Order 20 11

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Served: A pr il 8

, 20 11

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 2 4 , 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

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, issued March 23, 2010 , the Depa rtment found CAT fit to conduct scheduled passenger service as a commuter air car rier. Under the terms of Order 2010

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

CAT’s Air Carrier Certificate a nd 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 h ad undergone in areas affecting its fitness subsequent to the issuance date of the

Show Caus e Order in this case (Order 2010

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- 8 ), and (4) updated financial information and

evidence that the air carrier still had available to it funds sufficient to meet th e 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 conditio ns 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.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 Insur ance (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 percen t)

, 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,

the se 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 the se 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.

C onsistent with the applican t’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 advanc e 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

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- 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 l isted 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 owne d by Double G, LLC (50.3 percent), B usiness

A ircraft G roup (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 sen ior management and key technical personnel.3

The action confirmed in this order wa s 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.regulation s.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 ca rrier.

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

By Direction of the Secretary

Issued by Order 2011

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- 11 Todd M. Homan

On April 8

, 2011 Director Effective March 24, 2010 Office of Aviation Analysis

### Attachment As reissued by Order 2011

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### 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 s uch 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 mor e 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 o f 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 suc h 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 sha ll 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

yea r 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 TRANSPOR T 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 F OR
ENFORCEM ENT
FEDERAL AVIATION ADM INISTRATION
800 INDEPENDENCE AVE SW
WASHINGTON DC 20591

BERNARD STANKUS
OFFICE OF AIRLINE IN FORMATION
DOT/RITA/BTS RTS

- 42
1200 NEW JERSEY AVE SE
WASHINGTON DC 20590 MARIANNE SEGUIN
OFFICE OF AIRLINE IN FORMATION
DOT/RITA/BTS RTS

- 42
1200 NEW JERSEY AVE SE
WASHINGTON DC 20590 SAMUEL PODBERESKY
U.S. DEPARTMENT OF
TRANSPORTATION
ASSISTANT GENERAL CO UNSEL
FOR AVIATION AND PRO CEEDINGS
1200 NEW JERSEY AVE SE
WASHINGTON DC 20590

WILLIAM J WEBER
CERTIFICATION SECTIO N
MANAGER
FAA AFS

- 900
45005 AVIATION DRIVE SUITE 131
DULLES VA 20166