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Ogden Flight Services Group, Inc.

Hereby applies for a certificate of public convenience and necessity to engage in foreign charter air transportation of persons, property and mail.

Docket OST-01-9311

Counsel:  Zuckert Scoutt, Malcolm Benge, 202.298.8660

Ogden Flight Services Group, Inc.

On June 18, 2002, I sent you an e-mail requesting that Ogden Flight Services Group, Inc. provide updated fitness information at the same time as it filed information on certain board-related changes that had occurred. In early August, you notified Department staff that there had been further changes to OFSG's board of directors. Based on the information you submitted, it now appears that OFSG may be under the control of its non-U.S. citizen owner.

While we realize that OFSG desires to correct the current situation and to allow OFSG to continue to pursue its outstanding certificate applications, we must ask that OFSG quickly resolve these issues.  As you know, it is not the Department's policy to keep incomplete applications open indefinitely. It has been over 1-1/2 years since OFSG filed its initial application for certificate authority, and over 2-1/2 months since our last information request. Therefore, unless OFSG provides information regarding its ownership and board changes which clearly establishes that it is under U.S. ownership and control, as well as the information requested in the referenced June 18 e-mail within 15 days of the date of this letter, we intend to dismiss OFSG's applications without further notice. Further, because the information we now have indicates that OFSG does not meet the citizenship requirements of section 41102, if OFSG does not, at a minimum, timely file information on its ownership and board of directors which establishes that the company now meets our citizenship requirement, we will have no choice but to begin steps to revoke the company's current air taxi authority due to lack of U.S. citizenship.

By: Janet Davis

Ogden Flight Services Group, Inc.

On June 18, 2002, I sent you an e-mail requesting that Ogden Flight Services Group, Inc. (OFSG) provide updated fitness information at the same time as it filed information on certain board-related changes that had occurred. In early August, you notified Department staff that there had been further changes to OFSG's board of directors. Based on the information you submitted, it now appears that OFSG may be under the control of its non-U.S. citizen owner.

By:  Air Carrier Fitness, Janet Davis

Ogden Flight Services Group, Inc.

We are currently reviewing this information. However, we will need some additional and/or clarifying information before we can reach a tentative decision as to OFSG's citizenship and fitness. Therefore, we ask that you respond fully to each of the items below within 14 days of the date of this letter.

Based on the information provided thus far, it appears that Mr. Antoniadis is the beneficial owner of 75 percent of OFSG stock (through his ownership in Rigi Holdings which in turn holds a 75 percent interest in OHI, the parent of OFSG). If this is accurate, why does Mr. Antoniadis state in response to item 3 of his DOT Compliance Questionnaire (OFSG-S801) that he holds no stock in "FSG"? [Note: The applicant has routinely referred to itself as Flight Services Group (that is, FSG), rather than by its corporate name Ogden Flight Services Group (that is, OFSG).]

By: Janet Davis

Ogden Flight Services Group, Inc.

The purpose of this letter is twofold: the first is to notify you of our intended ruling on your requests for confidential treatment of various documents filed in support of OFSG's applications; the second is to request additional clarifying information with respect to these applications.  

We disagree, however, with your argument that release of OFSG's bank verification statement would put it at a competitive disadvantage. It is the Department's practice to release all such third-party verification, absent such sensitive details as account numbers. The bank documents for which confidential treatment is sought do not contain account numbers. Further, we note that information has been placed on the public record regarding the amount of OFSG's current assets (separately identifying its cash balance) and the amount of OFSG's available funding from a deposit paid by FSG PrivatAir pursuant to its B737 Aircraft Management Agreement. In addition, you have not indicated why OFSG should be treated differently than any other applicant for certificate authority. Therefore, we intend to deny confidential treatment to Exhibits OFSG-S506 and OFSG-S804.

By: Patricia Thomas

August 1, 2003

OST-01-9311 - Certificate of Public Convenience and Necessity
OST-01-11235 - Foreign Certificate of Public Convenience and Necessity

Re: Request for Additional Information

In our June 9 letter, we requested information on how many dollars OFSG had paid to FSG PrivatAir during the past two calendar years. In response, OFSG, on page 5, stated that "the Department may assume that, other than these personnel-related expenses, and insurance and audit expenses, the profit and loss statements submitted as OFSG-S9 11 show expense items that were paid to FSG PrivatAir." Unfortunately, I am not clear on what numbers shown in the referenced exhibit are personnel-related. Therefore, please revise OFSG-S911 to separately breakout and identify all personnelrelated expenses contained in this exhibit, which were : paid to FSG PrivatAir.

By: Janet Davis

OST-01-9311 - Interstate Certificate
OST-01-11235 - Foreign Certificate

January 22, 2004

Re: Request for Additional Information

According to an October 13, 2003, article in The Palm Beach Post, PrivatAir, the Swiss-based 25 percent owner of OFSG, is providing charter operations within the United States. [The noted article specifically discusses a flight between West Palm Beach and Tallahassee.] Given that PrivatAir is a foreign air carrier, such operations would be against our regulations. Therefore, please explain how these operations are being conducted by PrivatAir, including how customers for these services are solicited.

In Supplement 6 to its applications, OFSG stated that the funds used by Rigi Holdings, LLC, to purchase its ownership interest in OFSG's parent (Operator Holding, Inc.) was obtained, in the form of a loan, from Atlantic Bank of New York. Further, OFSG stated that this loan bears a variable interest rate (beginning at 5.25 percent) and is payable on demand. We have learned that Atlantic Bank of New York is a wholly owned subsidiary of the National Bank of Greece. Because of this, and our citizenship requirements, we will require that a copy of the loan documents be supplied for our review. Also, please indicate whether members of the Latsis family, the Latsis Group, or any company owned by either of these parties, hold an ownership interest in the National Bank of Greece, and, if so, the percentage of ownership interest held.

By: Air Carrier Fitness, Janet Davis

OST-01-9311 - Interstate Certificate
OST-01-11235 - Foreign Certificate

July 29, 2004

Re: Request for Additional Information

As you know, the Department requested a meeting with OFSG after having reexamined the various filings made by the company in support if its applications. As we advised you at that meeting, based on the record before us, we are unable to determine whether OFSG meets the Department's citizenship requirements. During our discussion, you indicated that some of our understandings as to the relationship between OFSG and FSG PrivatAir/PrivatAir were incorrect, particularly as they relate to OFSG's reliance on FSG PrivatAir for aircraft, marketing, maintenance, operations, and administrative support.

In an attempt to resolve this matter, we have attached a request for additional information. We ask that you respond fully to this request within 30 days of the date of this letter, and provide any other information in support of your position that OFSG is under the actual control of U.S. citizens.

By: Air Carrier Fitness, Patricia Thomas

OST-01-9311 - Interstate Certificate
OST-01-11235 - Foreign Certificate

September 7, 2004

Application to Amend Its Pending Applications and Register Name Change

Requests that the Department register its new name "Flight Services Group, Inc." and amend its current applications pending before the Department to reflect OFSG's new name.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660, mlbenge@zsrlaw.com

September 7, 2004

Supplement No. 13 to Application

By letter dated July 27, 2004, the Department has requested certain additional information in connection with the pending application of Ogden Flight Services Group, Inc. for a certificate of public convenience and necessity to engage in interstate charter air transportation filed in this docket on March 31, 2001.

• Exhibits

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660, mlbenge@zsrlaw.com

September 7, 2004

Motion for Rule 12 Confidential Treatment

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660, mlbenge@zsrlaw.com

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