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OST-2019-0109 - Sky Palace Airways - Certificate of Public Convenience - Foreign Subservice Charter Passenger (Europe; Mecca)

 

OST-2019-0110 - Certificate of Public Convenience - Interstate Charter Passenger

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Sky Palace Airways, Inc.

OST-2019-0109 - Certificate of Public Convenience - Foreign Subservice Charter Passenger (Europe; Mecca)

August 1, 2019

Application for a Certificate of Public Convenience and Necessity

Sky Palace Airways hereby applies for a Certificate of Public Convenience and Necessity authorizing it to conduct foreign charter air transportation of persons, property and mail with large aircraft.

Sky Palace Airways was established in 2018 by Tampa, Florida insurance executive and investor Hitesh (John) Adhia, in conjunction with noted surgeon and philanthropist Dr. Kiran Patel. The carrier's purpose is to bring much needed lift to the passenger charter and ACMI sectors of the industry, at extremely reasonable costs. The carrier's founders and their investors - largely drawn from the Florida Indian-American community - have put a premium on ensuring generous funding and extremely experienced professional management, avoiding the pitfalls of many startup carriers, particularly in this sector of the industry.

Sky Palace plans to provide its services to other air carriers as well as charter operators and private organizations around the world on an ACMI or full-charter basis. Its focus will be on establishing long-term working relations with those clients. There is currently a significant demand for "subservice" transport in the passenger sector, and a dearth of carriers able to provide this service. The demand has been exacerbated by delays in the delivery of Boeing 787 aircraft. Sky Palace believes that its very lean structure and extremely low costs will enable it to offer the most competitive ACMI and full-charter rates available. Sky Palace will also engage in contracts for the annual Hajj charters, intermittent Umrah pilgrimages to Mecca, as well as the European tour operator business. The carrier expects that it will secure contracts guaranteeing 240 hours of revenue flying per month for each aircraft. (In order to ensure that its forecasts are conservative, only 150 monthly hours of charter service per aircraft are assumed, which excludes the anticipated Hajj charters.)

The carrier has planned a startup date of January 2020.

Sky Palace plans to operate two Boeing 777-200 aircraft during the first 12 months of operation. Suitable aircraft have been located and terms have been negotiated with the sellers. A second aircraft will be purchased in May 2020, and begin operations in June of that year. Additional aircraft will be brought into the fleet in subsequent years.

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

 

 


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