Order 2014

- 4

- 33

Served: April 30

, 2014

UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 30 th day of April , 20 1 4

Application of

NATIONAL AIR CARGO GROUP, INC.
d/b/a NATIONAL AIRLINES

f or an amended certificate of public convenience and necessity under 49 U.S.C. 41 102 to engage in foreign

scheduled air transportation of persons, property

, and

mail Docket DOT

- OST

- 20 12

- 0204

ORDER STAYING EFFECTIVENESS OF FOREIGN CERTIFICATE

By Order 2013

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- 12 , issued July 12 , 2013

, the Department found National Air Cargo Group, Inc. d/b/a National Airlines ( National ) fit, willing, and able to conduct foreign scheduled passenger air transportation and issued to it a n amended certificate of public convenience and necessity authorizing it to engage in such operations, subject to conditions. Specifically, the order directed

that

, should National wish to operate its own aircraft between the United States and the United Arab Emirates, or should it wish to operate more than six cargo aircraft and/or more than two passenger aircraft, it must first provide the Department with at least 45 days advance n otice of such plans and provide updated information establishing its fitness for such expansion prior to

commencement.

Under its terms and conditions, National’s foreign scheduled passenger certificate would become effective on the sixth business day after the Department received, a mong other things, (1) evidence that Nation al has been certificated by the FAA to engage in foreign sc heduled passenger operations, (2) evidence of liability insurance coverage that meets the requirements of section 205.5(b) of our rules, (3) a statement of changes it may have undergone since its fitness was examined, and (4) evidence that National continu es to have adequate financial resources

available to it to cover any pre

- operating expenses and to provide a working capital reserve equal to the operating costs that would be incurred in three months of operations.

On March 24, 2014, National provided up dated fitness information to make its foreign scheduled certificate effective, including evidence of appropriate liability insurance, a copy of its bank statement from Wells Fargo Bank showing the amount of cash the company has on hand , an updated first

- ye ar expense forecast, and resumes from individuals holding key management2

positions. National also submitted Operations Specification from the FAA authorizing foreign scheduled operations.

Upon review of the information provided by National, the Departm ent determined that the

material was inadequate and thus issued Order 2014

- 3

- 20, s taying the e ffectiveness of National’s foreign scheduled passenger certificate for a period of 30 days. In th at order, the Department

also state d that if a determination tha t National continues to be fit was not accomplished within 30 days, we intend ed to issue another order staying National’s foreign scheduled passenger authority

.

S ince we have not yet received the required updated information from National which

demonstrate s its continuing fitness to operate the proposed services covered by its certificate, we have decided to stay the effectiveness of th at certificate for a nother period of 30 days or until the

air carrier can provide all the documentation required to make its certificate effective

, whichever

is sooner. We note that should National provide the required information to make its authority effective, the authority to operate under this certificate will not become effective until six (business) days aft er the Department has received such information , provided however, that the Department may stay the effectiveness of this authority at any time prior to this date

. We also remind National of the requirement that should the air carrier wish to operate its own aircraft between the United States and the United Arab Emirates, it must first provide the Department with at least 45 days advance notice of such plans and provide updated information establishing its fitness for such expansion prior to commencement.

During this period of stay, we will work closely with National to resolve any outstanding fitness issues. However, if a determination that National continues to be fit cannot be accomplished within 30 days, we intend to issue another order staying Natio nal’s foreign scheduled passenger authority

.

ACCORDINGLY

, acting under authority assigned by the Department in its Regulations, 14 CFR 385.12(a) (5) (ii):

1. We stay the effectiveness of the certificate of public convenience and necessity to engage in foreign scheduled air transportation of persons, property, and mail issued to National Air Cargo Group, Inc. d/b/a National Airlines by Order 2013

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- 12, for a period of 30 days from

the date of this order or until we can reach a determination that National Air Cargo Group, Inc. d/b/a National Airlines has provided all the documentation to make its authority effective to conduct the operations authorized by its certifi cate, whichever is earlier. We note that

should the air carrier provide the required information to make its authority effective, the authority to operate under this certificate will not become effective until six (business) days after the Department has received such information , provided however, that the Department may stay the effectiveness of this authority at any time prior to this date.

2. We will serve a copy of this order on the persons listed in Attachment A.3

Persons entitled to petition the Department for review of this order, under 14 CFR 385.30 may file their petitions within 10 days of the service date of this order.

T his order is effective immediately, 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.govAttachment A

SERVICE LIST FOR NATIONAL AIR CARGO INC d/b/a NATIONAL AIRLINES

MORGAN CAMPBELL

MCKENNA LONG & ALDRIDGE LLP

1676 INTERNATIONAL DRIVE MCLEAN, VA 22102 PAUL GRANDAHL

DALE MITCHELL

DARYL BENTLEY

EAST MICHIGAN FSDO

FEDERAL AVIATION ADMINISTRATION

MARK MAZOR

CERTIFICATION SECTION MANAGER

FAA AFS

- 900 45005 AVIATION DRIVE, SUITE 131

DULLES VA 20166 WILLIAM CHADWICK

OFFICE OF AIRLINE INFORMATION

DOT/RSPA/BTS E

- 36

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

PETER LYNCH AGC

- 300

ASST CHIEF COUNSEL FOR ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

LUTHER HIPPS

CHARLEY BEERS

BILL ROYAL

ORLANDO FSDO

FEDERAL AVIATION ADMINISTRATION OFFICE OF AIRLINE INFORMATION

DOT/RSPA/BTS E

- 36

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590