Order 2010

- 11

- 24

Served: Novem ber 22 , 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 22 nd day of Novem ber

, 2010

Fitness Determination of

ISLAND AIRLINES , LLC

as a commuter air carrier under 49 U.S.C. § 41738 Docket DOT

- OST

- 20 10

- 0156

FINAL ORDER

By Order 2010

- 11

- 4

, issued on November 5

, 2010

, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions that Island Airlines, LLC is fit,

willin g, an d able to provide air transportation as a commuter air carrier using small aircraft pursuant to

Part 135 of the Federal Aviation Regulations. Interested persons were given 14 days to file objections

to the order.

No objec tions to the show cause order were received.

ACCORDINGLY,

1. We find that Island Airlines, LLC

, is fit, willing, and able under 49 U.S.C. § 41738 to provide air transportation as a commuter air carrier using small aircraft pursuant to Part 135 of the Fed eral Aviation Regulations , subject to conditions

.

2. We issue a Commuter Air Carrier Authorization to Island Airlines, LLC

, subject to the Terms, Conditions, and Limitations attached.

3. We will serve a copy of this order on the persons listed in Attac hment 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

# Commuter Air Carrier Authorization

ISLAND AIRLINES, LLC

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 a pproval of the Department of Transportation.

By Direction of the Secretary

Issued by Order 2010

- 11

- 24 Susan L. Kurland

On November 22

, 2010 Assistant Secreta ry for Effective (See Attached) Aviation and International AffairsAttachment



### Terms, Conditions, and Limitations

ISLAND AIRLINES, LLC

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 authority to conduct scheduled passenger operations 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 thi s 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 that 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., c ash, check, or credit card) or issue tickets for scheduled passenger operations, and any advertisement or listing of flights by the holder must prominently state: "This service is subject to receipt of government operating authority."

(3) The holder shal l at all times conduct its operations in accordance with the require ments 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 li mitations as the Department of Transportation may prescribe in the public interest.

(4) 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 ope rations that would require Part 121 certification from the FAA, it must first be determined fit for such operations.

( 5 ) 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.( 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 concerni ng 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 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.

( 9 ) In the event that the holder receives effective scheduled passenger authority, the following additional conditions will apply:

(a) 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.

(b) 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 Compet ition Act of 1979, as amended or as modified by any future l egislation addressing access restrictions to or from Love Field.

( 10 ) Should the holder propose any substantial changes in its ownership, management, or operations (as that term is defined in 14 CFR 204.2(l)), it must first com ply with the requirements o f 14 CFR 204.5.

(1 1 ) In the event that the holder does not commence actual flying operations as a commuter air carrier under this authority within one year of the date of the Department's determination of its fitness, its commuter authority shall be revok ed for dormancy. Further, 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.

 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 advi se 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 ISLAND AIRLINES, LLC

MR GARY B GAROFALO

MR VICTOR H SMITH

GAROFALO GOERLICH

HAINBACH PC

1200 NEW HAMPSHIRE

AVE NW

SUITE 800

WASHINGTON DC 20036 MR JOE TAYLOR

CERTIFICATION TEAM LEAD

FEDERAL AVIATION

ADMINISTRATION

ONE CRANBERRY HILL

FOURTH FLOOR SUITE 402

LEXINGTON MA 02421 MR WILLIAM WEBER

CERTIFICATION SECTION

MANAGER

FAA AFS

- 900

45005 AVIATION DRIVE

SUITE 131

DULLES VA 20166

MR W SCOTT LAFORGE

CEO

ISLAND AIRLINES LLC

480 BARNSTABLE ROAD

HANGAR 1

HYANNIS MA 02601 MR CLAY MORITZ RTS

- 42

OFFICE OF AIRLINE

INFORMATION

DOT/RSPA/BTS E

- 36

1200 NEW JERSEY AVENUE

SE

WASHINGTON DC 20590 REGIONAL COUNSEL

FEDERAL AVIATION

ADMINISTRATION

NEW ENGLAND REGION

12 NEW ENGLAND

EXECUTIVE PARK

BURLIN GTON MA 01803

MR PETER LYNCH

AGC

- 300

FAA ASST CHIEF

COUNSEL FOR

ENFORCEMENT

800 INDEPENDENCE AVE

SW

WASHINGTON DC 20591 MR BERNARD STANKUS

OFFICE OF AIRLINE

INFORMATION

DOT/RSPA/BTS E

- 36

1200 NEW JERSEY AVENUE

SE

WASHINGTON DC 20590