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LorAir Ltd.

Despite the statements in its application that the carrier is making significant progress towards resumption of its operations, we cannot verify that this is the case. Although LorAir has had discussions with the FAA about resuming operations, that agency advises us that LorAir has not provided the FAA with documentation establishing a plan for returning to operation. As a result, the FAA is unable to fully assess LorAir's current status vis-a-vis a resumption of its operations or, more importantly, whether it is reasonable to expect that LorAir can resume operations within the next six months. In this regard, we understand from the FAA that there appear to be a number of tasks for the carrier to accomplish, including required aircraft maintenance, before it would be in a position to resume operations. Moreover, we cannot ascertain what, if any, progress the carrier has made in resolving any of the FAA issues that led, in part, to LorAir's decision to cease operations. More importantly, on November 2, 2001, the FAA issued a Notice of Proposed Certificate Action proposing to revoke LorAir's FAA operating authority.

The carrier reports that it did undergo some ownership changes in August 2001. Before August, Ronald Clark owned 50 percent of the carrier, with Mr. and Mrs. Walter Cole holding the remaining stock. Since then, the company's ownership is as follows: Mr. Clark (37 percent); Nine Lives Holdings, Inc., a company that we understand is jointly owned by Mr. Clark and Mr. Cole (16 percent); Edward Coleman (42 percent); and James Bilbray (5 percent).

In sum, LorAir has failed to show that a waiver should be granted. Within a relatively short time after beginning flight operations, the FAA had concerns about aspects of its operations, and the Department had developed its own concerns about its financial situation. Within 15 months, LorAir had ceased its operations. It has spent the past year unsuccessfully seeking funding to resume operations and, during this time, allowed its assets to be seized. We cannot conclude, based on the information before us that, were we to grant LorAir the additional time it seeks, it is likely that it will be in a position to fully establish its fitness and have the FAA authority necessary to resume flight operations by the end of that time, particularly in light of the FAA's own proposed revocation action. We cannot ignore LorAir's past history with respect to past extension requests. As noted earlier, this company repeatedly failed to meet target extension dates prior to commencing operations. Absent compelling evidence that it will be operational within the six months it has requested, we are not prepared to extend its authority yet again and thus place a continuing administrative drain on the Department's, including the FAA's, limited resources to monitor this carrier in its attempts to resume operations.

By:  Read Van De Water

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