ost972592

OST-97-2592

Falcon Air Express, Inc. (Exemption, Add Additional Aircraft)

OST-97-2592 | June 6, 1997

Application for an Exemption and Motion for Immediate Action and Waiver of the Answer Period

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Falcon Air Express, Inc. ("Falcon Air") seeks exemption authority pursuant to 49 U.S. C. §40109 to add an additional two (2) aircraft pending action on its application filed contemporaneously in Dockets OST-95-676 and OST-95-677. Falcon Air possesses the necessary managerial and financial disposition to expand its operations to meet the immediate need for additional domestic and international charter air service and sub-service and has provided the Department with financial information regarding the success of Falcon Air's ongoing operations to date.

Service List

Counsel: Pierre Murphy, Elizabeth Collins, 202-872-1679

Falcon Air Express, Inc.

OST-97-2592, OST-96-676, OST-96-677 | July 17, 1997

Re: Falcon Air Express, Letter from Air Carrier Fitness to Counsel

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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

Re: Falcon Air Express

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

Falcon Air Express, Inc.

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.

Counsel: Pierre Murphy, 202 872 1679

Falcon Air Express, Inc.

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.

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

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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

Re: Exhibits Filed in Support

Attachments: Andrew A. Alston - Director of Safety

Counsel: Pierre Murphy, Elizabeth Collins, 202-872-1679, ecollins@lopmurphy.com

Falcon Air Express, Inc.

OST-95-676 | OST-95-677 | OST-97-2592 | January 29, 1998

Re: Falcon Air Express

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:

1. Affidavit of Citizenship;
2. Resume;
3. §204.3(1) Statement of Outstanding Judgments in Excess of $5,000 (none);
4. §204.3(m) Statement of Actions and Outstanding Judgments of Less than 55,000 (none);
5. §204.3(o) Statement of Pending Investigations, Enforcement Actions and Formal Complaints (none);
6. 5204.3(p) Statement of Unfair, Deceptive or Anti-Competitive Business Practices (none);
7. §204.3(q) Statement of any Aircraft Accidents or Incidents (none).

Counsel: Pierre Muprhy, Elizabeth Collins, 202-872-1679

Falcon Air Express, Inc.

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.

Service List
Attachment 1: Application of Citizenship
Attachment 2: Resumeof Captain Rafael Chirino; Resume of Francisco Cuadrado
Attachment 3: Actions and Outstanding Judgments in Excess of $5,000
Attachment 4: Actions and Outstanding Judgments Less Than $5,000
Attachment 5: Pending Investigations Enforcement Actions and Formal Complaints
Attachment 6: Unfair. Deceptive or Anti-Competitive Business Practices
Attachment 7: Aircraft Accidents or Incidents

Counsel: Pierre Murphy, Elizabeth Collins, 202-872-1679