Home | OST Filings by Number | OST Orders and Notices | OST Filings by Carrier
OST Filings by Proceeding | OST Filings by Day | Office of Intl Aviation Filings by Carrier | Office of Intl Filings by Day

OST-99-5062

Daystar Airways, Ltd.

OST-99-5062	February 2, 1999	Application for a Certificate of Public Convenience and Necessity	Certificate of Public Convenience and Necessity
		Service List
		Affidavit of Allen Haddadi
		Exhibit A:  Index of Regulatory Requirements
		Exhibit B:  Affidavit of Citizenship
		Exhibit C:  Biographies of Key Personnel, including stock ownership
		Exhibit D:  Historical Financial Statements
		Exhibit E:  Description of Current Fleet
		Exhibit F:  Affidavit of Aircraft Compliance
		Exhibit G:  Authorities Currently Held
		Exhibit H:  Map of Area to Be Served
		Exhibit I:  Illustrative Service Proposal and Fuel Use Estimate
		Exhibit J:  Forecast Financial Results
		Exhibit K:  Corporate Certification
		Exhibit L:  Agreement 18900
		Exhibit M:  Article from Airways magazine, August, 1997 issue

Daystar was formed with the intent of providing scheduled air service between the islands of Nevis and St. Kitts, which together form the Federation of St. Christopher and Nevis. The island of St. Kitts receives scheduled air service from several carriers at the Basseterre airport, which has an 8,000' runway. The primary service at St. Kitts is American Eagle, which provides service to the U.S. points of San Juan, PR, and St. Thomas, USVI with ATR-42 and ATR-72 aircraft. Until recently, the Newcastle Airport, which serves Nevis, had a runway of only 2,000. This precluded service by larger aircraft, and necessitated service by aircraft such as the Islander.  In 1994, Daystar requested information about applying for a certificate of public convenience and necessity from the U.S. Department of Transportation. Daystar is a U.S. carrier, and holds an Air Carrier Operating Certificate from the F.A.A.. The goal of gaining D.O.T. certification was to enable interline ticketing and baggage agreements with scheduled carriers serving St. Kitts, and American Airlines in particular. The response from the Office of Aviation Analysis in 1994 was that operations strictly between two points in a foreign country did not constitute "air transportation" within the meaning of the governing statute and regulations. Unless "air transportation" as so defined was involved, a certificate would not be issued.

In fall, 1998, a second letter was received from the Office of Aviation Analysis. This letter stated than Daystar was a U.S. air carrier, and was engaged in scheduled air service. The letter went on the say that approval by the U.S.D.O.T. is required in order to engage in scheduled service. According to the Director of Office of Aviation Analysis, the second letter was sent at the request of Assistant General Counsel Sam Podberesky. Mr. Podberesky said that his request was based on an opinion by the international division that Daystar was holding itself out for business in the United States by virtue of its Internet web site, and that it was assumed that more than a de minimus amount of Daystar's traffic was U.S. in origin or destination.

Daystar proposes to provide air service as described herein with aircraft currently in its fleet, including Britten-Norman BN-2 "Islander" aircraft

By:  Allen Haddadi, President, Daystar, 869.469.9065

Daystar Airways, Ltd.

OST-99-5062

May 12, 1999

Additional Information

Certificate - Interstate Scheduled Air Transportation

By:  Hank Myers, M & C Transportation Management Support

Daystar Airways, Ltd. d/b/a Navis Express

Order 99-8-16 OST-99-5062

Issued August 19, 1999 Served August 23, 1999

Order to Show Cause

Foreign Scheduled Combination Service

Order 99-8-16, tentatively finds that Daystar Airways, Ltd. d/b/a Navis Express is a citizen of the United States and is fit, willing, and able to provide foreign scheduled air transportation of persons, property, and mail using aircraft with no more than nine passenger seats and should be issued a certificate of public convenience and necessary for such operations. 

Daystar was formed with the intent of providing scheduled air service between the islands of Nevis and St. Kitts, which together form the Federation of St. Christopher and Nevis. The island of St. Kitts receives scheduled air service from several carriers at the Basseterre airport, which has an 8,000' runway. The primary service at St. Kitts is American Eagle, which provides service to the U.S. points of San Juan, PR, and St. Thomas, USVI with ATR-42 and ATR-72 aircraft. Until recently, the Newcastle Airport, which serves Nevis, had a runway of only 2,000. This precluded service by larger aircraft, and necessitated service by aircraft such as the Islander. In 1994, Daystar requested information about applying for a certificate of public convenience and necessity from the U.S. Department of Transportation. Daystar is a U.S. carrier, and holds an Air Carrier Operating Certificate from the F.A.A.. The goal of gaining D.O.T. certification was to enable interline ticketing and baggage agreements with scheduled carriers serving St. Kitts, and American Airlines in particular

By:  Bradley Mims

Daystar Airways, Ltd. d/b/a Nevis Express

Order 99-10-18, finds that Daystar Airways, Ltd. d/b/a Nevis Express is fit, willing, and able to engage in foreign scheduled air transportation of persons, property, and mail, using aircraft with no more than nine passenger seats.

By:  Bradley Mims

Daystar Airways, Ltd. d/b/a Nevis Express

Order 2000-10-28 is staying for a period of up to 30 days the effectiveness of the section 41102 certificate issued to Daystar Airways, Ltd. d/b/a Nevis Express authorizing it to engage in foreign scheduled air transportation of persons, property, and mail.

By:  Randall Bennett

Daystar Airways, Ltd. d/b/a Nevis Express

By:  Randall Bennett

Daystar Airways, Ltd. d/b/a Nevis Express

On April 9, 2001, a question arose whether operating the Beechcraft 1900 was inconsistent with Daystar's certificate conditions limiting it to use of aircraft with a maximum passenger capacity of nine or less in scheduled service. Daystar currently operates a fleet of Britten-Norman Islander aircraft, which have two engines and nine installed passenger seats. Daystar operates under F.A.R. 135, which limits it to operation of aircraft with a maximum passenger capacity of nine. Daystar is approved for multiengine operations, and has all required personnel to operate multi-engine aircraft in scheduled service.

The proposed operation of the Beechcraft 1900 is not a substantial change within the terms of 14 CFR 204. It does not involve a change from all-cargo to passenger service, from short haul to long haul, or from small aircraft to large aircraft. Daystar has been operating in scheduled service with 9 passenger aircraft, and is well aware of the demands of the market and operating requirements. Operation of the Beechcraft 1900 will not require any change in key personnel.

Daystar proposes to operate the Beechcraft between San Juan, PR and the islands of Nevis and St. Kitts. This is authority currently held and used by Daystar. There is no change from small aircraft to large aircraft, or from short haul to long haul operations. The only difference is that the Beechcraft is more expensive to lease and operate than current aircraft, but has significantly higher revenue earning potential as well. The F.A.A. and D.O.T. have approved all current key personnel for the Beechcraft operation. The F.A.A. is currently completing changes in the Operations Specifications of Daystar to allow operations of the Beechcraft under Far 135.

Counsel:  Daystar Airways, Allen Haddadi

Daystar Airways, Ltd. d/b/a Nevis Express

Daystar, a small air carrier based in Nevis, West Indies, holds a certificate to engage in foreign scheduled passenger air transportation between points in the United States and Nevis and St. Kitts, West Indies.' Daystar's certificate limits the carrier to operations with aircraft designed to have a maximum passenger seating capacity of no more than nine seats. It currently operates three nine-seat BN-2 Islander aircraft.

On April 12, 2001, Daystar filed an application for an exemption to allow it to deviate from its certificate conditions in order to conduct a portion of its scheduled operations with one Beechcraft 1900 aircraft. Daystar states that, although the Beechcraft 1900 aircraft is designed to be operated with up to 19 passenger seats, it intends to configure its aircraft with only nine seats to remain within the certificate limitations imposed upon it and within the restrictions of its Federal Aviation Administration Part 135 certificate.

Because Daystar wanted to operate aircraft designed to hold more than nine seats, it could not do so under the limitations imposed in its certificate, thus the need for the requested exemption. After receipt of Daystar's request, we contacted the FAA who advised us that Daystar's key personnel were fully qualified and capable of conducting operations with the Beechcraft 1900 aircraft, and that it had amended the carrier's Operations Specifications to allow it to operate that aircraft under Part 135 with nine seats. As a result of that advice and based on the updated fitness information filed by the carrier, we decided to allow Daystar to operate the Beechcraft with nine seats. We orally advised the carrier of this decision on May 18, 2001, which we confirm here. However, rather than grant the carrier's exemption request, we have decided to reissue Daystar's certificate to replace its current certificate condition with a provision authorizing Daystar to use any aircraft that can be operated under its Part 135 certificate. That will allow the carrier additional flexibility if it wants to operate other such aircraft. Should Daystar subsequently desire to acquire and operate larger aircraft that would require certification from the FAA under Part 121, the carrier must first be determined fit for such operations.

By:  Randall Bennett

Daystar Airways, Ltd. d/b/a Nevis Express

Daystar holds a certificate of public convenience and necessity for Route 786, which authorizes transportation between a point or points in the United States and the islands of St. Kitts and Nevis, West Indies.  Subsequent to activating its authority and providing air service over the route, Daystar petitioned the Department of Transportation for designation to provide air service between the United States and the Caribbean points of: the Dominican Republic, St. Maarten, Antigua, Anguilla and Barbados.  Upon recommendation by the Department of Transportation, the U.S. Department of State did designate Daystar as a U.S. carrier between the United States and the Dominican Republic, Antigua, Anguilla and Barbados.  Under the terms of the “open skies” agreement between the United States and the Netherlands Antilles, all certificated U.S. carriers are designated, and no separate designation is necessary. 

By:  Daystar, Allen Haddadi, 869.469.9065

Daystar Airways, Ltd. d/b/a Nevis Express

Further to our telcon this date, the following information would help us to process your application to amend your certificate to add points to route 786.

• 1. Updated financials for Daystar/Nevis to include a balance sheet and income statement dated 31 March 2002.
• 2. A very brief summary of your current operations including, number of aircraft together with their passenger seats. Please indicate if there has been any change to your operation plan from the information you supplied to this Division in your first your first year progress report dated 10 April 2002.
• 3. Brief bios for Mr. Rafael Facundo (Director of Operations) and Mr. Francis Rodriguez (Chief Inspector). Also, please identify any other new key management/technical personnel not identified in your first year progress report.
• 4. State if Daystar/Nevis has undergone any ownership changes since your first year progress report was prepared and the citizenship of any new owners.

By:  Howard Serig

Daystar Airways, Ltd.

Financial results reconstructed from data files of Daystar are attached as "daystar financial.xls" It shows that Daystar has a substantial working capital surplus.       The current operations consist of one Beechcraft 1900 with nine installed passenger seats and two Britten-Norman Islanders with nine installed passenger seats. All operations are under FAR 135. The Beechcraft service operates between San Juan, PR and St. Kitts and Nevis. The Britten-Norman aircraft operate between St. Kitts and Nevis, and are used for charter service. There has been no change in the operational plan of Daystar, and it has adequate aircraft, personnel and funding to operate the proposed service. The biography of Mr. Facundo has been provided. Attached are the biographies of Edgardo Cobian, Chief Pilot, and Giovanni Scuotto, Chief Inspector.

By:  Daystar

Daystar Airways, Ltd.

Additional Information of Daystar Airways, Ltd. to Data Request of Air Carrier Fitness.  Financial results reconstructed from data files of Daystar are attached as "daystar financial.xls" It shows that Daystar has a substantial working capital surplus.  

The current operations consist of one Beechcraft 1900 with nine installed passenger seats and two Britten-Norman Islanders with nine installed passenger seats. All operations are under FAR 135. The Beechcraft service operates between San Juan, PR and St. Kitts and Nevis. The Britten-Norman aircraft operate between St. Kitts and Nevis, and are used for charter service. There has been no change in the operational plan of Daystar, and it has adequate aircraft, personnel and funding to operate the proposed service.

The biography of Mr. Facundo has been provided. Attached are the biographies of Edgardo Cobian, Chief Pilot, and Giovanni Scuotto, Chief Inspector.

By: Hank Myers

Daystar Airways, Ltd. d/b/a Nevis Express

For the past several weeks, Howard Serig of my office has been attempting to contact you regarding the application of Daystar Airways, Ltd. d/b/a Nevis Express in Docket OST­99-5062 to add points to its current certificated route. On October 10, we requested an updated balance sheet and income statement for Daystar dated within the previous three months, as well as information on any additional changes that have occurred, or are likely to occur in the near future, in areas affecting its fitness. At that time, you also indicated that Daystar would be filing an amendment to its application to include Tortola as an additional point. To date, however, this additional information has not been filed, and, as a result, we are unable to proceed with the application. In a related matter, we have been advised by the FAA that it was no longer processing Daystar's Part 121 application because the applicant did not supply the necessary information.

By:  Air Carrier Fitness, Patricia Thomas

Daystar Airways, Ltd. d/b/a Nevis Express

Hereby withdraws its application to amend its certificate of public convenience and necessity to include authority between various foreign points in the Caribbean and the United States filed April 15, 2002. When it became clear in October that the certification sought would not be complete in time for the Caribbean tourist season, Daystar examined its options for continued Beech 1900 service. It engaged in discussions with other air carriers with lower operating costs to determine what other options would be available to begin service in a timely fashion at lower operating costs, and examined the traffic available for this season. At this time, there are no options for expanding the service under the operational control of Daystar.

Daystar has temporarily suspended its service between San Juan and St. Kitts/Nevis, and operates the shuttle service between St. Kitts and Nevis for which it was originally certificated in 1999. Daystar is using Britten-Norman Islander aircraft already in its fleet. Sean Henville has been named as Director of Operations and Chief Pilot, and this change has been accepted by the F.A.A. Daystar continues to maintain an office in San Juan, and continues to hold an Air Carrier Operating Certificate from the Federal Aviation Administration with Operations Specifications authorizing scheduled service. Essentially, Daystar is operating the same service with the same aircraft and personnel as it was before July 5^th, 2001, the startup of Beech 1900 service.

By: Allen Haddadi, 869 469-9755

Daystar Airways, Ltd.

On April 15, 2002, Daystar submitted an application in Docket OST 99-5062 to amend its certificate to include the additional points of the Dominican Republic, Antigua, Anguilla, Barbados, and the Netherland Antilles. Daystar supplemented its application with additional information on September 30 and again on October 15. On December 2, 2002, Daystar advised us that, due to operational and market conditions, it was withdrawing the application.

By: Randall Bennett

OST-99-5062 - Certificate of Public Convenience and Necessity

December 19, 2003

Re: Fitness Determination

Although over nine months have elapsed since Daystar's cessation of operations, to date, the company has not provided any indication that it has resolved the issues that led to the revocation of its FAA certificate, or that it plans to resume operations. Therefore, unless Daystar intends to resume its certificated operations on or before March 7, 2004, we intend to revoke the carrier's authority without further notice. Of course, any such action on our part would be without prejudice to Daystar filing for a new certificate at any time thereafter. You should be aware that such waivers are not granted routinely, but only where "good cause" is shown. In showing good cause, Daystar would have to provide adequate evidence that it still meets the Department's fitness criteria and that it has completed nearly all of the steps to commence operations (e.g., has the necessary personnel, financial resources, and aircraft, and that it is well advanced in its FAA certification process). Any such waiver request would have to be filed with the Department of Transportation Dockets section (art original and 7 copies, accompanied by a $280 filing fee) and received before March 7, 2004.

By: Office of Aviation Analysis, Patricia Thomas

OST-99-5062 - Certificate - Interstate Scheduled Air Transportation

January 8, 2004

Re: Response to DOT Letter | Word

On April 04, 2003, Daystar settled with the Federal Aviation Administration (FAA) on the Emergency Order of Revocation issued on March 7, 2003 and the Order was amended to an Emergency Order of Suspension until such a time that Daystar establishes a principal base of operations. The word “revocation” in the DOT letter dated December 19, 2003 should therefore be replaced with the word “suspension” in reference to the FAA order. Daystar hereby requests a 90 days extension from January 22,2004 to April 22, 2004 to file for fitness determination with the DOT.

By: Allen Haddadi

OST-99-5062 - Certificate - Interstate Scheduled Air Transportation

January 30, 2004

Re: Request for Extension

As we stated in our letter of December 19, in order for the Department to consider granting Daystar's request for an extension, we must have clear evidence that there is "good cause" for doing so. By "good cause" we mean that Daystar would have to provide adequate evidence that it still meets the Department's fitness criteria and that it has completed nearly all of the steps to recommence operations (e. g., has the necessary personnel, financial resources, and aircraft, and that it is well advanced in its FAA recertification process).

However, based on our recent communications with the FAA, it does not appear that Daystar has made much progress toward resuming operations as a certificated air carrier. The San Juan Flight Standards District Office (FSDO) that oversees Daystar's operations states that you have not taken the compliance actions deemed necessary by the FAA to restore Daystar's operating authority. In fact, the San Juan FSDO informs us that you have not communicated with them in some time. As a result, Daystar's FAA certificate is now classified as "inactive." Moreover, you provided no information with your extension request on any steps that you have taken to enable Daystar to resume operations or that would otherwise enable us to determine that Daystar continues to be fit to hold its DOT certificate.

By: Air Carrier Fitness, Patricia Thomas

OST-99-5062 - Certificate of Public Convenience and Necessity

March 26, 2004

Re: Letter Denying Request for Extension

Daystar Airways, Ltd., d/b/a Nevis Express holds a certificate of public convenience and necessity issued by Order 2001-5-29 authorizing it to engage in scheduled foreign air transportation between the U.S., on the one hand, and the islands of St. Kitts and Nevis, on the other. As you know, the carrier's authority to operate under this certificate was suspended as of March 7, 2003, when the FAA suspended the company's FAA air carrier certificate. Under section 204.7 of our rules (14 CFR 204.7), Daystar had one year from the date of its cessation, that is, until March 7, 2004, to have its fitness redetermined and resume its certificated operations; if it did not, its authority was subject to revocation by the Department at that time.

On January 8, 2004, Daystar requested a 90-day extension of the revocation-for-dormancy date. By letter dated January 30, 2004, we deferred action on Daystar's request. In doing so, we noted that such extensions are only granted upon a showing of "good cause" and that Daystar's application contained no information establishing good cause. Specifically, Daystar had provided no information describing steps the carrier was taking to resume operations, including reactivation of its FAA authority, nor had it demonstrated that the carrier continued to be fit. Moreover, the extension request contained no other information that supported grant of the requested relief. We advised Daystar, however, that if it could provide such information prior to March 7, we would consider that additional information before reaching a final decision on Daystar's extension request and the revocation of its certificate. To date, we have received no further information from Daystar.

Under the circumstances, we conclude that Daystar has not established "good cause" for the Department to extend the carrier's certificate authority. By this letter, then, we are denying Daystar's January 8th request for an extension of its March 7 revocation-for-dormancy date. An order revoking the carrier's authority for dormancy will be issued separately.

By: Air Carrier Fitness, Patricia Thomas

Daystar Airways, Ltd. d/b/a Nevis Express

Order 04-06-02
OST-99-5062 - Certificate of Public Convenience and Necessity

Issued June 1, 2004 | Served June 8, 2004

Order Revoking Foreign Certificate

By this order, we revoke for reason of dormancy the foreign scheduled air transportation certificate issued to Daystar Airways, Ltd., d/b/a Nevis Express.

By: Randall Bennett

Home | OST Filings by Number | OST Orders and Notices | OST Filings by Carrier
OST Filings by Proceeding | OST Filings by Day | Office of Intl Aviation Filings by Carrier | Office of Intl Filings by Day