Order 2012

- 12

- 07

Served: December 14, 2012

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 14 th day of December

, 2012

Application of

BOUTIQUE AIR, INC.

for authority to engage in scheduled passenger operations as a commuter air carrier under

49 U.S.C. § 41738 Docket DOT

- OST

- 2012

- 0 108

FINAL ORDER

By Order 2012

- 11

- 32 , issued on November 29 , 2012

, we directed all interested persons to show cause why we should not make final our tentati ve findings and conclusions that Boutique Air,

Inc.

, is fit, willing, and able to provide scheduled passenger service as a commuter air carrier using small aircraft pursuant to Part 135 of the Federal Aviation Regulations. Interested persons were given 14 days to file objections to the order.

No objections to the show cause order were received.

ACCORDINGLY,

1. We find that Boutique Air, Inc.

, is fit, willing, and able under 49 U.S.C. § 41738 to provide scheduled passenger service as a commuter air carr ier using small aircraft pursuant to Part 135 of the Federal Aviation Regulations , subject to conditions

.

2. We issue a Commuter Air Carrier Authorization to Boutique Air, Inc.

, subject to the Terms, Conditions, and Limitations attached.

3. We will s erve 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

# Commuter Air Carrier Authorization

BOUTIQUE AIR, INC.

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 Limit ations, 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 2012

- 12

- 07 Susan L. Kurland

On December 14

, 2012 Assistant Secreta ry for Effective (See Attached) Aviation and International Affairs

### Terms, Conditions, and Limitations

BOUTIQUE AIR, INC.

is authorized to engage in scheduled passenger air transportati on 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 followin g 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 own ership, 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 verific ation 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 eff ective 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 subj ect to receipt of government operating authority."

(3) The holder shall at all times conduct its operations in accordance with the require ments of

14 CFR Part 298 and any other regulations prescribed by the Department of Transportation for the

services a uthorized here, and with such other reasonable terms, conditions, and limitations as the Department of Transportation may prescribe in the public interest.

(4) The holder authority is limited to operations conducted pursuant to Part 135 of the Federal

Avi ation Regulations

. 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.2

( 5 ) The holder's authority under this certificate is effective on ly 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

. 

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

( 7 ) 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 authorit y 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.

( 8 ) In the event that the holder receives ef fective 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

r egulations 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 Ai r Transportation Compet ition 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 changes in its ownership, management, or operations (as that term is defined in 14 CFR 204.2(l)), it must first com ply with the requirements of

14 CFR 204.5.

(1 0 ) 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 th e 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 un der 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 such operations within one year of its cessation, its commuter

author ity shall be revoked for dormancy

.

 To assure compliance with all applicable U.S. Government requirements conc erning 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.Attachment A

SERVICE LIST FOR BOUTIQUE AIR, INC.

SHAWN SIMPSON

PRESIDENT

BO U TIQUE AIR, INC

340 PINE ST SUITE 503

SAN FRANCISCO

CA 94104

MARK MAZOR

MANAGER

CERTIFICATION & EVALUATION

PROG RAM

OFFICE

FAA AFS

- 900

45005 AVIATION DRIVE

SUITE 131 DULLES, VA 20166 PETER LYNCH AGC

- 300

ASST CHIEF COUNSEL FOR ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

GERALD GRISWOLD

PRINCIPAL OPERATIONS

INSPECTOR

S ACRAMENTO FSDO

1102 CORPORATE HIGHWAY

SUITE 200

SACRAMENTO CA 95831

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS RTS

- 42

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590