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### February 13,2015 Brett Kruger, Chief Special Authorities Division Office of Aviation Analysis , X-46 U.S. Department of Transportation 1200 New JerseyAvenue,S.E. Washington, D
. C. 20590 Re: Waiver Application of Charter Air Transport, Inc. d/b/a Via Airlines 

### Dear Mr. Kruger: Pursuant to sections 212
. 12 and 380.3(e) of the Department's regulations, Charter Air Transport, Inc. d/b/a Via Airlines ( "Via Airlines") requests a waiver from section 212.7 and Part 380, to the extent necessary, to permit Via Airlines, a commuter air carrier, to operate direct sale public charters. As discussed below, grant . of this waiver will not result in any consumer harm and is in the public interest. Via Airlines holds a Commuter Air Carrier Authorization issued by the Department; see 

### Order 2011-4-11 (Apr. 8, 2011). Pursuant to this authority, Via Airlines has operated regular and frequent charter flights for numerous public charter operators utilizing primarily its 30-seat EMB-120 aircraft
. Having gained extensive operational experience and an understanding of the relevant markets, Via Airlines would like the ability to offer to the public and operate its own direct sale public charter flights. However, the ability to organize and operate direct sale public charters, which arises under section 212.7, is provided only to certificated and foreign air carriers , excluding commuter air carriers , such as Via Airlines , that hold Department fitne-ss determinations. This waiver seeks to eliminate that regulatory quirk as applicable to Via Airlines. Grant of this waiver would be in the public interest for the following reasons: 1. There is no likelihood of consumer harm. Currently, for U
. S. carriers , section 212
.7 's applicability is limited to certificated air carriers, i.e., holders of a certificate of public convenience and necessity. Such carriers have undergone a lengthy vetting by the Department, which involves a review of the carrier's financial position, managerial experience, and compliance disposition, and have been found fit to operate the scheduled and/or charter service applied for. One of the stated goals of the Department's fitness review process is to determine whether the carrier "has sufficient financial resources to commence the operations proposedMr. Brett Kruger

February 13 ,2015 Page 2 without posing an undue risk to consumers or their f unds. " Order 2010-3-8 at 1 (Mar
. 8 ,2010). Additionally, the Department periodically undertakes continuing fitness reviews to assure that such carriers remain fit to hold their certificates , including a review of the carrier's financial position to confirm there continues to be no undue risk to consumers or their f unds
. Applicants for Commuter Air Carrier Authorizations undergo the same fitness review by the Department as applicants for certificates of public convenience and necessity
. Indeed, by Order 2011-4-11, the Department found Via Airlines " fit to commence its commuter operations
. " Furthermore, the Department recently undertook a continuing fitness review of Via Airlines, with no concerns identified: There is no likelihood of consumer harm for the additional reason that Via Airlines will comply with the requirements of section 2 12.7(b) , including the establishment of a depository agreement governing an escrow account at an FDIC-insured bank into which passenger payments will be placed, and the establishment of a $200,000 security instrument to backstop Via Airlines ' contractual and regulatory responsibilities to charter participants. When revising Parts 212 and 380 in 1998, the Department determined that " even though [certificated] carriers have been subjected to a 'fitness' evaluation by the Department, the charter participants ' f unds should continue to be protected" through the use of a depository agreement and security instrument. 63 Fed. Reg. 28225 , 28237 (May 22, 1998). Via Airlines will comply with the identical requirements for the protection of participant funds currently imposed on certificated air carriers operating direct sale charters, and on public charter operators . 2
. Grant of this waiver would benefit small communities and the businesses and residents that comprise them. Under the requested waiver, Via Airlines intends to f ile one or more direct sale public charter prospectuses serving up to several small communities. Over the last decade, rising operational costs have forced legacy carriers and their regional-carrier affiliates to transition to larger aircraft and reduce or eliminate service to smaller communities where operation of such aircraft is not economically feasible. Via Airlines believes it can help fill this void through direct sale public charters utilizing 30-seat EMB-120 aircraft. As one example, several communities eligible for Essential Air Service (EAS) have reached out to Via Airlines to explore the possibility of Via Airlines' operating direct sale public charter flights under the Alternate Essential Air Service Program, which specifically contemplates public charter service in lieu of traditional EAS. These communities believe Via Airlines can provide better and more cost-effective service than is otherwise available
. For the affected communities, that would mean lower prices and more service options for consumers , as well as better use of the Essential Air Service program's limited resources, all of which is in the public interest. 3. Grant of this waiver would benefit the owners and lessors of EMB-120 aircraft, the parts manufacturers and repair facilities that maintain them, and the pilots and flight attendantsMr. Brett Kruger

February 

### 13, 2015 Page 3 who crew them. The market for smaller regional transports, such as the EMB-120, is shrinking rapidly as the primary operators of these aircraft, i.e. regional affiliates of legacy airlines , divest themselves of smaller equipment and move into large aircraft. Instead of consigning these valuable aircraft to desert storage, Via Airlines

- provided it has the ability to operate direct sale public charters

- can purchase or lease and redeploy them to serve small communities where they will have the greatest benefit. Via Airlines' continued operation of these aircraft would have the additional benefit of helping to support a market for the parts manufacturers and repair facilities that maintain the aircraft and for the crews who operate them

- a market that otherwise may disappear along with the employment opportunities that go with it. For the reasons set forth above, grant of the requested waiver is in the public interest. Payment in the amount of $39.00 for the waiver application fee has been submitted via pay .gov, confirmation of which is enclosed. Thank you for your time and attention, and please let us know if you have questions or need additional information. Sincerely,



# ~ a.~(l.) 'Y6-M) ~6

-~ Aaron A. Goerlich Jason E. Maddux GAROFALO GOERLTCH HAINBACH PC Counsel for Charter Air Transport , Inc
. Enclosure

cc: Reather Flemmings (DOT } Lisa Swafford-Brooks (DOT) DOT Dockets