Order 2010

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- 34

Served: September 30 , 2010

UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

o n the 30 th day of September , 2010

Application of

CARIBBEAN SUN AIRLINES,INC.
d/b/a WORLD ATLANTIC AIRLINES
d/b/a WAA

for issuance of an amended certificate of public convenience and necessity under 49 U.S.C. § 41102 to engage in foreign scheduled air transportation of persons, property, and mail Docket DOT

- OST

- 2001

- 11164

Docket DOT

- OST

- 2001

- 11198

ORDER CONFIRMING ORAL ACTION

AND ISSUING EFFECTIVE CERTIFICATE

Summary By t his order, we (1) confirm our oral action of September 24, 2010

, making the authority of
Caribbean Sun Airlines, Inc

. (“CSA”)

, to operate one larg e aircraft 1 in foreign air transportati on of persons, property, and mail effective for charter operations and (2) reissue the air carrier’s

certificate to reflect its effect iveness on that date

.

Background

By Order 2002

- 12

- 18 , issued December 26, 2002 , the Department found CSA fit to engag e in interstate and foreign scheduled passenger operations utilizing small aircraft 2 and issued to it

certificate s for such operations

.

On January 14, 2009 , CSA sought to amend its certificate to allow it to conduct foreign

scheduled air transportation using one large aircraft

. 3 By Order 2010

- 3

- 7

, issued March 8, 2010

, we found the air carrier fit to operate foreign scheduled air operations and issued it a certificate of public conveni ence and necessity to engage in foreign scheduled air transportation of person s
,

1 Large aircraft are aircraft originally designed to have a minimum seating capacity greater than 60 passenger seats or 18,000 pounds payload capacity.

2 Small aircraft are aircraft originally designed to have a maximum seating capacity of less than 60 passenger seats or 18,000 pounds payload capacity.

3 See Order 2009

- 10

- 12 dated October 22, 2009, revoking CSA’s Interstate Scheduled Certificate Authority for reason of dormancy.2

property, and mail between the United States, on the one hand, and the Dominican Republic, on

the other hand , usin g one large aircraft.

. CSA ’s authority to operate larg e aircraft in foreign scheduled operations was to become effective six (business) days after the Department received, (1) a copy of CSA’s 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, (3) updated fitness informati on describing any ch anges CSA may have undergone subsequent to the show cause order in this proceeding, and (4) evidence that CSA continued to have sufficient funding to meet our financial

fitness criteria.

FITNESS UPDATE

On June 14 and July 9, 2010

, CSA identified three changes in its key management personnel. Specifically, Mr. Tom B. Van Halm replaced Mr. Raul Mendez as Chief Pilot ; Mr . Ray T. Bradley replaced Mr. Thomas J. Andino as Director of Maintenance ; and M r. Glenn DeLaney replaced Mr. Thomas H. Cragg as D irector of Quality. We note that each have been approved by the FAA to hold their respective positions.

Mr. Van Halm , a citizen of the Netherlands and a non

- U.S. resident of the United States

, has been approved by t he FAA to hold the position of Chief P ilot. Mr. Van Halm is type rated on B727, B737, B747, DC

- 9 and DC

- 10 jet aircraft and has over 12,200 hours as Pilot in Command. He was previously with Falcon Air Express (2000

- 2010) as Chief Pilot, Check Airman, and Captain. He also served as a First O fficer with Challenge Air Cargo (1996

- 2000), and as a Captain and Line Check Airman with American Eagle (1987

- 1996).

Mr. Bradley, an Airframe and Powerplant Mechanic, is a U.S. citizen . Prior to join in g CSA as Director of Maintenance, he was employed as Director and Manager of Maintenance with Centurion Air Cargo (2005

- 2010), Planet Airways (2003

- 2005), and Miami Air International (2000

- 2002). He was also Mainte n ance Controller with Miami Air International (1997

- 2000) and held various positions of increasing responsibility at Trans World Airlines , including

Aircraft Maint e nance Crew Chief, Lead A&P Mechanic, and Hanger/Line Mechanic (1966

- 1997). Mr. Bradley also served in the U.S. Army, retiring with the rank of Sergeant.

Mr. DeLaney, CSA’s Direc tor of Quality and Regulatory Affairs since 2009, was previously Director of Safety with Kalitta Charters II (2006

- 2009), a Quality Assuran ce Technical and C.A.S.E Auditor and Hangar Foreman for Spirit Airlines (2002

- 2005 and 1996

- 2000), an d an Inspector/V endor Auditor for USA Jet Airlines (2000

- 2002). Mr DeLaney holds an Airframe and Powerplant license and is a U.S. citizen

.

CSA provided information that states that there are no actions, outstanding judgments, charges of unfair, deceptive, or anticompeti tive business practices, or of fraud, felony or antitrust violations against Messrs

. Van Halm, Bradley, a n d DeLaney, nor are there any pending investigations, enforcement actions, or formal complaints filed by the Department against them with respect to

co mpliance with the Statute or the Department’s regulations.3

O n September 20, 2010, CSA provided to the Department OST Form 6410, evidencing liability insurance that meets the requirements of 14 CFR 205.5(b), and an updated copy of its Operati on Specifications from t he FAA authorizing it to operate large aircraft in Supplemental Operations

. 4 CSA states that, although it still plans to provide the foreign scheduled passenger operations for which it was initially found fit , the air carrier request s that the Department make its certificate authority effective to the extent necessary to allow it to conduct foreign charter services

.

CSA also provided updated information regarding the pre

- operating expenses it has incurred thus

far

. A s of September 21, 2010

, it ha d incurred $4.3 million in pre

- operating expenses

, of which $129,319 remains. The air carrier expects to incur approximately $7.6 million in first

- year charter expenses. Based on this information, CSA needs $2.04 million to meet our financ ial

fitness test. 5

In support of its ability to fund its proposed operations, CSA provided third

- party verification

from Regions Bank showing that it has access to $761,852 on deposit, and provided letters from Miami Tech Line Maintenance Inc., and Southcoast AeroMarine Insurance stating that lines

- of

credit had been extended to CSA for $1.0 million and $575,000 respectively. CSA submitted verification on September 21, 2010, that these lines

- of

- credit had not yet been drawn down

.

We have reviewed the forecast s provided by CSA and find them to be reasonable. Moreover, we

have reviewed CS A’s financial commitments available and find them sufficient to fund the air carrier’s charter operation

.

Based on our review of the updated fitness information provided by CSA, we concluded that the

air carrier remain s a U.S. citizen and was fit to commence operations . Additionally, our review of the insurance and FAA documentation provided by CSA is satisfactory. Under these circumstances, on September 24, 201 0, w e orally advised CSA that we would make its au tho rity effective on that date, limited to c har ter operations with the one aircraft initially proposed. Should CSA wish to expand its charter services beyond this one aircraft, it will need to provide

the Department with at least 45 days’ advance notice and demonstrate its fitness for such expansion. We also remind CSA that the effectiveness of its authority to conduct operations under its foreign certificate continues to be conditioned upon its providing the Department with updated information that the air carrier remains a U.S. citizen and is fit for such services. 6

By this or der, we confirm our oral action of September 24 , 201 0

, and reissue CSA ’s foreign

certificate to reflect the effectiveness for charter operations using one larg e aircraft

.

4 See 14 CFR § 119.3 (2)(i). Supplemental operation includes, among other things, operations for which the departure time, departure location, and arrival location are specifically negotiated with the customer or the customer’s representative.

5 The $2.04 million n oted here is comprised of the applicant’s forecast of approximately $129,319 in pre

operating expenses remaining to be paid, plus $1.9 million, which is one

- quarter of its estimated $7.6 million in

first

- year charter expenses

. 6 This shall include, but not necessarily be limited to, information detailing the expenses incurred, or to be incurred, in connection with such services, evidence that the air carrier has raised all required funding, and information as to any changes in its ownership, management p ersonnel, or compliance posture.4

ACCORDINGLY

,

1

. We confirm our oral action of September 24 , 2010, making the authority contained in the foreign certificate issued to Caribbean Sun Airlines, Inc., by Order 2010

- 3

- 7, effective for charter operations using one large aircraft

,

2

. We reissue the foreign certificate issued to Caribbean Sun Airlines, Inc., to reflect its effectiveness for charter operations using one large aircraft.

3. We direct Caribbean Sun Airlines , Inc., to submit to the Air Carrier Fitness Division a first year progress report within 45 days following the end of its first year of actual flight operations using large aircraft

. 7

4

. We direct that, s hould Caribbean Sun , Inc., propose to increas e its fleet to more than one large aircraft

, it must first notify the D epartment in writing 45 days prior to the proposed operation and demonstrate its fitness to conduct such operations before their commencemen t. 8

5

. We will serve a copy of this order on the persons listed in Attachment A

.

By:

TODD M. HOMAN

Director Office of Aviation Analysis

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov

7 The report should 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 changes it anticipates from its current operations during its second year, current financial statements, and a listing of current senior management and key technical personnel. The air

carrier s hould also be prepared to meet with staff members of the Fitness Division to discuss its current and future operations.

8 This notice should be submitted to the Air Carrier Fitness Division. The air carrier may contact the Air Carrier Fitness Division pr ior to submitting its notice to determine what fitness information must be provided.

# Certificate of Public Convenience and Necessity for

Foreign Air Transportation

(as reissued)

This Certifies That



## CARIBBEAN SUN AIRLINES, INC.

d/b/a WORLD ATLANTIC AIRLINES

d/b/a WAA

is authorized, subject to the provisions of Subtitle VII of Title 49 of United States Code, the orders, rules, and regulations issued thereunder, and the attached Terms, Conditions, and Limi tations , to engage in foreign air transportation of persons, property, and mail.

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

By Direction of the Secretary

Issued by Order 2010

- 9

- 34 Todd M. Homan

On September 30

, 2010 Director Effective on (S e e A ttached) Office of Aviation Analysis2



### Attachment

 As reissued by Order 2010

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### Terms, Conditions, and Limitations

CARIBBEAN SUN AIRLINES, INC.

d/b/a WORLD ATLANTIC AIRLINES

d/b/a WAA

is authorized to engage in foreign air transportation of persons, property, and mail:

Between any place in the United States and any place outside thereof.

This authority is subject to the following provisions:

(1) (a) The holder’s authority to conduct foreign charter air transportation of persons, property, and mail under this certificate became effective on September 24 , 2010.

(b) The holder’s authority to conduct scheduled air transportation of persons, property, an d mail under this certificate shall become effective at such time as the Department has received updated fitness information from the holder and has determined that the holder remains a citizen of the United States and is fit to conduct such scheduled serv ices.

( 2 ) Pending receipt of effective scheduled authority, the holder may not accept payment of any kind (i.e., cash, check, or credit card), or issue tickets for any scheduled operations proposed under this certificate, and any advertisement by the holder must prominently state: “This service is subject to receipt of government operating authority.”

(3) The holder shall at all times conduct its operations in accordance with the regulations prescribed by the Department of Transportation for the serv ices authorized by this certificate, and with such other reasonable terms, conditions, and limitations as the Department of Transportation may prescribe in the public interest.

( 4 ) The holder shall at all times conduct its operations in accordance with al l treaties and agreements between the United States and other countries, and the exercise of the privileges granted by this certificate is subject to compliance with such treaties and agreements and with any order of the Department of Transportation issued under them. To the extent that the holder has authority to serve more than one country or points in more than one country on the same route segment, that authority does not confer upon the holder any additional rights (including fifth

- freedom intermediate and/or beyond rights) in limited

- entry markets unless the Department has completed any necessary carrier selection procedures to determine which carrier(s) should be authorized to exercise such rights and has notified the foreign country(ies) involved tha t any such selected carrier(s) has the required authority. In such cases, the fact that the carrier may hold authority to serve the countries (points) at

 This certificate is being reissued to reflect its effective date.3

issue on the same segment will not be considered as providing any preference to the holder in a carrie r selection proceeding.

( 5 ) The exercise of the authority granted here is subject to the holder's first obtaining from the appropriate foreign governments such operating rights as may be necessary.

( 6 ) The holder's authority under this certificate is eff ective 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 a t 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 a c ertificate 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 certificate.

( 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.

( 1 0 ) In the event that the holder commences but subsequently ceases all operations for which it was found "fit, willing, and able," its authority under this certificate 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 the Department. Moreover, if the holder does not resume operations within one year of its cessation, its authority shall be revoked for dormancy.

  To assure compliance with all applicable U.S. Government requirements concerning security, the hold er 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 deter mined that security is adequate to allow such airport(s) to be served.Attachment A

SERVICE LIST FOR

CARIBBEAN SUN AIRLINES , INC.

d/b/a WORLD ATLANTIC AIRLINES

d/b/a WAA

MR PIERRE MURPHY

LAW OFFICES OF PIERRE MURPHY

1200 NEW HAMPSHIRE AVENUE NW

SUITE 800

WASHINGTON DC 20036 M S MARIANNE SEGUIN , RTS

- 42

OFFICE OF AIRLINE INFORMATION

DOT/RSPA/BTS E

- 36

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590 REGIONAL COUNSEL

SOUTHERN REGION

FEDERAL AVIATION ADMINISTRATION

PO BOX 20636

ATLANTA GA 30320

MR JOSEPH FERNANDEZ

PRESIDENT AND CEO

CARIBBEAN SUN AIRLINES INC

POST OFFICE BOX 660479

MIAMI SPRINGS FL 33266

- 0479 MR CLAY MORITZ , RTS

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OFFICE OF AIRLINE INFORMATION

DOT/RSPA/BTS E

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1200 NEW JERSEY AVE SE

WASHINGTON DC 20590 MR WILLIAM J WEBER

CERTIFICATION SECTION

MANAGER

FAA AFS

- 900

45005 AVIATION DRIVE SUITE 131

DULLES VA 20166

MR VINCENT ROSSI

FEDERAL AVIATION

ADMINISTRATION

8600 NW 36 STREET

SUITE 300

MIAMI FL 33166 MR BERNARD STANKUS , RTS

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OFFICE OF AIRLINE INFORMATION

DOT/RSPA/BTS E

- 36

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590