BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

------------------------------------------------------------------------

:

Application of :

:

UNIVERSAL JET AVIATION, INC. : Docket DOT-OST-2011-0152

:

for an exemption from 14 C.F.R. Part 298 :

:

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APPLICATION OF

UNIVERSAL JET AVIATION, INC.

FOR RENEWAL OF PENDENTE LITE EXEMPTION

AND MOTION TO SHORTEN ANSWER PERIOD

Communications with respect to this document should be sent to:

Michael McCauley

President

UNIVERSAL JET AVIATION INC.

Boca Raton Airport

3700 Airport Road

Suite 204

Boca Raton, FL 33431

(961) 989-0025

February 21, 2011

Lorraine B. Halloway

Gerald F. Murphy

CROWELL & MORING LLP

1001 Pennsylvania Avenue, NW

Washington, DC 20004-2595

(202) 624-2500

lhalloway@crowell.com

gmurphy@crowell.com

Counsel for

Universal Jet Aviation, Inc.

NOTICE: Answers to this application would be due under normal procedures on March 7,

2012. Universal Jet Aviation, Inc. is requesting that the Department shorten the

answer period and require answers to be filed no later than Monday, February 27,

2012, or to act without waiting for answers. Universal will conduct a poll of all

carrier representatives on the service list to this application and immediately notify

the Department of the results.
BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

------------------------------------------------------------------------

:

Application of :

:

UNIVERSAL JET AVIATION, INC. : Docket DOT-OST-2011-0152

:

for an exemption from 14 C.F.R. Part 298 :

:

------------------------------------------------------------------------

APPLICATION OF

UNIVERSAL JET AVIATION, INC.

FOR RENEWAL OF PENDENTE LITE EXEMPTION

AND MOTION TO SHORTEN ANSWER PERIOD

Universal Jet Aviation, Inc. (“Universal” or the “Company”) requests a renewal of its

exemption pendente lite from Part 298 of the Department’s Economic Regulations most recently

granted by the Department pursuant to Order 2011-11-34, to the extent it permits Universal to

operate one executive-configured Boeing 737 aircraft (“Boeing Business Jet” or “BBJ”) in

foreign on-demand air transportation. Although the Department has already granted Universal’s

application for certificate of public convenience and necessity to engage in the interstate charter

air transportation of persons, property and mail, and also tentatively determined that Universal is

fit, willing, and able to conduct foreign charter air transportation, the issuance of a final order

granting Universal’s application for a corresponding foreign charter certificate is subject to a

statutory 60-day Presidential review period.1 Universal anticipates that the Department will

issue a final order granting its foreign charter certificate on or before March 31, 2012; however,

1

See Order 2012-1-35 at n. 2 (citing 49 U.S.C. § 41307).
Renewal Application of Universal

Page 2

absent renewal, Universal’s exemption authority to conduct foreign charter operations will expire

on February 29, 2012.2Extending the relief provided to Universal is in the public interests of

preserving contract sanctity and providing service options for passengers, and under the unique

circumstances presented. Indeed, the same compelling reasons supporting the Department’s

initial grant of Universal’s exemption and its recent renewal thereof continue today and justify

the requested renewal.

In support of its application, Universal states as follows:

1. On August 17, 2011, the Department granted Universal “an exemption until

November 30, 2011 from the provisions of 14 C.F.R. Part 298 to the extent necessary to enable it

to operate a single Boeing Business Jet in on-demand charter operations.”3 On November 30,

2011, the Department renewed that exemption through February 29, 2012.4The Department has

since issued a show cause order tentatively granting Universal’s applications for certificates of

public and convenience and necessity to engage in interstate and foreign charter air

transportation of persons, property, as well as a final order awarding Universal’s interstate

certificate.5 Nevertheless, because the Department’s final order on issuance of Universal’s

foreign charter certificate is subject to a statutory 60-day Presidential review period6and its

2

See Order 2011-11-34 at 3.

3 Order 2011-8-19 at 3.

4

See Order 2011-11-34.

5

See Order 2012-1-35 at 1 (citing Order 2012-1-11). No answers nor objections were filed in

response to the Department’s show cause order. See Dockets DOT-OST-2011-0150 and Dockets DOT-OST-2011-

0151.

6

See id. at n. 1.
Renewal Application of Universal

Page 3

exemption authority allowing it to conduct foreign charter air transportation will expire in the

interim, Universal requires the temporary renewal sought by this application.

2. The Company has operated the 16-seat BBJ as part of its extensive and worldwide

charter operations, involving nearly a dozen other large cabin business jet aircraft7 with

essentially the same characteristics, capability, and operational profile, and provided safe and

reliable air transportation to its customers in doing so. Universal has a proven track record of

more than 10 years of providing global air transportation solutions to private individuals and

corporate personnel. As the Department concluded after reviewing Universal’s applications for

interstate and foreign charter certificates, there is no question that the Company possesses the

necessary experience and expertise to offer foreign charter service with the BBJ as part of its

fleet.8

3. Given its operational profile, the overwhelming majority of Universal’s BBJ

charters are international in nature. The Company’s ongoing commitment to its customers and

its obligations to provide charter service with the BBJ under its Management Agreement with the

aircraft’s owner are also dependent on Universal’s ability to conduct foreign charters. Thus, the

7 Universal has 11 large cabin Gulfstream business jets, 1 mid-size Learjet and a Bell 430 executive

helicopter listed on its FAA certificate. See http://avinfo.faa.gov/detail.asp?DSGN_CODE=UJ8A&OPER_FAR=135&OPER_NAME=UNIVERSAL+JET+AVIATION

+INC.

8

See Order 2012-1-11 at 2-4.
Renewal Application of Universal

Page 4

same public interest rationale upon which the Department granted Universal relief in August and

November continues to hold true today with respect to Universal’s foreign charter operations.9

4. As the Department has recognized, the BBJ’s “owners pay most of the operating

costs to Universal Jet...[and did] not include[e] them in [its] fitness determination.” 10 For that

reason, there is little need for concern regarding an impact on Universal’s financial position as it

was reviewed by the Department when it tentatively determined to award Universal a foreign

charter certificate.

5. The Department’s recent renewal of the Company’s exemption authority was also

based on “Universal Jet [having] submitted applications for the appropriate economic authority

to operate the BBJ immediately upon being notified of the processing error in accepting

registration of the BBJ under Part 298...[and its] good faith effort to comply with the laws and

regulations governing its services.”11 In light of the Company’s efforts to prosecute its

certificate applications, the Department’s final order granting Universal’s interstate charter

certificate, and the Department’s unopposed tentative decision to also grant the Company’s

application for a foreign charter certificate, failure to grant this temporary renewal of Universal’s

9

See, e.g., Order 2011-11-34 at 2 (“Because Universal Jet’s air taxi registration was inadvertently

processed with the addition of the BBJ, Universal Jet reasonably believed that the BBJ qualified for air taxi service

when placed in operation, and thus entered into contracts, including a long-term contract, for the use of this specific

aircraft”). Universal will also maintain the BBJ’s current executive seating configuration and has no plans to

operate the aircraft in a configuration that will ever exceed, nor come even close to, 60 seats. Indeed, the Company

is not permitted to operate aircraft with more than 30 seats under the terms of its existing FAA air carrier certificate.

See 14 C.F.R. § 110.3 (2011) (aircraft to be used in “on-demand” operations may have an actual passenger-seat

configuration of not greater than 30 seats, excluding crewmember seats, and a payload capacity not exceeding 7,500

pounds).

10 Order 2012-1-11 at 5.

11 Order 2011-11-34 at 2.
Renewal Application of Universal

Page 5

exemption authority until the Department is no longer statutorily prevented from finalizing its

tentative decision would yield an incredibly unjust result.

6. Universal also requests that the Department shorten the period for answers to this

application, so that answers are due no later than Monday, February 27, or act without waiting

for answers, to enable Universal to continue to provide the foreign charter air transportation

authorized by Order 2011-11-34. While the Department’s normal procedures would provide for

an answer period of 15 days, good cause clearly exists for the Department to provide this relief

under the circumstances presented. Nevertheless, Universal will conduct a poll of all carrier

representatives listed on the service list to this application and immediately notify the

Department of the results.

WHEREFORE, Universal respectfully requests that the Department shorten the answer

period and promptly renew Universal’s exemption pendente lite from the provisions of Part 298

of its Economic Regulations, thus permitting Universal to continue to operate one executiveconfigured Boeing Business Jet in foreign on-demand charter operations pending the

Department’s action on Universal’s pending application for a certificate of public convenience

and necessity to engage in foreign charter air transportation.

Respectfully submitted,

CROWELL & MORING LLP

/s/ Gerald F. Murphy

____________________________________

Lorraine B. Halloway

Gerald F. Murphy

lhalloway@crowell.com

gmurphy@crowell.com

Counsel for

Universal Jet Aviation, Inc.
CERTIFICATE OF SERVICE

I certify that I have this date served the foregoing document on the following persons in

accordance with the Department’s Rules of Practice.

mlbenge@zsrlaw.com

marshall.sinick@ssd.com

jamestello@earthlink.com

pmurphy@lopmurphy.com

Jerry.Proenza-SR@faa.dot.gov

Ken A. Day

Airport Manager

3701 FAU Boulevard

Suite 205

Boca Raton, FL 33431

Fax: (561) 391-2238

/s/ Gerald F. Murphy

__________________________________

Gerald F. Murphy

February 21, 2012

DCACTIVE-17666574.1