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OST-2013-0105 - Western Global Airlines - Foreign Cargo Charter Certificate of Public Convenience

http://westernglobalair.com

 

OST-2020-0203 - Disclaimer of Jurisdiction and Reissuance of Certificates, or Alternatively for Approval of Transfer of Certificates

OST-2013-0106 - Certificate of Public Convenience and Necessity - Interstate Cargo Charters
OST-2017-0056 - Western Global Airlines - US-China/Hong Kong Scheduled All-Cargo Exemption and Certificate
OST-2018-0018 - Exemption and Certificate of Public Convenience and Necessity - US-Open Skies Countries Property and Mail

 


Western Global Airlines, LLC

OST-2013-0105 - Certificate of Public Convenience and Necessity - Foreign Cargo Charters

May 14, 2013

Application for Certificate of Public Convenience and Necessity - Bookmarked

Western Global was formed earlier this year by Mr. James K. Neff, a 40-year veteran of the air cargo business and founder and former CEO of Southern Air, Inc. The plan of the company is to provide widebody cargo capacity on a leased ACMI basis to air carriers and freight forwarders in the United States and around the world. The carrier plans to start in September 2013 by operating one MD-11 freighter aircraft owned by and leased from a company controlled by Mr. Neff; the fleet will be increased to four aircraft during the first year of operation. Western Global plans to operate four MD-11 freighter aircraft during the first year of operation.

Western Global plans to provide its services to other air carriers as well as freight forwarders around the world on an ACMI basis. Its focus will be on establishing long-term working relations with those clients. Its owners and managers believe Western Global will be able to offer very competitive rates compared to other operators due to its highly experienced management team and the sharing of expenses with its affiliated Finnish carrier, Nordic Global.

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


 

OST-1996-1960 - Family Assistance Plans

May 17, 2013

Family Assistance Plan

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


 

September 9, 2013

Amendment to Application

Since submitting these applications, there has been a restructuring of Western Global's ownership and the company wishes to amend its application to incorporate the amended structure. As explained in the company's application for foreign charter cargo authority, one hundred percent of the membership interest in Western Global at the time of the filing was held by trusts formed for the benefit of, and controlled by, members of the James K. Neff family. Fifty percent of the ownership interest was held by the James K. Neff 2012 Irrevocable Trust and fifty percent by the Carmit P. Neff 2012 Irrevocable Trust. The sole trustee and beneficiary of the JKN Trust was Carmit P. Neff, wife of James Neff. The joint trustees of the CPN Trust were James K. Neff and Danielle J. Neff, Esq. (the Netts' daughter), with Carmit Neff named as the beneficiary. Each of these individuals was (and remains) a US citizen, so that the trusts and thus Western Global comprised citizens of the United States.

For estate planning purposes, however, these interests have been transferred to the following trusts, which have replaced the previous trusts as owners:

  • The James K. Neff Revocable Trust now holds thirty-five percent of the company with Mr. Neff listed as the sole trustee and beneficiary.
  • The Western Global Airlines Trust also holds thirty-five percent with Mr. Neff serving as trustee. Its beneficiaries are the Neffs' daughters and grandchildren.
  • The Carmit P. Neff Revocable Trust holds the remaining thirty percent of Western Global, with Mrs. Neff named as the sole trustee and beneficiary.

Because the new trusts are currently unfunded (but will be funded in the near future), we are enclosing a letter provided by James K. Neff, verifying the funds in his personal bank account as of July 31, 2013.

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


 

OST-2013-0105 - Certificate of Public Convenience and Necessity - Foreign Cargo Charters
OST-2013-0106 - Certificate of Public Convenience and Necessity - Interstate Cargo Charters

October 22, 2013

Additional Information Response

The business WGA anticipates will consist primarily of "ACMI" operations on behalf of other airlines or major freight forwarders. These contracts will provide that the customer (the charterer) is responsible for paying for fuel, loading, ground handling and similar services directly to the vendors.
This makes perfect sense when one realizes that the customers that WGA will serve - mostly large scheduled carriers - would already have very advantageous contracts for these services at the various stations to which WGA would operate. It would thus be uneconomical for WGA to contract for these elements on its own, at a higher price.

WGA will not have a base of operations per se. Since its aircraft will operate on behalf of other carriers all over the world, the aircraft will be based at the clients' facilities around the globe while under contract. Line maintenance will be performed wherever the aircraft are parked at the time, and scheduled maintenance will be performed at qualified MRO's that are located convenient to the aircrafts' base at the time. This is the way most charter cargo air carriers operate.

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


 

OST-2013-0105 - Certificate of Public Convenience and Necessity - Foreign Cargo Charters
OST-2013-0106
- Certificate of Public Convenience and Necessity - Interstate Cargo Charters

January 6, 2014

DOT Request for Additional Information

  1. Resumes of key personnel
  2. Updated financial information

By: Catherine O'Toole





January 10, 2014

Additional Information Response

  1. Resumes of key personnel
  2. Updated financial information

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


 

OST-2013-0105 - Certificate of Public Convenience and Necessity - Foreign Cargo Charters
OST-2013-0106
- Certificate of Public Convenience and Necessity - Interstate Cargo Charters

January 30, 2014

Motion to Shorten Public Comment Period

Concurrently with the prosecution of these applications before the Department, Western Global has been working with the Federal Aviation Administration to obtain its Air Carrier Certificate and Operations Specifications. It now appears that the carrier will complete its remaining steps and receive its FAA authority in early April. Further, given the requests of numerous clients for its proposed ACM! services, it expects to commence operations as soon as the regulatory authority is in hand.

Western Global's application is now ripe for decision by the Department, and we anticipate issuance of a show-cause order in the near future. However, given that most of the carrier's operations are expected to involve foreign air transportation, and its certificate authority for such service is subject to the 60-day presidential review under 49 USC § 41307, it is important for a final order in this matter to be issued as soon as possible to avoid a significant delay in startup of operations on account of the presidential review. Thus, the carrier requests that the Department reduce its standard 14-day objection and 7-day answer period for any show-cause order it issues tentatively granting Western Global's requests for certificate authority, to respectively five days (objections) and three days (answer). This will reduce the objection/answer period by 16 days, which is critical if the carrier is to be able to commence operations by mid-April. Undersigned counsel will poll the parties on the service list in these proceedings to ascertain if any of them intend to file objections.

Western Global Airlines, LLC, requests that the Department shorten the objection and answer periods, as requested herein, for any show-cause order it issues tentatively granting the carrier certificate authority.

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


 

OST-2013-0105 - Certificate of Public Convenience and Necessity - Foreign Cargo Charters
OST-2013-0106
- Certificate of Public Convenience and Necessity - Interstate Cargo Charters

February 10, 2014

DOT Request for Additional Information

One question came up regarding Western Global's compliance regarding accidents and incidents.

We require a 5 year history of operation and while I realize that WG is new and therefore doesn't have any accidents or incidents in the past 5 years.

I just need you to confirm that for WG key personnel. (Originally you had one year in the application, not 5).

By: Katy O'Toole, 202-366-9998


February 10, 2014

Additional Information Response

In its application, Western Global states that as a start-up air carrier, it has not been involved in an accident or incident. Moreover, the applicant notes that neither it nor any of its key personnel, except as noted below, have been involved in an accident or incident in the five years preceding its application or at any time in the past which remains under investigation by the FAA, the National Transportation Safety Board, or the company itself.

The only exception is Mr. William E. Phillips, who joined the carrier late last year as Chief Inspector. (A resume for Mr. Phillips was sent to the Department on December 9, 2013.) Mr. Phillips held the same position at National Airlines at the time of its Boeing 747 accident in Bagram, Afghanistan, April 29, 2013. That accident, which occurred on takeoff, resulted in destruction of the aircraft and loss of seven crewmembers. The accident is under investigation by the Afghan Civil Aviation Authority. It is Western Global's understanding that the NTSB is assisting in that investigation, but that no formal FAA or NTSB investigation is ongoing. No charges or enforcement actions have been taken against either National or Mr. Phillips.

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


 

Order 2014-2-11
OST-2013-0105
- Certificate of Public Convenience and Necessity - Foreign Cargo Charters
OST-2013-0106
- Certificate of Public Convenience and Necessity - Interstate Cargo Charters

Issued and Served February 11, 2014

Order to Show Cause Proposing Issuance of Certificate Authority

By this order, we tentatively find that Western Global Airlines, LLC is a citizen of the United States and is fit, willing, and able to conduct interstate and foreign charter air transportation of property and mail as a US certificated air carrier.

We direct all interested persons to show cause why we should not issue orders making final the tentative findings and conclusions stated above and award certificates to Western Global Airlines, LLC, authorizing it to engage in interstate and foreign charter air transportation of property and mail, subject to the attached specimen Terms, Conditions and Limitations.

We direct any interested persons having objections to the issuance of orders making final any of the proposed findings, conclusions, or the certificate awards set forth here to file such objections with the Department.

By: Susan Kurland


 

Order 2014-2-21
OST-2013-0105
- Certificate of Public Convenience and Necessity - Foreign Cargo Charters
OST-2013-0106
- Certificate of Public Convenience and Necessity - Interstate Cargo Charters

Issued and Served February 25, 2014

Final Order

By Order 2014-2-11, issued on February 11, 2014, 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 Western Global Airlines, LLC, authorizing it to engage in interstate and foreign charter air transportation of property and mail. Interested persons were given 5 calendar days to file objections to the order.

No objections to the show-cause order were received

By: Susan Kurland


 

Order 2014-4-27
OST-2013-0105
- Certificate of Public Convenience and Necessity - Foreign Cargo Charters

Issued February 25, 2014 | Served April 28, 2014

Order Issuing Foreign Certificate

By Order 2014-2-21, issued on February 25, 2014, we found Western Global Airlines, LLC fit, willing and able to engage in interstate and foreign charter air transportation of property and mail. Further, by that order, we issued a section 41102 certificate authorizing Western Global to engage in interstate charter cargo air transportation.

By this order, we are issuing a companion certificate authorizing Western Global to engage in foreign charter air transportation of property and mail. Instead of repeating our findings and conclusions in Order 2014-2-21, we incorporate them here by reference.

By: Susan Kurland




OST-2013-0105 - Certificate of Public Convenience and Necessity - Foreign Cargo Charters
OST-2013-0106 - Certificate of Public Convenience and Necessity - Interstate Cargo Charters


July 24, 2014

Additional Information Response

The certificates require, as a condition of their effectiveness, that the carrier submit the following:

  1. A copy of the holder's Air Carrier Certificate and Operations Specifications from the Federal Aviation Administration authorizing such operations;
  2. A certificate of insurance on OST Form 6410 evidencing liability insurance coverage meeting the requirements of 14 CFR 205.5(b) for all of its aircraft;
  3. A statement of any changes the holder has undergone in its ownership, key personnel, operating plans, financial posture, or compliance hi story, since the date of the Show Cause Order in this case;
  4. A revised list of pre-operating expenses already paid and those remaining to be paid, as well as independent verification that the holder has avai lable to it funds sufficient to cover any remaining pre-operating expenses and to provide a working capital reserve equal to the operating costs that would be incurred in three months of operations.

Western Global is hereby submitting responses to items (2) through (4); the FAA certificate and op specs (item (1)) have not yet been issued. However, as the carrier's final proving flight is scheduled to be completed on July 25, we anticipate that the certificate and op specs will be issued the following Monday, July 28. Thus, in order to expedite the Department's review of the required materials, we are supplying all except the last piece.

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





August 1, 2014

Air Carrier Certificate

I am submitting herewith a copy of the carrier's Air Carrier Certificate, issued by the FAA this morning, and section A001 of WGA's Part 121 Operations Specifications. These documents authori ze the interstate and foreign air transportation of property and mail allowed by the carrier's DOT Certificates.

By letter of July 24, 2014, WGA submitted the other information required by Orders 2014-2-21 and 2014-4-27 for activation ofthe carrier's certificates. We also requested a waiver of the six-day waiting period for effectiveness specified in the Orders so that the authority can be made effective and revenue flights commence as soon as the FAA authority is received.

Accordingly, Western Global Airlines requests that the Department now activate its certificate authority for foreign air transportation as granted by Orders 2014-2-21 and 2014-4-27.

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


 

Order 2015-5-19
OST-2013-0105
- Certificate of Public Convenience and Necessity - Foreign Cargo Charters
OST-2013-0106
- Certificate of Public Convenience and Necessity - Interstate Cargo Charters
OST-2014-0118 - Exemption - Carrying Revenue Cargo on FAA Proving Flights

Issued and Served May 26, 2015

Order Confirming Oral Actions and Issuing Effective Certificates

By this order, we (1) confirm our oral action of July 11, 2014, granting Western Global Airlines, LLC an exemption from the requirements of section 201.5 of our rules to the extent necessary to allow the company to carry revenue cargo on proving flights conducted under the surveillance of the Federal Aviation Administration; (2) confirm our oral action of August 1, 2014, making the interstate and foreign charter cargo authority effective on that date; and (3) reissue Western Global’s interstate and foreign charter cargo certificates to reflect their effective dates.

Based on our review of the information provided by Western Global, we concluded that the air carrier remained a US citizen and was fit to commence its interstate and foreign charter cargo operations. We also determined that there was no reason not to grant the company the waiver it requested and make its authority effective prior to the expiration of the six-day waiting period. Therefore, on August 1, 2014, we orally advised Western Global that we were making its certificate authority effective on that date.

By this order, we confirm our action of August 1, 2014, and reissue to Western Global its interstate and foreign charter cargo certificates to reflect their effective dates of August 1, 2014.

By: Todd Homan


 

OST-2002-12555 - Designation of Agent

February 1, 2018

Designation of Agent

Counsel: Garofalo Goerlich, Aaron Goerlich


 

OST-2013-0105 - Certificate of Public Convenience and Necessity - Foreign Cargo Charters
OST-2013-0106 - Certificate of Public Convenience and Necessity - Interstate Cargo Charters

September 8, 2021

Application for Removal of Condition Limiting Fleet Size

In issuing Western Global’s original certificate authority, DOT limited the carrier’s fleet to four aircraft. That was increased to nine, then to 15, and most recently to 19 aircraft at the request of Western Global. Given that Western Global has been operating very successfully for seven years and meets or exceeds all fitness criteria, the company respectfully submits that a condition limiting its fleet size is no longer necessary. Removal of the condition will help facilitate Western Global’s continued orderly growth and ease the Department’s and Western Global’s administrative burdens.

Western Global has been operating charter and scheduled all-cargo services on a worldwide basis for the past seven years using widebody aircraft exclusively. In 2020 the company generated approximately $375.5 million in operating revenues using a fleet of 12 MD-11 and three B-747 freighters; it has acquired
additional MD-11 and B-747 freighters to be integrated into its day-to-day operations. In 2019 Western
Global generated some $241.2 million in operating revenues; in 2018 the figure was approximately
$253.6 million. The company has a well-established customer base that includes e-commerce, express,
freight forwarder, logistics, and government/military organizations. Western Global expects to continue
growing its business and its fleet in 2021 and subsequently.

Counsel: Garofalo Goerlich, Aaron Goerlich


 

Order 2021-11-11
OST-2013-0105
- Certificate of Public Convenience and Necessity - Foreign Cargo Charters
OST-2013-0106 - Certificate of Public Convenience and Necessity - Interstate Cargo Charters

Issued and Served November 10, 2021

Order Removing Fleet Restriction

At the time that Western Global received its initial certificate authority in 2014, the Department included a requirement that limited the number of aircraft that it could operate to four aircraft. The Department has since then granted Western Global the authority to operate up to 19 aircraft.

The Department finds it appropriate to approve Western Global’s request to remove the aircraft fleet restriction imposed on its certificate authority. We also remind Western Global that, although the Department is no longer requiring the air carrier to seek economic approval to operate additional aircraft, the air carrier is still subject to FAA safety approval before adding aircraft to its Operations Specifications.

By: Joel Szabat

 

 

 


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