US. Department of 

Transportation 

Office of the Secretary 

of Transportation 

September 29, 20 II 

Mr. David Den Herder 

President 

Marceco Ltd. 

-+585 401h Street 

Grand Rapids, MI 495I2 

Dear Mr. Herder: 

1 200 New Jersey Avenue, SE 

Washington, DC 20590 

We have completed our initial review of the application filed by Marceco Ltd. ("Marceco") 

for the determination of its fitness to conduct interstate charter passenger operations as a 

certificated air carrier. This review has revealed the need for additional and/or clarifying 

information before we can complete processing of Marceco's application. The attached 

Information Request lists the areas where further and/or clarification information is 

necessary. I ask that you respond fully to this request within 30 days of the date of this 

letter. The original plus 6 copies of your response should be mailed to U.S. Department of 

Transportation, Docket Operations, (M-30, Room W12-140), 1200 New Jersey Avenue, 

S.E., West Building Ground Floor, Washington, D.C. 20590, or you may electronically file 

your response at www.regulations.gov. 

As is the Department's practice, further processing of Marceco's application will be 

deferred pending receipt of this material. In addition, please remember that Marceco 

should promptly provide the Department with any information regarding changes it may 

undergo in areas affecting its fitness (i.e., management, operating plans or financial 

condition, compliance disposition, or ownership) while its application is under review by 

the Department. 

Thank you for your cooperation in this matter. If you have any questions regarding this 

letter or the requested information, please feel free to contact me at (202) 366-9721. 

Damon Walker 

Transportation Industry Analyst 

Air CazTier Fitness Division 

Enclosure 
2 

cc: Docket DOT-OST-2011-0024 

Robet1 F. Helbing 

FAA Principle Operations Inspector 
INFORMATION REQUEST 

MARCECO, LTD. 

OWNERSHIP AND MANAGEMENT 

1. Please identify the members of the Board of Directors of Marceco. In addition, if not 

previously provided, identify the citizenship and provided a resume for each director. 

2. For each of the individuals identified i.n response to question 1 above, provide the 

compliance information required by section 204.3 (l), (m), (o), (p), and (q) of our 

rules (copy enclosed). 

3. Please provide a complete list of key personnel at Marceco and identify the position 

held and citizenship of each. 1 

4. Please provide a complete resume for David Den Herder. The resume should include 

the individual's full name, citizenship, current address, and telephone number, 

together with a detailed listing of all previous employment (both aviation and nonaviation) and education and training, including FAA certifications and license 

numbers if applicable. The employment listing should include the name of employer, 

location (city, state), type of business, position(s) held, description of responsibilities, 

and dates employed. Further, if the employer held any aviation authority, the type of 

authority held should be noted. 

5. Please identify the FAA certifications and license numbers held by Mr. Joseph 

Matthew. 

6. Please identify any blood or legal relationship between the owners of Marceco. 

FINANCIAL POSITION AND OPERATING PLANS 

1. Please provide a summary of Marceco's current operations, including the number of 

flights operated per month, the number of block hours flown per month, the number 

of passengers carried per month, and identify the DOT and/or FAA authority 

currently held. 

2. Please provide third-party verification of all cash deposits available to support 

Marceco's proposed operations. 

3. Please provide an income statement for the calendar year 2010. 

Section 204.2(i) of our rules defines key personnel as the directors. president, chief executive officer, 

chief operating officer, all vice presidents, the directors or supervisors of operations. maintenance, and 

fin:mce, and the chief pilot of the applicant or air carrier. as well as any part-time or full-time advisors or 

,_' P1sultants to the management of the applicant or air carrier, 
2 

4. Please provide an income statement for the 6-months ending June 30, 201 I. as well as 

a balance sheet dated June 30, 2011. 

COMPLIANCE DISPOSITION 

1. Part 203 of the Department's regulations requires that certain U.S. and foreign air 

carriers waive the passenger liability limits and certain carrier defenses in the Warsaw 

Convention in accordance with the provisions of A'greement 18900, dated 

May 13, 1966, and provides that the acceptance of authprity for;or operations by the 

carrier in, air transportation shall be considered to act as such a waiver by that carrier. 

Therefore we ask that Marceco file a copy of its signed counterpart of Agreement 

18900 (OST Form 4523) in Docket DOT-OST-1995-236. 

2. Section 41113 of the Statute requires certificated air carriers to develop and submit to 

the Department and the National Transportation Safety Board a plan ("accident plan") 

to address the needs of families of passengers and other victims involved in any 

aircraft accident involving an aircraft of the air carrier and resulting in major loss of 

life. Section 41113(c) prohibits the Department from approving an application for a 

certificate unless the applicant has filed an accident plan that meets the requirements 

of section 41113(b ). As a result, the Department will not be able to issue a final order 

regarding Marceco' s certification until this requirement has been met. Therefore we 

ask that Marceco promptly file a copy of its accident plan in the public docket 

established for these plans (Docket DOT -OST -96-1960), submit the required copy of 

this plan to the National Transportation Safety Board, and, at the same time, file a 

notice in Docket DOT-OST-2011-0024 stating that it has complied with the Accident 

Plan requirements. 

The information provided pursuant to this Information Request should be accompanied 

by the following certification: 

The contents of this application and the attached exhibit (s) are true and correct to 

the best of my knowledge and belief. Pursuant to Title 18 United States Code 

Section 1001, I [the individual signing the application, who shall be a principal 

owner, senior officer, or internal counsel of the applicant], in my individual 

capacity and as the authorized representative of the applicant, have not in any 

manner knowingly and willfully falsified, concealed or failed to disclose any 

material fact or made any false, fictitious, or fraudulent statement or knowingly 

used any documents which contain such statements in connection with the 

preparation, filing or prosecution of the application. I understand that an 

individual who is found to have violated the provisions of 18 U.S.C section 1001 

shall be fined or imprisoned not more than five years, or both. 
PART 204--DAT A TO SUPPORT FITNESS 

DETERMINATIONS 

Subpart A--General Provisions 

Sec. 

204. I Pu1pose. 

204.2 Definitions. 

Subpart 8--Filing Requirements 

204J Applicants for new certificate or commuter air carrier 

auth\Hity. 

204.4 C'aniers proposing to provide essential air service. 

204.5 Certificated and commuter air carriers undergoing or 

propm.ing to undergo substantial change in operations. ownership, 

or management. 

204.6 Ce!tlficated and commut.;r air carriers proposing a change in 

operations. ownership, or management which is not substantial. 

204.7 Revocation for dormancy. 

SUBPART A--GENERAL PROVISIONS 

Sec. 204.1 Purpose. 

This part sets forth the fitm:ss data that must be submitted by 

applicants for certificate authority. by applicants for authority to 

provide service as a commuter air carrier to an eligible place, by 

caniers proposing to prov1d.: css.:ntial air transportation, and by 

n:nificatcd air caniers ami wmmuter air carriers proposing a 

,ubstantial change in operation:,, ownership, or management. This 

pmt abo contains the procedures and filing requirements applicable 

to caniers that hold dormant authority. 

Sec. 204.2 Definitions, 

As u:...:d in this pan: 

(a) All-cargo air a11-riN or section 41103 carrier means an air 

catTier holding an all-cargo air transponation certificate issued under 

'c:ction --Ill 03 of th.: Statute authorizing the transportation by 

aircraft in interstate air tnmsportation of only property or only mail, 

or both. 

(hi rerrijicote ourltoritv means authority to provide air 

transpclllation grantc:d by the Department of Transportation or Civil 

Aeron:illtics Board in the fom1 uf a certificate of public convenience 

and tH:cc:,sity under section 41102 of the Statute or an all-cargo air 

tratbpu11ation certificate to perform all-cargo air transportation 

under :,c:ction 41 103 of the Statute. Certitkated carriers are those 

that huld certificate authority. 

(c) Ciri:en oflhe Unaed S1wes means: 

(I) An individual who i.s a citizen of the United States; 

(2) A pannership each of whose partners is an individual 

who i' a citizen of the Unit<.:d States; or 

( 3) A corporation or association organized under the laws 

of tht: l!nitcd States or a State, the District of Columbia, or a 

territory or possession of the United States, of which the president 

and at least two-thirds of the board of directors and other managing 

officers are citizens of the United States, and in which at least 75 

percent of the voting interest is owned or controlled by persons that 

are citizens of the United States. 

(d) CommU/er air carrier means an air carrier holding or 

seeking authority under pan 298 of this Chapter that canies 

passt:ngers on at least five round trips per week on at least one route 

between two or more points according to its published flight 

schedules that specify the times, days of the week, and places 

between which those flights are performed. 

(e) Eligible place means a place in the United States that--

(1) Was an eligible point under section 419 of the Federal 

Aviation Act of 1958 as in effect before October I, 1988; 

(2) Received scheduled air transportation at any time 

between January I, 1990, and November 4, 1990; and 

(3) Is not listed in Department of Transportation Orders 

89-9-37 and 89-12-52 as a place ineligible for compensation under 

Subchapter II of Chapter 417 of the Statute. 

(f) Essenlial air service is that air transportation which the 

Department has found to be essential under Subchapter II of Chapter 

417 of the Statute. 

(g) Fit means fit, willing, and able to perform the air 

transportation in question properly and to conform to the provisions 

of the Statute and the rules, regulations and requirements issued 

under the Statute. 

(h) lntersrare air tronsporrarion means the transportation of 

passengers or property by aircraft as a common carrier for 

compensation. or the transportation of mail by aircraft--

( I) Between a place in--

(i) A State, territory. or possession of the United States 

and a place in the District of Columbia or another State, territory, or 

possession of the United States; 

(ii) Hawaii and another place in Hawaii through the 

airspace over a place outside Hawaii: 

(iii) The District of Columbia and another place in the 

District of Columbia: or 

(iv) A territory or possession of the United States and 

another place in the same territory or possession; and 

(2) When any pan of the transponation is by aircraft. 

(i) Key personnel include the directors, president, chief 

executive officer, chief operating officer, all vice presidents, the 

directors or supervisors of operations, maintenance, and finance, and 

the chief pilot of the applicant or air carrier, as well as any pan-time 

or full-time advisors or consultants to the management of the 

applicant or air carrier. 

(j) Normali~ed opera/ions are those which are relatively free of 

stan-up costs and temporary barriers to full-scale operations posed 

by the carrier's limited experience. 

(k) Relevant corporations are the applicant or air carrier, any 

subsidiary thereof, any predecessor thereof (i.e., any air carrier in 

which any directors, principal officers or persons having a 

substantial interest have or once had a substantial interest), and any 

company (including a sole proprietorship or partnership) which has 

a significant financial or managerial influence on the applicant or air 

carrier. The latter includes; 

(I) Any company (including a :,ok proprietorship or 

partnership) holding more than 50 percent of thc uubtanding voting 

stock of the applicant or air can·ier; and 

(2) Any company (including a sol<: proprit:torship or 

partnership) holding between 20 percent and 50 pt:rc·t:nt of the 

outstanding voting stock of the applicant or air can·ier and which has 

significant inlluence over the applicant or air can·ier as indicat.:d, for 

example, by 25 percent representation on the board of directors. 

panicipation in policy-making processes, substantial inter-company 

transactions, or managerial personnel with common responsibilities 

in both companies. 

(I) Suhstanlial change in operations. mt·ncrship. nr 

management includes, but is not limited to, the following events: 

(I) Changes in operations from chancr to scheduled 

service, cargo to passenger service, short-haul to long-haul sen·icc. 

or (for a certificated air carrier) small-aircraft to large-aircraft 

operations; 

(2) The filing of a petition for reorganization or a plan of 

reorganization under Chapter I I of the federal bankmptcy laws; 

(3) The acquisition by a new shareholdc:r or the 

accumulation by an existing shareholder of beneficial control of I 0 

percent or more of the outstanding voting stock in tht: corporation: 

and 

(4) A change in the president. chief executive officer or 

chief operating officer. and/or a change in at least half of the other 

key personnel within any 12-month period or since its latt:st litness 

review, whichever is the more recent period. 

(m) Sulmanrial inreres/ means hcncficiall:ontrol of I 0 percmt 

or more of the outstanding voting stock. 

SUBP ARJ; B--FILING REQlJIImMENTS 

Sec. 204.3 Applicants for new certificate or commuter air 

carrier authority. 

An applicant for a type of cenificate authority it docs not 

cunently hold or for commuter air canicr authority shall file the 

data set forth in paragraphs (a) through (v) of this section. In 

addition, the Department may require an applicant tu provide 

additional data if necessary to reach an infonned judgment about 

its fitness. If the applicant has previously fom1ally filed any of tht: 

required data with the Department or with another Federal agency 

and they are available to the Department. and those data continue 

to retlect the cunent state of the can·icr's fitness, the applicant 

may instead identify the data and provide a citation for the datds) 

and place(s) of filing. Prior to filing any data, the applicant may 

contact the Air Canier Fitness Division to asce11ain what data 

required by this section arc already available to the Depanment 

and need not he included in the filing. 

Nore: If the applicant intends to usc as evidence data it has 

previously filed pursuant to part 241 reporting rt:quirt:mcnts and 

those data contain enors. the applicant must first file com:ctcd 

reports in accordance with Se\. 2~ 1.22( g). 

ll 

(a) The name, address. i\lldJclcphone number of the applicant. 

,· ~·:·. 
([1) The fom1 of the applicant\ organization. 

(C) The State law(s) undcr which the applicant is organized. 

((]) If the applicant is a corporation. a statement provided by 

the Ofllce of the Secretary of State. or other agent of the State in 

which the applicant is incorporated. certifying that the applicant 

cclrporation is in gaud stanc..ling. 

(e) A sworn affic..lavit :.tating that the applicant is a citizen of 

the llnitec..l States. 

I() The ic..lcntity of the key personnel who would be employed 

hy the applicant. including: 

(I ) Their names and addresses; 

(2) The expcncuce. expertise, and responsibilities of each; 

(3) The numl:>cr of shares of the applicant's voting stock 

held by each and the percentage of the total number of such shares 

is,ued and outstanding. and the citizenship and principal business of 

any person for whose account, if other than the holder, such interest 

is helc..l; 

(4) The citizenship of each; and 

( 5) A c..lescription of the officerships. directorships, shares 

of stock (if I 0 percent or more of total voting stock outstanding), 

anc..l other interests each holds ur has held in any air carrier, foreign 

air carrier, common carrier. person substantially engaged in the 

bu,incss of aeronautics or persons whose principal business (in 

puq1ose or fact) is the holding of stock in or control of any air 

carrier. common carrier or person substantially engaged in the 

businc" of aeronautics. 

(gl A list of all persons having a substantial interest in the 

applicant. Such li:;t shall include: 

(I) Each person's name. ac..ldress and citizenship; 

( 2) The number of shares of the applicant's voting stock 

hdc..l by each such person and the corresponding percentage of the 

total number of such shares issued and outstanding, and the 

cillzenship and principal busuw:.s of any person for whose account, 

tf other than the holder. such imercst is held; 

( 3) If any two or more persons holding a substantial 

tnterest in the applicatll are related by blood or marriage, such 

rdati<HJ,hip( s) shall be induc..led in the list; and 

( 4) If any person or subsidiary of a person having a 

:.ubstantial interest in the applicant is or has ever been 

(i) An air carrier. a foreign air carrier, a common 

carrier_ or 

( ii) Substantially engaged in the business of 

aeronautics, or 

(iii) An officer or director of any such entity, or 

(iv) A holder of 10 percent or more of total 

oubtanding voting stock of any such entity, the list shall describe 

such rdationship(s). 

(h) A list of the applicant\ subsidiaries. if any, including a 

dc,cription of each subsidiary's principal business and relationship 

to the applicant. 

( i) A list of the applic:ant's shares of stock in. or control of, any 

air carrier. foreign air can·ier, common carrier, or person 

substantially engaged in the business of aeronautics. 

(j) To the extent any relevant corporation has been engaged in 

any business prior to the filing of the application, each applicant 

shall provide: 

(I) Copies of the I OK Annual Reports filed in the past 3 

years by any relevant corporation required to file such reports with 

the Securities and Exchange Commission, and 

(2) Copies of recently filed I OQ Quarterly Reports, as 

necessary, in order to show the financial condition and results of 

operations of the enterprise current to within 3 months of the date of 

the filing of the application. 

(k) If I OK Reports are not filed with the Securities and 

Exchange Commission, the following, for the 3 most recent calendar 

or fiscal years. reflecting the financial condition and results of 

operations of the enterprise current to within 3 months of the date of 

the filing of the application: 

(I) The Balance Sheet of each relevant corporation; 

(2) The Income Statement of each relevant corporation; 

(3) All footnotes applicable to the fmancial statements, 

including: 

(i) A statement as to whether the documents were 

prepared in accordance with Generally Accepted Accounting 

Principles, and 

(ii) A description of the significant accounting 

policies of each relevant corporation. such as for depreciation, 

amortization of intangibles, overhauls, unearned revenues, and cost 

capitalization; 

( 4) A statement of significant events occurring subsequent 

to the most recent Balance Sheet date for each relevant corporation; 

and 

(5) A statement identifying the person who has prepared 

the financial statements. his or her accounting qualifications, anc..l 

any affiliation he or she has with the applicant. 

(I) A list of all actions and outstanding judgments for more 

than $5,000 against any relevant corporation, key personnel 

employed (or to be employed) by any relevant corporation, or 

person having a substantial interest in any relevant corporation, 

including the amount of each judgment. the party to whom it is 

payable, and how long it has been outstanding. 

(m) The number of actions and outstanding judgments of less 

than $5,000 against each relevant corporation. key personnel 

employed (or to be employed) by any relevant corporation, or 

person having a substantial interest in any relevant corporation, and 

the total amount owed by each on such judgments. 

(n) A description of the applicant's fleet of aircraft, including: 

(I) The number of each type of aircraft owned, leased and 

to be purchased or leased; 

(2) Applicant's plans, including fmancing plans, for the 

purchase or lease of additional aircraft; and 

(3) A sworn affidavit stating that each aircraft owned or 

leased has been certified by the FAA and currently complies with all 

FAA safety standards. 

( o) A description of the current status of all pending 

investigations. enforcement actions, and formal complaints filed by 

the Department, including the FAA, involving the applicant or any 

relevant corporation, any personnel employed (or to be employed) 

by any relevant corporation or person having a substantial interest in 

any relevant coqJOration. regarding compliance with the Statute or 

orders, rules, regulations, or rc4uiremcnts issued pursuant to the 

Statute, and any correcilve actions taken. (If an applic·ant has a 

compliance history that ~arrants it. additional information may be 

required.) 

(p) A description of all charges of unfair or deceptive or 

anticompetitive business practices. or of frauc..l, fdony or antitrust 

violation, brought against any relevant corporation or person having 

a substantial interest in any rdevant corporation, or member of the 

key personnel employed (or to he employed) by any relevant 

corporation in the past 10 years. Such descriptions shall inc Jude the 

disposition or current >.tatus of each such proceec..ling. 

( q) A description of any aircraft accidents or incidents (as 

defined in the National Transportation Safety Boarc..l Regulations. 4ll 

CFR 830.2) experienced hy the applicant, its personnel. or any 

relevant corporation, which occun·ed either during the year 

preceding the elate of application or at any time in the past anc..l 

which remain under investigation by the FAA. the NTSB. or by the 

company itself, including: 

( I ) The date of the occurrence; 

(2) The type of flight; 

(3) The number of passengers and crew on board and an 

enumeration of any injuries or fatalitie:;; 

(4) A description of any damage to the aircraft; 

(5) The FAA and NTSB file numbers· and the status of the 

investigations, including any enforcement actions initiated against 

the carrier or any of its personnel; and 

(6) Positive actions taken to prevent recurrence. (If an 

applicant's history of accidents or incidents wan·ants it. additional 

inforn1ation may be required.) 

(r) A brief narrative history of the applicant. 

(s) A description of all Federal, State and foreign authority 

under which the applicant has conducted or is conducting 

transportation operations, and the identify of the local FAA o!Tice 

and personnel responsible for processing an application for any 

additional FAA authority needed to conc..luct the proposed 

operations. ., 

.. " 

(t) A description or tpc servicc to be operated if the application 

is granted, including: 

(I) A forecast Balancc Shect for the first normal year 

ending after the initially proposed operations have been 

incorporated, along with the a,ssumptions underlying the accounts 

and an1ounts shown; and 

(2) A forecast Income Statement. broken down by 

4uarters. for the first year ending after the initially propo,ec..l 

operations are n01malized. and an itemization of all pre-operating 

and staJ1-up costs associated with the initiation of the proposed 

service. Such Income Statement shall include cstimated rcvenue 

block hours (or airborne hours, for charter operators) anc..l revenue 

miles by type of aircraft. number of passengers and number of tons 

of mail and cargo to be carried, traJlsport revenues aJld an estimate 

of the traffic which would ~e generated in each markct receivinf! the 

proposed service. Such statements shall also include a statement as 
tP "h..:ther the statements were prepared on the accmal or cash 

basis. an explanation of how the estimated costs and revenues were 

develupeJ, a description uf tht: manner in which costs and revenues 

are allocated. huw the underlying traffic forecasts were made, and 

what load factor has been assumed for the average and peak month. 

Pn.:-operating and start-up costs should include, but are not limited 

to. the following: Obtaining necessary government approval; 

establishing stations; introdw:tory advet1ising; aircraft, equipment 

and space facility deposits and rent; training; and salaries earned 

pnor to otart -up. 

(u) A signed counterpart of Agreement 18900 (OST Form 

4523) as required by part 203 of this chapter. 

(v) The following certification, which shall accompany the 

application and all subsequent written submissions filed by the 

applicant in connection with lls application: 

Pursuant to title 18 United States Code section 1001, I [the 

individual signing the application, who shall be a principal owner, 

senior olTtcer, or internal wunsd of the applicant], in my individual 

capaclly and as the authorized representative of the applicant, have 

not in ~my manner knowingly and willfully falsifted, concealed or 

covered up any material fact or made any false, fictitious, or 

fraudulent statement or knowingly used any documents which 

contain such :>tatcmcnts in cOtmcction with the preparation, filing or 

prosecution of the application. I understand that an individual who is 

found to have violated the provisions of 18 LJ.S.C. section 1001 

shall he fined nor more than ~10,000 or imprisoned not more than 

live y<:ars, or both. 

Sec. 204.4 Carriers proposing to provide essential air service. 

Applicants proposing to provide essential air service have been 

divided into two categories, and arc subject to differing data 

suhmi"ion requiremcnts as set forth in paragraphs (a) and (b) of this 

section. However, if a catTicr has previously filed any of the 

required data with the Department or other Federal agency and they 

arc a\ ai I able to the Department, and these data continue to reflect 

the cun·ent state of the carrier's lltness, the carrier may instead 

idcnt ify the data and provide a citation for the date and place of 

filing. All can·icrs may contact the Air Carrier Fitness Division to 

ascertain what infornmtion is already available to the Department 

and thus may not need to he resubmitted. 

(a) C'an·icrs who propose to begin or expand non-subsidized 

essenttal air service when the incumbent leaves the market must file 

the following information: 

(I) All of the infom1ation required under Sec. 204.3 of this 

part. 

(2) A description of the back-up aircraft available to the 

applicant. induding: 

(i) The numb.:r of each type of such aircraft; 

(ii) The conditions under which such aircraft will 

he a>ailahk· to the can1cr; 

(iii) The carrier's plans for financing the acquisition 

or lease of such additional aircrdft; and 

(iv) A sworn affidavit stating that all such aircraft 

have been cettified by the FAA and currently comply with all FAA 

safety standards. 

(3) A description of the fuel available to perforn1 the 

proposed essential airservices and the carrier's contracts with fuel 

suppliers. 

(4) The carrier's systemwide on-time and completion 

record for the preceding year and, if applicable, in the subject 

market(s). 

(5) A list of the markets the carrier serves and the number 

of weekly round trips it provides in each. 

(6) A description of the average number of block hours 

each type of aircraft is currently flown per day. 

(7) An estimate of the impact the proposed essential air 

service would have on the carrier's utilization of its aircraft fleet. 

(8} A detailed schedule of the service to be provided, 

including times of arrivals and departures, the aircraft to be used for 

each flight, and the fares to be charged. 

(9) A pro-forma income statement for the proposed 

operation for the flrst annual period. 

(b) Carriers ftling proposals to provide subsidized service in 

response to an order inviting proposals shall file: 

(I) All of the information required under Sec. 204.3 of this 

part. 

(2} All of the inforn1ation required under paragraph (a) of 

this section. 

(3) A forecast Income Statement covering the operations 

conducted in essential air service for the first year following the 

initiation of the proposed essential services. Such statement shall 

include: 

(i) Subsidy needed; 

(ii} Estimated block hours and revenue miles by 

type of aircraft; 

(iii) Total projected revenue including volumes of 

passengers and freight by essential air service market and the 

associated fares and rates; 

(iv) An explanation of the derivation of estimates of 

operating expenses; and 

(v) A description of the manner in which costs and 

revenues are allocated. 

( 4) A traffic forecast including a load factor analysis on all 

segments between the small community and the hub; and an 

estimate of the number of seats available to and from the eligible 

point each day. 

Sec. 204.5 Certificated and commuter air carriers undergoing 

or proposing to undergo substantial change in operations, 

ownership, or management. 

(a) A certificated or commuter air carrier proposing a 

substantial 

change in operations, ownership or management shall llle the data 

set forth in Sec. 204.3. These data must be submitted in cases where: 

(I) The proposed change requires new or amended 

authority, or 

(2) Although the carrier's existing certificate or conunuter 

authority is adequate for the perforn1ance of its planned services, the 

change substantially alters the factors upon which its latest fitness 

finding is based. 

(b) lnfonnation which a canier has previously formally filed 

with the Departm.:nt, or with another Federal agency where they arc 

available to the Department, which continues to rctlect the cun·cnt 

state of the carrier's fitness may he omitted. The caJTier instead 

should identify the data and provide a citation for the datc(s) and 

place(s) of filing. Prior to filing any data. the carrier may contact the 

Department (Air Carriers Fitness Division) to ascertain what data 

required by this section, if any, are already available to the 

Department or are not applicable to the substantial change in 

question and need not be included in the filing. 

(c) Information filings pursuant to this section made to support 

an application for new or amended certificate authority shall he filed 

with the application and addressed to the Dontmentary Services 

Division. Department of Transportation. 400 Seventh Street, SW .. 

Washington, OC 20590. Information filed in suppon of a 

certificated or commuter air carrier's continuing fitness to operate 

under its existing authority in light of substantial changes in its 

operations, ownership or management shall be addrc"cd to the 

Chief, Air Carrier Fitness Division, Dcpat'tmcnt of Transpot1ation. 

400 Seventh Street, SW., Washington, DC' 205YO. 

Sec. 204.6 Certificated and commuter air carriers proposing a 

change in operations, ownership, or management which is not 

substantial. 

Carriers proposing to mak.: a ..:hange whi..:h would not 

substantially affect their operations, management. or ownership. 

such as certificated carriers applying for aJditional authority whi..:h 

would not substantially change their operations. will bt: prcosumed to 

be fit and need not file any inforn1ation rdating to thcoir lltne:.s at 

time of the change. However, if the Department concludes. from iu. 

own analysis or based on infom1ation submitted by third parties. that 

such change may bring the carrier's lltness into question. the 

Department may require the applicant can·icr to file additional 

information. 

Sec. 204.7 Revocation for dormancy. 

(a) An air carrier that has not commenced any type of air 

transpottation operations for which it was found fit, willing. and 

able within one year of the date of that finding, or an air carrier that, 

for any period of one year after the date of such a finding. has not 

provided any type of air transportation for which that kind of llntling 

is required, is deemed no longer to continue to be lit to provide the 

air transpottation for which it was found fit and, accorJingly. it~ 

authority to provide such air transportation shall be n:vokcd. 

(b) An air carrier found Ill which commences opcorations 

within one year after being found lit but then ceases operations. 

shall not resume operations without first tiling all of the data 

required by Sec. 204.3 at least 45 days before it intends to provide 

any such air transportation. Such lllings shall he adJresscd to the 

Department of Transportation Dockets. 400 Seventh Street. SW., 

Washington, OC 20590. The Depattment will elllcttain requests for 

exemption from this 45-day avvance filing requirement for good 

cause shown. If there has be<!n no change in lltness data previously 

formally filed with the Depark;ncnt. the canicr shall file a sworn 

statement to that effect signed by one of its ofllccr:.. The catTier may 
c,,ntac'l the Dcpanmcnt lAir Camer Fitnc"' Division) to ascertain 

v.hich llata are alreally available to the Department and need not be 

n:filt:ll. A caiTier to whkh this paragraph applies shall not provide 

any air transportation for which it is required to be found fit, willing, 

anll ahlt: until the Departmo:m decides that the canier continues to be 

fit, willing, and able to perfom1 such air transportation. During the 

pcnllcncy of the Department's consideration of a data submission 

und~:r this paragraph, the expiration period set out in paragraph (a) 

of thi., section shall be >tay<.'d. If the decision or finding by the 

Department on the issue of the carrier's fitness is favorable, the date 

or that llccio;ion or finding shall he the date considered in applying 

paragraph (a) of this section. 

(c) For purposes of this section, the llate of a Department 

llccision or finding shall bt: the service date of the Department's 

orller containing such decision or finding, or, in cases where the 

Department's llecision or finding is made by letter, the date of such 

ktter. 

(d) For purposes of this section, references to operations and to 

the provilling of air transportation shall refer only to the actual 

perfonnance of !light optTdtions under an operating certificate 

io,suc:d. to the can·i.:r by the FAA.