OST-95-677
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OST-95-677
Falcon Air Express, Inc. (Amend Certificate of Public Convenience and Necessity, Add Additional Aircraft)
OST-95-676 and 95-677 | June 6, 1997
Application
to Amend Certificate of Public Convenience and Necessity
Falcon Air has been approached by foreign carrier from an FAAdetermined "Category II" country, which is unable to operate aircraft to the U.S. in its own right, and is therefore required by the FAA to wet lease aircraft from operators such as Falcon Air. This foreign air carrier, Aeropostal,3 operates a substantial fleet of DC-9 and MD-80 passenger aircraft in domestic operations within Venezuela and in international operations from Venezuela to other countries. Because of the FAA's Category II determination for Venezuela, Aeropostal cannot recommence its authorized U.S.-Venezuela scheduled operations with its own aircraft and it therefore requires a U.S. direct air carrier to operate its scheduled operations between Venezuela and the United States, with two (2) aircraft, each for over 200 hours per month for a term of one (1) year, renewable each year.
Exhibit FAE 1 – Profit & Loss 1/96 to 2/97 | Exhibit FAE 2 – Letter from Aeropostal | FAE 3 – Profit Loss Projection 3rd Aircraft | FAE 4 – Balance Sheet for 1/96 to 2/97 | FAE 5 – Letter from Pelican Courier Express | Service List
Answers are due by July 4, 1997
Counsel: Pierre Murphy, Elizabeth Collins, 202-872-1679
OST-97-2592, OST-96-676, OST-96-677 | July 17, 1997
Re: Falcon
Air Express, Letter from Air Carrier Fitness to Counsel
We have reviewed the financial information you have submitted relative to Falcon's applications in Dockets OST-95-676, OST-95-677, and OST-97-2592 as well as other financial information available to us, in particular, the June 30 and December 31, 1996, Form 41 balance sheets and six-months statements of operations. This review has uncovered several inconsistencies and/or entries for which there is no apparent explanation. As a result, it is not clear to what extent the financial statements accurately reflect the current and historical operating results and financial position of the company. In order for us to fully assess Falcon's financial position, and thus make an informed decision on its ability to support the operation of additional aircraft, it is important that these inconsistencies/entries be satisfactorily explained.
By: Delores King, Air Carrier Fitness Division
Falcon Air Express, Inc. (Certificate of Public Convenience Amendment)
OST-95-676, 95-677 and 97-2592 | July 29, 1997
Pursuant to the Terms, Conditions and Limitations of the Certificate of Public Convenience and Necessity for Falcon Air Express, Inc. ("Falcon"), enclosed in Orders 96-2-34 and 96-3-8, and pursuant to 14 C.F.R. §204.5, Falcon hereby notifies the Department of the pendency of a DOT enforcement proceeding against Falcon. The current status of the proceeding is as follows: on Thursday, July 24, 1997, the undersigned was served with a letter from the Of flee of the General Counsel, notifying us of enforcement action and attaching a draft of a Consent Order. A response to the letter is requested by Friday, August 8, 1997.
Counsel: Pierre Murphy, Elizabeth Collins, 202-872-1679
OST-95-676 | OST-95-677 | OST-97-2592 | September 4, 1997
Letter In Support of Application to Amend Certificate of Public
Convenience and Necessity
Enclosed for filing please find an original plus six (6) copies of a letter to Ms. Delores King of the Air Carrier Fitness Division for inclusion in the above-referenced dockets, not in Dockets OST-95-976 and OST-95-977 as stated in the letter. This letter and its exhibits are being filed in support of Falcon Air Express, Inc.'s Application to Amend its Certificate of Public Convenience and Necessity, filed herein on June 6, 1997.
Service List | Appendices: Answer | Financials | InterJet Letter | Letter of Intent | Specifications | Wiring | Aeropostal
Counsel: Pierre Murphy, 202 872 1679
OST-95-676 | OST-95-677 | OST-97-2592 | September 5, 1997
Re: Letter in Support of Application to Amend Certificate of
Public Convenience and Necessity
This letter and its exhibits are being filed in support of Falcon Air Express, Inc.'s Application to Amend its Certificate of Public Convenience and Necessity, filed herein on June 6, 1997.
Attachments: Letter to OIA | Affidavits | Resumes | Statement of Outstanding Judgements | Statement of Actions
Statement of Pending Investigations | Statement of Unfair Practices | Statement of Aircraft Incidents | Canada Service List
Counsel: Elizabeth Murphy, 202 872 1679
Falcon Air Express, Inc. (exhibits in support of Application to Amend Certificate of Public Convenience and Necessity)
OST-95-676 | OST-95-677 | OST-97-2592 | September 9, 1997
Re: Financial Statements December 31, 1996
In Falcon Air Express, Inc. Financial Statements December 31, 1996, an exhibit to the August 29, 1997 letter to Ms. Delores King of the Air Carrier Fitness Division, a copy of which was filed herein on September 4, 1997. This exhibit was inadvertently omitted from the September 4, 1997 Docket filing. This exhibit is being filed in support of Falcon Air Express, Inc.'s Application to Amend its Certificate of Public Convenience and Necessity, filed herein on June 6, 1997.
Attachments: Financial Statistics for 1996 | Un-Audited Statements for 1997 | Service List
Counsel: Pierre Murphy, 202 872 1679
Falcon Air Express, Inc. (Amendment to Certificate of Public Convenience)
Order 97-10-6 | OST-95-676 and OST-95-677 | OST-97-2592 | Issued and Served October 7, 1997
Order Granting Exemption and Deferring Action
We grant Falcon Air Express, Inc., an exemption from the terms and conditions of its certificates of public convenience and necessity to the extent necessary to increase its aircraft fleet up to a total of four aircraft.
We have also decided to defer for at least an additional six months action on the carrier's request that the aircraft limitation currently contained in its certificates be eliminated in its entirety. We do so out of concern about the carrier's aforementioned FAA problem and its past failure to properly meet our reporting requirements.It does appear that Falcon has taken steps to rectify its past reporting problems. To this end, in addition to hiring Ms. Perez as its Vice President-Finance, the company's outside accountant has also conducted an audit of Falcon's financial position at December 31, 1996, and has worked with Ms. Perez and Falcon to ensure the accuracy of its current and future financial statements. That step is an important factor in our willingness to grant the exemption we are conferring in this order. Over the coming months, we intend to monitor Falcon's conduct, particularly with respect to our reporting requirements, as well as its operating experience with the additional aircraft authorized here, before deciding whether or not to remove or modify the aircraft fleet limitation contained in its certificate.
By: John Coleman
Falcon Air Express, Inc. (Amend Certificate of Public Convenience)
OST-95-676 | OST-95-677 | OST-97-2592 | October 21, 1997
Attachments: Andrew A. Alston - Director of Safety
Counsel: Pierre Murphy, Elizabeth Collins, 202-872-1679, ecollins@lopmurphy.com
OST-95-676 | OST-95-677 | OST-97-2592 | January 29, 1998
Pursuant to the Terms, Conditions and Limitations of Falcon Air Express, Inc.'s ( 'Falcon") Certificate of Public Convenience and Necessity enclosed in Order 96-2-34, Falcon hereby notifies the Department that Mr. John F. Rupert has been appointed Director of Operations. In accordance with 14 C.F.R. §204.5 of the Department's Regulations, attached please find the following documents for filing:
Counsel: Pierre Muprhy, Elizabeth Collins, 202-872-1679
OST-95-676 | OST-95-677 | May 6, 1998
On November 4, 1996 and June 6, 1997, Falcon requested that the Department lift the aircraft restriction included in its Certificate of Public Convenience and Necessity, enclosed in Orders 96-2-34 and 96-3-8. By Order 97-2-5, issued February 10, 1997, the Department granted Falcon an exemption authorizing it to operate one (1) additional aircraft, bringing Falcon's fleet to a total of two (2) aircraft. By Order 97- 10-6, issued October 7, 1997, the Department granted Falcon an exemption authorizing it to operate an additional two (2) aircraft, bringing Falcon's fleet to a total of four (4) aircraft. Falcon shall soon be operating all four (4) aircraft.
Counsel: Pierre Murphy, Elizabeth Collins, 202-872,1679, ecollins@lopmurphy.com
OST-95-676 | OST-95-677 | OST-97-2592 | June 25, 1998
Re: Certificate of Public Convenience
Pursuant to the Terms, Conditions and Limitations of Falcon Air Express, Inc.'s ("Falcon") Certificate of Public Convenience and Necessity enclosed in Order 96-2-34, Falcon hereby notifies the Department that Capt. Rafael E. Chirino has replaced Dave Whitman as Chief Pilot and Francisco J. Cuadrado has replaced Jose Talentto as Director of Quality Control.
Counsel: Pierre Murphy, Elizabeth Collins, 202-872-1679
| OST-95-676 OST-95-677 |
October 15, 1998 | Withdrawal of Application to Amend Certificate of Public
Convenience and Necessity |
Additional Aircraft |
Falcon Air Express, Inc. respectfully requests that the Department withdraw without prejudice its pending application to Amend its Certificate of Public Convenience and Necessity, originally issued by Orders 96-3-8 and 96-3-56 to the extent necessary to lift the current one (1) aircraft limitation for domestic and international charter and sub-service transportation.
Counsel: Pierre Murphy, Elizabeth Collins, 202-872-1679
| Order 98-11-6 OST-95-676 OST-95-677 |
Issued November 9, 1998 Served November 12, 1998 |
Order Dismissing Applications |
Additional Aircraft |
| Service List |
On October 15, 1998, Falcon advised the Department that it wished to withdraw its applications for amendment of its certificates at this time. We will grant Falcon's request without prejudice to the carrier's filing a new application at some future date. Nothing in our action here precludes Falcon from operating the four aircraft previously authorized by exemption.
By: John Coleman
| Order 00-11-15 OST-95-676 OST-95-677 OST-00-7916 |
Issued November 14, 2000 Served November 15, 2000 |
Order Granting Exemption and Reissuing Certificates | U.S.- Venezuela |
| Attachments: Certificates of Public Convenience and Necessity | |||
| Service List |
On September 11, 2000, Falcon filed an application in Docket OST-00-7916 requesting authority to add another two aircraft to its fleet. In this connection, the company advises that it intends to use these two additional aircraft to provide sub-service flights between the U.S. and Venezuela for Aeropostal Alas de Venezuela, C.A. (Aeropostal). Falcon states that it has made arrangements to lease the two additional aircraft and is hiring and training needed additional operational personnel. The company further advises that the terms of its arrangements with Aeropostal, including initial deposits and minimum operational guarantees, should provide the carrier with sufficient revenues to cover the operating expenses for the two aircraft.
We have contacted the FAA about Falcon's proposed fleet expansion and been advised that that agency is working with the carrier to add the aircraft to Falcon's FAA operating certificate. While the carrier's current weak financial position is of some concern to us, we note that the company has received an advance payment from Aeropostal which Falcon states will cover the costs of initiating its services with the two additional aircraft, and we would expect that the guarantees in Falcon's contract with Aeropostal should provide sufficient funds to cover Falcon's expenses under the contract. Moreover, the additional revenues from this operation should help improve the carrier's overall financial position.
In a related matter, we are taking this opportunity to reissue Falcon's interstate and foreign certificates to remove the one-aircraft restrictions contained therein. We have already authorized the carrier by exemption to operate four aircraft, and by this order we are authorizing it to add another two aircraft to its fleet. Thus, the one-aircraft restriction contained in Falcon's current certificates is now outdated. Instead, so that we can continue to monitor the carrier's fitness should it wish to expand its operations further, we will impose a reporting requirement similar to that imposed on other new entrant carriers, directing Falcon to advise us at least 45 days prior to any planned expansion of its operations beyond six aircraft and to demonstrate its fitness to operate such aircraft prior to the commencement of such expanded operations. This change will alleviate the need for Falcon to file exemption requests whenever it wishes to expand its fleet of aircraft.
By: Randall Bennett
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