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OST-00-6962

The Flight International Group, Inc., Flight Alaska, Inc. and Yute Air Alaska, Inc.

Yute's certificate authorizes the carrier to engage in scheduled air transportation of persons, property and mail (See, Order 91-1-24, January 14, 1991). While Flight International, operating as Yute under authority of the operating trustee, has temporarily suspended Yute's scheduled passenger service using single-engine aircraft while it stabilizes Yute's operation, Flight Alaska d/b/a Yute Air Alaska, as successor to Yute after the certificate transfer, will continue to offer on-demand passenger service and will re-institute scheduled passenger service at a later date. Thus, the applicants request the transfer of Yute's certificate authorizing the carrier to engage in interstate and overseas air transportation of persons, property and mail to Flight Alaska d/b/a Yute Air Alaska.

For reasons discussed below, the applicants request expedited action under subpart Q of the Department's procedural regulations (14 CFR section 302.1701 et. seq.) to provide for final Department action within 30 days.

Counsel:  Flight Alaska, Stephen Lachter, 202.862.4321 and Yute, Erik LeRoy, 907.277.2006

The Flight International Group, Inc., Flight Alaska, Inc. and Yute Air Alaska, Inc.

Counsel:  Artic, John Eckels

The Flight International Group, Inc., Flight Alaska, Inc. and Yute Air Alaska, Inc.

While we may have valid reason to question the Department's need for extensive additional information, we will comply with your request in order to move the process forward. The continued operations of Yute under the auspices of Flight Alaska unquestionably are in the public interest. Important competition in the State of Alaska, the jobs of current Yute employees, and the benefits of Yute's operations to the US Postal Service all are dependent upon prompt approval of the transfer by the Department. Indeed, the only answer to the joint application, filed by Arctic Transportation Services, one of Yute's competitors, did not oppose the application but merely opposed expedited treatment. That position was taken with the knowledge that in this case delay effectively amounts to disapproval and with it a reduction of actual competition in Alaska.

Counsel:  Flight Alaska, Stephen Lachter, 202.862.4321 and Yute, Erik LeRoy, 907.277.2006

The Flight International Group, Inc., Flight Alaska, Inc. and Yute Air Alaska, Inc.

Counsel:  Flight Alaska, Stephen Lachter, 202.862.4321

The Flight International Group, Inc., Flight Alaska, Inc. and Yute Air Alaska, Inc.

Counsel:  Artic, John Eckels

The Flight International Group, Inc., Flight Alaska, Inc. and Yute Air Alaska, Inc.

If Yute's certificate is transferred to Flight Alaska, the company intends to continue to provide the all-cargo operations presently conducted by Yute using two Casa 212s, with a payload capacity of 4,800 pounds each, and two Piper PA-32s and eight Cessna 206s and 207s aircraft, with a payload capacity of 900-1,100 pounds each. The company intends to focus its operations around the delivery of mail tendered by the U.S. Postal Service at five primary regional hubs: Bethel, Aniak, Dillingham, King Salmon, and Kotzebue. From these hubs, Flight Alaska will transport mail to over 70 villages within Alaska. In addition, Flight Alaska will provide charter services from Anchorage to various lodges around the state and on behalf of the U.S. Forestry Service. While these operations are currently all being conducted by Yute, Flight Alaska intends to improve the company's utilization of its aircraft and work actively towards expanding its core business, in particular the Cessna operations.

By this order, we (1) find that Flight Alaska, Inc. d/b/a Yute Air Alaska (Flight Alaska) is a citizen of the United States and is "fit, willing, and able" to conduct interstate scheduled air transportation of property and mail, and (2) transfer and reissue to Flight Alaska the section 41102 certificate authority held by Yute Air Alaska (Yute), subject to various limitations.

By:  Bradley Mims

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