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Updated: Tuesday, April 8, 2008 9:12 AM


Taga Air Charter Service


Taga Air Charter Service, Inc.

OST-2006-25577 - Commuter Air Carrier Authority

August 8, 2006

Application for Commuter Air Carrier Authority - Bookmarked

Taga Air Charter Service submits this application for authority to operate scheduled passenger service as a commuter air carrier under section 41738 of Title 49 of the United States Code 41738.

Applicant requests authority to engage in scheduled passenger operations as a commuter and proposes to operate between the islands of the Northern Mariana Islands, Saipan, Tinian and Rota, eventually expanding to include service to Guam. There are currently three Piper PA-32-300 Cherokees on our certificate. An additional Cherokee and a Cessna 402 will be added prior to beginning service.

Counsel: Alfred Yue, 670-488-9989, tagair.doo@pticom.com


OST-2006-25577 - Commuter Air Carrier Authority

September 8, 2006

Request for Additional Information

We have completed our initial review of the application filed on August 8, 2006, by Taga Air Charter Service, Inc. for determination of its fitness to conduct scheduled passenger operations as a commuter air carrier.

This review has revealed the need fix bdditional and/or clarifying information before we can complete processing of Taga Air’s application.

  1. General Information
  2. Ownership
  3. Managment and Key Technical Personnel
  4. Financial Position and Operating Plans
  5. Compliance Disposition

By: Air Carrier Fitness, Ronale Taylor


OST-2006-25577 - Commuter Air Carrier Authority

October 19, 2006

Re: Additional Information Request - Bookmarked

  1. General Information
  2. Ownership
  3. Management and Key Technical Personnel
  4. Financial Position and Operating Plans
  5. Compliance Disposition

By: Taga, Alfred Yue


OST-1995-236 - Warsaw Liability Limitations

October 23, 2006

Warsaw Agreement

By: Taga, Alfred Yue


OST-2006-25577 - Commuter Air Carrier Authority

November 4, 2006

Stock Transfer Agreements

Please find enclosed copies of stock transfer agreements as requested by Ms. Ronale Taylor with regards to our pending application before the DOT.

By: Taga, Ronald Catto


OST-2006-25577 - Commuter Air Carrier Authority

November 15, 2006

Additional Information Request

  1. General Information
  2. Ownership
  3. Management and Key Technical Personnel
  4. Financial Position and Operating Plans
  5. Compliance Disposition

By: Air Carrier Fitness Division, Ronale Taylor


OST-2006-25577 - Commuter Air Carrier Authority

December 14, 2006

Re: Information Response - Bookmarked

In analyzing the fitness of Taga Air to operate as a commuter we recognize that the Department requires a fill explanation of the relationship between Taga and TDHC. Taga is a stand alone entity, with US citizen shareholders and US citizen operational control of the company. The way that Taga operations are currently structured, most of our customers are the international customers of TDHC. They arrive in Saipan and Taga transports them to the hotel resort on Tinian.. Without question, our relationship with TDHC is critical to the financial viability of Taga. Conversely, TDHC considers Taga to be crucial to its' viability, TDHC needs Taga to get their customers to the hotel resort. In addition to the international airline flights arriving in Saipan every day, TDHC charters four B737 flights weekly from China Southern Airlines exclusively for resort guests. As Taga is currently structured, the majority of the resort guests must travel to Tinian by ferry. The ferries carry up to 320 passengers but they are very expensive to operate. Air service is more efficient and more cost effective. In the future, TDHC would like to curtail the ferry business and redirect most of the current ferry business to Taga Air. This explains TDHC interest in the viability of Taga Air.

Taga is applying for commuter authority for three main reasons. One, the ability to 'sell' individual seats as opposed to chartering whole airplanes gives us much more flexibility in our operations. Second, we would like to develop local business, independent of TDHC and 'selling' seats on a scheduled basis is the only way that we can develop that side of our business. Thirdly, there is a new casino resort approved for construction on Tinian and Taga would like to be in a position to service them properly.

By: Taga, Alfred Yue


OST-2006-25577 - Commuter Air Carrier Authority

February 21, 2007

Additional Information Request

We have reviewed the supplemental information filed by Taga Air Charter Service, Inc. on December 14, 2006, supporting its application for a determination of its fitness to conduct scheduled passenger operations as a commuter air carrier. Based on our review, we are concerned that U.S. citizens may not control Taga Air, as required by statute.

We will provide to Taga Air a further opportunity to address our concerns. We therefore direct the company to respond to the enclosed information request within 14 days of the date of this letter.

By: Air Carrier Fitness Division, William Bertram


OST-2006-25577 - Commuter Air Carrier Authority

March 2, 2007

Re: Response to Request for Additional Information - Bookmarked

  1. Citizenship
  2. Status of Loan and Line-of-Credit
  3. Change of Shareholders and Change of Directors
  4. Stock Transfer Agreement
  5. Resumes of Officials
  6. Assumption of Pre-Operating Expenses Associated with the Purchase of New Aircraft in July 2007
  7. Financial Information

By: Taga, Alfred Yue


OST-2006-25577 - Commuter Air Carrier Authority

June 1, 2007

Re: Additional Resume for Review

In complying with Ms. Ronale Taylor's request, please find enclosed two copies of Taga Air's new Director of Maintenance, Mr. Timothy R. Lynaugh's Resume for your review, evaluation and records. Mr. Lynaugh has also been approved by Mr. Richard P. Nelson, Principal Maintenance Inspector of the Honolulu FAA Flight Standards District Office.

By: Taga, Don Roney, 671-433-9989, tagaair.doo@pticom.com


OST-2006-25577 - Commuter Air Carrier Authority

July 11, 2007

Email Message - DOT Request for Additional Information

The show cause order is still in review by the Department; however, we need the complete ownership structure of Hong Kong Entertainment (Overseas) Investment, Ltd. and Tinian Dynasty Hotel & Casino. In addition, please provide a list of the customers Taga Air serves. You may provide your response in Docket OST-2006-25577.

By: Air Carrier Fitness, Ronale Taylor, 202-493-0157


OST-2006-25577 - Commuter Air Carrier Authority

July 25, 2007

Re: Information Request

  1. According to your Corporate Structure chart, Hong Kong Entertainment (Overseas) Entertainment, Ltd. (HKEO) is ultimately owned by individual shareholders through its ownership in Tinian Dynasty Investments Limited (TDTL) and Tinian Dynasty Holdings Limited (TDHL). Is this assumption correct?
  2. What percentage of ownership does TDIL, and TDHL each hold in HKOE?
  3. What percentage of ownership does each individual shareholder hold in HKOE?
  4. You provided a list of shareholders of TDHL, but you failed to include the citizenship of each individual. Please provide the citizenship of each shareholder.
  5. Who are the shareholders of TDTL? Please include the percentage held and each individual's citizenship.
  6. How is HKOE related to Tinian Dynasty Hotel & Casino (TDI-IC)? Who owns TDI-IC?

By: Air Carrier Fitness, Ronale Taylor


OST-2006-25577 - Commuter Air Carrier Authority

July 27, 2007

Re: Additional Information

  1. Customers
  2. Ownership
  3. Shareholders
  4. Business Relationships

By: Taga, Don Roney, 670-433-9989, tagaair.doo@pticom.com


Order 2007-12-11
OST-2006-25577 - Commuter Air Carrier Authority

Issued and Served December 17, 2007

Order to Show Cause Proposing to Deny Application and to Cancel Air Taxi Operating Authority | Word

Based on our review of the record in this case, we tentatively find that Taga Air Charter Service, Inc., an operating air taxi, is under the actual control of Hong Kong Entertainment (Overseas) Investment, Ltd. d/b/a Tinian Dynasty Hotel & Casino, a company incorporated under the laws of the Commonwealth of the Northern Mariana Islands, that is ultimately owned and controlled by Tinian Dynasty Holdings Limited, a British Virgin Island entity, whose ownership is, in turn, majority held by Mr. Michael Kwan Man (60.6 percent), a Hong Kong citizen.  This finding is based on the totality of the circumstances, including the operational and managerial interrelationships between Taga Air and TDHC and the financial dependency of Taga Air on TDHC and/or Mr. Kwan, and the ownership structure of TDHC.  Therefore, by this order, we propose to conclude that Taga Air is not a U.S. citizen as defined in 49 U.S.C. § 40102(a)(15) and consequently, propose to deny its application for commuter authority under 49 U.S.C. § 41738 and terminate its air taxi authority.

By: Andrew Steinberg


OST-2006-25577 - Commuter Air Carrier Authority - Northern Mariana Islands-Guam

January 16, 2008

Motion for Extension of Time

By Order 2007-12-11, served December 17, 2007, the Department tentatively concluded that Taga Air Charter Service, Inc. is not a U.S. citizen as defined in 49 U.S.C. § 401 02(a)(15), and, as a result, proposed to deny its application for commuter authority and terminate its existing air taxi authority. Objections to the Department's tentative conclusions are due by January 16, 2008. Taga Air respectfully moves for a 30-day extension of time to file objections, through February 15, 2008. Taga Air requires this additional time to finalize certain ownership and management changes it has recently initiated, and to submit updated information to the Department documenting these changes. The Company remains committed to providing its vital air taxi services within the Commonwealth of the Northern Mariana Islands and to gaining commuter authority. Accordingly, it has undertaken significant measures to address fully the Department's concerns with respect to its U.S. citizenship.

Counsel: Hogan & Hartson, George Carneal, 202-637-6546, gucarneal@hhlaw.com


OST-2006-25577 - Commuter Air Carrier Authority - Northern Mariana Islands-Guam

Served January 17, 2008

Notice Extending Time to File Objection to Order 2007-12-11 | Word

On January 16, 2008, Taga Air filed a motion requesting that the Department extend the due date for objections to Order 2007-12-11, to February 15, 2008. In support of its request, Taga Air states that the additional time requested would allow the company additional time to submit to the Department detailed and thorough responses describing its full compliance with the variety of issues regarding its citizenship raised in that order. Taga Air stated that it has initiated several steps to address the Department’s concerns and plans to provide the Department with updated fitness information no later than February 15, 2008.

Under these circumstances, we have determined it appropriate to grant Taga Air the extension it requested and extend the date for interested parties to file answers to the company’s objection. Therefore, we are extending the objection period to Order 2007-12-11 to February 15, 2008, and the period for the filing of answers to objections to February 26, 2008.

By: Todd Homan



OST-2006-25577 - Commuter Air Carrier Authority

February 14, 2008

Updated Information, Objection to Revocation of Air Taxi Authority and Motion to Dismiss Application for Commuter Authority

Taga Air has undergone a change in ownership, elected new officers and directors, and settled debt, all of which enable the Company to demonstrate conclusively that it is a U.S. citizen.

In light of the Company's new ownership and control structure, the Department does not have grounds to finalize its tentative decision to revoke Taga Air's exemption authority as an air taxi operator based on citizenship concerns. The restructured Company is owned and actually controlled by U.S. citizens. It is vital that its air taxi registration and exemption authority under 49 U.S.C. § 40109(f) and 14 C.F.R. Part 298 remain in effect so that the newly structured Taga Air is able to maintain its ongoing air taxi services between points in the Commonwealth of the Northern Mariana Islands, and to introduce expanded services in the future that are being planned by the Company's new owners and directors.

Based on an evaluation of the Company's existing resources, the new owners, officers and directors of Taga Air have determined that it would be appropriate to suspend the Company's pursuit of commuter authority until a later date. Accordingly, the Company hereby withdraws its pending commuter air carrier application, and moves for dismissal of the application without prejudice to re-filing at such a time as the Company has developed sufficient resources and drawn up an adequate business plan in support of such expanded services.

Counsel: Hogan & Hartson, George Carneal, 202-637-6546, gucarneal@hhlaw.com



OST-2006-25577 - Commuter Air Carrier Authority - Northern Mariana Islands-Guam

February 22, 2008

Re: DOT Request for Additional Information

  1. Amended By-Laws
  2. Key Management and Technical Personnel
  3. Citizenship Affidavits
  4. Financial Information

By: Air Carrier Fitness Division, Ronale Taylor



OST-2006-25577 - Commuter Air Carrier Authority

March 14, 2008

Re: Ownership Affidavit

That, he (Don Roney) has submitted his official resignation from TACS in his capacities of Director of Operations, General Manager, and Agent for Service; said resignation is effective at 23:59, March 31, 2008.

That, Affiant, as TACS General Manager and Director of Operations, is confident in his conclusion that TACS is now and will in the future be pervasively controlled by a non-U.S. Citizen through and by Alfred Yue, Robert Christian. Shaun Christian, and Donna Christian.

By: Don Roney



OST-2006-25577 - Commuter Air Carrier Authority

March 21, 2008

Re: Resignation Letter of Don Roney

Please enter into the Docket related to DOT Show Cause Order 2007-12-11 for TACS dated December 17th 2007 the following:

My "AFFIDAVIT" dated 15 March 2008 and My "Revised Lettter of Resignation from TACS " to POI David B. Lusk, dated March 17, 2008, with an effective resignation date of 23:59 hours March 17, 2008.

These are significant documents with relevancy to this case, and should be reviewed and considered by the DOT prior to March 23, 2008.

By: Don G Roney, Former Director of Operations



OST-2006-25577 - Commuter Air Carrier Authority

March 24, 2008

Re: Letter from Chief Pilot

The below email was received today March 20th approx. 17:30 hours recently "resigned" Chief Pilot of TACS. This is very significant and relevant to the considerations regarding TACS "fitness" to retain its FAR Part 135 On Demand Taxi Authority, the decision date of which is March 23, 2008. Please enter this in the appropriate Docket given in the above subject.

By: Don Roney, Resigned Director of Operations



OST-2006-25577 - Commuter Air Carrier Authority

March 24, 2008

Motion for Extension of Time

Taga Air respectfully moves for a two-week extension of time, through April 7, 2008, to file updated information. For reasons unrelated to the Department's citizenship review, Taga Air suspended its flight operations on March 18, 2008. Officials of the Company are scheduled to meet with the Manager of the FAA Honolulu Flight Standards District Office later this week, which may result in the voluntary surrender of the Company's FAA certificate at that time.

The Company will notify the Department of the results of its meetings with the FAA. If the Company surrenders its certificate to the FAA, its air taxi registration may then be cancelled and the question of Taga Air's citizenship would be moot. However, because the situation remains in flux, Taga Air is unable to provide a conclusive report at this time concerning the status of the Company and its certificate. A two-week extension of time to allow the situation to play out would not be contrary to the public interest, especially given that Taga Air has ceased its flight operations and expects to surrender its certificate in the near future.

Counsel: Hogan & Hartson, George Carneal, 202-637-6546, gucarneal@hhlaw.com



OST-2006-25577 - Commuter Air Carrier Authority

Served March 31, 2008

Notice of Extension of Time to File Responses

On February 14, 2008, Taga Air filed an objection to the Department's tentative decision to cancel its air taxi operating authority. In its objection, the air carrier stated that it had undergone a change in ownership, elected new officers and directors, and settled its debt, demonstrating that it is a U.S. citizen.

Although Taga Air provided information regarding its recent ownership change, the Department, by letter dated February 22, 2008, requested additional and/or clarifying information to enable it to complete its citizenship determination. In that letter, the Department provided Taga Air until March 24, 2008, to submit the requested information.

On March 24, 2008, Taga Air filed a motion requesting that the Department grant it a two-week extension, that is, until April 7, 2008, to submit updated information and a conclusive report on the status of the company and its Air Carrier Certificate issued by the Federal Aviation Administration. According to the air carrier, Taga Air ceased all operations on March 18, 2008, and is scheduled to meet with the FAA in the near future, which may consequently, result in the voluntarily surrender of Taga Air's Air Carrier Certificate issued by the FAA.

In light of the above, the Department finds it appropriate to grant Taga Air's request. We remind Taga Air that under our regulations it may not conduct any operations until its citizenship has been determined by the Department. The Department's decision to grant Taga Air an extension is predicated upon the receipt of Taga Air's acceptance of this condition; Taga Air has until 5:00 p.m. on April 2, 2008, to accept.

Should Taga Air fail to provide (1) satisfactory information to enable the Department to determine its citizenship, and (2) copies of any decisions made by the FAA regarding its current Air Carrier Certificate and Operations Specifications, the Department intends to make final its tentative findings and conclusions as set forth in Order 2007-12-11, and revoke Taga Air's air taxi authority for failure to comply with the Statute's citizenship requirements, which apply to all U.S. air carriers, including air taxi operators.

By: Michael Reynolds


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