is provided with those applications and

incorporated herein by reference pursuant to § 201.3 of the Department's Regulations.
Renewal Application of Universal

Page 4

DCACTIVE-16675754.1

owner under the parties’ management arrangement, there is little need for concern regarding an

impact on Universal’s financial position from the addition of this aircraft to its certificate.7

5. Universal will also maintain the BBJ’s current executive seating configuration

and has no plans to operate the aircraft in a configuration that will ever exceed, nor come even

close to, 60 seats. Indeed, the Company is not permitted to operate aircraft with more than 30

seats under the terms of its existing FAA air carrier certificate.8

6. The same public interest considerations are present here as existed at the time the

Department granted Company’s initial exemption application. The Company has clearly

demonstrated its ability and fitness to conduct the operations here at issue, and has prosecuted its

applications for foreign and interstate charter certificates with all possible haste. Universal

merely seeks temporary relief until such time as the Department has taken action on its pending

certificate applications.

7. Universal also requests that the Department shorten the period for answers to this

application, so that answers are due no later than Monday, November 28, or act without waiting

for answers, to enable Universal to continue to provide the charter transportation authorized by

Order 2011-8-19. While the Department’s normal procedures would provide for an answer

7 Universal does not incur any additional aircraft operating expenses unless it has charter business to

cover such costs. Even then, all such expenses (e.g., fuel) are passed on to the charter customer – subjecting

Universal only to the risk of non-payment, for which the Company would still be able to pursue all available legal

remedies under the applicable charter contract. See Application of Universal Jet Aviation, Inc., dated August 15,

2011, at 5 and Exhibit F (Aircraft Management Agreement), in Docket DOT-OST-2011-0150; see also Supplement

No. 2 Application of Universal Jet Aviation, Inc., dated October 7, 2011, in Docket DOT-OST-2011-0150, at 2, note

2. The Company also has access to a line of credit well in excess of the amount required to meet the Department’s

financial fitness test with respect to the addition of the BBJ to its operations. See Supplement No. 1 to Application

of Universal Jet Aviation, Inc., dated August 30, 2011, at 4 and Exhibit F (letter of credit verification) and

Supplement No. 2 Application of Universal Jet Aviation, Inc., at Exhibit C (additional letter of credit verification).

8

See 14 C.F.R. § 110.3 (2011) (aircraft to be used in “on-demand” operations may have an actual

passenger-seat configuration of not greater than 30 seats, excluding crewmember seats, and a payload capacity not

exceeding 7,500 pounds).
Renewal Application of Universal

Page 5

DCACTIVE-16675754.1

period of 15 days, good cause clearly exists for the Department to provide this relief under the

circumstances presented. Nevertheless, Universal will conduct a poll of all carrier

representatives listed on the service list to this application and immediately notify the

Department of the results.

WHEREFORE, Universal respectfully requests that the Department shorten the answer

period and promptly renew Universal’s exemption pendente lite from the provisions of Part 298

of its Economic Regulations, thus permitting Universal to continue to operate one executiveconfigured Boeing Business Jet in on-demand charter operations pending the Department’s

action on Universal’s pending applications for a certificates of public convenience and necessity

to engage in interstate and foreign charter air transportation.

Respectfully submitted,

CROWELL & MORING LLP

/s/ Gerald F. Murphy

____________________________________

Lorraine B. Halloway

Gerald F. Murphy

lhalloway@crowell.com

gmurphy@crowell.com

Counsel for

Universal Jet Aviation, Inc.

November 20, 2011
CERTIFICATE OF SERVICE

I certify that I have this date served the foregoing document on the following persons in

accordance with the Department’s Rules of Practice.

mlbenge@zsrlaw.com

marshall.sinick@ssd.com

jamestello@earthlink.com

pmurphy@lopmurphy.com

Jerry.Proenza-SR@faa.dot.gov

Ken A. Day

Airport Manager

3701 FAU Boulevard

Suite 205

Boca Raton, FL 33431

Fax: (561) 391-2238

/s/ Gerald F. Murphy

__________________________________

Gerald F. Murphy

November 20, 2011

DCACTIVE-16675754.1