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National Air Cargo / National Airlines

http://www.nationalaircargo.com/
http://www.nationalairlines.aero/


National Air Cargo Group, Inc. d/b/a National Airlines

OST-1995-236 - Warsaw Liability Limitations

October 8, 2007

Warsaw Agreement

Counsel: Pillsbury Winthrop, Jonathon Foglia, 202-663-8210, jonathon.foglia@pillsburylaw.com



 

Served October 16, 2007

Notice of Registration of Trade Name

On September 18, 2007, National Air Cargo Group, Inc., a US. certificated air carrier (See Order 2004-11-6, as reissued by Order 2006-12-20), requested that the Department register the trade name "National Airlines" for use in certain of its air transportation operations.

Part 215 of the Department's regulations provides that any air 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 air carrier gives notification to similarly named air carriers of the proposed use of the trade name. In this case, we have identified no similarly named air carriers.

Since National has complied with the requirements of Part 2 15, we acknowledge the registration of the trade name "National Airlines" by National for immediate use in its operations.

By: Todd Homan



 

OST-2010-0181 - Amended Certificate of Public Conveneince and Necessity - Interstate and Foreign Charter Air Transportation of Persons, Property and Mail

July 9, 2010

Application for an Amended Certificate of Public Convenience and Necessity - Bookmarked

National Airlines has been very successful in its current scope of operations and wishes to expand its business to include a Boeing 757-200ER for passenger charter operations. National Airlines intends to operate the aircraft for charter brokers, public charter operators, private corporations and sports team conducting various types of charters. Since the aircraft will allow for the transportation of passengers as well as cargo, National Airlines seeks to amend its DOT certificate to authorize transport of passengers, property and mail in interstate and foreign commerce.

National Airlines' profitable existing cargo operation will primarily underwrite the aircraft lease and essentially all of the start-up and operating costs of the service. To the extent any additional infusion of capital is required, this will be provided by National Airlines' ultimate parent company, National Air Cargo Holdings, Inc., and its largest subsidiary, National Air Cargo, Inc., as attested to in the funds verification and provision letters respectively provided at Exhibits NA-12 and NA-13. Thus, National Airlines will have virtually no financial exposure in its amended certificated operations.

National Airlines' addition of the Boeing 757 -200ER to its fleet and the amendment of its certificate to include both passenger and cargo transport is the first step in the company's plan to substantially expand its aircraft fleet and operations over the next two years. In addition to the Boeing 757-200ER passenger aircraft, the company is currently in the process of acquiring four Boeing 757-200s that will be modified into "combi" aircraft for the transport of U.S. military personnel and cargo under future Civil Air Reserve Fleet military contracts

Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513


July 12, 2010

Motion for Confidential Treatment

The material for which confidential treatment is requested are the redacted portions of pages 3 through 31 of Exhibit NA-7 to the Application, which contain "Combined Financial Statements and Other Financial Information" prepared by PriceWaterhouseCoopers for National Air Cargo Holdings, Inc. and its subsidiaries, including National Airlines' parent company, NAC Acquisitions, for the years ended December 31, 2008 and 2007. The enclosed unredacted PWC 2007/2008 Combined Statement gives consolidated financial information, including the auditors' report and notes, for NAC Holdings and each of its subsidiaries, as well individual balance sheet and statement of operations information for each company individually. The redacted version submitted with the Application eliminates specific information for the companies except for National Air Cargo Acquisitions, Inc., the parent of National Airlines.

Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513



OST-2010-0181 - Amended Certificate of Public Conveneince and Necessity - Foreign Charter Air Transportation of Persons, Property and Mail

August 13, 2010

Application for Foreign Charter Passenger Authority

By application dated July 9, 2010, National requested an amendment to its certificate of public convenience and necessity to permit it to operate passenger/combination charter service in interstate air transportation. By this application, the carrier requests equivalent authority in foreign air transportation.

National requires the foreign passenger charter authority to enable it to respond to demand for transportation of passengers between the United States and various foreign destinations. For example, the carrier has been requested by an industrial client to transport passengers, as well as cargo, from the United States to facilities in Europe. National anticipates an increasing amount of such ad hoc and program charter work, including flights on behalf of the Department of Defense.

Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513



OST-2010-0181 - Amended Certificate of Public Conveneince and Necessity - Interstate and Foreign Charter Air Transportation of Persons, Property and Mail

August 18, 2010

Motion to Shorten Public Comment Period

National Airlines requests that the public comment period be shortened from fourteen days days to five days on the basis that it must commence passenger operations utilizing its Boeing 757-200ER aircraft no later than October 1, 2010, in order to ensure by October 2011 that it has the one year of passenger experience necessary to operate Boeing 757 "combi" aircraft under the Civil Reserve Air Fleet passenger/combination program. Unless the answer period for the above application is reduced, National Airlines likely will be unable to meet the one-year experience requirement for programs beginning next Fall.

Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513



OST-2010-0181 - Amended Certificate of Public Conveneince and Necessity - Interstate and Foreign Charter Air Transportation of Persons, Property and Mail

August 19, 2010

Answer of Air Transport International in Opposition to the Motion to Shorten Public Comment Period

National's aspiration to participate in the CRAF program notwithstanding, the shortening of the answer period of a Show Cause Order by nine days that has not yet been issued is decidedly not in the public interest. The public has a right to file responses to the Show Cause Order. Until that order is issued and the public can review the document and study its findings and conclusions, the DOT should not limit the normal amount of time to respond to the Show Cause Order given by the Department in certification show cause proceedings.

Even if the DOT were to grant the National motion, there is no evidence that National will be able to commence passenger operations on or before its stated deadline of October 1, 2010. There are other government approvals required prior to commencement of first time mainline passenger operations by National including Federal Aviation Administration and Transportation Security Administration permissions and authorities. National has not stated in its motion whether or not these permissions will be forthcoming in time to meet its self-imposed deadline. Depriving the public the right to fully participate in this Docket on the basis of mere speculation is neither appropriate nor warranted.

If CRAF determines that it is in its interest to shorten the one year experience requirement should National apply to participate in the 2011 "buy" it will exercise its judgment accordingly. The DOT should not preempt the process by which CRAF determines carrier eligibility.

Counsel: ATI, George Golder, 407-517-0290



OST-2010-0215 - Foreign Charter Passenger Authority (Assigned New Docket Number)

August 13, 2010

Application for Foreign Charter Passenger Authority

By application dated July 9, 2010, National requested an amendment to its certificate of public convenience and necessity to permit it to operate passenger/combination charter service in interstate air transportation. By this application, the carrier requests equivalent authority in foreign air transportation.

National requires the foreign passenger charter authority to enable it to respond to demand for transportation of passengers between the United States and various foreign destinations. For example, the carrier has been requested by an industrial client to transport passengers, as well as cargo, from the United States to facilities in Europe. National anticipates an increasing amount of such ad hoc and program charter work, including flights on behalf of the Department of Defense.

Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513


OST-2010-0181 - Amended Certificate of Public Conveneince and Necessity - Interstate and Foreign Charter Air Transportation of Persons, Property and Mail

August 23, 2010

Answer of Evergreen International Airlines

National's motion requests shortening of the answer period applicable to any show cause order the Department of Transportation may issue in Docket OST-2010-0181 to no more than five days. Evergreen opposes any shortening of the answer period. National has not shown why a shortening is justified, has cited no precedent in support of its request, and has not explained why it did not anticipate the need for prompt approval when it filed its July 9, 2010, application or its August 13, 2010, amendment. The Department should not deny interested persons the opportunity to fully review and comment on any show cause order the Department might issue simply to accommodate National's lack of foresight.

Counsel: Squire Sanders, Edward Sauer, 202-626-6641



OST-2010-0181 - Amended Certificate of Public Conveneince and Necessity - Interstate and Foreign Charter Air Transportation of Persons, Property and Mail

August 26, 2010

Answer of North American Airlines

North American Airlines, Inc. hereby files this Answer to (i) the application of National Air Cargo Group, Inc. for a certificate of public convenience and necessity to engage in foreign charter air transportation and (ii) NAC's motion to shorten the answer period to any Show Cause Order issued in this docket. Certain representations made by NAC suggest that its application for foreign charter authority is based more on fantasy than on fact. The Department should not grant NAC the operating authority it requests without clearing up fundamental questions raised by its application.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660



OST-2010-0181 - Amended Certificate of Public Convenience and Necessity - Interstate and Foreign Charter Air Transportation of Persons, Property and Mail
OST-2010-0215 - Foreign Charter Passenger Authority (Assigned New Docket Number)


August 30, 2010

DOT Request for Additional Information

  1. Personnel
  2. Accident Plan
  3. Passenger Manifest Information Plan
  4. Application Fees
  5. Certification

By: Damon Walker


August 30, 2010

DOT Denying Motion for Confidential Treatment

National Airlines' motion, filed August 18, 2010, requests that the following material be considered for confidential treatment:

Exhibit NA-7 - Combined Financial Statements and other financial information for National Air Cargo Holdings, Inc., the ultimate parent company of National Airlines.

Absent a clear and justifiable reason for doing so, it is not the Department's practice to withhold from public disclosure information regarding the applicant's current or historical financial information, or the financial condition of its parent company except when the applicant has shown that substantial harm to its competitive position would result from public disclosure of the given information and such information is not the type that is normally released to the public. No such showing has been made.

By: Lauralyn Remo



OST-2010-0181 - Amended Certificate of Public Conveneince and Necessity - Interstate and Foreign Charter Air Transportation of Persons, Property and Mail

September 1, 2010

Reply of National Airlines to Answer of North American Airlines - Bookmarked

North American has failed to provide a valid basis for denying either the application or the motion. National Airlines accordingly requests that the Department issue a Show Cause Order as expeditiously as possible approving its applications for amended interstate and foreign charter authority, and that the Department shorten the public comment period for the order from fourteen to five business days as requested by National Airlines in its motion.

North American claims that National Airlines has "grossly underestimated" the projected costs of its proposed services, citing as example National's "preposterous" Boeing 757 lease rate. In fact, as things have worked out, National overestimated the full lease cost of its aircraft.

Contrary to North American's assumption that National Airlines must be including in its calculation hours from military contracts that it has not yet secured, National Airlines' hours estimate does not include any such flying. As specifically stated in its application, the proposed passenger operations and consequently the estimated charter hours include flights five days each week on behalf of heavy industrial corporations from the United States to Germany, and then on to points in Europe and back to the United States. National Airlines further factored in leisure market charters from the United States to South America, also on a five-day-per-week basis, for the purpose of transporting ocean cruise line passengers to and from various points along the cruise route. National has decades of experience conducting passenger air taxi and shuttle operations for large corporations using small aircraft, and also operating its reliable and successful large aircraft cargo charters. Given its solid reputation and years of experience, it is hardly "pie in the sky" for National Airlines to achieve its projection of 100 monthly charter hours.

North American finally argues that National Airlines' "questionable" financial assumptions will be further negatively impacted by the carrier's acquisition of additional Boeing 757-200 aircraft to conduct "combi" flights under future CRAF military contracts. National Airlines' acquisition of these additional aircraft, however, is not at issue in this application. Expansion of the fleet to include those aircraft will be subject to further showings of the carrier's financial ability to acquire and operate the aircraft. Consequently, it is irrelevant to this proceeding how National Airlines plans to address the financing of those aircraft.

Counsel: Cozen O'Connor, Mark Atwood, 202-463-2513


OST-1996-1960 - Family Assistance Plans

September 2, 2010

Family Assistance Plan

Counsel: Cozen O'Connor, Mark Atwood, 202-463-2513


OST-1998-3305 - Passenger Manifest Information Plans

September 2, 2010

Passenger Manifest Plan

Counsel: Cozen O'Connor, Mark Atwood, 202-463-2513



OST-2010-0181 - Amended Certificate of Public Convenience and Necessity - Interstate and Foreign Charter Air Transportation of Persons, Property and Mail

September 2, 2010

Verification of Family Assistance Plan and Passenger Manifest Plan

Counsel: Cozen O'Connor, Mark Atwood, 202-463-2513


OST-2010-0215 - Foreign Charter Passenger Authority (Assigned New Docket Number)
OST-2010-0181 - Amended Certificate of Public Convenience and Necessity - Interstate and Foreign Charter Air Transportation

September 7, 2010

Additional Information Response

  1. Management Information
  2. Antitrust Violations Clarification
  3. Accident Plan
  4. Receipts for Filing Fee Payment

Counsel: Cozen O'Connor, Mark Atwood, 202-463-2513



OST-2010-0181 - Amended Certificate of Public Convenience and Necessity - Interstate and Foreign Charter Air Transportation of Persons, Property and Mail
OST-2010-0215 - Foreign Charter Passenger Authority (Assigned New Docket Number)

September 17, 2010

Additional Information Response

As required by the Department's ruling in its letter dated August 30, 2010, denying National Airline's motion for confidential treatment for certain financial information under 14 CFR Section 302.12 the following documents are enclosed for inclusion in National Airlines' previously filed Applications for Amended Interstate and Foreign Certificate Authority:

  • Cover page for Exhibit NA-7 A; and
  • Financial information for National Air Cargo Holdings, Inc. and its related affiliates for 2007, 2008, 2009 and the first seven months of 2010.

Counsel: Cozen O'Connor, Elizabeth Wadsworth, 202-463-2537



OST-2010-0181 - Amended Certificate of Public Convenience and Necessity - Interstate and Foreign Charter Air Transportation of Persons, Property and Mail
OST-2010-0215 - Foreign Charter Passenger Authority (Assigned New Docket Number)

October 1, 2010

Answer of Air Transport International and Motion for Leave to File

ATI wishes to comment upon a lingering financial issue that was raised by North American Airlines in its Answer to the National Application but not satisfactorily answered by National in its Reply to North American. The issue involves the discrepancy between National's May 2010 balance sheet reflecting $796,000 in cash and cash equivalents on hand and the National supplied letter from JP Morgan Chase that states that as of July 8, 2010 that National Air Cargo had $7.2 on account at the bank. National responded in its Reply to North American that the bank letter "was not a statement of its balance but was instead a third party verification of available funds issued by Chase Bank on behalf of National Air Cargo." National's answer implies that bank letter was making reference to some sort of facility, such as a letter of credit, although the text of the bank letter is more than clear in describing the fact that National has $7.2 million with the bank in an account in the name of the applicant. While National's reply would at least potentially explain the discrepancy in its cash account, assuming National's reply is found to be accurate, it is far from clear why National is going so far out of its way to reinterpret the bank's letter, that is, in fact, clear on its face. The bank's letter and the May 2010 cash position shown in the financials simply do not jibe. Because the bank's letter is unambiguous, the DOT should be cautious in accepting National's reply to North American and take whatever additional steps are necessary to seek to resolve an important issue about National's ability to meet the Department's financial fitness test based on both the previous and newly filed financial information.

National and Holdings have presented a confusing picture of their financial positions. It is obvious that the DOT must make additional inquiries in an attempt to sort out the facts about National's financial posture and the ability of Holdings to make good on its pledge to the Department to fully support all of National's operations. ATI urges that the DOT do so as part of the nonnal due diligence the DOT engages in when considering an applicant for new authority.

Counsel: ATI, George Golder, 407-517-0290



OST-2010-0181 - Amended Certificate of Public Convenience and Necessity - Interstate and Foreign Charter Air Transportation of Persons, Property and Mail
OST-2010-0215 - Foreign Charter Passenger Authority (Assigned New Docket Number)

October 8, 2010

Comments of Air Transport International

I am writing to you on a matter of great significance. It has come to the attention of Air Transport International Limited Liability Company that even as National Air Cargo Group, Inc. d/b/a National Airlines is pursuing an application for first time passenger authority in the Dockets noted above, the applicant, ignoring DOT rules and conventions has taken the extraordinary step of advertising its passenger services on the internet (and perhaps elsewhere), even going so far as to prompt prospective customers to obtain a quote for passenger service. This prohibited conduct goes directly to the heart of the question of whether the applicant has the proper compliance disposition to support a favorable determination on National's pending applications.

ATI is now compelled to raise another issue that warrants the Department's close attention. National, without even waiting for the issuance of the show cause order, much less a final DOT order granting National's request for passenger charter authority (assuming it is granted), is soliciting customers for its passenger charter services. Screen shots of National's website are attached as Exhibit A and clearly show that National is actively promoting the sale of passenger charter flights. This National conduct is clearly contrary to Section 201.5 of the DOT's regulations.

Most likely National will respond to this charge and state that no harm resulted from its holding out because it did not respond to any quote request. But that is not the point, assuming National did not in fact provide a quote for passenger service or take a reservation. Section 201.5 precludes all advertising efforts for services for which carriers lack authority, and not just the acceptance of a reservation for service. National's premature marketing efforts must be taken into account by the DOT in passing on National's pending applications

Counsel: ATI, George Golder



OST-2010-0181 - Amended Certificate of Public Convenience and Necessity - Interstate and Foreign Charter Air Transportation of Persons, Property and Mail
OST-2010-0215 - Foreign Charter Passenger Authority (Assigned New Docket Number)

October 14, 2010

Reply of National Airlines to Answer of Air Transport International

National Airlines has more than adequately demonstrated its fitness for the modest level of fleet expansion and service proposed in its application. While competitors have sought to bog down the licensing process in delays, National is missing valuable opportunities for passenger charter services that are in the public interest. National urges the Department to move forthwith to issue the Show Cause Order and enable the carrier to obtain its passenger charter authority without further unnecessary delay.

Counsel: Cozen O'Connor, Mark Atwood



Order 2010-11-5
OST-2010-0181 - Amended Certificate of Public Convenience and Necessity - Interstate and Foreign Charter Air Transportation of Persons, Property and Mail
OST-2010-0215 - Foreign Charter Passenger Authority (Assigned New Docket Number)

Issued and Served November 5, 2010

Order to Show Cause Proposing Issuance and Certificates - Bookmarked

By this order, we tentatively conclude that National Air Cargo Group, Inc. d/b/a National Airlines is a citizen of the United States and is fit, willing, and able to provide interstate and foreign charter air transportation of persons, property and mail, and should be issued certificates of public convenience and necessity authorizing such operations. If granted the certificates it seeks, National Airlines intends to add one Boeing 757-200ER passenger aircraft to its fleet for use in interstate and foreign passenger charter operations.

The opposing parties have provided no convincing evidence to support their contention that the applicant does not have access to sufficient financial resources or that its financial projections are unreasonable or erroneous. The record shows that NAC Holdings and its subsidiaries have extended an offer to provide National Airlines with the capital necessary to meet the capital requirements for its proposed passenger charter operations. In addition, the applicant provided evidence demonstrating the availability of the funds necessary to honor this commitment, as well as third-party verification of these funds. In light of the foregoing, we tentatively conclude that National Airlines will have access to sufficient financial resources to commence the operations it proposes without posing an undue risk to consumers or their funds.

By: Susan Kurland



Order 2010-11-25
OST-2010-0181 - Amended Certificate of Public Convenience and Necessity - Interstate and Foreign Charter Air Transportation of Persons, Property and Mail
OST-2010-0215 - Foreign Charter Passenger Authority (Assigned New Docket Number)

Issued and Served November 22, 2010

Final Order

By Order 2010-11-5, issued November 5, 2010, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated in it and award certificates of public convenience and necessity to National Air Cargo Group, Inc. d/b/a National Airlines authorizing it to engage in interstate and foreign charter air transportation of persons, property and mail.

Interested persons were given 10 days to file objections to the order.

No objections to the show-cause order were received.

By: Susan Kurland



OST-2010-0181 - Amended Certificate of Public Convenience and Necessity - Interstate and Foreign Charter Air Transportation of Persons, Property and Mail
OST-2010-0215 - Foreign Charter Passenger Authority (Assigned New Docket Number)

November 23, 2010

Motion for Leave to File Late-Filed Objections of Air Transport International

On November 22, 2010 Air Transport International, Limited Liability Company filed Objections to Show Cause Order 2010-11-5. Due to a calculation error, ATI incorrectly determined that the deadline for the filing of ATI's Objections was Monday, November 22, 2010. However, the deadline for filing responses to the Show Cause Order was Friday, November 19th. ATI regrets the error and hereby seeks leave of the Department to accept the late-filed Objections of ATI.

ATI hereby files these objections to DOT Order 2010-11-5 that tentatively concluded National Air Cargo Group, Inc. d/b/a National Airlines is fit, willing and able to provide interstate and foreign charter air transportation of persons, property and mail. The DOT's Order to Show Cause summarily dismisses the valid and compelling issues raised by ATI and others commenting on the National applications for interstate and foreign passenger charter authority-issues that cannot and should not be dismissed without a proper critical analysis by the Department. On consideration of these objections, ATI urges the Department to substantively address the financial fitness of National, and its parent company National Air Cargo, Inc. to undertake passenger operations and the compliance disposition of National. Doing so should cause the Department to more seriously question, (i) the financial viability of the applicant and NAC, its parent and financial guarantor, and (ii) the willingness of National to comply with the regulations of the DOT and those of other relevant agencies and departments. Lastly, ATI will address the need for an additional condition on National's passenger authority (assuming it is granted) to preclude it from serially requesting permission to operate additional large aircraft.

Counsel: ATI, George Golder, 407-517-0290



Order 2010-12-22
OST-2010-0005 - Violations of 49 USC §§ 41101 and 41712 and 14 CFR 201.5(a)

Issued and Served December 20, 2010

Consent Order

This consent order concerns unauthorized air transportation by National Air Cargo Group, Inc. d/b/a National Airlines in violation 49 USC §§ 41101 and 41712 and 14 CFR 201.5(a). It directs National to cease and desist from future violations of these provisions and assesses the carrier a compromise civil penalty of $20,000.

On July 9, 2010, and August 13, 2010, National applied for authority to engage in interstate and foreign charter transportation of persons, property, and mail. During the pendency of its application, National advertised its ability to transport passengers by air. By advertising passenger air transportation before it received effective economic authority for that service, National violated section 201.5 and engaged in an unfair and deceptive practice and unfair method of competition.

By: Rosalind Knapp



Order 2011-1-26
OST-2010-0215 - Foreign Charter Passenger Authority

Issued November 22, 2010 | Served February 2, 2011

Order Issuing Foreign Certificate

By Order 2010-11-25, issued November 22, 2010, we found National Air Cargo Group, Inc. d/b/a National Airlines fit, willing and able to engage in interstate and foreign passenger charter air transportation. By that order, we reissued the interstate cargo charter certificate of public convenience and necessity issued to National Airlines by Order 2006-12-20 to authorize it to engage in interstate charter air transportation of persons, property and mail.

By this order, we are reissuing the foreign cargo charter certificate of public convenience and necessity issued to National Air Cargo Group, Inc. d/b/a National Airlines by Order 2006-12-20 to authorize it to engage in foreign charter air transportation of persons, property and mail. Instead of repeating our findings and conclusions in Order 2010-11-25, we incorporate them here by reference

By: Susan Kurland



Order 2011-7-15
OST-2010-0215
- Foreign Charter Passenger Authority
OST-2010-0181 - Amended Certificate of Public Convenience and Necessity - Interstate and Foreign Charter Air Transportation of Persons, Property and Mail

Issued and Served July 29, 2011

Order Confirming Oral Action and Issuing Effective Certificates

By this order we (1) confirm our oral action of June 6, 2011, making the interstate and foreign charter passenger authority issued to National Air Cargo Group, Inc. d/b/a National Airlines effective on that date, and (2) reissue the air carrier’s interstate and foreign certificates to reflect the effectiveness of its charter passenger authority.

We do not believe the alleged violations warrant unfavorable action on National Airlines’ application to engage in charter passenger operations or that such allegation, when considered in conjunction with National Airlines’ compliance history, is indicative of a poor disposition to comply with the laws and regulations governing its services. As discussed in Order 2010-11-5, the Department previously imposed a number of reporting requirements on National Airlines that would permit us to closely monitor the air carrier’s compliance disposition. We believe these reporting requirements are adequate and that they will permit us the ability to take timely action against the air carrier’s certificate should we find any future action would warrant such treatment.

In light of the above, we determined that National Airlines continued to be fit to provide interstate and foreign charter air transportation of persons, property, and mail. Therefore, on June 6, 2011, we orally advised the air carrier that we were making its certificate authority for passenger operations effective on that date. By this order, we confirm our oral action of June 6, 2011, and reissue the air carrier’s certificates to reflect their effective date.

By: Todd Homan


OST-2012-0204 - Foreign Scheduled Passenger and Cargo

March 8, 2013

Amendment of Application

On December 11, 2012, National Air Cargo Group, Inc. d/b/a National Airlines, a certificated air carrier, filed an application pursuant to Subpart B of the Department's Procedural Regulations and Sections 204.3, for an exemption and amended Certificate of Public Convenience and Necessity pursuant to 49 USC Sections 40109 and 41102, authorizing it to conduct scheduled foreign air transportation of persons, property and mail between a point or points in the United States, a point or points in the United Arab Emirates, and beyond to a point or points in Afghanistan and a point or points in Iraq. In that application, National Airlines specifically requested scheduled authority to perform a Dubai-Bagram-Kandahar route, as well as authority to operate to Kabul.

National Airlines now wishes to add another point in Afghanistan to this proposed scheduled authority: Camp Bastion, the British military's primary base in that country. The addition of this point will not adversely affect the company's fitness to conduct the proposed scheduled operations.

Counsel: Cozen O'Connor, Mark Atwood, 202-463-2513


OST-2012-0205 - Interstate Scheduled Passenger and Cargo

March 8, 2013

Amendment of Application

On March 8, 2013, the company filed a request in Docket OST-2012-0204 to amend Exhibits NA-2 and NA-6 of its foreign scheduled application to include updated financial information. National Airlines consequently wishes to amend its application for interstate scheduled authority as well to include this information, and hereby incorporate that material herein by reference.

Counsel: Cozen O'Connor, Mark Atwood, 202-463-2513


 

OST-2012-0204 - Foreign Scheduled Passenger and Cargo
OST-2012-0205
- Interstate Scheduled Passenger and Cargo

March 22, 2013

Motion to Shorten Public Comment Period

National Airlines filed its application for this authority on December 11, 2012, and has targeted May 1, 2013, as the start date for its scheduled operations. The Carrier selected this date in order to meet the demand for the transport of Department of Defense personnel and contractors to Afghanistan. Although National Airlines is currently conducting charter flights to this country on behalf of one large defense contractor, many DOD and contractor personnel are being transported to Afghanistan by foreign air carriers.

Since National Airlines' proposed May 1, 2013, start-up date is rapidly approaching, the Carrier requests that the Department reduce its standard fourteen-day objection and seven-day answer period for any show cause orders it issues tentatively granting National's request for amended certificate authority, to respectively three days (objection) and two days (answer). This will decrease the objection/answer period by sixteen days, which is critical since any tentative grant of the foreign scheduled service will also be subject to Presidential review under 49 USC Section 41307 for up to 60 additional days.

Counsel: Cozen O'Connor, Mark Atwood, 202-463-2513


 

Order 2013-4-12
OST-2012-0204
- Foreign Scheduled Passenger and Cargo
OST-2012-0205 - Interstate Scheduled Passenger and Cargo

Issued and Served April 15, 2013

Order to Show Cause Proposing to Amend and Reissue Certificate Authority

By this order, we tentatively (1) conclude that National Air Cargo Group, Inc. d/b/a National Airlines is a citizen of the United States and is fit, willing, and able to provide foreign scheduled air transportation of persons, property, and mail, and should be issued an amended certificate of public convenience and necessity authorizing such operations, subject to conditions; (2) dismiss the application of National Airlines requesting interstate scheduled passenger authority; and (3) deny the air carrier’s request for an exemption from the provisions of 49 USC 41102 to permit it to engage in foreign scheduled air transportation while its application for foreign scheduled passenger authority remains pending.

By: Susan Kurland


 

Order 2013-7-12
OST-2012-0204
- Foreign Scheduled Passenger and Cargo
OST-2012-0205
- Interstate Scheduled Passenger and Cargo

Issued and Served July 12, 2013

Order Issuing Foreign Certificate

By Order 2013-4-12, issued April 15, 2013, we directed all interested persons to show cause why we should not make final the tentative findings and conclusions stated therein and issue an amended certificate of public convenience and necessity to National Air Cargo Group, Inc. d/b/a National Airlines authorizing it to engage in foreign scheduled air transportation of persons, property, and mail, between a point or points in the United States, a point or points in the United Arab Emirates and beyond to a point or points in Afghanistan.

Interested persons were given 3 days to file objections to the order.

No objections to the show cause order were received.

By: Susan Kurland


 

OST-2012-0204 - Foreign Scheduled Passenger and Cargo
OST-2012-0205
- Interstate Scheduled Passenger and Cargo

August 26, 2013

Objections of United Air Lines and Motion for Leave to File - Bookmarked

United objects to the Department's Order 2013-4-12 tentatively concluding that National Airlines is fit, willing, and able to provide foreign scheduled air transportation of persons, property and mail, and should be issued an amended certificate of public convenience and necessity authorizing such operations. National Airlines' planned service is materially different and far more ambitious than what was presented to the Department, as it is now clear that National Airlines' application is effectively an Emirates application to carry Fly America traffic between the US and the United Arab Emirates. United does not object to National Airlines' growth ambitions, but National Airlines' service proposal is clearly beyond its fitness and its business readiness. The Department must review National Airlines' fitness on the basis of its actual service proposal and readiness and provide the public with the opportunity to comment on them.

In a clear departure from the single US-Afghanistan route and vague references to US-Dubai codeshare opportunities described in its application, National Airlines intends to engage in extensive codeshare service, with Emirates as the operating carrier, between no less than 31 city pairs comprised of seven long haul international routes. Not only has National Airlines failed to demonstrate that it has the technical, operational and managerial capabilities to satisfy a marketing carrier's many obligations for this kind and scope of service, but its plans for codesharing with Emirates plainly violate the Fly America Act. Because this information did not come to light until the General Services Administration's recent announcement of its FY 2014 City Pair Program Contract Awards on August 16, 2013, United urges the Department to: (1) grant United leave to file these objections; (2) set aside its tentative decision; (3) require National Airlines to submit information demonstrating its fitness for its actual service proposal; and (4) provide interested parties with a meaningful opportunity for public comment, so that the Department will have the benefit of a complete record prior to issuing a final decision in this proceeding.

Counsel: Crowell & Moring, Lorraine Halloway, 202-624-2500

City-Pair Program Saves Billions for Federal Agencies - GSA Press Release, August 16, 2013

GSA Airline City-Pair Program

2014 Contract Awards (CSV File, 2.68 MB)

2014 GSA Codeshare List

Order 1995-8-4 - Loken Aviation - Reissuing Certificate


OST-2012-0204 - Amended Certificate of Public Convenience - Foreign Scheduled Passenger and Cargo

September 4, 2013

Answer of National Airlines to Objections and Motion of United Airlines - Bookmarked

Not only is United's manufactured indignation spectacularly ill-timed and unwarranted, but it has chosen the wrong forum in which to make these assertions. Its arguments are relevant not to National's route authority, which was the subject of the Order, but only, at most, to the request (which has not yet been made) for authorization of the codeshare with Emirates, and to GSA's award of the contract (which United has now formally protested).

United is wrong in assuming that National's service proposal was based even in part on the Dulles-Dubai codeshare. In fact, all of the cost elements laid out in the service proposal were related almost entirely to the carrier's operation between Dubai and Afghanistan. National made this explicit in its analysis of start-up costs (Exhibit NA- 4), where it estimated $50,000 for legal work related to obtaining authorization of the operation, which included a small amount for working out the codeshare agreement. This work has already been done, and adding six points to the agreement would not
cause any further legal expense. National also stated (at footnote 1) that it did not anticipate any further startup expense for the codeshare beyond the legal fees. The extension of the codeshare to six other points does not change that calculation.

Counsel: Cozen O'Connor, Mark Atwood, 202-463-2513


 

OST-2012-0204 - Foreign Scheduled Passenger and Cargo
OST-2012-0205
- Interstate Scheduled Passenger and Cargo

 

September 5, 2013

Answer of Airlines for America to Objections of United Air Lines

As the Department likely is aware, A4A normally does not participate in carrier proceedings because they are commercial in nature. However, United’s objections raise serious and legitimate questions about the integrity of the application process in this case that the Department can and should address. As a general process principle, the Department should ensure that all applicants fully and fairly describe the service proposals for which they seek approval from the Department. The public, and in particular airlines such as A4A’s members who have an interest in participating in proceedings such as this one, rely on the Department to ensure that information submitted for review is complete and puts them (and the Department) on notice of planned service proposals so that interested parties can respond when in their interests. That did not occur in this case.

Counsel: A4A, David Berg, 202-626-4234


September 5, 2013

Answer by the Air Line Pilots Association to Objections of United Air Lines

The GSA award sheds light on the NAC-Emirates arrangement in a way that brings the importance of the Comptroller General's assumptions into sharp relief. The record before the Department strongly suggests that, with its small operation and extremely limited charter passenger services, NAC lacks the ability to be anything more than a "mere booking agent" for Emirates' passenger service on Emirates' aircraft to Dubai from seven US cities. It is also doubtful, given the relative investments that will be made in the provided services, that NAC would receive a "substantial portion" of the revenue generated, and NAC's answer does little to allay these concerns. In short, the NAC-Emirates relationship appears to be essentially a "rent-a-code" arrangement that is inconsistent with the purposes of the Fly America Act. In ALPA's view, such an arrangement does little to "improve the economic and competitive position of US carriers," their pilots, or other employees.

Counsel: ALPA, Russell Bailey, 202-797-4086

 

September 5, 2013

Answer of Delta Air Lines in Support of Objections of United Air Lines

Delta Air Lines, Inc. hereby answers in support of United Airlines, Inc., which objects to the tentative grant of authority to National Air Cargo Group, Inc. to provide scheduled interstate and foreign air transportation of persons, property and mail. Based on new facts and evidence that have just surfaced in connection with the General Services Administration’s FY 2014 City Pair Contract Awards (August 16, 2013), it is clear that National has not accurately portrayed its service plans to the Department. Far from the modest plan described in its fitness application, National actually intends to engage in extensive international codeshare service in some 31 city-pair markets fed by Emirates-operated flights on seven long haul US-Dubai trunk routes. National’s recently revealed service plans exceed the scope of the evidence and information considered in the DOT’s underlying fitness review; furthermore, National’s GSA city pair bid is a sham transaction designed to circumvent the requirements of the Fly America Act, calling into question National’s compliance disposition.

For these reasons, Delta agrees with United (i) that Show Cause Order 2013-4-12 should be set aside, (ii) that National be required to submit detailed information demonstrating fitness for its actual service proposal, and (iii) that interested parties have the opportunity to comment on that information.

Counsel: Delta, Alexander Van der Bellen, 202-842-4184


 

September 9, 2013

Reply of National Airlines to Answers of Delta Air Lines, Airlines for America and The Airline Pilots Association

The answer of Delta - itself the recipient of 1640 routes under the GSA's City Pair Contract award of August 16 - simply summarizes the points made by United. Nothing further need be said beyond what National has already written in its September 4 Answer to United.

The answer of A4A takes a slightly different tack, focusing on concern for the integrity of the Department's processes. Its charge effectively is that National has acted with a lack of integrity, deliberately misleading the Department. National unequivocally denies this insinuation. It hid nothing from the Department. As National pointed out in its September 4 answer, at the time of the December 11, 2012 application, Washington Dulles was the only US point it was considering for codesharing service. That changed subsequently due to the GAO contract proposal. However, it did not amend its application because acting as the marketing carrier at other US points was irrelevant to the authority it was requesting or the factors being considered by the Department in determining its fitness.

While United, Delta and A4A purport to be motivated by high-minded concerns about the Department's procedures, their real point may be stated much more bluntly: they don't think that a tiny, upstart carrier like National (a motif that is threaded throughout their pleadings) has any business playing in "their" sandbox. National just isn't a member of the club. United wants National excluded because United wants to operate 1736 City Pair routes, rather than onIy 1730.

Counsel: Cozen O'Connor, Mark Atwood, 202-463-2513


 

OST-2012-0204 - Foreign Scheduled Passenger and Cargo
OST-2012-0205
- Interstate Scheduled Passenger and Cargo

Served September 12, 2013

Notice Accepting Filing of Objections as Petitions for Reconsideration

On August 26, 2013, United Airlines, Inc. filed an objection to Order 2013-4-12 tentatively finding National Air Cargo Group, Inc. d/b/a National Airlines, fit to engage in foreign scheduled passenger air transportation, along with a motion for leave to file an otherwise unauthorized document. On September 5, 2013, Delta Airlines, Inc., Airlines for America, and the Air Line Pilots Association, International filed answers in support of United’s objections. National has responded to these filings on September 4 and 9, respectively.

We note that the period for the filing of objections to Order 2013-4-12 has long passed, and that the Department’s Final Order 2013-7-12 had been issued on July 12, 2013 and was in section 41307 Presidential review prior to the filing of these objections to our show cause order. 14 CFR § 302.14 permits the filing of petitions for reconsideration 20 days from the service date of 2013-7-12, with answers due 10 days thereafter. As a matter of administrative convenience, we will treat these objections as petitions for reconsideration of the Department’s Final Order 2013-7-12 and National’s responses as answers thereto. If any other parties wish to file petitions for reconsideration or answers, Rule 14 will apply as usual.

By: Susan Kurland


 

OST-2012-0204 - Foreign Scheduled Passenger and Cargo

October 2, 2013

Re: Delta Air Lines' Objections

Delta respectfully submits this letter to bring to the Department’s attention supplemental authority which supports Delta’s objections to National Airlines’ certificate application. As Delta detailed in its objections of September 5, 2013, National would use its scheduled international passenger certificate to create a subterfuge for Emirates, a foreign air carrier, to obtain GSA city-pair contracts that Emirates is prohibited from bidding on under the Fly America Act. National is doing little more than renting its US carrier code to Emirates, which would operate all of the long haul service between the US and Dubai.

In closely analogous circumstances, the Department denied certificate authority to Trans International Express which sought DOT economic authority for the purposes of entering into US Postal Service contracts by placing its code on foreign air carriers. See Order 2000-9-20. Like TIE, National does not have intercontinental range passenger aircraft capable of operating the 7000 mile stage lengths between Dubai and the seven US gateways proposed in its city-pair bid. The Department stated that “we do not find that it in the public interest to permit TIE to hold out service as a direct air carrier that it is not capable of providing in its own right. To offer such service could violate the requirements of 49 USC 41712, which prohibits unfair methods of competition and unfair and deceptive trade practices on the part of air carriers and foreign air carriers."

The Department further expressed its concerns “about the public interest ramifications of carriers using our licensing process to compete in a potentially unfair manner for Postal Service subsidies. Thus, we are also sensitive to the arguments made by the objecting air carriers that TIE merely wants to ‘rent its code to foreign air carriers’ in order to give those foreign air carriers preferential treatment that is reserved for properly authorized US air carriers.” This is exactly what National is doing with Emirates.

Accordingly, consistent with DOT precedent, Delta urges that National’s certificate application be denied.

Counsel: Delta, Alexander Van der Bellen, 202-842-4184

 

October 2, 2013

Supplement to Petition for Reconsideration of United Airlines

While United is disappointed that the Department deemed it necessary to move forward with a Final Order granting National's Application without first considering United's Objections, United is encouraged that the Department recognized the significance of the issues United has raised by accepting United's Objections as a Petition for Reconsideration. The Department's Final Order is ripe for reconsideration because neither the Department nor interested parties could have been aware of National's actual service proposal prior to August 16, 2013, the Final Order would permit National to engage in operations for which it was not properly deemed fit, and the Department was prevented from addressing the Fly America Act concerns implicated by National's actual service proposal.

The General Services Administration, in response to United's bid protest, has taken the corrective action of terminating National's FY14 City Pair Program contract in its entirety and plans to re-evaluate the proposals submitted by National and other bidders to review various issues, including Fly America Act compliance. Under these circumstances, National's intentions are unclear and its Application to the Department may be moot for underlying authority to codeshare with Emirates. United reserves the right to further supplement its Petition for Reconsideration if necessary once National's intentions are clear.

Counsel: United and Crowell Moring, Lorraine Halloway, 202-624-2500


 

OST-2012-0204 - Foreign Scheduled Passenger and Cargo

October 11, 2013

Consolidated Answer of National Airlines to Supplements to Petitions for Reconsideration of United Airlines and Delta Air Lines

Thanks to United's intervention, the General Services Administration has terminated "for convenience" the City-Pair Program contract that National was awarded on August 16,
2013, handing United the remaining six of the 1,730 routes it sought, and leaving 24 city
pairs from the United States to Afghanistan without GSA-contracted U.S. carrier service.

Not content with this victory, United and Delta have filed another round of pleadings before the Department, supplementing the answers they filed to the Department's Order to Show Cause (Order 2013-4-12) tentatively awarding National scheduled passenger authority (U.S. points-UAE-Afghanistan points).

National has held certificate authority for 10 years, first as a cargo carrier, and since 2010 as a passenger charter carrier. These certificates assume, by definition, operation of large aircraft, and indeed National is operating large aircraft between the United States, UAE and Afghanistan
today, including in the Dubai-Afghanistan markets. Once National implements its scheduled passenger service, it will be operating large aircraft in the scheduled Dubai- Afghanistan markets, and offering codeshare service on the U.S.-Dubai segments. This is precisely the service for which the Department found National fit. This is a very far cry from an air taxi that acts only as a freight forwarder for carriers operating large aircraft. The fact that the aircraft that Emirates uses on these routes (Boeing 777, A340 or A380) are larger than the aircraft National would use (Boeing 757) is of no consequence — they are all large aircraft within the legal meaning of the term.

Counsel: Cozen O'Connor, Mark Atwood, 202-463-2513





Order 2014-3-20
OST-2012-0204
- Foreign Scheduled Passenger and Cargo

Issued and Served March 31, 2014

Order Staying Effectiveness of Foreign Certificate

By this order, we are staying for a period of 30 days the effectiveness of the amended section 41102 certificate issued to National Air Cargo Group, Inc. d/b/a National Airlines, authorizing it to engage in foreign scheduled air transportation of persons, property, and mail, between a point or points in the United States, a point or points in the United Arab Emirates and beyond to a point or points in Afghanistan.

We have completed our review of the information and find that the material submitted is inadequate. Specifically, the liability insurance form OST 6410 indicates an attached schedule that was omitted in National’s submission to the Department. The bank statement from Wells Fargo bank appears to be a printout from the Wells Fargo website; the Department requires either third party verification of financial statements or an original bank statement. The resumes for the two new employees in key management roles do not list the positions that National claims the individuals now hold.

Regarding the FAA Operations Specifications, while National did provide evidence that it had been certificated by the FAA to engage in foreign scheduled passenger operations, the air carrier did not provide the list of specific airports authorized by the FAA where it may conduct scheduled operations. That list of authorized airports in National’s Operation Specifications does not include any locations in Afghanistan. As National is seeking to operate solely in a market that is not authorized by its operations specifications and provided incomplete information regarding its fitness, we are not able to make effective National’s certificate for foreign scheduled air transportation of persons, property, and mail.

Since the information received from National fails to demonstrate its continuing fitness to operate the proposed services covered by its certificate, we have decided to stay the effectiveness of that certificate for a period of 30 days or until the air carrier can provide the complete information required to make its certificate effective, whichever is sooner. We note that should National provide the required information to make its authority effective, the authority to operate under this certificate will not become effective until six (business) days after the Department has received such information, provided however, that the Department may stay the effectiveness of this authority at any time prior to this date.

During this period of stay, we will work closely with National to resolve our outstanding fitness issues. However, if a determination that National continues to be fit cannot be accomplished within 30 days, we intend to issue another order staying National’s foreign scheduled passenger authority.

By: Todd Homan


 

Order 2014-4-33
OST-2012-0204
- Foreign Scheduled Passenger and Cargo

Issued and Served April 30, 2014

Order Staying Effectiveness of Foreign Certificate

Under its terms and conditions, National’s foreign scheduled passenger certificate would become effective on the sixth business day after the Department received, among other things, (1) evidence that National has been certificated by the FAA to engage in foreign scheduled passenger operations, (2) evidence of liability insurance coverage that meets the requirements of section 205.5(b) of our rules, (3) a statement of changes it may have undergone since its fitness was examined and (4) evidence that National continues to have adequate financial resources available to it to cover any pre-operating expenses and to provide a working capital reserve equal to the operating costs that would be incurred in three months of operations.

On March 24, 2014, National provided updated fitness information to make its foreign scheduled certificate effective, including evidence of appropriate liability insurance, a copy of its bank statement from Wells Fargo Bank showing the amount of cash the company has on hand, an updated first-year expense forecast, and resumes from individuals holding key management positions. National also submitted Operations Specification from the FAA authorizing foreign scheduled operations.

Upon review of the information provided by National, the Department determined that the material was inadequate and thus issued Order 2014-3-20, staying the effectiveness of National’s foreign scheduled passenger certificate for a period of 30 days. In that order, the Department also stated that if a determination that National continues to be fit was not accomplished within 30 days, we intended to issue another order staying National’s foreign scheduled passenger authority.

Since we have not yet received the required updated information from National which demonstrates its continuing fitness to operate the proposed services covered by its certificate, we have decided to stay the effectiveness of that certificate for another period of 30 days or until the air carrier can provide all the documentation required to make its certificate effective, whichever is sooner. We note that should National provide the required information to make its authority effective, the authority to operate under this certificate will not become effective until six (business) days after the Department has received such information, provided however, that the Department may stay the effectiveness of this authority at any time prior to this date. We also remind National of the requirement that should the air carrier wish to operate its own aircraft between the United States and the United Arab Emirates, it must first provide the Department with at least 45 days advance notice of such plans and provide updated information establishing its fitness for such expansion prior to commencement.

During this period of stay, we will work closely with National to resolve any outstanding fitness issues. However, if a determination that National continues to be fit cannot be accomplished within 30 days, we intend to issue another order staying National’s foreign scheduled passenger authority.

By: Todd Homan


 

Order 2014-5-14
OST-2012-0204
- Foreign Scheduled Passenger and Cargo

Issued and Served May 29, 2014

Order Staying Effectiveness of Foreign Certificate

On March 24, 2014, National provided updated fitness information to make its foreign scheduled certificate effective, including evidence of appropriate liability insurance, a copy of its bank statement from Wells Fargo Bank showing the amount of cash the company has on hand, an updated first-year expense forecast, and resumes from individuals holding key management positions. National also submitted Operations Specification from the FAA authorizing foreign scheduled operations.

Upon review of the information provided by National, the Department determined that the material was inadequate and thus issued Order 2014-3-20, staying the effectiveness of National’s foreign scheduled passenger certificate for a period of 30 days. In that order, the Department also stated that if a determination that National continues to be fit was not accomplished within 30 days, we intended to issue another order staying National’s foreign scheduled passenger authority. Since the issuance of that stay order, National did not provide any new information to the Department and therefore Order 2014-4-33 was issued on April 30, 2014, again staying the effectiveness of National’s foreign scheduled passenger certificate for a period of 30 days.

Since we have not yet received the required updated information from National which demonstrates its continuing fitness to operate the proposed services covered by its certificate, we have decided to stay the effectiveness of that certificate for another period of 30 days or until the air carrier can provide all the documentation required to make its certificate effective, whichever is sooner. We note that should National provide the required information to make its authority effective, the authority to operate under this certificate will not become effective until six (business) days after the Department has received such information, provided however, that the Department may stay the effectiveness of this authority at any time prior to this date. We also remind National of the requirement that should the air carrier wish to operate its own aircraft between the United States and the United Arab Emirates, it must first provide the Department with at least 45 days advance notice of such plans and provide updated information establishing its fitness for such expansion prior to commencement.

During this period of stay, we will work closely with National to resolve any outstanding fitness issues. However, if a determination that National continues to be fit cannot be accomplished within 30 days, we intend to issue another order staying National’s foreign scheduled passenger authority.

By: Todd Homan


 

OST-2002-12555 - Designation of Agent

May 28, 2014

Designation of Agent

Counsel: Pierre Murphy, 202-776-3980




OST-2012-0204 - Foreign Scheduled Passenger and Cargo

June 10, 2014

Amendment No. 2

Motion for Confidential Treatment

National Air Cargo Group, Inc., d/b/a National Airlines respectfully submits herewith the information required for issuance of an effective certificate for scheduled foreign air transportation of persons, property and mail. Further, Applicant is amending its pending application: (1) to delete that portion of the application seeking beyond- authority to Afghanistan, leaving the application for scheduled service between the United States and United Arab Emirates in place; and (2) to amend its United States-United Arab Emirates service proposal to one whereby the service will be provided with National' s own aircraft.

Counsel: Pierre Murphy, 202-776-3980


 

OST-2012-0204 - Foreign Scheduled Passenger and Cargo

June 18, 2014

Amendment No. 3

Current Balance Sheet & Statement of Financial Operations:
A current Balance Sheet and YTD Statement of Financial Operations is attached at Exhibit NA-107

Counsel: Pierre Murphy, 202-776-3980


 

OST-2012-0204 - Foreign Scheduled Passenger and Cargo

July 8, 2014

DOT Request for Additional Information

We have completed our initial review of the information you filed on June 10 and June 18, 2014, on behalf of National Air Cargo Group, Inc. d/b/a National Airlines, amending the air carrier's application for the determination of its fitness to conduct foreign scheduled operations. We have determined that we will need additional and/or clarifying information before we may complete our review. The attached Information Request lists the areas where further information and/or clarification is necessary. I ask that you respond fully to this request within 30 days of the date of this letter.

  • Ownership
  • Operations and Financial Conditions

By: Catherine O'Toole


 

August 19, 2014

Additional Information Response

  • Management
  • Operations and Financial Conditions

Counsel: Pierre Murphy, 202-776-3980


 

Order 2015-1-21
OST-2012-0204
- Foreign Scheduled Passenger and Cargo

Issued and Served January 26, 2015

Order Confirming Oral Action and Issuing Effective Certificate

By this order, the Department (1) confirms its oral action of November 10, 2014, making effective the authority of National Air Cargo Group Inc., d/b/a National Airlines, to operate foreign scheduled air transportation of persons, property and mail; and (2) reissues the air carrier’s foreign certificate to reflect its effectiveness.

We reissue to National Air Cargo Group, Inc. d/b/a National Airlines the amended foreign certificate issued to it by Order 2013-7-12 in the attached form to reflect the effective date of its authority.

By: Todd Homan


 

Order 2015-1-21
OST-2012-0204
- Foreign Scheduled Passenger and Cargo

Issued January 26, 2015 | Served February 19, 2015

Order Reissuing Certificate - Erratum

By Order 2015-1-21, issued January 26, 2015, the Department confirmed its oral action making effective the authority of National Air Cargo Group Inc., d/b/a/ National Airlines, to operate foreign scheduled air transportation of persons, property and mail and reissued the air carrier’s certificate authority to reflect the date of its effectiveness. In that order, the certificate does not reflect the route number (908) and is incorrectly labeled as an interstate certificate.

Attached is a corrected foreign scheduled certificate with route number included.

By: Todd Homan


 

Served February 25, 2015

Notice of Deregistration of Trade Name

On February 12, 2015, National Air Cargo Group, Inc. d/b/a National Airlines, a US certificated air carrier, requested that the Department deregister the trade name "Murray Air" stating that it no longer intends to use the name in its operations.

We acknowledge National's request and deregister the trade name "Murray Air" effective immediately.

National's interstate certificate was last reissued by Order 2011-7-15, on July 29, 2011.

By: Todd Homan


 

OST-1995-236 - Warsaw Agreements

April 7, 2015

Warsaw Agreement

Counsel: Pierre Murphy, 202-776-3980


 

OST-2015-0090 - Blanket Open-Skies Certificate

April 21, 2015

Application for a Blanket Open-Skies Certificate

National Airlines hereby applies for a Blanket "Open Skies" Certificate of Public Convenience and Necessity that would allow National Airlines to provide scheduled foreign air transportation of persons, property, and mail from a point or points in the United States, via intermediate points, to any point or points in any country with which the United States has entered into an "Open Skies" agreement as well as any country with which the United States may in the future inter into such an agreement once the agreement is being applied by both countries.

National operates a mixed fleet of aircraft currently consisting of Boeing B-747-400 freighters and B-757-200 pax aircraft.

The Department has granted National Airlines and its predecessor company various interstate and foreign charter certificates since 2004. The Department has also found National Airlines fit to provide scheduled combination foreign air transportation when in 2014 it issued a Certificate of Public Convenience and Necessity to provide scheduled US-UAE service. See Order 2015-1-21.

Counsel: Pierre Murphy, 202-776-3980


 

OST-2015-0128 - Exemption - US-Canada Scheduled Passenger

June 8, 2015

Application for an Exemption

National Air Cargo Group d/b/a National Airlines hereby applies for an exemption from 49 USC §41101, and such other relief as the Department may deem necessary, in order to engage in the scheduled foreign air transportation of persons, property and mail between a point or points in the United States and a point or points in Canada. National Airlines proposes to engage in such services utilizing Boeing B-757-200 passenger aircraft. National Airlines plans to initiate service to Canada on or about November 1, 2015, and therefore requests that this exemption authority be granted as expeditiously as possible.

Pursuant to an April 21, 2015 application for blanket Open Skies Certificate authority (See: Docket OST-2015-0090), which would include US-Canada authority, National had hoped this authority would have been in place well prior to the time National needed to commence marketing its proposed US-Canada service, however this authority has yet to have been issued and this exemption application is necessary.

Counsel: Pierre Murphy, 202-776-3980


 

OST-2015-0128 - Exemption - US-Canada Scheduled Passenger


June 15, 2015

Re: Polling Results

Pursuant to the above-referenced application of National Air Cargo Group d/b/a National Airlines filed on June 8, 2015, we hereby confirm that we have now completed a polling of the US carriers on the service list. All have conveyed a "no objection" to the above-referenced application or early action in its processing. National, therefore, respectfully requests early action as soon as feasible.

Counsel: Pierre Murphy, 202-822-8050





Filed June 8, 2015 | Issued June 16, 2015

Notice of Action Taken

Scheduled foreign air transportation of persons, property and mail between a point or points in the United States and a point or points in Canada. National Airlines states that it plans to initiate service to Canada on or about November 1, 2015.

By: Paul Gretch


 

Order 2015-9-18
OST-2015-0090
- Blanket Open-Skies Certificate
OST-2005-22228 - Streamlining Regulatory Procedures for Licensing US and Foreign Carriers

Issued July 20, 2015 | Served September 22, 2015

Order Issuing Certificate

By this order we grant National Air Cargo Group, Inc. d/b/a National Airlines certificate authority to provide combination service to all of our foreign aviation partners that have entered into an open-skies agreement with the United States where that agreement is being applied.

We have also decided to grant to National Airlines certificate authority to serve Brunei Darussalam, Chile, Cook Islands, New Zealand, Samoa, Singapore and Tonga, each a signatory to the Multilateral Agreement on the Liberalization of International Air Transportation.4Our action here establishes for the carrier a new route certificate, in the form attached at Appendix A. We find that grant of the certificate is consistent with the public convenience and necessity. We find further that the pending open-skies request is not controversial and that it is appropriate to grant the authority at issue here under simplified procedures.

We will also grant the carrier blanket authority such that when an additional foreign aviation partner enters into an open-skies agreement with the United States, and where that agreement is being applied, authority to serve that open-skies partner will automatically be included as part of the carrier’s certificate authority without the need for further action by the Department or the carrier. The Department finds that the award of such authority, on a prospective basis, with the enhanced administrative convenience it would accord to the carrier, is consistent with the public interest.

By: Paul Gretch




OST-2002-12556 - Designation of Agent

October 5, 2015

Designation of Agent

Please take notice that Kenneth P. Quinn, Jennifer E. Trock and Graham C. Keithley substitute for Pierre Murphy as designated agents for National Air Cargo Group, Inc. d/b/a National Airlines.

Counsel: Pillsbury Winthrop, Kenneth Quinn, 202-663-8898


 

OST-2016-0042 - Amended Certificate of Public Convenience and Necessity

March 11, 2016

Application for an Amended Certificate of Public Convenience and Necessity

Motion for Confidential Treatment

National Airlines respectfully submits this Application to amend its Certificate of Public Convenience and Necessity to authorize it to engage in interstate scheduled air transportation of persons, property and mail pursuant to 49 USC § 41102. National Airlines also requests that the Department remove restrictions on National Airlines’ fleet or, in the alternative, allow National Airlines to increase its fleet by two passenger aircraft. The Department limited National Airlines to a fleet of eight aircraft (two passenger and six cargo). See DOT, Order 2015-1-21.

National Airlines currently provides foreign scheduled round-trip air service on two routes from Orlando-Sanford International Airport, Sanford, Florida: (1) SFB-Windsor International Airport, Ontario, Canada and (2) SFB-St. John’s International Airport, Newfoundland and Labrador, Canada. Pursuant to the Department’s rules in 14 CFR Part 380, National Airlines also provides interstate scheduled charter air transportation three times a week as the direct air carrier between SFB and Luis Muñoz Marín International Airport, San Juan, Puerto Rico. National Airlines operates these services with two Boeing 757-200s.

National Airlines plans to increase its existing interstate passenger service and start new interstate and foreign scheduled passenger services:

Service Route Frequency (Change)
Interstate San Juan-Orlando (Sanford) 3 times weekly (none)
Interstate Aguadilla-Orlando (Sanford) 2 times weekly (new)
Interstate Islip-San Juan 2 times weekly (new)
Interstate Islip-Aguadilla 2 times weekly (new)
Foreign Islip-London Luton 3 times weekly (new)

To operate these services, National Airlines intends to add two Boeing 757-200 passenger aircraft that are currently under negotiation for lease by National Airlines.

Counsel: Pillsbury Winthrop, Kenneth Quinn


 

OST-2016-0042 - Amended Certificate of Public Convenience and Necessity

April 4, 2016

DOT Denying Confidential Treatment Request

Our decision as to confidential treatment with respect to National's application is as follows:

  1. With respect to Exhibit NA-8, we have decided to deny confidential treatment to National's traffic and financial forecast. The Department finds that the information contained in this exhibit is necessary to determine National's fitness.
  2. With respect to Exhibits NA-10, we have decided to deny confidential treatment to National's projected balance sheet and profit and loss statements. The Department finds that the information contained in this exhibit is necessary to make a fitness determination.

If National elects not to file a petition, we direct that it file the exhibits noted above in the public docket in this proceeding within five business days of the date of this letter.

By: Lauralyn Remo


 

OST-2016-0067 - Disclaimer of Jurisdiction

April 6, 2016

Application for a Disclaimer of Jurisdiction

National Air Cargo Holdings, Inc., National Airlines’ ultimate owner, transferred the domicile of National Airlines from Michigan to Florida, with its headquarters in Florida. The change did not change the form of organization, management, ownership, control, operations, financial condition, or citizenship of National Airlines, and National Airlines continues to be fit in all respects. Under Florida and Michigan law, National Airlines continued as the same entity following its move to Florida, with National Airlines keeping all of the assets, liabilities and business of the continued corporation.

Counsel: Pillsbury Winthrop, Kenneth Quinn


 

OST-2016-0042 - Amended Certificate of Public Convenience and Necessity

April 11, 2016

Petition for Partial Reconsideration of Denial of Confidential Treatment Request

In its Letter, the Department acknowledges that it will generally grant confidential treatment to information pertaining to a company’s forecast revenues (and related statistics). See also Letter from L. Remo, DOT, to J. Mietus (Mar. 11, 2014) (granting confidentiality to revenue per block hour, total revenue, pre-interest profit and loss, net profit and loss, and ACMI block hour charge rate information and stating that the Department generally grants confidential treatment to proposed fares and projected revenues for planned routes); Letter from P. Thomas, DOT, to L. McPherson, Casino Airlines (Oct. 28, 2004) (granting confidentiality to projected revenue passenger/seats, projected revenue miles, projected revenue seat miles, and income information); Letter from P. Thomas, DOT, to J. Burton and D. Bliss (Oct. 4, 2000) (stating that the Department will generally grant confidential treatment to revenue forecasts, including estimated revenue passenger miles and available seat miles).

Upon reconsideration, the Department has granted partial confidential treatment to redacted exhibits that contain forecast revenues (and related statistics). See Letter from L. Remo, DOT, to R. Cohn and P. Rizzi, at 2 (Aug. 23, 2012).

National Airlines’ Forecast Revenue Information meets the standards for nondisclosure found in exemption (4) in the Freedom of Information Act, 5 USC § 552. The public disclosure of National Airlines’ Forecast Revenue Information would cause substantial harm to National Airlines’ competitive position by disclosing details of its otherwise confidential business and financial activities. Third parties could obtain this information and use it to undermine National Airlines’ operations, thus causing economic harm to National Airlines. See National Parks and Conservation Assoc. v. Morton, 498 F.2d 765, 770 (D.C. Cir. 1974) (requiring consideration of whether disclosure is likely to impair the governments to obtain necessary information and cause substantial harm to competitive position of the person from whom the information was obtained).

Therefore, to prevent disclosure of National Airlines’ Forecast Revenue Information and to ensure that its competitive position is not harmed, National Airlines requests that confidential treatment be granted to National Airlines’ Forecast Revenue Information in Exhibits NA-8 and NA-10.

Counsel: Pillsbury Winthrop, Kenneth Quinn, 202-663-8898


 

OST-2016-0042 - Amended Certificate of Public Convenience and Necessity

May 5, 2016

DOT Request for Additional Information

  • Financial Position
  • General Information and Key Personnel
  • Certification

By: Lauralyn Remo


 

Order 2016-5-10
OST-2016-0067

Issued and Served May 16, 2016

Order Disclaiming Jurisdiction

We have examined the information provided by National in support of its request for a disclaimer of jurisdiction and conclude that the corporate reorganization of National is not a transfer within the meaning of section 41105 of the Transportation Code. In reaching this conclusion, we find that the corporate reorganization will have no effect on the ownership, control, management, citizenship, financial condition, or operations of the air carrier. Therefore, in light of the foregoing, we have decided to grant National’s request for a disclaimer of jurisdiction over its reorganization from a Michigan corporation to a Florida corporation.

By: Todd Homan


 

OST-2016-0042 - Amended Certificate of Public Convenience and Necessity

May 31, 2016

Request for 30-Day Extension

On behalf of our client, National Air Cargo, Inc. d/b/a National Airlines, we request a 30-day extension to submit the information requested in your letter dated May 5, 2016.

Counsel: Pillsbury Winthrop, Kenneth Quinn, 202-663-8898


 

OST-2016-0042 - Amended Certificate of Public Convenience and Necessity

June 9, 2016

Notification of Change of Key Management Personnel

Mark Burgess assumed the position of President and Chief Operating Officer at National Airlines. Previously, Mr. Burgess was the Managing Director, Americas for National Airlines’ parent company, National Air Cargo, Inc. He has an extensive management career in air transportation, including vice president positions at Swissport Cargo Services and Kitty Hawk Cargo, Inc., and manager positions at Bax Global, ATI and American International Freight.

Joe Batten re-assumed the position of Director of Operations. Mr. Batten was previously National Airlines’ Director of Operations from October 2013 until February 2016, when he assumed a special position as B757 Check Airman and Projects Coordinator. Mr. Batten’s extensive experience includes Director of Operations at Sky King Airlines and Director of Training and Standards at National Airlines and Capital Cargo International Airlines. Mr. Batten is a certificated airline transport pilot with type ratings in DHC-7, B-727 and B-757/767 aircraft, as well as being a flight instructor and holding an airframe and powerplant mechanics license.

James Alexander assumed the position of Director of Maintenance, having previously been promoted from his position as Maintenance Manager at National Airlines, and subsequently as the assistant to National Airlines’ Director of Maintenance. Mr. Alexander has extensive experience in aviation maintenance management, having held maintenance management positions since 1997 with Northwest Airlines, Spirit Airlines, and Panasonic Avionics Corporation before joining National Airlines. His experience as an aircraft maintenance technician extends to 1981 with his service in the US Marine Corps and work with Columbia Helicopters, Inc., Air Wisconsin, and Serve-Air Inc. Mr. Alexander has held his FAA Airframe and Powerplant license since 1988.

In addition, Brian Conaway departed as National Airlines Chief Financial Officer. National Airlines finances are now managed by Eric Danat, Director of Global Finance at National Airlines’ parent corporation, National Air Cargo, Inc. Mr. Danat is intimately familiar with National Airlines’ operations and finances and is a qualified Certified Public Accountant. We will notify you when a new CFO is appointed.

Counsel: Pillsbury Winthrop, Kenneth Quinn, 202-663-8898


 

OST-2016-0042 - Amended Certificate of Public Convenience and Necessity

July 14, 2016

Withdrawal of Application

On behalf of National Air Cargo Group, Inc. d/b/a National Airlines, we hereby withdraw the Application for an Amended Certificate of Public Convenience and Necessity in the above-referenced docket.

Counsel: Pillsbury Winthrop, Kenneth Quinn, 202-663-8898




Order 2016-7-16
OST-2016-0042
- Amended Certificate of Public Convenience and Necessity

Issued and Served July 21, 2016

Order Dismissing Application

On March 14, 2016, National Air Cargo Group, Inc. d/b/a National Airlines filed an application in Docket OST-2016-0042 to amend its certificate of public convenience and necessity to authorize it to engage in scheduled interstate transportation of persons, property and mail. Subsequently, on July 14, 2016, the air carrier’s representative notified the Department that National Airlines is withdrawing its application for an amended certificate of public convenience. Under these circumstances, we will dismiss the application posted on March 14, 2016, in this docket without prejudice.

By: Todd Homan


 

OST-2016-0200 - Exemption and Certificate - US-Hong Koing

October 7, 2016

Application for an Exemption and a Certificate of Pubic Convenience and Necessity

National Air Cargo Group, Inc. d/b/a National Airlines hereby applies for an exemption and an amendment to its certificate of public convenience and necessity authorizing it to engage in scheduled foreign air transportation of persons, property and mail between points in the United States and Hong Kong. National is requesting expedited treatment by the Department of this application as the Hong Kong Civil Aviation Department has recently advised National that it will not authorize ad hoc charters during the peak period season for air cargo out of Hong Kong due to the phased-in implementation of a new air traffic control system. In order to operate all-cargo flights between the US and Hong Kong for long-time customers of its cargo charter services, National requires exemption and certificate authority for scheduled US-Hong Kong services, including all-cargo operating rights.

The CAD has determined that in order to effect the necessary flight reductions, among other measures , it will not approve any carrier requests for ad hoc cargo charters during the period October 30, 2016 through November 26, 2016. The period during which cargo charter requests will not be considered by the CAD falls during the core of the peak period season for air cargo traffic flowing out of Hong Kong and destined for the United States. National has longstanding shipper and air freight forwarder customers who have relied on its US-Hong Kong ad hoc cargo charter services during peak period seasons in previous years and are expected to do so again in the coming months. Given the CAD's ban on ad hoc cargo charters during the above-mentioned period, National would be effectively shut out of Hong Kong for the busiest portion of this year's peak season, with substantially negative effects for both National and the shippers and freight forwarders that rely on its services. These customers of National's all-cargo flights have reported that their cargo loads scheduled for the month of November are too large to be accommodated on the scheduled services of other carriers - passenger or all-cargo.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660


 

OST-2002-12556 - Designation of Agent

October 21, 2016

Designation of Agent

Counsel: Zuckert Scoutt, Malcolm Benge


 

OST-2016-0200 - Exemption and Certificate - US-Hong Kong


October 25, 2016

Re: Polling Results

National filed the attached application for scheduled service traffic rights between the US and Hong Kong (no third-country intermediate or beyond points). The application was necessitated by the decision of the HK CAD not to approve any ad hoc cargo charters during the month of November (cargo peak season) due to the phased-in implementation of a new air traffic (runway) management system at Hong Kong International Airport. We requested expedited treatment in the application because of the effect on National’s cargo operations into and out of Hong Kong. We polled the service list and all of the carriers responded with a no objection except Delta, which did not respond at all.

The answer period for the exemption request included in National’s application has now expired without an objection from any party on the service list. National is scheduled to operate a cargo flight for Expeditor’s International between Hong Kong and Chicago this Saturday, Oct. 29 subject to receiving the required government approvals. DOT approval of National’s pending exemption application is urgent if National is to receive the necessary traffic rights in time to operate Saturday’s flight. Approval several days in advance of the flight is required in order to have time to secure the necessary authorization for the flight from the HK CAD.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-973-7904





Filed October 7, 2016 | Issued October 26, 2016

Notice of Action Taken

Exemption for two years for scheduled foreign air transportation of persons, property and mail between a point or points in the United States, directly or via any intermediate points and Hong Kong.

We will handle National Airlines’ request for amended certificate authority separately.

By: Brian Hedberg


 

OST-2016-0235 - Exemption and Certificate of Public Convenience and Necessity - US-China Zone 3 Scheduled Passenger and Cargo

November 28, 2016

Application for an Exemption and a Certificate of Public Convenience and Necessity

National intends to commence scheduled combination service between U.S. points and points in China Zone 3 in early 2017. U.S.-China Zone 3 service will be provided with National's existing fleet of 757-200 aircraft. National requests prompt approval by the Department of its request for U.S.-China Zone 3 scheduled authority so that it can make final operating plans and move forward with local arrangements in China for its proposed services.

Its proposed service will open up service to points in China Zone 3 that are currently without direct or non-stop service to the United States. China Zone 3 encompasses multiple cities with populations exceeding 10 million, markets that are large enough to support direct scheduled service to the U.S. but currently have to depend on connecting services through existing gateways in China. The decision by the U.S. and China to amend their bilateral and allow for unlimited service to China Zone 3 points clearly anticipated that these points would eventually attract the type of regularly scheduled services that National is proposing in this application.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660


 

OST-2016-0235 - Exemption and Certificate of Public Convenience and Necessity - US-China Zone 3 Scheduled Passenger and Cargo

December 6, 2016

Re: Polling Results

On November 28, 2016, National Air Cargo Group, Inc. d/b/a National Airlines, filed the attached application for certificate and exemption authority for scheduled combination service between any point or points in the US and any point or points in China Zone 3. The DOT Docket Number is OST-2016-0235. We have polled all of the carriers on the service list and there are no objections to the application.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-973-7904


 

OST-2016-0235 - Exemption and Certificate of Public Convenience and Necessity - US-China Zone 3 Scheduled Passenger and Cargo

Filed November 28, 2016 | Issued January 4, 2017

Notice of Action Taken

Exemption - Scheduled foreign air transportation of persons, property and mail between points in the United States and points in China designated as Zone 3 in the Air Transport Agreement between the United States and the People’s Republic of China.

We will handle National Airlines’ request for amended certificate authority separately.

By: Brian Hedberg


 

OST-2017-0038 - Exemption - US-China All-Cargo

March 21, 2017

Application for an Exemption

National Air Cargo Group, Inc. d/b/a National Airlines hereby applies for an exemption authorizing it to engage in scheduled foreign air transportation of property and mail between points in the United States and the points in the People's Republic of China as provided in the Agreement Relating to Civil Air Transport between the United States and the People's Republic of China, as amended. National requests exemption authority in order to conduct scheduled all-cargo services for a period of two years.

National intends to commence scheduled all-cargo service between US points and points in China on June 1, 2017. National will operate US-China scheduled all-cargo services with its existing fleet of Boeing 747-400BCF aircraft.

National has previously been authorized to engage in the scheduled foreign air transportation of persons, property and mail pursuant to a certificate of public convenience and necessity issued by the Department in January 2015. Order 2015-1-21. National's certificate authority was subsequently expanded to include blanket open skies authority. Order 2015-9-18. The Department recently granted National's request for an exemption to provide scheduled combination service between the US and any point in China Zone 3. Notice of Action Taken (January 4, 2017) , Docket OST-2016-0235. The certificate authority held by National for combination service includes the right to operate scheduled all-cargo services.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660


 

OST-2017-0038 - Exemption - US-China All-Cargo

Filed March 21, 2017 | Issued April 13, 2017

Notice of Action Taken

Exemption for scheduled foreign air transportation of property and mail between points in the United States and points in the People’s Republic of China. The carrier states that it will begin service on June 1, 2017.

By: Brian Hedberg


 

OST-2002-12555 - Designation of Agent

May 5, 2017

Change in Representation

This is to advise that Pillsbury Winthrop Shaw Pittman LLP no longer represents National Air Cargo Group, Inc. d/b/a National Airlines.

Counsel: Pillsbury Law, Charles Donley, 202-663-8448


 

OST-2017-0038 - Exemption - US-China All-Cargo

May 12, 2017

Application for Amendment of Exemption

National currently holds an exemption to provide scheduled foreign air transportation of property and mail between points in the United States and points in the People's Republic of China. See Notice of Action Taken (April 13, 2017). Since the filing of its earlier exemption application for US-China scheduled all-cargo authority, National has been contacted regarding scheduled cargo operations from the United States to China via intermediate points and to points beyond China. Negotiations for these services are close to final. National therefore requests that its current exemption for US-China scheduled all-cargo services be amended to read as follows: "From any point in the United States, via any intermediate points to any point or points in the People 's Republic of China open to scheduled international operations, and beyond to any points outside the People's Republic of China." National intends to commence scheduled all-cargo service between US points and points in China on June 1, 2017.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660


 

OST-2017-0038 - Exemption - US-China All-Cargo

May 17, 2017

Re: Polling Results

Last Friday, National Airlines filed the attached application requesting an amendment to its existing exemption for US-China scheduled all-cargo service. We have polled all the carriers on the service list and there are no objections. In providing this report on the status of our polling for this application, we are relying on a “blanket” no objection from Delta Air Lines regarding applications for all-cargo services.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-973-7904


 

OST-2017-0038 - Exemption - US-China All-Cargo

Filed May 12, 2017 | Issued May 24, 2017

Notice of Action Taken

Amendment for scheduled foreign air transportation of property and mail from any point or points in the United States, via any intermediate points to any point or points in the People’s Republic of China open to scheduled international operations, and beyond to any points outside the People’s Republic of China.

National Airlines currently holds exemption authority to engage in scheduled foreign air transportation of property and mail between points in the United States and points in the People’s Republic of China (see Notice of Action Taken dated April 13, 2017, in this Docket). National Airlines now seeks amendment of that authority to conduct scheduled cargo operations from the United States to China via intermediate points and to points beyond China. The carrier states that it will begin service on June 1, 2017.

By: Brian Hedberg


 

OST-2016-0200 - Exemption and Certificate - US-Hong Kong

August 21, 2018

Application for Renewal of an Exemption

National currently holds an exemption to engage in scheduled foreign air transportation of persons, property and mail between a point or points in the United States, directly or via any intermediate points, and Hong Kong.

National's US-Hong Kong exemption authority is currently set to expire on October 26, 2018. National requests renewal of its exemption authority for an additional twoyear period. The Department has previously determined that the grant of the exemption requested by National is consistent with the public interest and the air services agreement between the United States and the Hong Kong Special Administrative Region. That agreement allows for unlimited Third and Fourth Freedom scheduled combination services, including all-cargo operating rights, between the US and Hong Kong.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660




OST-2016-0200 - Exemption and Certificate - US-Hong Kong

Filed August 21, 2018 | Issued September 20, 2018

Notice of Action Taken

Renewal of scheduled foreign air transportation of persons, property, and mail between a point or points in the United States, directly or via any intermediate points, and Hong Kong. National Airlines also requests that its US-Hong Kong exemption authority be integrated with its other existing economic authority.

As noted in our October 26, 2016 Notice of Action Taken, National Airlines would need a frequency allocation in order to conduct any scheduled Hong Kong operations serving intermediate points.

By: Brian Hedberg


 

OST-2016-0235 - Exemption and Certificate of Public Convenience and Necessity - US-China Zone 3 Scheduled Passenger and Cargo

October 30, 2018

Application for Renewal of an Exemption

National Air Cargo Group, Inc. d/b/a National Airlines hereby applies for renewal of its exemption authority authorizing it to engage in scheduled foreign air transportation of persons , property and mail between points in the United States and points designated as China Zone 3 points in the Air Services Agreement between the United States and the People's Republic of China. National requests that its China Zone 3 exemption authority be integrated with its other existing economic authority.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660


 

OST-2016-0235 - Exemption and Certificate of Public Convenience and Necessity - US-China Zone 3 Scheduled Passenger and Cargo

Filed October 30, 2018 | Issued November 16, 2018

Notice of Action Taken

Renewal of exemption for two years for scheduled foreign air transportation of persons, property, and mail between points in the United States and points in China designated as Zone 3 in the Air Transport Agreement between the United States and the People’s Republic of China. National Airlines also requests that its US-China Zone 3 exemption authority be integrated with its other existing economic authority.

By: Brian Hedberg


 

OST-2017-0038 - Exemption - US-China All-Cargo

March 14, 2019

Application for Renewal of an Exemption

National Air Cargo Group, Inc. d/b/a National Airlines hereby applies for renewal of its exemption authority authorizing it to engage in scheduled foreign air transportation of property and mail between the United States and the People's Republic of China. National's US-China scheduled all-cargo authority is currently set to expire on May 24, 2019.

National currently holds exemption authority to engage in scheduled foreign air transportation of property and mail between any point or points in the United States, via any intermediate points to any point or points in the People's Republic of China open to scheduled international operations, and beyond to any points outside the People's Republic of China.

Counsel: KMA Zuckert, Malcolm Benge, 202-298-8660


 

OST-2017-0038 - Exemption - US-China All-Cargo

Filed March 14, 2019 | Served June 26, 2019

Notice of Action Taken

Renewal of scheduled foreign air transportation of property and mail from any point or points in the United States, via any intermediate points to any point or points in the People’s Republic of China open to scheduled international operations, and beyond to any points outside the People’s Republic of China.

By: Brian Hedberg

 

 


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