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Updated: Monday, January 31, 2005 10:43 AM

OST-03-16716 - Blackstar Airlines - Certificate of Public Convenience - Foreign Scheduled Passenger

www.blackstarairlines.com/


Blackstar Airlines Corporation

OST-03-16716 - Certificate - Foreign Scheduled Air Transportation

December 12, 2003

Application for Issuance of a Certificate of Public Convenience and Necessity

Hereby applies for a certificate of public convenience and necessity to engage in foreign scheduled air transportation of persons, property and mail as further described herein. Blackstar is requesting certificate authority to engage in foreign scheduled air transportation of persons, property and mail, as follows: (a) between any point in the United States and any point in the Federal Republic of Germany; and (b) between any point in the United States and any point in France.

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

OST-03-16717 - Interstate Certificate


OST-03-16716 - Certificate - Foreign Scheduled Air Transportation
OST-03-16717 - Certificate - Interstate Scheduled Air Transporation

January 7, 2004

Re: Comments Relevant to Filing

The filing contains major errors. Exhibit BSA-200 (copy enclosed) fails to conform to generally accepted accounting principles in that, amongst other things, assets do not equal liabilities, net income is shown on the balance sheet, and no explanation is given for how retained earnings got to be ($435,835). The filing lacks a credible plan for raising funds. No investment banker is named, no letter nor plan from investment bankers as to how they plan to raise startup funds through the stock offering are included. The firm fails to mention having adequate financing even to get to the stock offering stage. No bank is mentioned nor any credit lines from any bank.

By: John Keady


OST-03-16716 - Interstate Scheduled Passenger Certificate
OST-03-16717 - Foreign Scheduled Passenger Certificate

January 29, 2004

Re: Ruling on Confidential Treatment

It is not the Department's practice to withhold from public disclosure information regarding an applicant's ownership, management, pre‑operating and first‑year operating cost forecasts, operating plans, and related statistics; nor is it our practice to withhold from public disclosure documents that contain information that is already publicly available from other sources. A review of the PPM indicates that much of the information contained therein is either already on the public record or is of the type and scope that the Department typically requires to be part of the public record in its fitness proceedings. Further, there is nothing in the nature of a PPM per se which would warrant a blanket grant of confidential treatment. Therefore, we cannot grant confidential treatment to the PPM in its entirety.

As a result, we ask that Blackstar carefully review its PPM and specifically identify that portion of the document that it believes contains proprietary information. When the applicant has identified these portions of the PPM for the Department, we will then review the matter and determine what portions, if any, should be granted confidential treatment and issue a ruling to that effect. If Blackstar does not specifically identify the information in the PPM it believes is proprietary within 10 days of this letter, we will deny confidential treatment to the document in its entirety.

By: Air Carrier Fitness, Patricia Thomas


OST-03-16716 - Certificate - Foreign Scheduled Air Transportation
OST-03-16717 - Certificate - Interstate Scheduled Air Transportation

March 1, 2004

Re: Information Request from Air Carrier Fitness

We have completed our initial review of the applications filed on December 12, 2003, by Blackstar Airlines, Inc. for the determination of its fitness to conduct scheduled passenger operations as a certificated air carrier.

An applicant for certificate authority is expected to be prepared to fully prosecute its application at the time it is filed. With respect to financial fitness, the applicant is required to provide historical and current financial data, together with a detailed forecast of its pre-operating costs and a pro-forma forecast profit and loss statement reflecting all revenues and expenses the applicant expects to earn/incur during its first year of scheduled passenger operations. In addition, the company must demonstrate that it has obtained all of the funding needed to meet our financial fitness test or, at a minimum, that it has a reasonable plan for doing so. While Blackstar has submitted a copy of its Private Placement Memorandum, it has not supplied detailed verifiable information to support its current financial condition, nor its ability to carry out the Private Placement. Typically, we expect an applicant to support its funding plans with, at a minimum, independent third-party verification of all funds currently available, together with other information relative to the status of its PPM.

By: Air Carrier Fitness, Trace Atkinson


OST-03-16716 - Certificate - Foreign Scheduled Passenger
OST-03-16717 - Certificate - Interstate Scheduled Passenger


April 1, 2004

Re: Request of an Additional 30 Days to Respond

Following up on our conversation yesterday afternoon by telephone, this will confirm that Blackstar Airlines, Inc. is requesting an additional thirty (30) days to respond to the Department's March 1 Information Request. Blackstar is finalizing the arrangements for its start-up financing, which will significantly affect its response to the Department's request for supplemental information. Under the new timetable, Blackstar would respond to the Department's request on or before April 30, 2004.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-973-7904, mlbenge@zsrlaw.com


April 1, 2004

Re: Letter Granting Request

We are in receipt of Blackstar Airline's April 1, 2004 request for an additional 30 days to respond to the Department's information request regarding its application for certificates of public convenience and necessity to engage in interstate and foreign scheduled air transportation. This letter is to inform you that we are granting your request. Accordingly, please provide us with a complete response to our information request of March 1, 2004 on or before April 30, 2004.

By: Trace Atkinson, Air Carrier Fitness Division


OST-03-16716 - Certificate - Foreign Scheduled Air Transportation
OST-03-16717 - Certificate - Interstate Scheduled Air Transportation

May 6, 2004

Re: Information Request

On April 1, 2004, Blackstar requested that the Department grant a 30‑day extension to file the information due March 31, 2004, which we granted that same day, extending the due date until April 30, 2004. To date, however, we have not received any further information or response from Blackstar. In order for the Department to determine whether the company is fit to engage in its proposed certificated air carrier operations, we again request that Blackstar submit a complete response to our March 1, 2004 Information Request (copy enclosed) within 14 days of the date of this letter. In the event such a response is not received by that date, we intend to dismiss Blackstar's applications without further notice.

By: Air Carrier Fitness, Patricia Thomas


OST-03-16716 - Certificate - Foreign Scheduled Air Transportation
OST-03-16717 - Certificate - Interstate Scheduled Air Transportation

July 15, 2004

Re: Intent to Dismiss Applications Barring Additional Information

On May 20, 2004, Blackstar provided a partial response to the Department’s March 1, 2004 Request for Additional Information. The materials submitted were deficient in several respects. The attached Information Request lists the areas where further information and/or clarification is necessary. I ask that you respond fully to this request within 30 days of the date of this letter. The original plus 6 copies of your response should be filed in Docket OST-2003-16717.

I remind you that the Department cannot successfully prosecute Blackstar’s incomplete applications for certificate authority. If we do not receive a complete response to the attached Information Request by August 15, 2004, we intend to Dismiss Blackstar’s applications without further notice.

By: Trace Atkinson, Air Carrier Fitness Division


OST-03-16716 - Certificate - Foreign Scheduled Air Transportation
OST-03-16717 - Certificate - Interstate Scheduled Air Transportation

August 23, 2004

Re: Letter Confirming Request for Extension

This letter confirms my earlier request for an extension until August 26, 2004, of the time to file a response to the letter addressed to the undersigned as counsel for Blackstar Airlines Corporation and filed with the Docket Section on July 16, 2004.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-973-7904, mlbenge@zsrlaw.com


OST-03-16716 - Certificate - Foreign Scheduled Air Transportation
OST-03-16717 - Certificate - Interstate Scheduled Air Transportation

August 25, 2004

Re: Letter Granting Requests for Extensions of Time

We are in receipt of Blackstar Airline’s emailed request received July 28, 2004 and docketed request dated August 23, 2004 asking for additional time to respond to the Department with information regarding its applications for certificates of public convenience and necessity to engage in interstate and foreign scheduled air transportation. This letter is to inform you that we are granting your requests. Accordingly, please provide us with a complete response to our information requests of March 1, 2004 and July 16, 2004 on or before August 26, 2004.

By: Trace Atkinson


OST-03-16716 - Certificate - Foreign Scheduled Air Transportation
OST-03-16717 - Certificate - Interstate Scheduled Air Transportation

November 2, 2004

Re: Letter Requesting James Morehead be Removed from List of Key Personnel

Please remove my name from the Blackstar Airlines Corp. List of Key Personnel. I am shown as Chief Pilot on Docket 16717 and 16716. I am no longer associated in any way with Blackstar Airlines and desire to have my name removed effective immediately, so that I pursue other opportunities.

I have notified Blackstar Airlines and Mr. Malcolm L. Benge, ESQ of Counsel who is Blackstar's attorney of record from previous filings.

By: James Morehead


OST-03-16716 - Certificate - Foreign Scheduled Air Transportation
OST-03-16717 - Certificate - Interstate Scheduled Air Transportation

December 8, 2004

Re: Request for Additional Information

In determining the fitness of a company to conduct scheduled passenger service, the Department examines the managerial competence of the applicant's key personnel to determine whether they have sufficient business and aviation experience to operate an airline, and whether the management team, as a whole, possesses the background and experience necessary for the specific kind of operations proposed. Blackstar's proposed operations are ambitious to say the least, contemplating the scheduled operation of six Boeing 747‑400 aircraft during its first year of operations.

We have serious reservations regarding the managerial expertise of Blackstar's proposed management team. The resumes submitted for Blackstar's management team are not illustrative of a team equipped to manage an airline of the size and scope contemplated. With the possible exception of Mr. Louis lacovo, the applicant's proposed Executive Vice President and Chief Financial Officer, none of Blackstar's management team appear to have the requisite level of business experience necessary for an operation of this size. In fact, according to the resume submitted for Mr. Giovanni Marra, Blackstar's Chairman, Chief Executive Officer, and sole board member, his business experience is limited to his having served in the capacity of pilot; he appears to have no executive experience whatsoever.

By: Air Carrier Fitness, Patricia Thomas


OST-03-16716 - Certificate - Foreign Scheduled Air Transportation
OST-03-16717 - Certificate - Interstate Scheduled Air Transportation

December 28, 2004

Re: Letter Confirming Request for an Extension of Time

This letter will confirm the request of Blackstar Airlines, Inc. for an extension of time to submit the information requested in the Department's letter dated December 8, 2004. Due to the holiday season, it is taking additional time to compile the data sought by the Department. Blackstar is requesting that it be granted until January 18, 2005 to provide the Department with the requested information.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-973-7904, mlbenge@zsrlaw.com


OST-03-16716 - Certificate - Foreign Scheduled Air Transportation
OST-03-16717 - Certificate - Interstate Scheduled Air Transportation

January 3, 2004

Re: Letter Granting Request for Additional Time to Respond

We are in receipt of Blackstar Airline's December 28, 2004 request for additional time to respond to the Department's information request regarding its application for certificates of public convenience and necessity to engage in interstate and foreign scheduled air transportation. This letter is to inform you that we are granting your request. Accordingly, please provide us with a complete response to our information request of December 8, 2004 on or before January 18, 2005.

By: Trace Atkinson


OST-03-16716 - Certificate - Foreign Scheduled Air Transportation

January 24, 2005

Withdrawal of Application

Hereby withdraws its application for a certificate of public convenience and necessity to engage in scheduled foreign air transportation of persons, property and mail. Blackstar filed its application on December 12, 2003. Although Blackstar has made significant progress building a management team, securing aircraft and raising the necessary financing to support its proposed services, a definitive agreement for funding has not been finalized. Blackstar anticipates that the level of financing required for its proposed operations will be in place later this year. When all of its funding arrangements are in order, Blackstar intends to re-apply to the Department for a certificate of public convenience and necessity. Blackstar views the withdrawal of its application as a temporary setback only, and will persevere in its effort to launch an airline offering premium service, additional employment opportunities and more non-stop flights, all of which are sorely needed in today's aviation industry.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-973-7904, mlbenge@zsrlaw.com


Blackstar Airlines Corporation

Order 05-01-24
OST-03-16716 - Certificate - Foreign Scheduled Air Transportation
OST-03-16717 - Certificate - Interstate Scheduled Air Transportation

Issued and Served January 27, 2005

Order Dismissing Applications

On December 12, 2003, Blackstar Airlines Corporation filed applications in Dockets OST-2003-16716 and OST-2003-16717 for issuance of certificates of public convenience and necessity to engage in interstate and foreign scheduled air transportation pursuant to 49 U.S.C. 41102.

On January 24, 2005, Blackstar filed a request to withdraw its applications.

In view of this, we have decided to dismiss the applications filed in Dockets OST-2003-16716 and OST-2003-16717 without prejudice.

By: Randall Bennett

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