Order 2011

- 9

- 1

Served: September 2, 2011

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 N UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 2 nd day of September, 2011

Fitness Determination of

SCHUMAN AVIATION COM PANY LTD.

d/b/a MAKAN I KAI HELICOPTERS

d/b/a KO OLINA HELICOPTERS

d/b/a PACIFIC AIR EXPRESS

d/b/a MAKANI KAI AIR CHART ERS

as a commuter air carrier under section 49 U.S.C. 41738 Docket DOT

- OST

- 2010

- 0006

ORDER CONFIRMING ORAL ACTION AND
ISSUING EFFECTIVE COMMUTER AUTHORIZATION

Summary

By this order, we (1) confirm our oral action of August 26 , 2011

, making the commuter

authorization issued to Schuman Aviation Company Ltd. d/b/a Makani Kai Helicopters d/b/a Ko Olina Helicopters d/b/a Pacific Ai r Express d/b/a Makani Kai Air Charters (“Schuman Aviation”) effective on that date and (2) reissue Schuman Aviation ’s commuter air carrier

authorization to reflect its effective date

.

Background

By Order 20 10

- 8

- 1

, issued August 6, 2010 , the Department f ound Schuman Aviation fit to conduct scheduled passenger service as a commuter air car rier. Under the terms of

Order 2010

- 8

- 1 , the authority would become effective on the sixth (business day) after we had received (1) a copy of the air carrier’s Air Carri er Certificate and Operation Specifications from the Federal Aviation Administration (FAA) authorizing such operations , (2) evidence of liability insurance coverage that meets the requirements of section 205.5(b) for all its aircraft, (3) a

statement of an y changes it had undergone in areas affecting its fitness subsequent to the

issuance date of the Show Caus e Orde r in this case (Order 2010

- 6

- 1 7 ), and (4) updated financial

information and evidence that the air carrier still had available to it funds suffic ient to meet the Department’s financial fitness criteria.

On August 1, 2011

, Schuman Aviation provided a copy of its Air Carrier Certificate and Operations Specifications evidencing that the air carrier had been authorized by the FAA to2

engage in schedule d passenger operations , as well as a Certificate of Insurance (OST Form 6410) evidencing liability insurance meeting the requirements of 14 CFR 205.5(b)

.

On August 3, 2011, Schuman Aviation requested a waiver from section 204.7 of our rules (14 CFR 204. 7), which provides that an air carrier’s authority will be revoked for dormancy if it does not commence operations within one year of being found fit, that is by August 6, 2011, in

Schuman Aviation’s case. By l etter dated August 4 , 2011, we granted Schuma n Aviation ’ s request for a waiver from section 204.7 and an ex tension until August 26, 2011 , to make its authority effective.

O n August 23, 2011, Schuman Aviation provided the remaining information necessary to make its authority effect ive

, including upda ted financial information and a statement that it had undergone no changes in ownership, compliance history, operating plans or financial posture

since the issuance of the Show Cause Order.

FITNESS UPDATE

Schuman Aviation identified several changes in its key personnel since the issuance of the Show

Cause Order. Sp ecifically, Messrs. Richard Pellegrino and Bruce Mayes have assumed positions as the air carrier’s Director of Maintenance and Chief Pilot, respectively.

Mr. Richard Pellegrino , an Airfram e and Powerplant M echanic and Private Pilot with more than

40 years of experience in aviation maintenance , joined Schuman Aviation in July 2011 as it

Director of Maintenance. Prior to this, he was employed by Kam Air, an aviation maintenance

company, as a Company Representative (2008

- 2009) and by Aloha Airlines as an Aircraft Maintenance Supervisor and Maintenance Controller (1987

- 2008).

Mr. Bruce M ayes joined Schuman Aviation in July 2011 as i ts Chief Pilot. In addition to his duties as responsibilities at Schuman Aviation, he is also President of Vintage Aviation, LLC, a comprehensive aviation consulting firm, and owner of Pacific Warbirds, a vintage aircraft charter

company

. Mr. Mayes has been employed by numerous airlines and aviation companies in hi s career of more than 36 years as a fixed wing and helicopter pilot, including Aloha Airlines

, where he served as a Boeing 737 pilot for more than 22 years (1986

- 2008).

Schuman Aviation notes that each of the above key personnel are U.S. citizens and that they have been found qualified by the FAA to hold their respective positions.

Upon our review of the above changes in key personnel and other information provided by

Schuman Aviation , we concluded that the air carrier remained fit to conduct its propos ed commuter operations. Therefore, on August 26, 2011 , we orally advised Schuman Aviation that we were making its commuter authority effective on that date. By this order, we confirm our

oral action and reissue to Schuman Aviation its commuter air carrie r authorization to reflect its

effective date.3

ACCORDINGLY: Acting under authority assigned by the Department in its regulations,

14 CFR 385.12:

1. We confirm our oral action of August 26, 2011 , making the commuter authority issued to

Schuman Aviation C ompany Ltd. d/b/a Makani Kai Helicopters d/b/a Ko Olina Helicopters d/b/a Pacific Air Express d/b/a Makani Kai Air Charters effective on that date.

2

. We reissue the Commuter Air Carrier Authorization issued to Schuman Aviation Company

Ltd. d/b/a Makani K ai Helicopters d/b/a Ko Olina Helicopters d/b/a Pacific Air Express d/b/a Makani Kai Air Charters by Order 2010

- 8

- 1 , in the attached form to reflect its effective date

.

3. Should Schuman Aviation Company Ltd. d/b/a Makani Kai Helicopters d/b/a Ko Olina

He licopters d/b/a Pacific Air Express d/b/a Makani Kai Air Charters propose to institute operations that would require Part 121 certification from the FAA, we direct it to notify the Department in writing at least 45 days prior to the proposed change in oper ations and demonstrate its fitness to conduct such operations before their commencement.

4

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

Persons entitled to petition the Department for review of this order under the Departmen t’s Regulations, 14 CFR 385.30, may file their petitions within 10 days of the service date of this

order.

The action confirmed in this order was effective when taken and the filing of a petition for

review shall not alter its effectiveness.

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

# Commuter Air Carrier Authorization

SCHUMAN AVIATION C OMPANY LTD.

d/b/a MAKANI KAI HELICOPTERS

d/b/a KO OLINA HELICOPTERS

d/b/a PACIFIC AIR EXPRESS

d/b/a MAKANI KAI AIR CHARTERS

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 Transportat ion.

By Direction of the Secretary

Issued by Order 2011

- 9

- 1 Todd M. Homan

On September 2, 2011 Director Effective August 26 , 2011 Office of Aviation AnalysisAttachment *As reissued by Order 2011

- 9

- 1



### Terms, Conditions, and Limitations

SCHUMAN AVIATION COMPANY LTD.

D/B/A MAKANI KAI HEL I COPTERS

D/B/A KO OLINA HELIC OPTERS

D/B/A PACIFIC AIR EX PRESS

D/B/A MAKANI KAI AIR CHARTERS

is authorized to engage in scheduled passenger air transportation operations as a commuter air

carrier.

This authority is subject to the following provisions:

(1) The holder's authority under this certificate is effective 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

. ∗ ∗

(2) The holder ’s authority is limited 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 certificati on 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 sha ll at all times conduct its operations in accord ance with the requirements of 14 CFR Part 298 and any other regulations prescribed by the Department of Transportation for the services authorized here, and with such other reasonable terms, conditions, and

l imitations as the Department of Transportation may prescribe in the public interest.

( 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 liability insura nce covera ge as required under 14

CFR Part 205. Failure to maintain such insurance coverage will render this authority ineffective, and this or other failure to comply with the provisions of Subtitle VII of Title 49 of the

∗ ∗ To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charter flights) to or from a foreign airport,

co ntact 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

United States Code or the Depart ment's regulations shall be sufficient grounds to revoke this authority.

(7

) 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 regulations

iss ued by the Department of Transportation under that section.

(8 ) 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 Air Transportati on 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 20 4.2(l)), it must first com ply 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 the 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

SCHUMAN AVIATION COMPANY LTD.

D/B/A MAKANI KAI HEL ICOPTERS

D/B/A KO OLINA HELIC OPTERS

D/B/A MAKANI KAI AIR CHARTERS

D/B/A PACIFIC AIR EX PRESS

RICHARD SCHUMAN

PRESIDENT

SCHUMAN AVIATION COMPAN Y LTD

130 IOLANA PLACE

HONOLULU HAWAII 96819 PETER LYNCH AGC

- 300

ASST CHIEF COUNSEL FOR ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

WILLIAM J WEBER

CERTIFICATION SECTION MANAGER

FAA AFS

- 900

45005 AVIATION DRIV E SUITE 131

DULLES VA 20166 GINO REZZONICO

PRINCIPLE OPERATIONS INSPECTOR

FEDERAL AVIATION ADM INISTRATION

HONOLULU FSDO

135 NAKOLO PLACE

HONOLULU HAWAII 9681 9

ANNE SUISSA RTS

- 42

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS E

- 34

1200 NEW JERSEY AVE SE

WAS HINGTON DC 20590 BERNARD STANKUS

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS RTS

- 42

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

CLAY MORITZ

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS RTS

- 42

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590 GREG WALDEN

PATTON BO GGS LLP

2550 M STREET NW

WASHINGTON DC 20037