BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

_________________________________________ 

 ) 

Application of ) 

 ) 

CARIBBEAN SUN AIRLINES, INC. D/B/A ) 

WORLD ATLANTIC AIRLINES ) DOCKET OST-2014- 

 ) 

for a Certificate of Public Convenience ) 

and Necessity (Interstate Passenger ) 

Charter Service) ) 

_________________________________________ )

APPLICATION OF CARIBBEAN SUN AIRLINES, INC. D/B/A

WORLD ATLANTIC AIRLINES FOR A CERTIFICATE OF

PUBLIC CONVENIENCE AND NECESSITY

Communications with respect to this document should be sent to:

John R. Mietus, Jr.

Law Office of John Mietus, LLC

6701 Democracy Blvd., Suite 300

Bethesda, MD 20817-7500

(202) 747-5212

john@mietuslaw.com

Counsel for CARIBBEAN SUN

AIRLINES, INC. d/b/a WORLD 

ATLANTIC AIRLINES

APPLICANT REQUESTS THAT THIS APPLICATION BE PROCESSED 

THROUGH EXPEDITED, NON-HEARING PROCEDURES PURSUANT TO 

SUBPART B OF THE DEPARTMENT’S PROCEDURAL REGULATIONS.

NOTICE: Any person may support or oppose this application by filing an 

answer no later than September 23, 2014 and serving a copy of the answer on 

counsel for Applicant and upon persons served with this application.

 

September 2, 2014
BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

_________________________________________ 

 ) 

Application of ) 

 ) 

CARIBBEAN SUN AIRLINES, INC. D/B/A ) 

WORLD ATLANTIC AIRLINES ) DOCKET OST-2014- 

 ) 

for a Certificate of Public Convenience ) 

and Necessity (Interstate Passenger ) 

Charter Service) ) 

_________________________________________ )

APPLICATION OF CARIBBEAN SUN AIRLINES, INC. D/B/A

WORLD ATLANTIC AIRLINES FOR A CERTIFICATE OF

PUBLIC CONVENIENCE AND NECESSITY

Pursuant to 49 U.S.C. § 41102, parts 201 and 204 of the Department’s 

Economic Regulations, subpart B of the Department’s Procedural 

Regulations, and the Department’s Streamlining Initiative in Docket OST2005-22228, Caribbean Sun Airlines, Inc. d/b/a World Atlantic Airlines 

(“World Atlantic”) respectfully applies for a certificate of public convenience 

and necessity authorizing World Atlantic to engage in interstate charter air 

transportation of persons, property, and mail. World Atlantic requests that 

the Department process this application expeditiously and proceed directly to 

a final order. In support of its application, World Atlantic states as follows:

1. World Atlantic, based in Miami, Florida, has been operating 

passenger charters with its fleet of MD-80 type aircraft since its certificate 

authorizing foreign charter air transportation of persons, property, and mail 
World Atlantic

Certificate Application

Page 2 

was made effective in September 2010. See Orders 2009-12-8 (show cause), 

2010-3-7 (final), and 2010-9-34 (effective certificate).1 With the approval of 

the Air Carrier Fitness Division, most recently in August 2014, the airline 

has expanded its fleet from one to five aircraft. Its operations for the U.S. 

government, several licensed operators of U.S.-Cuba charters, and public 

charter operators have been well-received. The requested interstate 

certificate will permit World Atlantic to expand its services within the United 

States. 

 2. Under 49 U.S.C. § 41102(b)(1), the Department may issue interstate 

authority if the applicant is a U.S. citizen and meets the Department’s fitness 

requirements; no findings as to public convenience and necessity or the public 

interest are required. In the course of requesting fleet increases, the carrier 

has provided the Department with information, for the most part 

confidential, demonstrating its continuing fitness. Since World Atlantic’s 

proposed interstate charter operations are not a “substantial change” from its 

existing foreign charter operations, it submits that the Department has 

sufficient information to act on this application2 and to proceed directly to a 

1/ World Atlantic held interstate charter authority when its current owner 

purchased it, but because there were then no firm plans for interstate service, 

the Department revoked the authority. Order 2009-10-12.

2/ See 14 C.F.R. § 204.6; Atlas Air, Inc., Order 2011-5-18 (adding interstate 

authority); Private Jet Expeditions, Inc., Order 89-7-29 (same). Cf. Southwest 

Airlines Co., Order 86-5-60 (adding mail authority to existing interstate 

authority).

 
World Atlantic

Certificate Application

Page 3 

final order using simplified, non-hearing procedures.3 Key, public 

information concerning World Atlantic’s updated fitness is set forth below. 

3. World Atlantic remains privately and wholly-owned by a U.S. 

citizen, Tomas Romero, and managed by a Board of Directors and key 

personnel who are all U.S. citizens and listed below.4 Key personnel not 

named in the earlier World Atlantic orders cited above are shown with an 

asterisk, and capsule biographies are provided below; WAA has previously 

provided the Department with their resumes.

Board of Directors

Tomas E. Romero President and CEO 

Florentino L. Gonzalez Executive V.P. & CFO

John R. Rupert V.P. & Director of Operations

Key Management Personnel

Tomas E. Romero President and CEO 

Florentino L. Gonzalez Executive V.P. & CFO

Ray Bradley V.P. & Director of Technical Operations 

John R. Rupert V.P. & Director of Operations

Capt. Thomas B. Van Halm Chief Pilot

Patrick Joseph* Director of Safety

John Barnes* Director of Q.C. & Chief Inspector

Pedro Ruiz* Director of Maintenance

3/ See 14 C.F.R. §§ 302.15, 302.207; KaiserAir, Inc., Order 2013-5-8 at 2; and 

cases cited in note 2.

4/ Chief Pilot Captain Van Halm holds dual Dutch/U.S. citizenship.

 
World Atlantic

Certificate Application

Page 4 

Patrick Joseph, Director of Safety

Mr. Joseph, most recently World Atlantic’s Manager of Dispatch, began his 

airline career at Fine Airlines and served in management positions at BWIA 

West Indies Airways and Falcon Air Express before joining World Atlantic in 

2009. He holds a degree from the University of the Virgin Islands.

John Barnes, Director of Quality Control and Chief Inspector

Mr. Barnes has held maintenance positions of increasing responsibility at 

such carriers as Batch Air, Arrow Air, and Miami Air before joining World 

Atlantic in 2010. He began his aircraft maintenance career in the U.S. Navy 

and holds an FAA airframe and powerplant license. 

Pedro (Pete) Ruiz, Director of Maintenance

Mr. Ruiz joined World Atlantic from Falcon Air Express, where he once held 

the Director of Maintenance position, and has been involved in airline 

maintenance since 1984. He holds an FAA airframe and powerplant license.

4. World Atlantic anticipates that new interstate operations – 

expected to include sports team operations, occasional private charters, and 

subservice for other carriers – would account for no more than 10% of its total 

operations. As a proxy for the forecast incremental cost of those new 

operations, World Atlantic is attaching as an exhibit a summary of its recent 

submission to the Department estimating costs associated with adding an 

aircraft to its fleet.5/ Confidential financial statements and personal asset 

5/ World Atlantic anticipates that it will continue to offer most charters as 

"ACMI" contracts, under which charterers will be contractually responsible 

for fuel costs; in such a case, the Department does not consider those costs in 

calculating financial requirements. See, e.g., Dynamic Airways, LLC, Order 

2010-9-17 at 5-6. 

The carrier does not anticipate the first full year of operations under the 

requested authority would result in a near-term net annual change in 

aircraft fuel consumption of 10 million gallons or more, and it has determined 

that adequate fuel is available for this service. To the extent the Department 

nonetheless concludes that grant of the requested authority would constitute 

a major regulatory action, it requests that the Department waive the 

requirement that an Energy Statement under 14 C.F.R. Part 313 be 

prepared. 

 

World Atlantic Airlines

Assumptions

Financial Forecast 

12 months period

 Based on the marginal revenue and cost of a sixth (one) aircraft

1) The sixth aircraft will operate150 block hours a month (116 flight hours).

Those 150 block hours will be sold on an ACMI basis.

2) Rent of aircraft will be based ona minimum of $95,000 rent up tp 120 flight hours a month.

The lease payment includes power by the hour for engines, C Check, landing gears and APU.

3)

Flying operations include rent of additional aircraft, insurance for the additional aircraft,

salaries for additional cockpit crews and some incidental additional expenses

related to the additional crews.

4) Maintenance include the actual salaries (cost) of additional maintenance personnel, plus

25% of the total monthly cost of maintenance for 4 A/C less salaries.

5)

Passenger service include the cost of additional flight attendants plus some incidental

additional expenses related to the additional flight attendants.

6) Aircraft and traffic expenses includes 25% of the total monthly expenses for a 4 A/C operation

based on an ACMI operation only, without additional airport and handling service 

normal in a charter operation.

7) General and administrative expenses include the actual payroll taxes for all the additionl

personnel requiered , plus 25% of the total 4 A/C expenses that would be increased as result of an additional aircraft.

8) Pre- operating expenses include mostlytraining of pilots, flight attendants and mechanics, plus additional expenses

as result of adding the 6th A/C

World Atlantic

Certificate Application (2 

pages)
World Atlantic Airlines

Incremental Expense Forecast

Sixth Aircraft

12 months period

Sixth (6th) Sixth (6th) Sixth (6th) Sixth (6th) Sixth (6th) Sixth (6th) Sixth (6th) Sixth (6th) Sixth (6th) Sixth (6th) Sixth (6th) Sixth (6th) Total

A/C A/C A/C A/C A/C A/C A/C A/C A/C A/C A/C A/C 12 months

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 forecast

Rent 95000 95000 95000 95000 95000 95000 95000 95000 95000 95000 95000 95000 1140000

Pilots and copilots 25450 25450 25450 25450 25450 25450 25450 25450 25450 25450 25450 25450 305400

 PerDiem/Other Remuneration-Crew 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000

Travel expenses 500 500 500 500 500 500 500 500 500 500 500 500 6000

 Flight crew meals 500 500 500 500 500 500 500 500 500 500 500 500 6000

Aircraft insurance 46000 46000 46000 46000 46000 46000 46000 46000 46000 46000 46000 46000 552000

Pre-operating expenses - training 64000 0 0 0 0 0 0 0 0 0 0 0 64000

Subtotal: Flying operations 233,450 169,450 169,450 169,450 169,450 169,450 169,450 169,450 169,450 169,450 169,450 169,450 2,097,400

Maintenance management and staff salaries 16425 16425 16425 16425 16425 16425 16425 16425 16425 16425 16425 16425 197100

Monthly maintenance cost (from current ops) 94661 94661 94661 94661 94661 94661 94661 94661 94661 94661 94661 94661 1135932

Pre-operating 60000 0 0 0 0 0 0 0 0 0 0 0 60000

Subtotal: Maintenance 171,086 111,086 111,086 111,086 111,086 111,086 111,086 111,086 111,086 111,086 111,086 111,086 1,393,032

 Flight Attendand/PerDiem 2300 2300 2300 2300 2300 2300 2300 2300 2300 2300 2300 2300 27600

 Other Supplies 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000

 Flight crew meals 150 150 150 150 150 150 150 150 150 150 150 150 1800

Flight attendants for additional aircraft 22900 22900 22900 22900 22900 22900 22900 22900 22900 22900 22900 22900 274800

Travel expense and other expenses 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 14400

Pre-operating- Training 24200 0 0 0 0 0 0 0 0 0 0 0 24200

Subtotal: Passenger service 51,750 27,550 27,550 27,550 27,550 27,550 27,550 27,550 27,550 27,550 27,550 27,550 354,800

Travel Expenses 40 40 40 40 40 40 40 40 40 40 40 40 480

PerDiem/Other Remuneration 250 250 250 250 250 250 250 250 250 250 250 250 3000

 Other Communications 845 845 845 845 845 845 845 845 845 845 845 845 10140

 Weather Service 400 400 400 400 400 400 400 400 400 400 400 400 4800

Other expenses 5200 5200 5200 5200 5200 5200 5200 5200 5200 5200 5200 5200 62400

 Flight plans and runway report 940 940 940 940 940 940 940 940 940 940 940 940 11280

 Aircraft parking fees 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 2700 32400

Subtotal: A/C and traffic services 10,375 10,375 10,375 10,375 10,375 10,375 10,375 10,375 10,375 10,375 10,375 10,375 124,500

 Bank charges-Wire transfers 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000

 Drug & Alcohol Testing 400 400 400 400 400 400 400 400 400 400 400 400 4800

 Travel expenses 600 600 600 600 600 600 600 600 600 600 600 600 7200

 Telephone/ Fax expenses 600 600 600 600 600 600 600 600 600 600 600 600 7200

 Cellular phones 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000

 Data communication 100 100 100 100 100 100 100 100 100 100 100 100 1200

 Security 80 80 80 80 80 80 80 80 80 80 80 80 960

 Payroll processing fees 330 330 330 330 330 330 330 330 330 330 330 330 3960

 Others services purchased 1360 1360 1360 1360 1360 1360 1360 1360 1360 1360 1360 1360 16320

 Office supplies 700 700 700 700 700 700 700 700 700 700 700 700 8400

 Other supplies 80 80 80 80 80 80 80 80 80 80 80 80 960

 Health insurance 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800 45600

 Workmen compensation 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000

Payroll taxes for additional personnel 4955 4955 4955 4955 4955 4955 4955 4955 4955 4955 4955 4955 59460

Pre-operating 50000 0 0 0 0 0 0 0 0 0 0 0 50000

Subtotal: General and admin 68,005 18,005 18,005 18,005 18,005 18,005 18,005 18,005 18,005 18,005 18,005 18,005 266,060

TOTAL: MONTHLY EXPENSES 534,666 336,466 336,466 336,466 336,466 336,466 336,466 336,466 336,466 336,466 336,466 336,466 4,235,792