Order 2011

- 3

- 27 Served: March 21, 201 1

Issued by the Department of Transportation

on the 18th day of January , 20 1 1

Application of

DYNAMIC AIRWAYS , LLC

d/b/a DYNAMIC AVIATION

for a certificate of public convenience and necessity under

49 U.S.C. § 41102 to engage in foreign charter air transportation of persons, property and mail Docket DOT

- OST

- 20 10

- 0262

ORDER ISSUING CERTIFICATE Summary

By this order, we (1) conclude that Dynamic Airways , LLC d/b/a D ynamic Aviation (“ Dynamic Airways ”) is a citizen of the United States and is fit, willing, and able to provide foreign charter air transportation of persons, property, and mail

, using five large aircraft

, and (2) issue it a certificate of public convenience and necessity authorizing such operations , subject to conditions.

Background

Section 41102 of Title 49 of the United States Code (“the Transportation Code”) directs us to determine that applicants for certificate autho rity to provide foreign charter air transportation of persons, property and mail are “fit, willing, and able” to perform such transportation and to ensure that all operations relating to this authority conform to the provisions of the Transportation Code a nd the regulations and requirements of the Department. In making fitness findings, the Department uses a three

- part test that reconciles the Airline Deregulation Act’s liberal entry policy with Congress’ concern for operational safety and consumer protect ion. The three areas of inquiry that must be addressed in order to determine a company’s fitness are whether the applicant (1) will have the managerial skills and technical ability to conduct the proposed operations, (2) will have access to resources suff icient to commence operations without posing an undue risk to consumers or their funds , and (3) will comply with the Transportation Code and regulations imposed by Federal and State agencies. We must also find that the applicant is a

U. S. citizen.

On Oct ober 20, 2010, Dynamic Airways , an operating interstate charter air carrier, filed an application

in Docket DOT

- OST

- 2010

- 0262 requesting authority under 49 U.S.C. § 41102 to provide foreign charter air transportation of persons, property, and mail. The ap plicant intends to provide foreign charter

service s for collegiate and professional sports teams and other public and private charterers using one

leased MD

- 80 series aircraft and anticipates expanding to a total of five such aircraft within the first year UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.2

of operations as demand for its foreign and domestic services increases

. Dynamic Airways anticipates that new business opportunities for foreign passenger charters could be available to it early in 2011. No objections to Dynamic Airways’ application were filed.

As discussed below, our review of the information in Dynamic Airways’ application indicates that the

air carrier is fit to hold the foreign charter authority it seeks. We also note that the foreign flights contemplated by Dynamic Airways are similar in scope to those it is currently conducting domestically. Under these circumstances, and because of the findings made below, we have decided that neither an oral evidentiary hearing nor a show

- cause proceeding is necessary for us to make a decisi on in this case. Therefore, in accordance with 14 CFR § 302.210(a)(2) of our regulations, we will proceed directly to final approval of Dynamic Airways’ certificate for foreign charter passenger authority. 1

FITNESS

The Applicant

On October 19, 20 10, the Department issued to Dynamic Airways effective certificate authority to

conduct interstate charter air transportation of persons, property, and mail, using no more than five large

aircraft. 2 Since then, Dynamic Airways has been providing charter s ervices for collegiate and professional sports teams and other public and private charterers using one leased MD

- 80 series aircraft

. The company is now requesting foreign charter authority to complement its existing operations

. I f granted the certificate authority it seeks, Dynamic Airways intends to operate foreign charter services for collegiate and professional sports teams and other public and private charterers using the same leased

MD

- 80 series aircraft used in the air carrier’s interstate charter o perations

.

In its initial application for interstate authority, Dynamic Airways provided information about its ownership, management, financial condition, and compliance disposition. In its foreign application, Dynamic Airways stated that nothing has materially changed since the air carrier was initially found fit.

S pecifically, Dynamic Airways continues to be wholly owned by Mr. Michael A. Stoltzfus (67.0 percent) and his father, Mr. Karl D. Stoltzfus, Sr. (33.0 percent) , both of wh om are U.S. citizens

. Additionally, there have been no changes to the applicant’s key management and technical personnel.

Further

, Dynamic Airways provided third

- party verification from PNC Bank evidencing that it has

access to an established line

- of

- credit that exceeds our financial fitness requirement ; thu s, we find that the applicant continues to have access to sufficient financial resources

. 3 Moreover, t he Federal Aviation

Administration (“FAA”) advise d us that a recent review of Dynamic Airways r evealed no major issues involving the applicant’s operations, and that the air carrier remains in good standing with that agency.

1 The issuance of a foreign certificate is subject to Presidential review under 49 U.S.C. 41307.

2 See Order 2010

- 10

- 11, issued October 19, 2010. We incorporate here by reference the service and fitness information

submitted in Docket DOT

- OST

- 2010

- 0058.

3 Since the applicant proposes to use the same leased MD

- 80 series aircraft in both its interstate and foreign charter operations, and will operate these flights under Aircraft, Crew, Maintenance, and Insurance (“ACMI”) contracts, with charterers directly responsible for all remaining costs associated with the air transportation provided, the applicant does not expect to incur any additional expense beyond those identifie d in its interstate application, which was $5.80 million

.3

Based on our review of the information available to us, we have determined that no significant changes affecting the air carr ier’s fitness ( i.e. , management, financial condition, compliance disposition, or ownership) have occurred since the Department’s initial fitness finding of October 2010 , and w e have no other information at this time that leads us to conclude that Dynamic Airways is not fit.

In light of the above, we conclude that Dynamic Airways is a U.S. citizen

, that it continues to have a competent management team, that it has adequate fi nancial resources to conduct its proposed foreign charter operations, and that it has a satisfactory compliance disposition to conduct the operation proposed.

PUBLIC CONV ENIENCE AND NECESSITY

We find that the foreign cha rter air transportation proposed b y Dynamic Airways is consistent with the public convenience and necessity. By Order 78

- 7

- 106, which instituted the Former L arge Air Service Investigation , the Civil Aeronautics Board found that there was a continuing demand and need for additional charter air carriers. These findings remain valid and apply to the authority sought by Dynamic Airways.

CERTIFICATE CONDITIONS AND LIMITATIONS

While we are making the certificate authority issued here effective immediately, Dynamic Airways’ ability to conduct foreign charter operations with large aircraft under this certificate remains subject to its receipt of the appropriate approval for foreign charter operations from the FAA

.

W e remind Dynamic Airways of the requirements of 49 U.S.C. § 41110(e). Specifically, that section requires that, once an air carrier is found fit initially, it must remain fit in order to hold its authority. To

be assured that certificated air carriers continue to be fit after effective aut hority has been issued to them, we require that they supply information describing any subsequent substantial changes they may undergo in areas affecting fitness. 4 The compliance of the comp any with this requirement is essential if we are to carry out our responsibilities under section 41110(e). 5

Moreover, as noted earlier, Dynamic Airways is currently limited to operations with no more than five large aircraft. We will continue our requirement that Dynamic Airways notify the Department in writing

4 The air carrier may con tact our Air Carrier Fitness Division to report proposed substan tial changes in its operations, ownership, or management, and to determine what additional information, if any, will be required under section 204.5. In addition, by notice dated July 21, 199 8, the Department requested air carriers to provide a 30

- day advance notification of any proposed change in ownership, restructuring, or recapitalization. If the air carrier fails to file this updated

information or if the information fails to demonstrate that the air carrier will continue to be fit upon implementation of the substantial change, the Department may take such action as is appropriate, including enforce ment action or steps to modify, suspend, or revoke the air carrier's c ertificate authority.

5 We also remind Dynamic Airways about the requirements of section 204.7 of our rules. This section provides, among other things, that (1) the certificate authority granted to a company shall be revoked if the company does not commence actual flying operations under that authority within one year of the date of the Department's determination of its fitness; (2) if the company commences operations for which it was found fit and subsequently ceases such operations, it may not resume

certificated air car rier service unless its fitness has been redetermined; and (3) if the company does not resume operations within one year of its cessation, its authority shall be revoked for dormancy.4

at least 45 days in advance of any planned expansion in its fleet and demonstrate its fitness for such operations prior to implementing service with any additional aircraft.

Finally, to aid the Department in monitoring the fitness of new air carriers, we ask that all newly

certificated air carriers submit a detailed progress report within 45 days following the end of the first year of certificated operations, to the Air Carrier Fitness Division. The report should include a description of the carrier’s current operations (number and type of aircraft, principa l 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 statement s, 6 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.

ACCORDINGLY,

1. We find that Dynamic A irwa ys, LLC d/b/a Dynamic Aviation , is fit, willing, and able to engage in foreign charter air transportation of persons, property, and mail.

2. We find the proposed service is consistent with the public convenience and necessity.

3. We issue a foreign charter certificate of public convenience and necessity to Dynamic Airways, LLC d/b/a Dynamic Aviation , subject to the Terms, Conditions, and Limitations attached.

4. We direct that should Dynamic Airways, LLC d/b/a Dynamic Aviation, wish to operate mo re than five large aircraft, it must first provide the Department with at least 45

- days’ notice and demonstrate its fitness for such operations.

5

. Unless disapproved by the President of the United States under 49 U.S.C. § 41307, this order shall

become effective on the 61 st day after its submission for section 41307 review or upon the date of receipt of advice from the President or his designee under Executive Order 12597 and implementing regulations that he or she does not intend to disapprove the Depar tment's order under that section, whichever occurs

earlier. 7

6 These financial statements should include a balance sheet as of the e nd of the company’s first full year of actual certificated operations and a twelve

- month income statement ending that same date.

7 This order was submitted for 41307 review on January 18, 2011. The 61 st day is March 21, 2011. Since the President’s desig nee did not disapprove this order before that date it became effective on March 21, 2011.5

6. We will serve a copy of this O rder on the p ersons listed in Appendix 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

# Certificate of Public Convenience and Necessity for

Foreign Charter Air Transportation

This Certifies That



## DYNAMIC AIRWAYS, LLC

d/b/a DYNAMIC AVIATION

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 foreign charter air transportation of persons, property, and mail.

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

By Direction of the Secretary

Issued by Order 2011

- 3

- 27 Susan L. Kurland

On January 18, 2011 Assistant Secretary for Effective on (see attached) Aviation and International Affairs

### Attachment



### Terms, Conditions, and Limitations

DYNAMIC AIRWAYS, LLC

d/b/a DYNAMIC AVIATION

is authorized to engage in foreign charter air transportation of persons, property, and mail:

Between any place in the United States and any place outside thereof.

This authority is subject to the following provisions:

(1) The authority to operate under this certificate will not become effective until six (business) days after the Department has received the following documents ; provided

, however

, that 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 t hat the holder has available 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), issue tickets for the operations proposed under this certificate, or enter into contracts with charter operators, and any advertisement by the holder must promine ntly state: "This service is subject to receipt of government operating authority."

(3) The holder shall at all times conduct its operations in accordance with the regulations prescribed by the Department of Transportation for the services authorized by this certificate, and with such other reasonable terms, conditions, and limitations as the Department of Transportation may prescribe in the public interest.

(4) The holder shall at all times conduct its operations in accordance with all treaties and

agre ements between the United States and other countries, and the exercise of the privileges granted by2

this certificate is subject to compliance with such treaties and agreements and with any orders of the Department of Transportation issued under them or for the purpose of requiring compliance with them.

(5) The exercise of the authority granted here is subject to the holder's first obtaining from the appropriate foreign governments such operating rights as may be necessary.

(6) 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

. 

(7) The holder shall at all times remain a "Citizen of the United States " as required by

49 U.S.C. § 40102(a)(15).

(8) The holder shall maintain in effect liability insurance coverag e as required under

14 CFR Part 205. Failure to maintain such insuran ce coverage will render a certificate 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 certificate.

(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 does not commence actual flying ope rations under this certificate within one year of the date of the Department's determination of its fitness, its authority shall be revoked for dormancy, unless the holder is conducting operations under another type of certificate authority. Further, in t he event that the holder commences operations for which it was found "fit, willing, and able" and subsequently ceases all such operations, its authority under all certificates held shall be suspended under the terms of 14 CFR 204.7 and the holder may neith er recommence nor advertise such operations unless its fitness to do so has been redetermined by the Department. Moreover, if the holder does not resume operations within one year of its cessation, its authority 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 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.Attachment A

SERVICE LIST FOR DYNAMIC AIRWAYS LLC

D/B/A DYNAMIC AVIATION

JOHN R MIETUS

LAW OFFICE OF JOHN MIETUS LLC

6701 DEMOCRACY BLVD

BETHESDA MD 20817

- 7500 WILLIAM J WEBER

CERTIFICATION SECTION MANAGER

FAA AFS

- 900

45005 AVIATION DRIVE SUITE 131

DULLES VA 20166

TONY BERNHARDT

PRINCIPLE OPERATIONS INSPECTOR

FEDERAL AVIATION ADM INISTRATION

GREENSBORO FSDO 39

6433 BRYAN BOULIVARD

GREENSBORO NC 27409 PETER LYNCH AGC

- 300

ASST CHIEF COUNSEL FOR ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

ANNE SUISSA RTS

- 42

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS E

- 34

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590 BERNARD STANKUS

OFFICE OF AIRLINE

INFORMATION

DOT/R IT A/BTS RTS

- 42

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

CLAY MORITZ

OFFICE OF AIRLINE

INFORMATION

DOT/R IT A/BTS RTS

- 42

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590