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Linea Aerea Puertorriquena, Inc.

Linea Aerea Puertorriquena, Inc. will operate a Boeing 727-200 aircraft in its Air Carrier Certificate in accordance with the requirements of Part 1191121 operations.  The company will operate the aircraft as indicated in section 9 of this application. Training will be conducted under contract with Pan Am Flight Academy Facilities at Miami, Florida. The aircraft will be maintained by contract with Arrow Air at Miami, Florida for inspections and Linea Aerea Puertorriquena will provide routine maintenance in San Juan, Puerto Rico. The Company maintains a principal base of operations at San Juan Airport, CAS Building, San Juan P.R.. The primary routes for operations will be between San Juan, Puerto Rico and Miami and non-scheduled operations in other areas of the Caribbean.

By:  Luis Irizarry, Aviation Consultant, 787.752.7621

On February 21, 2002, you filed on behalf of Linea Aerea Puertorriquefa, Inc. an application seeking interstate charter authority. However, a review of this application indicates that LAP intends to conduct some scheduled passenger operations. (See for example, item 11 on page 3 of the application where it is stated that "all required materials for schedule service will be submitted to the FAA, " and page 2 of Exhibit 7 where it is stated that "The primary routes for operations will be between San Juan, Puerto Rico and Miami and non-scheduled operations in other areas of the Caribbean. ")          If LAP does indeed intend to conduct scheduled passenger operations as indicated in its filing, it will need to amend its current application accordingly. If LAP does not amend its interstate application to seek scheduled certificate authority, it must file a separate foreign charter certificate application if it intends to conduct nonscheduled operations to points not in the U.S. or its territories.

By:  Janet Davis

As you can see from Exhibit 7, we are not going to offer scheduled service. Three (3) or four (4) flights a week, conducted on a charter basis, will be sufficiently profitable because most of our flights will be paid according to total occupancy. (If you look at the daily utilization of Carriers like Express One, Falcon Air and others, you will see that they only operate 1 or 2 flights a day and they have been successful. Our Miami Flights have been used as an example of weekly and monthly utilization, due to the fact that our charters are on demand land it is impossible to predict our destinations). For our hypothetical example we used Bonilla Travel, an agency who anticipate using our services at least three (3) times a week. (see commitment letter). I'd accept your invitation to come up with a business plan that demands greater utilization of equipment and personnel - if I believed that this utilization would increase earnings in the long run. In my experience, other business's that have utilized these methods have eventually lost operational control, and ultimately fail. It is reasonable to me that a low utilization rate can be maintained over a sustained period.

For example: Pan Am Airways, Eastern Airlines and even American Airlines are struggling, in part, because of their using this strategy (high utilization), particularly in view of the challenges currently facing the airline industry. However, companies such as American Trans Air, Delta Airlines and some smaller operator's have overcome the hardships.

By:  Luis Irizarry, Aviation Consultant, 787.752.7621, irizarry@icepr.com

On April 30, 2002, you filed a response to the Department's March 26 letter requesting additional and/or clarifying information in support of the certificate application of Linea Aerea Puertorriquena, Inc. (LAP) in Docket OST-02-11658. I have reviewed the information filed and, unfortunately, find that I will require additional information/clarification. Therefore, I ask that you respond fully to the attached Information Request within 30 days of the date of this letter. To the extent that this information is related to, or arises from your prior response to, my earlier information request, I have organized this request in similar manner, first noting the earlier request in bold and then placing my current request immediately thereafter. Please note, in those cases where LAP's response to the earlier request was adequate or did not raise additional questions, I have noted such by the notation "Prior Response Adequate." To the extent that this Information Request asks for information not directly related to my earlier request, these requests are placed at the end of the relevant sections.

By:  Janet Davis

Counsel: Irizarry, Luis Irizarry, 787 752-7621

As we have previously stated, we believe that LAP may have underestimated both its pre-operating and first year expenses. However, given the detailed explanations provided, together with LAP's revised forecasts, we may accept these forecasts as reasonable for the operations proposed. Should we do so, however, any authority that may be issued to LAP will be restricted to a single B727 aircraft and may also be further restricted to a limit on flight hours or markets.

By:  Air Carrier Fitness, Janet Davis

It is not strange the several persons will be named with the same names, this is one of those cases. The "Luis Perez" mentioned in the article is not the same "Luis A. Perez" in this application. The person involved in the mentioned accident was Mr. Luis Heriberto Perez, (see exhibit 1). The person in this application is Mr. Luis Antonio Perez. There is not relation between them, there is not relation between the person involved in the accident and the person involved in this application.

Counsel Luis A. Irizarry, 787-752-7621

On February 10, 2003, you filed additional information in support of the certificate application of Linea Aerea Puertorriquena, Inc. in Docket OST-02-11658. However, this information did not completely respond to our January 14, 2003, information request. Therefore, I must again request that you supply additional information before the Department can complete processing of LAP's application.

By: Janet Davis

April 25, 2003

Response to Requested Additional Information

Submits this response to additional information to its application for a certificate of public convenience and necessity authorizing Interstate Charter Air Transportation of persons, property and mail pursuant

Counsel: Luis Irizarry, 787-752-7621

Order 2003-5-37
OST-2002-11658 - Interstate Certificate of Charter Air Transportation (Puerto Rico)

Issued and Served May 30, 2003

Order to Show Cause Proposing Issuance of Certificate Authority

If granted the certificate authority it seeks, LAP proposes to operate a single leased 167-seat B-727 to conduct interstate charter passenger operations. During its first year of operations, LAP anticipates that it will conduct charter operations totaling 384 flights and approximately 902 block hours. It has based this estimate on the assumption that its operations will primarily consist of charter service between San Juan, Miami, and Orlando conducted on behalf of various tour operators.

Based on its forecast operations, LAP estimates that its first year operating expenses will total approximately $3.33 million and that it will incur $655,000 in pre-operating expenses. Therefore, based on the information before us, LAP will need approximately $1.49 million in funds to meet our financial fitness criteria.

By: Read C. Van de Water

Order 2003-6-22
OST-2002-11658 - Interstate Certificate of Charter Air Transportation (Puerto Rico)

Issued June 16, 2003 | Served June 17, 2003

Final Order | Word

By Order 2003-5-37, issued May 30, 2003, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated in it and award a certificate of public convenience and necessity to LInea Aérea Puertorriquefla, Inc., authorizing it to engage in interstate charter air transportation of persons, property, and mail. Interested persons were given 14 calendar days to file objections to the order.

By: Read C. Van de Water

Order 2003-6-22
OST-2002-11658 - Interstate Certificate of Charter Air Transportation (Puerto Rico)

Issed June 17, 2003 | Served June 24, 2003

Erratum Order | Word

By Order 2003-6-22, issued June 16, 2003, the Department finalized its tentative findings and conclusions stated in Order 2003-5-37 and awarded a certificate of public convenience and necessity to LInea Aérea Puertorriquefla, Inc. However, Order 2003-6-22 and the attached certificate were signed by Read C. Van de Water, the Department's former Assistant Secretary for Aviation and International Affairs. While approved prior to her departure, the issue date of the order came after her departure. To correct the timing problem, we are reissuing Order 2003-6-22 under the signature of the current decision maker. A corrected Final Order and certificate are attached.

By: Michael Reynolds

July 16, 2003

Request for Additional Information

We have recently learned that the funding plan presented to us, and upon which our finding of LAP's financial fitness was based, is no longer in existence. Specifically, we have received a copy of a letter dated July 14 from Mr. Roberto Rodriguez to the FAA in which Mr. Rodriguez advises that neither he nor his company, Roblex Aviation, will continue to support LAP's certification efforts. As a result, we no longer have any evidence that LAP will have funding available to support its planned operations.

By: Patricia Thomas

June 14, 2004

Re: Response to Requested Additional Information

Linea Aerea Puertorriquena, Inc., submits this response to additional information to its application for a certificate of public convenience and necessity authorizing Interstate Charter Air Transportation of persons, property and mail pursuant to section 41 02 of Title 49 of the United States Code, 14 C.F.R. 201 and 204.

By: Luis Irizarry, 787-752-7621

June 14, 2004

Application of Linea Aerea Puertorriquena

Linea Aerea Puertorriquena, Inc., submits this application for a waiver from the revocation for dormancy provisions of 14 CFR so that it may resume air transportation operations.

The Puerto Rico Development Bank has evaluated the proposed project during one year and has advise verbally that they will provide a written notification to LAP that they has granted $832,991.00. The written notification will be available by June 21, 2004, which at that time the notification will be presented to the Department. If information is needed, please contact the persons indicated in exhibit 9.

By: Luis Irizarry, 787-752-7621

July 7, 2004

Re: Request for Additional Information

Based on the circumstances noted above, it does not appear that LAP is close to commencing operations. However, we are willing to give LAP an opportunity to address the aforementioned issues and confirm that it has made substantial progress towards obtaining FAA certification. If this confirmation is not received and LAP is unable to provide verification of a new financing plan with sufficient funds to enable it to begin operating within 21 days of the date of this letter, we intend to proceed with the revocation of the company's certificate authority for reason of dormancy. Should LAP wish to commence operations at a later date, it would need to file a new application for certificate authority.

By: Patricia Thomas

July 23, 2004

Response to Requested Additional Information

We will not tolerate that people misuse or waste our efforts after have invest more than 5 years to obtain a well gained permission from you. We do not deal in any fraudulent manner and as you saw on the last page, we are taking measures even in a personal level to remain together with the law and with you. Due to the fact of the severity of those arguments we preferred to remain silence, even when Mr. Rodriguez send that letter trying to jeopardize the certification process.

At this moment we are demonstrating you that we not only have the financial resources, even more, we own truck, baggage cars, pallets cars, tractors, starting plants, maintenance vehicles, office equipment, computers, reservation programs, airports facilities including counter to serve the public with contract for 3 years, airplane deposit, and pilots training rooms.

By: Luis Perez

September 20, 2004

Re: Request for Additional Information

By: Air Carrier Fitness, Patricia Thomas

December 14, 2004

Response to Requested Additional Information

By: Luis Irizarry, 787-752-7621

Order 2005-1-15
OST-2002-11658 - Interstate Certificate of Charter Air Transportation (Puerto Rico)

Issued and Served January 21, 2005

Order Denying Extension and Revoking Certificate Authority | Word

By this order, we (1) deny the request of Línea Aérea Puertorriqueña, Inc. for an extension of its waiver from section 204.7 of the Department’s Aviation Economic Regulations (14 CFR 204.7), and (2) revoke the interstate charter passenger certificate issued to LAP for reason of dormancy.

By: Randall Bennett

February 2, 2005

Motion Assuming the Legal Representation of Petitioner

Counsel: Troncoso & Schell, Richard Schell-Asad, 787-722-0741, rschell@troncosolaw.com

February 2, 2005

Motion for the Setting of a Meeting

Counsel: Troncoso & Schell, Richard Schell-Asad, 787-722-0741, rschell@troncosolaw.com

February 2, 2005

Request for Review of Order Denying Extension and Revoking Certificate Authority

Counsel: Troncoso & Schell, Richard Schell-Asad, 787-722-0741, rschell@troncosolaw.com

February 2, 2005

Motion Submitting Evidence of Linea Aerea Puertorriquena's Economic Capacity to Operate

Counsel: Troncoso and Schell, Richard Schell-Asad, 787-722-0741, rschell@troncosolaw.com

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