Order 2012-8-11

Served: August 7, 2012

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 7th day of August, 2012 

Fitness Determination of

 KEY LIME AIR CORPORATION

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

 Docket DOT-OST-2009-0116

FINAL ORDER

By Order 2012-7-5, issued July 6, 2012, we directed all interested persons to show cause why we 

should not make final our tentative findings and conclusions that Key Lime Air Corporation is 

fit, willing, and able to provide scheduled passenger service as a commuter air carrier using 

small aircraft1 pursuant to Part 135 of the Federal Aviation Regulations. Interested persons were 

given 14 calendar days to file objections to the order.

No objections to the show-cause order were received.

ACCORDINGLY,

1. We find that Key Lime Air Corporation 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 Key Lime Air Corporation, subject to the 

Terms, Conditions, and Limitations attached. 

 1 Small aircraft is defined as any aircraft originally designed to have a maximum passenger capacity of less than 

60 seats or a payload capacity of no more than 18,000 pounds. 
2

3. 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

KEY LIME AIR CORPORATION

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 2012-8-11 Susan L. Kurland

On August 7, 2012 Assistant Secretary for

Effective (See Attached) Aviation and International Affairs
Attachment

Terms, Conditions, and Limitations

KEY LIME AIR CORPORATION

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 

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 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.
2

(5) 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 concerning security, including, but not limited to 49 CFR Part 

1544.∗

(6) The holder shall at all times remain a "Citizen of the United States" as required by 49 

U.S.C. 40102(a)(15).

(7) 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.

(8) 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. 

(9) Should the holder propose any substantial change in its ownership, management, or 

operations (as defined in 14 CFR 204.2(l)), it must first comply with the requirements of 14 CFR 

204.5.

(10) 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.

 ∗ 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.
Attachment A

SERVICE LIST FOR

KEY LIME AIR 

CORPORATION

CLIFFORD HONEYCUTT

PRESIDENT

KEY LIME AIR CORPORATION

13252 EAST CONTROL TOWER ROAD

ENGLEWOOD COLORADO 80112

GERALD F MURPHY

CROWELL & MORING LLP

1001 PENNSYLVANIA AVNUE NW

WASHINGTON DC 20004-2595

MR PETER LYNCH AGC-300

ASST CHIEF COUNSEL FOR 

 ENFORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

MR WILLIAM J WEBER

CERTIFICATION SECTION MANAGER

FAA AFS-900

45005 AVIATION DRIVE SUITE 131

DULLES VA 20166

CHRISTOPHER A LANG

PRINCIPLE OPERATIONS INSPECTOR

FEDERAL AVIATION 

ADMINISTRATION

DENVER FSDO

26805 EAST 68TH AVENUE

DENVER COLORADO 80249

OFFICE OF AIRLINE 

 INFORMATION

DOT/RITA/BTS 

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590