### BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Application of: National Air Cargo Group, Inc., d/b/aNational Airlines For an exemptionpursuant to 49

## usc §40109 (US-Canada) ) ) ) ) ) ) ) ) ) Docket DOT-OST-2015-



### APPLICATION OF NATIONAL AIRCARGRO GROUP, d/b/a NATIONAL AIRLINES FORAN EXEMPTION
Communications with respect to this document should be sent to: Edward M. Davidson President Pierre Murphy Law Offices ofPierre Murphy 

### --

National Air Cargo Group, Inc.,

d/b/aNational Airlines 5955 T. G. Lee Blvd Suite 500 1200 NewHampshire Avenue, N.W. Suite 590
Orlando, FL 32822 Washington, D.C. 20036 Telephone: (202) 776-3980 Facsimile: (202) 776-3975 Email: pmurphy@lopmurphy.com Attorney for National Air Cargo Group, Inc.

d/b/aNational Airlines

NOTICE: ANY PERSON WHO WISHES TO SUPPORT OR OPPOSE THIS APPLICATION SHOULD FILE BY

### JUNE 23, 2015AN ANSWERWITH THE DEPARTMENT AND SERVE A COPY ON ALL PERSONS ON THE ATTACHED SERVICE LIST. COUNSEL FOR NATIONAL AIRLINES WILL POLL THE CARRIERS ON THE ATTACHED SERVICE LIST AND WILL NOTIFY THE DEPARTMENT OF ANY OBJECTIONS.

June 8, 2015

### BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Application of: National Air Cargo Group, Inc., d/b/aNational Airlines For an exemption pursuant to 49

## usc §40109 (US-Canada) 

### ) ) ) ) ) ) ) ) ) Docket DOT-OST-2015-



### APPLICATION OF NATIONAL AIRCARGRO GROUP, d/b/a NATIONAL AIRLINES FORAN EXEMPTION 

### ---

National Air Cargo Group, Inc., d/b/aNational Airlines ("Applicant" or "National Airlines") hereby applies for an exemption from 49 U.S.C. §41101, and such other reliefas the Department may deem necessary, in orderto engage inthe scheduled foreign airtransportation ofpersons, property, and mail between a point or points inthe United States and a point orpoints in Canada. National Airlines proposes to engage in such services utilizing Boeing B-757-200 passenger aircraft. National Airlines plans to initiate service to Canada on or aboutNovember 1, 2015, and therefore requests that this exemption authority be granted as expeditiously as possible. 1
In support ofthis Application, National Airlines states as follows:

National Airlines shall be polling relevant parties regarding this Exemption application.APPLICATION OF NATIONAL AIRLINES FORAN EXEMPTION 

### 1. National Airlines is a citizen ofthe United States as that term is defined in the Federal Aviation Act. It is a wholly owned subsidiary ofNational Air Cargo Acquisitions, LLC ("NAC Acquisitions"), a Delaware limited liability company, which in turn is owned byNational Air Cargo Holdings, Inc. ("NAC Holdings"), a New York domestic profit corporation. Mr. Christopher J. Alf, the Chairman ofthe Board ofDirectors ofNAC Holdings, is the sole shareholder ofNAC Holdings. Mr. Alfis a citizen ofthe United States and resides in California. As the ultimate holder ofNational Airlines' voting stock, Mr. Alfis the only person holding a substantial interest inthe company as defined in 14 C.F.R. §204.2(m).

2. National Airlines is incorporated as a domestic profit corporation in the State of Michigan. 2 The airline is based in Florida at the following address:
5955 T. G. Lee Blvd Suite 500 Orlando, FL 32822

3. National Airlines operates a mixed fleet ofaircraft currently consisting ofBoeing B-747- 400 freighters and B-757-200 pax aircraft.

4. The Department has grantedNational Airlines and its predecessor company various

2 National was originally incorporated on April6, 1992 as Murray Air, Inc., which was subsequently purchased in November 2006 byNational Air Cargo, Inc. In December 2006, the name ofMurrayAir, Inc. was formally changed to National Air Cargo Group, Inc. ("NACG") which is in turn authorized by the State ofMichigan and the U.S. Department ofTransportation to conduct business as National Airlines and Murray Air. By a DOT Notice dated February 25, the Murray Air d/b/atrade name was de-registered.
2APPLICATION OFNATIONAL AIRLINES FORAN EXEMPTION 

### interstate and foreign charter certificates since 2004.3 

### The Department has also found National Airlines fit to provide scheduled combination foreign air transportation when in 2014 

### itissued a Certificate ofPublic Convenience and Necessity to provide scheduled U.S.-U.A.E. service. See: Order 2015-1-21.4



### 5. Pursuant to anApril21, 2015 application for blanket Open Skies Certificate authority,5 

### which would include U.S.-Canada authority, National had hoped this authority would have been inplace well prior to the time National needed to commence marketing its proposed U.S.-Canada service, however this authority has yet to have been issued and this exemption application is necessary.

6. National Airlines is fit, willing, and able to provide the services at issue. It

### requests that the Department take official notice pursuantto 14 C.F.R. §302.24(g) ofthe economic authorities and data on file that supportNational Airlines' fitness.

7. Issuance ofthe requested exemption is fully consistent with the public interest. The "Open Skies" Air Transport Agreement betweenthe United States and Canada dated March 12, 2007 provides for unlimited entry for the air carriers ofeach nation.

See: Orders 2004-11-6 (Murray Air interstate and foreign all-cargo charter certificate) (Dockets OST-03- 14320 & 14321); 2006-12-20 (National) (Docket OSt-2006-26610); 2011-7-15 (National interstate and foreign passenger charter certificate) (Docket OST-2010-0181 & 0215).
4 Confirming oral issuance ofeffective scheduled authority on November 10, 2014. See: Docket DOT-OST-2015-0090 (April21, 2015 Application for Blanket Open Skies Certificate Authority). 3APPLICATION OF NATIONAL AIRLINES FORAN EXEMPTION 

### 8. Issuance ofthe requested authority will not constitute a major regulatory action under the Energy Policy and Conservation Act of 1975 as defined in Part 313 ofthe Department's regulations. The grant ofthis Application will result in an increase in fuel consumption offewer than 10 million gallons. National Airlines has adequate fuel available for the services proposed.

WHEREFORE, National Air Cargo Group, Inc., d/b/aNational Airlines respectfully requests that the Department issue an exemptionto engage in the scheduled foreign air transportation ofpersons, property, and mail between a point orpoints inthe United States and a point orpoints in Canada. National Airlines further requests any further or different reliefthe Department might deem necessary.

June 8, 2015 

# A rreM hy w Of es ofPierre Murphy 00 ew Hampshire Avenue, N.W. Suite 590

4 

### Washington, D.C. 20036 Telephone: (202) 776-3980 Facsimile: (202) 776-3975 Email: pmurphy@lopmurphy.com Attorney for National Air Cargo Group, Inc.

d/b/aNational AirlinesExhibitNAC-100 

### NATIONAL AIRLINES PROPOSED U.S.

- CANADA SERVICE

Orlando, FL (MCO)- Windsor, ON Canada (YQG) Effective: 11/01/15 

# • Initial Service: 3xWeekly (WED/FRI/SUN) WEDNESDAY/SUNDAY



### Origin Orlando (MCO) Windsor (YQG) FRIDAY



### Origin Orlando (MCO) Windsor (YQG) 

### Departs Destination 10:00 (Flt # 318) Winsdor (YQG) 14:30 (Flt # 319) Orlando (MCO)



### Departs Destination 14:00 (Flt # 318) Winsdor (YQG) 17:30 (Fit# 319) Orlando (MCO)

All flights Operated 

### with B-757-200 Pax Aircraft

Fuel Usage: 3,848 gallons/round trip (average) Total Annual Fuel Usage: 600,288 gallons 

### Arrives 12:25 16:55



### Arrives 16:25 19:55

Statement ofFuel Availability: National anticipates no difficulty in obtaining adequate fuel supplies to meets the requirements ofthe service proposed
.

### Certificate ofService I hereby certify that on June 8, 2015 a copy ofthe foregoing Application ofNational Airlines was served viaemail onthe persons listed below.

Robert Silverberg (ABX 

### & ATI) Jonathan Hill (Air Wisconsin & Hawaiian) Parker Erkmann (Air Wisconsin & Hawaiian) David Heffernan (Alaska) Robert Wirick (American/USAirways) John Richardson (Amerijet) Joan Canny (Amerijet) Russell Pommer (Atlas) John Mietus (Centurion & Sky Lease) Lisa Harig (Compass, GoJet 

### & Trans State) Alexander Van der Bellen (Delta) Chris Walker (Delta) Nancy Sparks (Federal Express) John Maloney (Florida West) Martin Gitlitz (Florida West) Stephen Lachter (Frontier) Charles Donley (Horizon) Evelyn Sahr (JetBlue) Rob Land (JetBlue) Drew Derco (JetBlue) Mark Atwood (Kalitta) Kevin Montgomery (Polar) Robert Cohn (Republic) Gerald Murphy (Skywest 

### & Allegiant) Aaron Goerlich (Southern Air) Robert Kneisley (Southwest) Leslie Abbott (Southwest) Joanne Young (Spirit) David Kirstein (Spirit) Thomas Ting (SunCountry) DanWeiss (United/Continental) Steve Morrissey (United/Continental) Anita Mosner (UPS) JenniferNowak (UPS) Paul Doell (NACA) 

# v.**A~**

# ¥:c2e<**~** Kristin K. Leake rsilverberg@sgbdc.com jhill@cooley.com perkmann@cooley.com dheffeman@cozen.com robert.wirick@aa.com jrichardson@johnlrichardson.com jcanny@amerijet.com rpommer@atlasair.com john@mietuslaw.com lharig@mklawdc.com sascha.vanderbellen@delta.com chris.walker@delta.com nssparks@fedex.com jmaloney@fwia.com magitlitz@fwia.com slachter@cozen.com charles.donely@squiresanders.com esahr@eckertseamans.com robert.land@jetblue.com dderco@eckertseamans.com matwood@cozen.com kevin.montgomery@polaraircargo.com robert.cohn@hoganlovells.com gmurphy@crowell.com agoerlich@ggh-airlaw.com bob.kneisley@wnco.com leslie.abbott@wnco.com jyoung@yklaw.com dkirstein@yklaw.com thomas.ting@suncountry.com dan.weiss@united.com steve.morrissey@united.com anita.mosner@hklaw.com jennifer.nowak@hklaw.com pdoell@naca.cc