U.S. Department 

of Transportation 

Office of the Secretary 

of Transportation 

GENERAL COUNSEL 

FEB 1 2 2010 

1200 New Jersey Avenue, SE 

Washington, DC 20590 

Certified Mail - Return Receipt Requested 

Mr. Kris E. Durmer 

General Counsel 

U.S. General Services Administration 

1800 F Street, NW 

Washington, D.C. 20405 

Dear Mr. Durmer: 

Re: CSI Aviation Services 

I am writing to bring to your attention a matter currently pending in the Department of 

Transportation (DOT) Docket (DOT-OST-2009-0311) that arises out of a General Service 

Administration (GSA) schedule, Special Item Number (SIN) 599.5, Air Charter ServicesBrokers, and to obtain information from GSA that would be helpful in our resolution of that 

matter. 

As background information, in order to engage directly or indirectly in air transportation, citizens 

of the United States must hold economic authority from DOT, either in the form of a certificate 

of public convenience and necessity (certificate) issued pursuant to 49 U.S.C. §§ 41101 and 

41102, or in the form of an exemption from the certificate requirement. Air charter brokers that 

do not have economic authority may not, as principals, enter into contracts with direct air carriers 

for air transportation and, in effect, re-sell that air transportation pursuant to separate contracts 

with charterers. Air charter brokers that engage in such activity and that lack a certificate or an 

exemption would be unauthorized indirect air carriers in violation of section 41101. Violations of 

section 41101 also constitute unfair and deceptive practices and unfair methods of competition in 

violation of 49 U.S.C. § 41712. 

In early 2009, the DOT Office of Aviation Enforcement and Proceedings (Enforcement Office) 

initiated an investigation of the activities of the air charter brokers listed under SIN 599.5 in 

order to determine whether those brokers were acting as indirect air carriers. In October 2009, 

the Enforcement Office concluded that they were in fact acting as indirect air carriers. Since 

none of the brokers at any time relevant to this matter held a certificate or exemption, the 

Enforcement Office sent letters to all seven of the brokers then listed under SIN 599.5, including 

CSI Aviation Services, informing them of its belief that they were engaging unlawfully in air 

transportation and warning them that enforcement action could be taken if such activity 

continued beyond 180 days after the dates of the letters. 

On November 30, 2009, CSI Aviation Services filed an application with the Department in the 

above-listed docket for an emergency exemption from section 41101 to the extent necessary for 
it to engage lawfully in indirect air transportation under SIN 599.5. 1 In response, several air 

charter brokers, direct air carriers, and other interested parties have submitted answers, some in 

support, others in opposition to the CSI application. (The application and all responsive 

pleadings can be consulted online at www.regulations.gov, by entering "2009-0311" under 

"Keyword" and pressing "Search.") 

Additionally, on December 17,2009, GSA's Office of Acquisitions Operations for the Office of 

Travel, Motor Vehicles and Card Services (OAO) submitted an answer that expressed its 

"support for the general principles upon which CSI premises its application ... " but that expressed 

no position on whether we should proceed to grant or deny the application. (I am attaching a 

copy of that comment.) 

Given the centrality of the GSA process to CSI's pending exemption application, we want to be 

certain that our decisional record contains a clear and definitive formal statement of GSA's 

position on that application. Furthermore, given that whatever decision we might reach could 

have implications beyond the CSI application before us, we would ask that you address the 

broader question of whether broker services are essential to GSA's mission of procuring airlift 

for the Federal government or whether GSA has other means to accomplish this mission. 

Finally, we would of course welcome any other comment that you believe is pertinent to our 

decision making in this case. We would appreciate your response within 10 days of receipt of 

this letter. 

If you have any questions or concerns, please feel free to contact me. 

Finally, as required by our rules, a copy of this letter and any reply will be placed in Docket 

DOT-OST-2009-0311, where they will be available for public inspection at 

www.regulations.gov. 

Sincerely, 

General Counsel 

Enclosure 

On December 14, 2009, CSI also filed a Petition for Review with the U.S. Court of Appeals for the District of 

Columbia Circuit alleging that the Enforcement Office's letter warning CSI of possible future enforcement action violated the 

Administrative Procedure Act and should be amended, modified, or set aside, so that CSI could continue to pursue its activities 

under the GSA Schedule. This matter is pending. 
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, DC 

) 

Application of ) 

) 

CSI Aviation Services, Inc. ) 

) 

For an emergency exemption pursuant to ) 

49 U.S.C. §40109 and 14 C.F.R. § 302.11 ) 

To continue to perfonn under General ) 

Services Administration contract ) 

GS-33F-0025V SIN 599-5, Air Charter ) 

Services - Brokers ) 

) 

------------------------) 

Docket OST - 2009 - 0311 

U.S. GENERAL SERVICES ADMINISTRATION 

REPLY IN SUPPORT OF 

CSI AVIATION SERVICES, INC. 

REQUEST FOR EMERGENCY EXEMPTION 

The U.S. General Services Administration, Federal Acquisition Service, Office of 

Acquisition Operations for the Office of Travel, Motor Vehicles and Card Services 

(GSA), without comment on the action of the Department of Transportation, Office of 

General Counsel, Aviation Enforcement and Proceedings, directing CSI Aviation 

Services, Inc. (CSI) to cease performance of GSA Multiple Award Schedule contract GS33F-0025V, hereby expresses it support for the general principles upon which CSI 

premises its application for an exemption from 49 U.S.C. § 41101 and 14 C.F.R. Part 212 

and 380. 
GSA - Reply In Support of 

Application of CSI Aviation ServIces, Inc. 

For an Emergency exemption 

December 17, 2009 

Page2of2 

GSA is providing this Reply because it appears to be the position of the Department of 

Transportation that such an exemption is required in order for CSI to continue its 

performance of GSA Multiple Award Schedule contract GS-33F-002SV Special Item 

Number (SIN) 599-5, Air Charter Services - Brokers, and any follow-on contracts, 

blanket purchase agreements, and task orders related thereto. 

Should the Department of Transportation, Office of General Counsel, Aviation 

Enforcement and Proceedings desire to discuss this matter further. it may contact the 

GSA Office of General Counsel (personal Property Division). 

~~~ R aA. Koses 

Ie) /1 7/.;;)cc., 

Date 

Director 

Office of Acquisition Operations 

Office of Travel. Motor Vehicles and Card Services