Order 2011-4-11

Served: April 8, 2011

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 8th day of April, 2011

Fitness Determination of

 CHARTER AIR TRANSPORT, INC.

as a commuter air carrier under section 

49 U.S.C. 41738

 Docket DOT-OST-2009-0187

ORDER CONFIRMING ORAL ACTION AND 

ISSUING EFFECTIVE COMMUTER AUTHORIZATION

Summary

By this order, we (1) confirm our oral action of March 24, 2010, making the commuter 

authorization issued to Charter Air Transport, Inc. (“CAT”), effective on that date and (2) reissue 

CAT’s commuter air carrier authorization to reflect its effective date.

Background

By Order 2010-3-29, issued March 23, 2010, the Department found CAT fit to conduct 

scheduled passenger service as a commuter air carrier. Under the terms of Order 2010-3-29, the 

authority would become effective on the sixth (business day) after we had received (1) a copy of 

CAT’s Air Carrier Certificate and Operation Specifications from the Federal Aviation 

Administration (“FAA”) authorizing such operations, (2) evidence of liability insurance 

coverage that meets the requirements of section 205.5(b) for all its aircraft, (3) a statement of any 

changes it had undergone in areas affecting its fitness subsequent to the issuance date of the 

Show Cause Order in this case (Order 2010-3-8), and (4) updated financial information and 

evidence that the air carrier still had available to it funds sufficient to meet the Department’s 

financial fitness criteria.

On March 11, 2010, CAT provided evidence of operating authority from the FAA, updated 

financial information, third-party verification of financial resources, and a statement that CAT

had not undergone any substantial changes in key personnel, compliance history, operating plans 

or financial posture since the issuance of the Show Cause Order.1 CAT also requested that we 

waive the standard six (business) day waiting period contained in the terms and conditions of its 

 

1

In order to expedite processing of its application, CAT provided all of the information required to make its 

authority effective prior to the Department issuing a final order in this matter. 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION
2

commuter authorization and award it effective commuter authority as soon as possible after 

concluding our review of the information and documentation the air carrier provided. 

On March 12, 2010, CAT submitted a copy of its Certificate of Insurance (OST Form 6410)

evidencing liability insurance meeting the requirements of 14 CFR 205.5(b). CAT also provided 

updated ownership information. The air carrier stated that it continues to be owned by Aviation 

Holdings Company, Inc. (“AHC”) (99.7 percent), and Mr. Al Hill (0.3 percent); however, the 

ownership of AHC has changed slightly. AHC’s investors remain the same, but their 

percentages of equity in AHC have changed.2 Since all of AHC’s investors are U.S. citizens, 

these minor equity changes have no material effect on CAT’s citizenship. Thus, we determined 

that CAT continues to be owned and controlled by U.S. citizens.

Based on our review of the updated fitness information, insurance, and FAA documentation 

provided by CAT, we concluded that the air carrier remained fit to commence its commuter 

operations. Under these circumstances, on March 24, 2010, we orally advised CAT that we 

would waive the six day waiting period and make its authority effective on that date. 

Consistent with the applicant’s proposed operations, we limit its authority to operations 

conducted under Part 135. Should CAT desire to perform operations that would require 

certification from the FAA under Part 121, 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.

ACCORDINGLY: Acting under authority assigned by the Department in its regulations, 

14 CFR 385.12:

1. We confirm our oral action of March 24, 2010, making the commuter authority issued to 

Charter Air Transport, Inc., effective on that date.

2. We reissue the Commuter Air Carrier Authorization issued to Charter Air Transport, Inc., 

by Order 2010-3-29, in the attached form to reflect its effective date.

3. We direct Charter Air Transport, Inc., to submit to the Air Carrier Fitness Division a first 

year progress report within 45 days following the end of its first year of commuter operations.3

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

Persons entitled to petition the Department for review of this order under the Department’s 

Regulations, 14 CFR 385.30, may file their petitions within 10 days of the service date of this 

order.

 

2 At the time that CAT submitted its application, AHC was owned by Double G, LLC (50.3 percent), Business 

Aircraft Group (22.7 percent), Highpoint Investments, LLC (26.3 percent), and Tangies LLC (0.6 percent), all U.S. 

citizens. Under the revised ownership, AHC’s is owned by Double G, LLC, (55.3 percent), Business Aircraft Group 

(20.0 percent), Highpoint Investments, LLC (24.1 percent), and Tangies LLC (0.5 percent).

3 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 current operations during its second 

year, current financial statements, and a listing of current senior management and key technical personnel.
3

The action confirmed in this order was effective when taken 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.gov
 

 

Commuter Air Carrier Authorization

(as reissued)

CHARTER AIR TRANSPORT, INC.

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 scheduled 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 2011-4-11 Todd M. Homan

On April 8, 2011 Director 

Effective March 24, 2010 Office of Aviation Analysis
Attachment 

As reissued by Order 2011-4-11

Terms, Conditions, and Limitations

CHARTER AIR TRANSPORT, INC.

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

carrier.

This authority is subject to the following provisions:

(1) The holder shall at all times conduct its operations in accordance with the requirements of 14 

CFR Part 298 and any other regulations prescribed by the Department of Transportation for the 

services authorized here, and with such other reasonable terms, conditions, and limitations as the 

Department of Transportation may prescribe in the public interest.

(2) 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.

(3) The holder may not operate aircraft designed to have a maximum passenger capacity of more 

than 60 seats or a maximum payload capacity of more than 18,000 pounds.

(4) The holder's authority under this certificate is effective only to the extent that such operations 

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.

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

40102(a)(15).

(6) 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.

(7) The holder may reduce or terminate service at any point or between any two 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.

(8) The holder may not provide scheduled passenger air transportation to or from Dallas (Love 

Field), Texas, except within the limits set forth in section 29 of the International Air Transportation 

 

This authority is being reissued to reflect its effective date.

To assure compliance with all applicable U.S. Government requirements concerning security, the holder 

shall, before commencing any new service (including charter flights) 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 served.
2

Competition Act of 1979, as amended or as modified by any future legislation addressing access 

restrictions to or from Love Field.

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

(as defined in 14 CFR 204.2(l)), it must first comply with the requirements of 14 CFR 204.5.

(10) 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 of its cessation, its commuter authority shall be revoked for dormancy.
Attachment A

SERVICE LIST FOR CHARTER AIR TRANSPORT, INC.

DAVID A LUCAS

CHARTER AIR TRANSPORT INC

2301 NORTH MARGINAL ROAD

CLEVELAND OH 44143

SUSAN B JOLLIE

COUNSEL FOR CHARTER AIR 

 TRANSPORT INC

7503 WALTON LANE

ANNANDALE VA 22003

PETER LYNCH AGC-300

ASST CHIEF COUNSEL FOR 

ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

BERNARD STANKUS

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS RTS-42

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

MARIANNE SEGUIN

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS RTS-42

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

SAMUEL PODBERESKY

U.S. DEPARTMENT OF 

 TRANSPORTATION

ASSISTANT GENERAL COUNSEL

 FOR AVIATION AND PROCEEDINGS

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

WILLIAM J WEBER

CERTIFICATION SECTION 

MANAGER

FAA AFS-900

45005 AVIATION DRIVE SUITE 131

DULLES VA 20166