Source: https://airlineinfo.com/ostcarrier/deluxpubliccharter.html
Timestamp: 2019-08-20 06:08:09
Document Index: 668566605

Matched Legal Cases: ['art 380', 'art 135', 'art 135', 'art 380', 'art 135', '§ 41738', 'art 135', 'art 215', 'art 215', 'art 215']

Application for Commuter Air Carrier Authorization
Delux requests authority to conduct more than four round trips per week between city pairs under 14 CFR Part 380 as an On-Demand Direct Air Carrier operating aircraft with 30 seats or less under Part 135 operating rules. Delux will lease six fully refurbished EMB-135 30-seat aircraft that are ideally suited for these short-haul flights. Four of these aircraft will be used for the proposed public charter operations.
Delux’s initial markets will be cities between 200 and 500 miles of one another, and will serve them where possible via secondary and tertiary airports. Delux requests confidential treatment of its specific initial proposed markets and details of the revenue projections of its specific launch plan under separate cover.
Delux’s board and investors include JetBlue founder David Neeleman and acclaimed customer service and culture leader Zappos.com CEO Tony Hsieh. Our leaders have deep start-up and operating experience in both Part 135 and 121 operations. Our supply partner Embraer has provided reliable aircraft to the market for decades and is assisting our launch by selling to us our initial fully refurbished EMB-135 aircraft and a comprehensive support package.
Counsel: Cooley LLP, J. Parker Erkmann, 202-842-7800
Operations and Financial Information
Supplement to Application for Commuter Air Carrier Authorization
Second Motion to Withhold Information from Public Disclosure
Motion to Shorten Public Comment Period
On October 16, 2015, Delux Public Charter, LLC applied for a commuter fitness determination so that it may conduct more than four round trips per week between city pairs under 14 CFR Part 380 as an On-Demand Direct Air Carrier operating aircraft with 30 seats or fewer under Part 135 operating rules. No answers have been filed in opposition to Delux’s application. Following the grant of this authority, Delux intends to fill a desperate air transportation need for short-haul air travel in the United States in markets that have been abandoned by larger carriers. To facilitate the prompt introduction of Delux’s innovative services, Delux submits this motion requesting that the Department shorten the answer period following the issuance of any show cause order to five business days.
Delux fully appreciates the need for a thorough review of its application and the supporting materials. Once the Department has reached a preliminary conclusion concerning Delux’s fitness sufficient to issue a show cause order, Delux respectfully submits that the public interest supports the issuance of a final order as soon as possible thereafter. Delux already has invested significant time and raised capital in furtherance of the introduction of its new proposed service. The acquisition of aircraft scheduled for early next year and the concurrent hiring of employees will increase Delux’s expenses. Accordingly, the Department should finalize its order with as much expedition as is consistent with the Department’s thorough review of Delux’s fitness for commuter operations. The use of expedited procedures will serve the public interest by facilitating the introduction of Delux’s innovative, desperately-needed services as soon as possible.
Third Motion to Withhold Information from Public Disclosure
Delux Public Charter, LLC hereby supplements its application for a commuter air carrier authorization dated October 16, 2015. This Second Supplement and the attached information responds to the request of the Department of Transportation for an aircraft lease agreement in its request dated November 17, 2015.
A copy of the form of the aircraft lease agreement between Delux and the Bank of Utah as owner trustee has been submitted with this Second Supplement as Attachment 1. Because none of the aircraft that Delux will lease and utilize for public charter services have been delivered, Delux has not yet executed the lease with respect to any specific aircraft.
DOT Ruling on Confidential Treatment Request
Absent extenuating circumstances, it is not the Department's practice to withhold from public disclosure information regarding an applicant's current or historical financial condition, pre-operating cost forecasts, proposed operating plans and related statistics, first-year operating cost forecasts, and forecast balance sheets reflecting these forecasts. When requested, however, the Department will generally grant confidential treatment to information pertaining to a company's forecast revenues (and related statistics). It is also our practice to grant confidential treatment to specific agreements between an applicant and vendors, potential customers, etc. Under the circumstances, our decision as to the request for confidential treatment with respect to Delux's application is as follows:
With respect to portions of Attachment N, which includes De lux's fleet plan, that disclose confidential terms of Delux's parent company's agreement with its aircraft financing provider, we have decided to deny confidential treatment. Portions of Attachment N contain the applicant's fleet and do not include detailed terms and conditions of its aircraft financing plan. Furthermore, the information provided is necessary to determine the Delux's financial fitness.
With respect to portions of Attachment T, which contains Delux's service proposal that identify the markets it intends to serve, revenue projections, pricing and anticipated load factors, we have decided to deny confidential treatment. Attachment T includes information required by 14 CFR 204.3 (t)(2).
With respect to Attachment 2 to the Supplement, identifying the beneficiaries of each of Samberg family trusts who are minor children and indirectly hold ownership interest in Delux, we have decided to grant confidentiality to the names of all minor beneficiaries.
With respect to Attachment 4 to the Supplement containing the aircraft lease agreement, we have decided to grant confidential treatment. The Department has in the past, afforded confidential treatment to agreements and we see no reason not to do so here.
With respect to Attachment 5 to the Supplement, containing Delux's forecasted balance sheet and profit and loss statement, including revenue projections, information that could be used to determine Delux's revenue projections, anticipated load factors, and terms with the applicant's vendor, we have decided to deny confidential treatment. The Department finds that the information is required by 14 CFR 204.3 (t)(2).
With respect to the aircraft lease agreement between Delux and the Bank of Utah, we have decided to grant confidential treatment. The Department has in the past afforded confidential treatment to lease agreements and we see no reason not to do so here.
Delux Public Charter, LLC hereby submits this third supplement to its application for a commuter air carrier authorization dated October 16, 2015. This third supplement and accompanying attachments provide certain information that was previously publicly filed in redacted form subject to Motions for Confidential Treatment under Rule 12. After reviewing the ruling of the Department of Transportation in this docket issued on January 13, 2016 granting confidential treatment in part and denying confidential treatment in part, Delux is submitting all the information for which confidential treatment was denied in unredacted form in the public docket. The information submitted herewith includes:
Attachment N to the Application;
Attachment T to the Application; and
Attachment 5 to the Supplement to the Application submitted December 3, 2015.
Because all of the information requested in the January 13 Ruling now has been submitted in unredacted form in the public docket, Delux respectfully requests that the processing of its application resume as soon as possible.
On December 3, 2015, Delux filed a Motion to Shorten the Answer Period in this docket, serving all parties on the service list to this proceeding. Delux and counsel for Delux has contacted each of the parties concerning this motion, and none have raised any objection.
Counsel: Cooley LLP, J. Parker Erkmann, 202-776-2036
Delux states that 16.8 percent of the ownership interest in JetSuite, Inc., is held by Management Restricted Stock Pool. Please identify the beneficial owners and describe the structure of ownership, i.e., whether they are held directly, or through a partnership or a corporation, etc. In addition, please identify the citizenship of each owner and the number of shares held.
Delux submitted its forecasted financial statements based on the start of its commuter operations as of February 2016. Please advise if the forecast remains same for any 12 months during the first year of the air carrier's commuter operation. If not, please provide a revised service proposal and a forecast balance sheet and profit and loss statement (broken down by month or by quarter) for the first twelve full months of actual flight operations conducted under the proposed commuter authority. Please include ample notes explaining the basis for the amounts shown and include the number of aircraft that would be used in operations for each month or quarter.
Fourth Supplement to the Application for Commuter Air Carrier Authorization
This fourth supplement and the attached information responds to the request of the Department of Transportation for additional information dated February 3, 2016.
Delux’s forecast remains the same for any 12-month period in the first year of operation. Delux’s biggest expenses are timed to coincide with the start of operations. Delux’s start date has moved to mid-March, one month later than as filed in the application. The largest expenses, aircraft delivery and pilot hiring, have been deferred accordingly, and therefore there is no material change in the financial forecast. Delux is submitting a reformatted projected income statement as Supplemental Attachment 3, but the assumptions underlying it and the notes provided in Delux’s prior submissions remain the same.
Counsel: Cooley, J. Parker Erkmann, 202-842-7800
Delux Public Charter, LLC hereby submits its fifth supplement to the application for a commuter air carrier authorization dated October 16, 2015. Delux is submitting additional information, which is attached as the Fifth Supplement Attachment A to assist in the calculation of Delux’s estimated overhead expenses.
Delux's overhead expenses can be calculated using the headcount and salary information in Attachment A. Simply multiply each position by the corresponding monthly salary and sum the total to get the monthly expense for each department. The headcount is derived based off of an allocation percentage of aircraft, flight hours and number of flights between the proposed commuter and other operations.
Request for Entry of Final Order and Issuance of Effective Authority
On April 15, 2016, the Department of Transportation issued an Order to Show Cause Proposing Issuance of Commuter Air Carrier Authority tentatively finding that Delux Public Charter, LLC is a citizen of the United States and is fit, willing and able to conduct scheduled passenger operations as a commuter air carrier. The Order to Show Cause also granted Delux’s request to shorten the time to file objections to 5 business days. That time has passed without any objections having been filed in opposition to the Order to Show Cause. Delux respectfully requests that the Department confirm its tentative conclusion and issue a final order confirming that Delux is “fit, willing, and able under 49 USC § 41738 to provide scheduled passenger service as a commuter air carrier using small aircraft pursuant to Part 135 of the Federal Aviation Regulations.”
Further, upon issuance of the Final Order, Delux respectfully requests that the Department make its commuter authority effective as soon as possible so that Delux can begin offering its new, innovative air service product as contemplated by its application.
Request for Waiver and Issuance of Effective Authority
On April 15, 2016, the Department of Transportation issued an Order to Show Cause Proposing Issuance of Commuter Air Carrier Authority tentatively finding that Delux Public Charter, LLC is a citizen of the United States and is fit, willing and able to conduct scheduled passenger operations as a commuter air carrier. The Order to Show Cause also granted Delux’s request to shorten the time to file objections to 5 business days and requested that Delux submit additional information to reaffirm its fitness. On April 25, 2016, Delux filed a Request for Entry of a Final Order and Issuance of Effective Authority. This submission included (1) a copy of Delux’s Air Carrier Certificate and Operations Specifications from the Federal Aviation Administration; (2) evidence of liability insurance coverage for all Delux’s aircraft; (3) a statement affirming that Delux had not undergone any material changes to its fitness subsequent to the issuance date of the Order to Show Cause in this proceeding; and (4) updated financial information and evidence that Delux still had available to it funds sufficient to meet the Department’s financial fitness criteria.
In light of the satisfaction of the requirement to provide this documentation, Delux respectfully requests a waiver of the condition that “[t]he authority to conduct scheduled passenger operations will not become effective until six (business) days after the Department has received the” submitted materials. Grant of the requested waiver will enable Delux to introduce its proposed services promptly, and the introduction of new air service is clearly in the public interest. Moreover, grant of this waiver is consistent with past Department precedent.
In consideration of the foregoing, Delux Public Charter requests that the Department waive the six-day period contemplated in the conditions provided in the Order to Show Cause and issue the Final Order and Effective Authority simultaneously.
Served March 6, 2017
Notice of Registration of Trade Name
On January 30, 2017, Delux Public Charter, LLC, a US commuter air carrier, requested that the Department register the trade name “JetSuiteX Air” for use in certain of its air transportation operations.
Part 215 of the Department’s regulations provides that any carrier wishing to use an alternative trade name must first register that name with the Department. The rule further states that the Department may register such trade name after the carrier gives notification to similarly named carriers of the proposed use of the trade name. In this case, we have identified no similarly named air carriers.
Since Delux has complied with the requirements of Part 215, we acknowledge the registration of the trade name “JetSuiteX Air” by Delux for use in its operations.
Served August 1, 2019
On July 24, 2019, Delux Public Charter, LLC, a US commuter air carrier (Order 2016-5-2), requested that the Department register the trade name “JSX Air” for use in certain of its air transportation operations. Since Delux has complied with the requirements of Part 215, we acknowledge the registration of the trade name “JSX Air” by Delux for use in its operations.
Delux currently operates using the trade name “JetSuiteX Air.” The company intends to rebrand “JetSuiteX Air” as “JSX Air.”