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OST-2003-14985

http://www.bmairways.com/


Boston-Maine Airways Corp.

OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations April 18, 2003 Application for Issuance of a Certificate of Public Convenience and Necessity Issuance of a Foreign Certificate of Public Convenience and Necessity
    BMA-100 - Proposed First-Year Foreign Flight Schedule  
    BMA-101 - First-Year Projected Traffic, Revenue, Operating Expenses, and Cash Flow Projection  
    BMA-102 - First-Year Projected Statistics and Fuel Consumption  
    BMA-103 - Projected Pre-operating Expenses  
    BMA-104 - BMAC Balance Sheet  
    BMA-105 - Verification of Working Capital Availability  
    BMA-106 - Financial Fitness Test Calculation  
    BMA-107 - Statement of Operations  
    BMA-108 - Summary of Aircraft Lease Terms  
    BMA-109 - Title 18 Certification  
    Service List  

BMAC hereby requests that it be issued a new Certificate of Public Convenience and Necessity of indefinite duration authorizing BMAC to engage in foreign air transportation of persons, property and mail utilizing large aircraft. BMAC specifically requests that it be granted authority to provide foreign air transportation between points in the United States and a point or points in Canada, Costa Rica, the Dominican Republic and Mexico.  BMAC's initial foreign large-aircraft operations will be limited to six city-pair markets: Manchester-San Jose, Manchester-Cancun, Orlando-San Jose, Orlando-Cancun, Orlando-Halifax and San Juan-Cancun. In addition, BMAC plans to carry 5th freedom traffic between Halifax and San Jose and between Halifax and Cancun on flights operated on a one-stop basis via Orlando. BMAC plans to operate two round trip flights a week in five of the foregoing city-pair markets, and one round trip flight a week between San Juan and Cancun, utilizing four B-727-200 aircraft (three in scheduled service, and one to fulfill spare and charter requirements) each configured to carry 141 passengers.

BMAC is an air carrier of persons, property and mail in interstate scheduled and charter air transportation, operating such services primarily in the eastern United States pursuant to an Interstate Certificate of Public Convenience and Necessity issued to BMAC by Order 2001-12-21, served December 27, 2001. That Certificate currently contains a condition limiting BMAC to small-aircraft (60 seats or fewer) operations. At this time, BMAC operates only the 19­passenger Jetstream 3100 turboprop aircraft in its passenger operations. In addition to its interstate operations, BMAC currently provides scheduled international services between Portsmouth, NH, Manchester, NH, Bangor, ME, St. John, NB and Halifax, NS in Canada, and will shortly be commencing service between San Juan, PR and Santo Domingo, Dominican Republic, utilizing the 19-passenger Jetstream 3100 pursuant to the blanket exemption authority granted by Section 206.5 of the DOT's Economic Regulations.  BMAC is a wholly-owned subsidiary of Pan American Airlines, Inc.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com 



April 28, 2003

Response of Air Line Pilots Association in Opposition to Application of Boston-Maine Airways for a Certificate Authorizing Foreign Large-Aircraft Operations

Respectfully files this response in opposition to the application of Boston-Maine Airways Corp. for a certificate of public convenience and necessity authorizing it to perform foreign air transportation utilizing large aircraft. In order to obtain such authority, BMAC must first persuade the Department to lift the limitation it imposed when it granted the carrier large-aircraft authority for its interstate operations, which restricts the carrier to operating only one large aircraft.

Counsel: ALPA, Jerry Anker



May 7, 2003

Reply of Boston-Maine Airways

For the reasons discussed below, BMAC submits that ALPA is seeking relief for its basic labor complaint in the wrong forum against the wrong party, and that ALPA's argument that BMAC is unfit to operate large aircraft is patently specious. BMAC urges the Department to again reject ALPA's repeated and transparently baseless opposition to BMAC's applications for authority to operate large aircraft.

Counsel: Zuckert Scoutt, Nathaniel Breed



OST-00-7668 - Certificate - Interstate Large-Aircraft Operations
OST-03-14985 - Certificate - Foreign Large-Aircraft Operations

July 9, 2003

Request for Additional Information

I am currently reviewing Supplement 6 to Boston-Maine's application in Docket OST-00-7668 (for interstate scheduled authority using large aircraft) and its application in Docket OST-03-14985 (for foreign scheduled authority using large aircraft), both filed April 18, 2003. As you know, while the Department's rules require that companies seeking both interstate and foreign certificate authority file separate applications, we do not evaluate these applications in a vacuum. Rather, we consider the fitness of the applicant to conduct all of the operations proposed in making our decision as to whether the requested certificate authority should be granted. In addition, since Boston-Maine has not yet had the single large aircraft authority previously granted made effective, our review of the carrier's fitness for the amended interstate and new foreign certificate authority it now seeks must also include these operations.

Therefore, we ask that Boston-Maine submit revised Exhibits BMA-S/6-1, BMA-S/6-2 (pages 1 and 3), BMA-S/6-3, BMA-S/6-4, and BMA-S/6-7 in Docket OST-00-7668, and revised Exhibits BMA-101 (pages 2 and 3), BMA-102, BMA-103, and BMA-106 in Docket OST-03-14985. These revised exhibits should reflect consolidated data for all of the large aircraft operations Boston-Maine intends to operate, both domestically and in foreign operations. In addition, so that our decision on Boston-Maine's requests may be based on the most recent information available, we ask that Boston-Maine provide updated information in support of its financial fitness. Specifically, Boston-Maine is requested to supply a detailed profit and loss statement reflecting its operations during the 12-months ended June 30, 2003, and a balance sheet as of that same date.

By: Janet Davis



OST-03-14985 - Certificate - Interstate Large-Aircraft Operations
OST-00-7668 - Certificate - Foreign Large-Aircraft Operations

July 10, 2003

Response of Air Carrier Fitness Division

We specifically ask that Boston-Maine elaborate on the reasons it believes that its current management team should be deemed capable of overseeing not only its on-going small aircraft operations, but also the seven large aircraft as well. As noted in my July 9 letter, we expect Boston-Maine to supply any supporting documentation, including resumes of any individuals hired to expand its large aircraft management capabilities, as well as any experience in large aircraft operations that has been gained by its previously identified team members since the date of Order 2002-12-20 (that is, December 27, 2002).

By: Janet A. Davis, 202-366-9721



July 17, 2003

Supplement No. 1 to Application for Amended Certificate Authority

Requests the Department to issue a new Certificate of Public Convenience and Necessity authorizing BMAC to provide foreign air transportation of persons, property and mail, utilizing both small and large aircraft, as requested in this application.

Exhibit BMA-S/1-1: First-Year Projected Traffic, Revenue and Expenses
Exhibit BMA-S/1-2: First-Year Projected Operating Statistics
Exhibit BMA-S/1-3: Projected Preoperating Expenses
Exhibit BMA-S/1-4: Financial Fitness Calculation
Exhibit BMA-S/1-5: Profit and Loss Statement for 12 Months Ended 6/30/03
Exhibit BMA-S/1-6: Balance Sheet as of 6/30/03
Exhibit BMA-S/1-7: Third-Party Verfication of Working Capital

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



OST-03-14985 - Certificate - Interstate Large-Aircraft Operations
OST-00-7668 - Certificate - Foreign Large-Aircraft Operations

July 29, 2003

Re: Information Request

With respect to the operations proposed in the Manchester-Orlando, Manchester-Myrtle Beach, and Myrtle Beach-Orlando markets, please explain why some of the flights in these markets are listed on your timetable (BMA-S/7-1) as scheduled service, while others are listed as charter service. Will the scheduled services be operated as Boston-Maine? Will the charter services be operated on behalf of a tour operator or another air carrier, or will they be direct sales charters? How do the flights listed in the noted markets relate to the operations recently announced by Pan Am (see enclosure) which appear will be operated on the same days of the week as the Boston-Maine flights?

By: Janet Davis, Air Carrier Fitness



August 8, 2003

Supplement No. 2 to Application

The sole purpose of this Supplement No. 2 is to furnish certain additional information in response to the request of the Department's Fitness Division as set forth in a letter to counsel for BMAC dated July 29, 2003. Concurrently herewith, BMAC is filing a Supplement No. 8 to its application for interstate large aircraft authority in Docket OST-00-7668. That filing contains BMAC's responses to each of the requests for information contained in the July 29' letter from the Fitness Division, together with information pertaining to two recently-hired operations management personnel. The information requested, and the fitness review at issue, are identically applicable to both BMAC's interstate and foreign large aircraft applications.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



OST-00-7668 - Certificate of Public Convenience for Interstate
OST-03-14985 - Foreign Certificate of Public Convenience

September 30, 2003

Re: Request for Additional Information

According to the Federal Aviation Administration (FAA), Boston-Maine's current Pre-application Statement of Intent shows its intent to add only one Boeing 727 (B-727) airplane. Has Boston-Maine requested FAA approval to operate a total of seven B-727 airplanes in domestic and foreign operations? If so, please provide a copy of the amended request, including the date that Boston-Maine submitted this request. If not, please indicate when Boston-Maine intends to submit its request and explain why Boston-Maine has not yet submitted it to FAA.

As we noted in our July 29, 2003, letter, several of Boston-Maine's senior management and technical personnel appear to have joined the company prior to its April 18, 2003, filings, yet Boston-Maine did not note these changes in those filings. In response to our questions regarding this matter, Boston-Maine stated that its failure to mention these changes was "an inadvertent oversight attributable to its primary focus on [its] first-year plan and related traffic, revenue, and expense projections in that [April 18] filing." We find this oversight troubling in that Boston-Maine was on notice through our discussion in Order 2002-12-20 that we had serious concerns regarding its managerial capabilities. Further, not only did Boston-Maine fail to advise us of changes it its management staff, but it specifically told us that no such changes had occurred. This "inadvertent oversight" by itself, therefore, raises additional concerns about Boston-Maine's managerial capabilities. Therefore, please identify the individual who was responsible for the portion of Boston-Maine's April 18, 2003, filing that dealt with its management and technical personnel and explain in detail why this individual did not know of the changes or did not believe it was necessary to advise us of them.

By: Air Carrier Fitness, Vanessa Wilkins



October 3, 2003

Supplement No. 3 to Application

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



OST-00-7668 - Certificate of Public Convenience for Interstate
OST-03-14985 - Foreign Certificate of Public Convenience

October 21, 2003

Correspondence from Office of Aviation Analysis

Correspondence from Office of Aviation Analysis informing Boston-Maine Airways that until FAA has authorized it to operate with any large aircraft, the Deparment will not be able to make its currrent interstate certificate effective for large aircraft operations. It may, at that time renew its requests for additional large aircraft authority.

By: Patricia Thomas



May 20, 2004

Supplement No. 4 to Application

The purpose of this Supplement No. 4 is to furnish certain updated fitness information in anticipation of imminent final action by the Department on BMAC's pending applications for authority to operate large aircraft in this proceeding and a concurrent related proceeding in Docket OST‑00‑7668.

Concurrently herewith, BMAC is filing a Supplement No. 10 to its application for interstate large aircraft authority in Docket OST‑00‑7668. That filing contains BMAC's submission of updated fitness information and exhibits relevant to the fitness‑determination issue involved in BMAC's application for authority to operate large aircraft. The foregoing information and exhibits, and the fitness review at issue, are identically applicable to both of BMAC's interstate and foreign large aircraft applications.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



June 17, 2004

Supplement No. 5 to Application

The purpose of this Supplement No. 5 is to furnish certain updated fitness information in anticipation of imminent final action by the Department on BMAC's pending applications for authority to operate large aircraft in this proceeding and a concurrent related proceeding in Docket OST‑00‑7668.

Concurrently herewith, BMAC is filing a Supplement No. 11 to its application for interstate large aircraft authority in Docket OST-00-7668. That filing contains BMAC's submission of certain additional updated fitness information and exhibits relevant to the fitness-determination issue involved in BMAC's application for authority to operate large aircraft. The foregoing information and exhibits, and the fitness review at issue, are identically applicable to both of BMAC's interstate and foreign large aircraft applications.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919


OST-00-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-03-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations

June 17, 2004

Re: Updated Status and Anticipated Timing of Pending Application to the FAA

BMAC is now in the final stage of its FAA Part 121 application process. BMAC's FAA "tabletop exercises" have gone very well and are expected to be completed today. BMAC's B727 proving runs will begin on Monday, June 21, 2004, and will continue through that week. BMAC anticipates that the FAA will issue amended Operations Specifications to BMAC authorizing operations with its first B‑727‑200 aircraft on Monday, June 28, 2004.

BMAC hereby renews its requests submitted in the referenced Dockets in Supplement No. 10, filed on Monday May 20, 2004, and in Supplement No. 11, filed concurrently today, requesting the Department to take oral or written action issuing effective amended certificate authority to BMAC to begin revenue operations with its first B‑727‑200 aircraft, effective immediately following issuance of amended FAA Operations Specifications to BMAC.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919



OST-00-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-03-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations


June 14, 2004

Re: Request for Updated Information

We need updated forecast income and expense projections for BM (for domestic operations, foreign operations, and combined operations). The most recent information we have on file is dated July 2003.

By: Vanessa Wilkins


June 22, 2004

Re: Request for Additional Information

Boston-Maine's March 31, 2004, balance sheet filed on May 20, 2004, as an exhibit to Supplement 10 does not balance. Please submit a revised balance sheet.

Provide a statement from the responsible Boston‑Maine official stating whether there have been any events that have occurred after the preparation of the company's March 31, 2004, balance sheet that may have a significant impact on the financial position or on the operations of Boston‑Maine.

Provide current verification (within 45 days of this letter) of Boston‑Maine's funds on deposit from the company's financial institution(s).

Provide a more current 12‑month income statement for Boston‑Maine (for a period ending no earlier than March 31, 2004). Alternatively, the carrier may provided an income statement beginning January 1, 2004, through a date not earlier than March 31, 2004.

By: Vanessa Wilkins



June 24, 2004

Supplement No. 6

The purpose of this Supplement No. 6 is to furnish certain updated fitness information in anticipation of imminent final action by the Department on BMAC's pending applications for authority to operate large aircraft in this proceeding and a concurrent related proceeding in Docket OST‑00‑7668.

Concurrently herewith, BMAC is filing a Supplement No. 12 to its application for interstate large aircraft authority in Docket OST-00-7668. That filing contains BMAC's submission of certain additional updated fitness information and exhibits relevant to the fitness-determination issue involved in BMAC's application for authority to operate large aircraft. The foregoing information and exhibits, and the fitness review at issue, are identically applicable to both of BMAC's interstate and foreign large aircraft applications.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



OST-00-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-03-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations

July 16, 2004

Re: Request for Immediate Issuance of Order Issuing Effective Certificates of Public Convenience and Necessity

Enclosed herewith is a copy of Air Carrier Certificate No. B 16A009J, reissued December 18, 2001, and Sections A-1, A-3, A-6, A-7, B-50 and C-70 from the revised Operations Specifications related to that Certificate, issued to Boston-Maine Airways Corp. d/b/a Pan Am Clipper Connection by the Federal Aviation Administration on July 15, 2004.

BMAC has previously filed, in Supplement No. 10, filed May 20,2004, Supplement No. 11, filed June 17, 2004, and Supplement No. 12, filed June 24, 2004, all of the updated fitness information and other documents specified in Condition (2) of the specimen Certificate attached to Final Order 2003-2-24, served February 28, 2003. There have been no material changes in the fitness information filed by BMAC subsequent to June 24, 2004.

Accordingly, BMAC hereby requests issuance of an Order Issuing Effective Certificates of Public Convenience and Necessity to BMAC, or equivalent verbal authority, effective immediately, without awaiting the passage of six business days following submission of the enclosed Part 121 Certificate and Operations Specifications.

Counsel: Zuckert Scoutt, Nathaniel Breed, Jr., 202-298-8660



March 21, 2005

Motion for an Expedited Decision

The tortuous procedural history of BMAC's application for foreign scheduled- service large aircraft authority in this proceeding need not be recited in detail. Suffice it to say that BMAC filed its initial certificate application in this proceeding on April 18, 2003 - nearly two long years ago. That application complied fully with every one of the Department's substantive and procedural requirements applicable to a certificate application which involves a request for authority requiring a fitness determination, such as BMAC's proposed shift from small-aircraft to large- aircraft operations. Throughout every stage of this proceeding, BMAC has responded promptly, completely and accurately to every request for additional information or documents submitted to BMAC by the Department's Air Carrier Fitness Division.

BMAC has been successfully training flight crews and operating the three Boeing 727 aircraft authorized under Order 2004-8-24. BMAC now requires the authority for the operation of additional large aircraft in order to avoid the disruption of its growing scheduled service and charter commitments for the month of April and beyond.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



March 22, 2005

Response of Air Line Pilots Association to Motion for an Expedited Decision

Air Line Pilots Association respectfully submits this response to the motion of Boston-Maine Airways Corp. for an expedited decision on its application for certificate authority to operate large aircraft in scheduled foreign air transportation. ALPA's position with respect to BMAC's fitness to hold authority to perform air transportation of any kind is already a matter of record. ALPA filed a timely opposition to BMAC's application in this Docket, and more recently filed, in Docket OST-00-7668, a motion to revoke BMAC's existing certificate authority to perform interstate air transportation. The latter filing, in particular, sets out all the grounds on which ALPA believes BMAC lacks the requisite fitness to hold any certificate to perform air transportation.

Having said that, ALPA does not oppose BMAC's request for an expedited decision on its application. We urge, however, that the decision be a denial.

Counsel: ALPA, Jerry Anker, 202-797-4087



April 6, 2005

Supplement No. 7 to Application

The purpose of this Supplement No. 7 is to furnish certain updated fitness information in support of BMAC's pending application for authority to operate large aircraft in foreign air transportation in this proceeding and BMAC's recently-filed emergency exemption application in Docket OST-00-7668.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



May 3, 2005

Supplement No. 8

The purpose of this Supplement No. 8 is to furnish certain updated fitness information in support of BMAC's pending application for authority to operate large aircraft in foreign air transportation in this proceeding and BMAC's pending application for interstate large-aircraft authority in Docket OST-00-7668. BMAC filed a Supplement No. 14 to its application for interstate large aircraft authority in Docket OST-00-7668. That filing contains BMAC's submission of certain additional updated fitness information and exhibits relevant to the fitness-determination issue involved in BMAC 's application for authority to operate large aircraft. The foregoing information and exhibits, and the fitness review at issue, are identically applicable to both of BMAC's interstate and foreign large aircraft applications

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



August 2, 2005

Supplement No. 9 to Application

The purpose of this Supplement No. 9 is to furnish certain updated fitness information in support of BMAC's pending application for authority to operate large aircraft in foreign air transportation in this proceeding and BMAC's pending application for interstate large‑aircraft authority in Docket OST‑00‑7668.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



OST-2000-7668 - Amended Certificate of Public Convenience and Necessity - Large Aircraft Operations
OST-2003-14985 - Foreign Certificate of Public Convenience - Scheduled Passenger
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

August 2, 2005

Re: Inspector General Initiation of Investigation

By this letter I am requesting that the Office of the Inspector General initiate an investigation into the circumstances involving certain information filed by Boston-Maine Airways, Corp. in proceedings before the Department. I ask that your investigation consider whether Mr. Nadolny's actions were limited to only those instances that were previously disclosed and whether other individuals employed by Boston-Maine were involved in, or knew of, Mr. Nadolny's actions. My office intends to defer action on all open dockets regarding Boston-Maine's authority until such time as I receive your investigative report and my staff has fully reviewed its conclusions.

By: Karan Bhatia



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operation
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

August 24, 2005

Amended Pleadings - A Racketeering and Corrupt Organization Claim Brought Under Title 18 of the United States Code - Charging: Mail Fraud, Wire Fraud, Extortion | Word

This case is about when an insurance company and its rogue client go bad. Rather than simply let the administrative process run its due course, the conspirators choose organized crime like schemes as a means to deny a claim.  I’ve named it, “Reverse Insurance Fraud”.   And it happens to Lawful Claimants every day.

This is a RICO action and is brought against PAA/Kemper Insurance Company et al because, after my notification of injury, the Defendants decided to enter into a tort scheme to defeat the lawful purpose of Workman’s Compensation law using a fraud scheme with specific intent, and contemplated harm. I will prove, PAA, rather than allow administrative means to play out, decided  first, to retaliate by my early, unfair removal from the training program and termination. Thereafter, PAA decided to add conspirator Defendants who together engaged in fraud, wire fraud mail fraud, extortion and other organized crime and organized crime-like activities to be their primary means of denying me a fair hearing under Workmens Compensation law.

By: Dirck Hecking



OST-00-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-03-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations

October 12, 2005

Emergency Motion

BMAC believes that the IG has found no evidence implicating any other person with the former General Counsel's actions, and has concluded that BMAC is the innocent victim of that individual's unauthorized and concealed wrongful actions. Finally, it should be noted that BMAC has asserted and demonstrated that, notwithstanding the falsification by its former General Counsel of financial information submitted by BMAC to the Department, there has never been a time when BMAC, as a matter of fact, has not been fully able to satisfy the Department's long-established financial fitness test, and BMAC has recently filed new evidence demonstrating that it has immediate and assured access to substantial working capital resources far in excess of the level required by its pending four B-727 service proposal.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations

October 17, 2005

Answer of Air Line Pilots Association to Emergency Motion of Boston-Maine

Boston-Maine Airways Corp. has filed an "emergency motion" requesting the Department to immediately grant its pending applications for authority to operate four additional B-727-200 aircraft (Docket 7668) and to perform foreign air transportation (Docket 14985). The same request was made simultaneously by BMAC's president, David Fink, in a personal letter to Secretary Mineta, which has also been placed in the Docket. Aside from repeating all of the carrier's previous claims concerning its fitness and its need for the requested authority, BMAC's motion and Mr. Fink's letter both assert that the yet-to-be-completed Inspector General investigation into certain actions of BMAC's former General Counsel should not deter the Department from granting the authority it seeks, because "BMAC believes that the IG has found no evidence implicating any other person with the former General Counsel's actions, and has concluded that BMAC is the innocent victim of that individual's unauthorized and concealed wrongful action."

Of course, regardless of what BMAC or Mr. Fink may "believe," the fact is that the Inspector General has not yet completed his investigation and therefore cannot have reached any final finding. Indeed, he has yet to contact ALPA, which has names of potential witnesses to provide to him. Moreover, Assistant Secretary Karan Bhatia's letter of August 2, 2005 referring this matter to the Inspector General could not have been more clear: "My office intends to defer action on all open dockets regarding Boston-Maine's authority until such time as I receive your investigative report and my staff has fully reviewed its conclusions.

Since the report has not yet either been received or reviewed by the Department staff, BMAC's motion must be denied.

Counsel: Air Line Pilots Association, Jerry Anker, 202-797-4087



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations

October 20, 2005

Reply of Boston-Maine Airways and Motion for Leave to File an Otherwise Unauthorized Document

BMAC believes that the IG's exhaustive investigation into the Department's questions relating to BMAC has now been completed. BMAC understands that a meeting relating to the status of the IG's investigation was held in Washington, D.C. between the IG's Special investigator and senior officials olthe Department on Thursday, October 6th, the week before BMAC's Emergency Motion was filed in this proceeding. BMAC assumes that the foregoing high-level meeting must have included a very detailed discussion of the evidence adduced during the IG's investigation bearing on the question of BMAC's (i.e., individual officers, employees and agents of BMAC) involvement in, and knowledge of, Mr. Nadolny's actions relating to the performance bond forgery and the submission of falsified financial statements and altered bank statements to the Department.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operation
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

October 24, 2005

Memorandum in Support of Captain Hecking's Motion to Remove Dave Fink, et al | Word

My earlier filings in support of my EMERGENCY MOTION(s), I have consistently made the case, that Dave Fink and Company are guilty of RICO violations. I have summoned them to atone in a lawsuit in the United States District Court for the Southern District of Indiana. I enter this venue for the purpose of advising the Department. I have no remedy in this venue only cost. Pan American/Fink disrespect the privilege by unlawfully, not disclosing to the Department: (a) the existence of my lawsuit; (b) the significant contingent, trebled financial liability; (c) and mandatory seizure remedy, which my RICO claim poses in DOT filings.

On May 20, 2004, or earlier, it appears David Fink knowingly kept secret from the Department of Transportation; the fact that he and the alter ego Pan American Airways, were defendants in a lawsuit involving fraud. Knowing better, Mr. Fink then maintained that secret until I blew the whistle here. This egregious behavior against public policy, must be recognized throughout all of the Department’s jurisdictions which he participates; not the least of which is Guilford Transportation Systems, Boston-Maine Airways and others.

As such, each and every subsequent filing, before the Department, has been tainted by Mr. Fink’s fraud. Moreover, for the purpose of RICO, each act of using the tool of wire or mail to create an artifice to defraud the Department of Transportation becomes yet more counts for Mr. Fink to explain before my “Hoosier” jury. Mr. Fink is unfit and incapable of administering discipline to himself in a manner which this industry requires. I plea you grant my EMERGENCY Motion(s) forth with.

By: Captain Hecking



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

October 29, 2005

Memorandum in Support of Motion to Remove Dave Fink, et al | Word

In simple terms: when ALPA informed of a performance bond problem – the Company incompletely ‘fessed-up and paid up. When the DOT informed of a financial problem – the Company incompletely ‘fessed-up and fixed-up. Dave Fink – with one straw-man burned – moves in another in and maliciously, supports every remaining FRAUD. This goes to demonstrate the empty words of Mr. Fink before Department are, of themselves, nothing more than a another layer of FRAUD aimed, once again, at public officials who can not be starved off his case, but who may be politically taken off his case.

Mr. Fink and Company is unfit and incapable of administering discipline to himself in a manner which this industry requires. I plea you grant my EMERGENCY motion(s) forth with.

By: Captain Dirck Hecking



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operation

November 14, 2005

Final Petition

Boston-Maine Airways Corp., d/b/a Pan Am Clipper Connection hereby submits this Final Petition, pursuant to Rule 4 of the Rules of Practice of the Department of Transportation, to make one last request to the Department to take expedited action to grant (in part) the relief requested in BMAC’s Emergency Motion filed in the captioned proceeding on October 12, 2005.

Although BMAC is innocent of any wrongdoing, BMAC is suffering unavoidable and substantial operating losses as a result of its current limitation to the operation of only three B-727-200 aircraft. That limitation effectively precludes BMAC from bidding on contacts for Public Charter flight programs and charter contracts for the Department of Defense. Without the grant of very limited and temporary relief by the Department in the near future, BMAC will be forced to go out of business - a gross injustice to BMAC, its shareholders and employees, and the traveling public which relies upon BMAC’s services in markets not served by any other carrier.

BMAC hereby requests the Department to issue an expedited Order, following the submission of any requested new or updated fitness information by BMAC, granting, on a temporary and provisional basis, an exemption to authorize BMAC to operate at least two additional B-727-200 aircraft for a period of one year.

This Petition has been necessitated by an unexpected and unexplained delay of the issuance of a report to the Department by its Inspector General of the findings reached by the IG in its investigation of BMAC, undertaken at the request of the Department on August 2, 2005. BMAC believes that the IG has completed its investigation of the questions relating to BMAC specified in the Department’s August 2nd letter (no further BMAC witnesses have been interviewed and no further documents have been requested since September 9, 2005).

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operation

November 28, 2005

Request for Expedited Grant of Relief

As you may know, Boston-Maine Airways Corp. filed a Final Petition in the referenced proceedings on November 14,2005, for the purpose of requesting expedited action by the Department on BMAC‘s previously-filed Emergency Motion, filed in the referenced proceedings on October 12, 2005. BMAC’s Final Petition included a request for immediate consultations between the Department’s Office of the Assistant Secretary for Aviation and International Affairs and the Department’s Office of the Inspector General to the extent necessary to permit action on BMAC’s urgent request for expedited (partial) action by the OST on BMAC’s pending applications for expanded large-aircraft operating authority.

The deadline for Answers to BMAC’s Final Petition was Wednesday, November 23, 2005. BMAC is very pleased to report that no Answers in opposition to its Final Petition were filed by any interested party to the referenced proceedings.

In that circumstance, BMAC respectfully requests that your Office, and other affected offices within OST particularly including the Fitness Division, take all appropriate and necessary action to expedite grant of the relief requested in BMAC‘s Final Petition. In particular, we request the OST to issue a Notice in the near future: (1) advising BMAC and all interested parties that the OST has received a formal or informal report, satisfactory to OST, of the results of the OIG’s recent investigation of BMAC in response to the OST’s August 2,2005 request, and (2) assuming that the OIG’s report is exculpatory with regard to the issues relating to the current management and employees of BMAC, instituting procedures for the submission of updated fitness information by BMAC to the Fitness Division (and filed in the referenced dockets), providing for comments (if any) on that information by other interested parties, and establishing procedures for issuance of the Department’s decision.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operation

November 29, 2005

Letter of Airline Pilots Association

In a letter to you dated November 28, counsel for Boston-Maine Airways Corp. requested "your Office, and other affected offices within OST particularly including the Fitness Division," to "expedite grant of the relief requested" by BMAC in a pleading labeled "Final Petition," which was filed in the above two Dockets. Counsel suggested that such action was appropriate because "no Answers in opposition to its Final Petition were filed by any interested party to the referenced proceedings."

Air Line Pilots Association has been an active participant in these proceedings for the past three years, and has consistently opposed the relief sought by BMAC -- including, but not limited to, the relief sought by its "Final Petition." The only reason ALPA did not respond to the Final Petition is that this latest pleading by BMAC presented nothing new, but merely restated claims, arguments, and requests that BMAC had made repeatedly in previous filings, to which ALPA had repeatedly responded. We took it for granted that the Department was well familiar with ALPA's views, and that there was no need to burden the Docket with more paper.

Counsel for BMAC surely understands that ALPA has not changed the position it has taken consistently throughout these proceedings -- namely, that BMAC is not fit to be a certificated air carrier. We therefore believe it was disingenuous for counsel to attempt to attach significance to the fact that ALPA had not responded to his "Final Petition." For a fuller statement of ALPA's position in these proceedings, we respectfully refer you to the above dockets.

By: ALPA, Russell Bailey, 703-689-2270



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations

December 1, 2005

Motion to Remove Dave Fink | Word

The purpose of this memorandum is to comment on whether or not Dave Fink is truly innocent and dedicated to being a better man. - I don’t think so.

I spoke with John Nadolny’s Washington Attorney this morning, who indicated that among other things, Mr. Nadolny is attorney-client with PanAm and Mr. Fink.   So right here,   I’ll  beg  Mr. Fink  to  release  Mr. Nadolny  from  the constrictions  of  attorney-client  and  instruct  him - to  tell  all  of  the  truth  and nothing  but  the  truth, to the looming Indiana and Washington investigators.  Its easy and its fun - Dave Fink needs to demonstrate to us he is truly worthy.

So far here in Indiana, Mr. Fink, without being able to blame straw-boss Nadolony, renews his support of fraud day, by day, by day. I have no evidence before me here, to support the smallest notion, that Dave Fink is not among one of the ultimately responsible and culpable parties. Being that Mr. Fink answers to Mr. Mellon and Mellon doesn’t fire him, attaches the appearance Timothy Mellon supports, if not commands, the lawlessness.

To support guilt in the RICO case comes an admission which is attached. An abundance of fact in this case support my allegations which are:

“Dave Fink will design an artifice, distribute it over wires and through the US Mail, in furtherance of a scheme to defraud. This is his policy, this is just the way he operates, whenever the administrative process or industrial practice gets in his way.” He is not worthy, by any measure.

By: Captain Dirck Hecking



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

December 5, 2005

Ex-Parte Correspondence to Dave Fink

Thank you for your letter of October 11, addressed to Secretary Mineta, regarding Boston-Maine Airways Corp.’s request for expanded economic authority to operate additional large aircraft and the company’s views concerning the U.S. Department of Transportation’s review process in this case. The Secretary has asked that I respond to your letter directly.

The Department is required by its governing statute, 49 U.S.C. 41110(e), to ensure that all certificated air carriers continue to be fit, willing, and able to provide the air transportation authorized by their certificates. In carrying out our responsibilities, the Department not only evaluates an air carrier’s compliance record, but also examines the managerial competence of an applicant’s key personnel, reviews the applicant’s operating and financial plans, and establishes that an applicant is owned and controlled by U.S. citizens. I am sure you understand that the Department must carry out its responsibilities under the statute before it makes its final decision on BMAC’s continuing fitness, as well as its request for expanded operating authority.

As you know, the Department has requested that the Office of the Inspector General investigate the circumstances surrounding certain information filed by BMAC in proceedings before the Department. We recognize that you believe that the Inspector General may already have reached certain conclusions that would permit us to act favorably on our review of BMAC’s continuing fitness, as well as its request for expanded operating authority. This is not the case. First, our understanding is that the Inspector General’s investigation is still ongoing. Thus, the Inspector General has not provided the Department with his findings or conclusions in this matter. Moreover, you should note that our request to the Inspector General is focused on learning the facts and circumstances surrounding specific prior events. As described above, our review of BMAC’s continuing fitness is much broader.

While the facts we have available to us at this time do not yet permit us to determine that BMAC is fit to institute the expanded operations requested, I assure you that the Department is working as expeditiously as possible and is continuing its review of BMAC’s continuing fitness, as well as its request for expanded operating authority, while the Inspector General’s investigation remains ongoing. Toward this end, attached is a request directing the company to provide additional information necessary for our review.

By: Michael Reynolds



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

December 18, 2005

Correspondence of Captain Robert Sklenka

I am writing to you because of an article that was published in the Portsmouth Herald dated 12/14/2005. This particular article is attached to this E-mail for your review. Let me first explain that I am a former Pan Am Airline Captain that was fired on October 31, 2004. The President of the now defunct Pan American Airways Mr. David Fink, took great joy in this exercise only because we were a unionized pilot group. I just had to comment on this piece that recently came out because I know that Mr. David Fink and the owner of Guilford Transportation Mr. Tim Mellon are true sidesteppers of the law. They want to increase the size of their airline at the Pease Tradeport. What a joke. They couldn't even keep track of the five airplanes we were flying. ALPA has a safety committee. We at Pan Am had one, but guess what any suggestions or help we tried to give the airline management was brushed off just like the true cheaters and liars they were. Mr. David Fink and Tim Mellon had no idea how to run an airline it was a disaster in the making. They wanted no input from the Pilot group, and did not care one iota. All they cared about was extrapolating government financing for their convenience and not the flying public. Check out their financial record at every airport we serviced. They owed the Sanford, FI. Airport hundreds of thousands with no intent to pay. Airplanes were impounded for no payment of landing fees, disrupting the flying public schedules with no remorse at all.

The former general counsel for the now defunct Pan Am and the now Boston and Maine outfit Mr. John Nadolny was only the legal mouth for Mr. David Fink and nothing else. Should this tell you something about where Mr. David Fink's motives lie?

ALPA has said something that was just unprecedented referring to the Pan Am Management, nothing like this has ever been seen in their history of representation. Truly a milestone. I implore you, please do not grant them anything.

By: Robert Sklenka



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operation


December 30, 2005

Motion for Confidential Treatment Pursuant to Rule 12

The confidential information at issue consists of recent financial statements of BMAC’s affiliated company, Springfield Terminal Railway Company, which are required to be filed in connection with the application of BMAC for new and amended certificate authority in the captioned proceedings.

Springfield Terminal is a closely-held corporation and its financial reports, which contain proprietary and competitively-sensitive information, are highly confidential. Springfield Terminal does not publish its confidential financial statements in any publicly-available forum. BMAC respectfully submits that grant of this Motion is necessary to avoid defeating the policy and practice of the Securities and Exchange Commission and other federal regulatory agencies in allowing closely-held corporations to keep their financial reports confidential.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com


December 20, 2005

Response to Request for Updated Fitness Information - Bookmarked

Boston-Maine Airways Corp. hereby submits this Response to the December 5, 2005 letter of the Acting Assistant Secretary for Aviation and International Affairs to the President of BMAC requesting BMAC to submit certain updated fitness information, as specified in the Information Request attached to the Acting Assistant Secretary’s letter. The order and numbering of BMAC’s responses will follow the format of the Department’s Information Response.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operation

January 10, 2006

Re: Information Response as Requested by the DOT

Boston-Maine Airways Corporation herewith submits the original signed copies of the following documents, as requested in the Department's December 5, 2005 letter to Mr. David A. Fink, the president of BMAC:

  1. Baker Newman & Noyes. Independent Auditors' Report, dated March 23, 2004.
  2. Baker Newman & Noyes, Independent Auditors' Report, dated April 10, 2003.
  3. Letter of Michael L. Cecere, CPA. a partner of Gray. Gray & Gray, LLP, dated December 15, 2005.
  4. Letter of Kenneth R. Sheldon, Senior Vice President of the Bank of America, Middle Market Office, in Manchester, NH, dated December 16, 2005.
  5. Title 18 Certifications executed, notarized and dated December 30, 2005, by Robert B. Culliford, Senior Vice President and General Counsel of BMAC and Eric H. Lawler, Senior Vice President and Chief Financial Officer of BMAC.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operation
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

February 28, 2006

Ex-Parte Letter to Jeb Bradley

Thank you for your letter of October 26, 2005, regarding the application of Boston-Maine Airways Corporation for authority to operate additional large aircraft and asking that the U.S. Department of Transportation complete its investigation of the air carrier in a timely manner.

The Department has requested that the Office of the Inspector General investigate the circumstances surrounding certain information filed by BMAC in proceedings before the Department. The IG’s investigation is still ongoing and, therefore, it has not yet provided the Department with its findings or conclusions in this matter. Moreover, you should note that the Department’s request to the IG is focused on learning the facts and circumstances surrounding specific prior events.

While the facts available at this time do not yet permit the Department to reach conclusions on these matters involving BMAC, I can assure you that the Department is working on these issues as expeditiously as possible. Although the IG’s investigation remains ongoing, the Department is pursuing its review of BMAC’s continuing fitness, as well as BMAC’s request for expanded operating authority.

By: Norman Mineta



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operation

April 24, 2006

Supplement No. 1 to Response of Boston-Maine Airways to Request for Updated Fitness Information - Bookmarked

  1. Updated Financial Information
  2. Operating Management Personnel Changes
  3. Pending Litigation

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operation

June 23, 2006

Re: Request for Information

Although the OIG investigation is still classified under Department of Justice guidelines as "open," and any written products will not be available for request until the conclusion of any legal actions that might be taken by the Office of United States Attorney, we, in consultation with the OIG, now find it appropriate to take action on BMAC's pending applications. However, based on our reexamination of the record before us, it does not appear as though BMAC has the financial wherewithal to conduct its proposed operations.

Under these circumstances, BMAC would need to demonstrate that it has access to $22 million to cover its current negative working capital (see December 31, 2005, balance sheet) plus the capital required to fund its proposed expansion of operations, as described in the preceding paragraph. We request that BMAC submit projected expenses for its proposed operations, including its forecast expenses related to operating additional aircraft and operating to foreign markets. We also request that BMAC provide evidence, along with third‑party verification, of its ability to meet the Department's financial fitness criteria for its proposed operations.

By: Michael Reynolds



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operation

July 18, 2006

Re: Request for Updated Fitness Information - Bookmarked

BMAC now plans to operate only two additional B727 aircraft during the next twelve months, and tentatively plans (subject to market conditions and the financial results of its operations with five B727 aircraft) to operate two additional B727 aircraft beginning at some point during the following year. BMAC desires to continue to prosecute its current seven-aircraft application, but requests the Department to defer action on its application for authority to operate the 6 and 7th B727 aircraft at this time. BMAC will notify the Department, and will file appropriate financial and other fitness information, when it is ready to seek authority to operate two additional large aircraft.

BMAC has decided to focus its new B727 operations exclusively on passenger charter services during the next 12 months, in the interest of reducing the fixed and variable cost of its operations while maintaining or increasing operating revenues through increased daily aircraft utilization. BMAC intends to continue to maintain limited scheduled service with one or two of its current B727 aircraft, and will continue to provide scheduled and charter passenger service with its Jetstream aircraft fleet.

BMAC believes that it can operate passenger charter flights at a lower total operating cost than the higher level of fixed operating expense necessitated by scheduled-service operations. BMAC believes that its shift in emphasis to B727 charter operations, including both ad hot; charters and longer-term contract charters, will enable BMAC to generate the same or greater annual revenues with B727 aircraft resulting from increased average daily hours of utilization with its B727 fleet.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-298-8660, npbreed@zsrlaw.com



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operation

July 21, 2006

Answer of Boston-Maine to Comments of Air Line Pilots Association

Contrary to ALPA’s Comments, BMAC submits that its July 18th Response, and the exhibits filed with that Response, are wholly responsive to the Department’s June 23rd request, and that BMAC’s Response, together with other information bearing on BMAC’s financial condition on file with the Department, is wholly sufficient to enable the Department to make an informed decision on the matter of BMAC’s current financial fitness to operate two of the four additional B727-200 aircraft for which BMAC seeks authority. BMAC has requested the Department to defer action on BMAC’s request for authority to operate the second two B727-200 aircraft until a future date, at which point BMAC will file all appropriate updated financial and other fitness-related information.

BMAC strongly objects to ALPA’s attempts to insinuate that BMAC is financially unfit or that BMAC has filed information in its Response which does not accurately reflect BMAC’s current financial condition. BMAC will not dignify those baseless allegations with a further response at this time.

BMAC believes it is appropriate to remind the Department that there is absolutely no contractual or other legal relationship between BMAC and ALPA. ALPA is a labor organization primarily engaged in representing the interests of pilots who have voted to designate ALPA as their collective bargaining representative in matters relating to their employment. ALPA is not a legally authorized representative of any pilots, or any other employees, employed by BMAC.

In the absence of any other demonstrable legitimate basis for ALPA’s participation in this proceeding, the transparent motive driving ALPA’s participation in this case is clearly its intensely bitter history of unrelenting labor conflict with BMAC’s sister carrier, Pan American Airways, Inc., whose air carrier operations were terminated on October 31, 2004 as a direct result of staggering economic losses and operating inefficiencies directly attributable to ALPA’s confrontational and destructive representation of Pan Am’s pilots.

BMAC respectfully urges the Department to view ALPA’s pleadings in this proceeding in the light of the nearly four-year-long record of ALPA’s motivation and tactics in every available forum, including the Federal District Court litigation referred to in BMAC’s Response (and described in greater detail in prior pleadings by BMAC in this case), the United States Congress, the Federal Aviation Administration, and, of course, the Department itself. BMAC respectfully and urgently requests the Department to continue to expedite this final stage in the processing of this proceeding.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-298-8660, npbreed@zsrlaw.com



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operation
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

August 1, 2006

Re: Ex-Parte Letter to Senator John Sununu

With respect to the Department's review of BMAC's continuing fitness and pending applications for additional authority, I assure you that the Department has been actively and expeditiously working on matters involving BMAC. However, the need for the Department's Inspector General to review aspects of that carrier's compliance disposition has necessarily affected the proceeding's decisional timetable. Additionally, we had to obtain from BMAC the requisite information to enable the Department to resolve the remaining issues relating to the carrier's fitness. In this regard, the Department requested information on March 1 from BMAC about its ticket refund practices* which pertains directly to the air carrier's compliance disposition. The BMAC responded to our inquiry on March 6 and supplemented that response on March 28. Also, on April 26 BMAC provided the Department with additional fitness information with respect to its financial condition. Further, by letter dated June 23, the Department requested additional information regarding BMAC's ability to finance its proposed operations. We are hopeful that the information the company provides to the Department in response to our latest information request will allow us to conclude our fitness review of BMAC.

By: Maria Cino



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operation
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

August 7, 2006

Memorandum in Support of Motion to Remove Dave Fink - "Company Fraud Continues Unchecked" | Word

Once again I feel compelled to write regarding the continuing deceit and free will decisions of Timothy Melon and Dave Fink to make false statements and evasive incomplete statements before the Department of Transportation and others. One of the tactics the Defendants make use of, is to preload its responses in a manner calculated to provide a smoke screen for what it aggressively did not report on.

Timothy Melon and Dave Fink have put the Department in the position most easily expressed as “Whack-A-Mole” when it comes to false statements and failure to disclose. Most recently the Defendants recanted another episode of failure to disclose. The passenger refund scam. The Defendants reported to the department that they negotiated a settlement, with an eye to obtaining a “Pardon” for having made previous false statements to the DOT. The state of mind which precipitated the Crime should not be summarily dismissed by the Department. Rather, it should be used to conclude that the Defendants are unfit!

Such is the case here in their Indiana Racketeering Case. The Defendants know that they have committed a crime [Corey Belobrow admission before the New Hampshire Department of Labor]; yet Mr. Fink fails to fix it. For more than 1,400 days Mssrs. Fink and Melon have renewed their support of fraud against me and failed to atone for their willful bad behavior.

I feel the Department should weigh heavily the character of the men to whom it grants authority. Dave Fink continues to endorse the fraud of John Nadolny against me day by day, long after the dismissal of John Nadolny. Timothy Melon endorses Dave Fink’s fraud by not firing him. They both teach us their willingness to game the system. These bad actors are incapable of managing themselves in a fit manner, let alone managing the Departments most precious gift. 

By: Dirck Hecking



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

August 22, 2006

Re: Submit Audited Financial Statements and Additional Verification

We have reviewed the supplemental information provided by BMAC, and although BMAC provided the Department with certain requested information, our review has revealed the need for further clarification and supplementary information before the Department can make a determination on BMAC 's request for expanded authority. Based on our review of the record, including the material most recently submitted by BMAC, it is not clear that BMAC has the financial ability to expand its operations, as requested.

In this regard, we direct that BMAC provide the Department with current audited financial statements, along with any detailed explanatory footnotes. We note that while BMAC did submit an unaudited current balance sheet at March 31, 2006, we are unable to determine the veracity of the company's current financial condition, since an independent third party did not verify this balance sheet. In addition, this current balance sheet was not accompanied by any footnotes explaining, for example, the creation of a long‑term liability account labeled "Advances from associated companies" and the identity of these associated companies, and the deletion of a current liability account labeled "Due to affiliates" identified in its audited December 31, 2005, balance sheet, and the identity of these affiliates.

By: DOT, Michael Reynolds



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations

December 19, 2006

Further Response of Boston-Maine to Request for Updated Fitness Information - Bookmarked

BMAC respectfully submits that it has shown that it is demonstrably and unequivocally fit for certification to operate the additional B727 aircraft at issue in this proceeding, and in all other respects consistent with the continuing fitness requirement of Section 41110(e) of the Federal Aviation Statutes.

As BMAC has requested many times, BMAC earnestly and respectfully requests the Department to review the information set forth in this Response, and any other fitness-related information the Department believes to be relevant and material to the issues in this proceeding, with all due diligence and expedition, and to proceed to issue an Order authorizing BMAC to operate the two additional B727 aircraft at issue at this stage of this proceeding as expeditiously as possible.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

January 22, 207

Memorandum of Captain Hecking | Word

I submit Attorney Culliford has admitted that Pan American top management was (and is now) aware of my NOTICE of FRAUD certified letters. Mr. Culliford introduced himself as Vice President and Chief Council for Pan American. He is about the highest official in the company which is good enough notification for me. HE DID NOTHING just lime Mr. Fink and Mr. Nadolny; where an honest executive would get to the bottom of the claim and fix it. This goes to prove my contention, nothing was done because, management at the highest level of Pan American and Kemper have failed to comply with the requirements set forth by an administrative agency RSA 281 A:56(b) as a part of its fraud scheme.

Moreover, Mr. Fink is as much a participant in this docket as I am. And for him to state under oath he is not aware of  fraudulent Memo of Denial is nothing less than an obstruction of justice! I feel compelled to point out this set of bad behavior(s) goes to renew the proof Mr. Fink and now Mr. Culliford, currently uses false and misleading statements, just as Mr. Nadolny did, whenever an administrative process gets in the way.

By: Dirck Hecking, 317-293-6709, cap10dj@sbcglobal.net



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

January 24, 2007

Additional Information Request

This letter is in reference to the information you submitted on behalf of Boston-Maine Airways Corp. in response to the Department’s June 23, and August 22, 2006, requests for information. In addition to responding to the Department’s questions, you also request to add two large aircraft to BMAC’s fleet. We have reviewed your request and find that additional and/or clarifying information is necessary. Specifically, please provide BMAC’s balance sheet at December 31, 2006, and statements for BMAC’s bank accounts for the period December 1-31, 2006.

This information should be filed in the public docket as soon as possible but within 30 days of the date of this letter. In addition, BMAC should keep the Department informed of any changes in areas impacting its fitness (ownership, operations, finances, management, compliance posture) while its request is pending.

By: Air Carrier Fitness Division, Vanessa Balgobin



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations

January 26, 2007

Supplement No. 1 to Further Response to Request for Updated Fitness Information - Bookmarked

  1. BMAC's Balance Sheet as of December 31, 2006
  2. BMAC's Bank Account Balances as of December 31, 2006
  3. Additional Working Capital
  4. Current Financial Fitness Test Calculation

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operation

February 15, 2007

Additional Comments

As you know, on January 26, 2007, Boston-Maine Airways Corporation filed a Supplement No. 1 to BMAC's previously-filed Further Response in the referenced proceedings. The purpose of Supplement No. 1 was to respond to certain questions raised in the January 24, 2007 letter from the Fitness Division to the undersigned counsel for BMAC.

Subsequent to the filing of Supplement No. 1, BMAC has conducted a thorough review of the working capital discussion and exhibits contained in that Supplement No. I filing. Based on that review and discussion, it became clear that BMAC's Supplement No. 1 filing had inadvertently failed to include a third-party verification of the $500,000 portion of BMAC's working capital which had been received in December 2006, and that the narrative portion of Supplement No. 1 did not clearly state that BMAC had received two further working capital contributions of $400,000 and $500,000, respectively, during January 2007. In addition, BMAC realized that, in recording BMAC's receipt of $325,000 in proceeds from the sale of certain aircraft engines during January, it had inadvertently failed to make a corresponding deduction of the book value of those engines reflected in BMAC's balance sheet net working capital figure contained in its updated working capital analysis.

For the purpose of correcting those inadvertent omissions and clarifying the precise amount of BMAC's increased working capital available to cover its proposed expanded large-aircraft operations, BMAC hereby submits the further comments and attached documents.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-9719, npbreed@zsrlaw.com



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service Operations
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

April 30, 2007

Motion of Capt. Hecking for Leave to File Comments | Word

I submit the Defendants’ continue not to be compliant and fix the damage created by their false and misleading statements to administrators (New Hampshire Department of Labor in violation of RSA281-A56 and others – including the USDOT). Nothing was done because, management at the highest level of Pan American has proceeded again in bad faith, by failing to comply with the requirements set forth by an administrative agency.

The DOT and the public at large, deserve clear and concise statements by the applicants, addressing the series of questions posed in this docket.

The defendants systemically can’t help but revert, to the historical industrial pattern of false and misleading statements, just as Mr. Nadolny did, whenever an administrative process gets in the way.  And now, once again, Mr. Fink glassed-over the incompetent false testimony. The Defendant Applicant offers only excuses, takes no responsibility, makes demands and reinvent themselves over and over each time their backs are against the wall... And sadly,  Mr. Mellon (95% Shareholder) backs all of this up!

By: Dirck Hecking



Order 2008-2-3
OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

Issued and Served February 1, 2008

Show Cause Order

By this order, we propose to revoke the certificate of public convenience and necessity issued to Boston-Maine Airways Corp., and dismiss its applications for foreign scheduled certificate and exemption authority for its failure to continue to remain fit, willing, and able to provide air transportation as a U.S. certificated air carrier. Our review of the record in this case indicates that BMAC does not possess (1) the financial wherewithal to continue or expand its operations without posing an undue risk to consumers and their funds, (2) the managerial competence necessary to oversee its current and proposed operations, and (3) a proper regard for the laws and regulations governing its services to ensure that its aircraft and personnel conform to applicable safety standards and to ensure that acceptable consumer relations practices will be followed.

By: Michael Reynolds



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

February 8, 2008

Motion for Postponement of Procedural Dates

BMAC submits that its voluntary suspension of all flight operations on February 29 should eliminate any concern the Department might have about a potential risk of harm to the public if the Show Cause Order procedural dates were postponed for 30 days, as requested in this Motion, and if BMAC intended to continue to conduct revenue flight operations during that additional 30-day period. (BMAC obviously disagrees that its continuation of revenue operations after March 1st, if that were BMAC's intention, would expose the public to any risk of harm whatsoever.

If the Department is willing to grant the requested postponement of procedural dates as described in this Motion, BMAC would not object to the Department making BMAC's voluntary suspension of flight operations on February 29, 2008 a condition to the Department's grant of the requested postponement.

In the event that BMAC is able to find a new purchaser of BMAC in the near future, and reaches a final signed Stock Purchase Agreement with that purchaser, BMAC submits that its withdrawal as owner and operator of the corporation which holds the DOT certificate authority (and related FAA Part 121 Certificate and Operations Specifications) which are at issue in this proceeding, and are the focus of the Show Cause Order, would automatically and immediately moot the fitness issues which are the subject of the Show Cause Order, thus eliminating any need or justification for the revocation of those authorizations, which would then be held by a new owner.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



Order 2008-2-24
OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

Issued and Served February 19, 2008

Order Denying Extension of Procedural Dates

By Order 2008-2-3, issued February 1, 2008, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated in it and revoke the certificate of public convenience and necessity issued to Boston-Maine Airways Corp. for its failure to continue to remain fit, willing, and able to provide air transportation as a U.S. certificated air carrier. Interested persons have 30 days, or until March 3, 2008, to file objections to the order. Answers to objections must be filed no later than 7 days thereafter, that is, by March 12, 2008.

By motion filed February 8, 2008, BMAC requested a 30-day extension of time, or until April 2, 2008, in which to file objections and a commensurate extension of time, or until April 11, 2008, in which to file answers to objections. In support of its request, BMAC states that the requested extension would give the air carrier additional time to decide among the following three courses of action in response to the Department’s order: (1) file objections to the order, (2) attempt to sell the company’s stock to new owners, or (3) shut down BMAC entirely and liquidate its assets. The air carrier further states that it would cease all flight operations by February 29, 2008, if granted the requested extension.

The Department has carefully reviewed all of the facts involving this matter, including BMAC’s reasons and justifications for requesting an extension, and we conclude that BMAC has not shown good cause for extending the procedural dates in this case. The Department believes that 30 days is more than sufficient time for BMAC to determine an appropriate course of action. In addition, the action proposed in Order 2008-2-3, revocation of BMAC’s economic authority, if made final would not preclude the sale of the company or its assets. Indeed, under the circumstances here, any new owner of the company would be required to undergo its own fitness determination before it could commence air transportation as a U.S. certificated air carrier. Therefore, the Department finds that BMAC has failed to demonstrate that the relief it requests is in the public interest or is required in the interest of due process. Thus, we deny BMAC’s request.

The order also proposed to dismiss BMAC’s applications for foreign scheduled certificate and exemption authority on the same grounds.

By: Michael Reynolds



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

March 3, 2008

Objections and Comments of Boston-Maine in Response to Show Cause Order 2008-2-3

Apart from the evidence provided by BMAC's operating history, the most recent evidence of the seriousness which Messrs. Mellon and Fink, and their subordinate officers (with one tragic glaring exception), bring to their attitude and diligence devoted to compliance with the requirements of the law is to be found in BMAC's diligent search through its corporate financial and regulatory filing records to discover, and report fully to the Department, every inaccuracy or inconsistency which could be found in every legal or regulatory filing in which Nadolny was involved going back six years to BMAC's initial DOT application in July 2000. In addition to its diligent and forthright provision of detailed reports to the Department, BMAC exerted every effort to cooperate fully and immediately with the post-June 1, 2005 investigations by the DOT/IG and by the DOJ/ADA, granting all investigators unrestricted access to BMAC's files and making its employees and counsel available to be interviewed under oath in connection with the government's investigations.

BMAC's owners and senior officers are justly proud of BMAC's safety and compliance disposition record, and of their constant efforts to instill that attitude in all of BMAC's officers and employees, together with other corrective measures instituted since June 2005, including a required double-check review of all financial information submitted to any federal, state and local government agency in the future.

It is important to BMAC to retain its small-aircraft certificate authority, both on the basis of the fitness evidence adduced in this proceeding, and for the lawful business purposes discussed above.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202-973-7919, npbreed@zsrlaw.com



OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

March 10, 2008

Answer of the Air Line Pilots Association to Objections and Comments of Boston-Maine

In ALPA's view, BMACs senior owners and officers have demonstrated a lack of compliance disposition at companies other than BMAC that they own and manage as well sufficient to warrant certificate revocation. Indeed, ALPA's December 29, 2004 motion to revoke BMACs certificate is based solely on a number of decisions of courts, arbitrators and administrative bodies that found that such companies had violated a range of laws and contractual commitments.

The Department is clearly correct in proposing to revoke all BMACs authority. The repeated submission over a two and one-half year period of patently false documents in this proceeding -- a sustained course of malfeasance which may be without parallel in the Department's history -- as well as the numerous other demonstrations of a lack of compliance disposition contained in ALPA's petition to revoke bear directly on the fitness of BMACs owners and senior managers to operate any airline.

Counsel: ALPA, Russell Bailey, 202-797-4086, russell.bailey@alpa.org



Order 2008-4-42
OST-2000-7668 - Certificate of Public Convenience and Necessity - Interstate Scheduled Service
OST-2003-14985 - Certificate of Public Convenience and Necessity - Foreign Large Aircraft Operations
OST-2004-19919 - Exemption - St. Kitts and Nevis Scheduled Service

Issued and Served April 29, 2008

Order Revoking Certificate

In its objection, BMAC failed to provide any evidence supporting its financial ability to continue or expand its operations. BMAC argued that the Department’s tentative finding in Order 2008-2-3 with respect to financial fitness applied solely to its ability to conduct operations using large aircraft. We disagree. In Order 2008-2-3, the Department specifically stated that based on “BMAC’s poor financial history, its present financial condition, and the concerns raised by the FAA,” the air carrier lacked “the financial wherewithal to continue to operate.” This tentative finding applied to all of BMAC’s operations and was clearly supported by the financial information provided by the air carrier. Because BMAC has failed to demonstrate its financial fitness to operate, the Department maintains that the air carrier is not financially fit to continue to conduct any air transportation regardless of aircraft size.

The Department concludes that BMAC is not fit to conduct operations as a U.S. certificated air carrier and denies BMAC’s request to maintain its certificate authority to operate small aircraft to facilitate the sale of the company to Maine Aviation. Thus, the Department revokes the interstate scheduled certificate authority issued to BMAC and dismisses its applications for foreign scheduled and exemption authority.

By: Michael Reynolds


 

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