Order 2012-6-1

Served: June 1, 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 1st day of June, 2012

Application of 

 SUN AIR EXPRESS, LLC

 d/b/a SUN AIR INTERNATIONAL

for authority to engage in scheduled passenger 

operations as a commuter air carrier under 

49 U.S.C. § 41738

Docket DOT-OST-2011-0169

ORDER TO SHOW CAUSE

PROPOSING ISSUANCE OF COMMUTER AIR CARRIER AUTHORITY

Summary

By this order, we tentatively find that Sun Air Express, LLC d/b/a Sun Air International (“Sun 

Air”) is a citizen of the United States and is fit, willing, and able to provide scheduled passenger 

operations as a commuter air carrier, subject to conditions.

Background

Section 41738 of Title 49 of the United States Code (“the Transportation Code”) and section 

298.21(d) of the Department’s Aviation Economic Regulations direct us to determine whether 

companies proposing to provide scheduled passenger service as commuter air carriers are “fit, 

willing, and able to perform the service,” and to ensure that all operations relating to this service 

conform to the safety standards established by the Federal Aviation Administration (“FAA”). In 

making fitness findings, the Department uses a three-part test that reconciles the Airline 

Deregulation Act’s liberal entry policy with Congress’ concern for operational safety and 

consumer protection. The three areas of inquiry that must be addressed in order to determine an 

air carrier’s fitness are whether the applicant: (1) will have the managerial skills and technical 

ability to conduct the proposed operations, (2) will have sufficient financial resources to 

commence the operations proposed without posing an undue risk to consumers or their funds, 

and (3) will comply with the Transportation Code and regulations imposed by Federal and State 

agencies. We must also determine that the applicant is a U.S. citizen.

On September 9, 2011, Sun Air filed an application in Docket DOT-OST-2011-0169 for 

authority to conduct scheduled passenger operations as a commuter air carrier pursuant to section 
2

41738 of the Transportation Code. Sun Air accompanied its application with the fitness 

information required by section 204.3 of our regulations (14 CFR 204.3).

On September 23, 2011, Sun Air amended its application to reflect a change in the market it 

intends to serve. Instead of offering commuter service between West Palm Beach, Florida, and 

Freeport, Grand Bahamas, Sun Air now intends to provide one daily roundtrip flight between 

Miami, Florida, and Bimini, Bahamas. 

On September 30, 2011, VPAA Co. d/b/a Gulfstream International Airlines (“Gulfstream”),

1

a 

U.S. commuter air carrier and the prior owner of Sun Air,

2 filed an answer in response to Sun 

Air’s application, alleging that Sun Air is not able to perform the scheduled services it proposes. 

In support of its position, Gulfstream claims that based on a provision in the Membership Interest 

Purchase Agreement (“Membership Agreement”) entered into by Gulfstream and Sun Air’s 

current owners, Sun Air could not engage in scheduled operations or compete with Gulfstream in 

certain markets the company serves, which consist primarily of markets between Florida and the 

Bahamas, without Gulfstream’s prior written consent. Gulfstream further states that “Sun Air’s 

operational restrictions are material and relevant to the Department’s decision-making process 

regarding whether Sun Air is able to perform the requested scheduled service.”3

On October 7, 2011, Sun Air filed a reply, disagreeing with Gulfstream’s interpretation of the 

provision in the Membership Agreement. Sun Air claims that the provision at issue simply states 

that “Sun Air cannot fly or serve, or provide schedule services, on any point or point route in 

which Gulfstream operates.”4 The applicant states that Gulfstream does not offer service 

between Miami and Bimini, and therefore, Sun Air’s proposed scheduled service in this market 

is new and does not violate the Membership Agreement. 

By letter dated October 21, 2011, the Department requested updated information and 

clarification from Sun Air. Specifically, the Department asked the applicant to clarify dates of 

employment for its key personnel and to provide updated financial forecasts and third-party 

verification of funding available to the company.

On November 15, 2011, Sun Air supplemented its application. The applicant provided the 

Department’s requested information and noted that it increased its pre-operating cost forecast to 

account for additional legal fees and monthly set up fees for its newly purchased Radixx air 

passenger reservation system. 

 1 During the pendency of this application, VPAA Co. changed its corporate name to “Silver Airways Corp.” To 

avoid confusion, however, we will continue to reference the company as either VPAA or Gulfstream.

2 On January 21, 2011, VPAA acquired its ownership interest in Sun Air through the bankruptcy proceeding of 

Gulfstream International Group, Inc. (“GIG”). At that time, GIG was the parent company of Gulfstream 

International Airlines, Inc. (“GIA”), a U.S. commuter air carrier, and Gulfstream Connection, Inc. (“Connection”), a 

U.S. air taxi known now as Sun Air. Subsequently, VPAA was found fit as a commuter air carrier 

(See Order 2011-4-28) and reorganized Sun Air into a Delaware limited liability company. On July 26, 2011, 

VPAA sold its ownership interest in Sun Air to Cooper Trading Corporation and Mr. Thomas L. Cooper. 

Mr. Cooper was a former owner and executive of GIG, GIA, and Connection. 3 See Answer of VPAA (Gulfstream) dated September 30, 2011, at 5. 4 See Reply of Sun Air dated October 7, 2011, at 3.
3

On November 22, 2011, Gulfstream filed an answer in response to Sun Air’s supplemental filing, 

requesting the Department to deny the application at issue herein until “Sun Air provides (1) a 

realistic response to the Department’s October 21, 2011, request regarding an estimate of the air 

carrier’s legal fees and (2) an explanation regarding how it intends to operate between Miami 

and Bimini, Bahamas, when Gulfstream intends to commence operations in the identical market 

in early 2012.”5 In addition, Gulfstream claims that Sun Air grossly underestimated its preoperating legal fee expenses in view of the fact that “Gulfstream is fully prepared to initiate 

litigation to enforce its rights under the [Membership] Agreement.”6

On November 29, 2011, Sun Air filed a reply, stating that Gulfstream has not provided any new 

arguments in the record of this case and the only difference in Gulfstream’s pleading is the fact 

that the company has suddenly decided to offer service between the same markets Sun Air 

proposes to provide scheduled service to. Sun Air asserts that Gulfstream’s decision to enter the 

Miami-Bimini market is a “crude attempt to forestall competition in the entire Florida-Bahamas 

market.”7

By letter dated December 29, 2011, the Department requested that Sun Air submit third-party 

verification from Cooper Trading Company showing that the company has the financial 

wherewithal to provide Sun Air a $100,000 line-of-credit. On January 6, 2012, Sun Air filed the 

requested information. 

We have reviewed the arguments submitted by Gulfstream and Sun Air regarding Sun Air’s 

ability to provide the proposed scheduled service based on a provision in a commercial contract 

freely entered into by Sun Air and Gulfstream and believe that this issue should not be decided in 

the context of the Department’s licensing proceeding. Rather, such issues should be resolved in 

the appropriate legal forum established to address contractual disputes. Further, should Sun Air 

be found fit to commence scheduled passenger operations as a commuter air carrier and should 

Gulfstream choose to pursue legal action against Sun Air, which the Department acknowledges 

could impact both companies’ financial position, the Department will not hesitate to initiate a 

review of both air carriers’ fitness and take whatever action may be necessary as a result. 

On February 23, 2012, SeaPort Airlines, Inc. (“SeaPort”), filed a motion for leave to file an 

otherwise unauthorized document, stating that Sun Air’s required level of funding necessary to 

meet the Department’s financial fitness test for commuter authority is significantly greater than 

that currently reflected in the company’s commuter application. In support of its position, 

SeaPort notes that since applying for commuter authority, Sun Air has, in a separate proceeding, 

submitted a proposal to provide Essential Air Service (“EAS”) to three communities in Alabama 

and Mississippi,

8 which changes the operating plan of Sun Air. SeaPort argues that Sun Air 

should provide updated financial fitness information to reflect the additional scheduled flights it 

proposes to operate. The air carrier maintains that the potential impact on EAS communities 

should Sun Air be granted commuter authority based at the insufficient funding level in its 

 5 See Answer of VPAA (Gulfstream) dated November 22, 2011, at 1. 6 Id., at 2. 7 See Reply of Sun Air dated November 29, 2011, at 2. 8 See Order 2011-11-29, Order requesting proposals to provide EAS to Muscle Shoals, Alabama; Greenville, 

Mississippi; Laurel/Hattiesburg, Mississippi; and Tupelo, Mississippi. 
4

commuter application and then subsequently suspend flights for financial reasons would “be a 

great inconvenience to travelers, negatively impact the economies of affected communities, and 

place a burden on the replacement carrier to have to rebuild the market’s traffic after a period of 

dormancy.”9

On February 28, 2012, Sun Air filed updated fitness information10 and opposition to SeaPort’s 

motion and comments. Sun Air states that it did inform the Department of its plans to submit an 

EAS proposal while its commuter application was pending. The company further states that 

should the Department select it to provide scheduled service between Memphis and the EAS 

communities, a separate proceeding in which proposals are still being considered, Sun Air will 

update its fitness information, namely providing the required financial forecasts and other 

financial information, to the Department. Moreover, Sun Air requests that the Department 

proceed with processing its commuter application, having provided all of the necessary fitness 

information relating to its proposed commuter air carrier services between Miami and Bimini.

SeaPort correctly notes that any changes affecting a new air carrier’s application for economic 

authority should be reflected in the record. The Department has, in the past, informed air carriers 

wishing to engage in EAS, to submit the appropriate application for economic authority to the 

Department that reflects the schedule it intends to provide under its EAS proposal. In these 

instances, the new air carrier applicant wishes to engage in scheduled operations solely to 

provide EAS and to specific EAS communities. That being said, the case herein is different. 

As mentioned previously, Sun Air’s main objective to obtain commuter authority is to operate 

daily roundtrip service between Miami and Bimini, and in this regard, we agree with Sun Air that 

processing of its commuter application to allow it to provide scheduled service between these 

markets should proceed while proposals to provide EAS to communities in which Sun Air is an 

applicant continue to be evaluated.11 Sun Air is fully aware that should it be selected to provide 

EAS, it must submit updated financial forecasts and third-party verification of funds available to 

it to support the additional operations. Moreover, Sun Air provided third-party verification from 

Mr. Thomas Cooper, the applicant’s owner, showing that he has more than $2.0 million on 

deposit in his name as of January 3, 2012, which should alleviate some concerns regarding Sun 

Air’s financial ability to support additional scheduled passenger operations. 

Under these circumstances, we propose to decide the issue of Sun Air’s fitness on the basis of the 

written record. Based on our review of the record in this case, we tentatively conclude that Sun 

Air is a U.S. citizen and is fit, willing, and able to operate its proposed commuter services, 

 9 See Motion of SeaPort, at 6. 10 Changes affecting Sun Air’s fitness are reflected in the FITNESS section of this order. 11 Most importantly, we note that the Department, by Order 2012-3-4, rejected the proposals filed by, among 

others, Sun Air and SeaPort, to provide EAS to communities in Alabama and Mississippi, and solicited its third 

round of proposals. The period in which air carriers could submit proposals to serve these EAS communities has 

passed and Sun Air did not resubmit a proposal. The company has, however, submitted a new EAS proposal to 

provide scheduled passenger service to Hagerstown, Maryland, and Lancaster, Pennsylvania (See Docket DOT2006-25228 (Hagerstown, MD) and Docket DOT-OST-2002-11450 (Lancaster, PA). The Department has yet to 

select an air carrier in that proceeding.
5

subject to conditions. However, we will give interested persons an opportunity to show cause 

why we should not adopt as final these tentative findings and conclusions. 

FITNESS

The Company

Sun Air, an air taxi operator registered under Part 298 of the Department’s regulations, was 

organized as a limited liability company under the laws of the State of Delaware on 

May 4, 2011.

12 The company holds a Part 135 certificate from the FAA authorizing on-demand 

passenger and cargo operations. Sun Air primarily provides its passenger charter service within

Florida and between Florida and the Bahamas, and all-cargo charter service between Miami, 

Florida, and Havana, Cuba, 13 using four Piper Chieftan aircraft. The air carrier is wholly owned 

by Cooper Trading Corporation (“Cooper Trading”), which is in turn, wholly owned by 

Mr. Thomas L. Cooper, a U.S. citizen. 

Managerial Competence

Mr. Cooper, an Airline Transport Pilot, is Sun Air’s President and Chief Executive Officer 

(“CEO”). He is also Chairman and President of Sebastian Aero Services, Inc. (2010-present); 14

President and CEO of Gulfstream Air Charter, Inc. (2005-present); and Chairman, CEO, and 

President of Cooper Trading (1998-present). Prior to this, Mr. Cooper held executive-level 

positions with various companies, including Aero Group Associates (2002-2005), Gulfstream 

International Airlines (1989-2005), G-Air Holdings Corp. (1998-2005), Gulfstream Academy of 

Aeronautics/Gulfstream Air Charter (1998-2005), and Gulfstream Training Academy (1997-

 12 The company was incorporated initially in 1992 as River Valley Aviation Academy, Inc., under the laws of the 

State of Arkansas. At that time, the company provided flight training and on-demand charter services under 

14 CFR Part 141 and Part 135, respectively. In 1998, the company changed its name to Gulfstream International 

Airlines Training Academy, Inc., and was sold later that year to Gulfstream Training Academy, Inc., a Florida 

corporation owned by Mr. Thomas L. Cooper (50 percent) and Mr. Thomas P. Cooper (50 percent). In May 2001, 

Gulfstream International Training Academy transferred its operations from Arkansas to Florida, and changed its 

name to Gulfstream Academy of Aeronautics, Inc., incorporated under the laws of the State of Florida. In May 

2002, the company restructured and changed its name to Gulfstream Air Charter, Inc., and transferred its Part 141 

operations to a newly formed and separate Florida company, Gulfstream Academy of Aeronautics. Also in May 

2002, Gulfstream Training Academy, the parent company of Gulfstream Air Charter, changed its corporate name to 

Aero Group Associates, Inc., and transferred its assets to a newly formed Florida marketing corporation named 

Gulfstream Training Academy. In August 2003, Aero Group Associates sold Gulfstream Air Charter to Mr. Thomas 

L. Cooper (50 percent) and Mr. Thomas P. Cooper (50 percent). Mr. Thomas P. Cooper subsequently sold his 

ownership shares in Gulfstream Air Charter to Mr. Thomas L. Cooper, leaving the company 100 percent owned by 

Mr. Thomas L. Cooper. Over the past few years, the company’s name has changed from Gulfstream Air Charter to 

Gulfstream Connection to Gold Coast Airline, LLC, and most recently on June 16, 2011, from Gulfstream 

Connection to Sun Air Express. 13 Sun Air has a contract with Gulfstream Air Charter, Inc., an indirect air carrier that is licensed by the Office of 

Foreign Assets Control and authorized by the Department to arrange public charter air transportation between 

authorized U.S. airports and authorized Cuban airports, to transport, on an as-needed basis, overflow baggage from 

Miami, Florida, to Havana, Cuba.

14 Sebastian Aero Services, Inc., is a fixed-based operation that provides aircraft maintenance, aircraft tie-down 

services, aircraft, and aviation fuel. 
6

2005). Mr. Cooper was also a Pilot, Captain, and Check Airman for Eastern Airlines (1962-

1991) and President of Caribbean Express Airlines (1982-1985).

Mr. Leo Krupilis is Sun Air’s Director of Maintenance since July 2011. Prior to joining the 

company, he was the Senior Vice President of Maintenance for Gulfstream International Airlines

where he was responsible for 21 aircraft and 72 employees (1988- 2011). Mr. Krupilis was also 

employed by Paradise Island Airlines as its Director of Maintenance/Maintenance Control 

Manager (1995-1998), and by Allegheny Commuter Airlines for over 17 years, serving in 

various capacities including Line Maintenance Manager, Maintenance Supervisor, and Quality 

Control Supervisor (1978-1994). From 1973-1977, Mr. Krupilis served in the U.S. Navy as a 

mechanic.

Mr. Lahouari Otmane was promoted to Sun Air’s Director of Operations in December 2011, 

after having served as the applicant’s Chief Pilot since July 2011. An Airline Transport Pilot, 

Mr. Otmane has held various pilot positions with companies such as Gulfstream Connection 

(2008-2011), Dayjet, Inc. (2008), Airflight Inc. (2007-2008), and Noble Air Charters (2007). 

Mr. Mark D. Reichard recently joined the applicant in February 2012 as its Chief Pilot. Before 

this, he was employed by CommutAir (2011) and Gulfstream Connection (2010-2011), 

managing each company’s compliance with Federal and State regulations, writing manuals, and 

acting as company liaison with the FAA and other company officials. Mr. Reichard has served 

in various capacities, including Director of Regulatory Compliance and Project Integration, Vice 

President of Training, Chief Pilot, Director of Maintenance, and Mechanic, with Gulfstream 

International Airlines (1992-2000 and again from 2009-2010). In addition, he was a 

Certification Program Manager for CAVOK Group (2004-2009); and Fleet Manager for US 

Airways (2002-2004) and Continental Express (2000-2002).

In view of the experience and background of the applicant’s key personnel, we tentatively 

conclude that Sun Air has the management skills and technical ability to conduct its proposed

commuter service.

15

Financial Condition and Operating Proposal

If granted the commuter authority it seeks, Sun Air proposes to provide scheduled passenger

service consisting of one round trip flight each day between Miami, Florida, and Bimini, 

Bahamas, utilizing four Piper aircraft with nine passenger seats. 

Sun Air provided forecasts of its pre-operating costs and first-year revenues and expenses for its 

proposed commuter operations. The applicant will operate the same or similar aircraft to that it 

currently operates in its air taxi operations. Therefore, Sun Air indicated that it has all necessary 

infrastructure in place, including management and key technical personnel and maintenance 

 15 Before authorizing an air carrier to conduct air transportation operations, the FAA also evaluates certain of the 

air carrier's key personnel with respect to the minimum qualifications for those positions as prescribed in the FARs. 

The FAA’s evaluation of these key personnel provides an added practical and in-person test of their skills and 

technical ability. The FAA has informed us that the applicant’s key technical personnel are qualified to hold their 

respective positions.
7

facilities. Sun Air expects to incur only the incremental costs associated with expanding its 

existing air taxi operations to commuter air carrier operations. Specifically, Sun Air projects that 

it will incur approximately $62,000 in pre-operating expenses16 and approximately $287,654 in 

first-year expenses. Based on these forecasts, we find Sun Air’s expense projections to be 

reasonable and estimate that Sun Air will need approximately $133,913 to meet the 

Department’s financial fitness criteria.17 

In support of its financial position, Sun Air submitted historical and current financial 

information. The historical profit and loss statements provided by the applicant show that for 

calendar years 2009 and 2010, it reported net losses of approximately $161,740 and $195, 858 on 

about $1.0 million and $652,775 in operating revenues, respectively. For the seven months 

ended July 31, 2011, Sun Air reported a net loss of $50,930 on $505,658 in operating revenues. 

The company’s balance sheet dated August 1, 2011, shows total current assets of $204,828 and 

total current liabilities of $46,714, giving the applicant positive working capital of $158,114. In 

addition, total shareholders’ equity is $222,314. 

Sun Air states that it has sufficient funds to cover its pre-operating costs plus one-fourth of its 

operating expenses that it expects to incur during the first year of scheduled operations. The 

company provided third-party verification that, as of November14, 2011, the applicant had 

approximately $52,277 on deposit in its name. The applicant also provided (1) a copy of an 

executed promissory note between it and Cooper Trading for $100,000, which has yet to be 

drawn down, (2) confirmation that Mr. Cooper is guaranteeing Cooper Trading’s credit facility 

in favor of Sun Air, and (3) third-party verification that Mr. Cooper has the financial resources 

on deposit to extend the line-of-credit to Cooper Trading.

In light of the above, we tentatively conclude that Sun Air has access to sufficient financial 

resources to commence its commuter operations without posing an undue risk to consumers or 

their funds.18 In addition, prior to making any authority awarded to Sun Air effective, we will 

require the company to demonstrate that it continues to have the financial resources needed to 

meet our financial fitness criteria. Should the air carrier no longer meet our fitness test, it will 

not be granted effective authority. 

 16 According to the applicant, its pre-operating expenses include (1) legal fees and other expenses associated with 

its application, (2) costs of upgrading its reservation system and training staff on that system, (3) insurance 

premiums covering commuter operations, (4) three-month advance payments of landing fees at Miami airport, and 

(5) deposits for purchasing fuel for its proposed commuter operations.

17 In establishing financial fitness, the Department typically asks an applicant to demonstrate that it has access to 

financial resources sufficient to cover its pre-operating expenses and the expenses that are reasonably projected to be 

incurred during three months of operations. In determining available resources, projected revenues are generally not 

included. The $133,913 noted above consists of the applicant’s pre-operating expense forecast of $62,000 plus 

$71,913, which is one-quarter of Sun Air’s estimated first-year expenses. 18 As is our practice, prior to making any authority awarded to Sun Air effective, we will require the company to 

demonstrate that it continues to have the financial resources needed to meet our financial fitness criteria. 
8

Compliance Disposition 

The applicant 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 brought against any of these parties. 

Sun Air also states that there are no pending investigations, enforcement actions, or formal 

complaints filed by the Department against it, its key personnel, or persons having a substantial 

interest in it with respect to compliance with the Transportation Code or the Department’s 

regulations. Our search of the Department’s records found no compliance problems with Sun 

Air. The FAA reports that Sun Air has a satisfactory compliance disposition and that its 

management team is qualified for their positions. Moreover, there are no FAA enforcement 

actions pending against the air carrier. 

Although Gulfstream alleges that Sun Air’s proposal is in violation of a contract between the 

parties and implores the Department to impose a remedy, as discussed above, we believe this is 

an issue for another forum. In addition, to the extent that any such legal outcome would have an 

effect on Sun Air financial fitness or its operating plan, Sun Air is required to notify the 

Department of such changes, and we would, in turn, determine at that time whether the company 

continues to be fit. The Department will carefully consider any action brought to our attention 

which may affect the applicant and its fitness.

In light of the above, we tentatively conclude that Sun Air has the proper regard for the laws and 

regulations governing its services to ensure that its aircraft and personnel conform to applicable 

safety standards and that acceptable consumer relation practices will be followed.

CITIZENSHIP

Section 41102 of the Transportation Code requires that authority to engage in air transportation

be held only by citizens of the United States as defined in 49 U.S.C. § 40102(a)(15). That 

section requires that the president and two-thirds of the Board of Directors and other managing 

officers be U.S. citizens, that at least 75 percent of the outstanding voting interest be owned by 

U.S. citizens, and that the air carrier is under the actual control of U.S. citizens. 

As discussed earlier, Sun Air is a Delaware limited liability company owned by Cooper Trading, 

which is in turn, solely owned by Mr. Thomas L. Cooper, a U.S. citizen. Further, all of Sun 

Air’s key personnel are U.S. citizens and the company has supplied an affidavit attesting that it is 

a citizen of the United States under the actual control of U.S. citizens. Our review of Sun Air’s 

citizenship has uncovered no reason to suggest that control of Sun Air rests with non-U.S. 

citizens.

Based on the above, we tentatively conclude that Sun Air is a citizen of the United States and is 

fit, willing, and able to provide air transportation services as a commuter air carrier.

OBJECTIONS

We will give interested persons 14 days following the service date of this order to show cause 

why the tentative findings and conclusions set forth here should not be made final; answers to 
9

objections will be due within 7 days thereafter. We expect that persons objecting to our tentative 

findings and conclusions will support their objections with relevant and material facts. If an oral 

evidentiary hearing or discovery procedures is requested, the objector should state in detail why 

such a hearing or discovery is considered necessary, and what material issues of decisional fact 

the objector would expect to establish through a hearing or discovery that cannot be established 

in written pleadings. The objector should consider whether discovery procedures alone would be 

sufficient to resolve material issues of decisional fact. If so, the type of procedure should be 

specified (See Part 302, Rules 19 and 20); if not, the reasons why not should be explained. We 

will not entertain general, vague, or unsupported objections. If no substantive objections are 

filed, we will issue an order that will make final our tentative findings and conclusions with 

respect to Sun Air’s fitness and commuter authority.

EFFECTIVE COMMUTER AUTHORIZATION 

CONDITIONS AND LIMITATIONS

In the event that we find Sun Air fit, willing, and able to conduct the proposed commuter service, 

we will issue to it a Commuter Air Carrier Authorization. However, that authorization will not 

become effective until the air carrier has fulfilled all requirements for effectiveness as set forth in 

the Terms, Conditions, and Limitations attached to its authorization.19 In addition, consistent with 

the applicant’s proposed operations, we propose to limit any authority issued to Sun Air to 

operations using aircraft that can be operated under FAR Part 135 (in effect, aircraft with no 

more than 9 seats in scheduled passenger operations). Should Sun Air propose to operate larger 

aircraft or conduct operations that would require certification from the FAA under Part 121, it 

must first be determined fit for such operations.20

Furthermore, we remind Sun Air of the requirements of 49 U.S.C. § 41110(e). Specifically, that 

section requires that, once an air carrier is found fit initially, it must remain fit in order to hold its 

authority. To be assured that commuter air carriers continue to be fit after effective authority has 

been issued to them, we require that they supply information describing any subsequent 

substantial changes they may undergo in areas affecting fitness. In this regard, should Sun Air 

propose any substantial changes in its ownership, management, or operations, it must first 

comply with the requirements of section 204.5 of our rules.21 The compliance of the company 

with these requirements is essential if we are to carry out our responsibilities under the 

Transportation Code.22

 19 We also reserve the right to stay the effectiveness of Sun Air’s authority if any new information becomes 

available to us that warrants such action.

20 We note that the operation of larger aircraft could require the air carrier to have access to additional funds 

and/or hire additional management personnel. 

21 The air carrier may contact our Air Carrier Fitness Division to report proposed substantial changes in its 

operations, ownership, or management, and to determine what additional information, if any, will be required under 

section 204.5. Moreover, by notice dated July 21, 1998, the Department requested air carriers to provide a 30-day 

advance notification of any proposed change in ownership, restructuring, or recapitalization. If the air carrier fails to 

file the information or if the information fails to demonstrate that the air carrier will continue to be fit upon 

implementation of the substantial change, the Department may take such action as is appropriate, including 

enforcement action or steps to modify, suspend, or revoke the air carrier's commuter authority.

22 We also remind Sun Air about the requirements of section 204.7 of our rules. This section provides, among 

other things, that (1) the commuter authority granted to a company shall be revoked if the company does not 
10

Finally, if Sun Air is granted effective authority, it would be required to submit a detailed 

progress report, within 45 days following the end of the first year of certificated flight 

operations, to the Air Carrier Fitness Division. The submission of a first year progress report is 

required of all newly authorized air carriers and was adopted as policy by the Department to aid 

in monitoring the fitness of new air carriers. The report should include a description of the air 

carrier’s current operations (number and type of aircraft, principle markets served, total number 

of full-time employees), a summary of how its operations have changed during the year, a 

discussion of any changes it anticipates from its current operations during its second year, 

current financial statements,23 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.

ACCORDINGLY:

1. We direct all interested persons to show cause why we should not issue an order finding that 

Sun Air Express, LLC d/b/a Sun Air International 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 grant the Motion of SeaPort Airlines, Inc., for Leave to File an Otherwise Unauthorized

Document, dated February 23, 2012.

3. We direct any interested persons having objections to the issuance of an order making final 

any of the proposed findings, conclusions, or the award of authority set forth here to file them 

with Department of Transportation Dockets, 1200 New Jersey Ave., SE, Room W12-140, 

Washington, D.C. 20590, in Docket DOT-OST-2011-0169, and serve them upon all persons 

listed in Attachment A no later than 14 days after the service date of this order; answers to 

objections shall be filed no later than 7 days thereafter.

4. If timely and properly supported objections are filed, we will accord full consideration to the 

matters or issues raised by the objections before we take further action.

5. In the event that no objections are filed, we will consider all further procedural steps to be 

waived, and we will enter an order making final our tentative findings and conclusions set out 

here and awarding Sun Air Express, LLC d/b/a Sun Air International a Commuter Air Carrier 

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

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

 

commence actual flying operations under that authority within one year of the date of the Department’s 

determination of its fitness; (2) if the company commences operations for which it was found fit and subsequently 

ceases such operations, it may not resume commuter operations unless its fitness has been redetermined; and (3) if 

the company does not resume operations within one year of its cessation, its authority shall be revoked for 

dormancy.

23 These financial statements should include a balance sheet as of the end of the company’s first full year of actual 

commuter flight operations and a 12-month income statement ending that same date.
11

7. We will publish a summary of this order in the Federal Register.

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

Specimen

Terms, Conditions, and Limitations

SUN AIR EXPRESS, LLC

d/b/a SUN AIR INTERNATIONAL

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.
2

(4) 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.

∗

(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 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.

(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 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.

(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, 

 ∗ 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

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 SUN AIR EXPRESS, LLC

MS LONNIE A PERA

ZUCKERT SCOUTT & 

RASENBERGER LLP

888 SEVENTEENTH ST NW

SUITE 700

WASHINGTON DC 20006

MR WILLIAM J WEBER

CERTIFICATION SECTION 

MANAGER

FAA AFS-900

45005 AVIATION DRIVE SUITE 

131

DULLES VA 20166

MR PETER LYNCH

ASST CHIEF COUNSEL FOR 

 ENFORCEMENT AGC-300

FEDERAL AVIATION 

ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

MR THOMAS L COOPER

CEO & PRESIDENT

SUN AIR EXPRESS LLC

3201GRIFFIN RD 

FOURTH FLOOW

FT LAUDERDALE FL 33312

OFFICE OF AIRLINE 

INFORMATION

DOT/RITA/BTS E-34

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590

MR DAVID M HERNANDEZ

ATTORNEY FOR SILVER 

AIRWAYS CORP f/k/a VPAA CO

VEDDER PRICE PC

1401 I STREET NW

SUITE 1100

WASHINGTON DC 20005

MR STEPHEN CARL

MR JAMES RAMNANAN

FAA

FT LAUDERDALE FSDO-19

FT LAUDERDALE FL 33315