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Lynx Aviation d/b/a Frontier Airlines
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Lynx Aviation, Inc. OST-2007-27074 - Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger January 23, 2007 Application for Certificate of Public Convenience and Necessity (307 pages) - Bookmarked On September 6, 2006, Frontier Airlines Holdings, Inc. formed Lynx as a wholly owned subsidiary to provide regional turboprop aircraft service to supplement and enhance Frontier Airlines, Inc. mainline scheduled aircraft service. Lynx requests authority to engage in interstate scheduled air transportation of persons, property, and mail as more fully described in Lynx's Business Plan attached to this application as Exhibit 7. Lynx will provide scheduled interstate air travel services that it will operate between Denver, Colorado and regional and business travel destinations in the United States. Lynx will initially provide scheduled interstate air travel service between Denver International Airport and the airports listed in Exhibit 7 as the initial service airports. Lynx will operate the Bombardier Q400 Series turboprop aircraft configured for 70 seats during winter operations and 74 seats during summer operations. Lynx is obtaining ten Aircraft, with delivery of its first Aircraft scheduled in May 2007 and its tenth Aircraft scheduled in December 2007. Beginning in 2008, Lynx anticipates it will operate 9 Aircraft with one spare available. Details on Lynx's service proposal are included in Lynx's Business Plan attached as Exhibit 7 to this Application. Lynx also has an option to obtain an additional ten Q400 Aircraft for deliveries in March 2008 through December 2008 under its Purchase Agreement with Bombardier. At this time, Lynx is planning to purchase and own its Q400 aircraft and does not currently have plans to lease any of the Aircraft. Counsel: Lynx, Thomas Nunn, 720-374-7800, tnunn@flyfrontier.com OST-2007-27074 - Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger February 21, 2007 Re: Ruling on Confidential Treatment Absent a clear and justifiable reason for doing so, it is not the Department's practice to withhold from public disclosure information regarding an applicant's current or historical financial condition, pre-operating cost forecasts, proposed operating plans, first-year operating cost forecasts, and forecast balance sheets. A review of Exhibits 7A, 7B, and 7C show that much of the information contained therein is of the type and scope the Department typically requires to be part of the public domain in its fitness process and Lynx has provided no information that persuades us to grant confidentiality to such information. However, with respect to Exhibit 7B, we recognize that the exhibit does contain some information for which we have typically granted confidential treatment, such as revenue and net income/loss projections. Therefore, we will grant confidential treatment to those portions of that exhibit. By: Air Carrier Fitness, William Bertram OST-2007-27074 - Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger March 13, 2007 Supplement No. 1 - Bookmarked There is a need to publicly file certain exhibits contained in the January 23 application. On February 21, the Department held that Lynx Exhibits 7-A and 7-C would not be granted Confidential Treatment. Lynx does not challenge that decision and therefore, those Exhibits 7-A and 7-C are attached hereto. The February 21 letter from the Department also noted that "with respect to Exhibit 713, we recognize that the exhibit does contain some information for which we have typically granted confidential treatment, such as revenue and net income/loss projections. Therefore, we will grant confidential treatment to those portions of that exhibit." Consistent with the February 21 letter, Lynx also files a partially redacted version of Exhibit 7-B attached hereto. Counsel: Wiley Rein, Edward Faberman, efaberman@wileyrein.com OST-2007-27074 - Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger
March 23, 2007 Updated Financial Information of Lynx Airlines Thank you for meeting with us to review the status of the Lynx Airlines, Inc. application. During the discussion, you asked for updated financial information. In response to that request, I have attached a copy of Frontier Airlines Holdings, Inc. Form 10-Q for the Quarter ending December 31, 2006. Counsel: Wiley Rein, Edward Faberman, 202-719-7402, efaberman@wileyrein.com
April 5, 2007 Letter Detailing Formation of Lynx Airlines This letter is to inform you that on September 6, 2006, Frontier Airlines Holdings, Inc. formed Lynx Aviation, Inc. as a wholly owned subsidiary to provide regional turboprop aircraft service to supplement and enhance Frontier Airlines, Inc. mainline scheduled aircraft service. Lynx was incorporated on September 6, 2006 as a corporation organized under the laws of the State of Colorado. On January 23, 2007 Lynx Aviation, Inc. filed for a certificate of authority with the Department of Transportation to operate as an air carrier engaging in interstate scheduled air transportation. In the Application, it is noted that Lynx Aviation, Inc., DBA Frontier, is a wholly owned subsidiary, Part 121 carrier of Frontier Holdings, Inc. Lynx Aviation will be operating new Bombardier Q400 aircraft with a 74-seat configuration funded by Frontier Holdings Inc. Counsel: Wiley Rein, Edward Faberman, 202-719-7402, efaberman@wileyrein.com Order 2007-5-2 Issued and Served May 4, 2007 By this order, we tentatively conclude that Lynx Aviation, Inc. d/b/a Frontier Airlines is a citizen of the United States, is fit, willing, and able to engage in interstate scheduled air transportation of persons, property, and mail, and should be issued a certificate of public convenience and necessity authorizing such operations, subject to conditions. We direct all interested persons to show cause why we should not issue an order making final the tentative findings and conclusions stated above and award a certificate to Lynx Aviation, Inc., d/b/a Frontier Airlines, authorizing it to engage in interstate scheduled air transportation of persons, property, and mail. By: Andrew Steinberg OST-2007-27074 - Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger May 9, 2007 Counsel: Wiley Rein, Edward Faberman, 202-719-7402, efaberman@wileyrein.com OST-2007-27074 - Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger May 10, 2007 Attached please find documentation demonstrating that Lynx Aviation, Inc. d/b/a Frontier Airlines has liability insurance coverage that meets the requirements of 14 CFR 205.5(b). On May 4, 2007 the Department issued an "Order to Show Cause" (Order 2007-5-2) which asked Lynx Aviation, Inc. to submit a fully executed OST Form 6410 evidencing liability insurance coverage that meets the requirements of Section 205.5(b) of our rules. Attached is Form 6410 along with a Certificate of Insurance issued by Willis of New York, Inc. - Global Aviation showing that insurance issued to Frontier Airlines Holdings, Inc., Frontier Airlines, Inc. includes Lynx Aviation, Inc. Counsel: Wiley Rein, Edward Faberman, 202-719-7402, efaberman@wileyrein.com Order 2007-5-13 Issued and Served May 21, 2007 By Order 2007-5-2, issued May 4, 2007, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated in it and award a certificate of public convenience and necessity to Lynx Aviation, Inc., d/b/a Frontier Airlines, authorizing it to engage in interstate scheduled air transportation of persons, property, and mail. Interested persons were given 14 days to file objections to the order. No objections to the show cause order were received. We issue a certificate of public convenience and necessity to Lynx Aviation, lnc., d/b/a Frontier Airlines, to engage in interstate air transportation in the form and subject to Terms, Conditions, and Limitations By: Andrew Steinberg OST-2007-27074 - Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger May 21, 2007 Application for a Waiver from 14 CFR 201.5(a)(2) On May 21, 2007, the Department issued a Final Order (Order 2007-5-13) concluding that Lynx Aviation, Inc., d/b/a Frontier Airlines, is fit, willing, and able to engage in interstate scheduled air transportation of persons, property, and mail, and issued a certificate of public convenience and necessity to Lynx to engage in interstate scheduled air transportation of persons, property, and mail subject to conditions. Pursuant to 49 U.S.C. 40109 and the Department's Rules of Practice, Lynx hereby applies for a waiver of the provisions of 14 C.F.R. 201.5(a)(2) of the Department's Regulations to enable the carrier to begin advertising, accepting payments and issuing tickets on May 25, 2007, for flights that are planned to begin during the first week of September 2007. Granting this waiver to Lynx is consistent with the public interest as it will expand service options and lowfare service in multiple domestic markets some of which have not had multiple travel options. Approving Lynx's waiver request will also enhance competition and will ensure that Lynx is able to establish itself in its multiple new markets and be able to continue its entry plans. Lynx requests that this exemption be granted no later than May 24, 2007 and that it remain in effect until Lynx is granted effective certificate authority for its proposed operations. Counsel: Wiley Rein, Edward Faberman, efaberman@wileyrein.com OST-2007-27074 - Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger June 4, 2007 Application for a Waiver from 14 CFR 201.5(a)(2) On May 21, 2007, the Department issued a Final Order (Order 2007-5-13) concluding that Lynx Aviation, Inc., d/b/a Frontier Airlines, is fit, willing, and able to engage in interstate scheduled air transportation of persons, property, and mail, and issued a certificate of public convenience and necessity to Lynx to engage in interstate scheduled air transportation of persons, property, and mail subject to conditions. Lynx hereby applies for a waiver of the provisions of 14 C.F.R. 201.5(a)(2) of the Department's Regulations to enable the carrier to begin advertising, accepting payments and issuing tickets on June 14, 2007, for flights that are planned to begin on Sept. 5, 2007. On that date, Lynx will operate three roundtrip flights between Denver International Airport and an existing Frontier markets. On October 1, 2007, Lynx will add three daily roundtrips between DIA and a new market and on October 5, 2007, Lynx will add two daily roundtrips between DIA and each of two new markets. During the time period that Lynx proposes to operate these inaugural operations, Frontier will be adding new aircraft to its fleet. Lynx requests that this exemption be granted no later than June 13, 2007 and that it remain in effect until Lynx is granted effective certificate authority for its proposed operations. Counsel: Wiley Rein, Edward Faberman, efaberman@wileyrein.com Order 2007-6-20 Issued and Served June 29, 2007 We grant Lynx Aviation, Inc., d/b/a Frontier Airlines a waiver of the pre-operational ticket sales prohibitions of 14 CFR 201.5 to allow it to issue tickets and accept payments from prospective passengers prior to receiving effective Department authority. Our primary concern in acting on “pre-sale” requests such as that of Lynx is the protection of consumers’ expectations and their funds. Lynx has agreed to establish procedures designed to protect its prospective customers. Specifically, the company has agreed to: (1) advise each customer that it does not currently possess full authority to operate the services for which the ticket is being issued and will not have such authority until such time as it is issued by the Department; (2) ensure that if the air carrier does not have effective economic authority by its proposed start-up date, passengers are accommodated on a Frontier Airlines flight or a flight operated by a Frontier Airlines code-share partner; (3) advise each customer that he or she may obtain a full refund of the purchased ticket price, without penalty, if the customer requests the refund and cancels his or her reservation before Lynx commences revenue flight operations; (4) place all ticket sales proceeds (from both cash and credit card sales) into an escrow account; and (5) accommodate passengers, who, in their discretion, decline a refund if the flight reserved is not flown by either Lynx, Frontier Airlines, or a Frontier Airlines code-share partner, and elects to have Lynx find substitute air transportation for them. In addition, we are directing Lynx to advise our Air Carrier Fitness Division on August 15, 2007, of the status of its progress towards obtaining FAA certification. By: Todd Homan OST-2007-27074 - Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger September 12, 2007 Motion for Temporary Stay of Waiver of the Provisions of 14 CFR 201.5(a)(2) When Lynx filed its June 4, 2007 application for a waiver, it noted that the FAA had advised Lynx that it was working toward completing the certification that will allow Lynx to obtain full FAA approval prior to September 2007. Lynx has submitted to the FAA all information requested. Despite submission of information, the FAA certification process has taken longer than expected. As a result of FAA reviews and workload, Lynx will not be in a position to operate flights as originally planned. Therefore, Lynx will cease taking reservations to all markets at the present time. Instead, the "Lynx" routes will be operated by Frontier or through a Frontier partner. However, Lynx requests that it be allowed to resume the sale of tickets and acceptance of payment from prospective passengers once it has received confirmation of an updated certification date from the FAA. Lynx will notify the Department when the FAA advises it has a new certification timetable. The first Lynx markets placed on sale were Denver-Rapid City, Denver-Wichita and Denver-Sioux City. These markets were placed on sale on July 2, 2007 on the Frontier system. The Denver-Billings market was loaded as a Lynx market on August 19, 2007 and Denver-Albuquerque is currently served by Frontier and Republic Airlines. In the meantime, all passengers who have already bought tickets on Lynx routes will be accommodated by Frontier or through a Frontier partner -- including Horizon Air or Republic Airways. The passengers will be notified of this re-accommodation but will also be offered the option of a refunds All monies will be taken out of the escrow accounts and paid either to the carrier operating the flight or to the customer requesting a refund. Once Lynx notifies the Department that it has a projected certification date, as a condition of being allowed to resume the sale of tickets, Lynx will fully comply with the Department's June 29, 2007 Order (Order 2007-6-20) granting Lynx the waiver for pre-sale activities. Counsel: Wiley Rein, Edward Faberman, efaberman@wileyrein.com Order 2007-9-31 Issued and Served September 26, 2007 Order Staying Effectiveness of Waiver By this order, we are staying the effectiveness of the waiver granted to Lynx Aviation, Inc. d/b/a Frontier Airlines from section 201.5 of our rules. That waiver permits Lynx to issue tickets and accept payment from prospective passengers before being issued an effective certificate of public convenience and necessity from the Department. Lynx filed a motion requesting a temporary stay of its waiver from the provisions of 201.5(a). In support of its motion, Lynx states that its Federal Aviation Administration certification process has taken longer than expected and thus, it is not in a position to commence operations by September 2007, as originally planned. In light of these circumstances, Lynx intends to cease taking reservations in all markets at the present time and it states that all passengers already holding tickets for Lynx routes will be accommodated by Frontier or a Frontier partner. The air carrier also requests that it be permitted to resume the sale of tickets and acceptance of payments from prospective passengers once it has received confirmation of an updated certification date from the FAA. By: Todd Homan OST-2007-27074 - Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger
November 20, 2007 Lynx has had one change in key personnel. William McKinney will replace Randall Brink as Director of Operations. A copy of Mr. McKinney's resume is attached. Charts that include the Director of Operations position have also been modified and are attached. Counsel: Wiley Rein, Edward Faberman, efaberman@wileyrein.com
November 20, 2007 Motion to Reinstate the Waiver of the Provisions of 14 CFR 201.5(a)(2) On September 26, 2007, the Department of Transportation issued an Order (Order 2007-9-31) staying the effectiveness of a waiver granted to Lynx Aviation, Inc. d/b/a Frontier Airlines on June 29, 2007 from Section 201.5 of the Department's rules in order to allow it to issue tickets and accept payment from prospective passengers prior to obtaining authority from the Department. Lynx herewith moves that the Department reinstate the waiver granted in Order 2007-9-31. As a condition of being allowed to resume the sale of tickets, Lynx will fully comply with the Department's June 29, 2007 Order (Order 2007-6-20) granting Lynx the waiver for pre-sale activities. Lynx continues to meet all of the conditions listed in Order 2007-6-20 including maintaining an escrow account. Counsel: Wiley Rein, Edward Faberman, efaberman@wileyrein.com Order 2007-11-28 Issued and Served November 29, 2007 Order Reinstating Effectiveness of Waiver By this order, we reinstate the effectiveness of the waiver granted to Lynx Aviation, Inc. d/b/a Frontier Airlines from section 201.5 of our rules. That waiver permits Lynx to issue tickets and accept payment from prospective passengers before being issued an effective certificate of public convenience and necessity from the Department. The Department has consulted with the FAA on this matter, and the FAA has confirmed that Lynx is within two weeks of receiving its FAA certificate. Therefore, we find it appropriate to reinstate the waiver from 14 CFR 201.5 granted to Lynx by Order 2007-6-20 to permit the air carrier to issue tickets and accept payment from prospective passengers before being issued an effective certificate of public convenience and necessity from the Department. By: Todd Homan Order 2008-1-19 Issued and Served January 24, 2008 Order Confirming Oral Action and Issuing Effective Certificate By this order, we (1) confirm our oral action of December 6, 2007, making the certificate of public convenience and necessity issued to Lynx Aviation, Inc. d/b/a Frontier Airlines, for interstate scheduled passenger air transportation effective on that date, and (2) reissue Lynx's interstate scheduled certificate to reflect its effective date. Based on the information submitted by Lynx, we determined that the air carrier continued to be fit to provide interstate scheduled air transportation and concluded that there was no reason not to make Lynx's authority effective. Under these circumstance, on December 6, 2007, we orally advised Lynx that we were making its interstate scheduled authority effective on that date. By this order, we confirm that action and reissue to Lynx its interstate scheduled certificate to reflect its effective date. By: Todd Homan |
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