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OST-00-7547

SwissJet, Inc.

Counsel:  Swissjet, Serge Feller, sfeller@swissjet.com and Winthrop Stimson, Joshua Romanow, 202-775-9800, romanowj@winstim.com 

SwissJet, Inc. was incorporated in Florida on April 3, 2000 with the intention of starting and operating an air carrier. Our primary business focus will be to create, offer and sell complete vacation packages, which we will call "SwissJet Vacations". These vacation packages will provide round-trip air transportation to and from selected vacation destinations, hotel accommodations, ground services, and other vacation-related services. We intend to distribute these vacation packages primarily through tour operators and travel agents. The area of our expected operations includes the United States, Canada, Mexico,. Cuba, the Islands of the Bahamas, the Caribbean, and Central and South America. In these markets, we intend to operate medium-sized single-isle jet aircraft in scheduled public and single entity charters operating from South Florida in a 1,500-mile radius with occasional trips beyond such limits. What will make SwissJet unique is that we will package our own vacation tours in order to market and sell its flights.  

The company's core strategy for achieving success in the competitive passenger charter industry is to combine efficient equipment with a dedicated and cost-effective labor force. Within the first year of operation, the company plans to operate two MD-80 series aircraft and add additional aircraft as market conditions warrant. These aircraft, which have a 142-seat configuration, are ideally suited for the mid-size medium range markets that SwissJet will target.

Counsel:  Swissjet, Serge Feller, sfeller@swissjet.com and Winthrop Stimson, Joshua Romanow, 202-775-9800, romanowj@winstim.com 

SwissJet, Inc.

By:  Patricia L. Thomas 

SwissJet, Inc.

By:  Tourjets Airline, Serge Feller

SwissJet, Inc.

Counsel:  Joshua Romanow, 202.775.9800, romanowj@winstim.com

Swissjet, Inc. - Tourjets Airlines

By:  Pillsburry Winthrop, Josh Romanow, 202.775.9800, romanow@pillsburywinthrop.com 

Swissjet, Inc. - Tourjets Airlines

By:  Pillsburry Winthrop, Josh Romanow, 202.775.9800, romanow@pillsburywinthrop.com 

Tourjets Airline Corporation

Counsel:  Pillsbury Winthrop, Josh Romanow, 202.775.9800, romanow@pillsburywinthrop.com 

Swissjet, Inc. - Tourjets Airlines

Tourjets, a non-operating company headquartered in Ft. Lauderdale, Florida, was incorporated in Florida on April 3, 2000. Its two founders--Serge Feller and J.W. Korth & Company, a securities brokerage firm--currently hold 95.54 percent of the company's stock . If granted the certificates it seeks, the applicant plans to purchase 142-seat MD-82 aircraft and provide charter flights in the United States and to other points in the Western Hemisphere.

It expects that the majority of its operations will be to points within the United States and between the United States and points in Canada, the Caribbean, Mexico, and South America. The applicant plans to arrange its own tour packages, including its own air services, which it will then market through other tour operators and travel agents. In all, the company expects to operate approximately 3,682 block hours in its first year of certificated operations.

Tourjets provided an audited balance sheet for the company at October 31, 2000, as well as an unaudited balance sheet at June 30, 2001. At June 30, the applicant had total assets of $24,219, total liabilities of $570,190, and negative net equity of $545,971. The applicant does not, however, intend to rely on internal financial resources to support its air carrier services. Instead, it intends to use the proceeds of a public offering of its stock.  Tourjets estimates that its will require approximately $18 million to obtain the two aircraft it initially plans to use and an additional $3 million to cover other pre-operating expenses. The company has also provided a forecast indicating that it expects to incur approximately $16.1 million in operating expenses during its first year of operations. We have reviewed the forecast direct operating costs and believe them to be reasonable for the limited services currently proposed. Based on these projections, we estimate that Tourjets will need approximately $25.54 million to meet our financial test." Tourjets' stock offering, if completed, is expected to provide the company with approximately $69 million in net proceeds

SAirGroup, the parent of Swissair, a foreign air carrier, sent a letter to the Department and to the applicant stating that it opposed the applicant's use of the Swissjet name, claiming that such use would create confusion between the two airlines. The applicant has now changed its name, thus resolving this concern.

By:  Susan McDermott

Swissjet, Inc. - Tourjets Airlines

By Order 2001-8-20 , issued August 22, 2001 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 Tour jets Airline Corporation (Tourjets) authorizing it to engage in interstate and foreign charter air transportation of persons, property, and mail. Interested persons were given 14 days to file objections to the order.

By:  Susan McDermott

TourJets Airline Corporation

Tourjets is pleased to inform the Department that since June 2002 that it has made substantial progress in the startup process and, it was able to sell its stock (totaling less than 5% of the company's ownership) in private transactions to US citizens. In addition, the founders (Feller and Korth) continued to fund the company privately and in August the company secured a line of credit in the amount of $2,000,000 conditioned upon receiving final FAA approvals.

With respect to the aircraft type, Tourjets has obtained more favorable rental conditions to lease two Fokker F-100 (97seat) aircraft. This represents a change from the previous planned MD-80 operations in a positive way.  Finally, our goal is for Tourjets to be operational in time for the peak holiday/winter travel season.

Counsel:  Pillsbury Winthrop, Josh Romanow, 202-775-9800

Swissjet, Inc. d/b/a Tourjets

Based upon the information in its application, we have decided to grant Tourjets' requested waiver. Thus, the revocation-for-dormancy date for Tourjets' certificate authority is extended from September 6, 2002, to March 6, 2003. In addition, given the time that has passed since full fitness information was provided by Tourjets to the Department, we will require the carrier to submit complete, up-to-date information on its ownership, management, operating plans, financial condition, and compliance disposition at least 30 days in advance of any request to have the certificate authority made effective.

By: Patricia Thomas

Swissjet, Inc. d/b/a Tourjet Airlines Corporation

Correspondence of the Air Carrier Fitness Division granting Tourjets Airline Corporation their requested waiver.

By: Patricia Thomas

Granting Tourjets' requested waiver and request of Office of Aviation Analysis to Tourjets Airline Corporation for up-to-date information on its ownership, management operating plans financial condition, and compliance disposition at least 30 days in advance of any request to have the certificate authority made effective.

Based upon the information in its application, we have decided to grant Tourjets' requested waiver. Thus, the revocation-for-dormancy date for Tourjets' certificate authority is extended from September 6, 2002, to March 6, 2003. In addition, given the time that has passed since full fitness information was provided by Tourjets to the Department, we will require the carrier to submit complete, up-to-date information on its ownership, management, operating plans, financial condition, and compliance disposition at least 30 days in advance of any request to have the certificate authority made effective.

By: Patricia Thomas

TourJets

As widely evidenced, the state of the U.S. economy since September 2001 has worsened and the prolonged recession caused air travel to decrease considerably. While these factors were beyond Tourjets control, it is in our control to adjust our initial scope of operation and select equipment and schedules accordingly. In January 2003 it became apparent that the Unites States may be at War and that our initial operation would not be feasible to commence in March 2003. Hence, we searched for a solution to provide us with the ability to commence operations as soon as possible, but initially within a smaller scale.

In February we began the negotiations to purchase an existing small air carrier. The Company we intend to purchase has been issued an air carrier certificate and is currently operational. Our management and operational structure, remains largely unchanged and our operating plan consistent with our plan first filed with the Department with the exception of the type of aircraft. We intend to operate smaller aircraft and to expand gradually, adding larger aircraft onto the certificate in the way that will assure proper service to the public in our selected markets.

By: TourJets, Serge Feller

Tourjets Airline Corporation

On September 3, 2002, Tourjets requested that the Department grant it a six-month extension from the one-year revocation-for-dormancy provisions of section 204.7. After reviewing the carrier's request, by letter dated September 9, 2002, we granted Tourjets the additional time it sought. As a result of this action, Tourjets' original September 6, 2002, revocation date was extended until March 6, 2003. Tourjets was not, however, able to meet the conditions of its certificate authority by that date. Further, by letter dated March 25, Tourjets advised us that it was withdrawing its request for authority for Tourjets at this time.1 Under these circumstances, by this order, we will revoke, without prejudice, the interstate charter certificate issued to Tourjets by Order 2001-9-2. Revocation of Tourjets foreign certificate authority is subject to Presidential review under 49 U.S.C. 41307 and will be handled in a separate order.

By:  Randall Bennett

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