Order 2010-8-1

Served: August 6, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 6

th day of August, 2006

Fitness Determination of

 SCHUMAN AVIATION COMPANY LTD.

 d/b/a MAKANI KAI HELICOPTERS

 d/b/a KO OLINA HELICOPTERS

 d/b/a PACIFIC AIR EXPRESS

 d/b/a MAKANI KAI AIR CHARTERS

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

 Docket DOT-OST-2010-0006

FINAL ORDER

By Order 2010-6-17, issued June 16, 2010, we directed all interested persons to show cause why 

we should not make final our tentative findings and conclusions that Schuman Aviation 

Company Ltd. d/b/a Makani Kai Helicopters d/b/a Ko Olina Helicopters d/b/a Pacific Air 

Express d/b/a Makani Kai Air Charters (“Schuman Aviation”) is fit, willing, and able to provide 

scheduled passenger service as a commuter air carrier using small aircraft pursuant to Part 135 of 

the Federal Aviation Regulations. Interested persons were given 14 calendar days to file 

objections to the order.

On June 29, 2010, Pacific Wings, LLC. d/b/a Pacific Wings Airlines d/b/a PW Express d/b/a 

Kentucky Skies d/b/a KentuckySkies d/b/a Tennessee Skies d/b/a TennesseeSkies d/b/a 

GeorgiaSkies d/b/a Georgia Skies d/b/a Nashville Air Shuttle d/b/a New Mexico Airlines

(“Pacific Wings”), a U.S. certificated air carrier,1 filed an objection to the show-cause order. 

Pacific Wings states that it does not object to the Department’s tentative finding proposing to 

find Schuman Aviation fit, willing, and able to provide scheduled passenger service as a 

commuter air carrier. It does, however, object to Schuman’s registration of the trade name 

“Pacific Air Express.” 

Pacific Wings states that it currently performs scheduled and charter operations between and 

among destinations in Hawaii using the names Pacific Wings, Pacific Wings Airlines, and/or PW 

Express. Moreover, Pacific Wings states that it performs its inter-island flights using 9-seat 

aircraft similar to the aircraft Schuman Aviation proposes to operate and contends that the use of 

the name “Pacific Air Express” by Schuman Aviation will result in public confusion. Pacific 

 

1 See Order 2001-8-2, issued August 7, 2001.
2

Wings also asks that the Department preclude Schuman Aviation from using the “Pacific Air 

Express” name in scheduled or charter passenger service.

On July 14, 2010, Schuman Aviation filed a response to the objection of Pacific Wings. 

Schuman Aviation believes that there is no potential for public confusion regarding its operations 

using the Pacific Air Express name.2 The applicant states that it currently only uses the Pacific 

Air Express name for inter-island Hawaii flights operated on behalf of Pacific Air Cargo 

pursuant to an agreement between the companies. Schuman also states that it intends to conduct 

its ongoing charter passenger operations using the name Makani Kai Air Charters and that its 

proposed commuter operations will be operated using the name “Island Air” pursuant to an 

agreement with Island Air, whereby Hawaii Island Air d/b/a Island Air (“Island Air”), a U.S. 

certificated air carrier,3 would sell and market the service. Furthermore, Schuman Aviation

claims that Pacific Wings lacks the appropriate Federal Aviation Administration (“FAA”) 

authority and the proper equipment to provide air service between Honolulu International Airport 

and Princeville Airport, the market in which Schuman Aviation intends to conduct its proposed 

commuter operations. 

On July 22, 2010, Pacific Wings filed a reply to Schuman Aviations response. Pacific Wings 

reiterates its belief that the use of the name “Pacific Air Express” by Schuman Aviation will 

result in public confusion and refutes Schuman Aviation’s contention that it lacks the required 

authority or equipment to provide air service between Honolulu International Airport and 

Princeville Airport. Finally, Pacific Wings ask that the Department condition its final order in 

this proceeding on Schuman not using the “Pacific Air Express” name in any of its operations. 

No other objections to Order 2010-6-17 were received.

Under Part 215 (14 CFR 215) of our rules, requires air carriers to seek Department approval for 

the use of a name and to notify all air carriers that use a similar name. In 1988, the Department 

issued a final rule applicable to all certificated air carriers, commuter air carriers, foreign direct 

air carriers, and applicants for initial or amended authority stating, among other things, that we 

would not necessarily prohibit similar name registrations,4 and encouraging air carriers to resolve 

potential problems among themselves using existing legal protections without unnecessary 

government action. 

At the same time, the Department is charged with ensuring that the public is not subject to any 

unfair or deceptive practices or unfair methods of competition. 49 U.S.C. § 41712. Thus, 

although we made clear in Part 215 that we would not ordinarily become involved in name 

similarity disputes, we specifically reserved the possibility of intervention where there was 

evidence of a significant potential for public confusion. 14 CFR 215.2. The Department may

also pursue enforcement action in cases where there is evidence of actual public harm or 

 

2 We will grant Schuman Aviation leave to file an Otherwise Unauthorized Document.

3 See Order 2006-6-9.

4 Use and Change of Names of Air Carriers, Foreign Air Carriers, and Commuter Air Carriers; Final Rule. 

(53 FR 17921; May 19, 1988)
3

confusion in violation of the unfair and deceptive practices provisions set forth under 

49 U.S.C. 41712; however, no such practices have been alleged here. 

In this case, we find no compelling evidence that would lead us to conclude that public confusion 

would likely result from the applicant’s use of the “Pacific Air Express” name in its operations. 

The names used by the two companies are not identical. Moreover, as Schuman Aviation noted 

in its response to Pacific Wings’ objection, it has been using the Pacific Air Express name in 

Hawaii in connection with operations on behalf of Pacific Air Cargo and it intends to conduct its 

proposed commuter operations pursuant to an agreement with Island Air, whereby Island Air 

would sell and market the service under the Island Air name. In addition, we note that each air 

carrier has performed their respective operations simultaneously now for more than two years 

and the Department is neither aware of any evidence of public harm or confusion nor have we 

received any consumer complaints regarding the applicant and its operating name.

In light of the above, we acknowledge the registration of the trade name “Pacific Air Express”

for use by Schuman Aviation in its operations. However, should the Department find evidence 

of public confusion, we will take appropriate action under § 41712. 

ACCORDINGLY,

1. We find that Schuman Aviation Company Ltd. d/b/a Makani Kai Helicopters d/b/a Ko Olina 

Helicopters d/b/a Pacific Air Express d/b/a Makani Kai Air Charters is fit, willing, and able 

under 49 U.S.C. § 41738 to provide scheduled passenger service as a commuter air carrier using 

small aircraft pursuant to Part 135 of the Federal Aviation Regulations.

2. We issue a Commuter Air Carrier Authorization to Schuman Aviation Company Ltd. d/b/a 

Makani Kai Helicopters d/b/a Ko Olina Helicopters d/b/a Pacific Air Express d/b/a Makani Kai 

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

3. We direct Schuman Aviation Company Ltd. d/b/a Makani Kai Helicopters d/b/a Ko Olina 

Helicopters d/b/a Pacific Air Express d/b/a Makani Kai Air Charters to submit to the Air Carrier 

Fitness Division a first year progress report within 45 days following the end of its first year of 

commuter operations.5 

 

5 The report should include a description of the air carrier’s current operations (number and type of aircraft, 

principal 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, a balance sheet as of the end of the company’s first full year of actual flight operations and a twelve month 

income statement ending that same date, 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. 
4

4. We grant all motions for leave to file an Otherwise Unauthorized Document filed in Docket 

DOT-OST-2010-0006.

5. We will serve a copy of this order on the persons listed in Attachment 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

SCHUMAN AVIATION COMPANY LTD.

d/b/a MAKANI KAI HELICOPTERS

d/b/a MAKANI KAI AIR CHARTERS

d/b/a KO OLINA HELICOPTERS

d/b/a PACIFIC AIR EXPRESS

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 approval of the Department of 

Transportation.

By Direction of the Secretary

Issued by Order 2010-8-1 Susan L. Kurland

On August 6, 2010 Assistant Secretary for

Effective (See Attached) Aviation and International Affairs
Attachment

Terms, Conditions, and Limitations

SCHUMAN AVIATION COMPANY LTD.

D/B/A MAKANI KAI HELICOPTERS 

D/B/A KO OLINA HELICOPTERS 

D/B/A MAKANI KAI AIR CHARTERS 

D/B/A PACIFIC AIR EXPRESS

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 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 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., cash, 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 shall at all times conduct its operations in accordance with the requirements 

of 14 CFR Part 298 and any other regulations prescribed by the Department of Transportation 
2

for the services authorized here, and with such other reasonable terms, conditions, and 

limitations as the Department of Transportation may prescribe in the public interest.

(4) The holder’s authority is limited to operations conducted pursuant to Part 135 of the 

Federal Aviation Regulations. In the event that the holder wishes to institute operations 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 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 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 Competition Act of 1979, as amended or as 

modified by any future legislation 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 comply with the 

requirements of 14 CFR 204.5.

 

 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.
3

(11) 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 revoked 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.
Attachment A

SERVICE LIST FOR

SCHUMAN AVIATION COMPANY LTD.

D/B/A MAKANI KAI HELICOPTERS 

D/B/A KO OLINA HELICOPTERS 

D/B/A MAKANI KAI AIR CHARTERS 

D/B/A PACIFIC AIR EXPRESS

RICHARD SCHUMAN

PRESIDENT

SCHUMAN AVIATION COMPANY LTD

130 IOLANA PLACE

HONOLULU HAWAII 96819

PETER LYNCH AGC-300

ASST CHIEF COUNSEL FOR ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

WILLIAM J WEBER

CERTIFICATION SECTION MANAGER

FAA AFS-900

45005 AVIATION DRIVE SUITE 131

DULLES VA 20166

GINO REZZONICO

PRINCIPLE OPERATIONS INSPECTOR

FEDERAL AVIATION ADMINISTRATION

HONOLULU FSDO

135 NAKOLO PLACE 

HONOLULU HAWAII 96819

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/RITA/BTS RTS-42

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

CLAY MORITZ

OFFICE OF AIRLINE INFORMATION

DOT/RITA/BTS RTS-42

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

GREG WALDEN

PATTON BOGGS LLP

2550 M STREET NW

WASHINGTON DC 20037