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OST-02-14027

 

Victory Air Transport, Inc.

OST-02-14028 December 6, 2002 Application for A Certificate of Public Convenience and Necessity Certificate of Public Convenience and Necessity

Victory is a newly formed corporation seeking authority to engage in foreign charter air transportation of person, property, and mail so that it may provide on-demand, single entity charter services using a Boeing 737-2V6 aircraft.

Counsel: Crowell Moring, Lorraine Halloway, 202 624-2500

OST-02-14027 December 6, 2002 Application for a Certificate of Public Convenience and Necessity Certificate of Public Convenience and Necessity
    Service List  
    Index of Exhibits  
    Cross Reference Index  
    Exhibit VAT-1:  Certificate of Good Standing  
    Exhibit VAT-2:  Affidavit of Citizenship  
    Exhibit VAT-3:  Ownership and Key Personnel  
    Exhibit VAT-4:  Compliance Information  
    Exhibit VAT-5:  Affidavit of FAA Safety Compliance  
    Exhibit VAT-6:  Narrative Service Proposal  
    Exhibit VAT-7:  DDL's Historical Financial Information  
    Exhibit VAT-8:  Financing Plan and DOT Working Capital Reserve Requirement  
    Exhibit VAT-9:  Financial Fitness Data  
    Exhibit VAT-10:  OST Form 4523  
    Exhibit VAT-11:  Title 18 Certification  

Victory plans to provide on-demand, single entity charter service using one dry-leased Boeing 737-2V6 aircraft Victory will arrange and/or provide maintenance, hangaring and other services for the Aircraft.

Victory's lease payments will be based on an hourly rate for each revenue flight hour for which the Aircraft is operated. The hourly rate will cover the lease of the Aircraft as well as fuel, insurance, maintenance and other incidental operating costs. No charges will be incurred for non-revenue flights required for such purposes as repositioning, training and maintenance. This simple payment structure ensures that Victory will not incur any aircraft expense unless it has charter business to cover it. Moreover, Victory's flight crew will be paid by Victory on an hourly basis for Aircraft operations. Thus, Victory's crew expenses will be quite limited since the vast majority of the crew expense will be incurred in connection with revenue-generating charter flights. In addition, since the Aircraft will be based in its current hangar, the costs associated with hangaring the aircraft will continue to be paid by the Aircraft owner.

Counsel: Crowell Moring, Lorraine Halloway, 202 624-2500

OST-02-14027 December 6, 2002 Motion to Withhold Information from Public Disclosure Certificate of Public Convenience and Necessity
    Service List  

Counsel: Crowell Moring, Lorraine Halloway, 202 624-2500

Victory Air Transport, Inc.

OST-02-14027 December 12, 2002
Docketed December 13, 2002		 Erratum Interstate Charter Air Transportation

Victory Air Transport Inc. ("Victory") submits an errata to the above-referenced application, filed on December 6, 2002, correcting page 11 of Exhibit VAT-3.

Counsel: Crowell Moring, Brandi Williamson

Victory Air Transport, Inc.

OST-02-14027
OST-02-14028		 December 27, 2002 Re:  Information Request Certificate of Public Convenience and Necessity - Interstate and Foreign Charter Passenger, Property and Mail

By:  Air Carrier Fitness, Delores King

Victory Air Transport, Inc.

OST-02-14027 January 6, 2003
Docketed January 7, 2003		 Letter of Victory Air Certificate of Public Convenience and Necessity

Letter of Victory Air Transport, Inc. pursuant to the Department's December 27, 2002 ruling on confidentiality, submits Exhibit VAT-7 to the docket.

Counsel: Crowell Moring, Lorraine Halloway, 202 624-2538

Victory Air Transport, Inc.

OST-02-14027
OST-02-14028		 January 14, 2003 Re:  Information Response Certificate of Public Convenience and Necessity
    VAT-12:  Preapplication Statement of Intent  
    VAT-14: Bank of Florida Statement  

This letter responds to the Department's Information Request, dated December 27, 2002, in connection with the applications of Victory Air Transport, Inc. which are pending in Dockets OST-2002-14027 and 2002-14028. Victory's response follows the order of questions in the Department's Information Request and restates each question.

The Boeing 737-2V6 which Victory proposes to use has been advertised for sale for approximately two years prior to Victory's commencement of the DOT application process. The demand for used Boeing 737-200 aircraft has been negatively affected by a weakened economy and the reaction of airlines to keep newer aircraft in their fleet so as to minimize maintenance, repair and parts costs. Consequently, the market value of the Boeing 737-2V6 has declined significantly. The aircraft lease agreement between SAS and Victory provides that if SAS desires to sell the aircraft and terminate the lease, SAS is obligated to lease to Victory a reasonably equivalent aircraft.

Counsel:  Crowell Moring, Lorraine Halloway, 202 624-2500

OST-02-14028 January 14, 2003 Motion to Withhold Information from Public Disclosure Certificate of Public Convenience and Necessity

Counsel:  Crowell Moring, Lorraine Halloway, 202 624-2500

Victory Air Transport, Inc.

OST-02-14027
OST-02-14028		 February 13, 2003 Re:  Information Request Certificate of Public Convenience and Necessity - Interstate and Foreign Charter Passenger, Property and Mail

By:  Air Carrier Fitness, Delores King

Victory Air Transport, Inc.

OST-02-14027 February 25, 2003 Re:  Response to Information Request Certificate of Public Convenience and Necessity - Interstate Charter Passenger, Property and Mail

As explained in its application and Exhibit VAT-6, Victory's operations will be limited to on-demand, single entity charter service with executive-configured Boeing 737 aircraft. These unique, Part 135 operations are substantially different and much more limited than the operations conducted by typical charter air carriers and will not require the same amount or type of infrastructure required for charter air carriers operating under Part 121. Victory believes that the services and infrastructure currently maintained by DDL (including, without limitation, personnel and facilities to be provided by DDL to Victory as described in the Application) will provide an ample basis for the limited operations Victory plans to conduct.

Counsel:  Crowell Moring, Lorraine Halloway, 202 624-2500

Victory Air Transport, Inc

OST-02-14027 April 9, 2003 Additional Information Certificate of Public Convenience and Necessity

I am enclosing updated financial information for DDL Pilot Services Company and a current bank statement for Victory Air Transport, as requested. If further information is needed about Victory's account at the Bank of Florida, please contact Ms. Mary Beth Mauriello at (954/653-2000).

Counsel: Crowell Moring, Lorraine Halloway, 202-624-2500

Victory Air Transport, Inc

Issued and Served July 7, 2003

Order 03-7-7
OST-02-14027 - Certificate - Interstate On-Demand Passenger Charters
OST-02-14028 - Certificate - Foreign On-Demand Passenger Charters

Order to Show Cause Propossing Issuance of Certificates | Word

Victory’s proposed operations are somewhat different from that of a typical charter applicant. It intends to use a 27-seat executive-configured Boeing B-737-2V6 owned by SAS, and currently managed by Victory’s parent, DDL, to conduct its own charter flights when its aircraft is not otherwise being used by its owner. Thus, the proposed operations are an off-shoot of the on-going aircraft management and pilot services DDL is already providing.

By: Michael Reynolds

Victory Air Transport, Inc.

Issued and Served July 23, 2003

OST-02-14027 - Certificate - Interstate On-Demand Passenger Charters
OST-02-14028 - Certificate - Foreign On-Demand Passenger Charter

Final Order | Word

Order 2003-7-25, the Department (1) finds that Victory Air Transport, Inc., is fit, willing, and able to engage in interstate and foreign charter air transportation of persons, property, and mail; (2) issues a certificae of public convenience and necessity to Victory Air Transport, Inc., to engage in interstate charter air transportation; and, (3) the Department directs that, should Victory Air Transport, Inc., want to operate more than three large aircraft, it must first provide at least 45-days' notice and demonstrate its fitness for such expansion.

By: Michael Reynolds

OST-02-14027 - Victory Air Transport - Certificate - Interstate - On-Demand Passenger Charters
OST-02-14028 - Victory Air Transport - Certificate - Foreign - On-Demand Passenger Charters

March 11, 2004

Re: Applications of Victory Air Transport

Victory Air Transport, Inc. is submitting documents and information required by the terms of the certificates awarded by Orders 2003‑7‑25 and 2003‑9‑16 before that certificate may be made effective. Victory also requests a waiver of the six‑business day waiting period so that Victory' certificate authority will become effective immediately after the Department receives the carrier's operating authority.

Victory wants to begin marketing and selling its charter air transportation services as soon as possible, without having to wait a full six business days after it receives its FAA operating authority to have its certificate authority become effective. For that reason, Victory asks the Department to waive the six‑business day waiting period and to make Victory's certificate authority effective as soon as the Department receives a copy of the carrier's operating authority. Granting such a waiver is consistent with Department precedent and is in the public interest because it will facilitate commencement of service by a new carrier, thereby enhancing competition and providing new service alternatives for travelers.

Counsel: Crowell Moring, Lorraine Halloway, 202-624-2538, lhalloway@crowell.com

OST-02-14027 - Certificate - Interstate - On-Demand Passenger Charters
OST-02-14028 - Certificate - Foreign - On-Demand Passenger Charters

March 22, 2004

Re: Revised Information Concerning Pre-Operating Costs and Balance Sheets

As a follow‑up to its submission of March 11, 2004, Victory is submitting revised information concerning pre‑operating costs as well as balance sheets for Victory and DDL Pilot Services Company, Inc.

Also enclosed is a copy of Victory's Air Carrier Certificate, which was issued by the FAA last week. Since Victory has now completed its proving runs and received operating authority from the FAA, Victory renews its request for waiver of the six‑day waiting period and asks the Department to make Victory's certificate authority effective as soon as possible.

Counsel: Crowell & Moring, Lorraine Halloway, 202-624-2538, lhalloway@crowell.com

Victory Air Transport, Inc.

Order 04-03-31
OST-02-14027 - Interstate - On-Demand Passenger Charters
OST-02-14028 - Foreign - On-Demand Passenger Charters

Issued March 29, 2004 | Served April 1, 2004

Order Confirming Oral Action and Issuing Effective Certificates

On March 2, 2004, we received the required certificate of insurance; on March 11, the carrier filed updated fitness information; and on March 22, Victory provided the required FAA documents. At the same time it filed these documents, Victory requested that the Department waive the six-day waiting period contained in the certificates and make the authority contained therein effective as soon as possible. The material filed by Victory showed that the company had undergone no significant changes in fitness and our review of the documents provided by the carrier was otherwise satisfactory.

Victory advised that there had been no change in its ownership or management and that it had paid all but approximately $5,000 of its pre‑operating expenses. It also submitted a statement from its bank showing that it had approximately $1 million on deposit, which is sufficient to cover the approximately $920,000 it will need to meet our financial criteria.

By: Randall Bennett

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