Home | Search | Help
OST by Number | OST by Order | OST by Carrier | OST by Subject | OST by Day
OIA by Carrier/Subject | OIA by Day | FAA by Number | FAA by Subject | FAA by Day
Carrier Financials | Charter Office | Answer/Reply Calendar

Arctic Circle Air Service, Inc

www.arctic-circle-air.com/

 

Arctic Circle Air Service, Inc

OST-96-1960 - Family Assistance Plan

July 16, 2004

Re: Family Assistance Plan

By: Don Singaas


Arctic Circle Air Service, Inc.

OST-04-19368 - Transfer and Subsequent Surrender of a Purchased Certificate of Public Convenience and Necessity

October 12, 2004

Application for the Transfer and Subsequent Surrender of a Purchased Certificate of Public Convenience and Necessity

Village Aviation, Inc. is the holder of a Certificate of Public Convenience and Necessity to engage in scheduled air transportation and has been conducting operations as an all‑cargo air carrier within the State of Alaska for several years, primarily from its operations base in Bethel. Village's certificate was re‑issued by Order 95-5-1 to "Village Aviation, Inc. d/b/a Camai Air," and Village has subsequently filed with the Department and FAA for authority to use the name "Village Aviation inc. d/b/a Village Air Cargo."

Arctic has agreed to buy and acquire the USDOT Certificate of Pubic Convenience and Necessity of Village for the purpose of acquiring the air carrier certificate authority of Village, and for the purpose of acquiring the mail and cargo activity that Village has obtained as a certificated carrier, including Village's history of traffic statistics. Village is selling and Arctic is buying only the certificate authority and cargo business accruing from the history of Village's authority. Neither the sale nor purchase of the Village Aviation, Inc. corporate entity is part of this transaction.

By: Stephen Anderson


OST-04-19368 - Transfer and Subsequent Surrender of a Purchased Certificate of Public Convenience and Necessity

October 15, 2004

Re: Information Request

We note that the application submitted was filed solely by Arctic Circle. Applications for a certificate transfer must be filed jointly by both parties involved in the transfer ‑ in this case by Arctic Circle and Village Aviation. Therefore, an amendment to the application requesting the transfer of Village Aviation's certificate to Arctic Circle reflecting both carriers as joint applicants must be submitted.

It is also not clear from the application whether Arctic Circle will continue to provide Village Aviation's services. If so, please specify what those services will be ‑ e.g., markets to be served and frequencies to be operated above those currently served by Arctic Circle. In addition, please state whether Arctic Circle will employ personnel from Village Aviation. If so, please specify the number of employees from Village Aviation and the type of positions they will hold with Arctic Circle ‑ e.g., managers, administrative support, flight crews, sales representatives, and maintenance personnel.

By: Air Carrier Fitness, Lauralyn Remo


OST-04-19368 - Transfer and Subsequent Surrender of a Purchased Certificate of Public Convenience and Necessity

October 26, 2004

Amended Application and Response to the Department with Additional Information Regarding the Application | Word

Arctic Circle Air Service, Inc. and Village Aviation, Inc. submit this amended application for the transfer and subsequent surrender of a certificate of public convenience and necessity authorizing interstate scheduled air transportation pursuant to section 41102 of Title 49 of the United States Code. The purpose of this amendment is to accommodate the joint filing of the application by both Arctic and Village. All pages of the original October 11, 2004 filing, including the appendices (not included in this filing), remain the same except for page 1 and page 8.

Arctic has agreed to buy and acquire the USDOT Certificate of Pubic Convenience and Necessity of Village for the purpose of acquiring the air carrier certificate authority of Village, and for the purpose of acquiring the mail and cargo activity that Village has obtained as a certificated carrier, including Village’s history of traffic statistics. Village is selling and Arctic is buying only the certificate authority and cargo business accruing from the history of Village’s authority. Neither the sale nor purchase of the Village Aviation, Inc. corporate entity is part of this transaction. A copy of the purchase agreement and Village’s USDOT certificate is included in Appendix A of this filing.

By: Arctic Circle, Stephen Anderson, 907-243-1380


OST-04-19368 - Transfer and Subsequent Surrender of a Purchased Certificate of Public Convenience and Necessity

November 1, 2004

Comments of The United States Postal Service

While the certificate at issue is not limited with regard to the geographic area within which service may be provided, Village Aviation chose to use the certificate to provide air service within the State of Alaska, and consequently fell within the purview of the statutory scheme for the transportation of nonpriority bypass mail set out at 39 USC § 5402(g)‑(s). One of the provisions of that scheme, section 5402(n), is related to the parties' request.

Counsel: USPS, William Jones, wiliam.j.jones@usps.gov


OST-04-19368 - Transfer and Subsequent Surrender of a Purchased Certificate of Public Convenience and Necessity

November 4, 2004

Comments of Arctic Transportation Services | Word

Arctic Transportation Service, Inc., agrees with the November 1, 2004 comments of the United States Postal Service regarding the business definition of a "merger", a combination whereby one of the constituent companies remains in being, absorbing the other or all of the other constituent company through a union, or amalgamation by which the stock of two corporations is made one, their property and franchise combined into one, their powers become the powers of one, and the identity of the two practically, if not actually, runs into one.

Clearly, a "merger" or "acquisition" by Arctic Circle to absorb Village Aviation has not transacted. Arctic Circles has no intention to acquire the common stock of Village Aviation either though a cash sale or an exchange of its own common stock and thus it's employees, assets or operations. Arctic Circle only intends to garner, at a grossly discounted rate, the nonmail freight share of Village Aviation though the disguise of a merger or acquisition of the Certificate of Public Convenience and Necessity.

By: Wilfred Ryan


OST-04-19368 - Transfer and Subsequent Surrender of a Certificate of Public Convenience

November 15, 2004

Comments and Response of Arctic Circle and Village Aviation

The Postal Service states that the transaction between Arctic and Village does not meet a cited dictionary definition of a "merger" and, therefore, the USPS can't understand why Arctic and Village suggest as much. In fact, in the filings of Arctic and Village, neither party suggest that the transaction was a merger, nor do we believe that partial citations of definitions from selected dictionaries constitute sound reasoning for forming an opinion in this matter. The filings of Arctic and Village clearly state the nature of the transaction without pretense, and explain why it is appropriate to accept the transaction as an acquisition within the context of §5402.

Counsel: Arctic Circle, Stephen Anderson, 907-243-1380


OST-04-19368 - Transfer and Subsequent Surrender of a Purchased Certificate of Public Convenience and Necessity

December 20, 2004

Comment and Request of Arctic Circle Air Service and Village Aviation | Word

Arctic and Village have made every effort to allow the Department and the Postal Service to effect the provisions of §5402(n) in a timely manner. Prior to executing their transaction, Arctic and Village retained an independent agent to inform key Department and Postal Service personnel about a pending acquisition by one carrier of another carrier’s certificate of public convenience and necessity, and to question these same officials about the applicability of §5402(n). Arctic and Village deliberately submitted the initial application for approval of the certificate transfer on the same date of their transaction, and have promptly responded to the Department thereafter as needed.

As of the date of this filing, the 12-month period described in §5402(n) has been significantly reduced and will continue to be reduced until the Department’s decision. This lapse has jeopardized and eroded a substantial benefit accruing to Arctic upon approval of the transfer application.

Therefore, Arctic respectfully renews its request for approval of the transfer of the Village certificate to Arctic, and that it is adjudged an acquisition for the purposes of exercising the privileges of 39 USC §5402(n). Arctic further requests a prompt decision in this matter so that the Bureau of Transportation Statistics and the US Postal Service may comply with the provisions of 39 USC §5402(n) and so that Arctic may realize the full value of its acquisition.

By: Arctic Circle, Stephen Anderson, 907-243-1380

www.arctic-circle-air.com/


OST-04-19368 - Transfer and Subsequent Surrender of a Purchased Certificate of Public Convenience and Necessity

January 27, 2005

Comments of Arctic Transportation Services and Petition for Leave to File an Otherwise Unauthorized Document and Petition to File Late | Word

Arctic Circle argues that a clear record of Carriers buying another Carrier's Certificate of Public Convenience and Necessity exists without buying the Corporation or other assets and liabilities. That may be true before the passage of the Rural Service Improvement Act of 2002. Following RISA's enactment, the rules changed. It makes no sense for Arctic Circle to site history before RISA, as justification to transfer the Certificate of Public Convenience and Necessity and ignore RISA's current requirement for two carrier's to merge or be acquired with the resulting carrier surviving as the basis for combining freight history of the two carriers.

Respectfully submits this letter of opposition to Arctic Circle's request to combine Village Aviation's historical freight data as a result of the transferred Certificate of Public Convenience and Necessity. We do not believe their transaction was conducted in the spirit of 5402 (n). Buying a Certificate of Public Convenience and Necessity for one dollar and claiming it entitles the carrier to more bypass mail then one would otherwise be qualified for is outside the spirit and intent of the Rural Services Improvement Act of 2002.

By: Wilfred Ryan, 907-562-2227, wryan@atsak.com


Order 2005-4-3
OST-2004-19368 - Transfer and Subsequent Surrender of a Certificate of Public Convenience and Necessity

Issued and Served April 6, 2005

Order Transferring Certificate Authority

As a scheduled air carrier in the State of Alaska, Arctic transports bypass mail in several markets. Among other things, Arctic states that its existing flight operations have excess capacity for mail and nonmail freight and that it is seeking additional opportunities to improve the efficiency of its business and flight operations. In order to enhance its eligibility for the tender of bypass mail under the provisions of the Rural Service Improvement Act of 2002, codified in Title 39 U.S.C. §5402 , Arctic agreed to buy and acquire Village's Certificate for the purpose of acquiring the carrier's air carrier certificate authority as well as the mail and cargo activity that Village has realized as a certificated carrier, including Village's history of traffic statistics. Village is selling, and Arctic is buying, only the certificate authority and any possible cargo business accruing from the history of Village's operations. Neither the purchase nor the sale of the Village Aviation, Inc., corporate entity is contemplated as part of this transaction. According to the Joint Applicants, Arctic purchased Village's Certificate for the express purpose of aggregating Village's and its own passenger and cargo data in order to qualify for additional mail tender.

Answers were received from the USPS and Arctic Transportation Services, Inc., an unrelated Alaskan air carrier. The USPS states that it has no objection to the transfer and surrender of Village's Certificate; however, while the USPS has recognized transferees of certificates as successors of the transferors for various purposes relating to eligibility in the context of the Alaskan bypass mail statutory scheme, it has not, prior to this, had the occasion to consider such a transfer in the specific context of §5402(n). It further states that it has now done so, and has concluded that such a transfer as contemplated by the Joint Applicants is not effective for the purposes of §5402(n). It reaches this conclusion for the reason that, contrary to the Joint Applicant's suggestion, it finds that this transaction is neither a "merger" nor an "acquisition" for the purposes of §5402.

ATS contends that Arctic is attempting to garner, at a grossly discounted rate, Village's nonmail freight share through the disguise of a merger or acquisition. ATS further argues that the purchase and immediate relinquishing of the Certificate constitutes a scheme and not a merger.

By: Karan Bhatia


Home | Search | Help
OST by Number | OST by Order | OST by Carrier | OST by Subject | OST by Day
OIA by Carrier/Subject | OIA by Day | FAA by Number | FAA by Subject | FAA by Day
Carrier Financials | Charter Office | Answer/Reply Calendar