Order 2014

- 12

- 5

Served: December 4 , 2014

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 4 th day of December

, 2014

Application of

GEM AIR, LLC

for authority to engage in scheduled passenger operations as a commuter air carrier under

49 U.S.C. § 41738 Docket DOT

- OST

- 2014

- 0020

FINAL ORDER

By Order 2014

- 10

- 25 , issued October 29 , 2014

, we directed all interested persons to show cause why we sho uld not make final our tentative findings and conclusions that Gem Air, LLC is fit, willing, and able to provide scheduled passenger service as a commuter air carrier using small aircraft pursuant to Part 135 of the Federal Aviation Regulations. Intereste d persons were given

14 days to file objections to the order.

No objections to the show cause order were received.

ACCORDINGLY,

1. We find that Gem Air, LLC is fit, willing, and able under 49 U.S.C. § 41738 to provide scheduled passenger service as a c ommuter air carrier using small aircraft pursuant to Part 135 of the Federal Aviation Regulations , subject to conditions

.

2. We issue a Commuter Air Carrier Authorization to Gem Air, LLC subject to the Terms, Conditions, and Limitations attached.

3. We direct Gem Air, LLC to submit to the Air Carrier Fitness Division a first year progress report within 45 days following the end of its first year of actual commuter operations. 1

1 The report shall include a description of the air carrier’s current operations (number and type of aircraft, principal markets served, total number of full

- time and part

- time employees), a summary of how these operations have changed during the year, a discussion of any changes it anticipates from its current2

4. We will serve a copy of this order on the persons listed in Attachmen t A.

By:

SUSAN L. KURLAND Assistant Secretary for Aviation

and International Affairs

An electronic version of this document is available on the World Wide Web at

http://www.regulations.gov

operations during its second year, current financial statements, and a listing of current senior management and key technical personnel. The air carrier should also be prepared to meet with staff members of the Fitness Division to discuss its current and future operations.

# Commuter Air Carrier Authorization

GEM AIR, LLC

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 s cheduled passenger air transportation operations as a commuter air carrier.

This authorization is not transferable without the approval of the Department of Transportation.

By Direction of the Secretary

Issued by Order 2014

- 12

- 5 Susan L. Kurland

On December 4

, 2014 Assistant Secreta ry for Effective (See Attached) Aviation and International Affairs

### Terms, Conditions, and Limitations

GEM AIR, LLC

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

c arrier.

This authority is subject to the following provisions:

(1) The authority to conduct scheduled passenger operations will not become effective until six (business) days after the Department has received the following documents; provided

, however , t hat the Department may stay the effectiveness of this authority at any time prior to that date:

(a) A copy of the holder's Air Carrier Certificate and Operations Specifications authorizing such operations from the Federal Aviation Administration (FAA).

( b) A certificate of insurance on OST Form 6410 evidencing liability insurance coverage meeting the requirements of 14 CFR 205.5(b) for all of its aircraft.

(c) A statement of any changes the holder has undergone in its ownership, key personnel, operating plans, financial posture, or compliance history, since the date of

the Show Cause Order in this case.

(d) A revised list of pre

- operating expenses already paid and those remaining to be paid, as well as independent verification that the holder has availab le to it funds sufficient to cover any remaining pre

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

(2) Pending receipt of effective authority, the holder may not accept payment of any kind (i.e., cash, check, or credit card) or issue tickets for scheduled passenger operations, and any advertisement or listing of flights by the holder must prominently state: "This service is subject to receipt of

government oper

ating authority."

(3) The holder shall at all times conduct its operations in accordance with the require ments of

14 CFR Part 298 and any other regulations prescribed by the Department of Transportation for the
services authorized here, and with such oth er reasonable terms, conditions, and limitations as the Department of Transportation may prescribe in the public interest.

(4) The holder 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 certification from the FAA, it must first be determined fit for such operations.2

( 5 ) The holder's authority under this certificate is effective only to the extent that such operat ions 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

. 

( 6 ) The holder shall at all times remain a "Citizen of the United States" as required by 49 U.S.C. 40102(a)(15).

( 7 ) The holder shall maintain in effect liability insurance coverage 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 United States Code or the Department's regulations shall be sufficient grounds to revoke this authority.

( 8 ) The holder may reduce or terminate service at any point or between any tw o points, subject to compliance with the provisions of 49 U.S.C. 41734 and all orders and regulations issued by the Department of Transportation under that section.

( 9 ) Should the holder propose any substantial changes in its ownership, management, or

ope rations (as that term is defined in 14 CFR 204.2(l)), it must first com ply with the requirements of

14 CFR 204.5.

(1 0 ) In the event that the holder does not commence actual flying operations as a commuter air carrier under this authority within one year o f the date of the Department's determination of its fitness, its commuter authority shall be revoked for dormancy. Further, 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 o f its cessation, its commuter

author ity shall be revoked for dormancy

.

 To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charter fl ights) to or from a foreign airport, contact 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 se rved.Attachment A

SERVICE LIST FOR

GEM AIR, LLC

JOANNE WOLTERS

GEM AIR LLC

31 HAMNER DRIVE

SALMON ID 83467

MARK MAZOR

MANAGER

CERTIFICATION & EVALUATION

PROGRAM

OFFICE

FAA AF S

- 900

45005 AVIATION DRIVE

SUITE 131

DULLES VA 20166 PETER LYNCH AGC

- 300

ASST CHIEF COUNSEL FOR ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

PATRICK DARLING

PRINCIPAL OPERATIONS

INSPECTOR

BOISE FSDO

3295 ELD ER ST

SUITE 350

BOISE ID 83705

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS RTS

- 42

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590 KA THERINE TATUM

TECHNICAL PROGRAMS BRANCH

AFS

- 260

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591