LAw OFFICES

GAROFALO GOERLICH HArNBACH PC

1200 NEW HA~1PSHIRE AVENUE NW' SUITE 590· WASHINGTON DC 20036-6802

TELEPHONE 202 776-3970' FACSLMILE 202 776-3975

WWW.GtiH-AIRL\W·.CClM

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 .ofthis 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 proposed
Mr. Brett Kruger

February 13,2015

Page 2

without posing an undue risk to consumers or their funds." 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 funds.

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 212.7(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' funds

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 file 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 attendants
Mr. 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