Order 2013-9-18

Served: September 30, 2013 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 30th day of September, 2013

Application of

 MN AIRLINES, LLC

 d/b/a SUN COUNTRY AIRLINES

For removal of fleet restriction pursuant to 49 

U.S.C. § 41109(b)

 Docket DOT-OST-2002-11861

ORDER REMOVING CONDITION

Summary

By this order, we remove the condition that limits MN Airlines, LLC d/b/a Sun Country Airlines (“Sun 

Country”) from operating no more than 18 total aircraft. 

Sun Country holds certificate authority to conduct interstate and foreign1scheduled passenger operations 

and is restricted in the number of aircraft it may operate.

2

 

Background

On May 20, 2013, Sun Country filed an application in Docket DOT-OST-2002-11861 requesting that 

the Department remove the condition that imposes fleet restrictions on the air carrier. In support of its 

request, Sun Country asserts that the removal of this restriction will allow the company to proceed with 

the orderly growth of the airline. In addition, Sun Country maintains that its operating cash needs can be 

generated through internal operations, and since the Department first imposed fleet restrictions on the 

airline in 2002, the company has consistently demonstrated its ability to operate safe and reliable 

aircraft. 

No answers to the application were received.

 

1 By Order 2007-7-3, the Department authorized Sun Country to engage in foreign air transportation with countries 

holding blanket Open Skies authority (Route 849). Sun Country also has authority to serve the Bahamas and the Dominican 

Republic pursuant to Order 97-10-8 (Route 746). 

2 By Order 2002-5-12, the Department initially authorized Sun Country to operate no more than seven aircraft. 

UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION
2

FITNESS

Company

By Order 2002-5-12, the Department found Sun Country fit to engage in interstate and foreign 

scheduled passenger air transportation and issued to it an interstate scheduled certificate authorizing 

such operations.3 The Department included a requirement that limited the number of aircraft that Sun 

Country could operate to 7 aircraft. The Department has, since then, granted Sun Country authority to 

increase its fleet to 18 aircraft.4 Sun Country currently provides scheduled and charter flights, including 

international and domestic military charters, utilizing a fleet of 17 leased Boeing 737-800 and -700 

aircraft. 

With respect to the company’s fitness, Sun Country notified the Department in February, 2013 that 

President and Chief Executive Officer Mr. Stan Gadek had been replaced by Mr. John S. Fredericksen, 

who retains his position as the air carrier’s General Counsel and Secretary of the Board of Directors. 

Additionally, Mr. M. Mitchell Davis, one of the owners of the company, was named to the Board of 

Directors, replacing Mr. Jonathan Davis. Other than these substantial changes, Sun Country asserts that 

no significant changes affecting its ownership and management, financial condition, and compliance 

disposition have occurred since its last fitness review, which was concluded in August 2012. Moreover, 

the current and historical financial statements show that Sun Country’s financial posture is positive. 

Specifically, for the four months ended April 30, 2013, Sun Country earned approximately $10.2 million 

on $154.3 million in operating revenues. The company’s balance sheet at April 30, 2013, showed the air 

carrier having current assets of $81.6 million and current liabilities of $71.2 million, giving the company 

positive working capital of approximately $10.4 million. In addition, for calendar years 2011 and 2012, 

Sun Country reported net income of about $4.3 million and $14.8 million on revenues of $308.1 million

and $361.5 million, respectively. 

Sun Country also states that there are no actions or outstanding judgments against it, its owners, or its 

key personnel, nor have there been any charges of unfair, deceptive or anti-competitive business 

practices, or of fraud, felony or antitrust violations, or other legal action, against any of these parties. 

Sun Country disclosed a pending Federal Aviation Administration’s (“FAA”) review regarding a March 

13, 2013, flight where the air carrier allegedly did not follow the approved Sun Country Exit Row Seat 

Program. The FAA’s Safety Performance Analysis System (“SPAS”) lists an additional 5 open 

enforcement actions against Sun Country. Two of these violations carry recommended civil penalties 

totaling $325,900, including a civil penalty of $323,400 for allegedly operating a maintenance test flight 

under maintenance ferry procedures. We note that while the air carrier has several actions pending 

against it, these actions appear to be typical of a company the size and scope of Sun Country. SPAS also 

indicates that Sun Country has had no accidents but has had 2 incidents5since last being found fit in 

 

3 By Order 2002-7-28, the Department issued to Sun Country its foreign scheduled passenger certificate authority.

4 By letter dated August 31, 2012, the Department found Sun Country fit to increase its fleet to 18 aircraft.

5 FAA report 20130418006529 indicates that on April 18, 2013, a Sun Country B737 required an emergency landing due 

to a flight control malfunction. Damage was sustained to the tires of the aircraft. The FAA required the flight crew to take 

additional training in crew resource management and missed approach procedures. FAA Report 20130406004239 details an

April 6, 2013, bird strike by a Sun Country B737 upon climb out at Minneapolis. As a result of the bird strike, the number 2 

engine was replaced. 
3

August, 2012. The FAA has advised us that it has no objections to us granting Sun Country’s request to 

remove the aircraft restriction. 

DECISION

The Department has reviewed the information submitted by Sun Country and finds it appropriate to 

remove the aircraft limitation under which the air carrier currently operates. The Department monitors 

new entrants closely for the first five years of operations and limits fleet growth in order to give the air 

carrier’s key management and technical personnel experience in overseeing scheduled passenger 

operations. This practice is a result of recommendations contained in the FAA 90-Day Safety Review of 

September 1996. We note that Sun Country was found fit in 2002 and for over the past ten years, the 

FAA has closely overseen and regulated the air carrier’s fleet growth and continues to do so. 

In consideration of the above, the Department finds it appropriate to approve Sun Country’s request. 

The air carrier’s financial condition since it has emerged from bankruptcy in 2011 has remained strong 

and the Department finds no reason to continue to restrict Sun Country’s operations. In addition, we 

conclude that Sun Country has the proper regard for the laws and regulations governing its operations to 

ensure that its aircraft and personnel conform to applicable safety standards and that acceptable 

consumer relations practices will be followed. We remind Sun Country, however, that although the 

Department is no longer requiring the air carrier to seek economic approval to operate additional 

aircraft, the air carrier is still subject to FAA safety approval before adding aircraft to its Operations 

Specifications. 

ACCORDINGLY,

1. We remove the condition in the interstate and foreign certificates of public convenience and 

necessity issued to MN Airlines, LLC d/b/a Sun Country Airlines, by Order 2002-5-12 that imposes a 

limitation on the number of aircraft the air carrier is authorized to operate.

2. We will serve a copy of this order on all persons 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
Attachment A

SERVICE LIST FOR MN AIRLINES, LLC 

d/b/a SUN COUNTRY AIRLINES

MR THOMAS W TING

DIRECTOR LEGAL AFFAIRS

MN AIRLINES LLC

1300 MENDOTA HEIGHTS ROAD

MENDOTA HEIGHTS MN 55120

MR MARK MAZOR 

CERTIFICATION SECTION MANAGER

FAA AFS-900

45005 AVIATION DRIVE SUITE 131

DULLES VA 20166

MR JAMES BRANNON

MSP FSDO

FEDERAL AVIATION ADMINISTRATION

6020 28TH AVENUE SOUTH

ROOM 201

MINNEAPOLIS MN 55450

MR PETER LYNCH AGC-300

ASST CHIEF COUNSEL FOR ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS E-34

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590