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OST-2003-16774 - Ameristar Air Cargo d/b/a Ameristar Charters - Foreign Charter Passenger Certificate
OST-2003-16773 - Ameristar Charters - Interstate Charter Passenger Certificate
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Ameristar Air Cargo, Inc. d/b/a Ameristar Charters OST-2003-16774 - Certificate of Public Convenience and Necessity - Foreign Passenger Charter Air Transportation December 19, 2003 Application for a Foreign Certificate of Public Convenience and Necessity Ameristar respectfully requests that the Department issue a certificate of public convenience and necessity to Ameristar authorizing it to provide foreign charter air transportation of persons between points in the United States and points in various foreign countries, as described herein, and that Ameristar be granted such additional or other authority, consistent with this application, as the Department may deem necessary or appropriate. Ameristar further requests that such authority be granted in time to enable Amenstar to commence foreign charter passenger operations on or about February 1, 2004. Counsel: Shaw Pittman, Sheryl Israel, 202-663-8312
OST-2003-16773 - Interstate Certificate of Public Convenience and Necessity - Charter Passenger December 19, 2003 Motion for Confidential Treatment Pursuant to Rule 12 Counsel: Shaw Pittman, Sheryl Israel, 202-663-8312
OST-2003-16773 - Interstate Certificate of Public Convenience and Necessity - Charter Passenger March 31, 2004 Supplement No. 1 to Application As noted in Ameristar' s application, Ameristar intends to operate single entity passenger charters, such as corporate shuttles and charters for sports teams and entertainment industry customers. Given the unpredictable nature of these charters, Ameristar is unable to identify the specific geographic area of operation, but does expect that the majority of operations will be in North America. Ameristar does not expect to incur incremental costs relating to the maintenance of the B737 aircraft used for its proposed passenger charters. Maintenance costs are included in the forecast aircraft expenses, and Ameristar does not anticipate hiring additional mechanics. Routine maintenance will be handled either in house by mechanics currently employed by Ameristar or contracted out to qualified maintenance personnel, and heavy maintenance checks will be contracted out. Counsel: Shaw Pittman, Sheryl Israel, 202-663-8312, sheryl.israel@shawpittman.com
OST-2003-16773 - Interstate Certificate of Public Convenience and Necessity - Charter Passenger April 22, 2004 Motion of USA Jet Airlines for Leave to Late File and Answer to Supplement No. 1 Ameristar has failed to provide, even in its recent Supplement, certain financial information required by the regulations. Specifically, section 401.3(k) requires an applicant to provide balance sheets and profit and loss statements for the past three years for each relevant corporation. The original application and Supplement together, however, contain only the bare‑bones Form 41 data for Ameristar Air Cargo one year. Moreover, USA Jet submits that the reports are a poor substitute for the financial statements required by the rules. These reports do not conform to the requirements of Part 204, in that they do not describe the accounting qualifications of the preparer, do not describe the 'significant accounting policies of each relevant corporation," do not describe "significant events" since the last financial statement, and do not state whether they comply with Generally Accepted Accounting Principles. Nor do they contain footnotes, as do audited financial statements, that provide some of the most useful information relevant to an applicant's financial condition. Moreover, these statements apply only to Ameristar Air Cargo, Inc. The applicant has disclosed, however, that there are at least two other relevant corporations - Ameristar Jet Charter, Inc., and Ameristar Airways, Inc. All three companies are under common ownership and management; therefore, the information required of "relevant corporations" should have been submitted for them as well. The net result of these deficiencies is that the Department does not have a sufficient basis for determining whether the applicant will have adequate resources to maintain its operations without undue risk to the public. As detailed below, there is some reason to believe that it will not. Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513
OST-2003-16773 - Interstate Certificate of Public Convenience and Necessity - Charter Passenger May 6, 2004 Re: Reply of Ameristar Air Cargo d/b/a Ameristar Charters Ameristar urges the Department to reject USA Jet's late-filed Answer outright. USA Jet had more than ample opportunity to comment in a timely manner on the substance of Ameristar's December 19, 2003 application. USA Jet has failed to establish good cause for its delay. Moreover, USA Jet did not limit the scope of its comments to the supplemental information filed by Ameristar on March 31, 2004. Counsel: Shaw Pittman, Sheryl Israel, 202-663-8312, sheryl.israel@shawpittman.com
OST-2003-16773 - Interstate Certificate of Public Convenience and Necessity - Charter Passenger May 17, 2004 Motion of USA Jet Airlines for Leave to File and Surreply USA Jet provided documented information concerning a $2.4 million verdict against Ameristar Jet Charters that had not been disclosed in Ameristar's application or supplement. Ameristar characterizes this information as "egregious and irresponsible," as well as "factually inaccurate." Despite its overheated invective, however, Ameristar does not refute the substance of USA Jet's assertions. Its recitation of the facts is consistent with USA Jet's description. Most importantly, Ameristar did not explain why it had not seen fit to disclose to the Department the pendency of this very large lawsuit (which was filed in October 2003 and contained serious allegations) as required by the rules. USA Jet is not attempting to nit‑pick or create a case out of instances of technical noncompliance. Rather, Ameristar has, in its application, its amendment, its motion to withhold and its reply, demonstrated what we believe to be a pattern of willful non‑disclosure, if not concealment, of highly relevant and legally required information. The public interest requires that the Department undertake a very serious inquiry into the carrier's fitness to continue to hold any economic operating authority, much less expand that authority into passenger service. Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513
OST-2003-16773 - Interstate Certificate of Public Convenience and Necessity - Charter Passenger May 26, 2004 Motion for Leave to File and Rejoinder USA Jet's other allegations, including for example, its erroneous critique of Ameristar's forecast income statement are nothing more than an attempt to keep a competitor from the marketplace. Ameristar's exhibits are in more than sufficient detail to enable the Department to evaluate fully Ameristar's financial capability to operate the proposed passenger services. The Department does not need instruction from USA Jet about how to conduct a fitness evaluation for already certificated operators like Ameristar that seek to expand their DOT authority. Ameristar has complied with the fitness submission requirements under Part 204 and will continue to provide the Department with whatever information the Department determines it needs to make its fitness findings. Counsel: Shaw Pittman, Sheryl Israel, 202-663-8312, sheryl.israel@shawpittman.com
OST-2003-16773 - Interstate Certificate of Public Convenience and Necessity - Charter Passenger June 22, 2004 After further review of the applications of Ameristar Air Cargo, Inc. d/b/a Ameristar Charters for interstate and foreign passenger authority, we find that some additional information is needed in connection with our consideration of the company's request for additional authority. That information is set out in the enclosed Information Request. We apologize to the extent that some of this information was not requested earlier. By: Air Carrier Fitness, Vanessa Wilkins
OST-2003-16773 - Interstate Certificate of Public Convenience and Necessity - Charter Passenger
July 30, 2004 Ameristar operated approximately 1,723 flight legs and 2,692 flight hours during the 12 month period ending May 31, 2004. Ameristar forecasts 50 block hours per month (per aircraft) for its passenger operations based on its expectations of passenger charter demand during the first 12 months. Ameristar believes that this estimate is entirely realistic and consistent with prevailing market conditions, and takes into account differences between operating cargo versus passenger charters. Counsel: Shaw Pittman, Sheryl Israel, 202-663-8312, sheryl.israel@shawpittman.com
July 30, 2004 Motion for Confidential Treatment Counsel: Shaw Pittman, Sheryl Israel, 202-663-8312, sheryl.israel@shawpittman.com
OST-2003-16773 - Interstate Certificate of Public Convenience and Necessity - Charter Passenger
September 15, 2004 Letter Regarding Request for Confidential Information We will grant confidential treatment to Confidential Exhibit 2 - Current Balance Sheet and Income Statement for AJC. We granted such treatment to similar documents in connection with the applicant's initial applications in previous dockets and we see no reason not to do so here. We agree with Ameristar that its aircraft lease and management agreement (Confidential Exhibit 4) meets the Department's criteria for confidential treatment with one exception. We will deny confidential treatment to the page in Confidential Exhibit 4 entitled "Aircraft Dry Lease and Management Agreement and related information" which contains Ameristar's responses to Questions 5(c), 5(d), and 5(e) to the Department's June 22, 2004, letter. We find that this material is the type that would normally be included in the public record and that Ameristar has not provided information explaining how its release could cause the carrier such harm that it merits confidential treatment. Finally, we will grant confidential treatment to Exhibit 6 which is a forecast income statement for its on-going cargo operations. Since Ameristar is an operating air carrier, we believe that release of this information could cause it competitive harm. Likewise, we will also grant confidential treatment to Exhibit 8, which is a combined passenger/cargo forecast. While, in other circumstances, we may be inclined to place such a forecast in the public record, doing so here would have the effect of divulging Ameristar's plans for its on-going cargo operations, information for which we have already decided to grant confidential treatment for in Exhibit 6. By: Patricia Thomas
September 15, 2004 Ameristar was advised by the FAA on August 27, 2004 that it successfully completed proving runs and that upon issuance of economic authority by the Department, the FAA will issue amended Operations Specifications granting Ameristar the authority to operate the B‑737 aircraft (N742TW) in supplemental passenger carrying operations. This application has been pending since December 19, 2003. Ameristar has submitted extremely detailed information and has conclusively demonstrated its fitness for the modest expansion of its operations to conduct single-entity passenger charters, initially with only one B-737 aircraft. Ameristar has the financial wherewithal, as well as managerial qualifications and compliance disposition to commence the proposed passenger charter service. Ameristar currently operates only three cargo aircraft, and is seeking the authorization, initially, to add only one additional aircraft for its proposed single-entity passenger charter service. Ameristar has successfully completed proving runs, and has flight attendants and pilots on its payroll, ready to operate this service as soon as authorized by the Department. Counsel: Shaw Pittman, Sheryl Israel, 202-663-8312, sheryl.israel@shawpittman.com
OST-2003-16773 - Interstate Certificate of Public Convenience and Necessity - Charter Passenger September 23, 2004 Pursuant to the Department's September 15, 2004 letter regarding Ameristar's request for confidential treatment of documents, attached is a copy of the page in Confidential Exhibit 4 with responses to Questions 5(c), 5(d), and 5(e) from the Department's June 22, 2004 Information Request Counsel: Shaw Pittman, Sheryl Israel, 202-663-8312, sheryl.israel@shawpittman.com
OST-2003-16773 - Interstate Certificate of Public Convenience and Necessity - Charter Passenger October 25, 2004 We are progressing in our review of Ameristarts application for passenger authority, but we need updated status information on the Cobbs case and the Cherry Air case. Here's a recent status report regarding these two cases: Cherry Air - There was a hearing on Ameristar Jet Charter's Motion for Summary Judgment (along with several discovery motions) on October 21, 2004. The Judge has not yet ruled on the Motion for Summary Judgment or the other motions. The Case is Currently set for trial in the spring. Cobbs - AJC filed a notice of appeal on October 8, 2004, and has posted a bond in this case. I have been advised that the Plaintiff cannot execute on the judgment pending the appeal process. AJC is now waiting for the appellate court to issue a briefing schedule. The case is in the Fifth District Court of Appeals. The case will be briefed and oral arguments heard. AJC's counsel believes that the appeal will take at least one year, although it is not uncommon for the appeal process to take up to two years (which does not include time estimate for further appeal to the Texas Supreme Court). Counsel: Shaw Pittman, Sheryl Israel, 202-663-8312, Sheryl.Israel@shawpittman.com
Order 2005-1-11 Issued and Served January 11, 2005 Order to Show Cause - Proposing Issuance of Certificate Authority | Word Ameristar currently operates three cargo aircraft. Ameristar has entered into an agreement with an unrelated company that provides for Ameristar to manage a passenger aircraft for that company and to lease the aircraft to conduct its own charter operations when not in use by the owner. In its application, Ameristar proposes to commence passenger charter operations using this 46-seat B-737 aircraft and to add two more B-737 aircraft during the first 12 months of operations. Using these aircraft, the carrier proposes to conduct single entity charters, primarily corporate shuttles and for sports and entertainment industry customers. Ameristar forecasts that it will operate a modest 50 block hours per aircraft per month for a total of 850 block hours during its first year of passenger operations By: Karan Bhatia
OST-2003-16773 - Interstate Certificate of Public Convenience and Necessity - Charter Passenger
January 25, 2005 Comments of Ameristar Air Cargo d/b/a Ameristar Charters to Order to Show Cause For the reasons set forth below, Ameristar urges the Department to, at a minimum, authorize Ameristar to operate at least a total of six aircraft, to include five cargo aircraft, plus at least one passenger aircraft (and up to a maximum of three passenger aircraft, consistent with Ameristar's application), and not limit the duration of the certificates issued to Ameristar to one year. The Show Cause Order proposes to limit Ameristar to a total of only four aircraft, a proposed condition that Ameristar believes resulted from a misunderstanding bout Ameristar's level of operations, which currently consists of four cargo aircraft, and as of March 1, 2005, subject to approval, will consist of five cargo aircraft. The Department stated in the Show Cause Order that the condition limiting the number of aircraft to four would not burden Ameristar because the Department believed that Ameristar did not have specific plans to operate more than three cargo aircraft. In fact, Ameristar does have firm plans to operate five cargo aircraft. The Show Cause Order further indicates that the Department is tentatively proposing to impose these conditions and limitations based on earlier concerns expressed by the Federal Aviation Administration as to whether Ameristar key personnel may be "overburdened" and whether Ameristar has sufficient staff available to support the key personnel as the airline moves ahead with its projected modest growth. It is Ameristar' s understanding that subsequent to issuance of the Show Cause Order, the FAA Manager of the Southwest Region Flight Standards Division contacted the Department to provide updated information and that the FAA supports Ameristar's plans to operate five cargo aircraft, plus at least the one passenger aircraft. Counsel: Shaw Pittman, Sheryl Israel, 202-663-8312, sheryl.israel@shawpittman.com
January 25, 2005 The former Ameristar employees who successfully sued the company on whistleblower claims ‑alleging falsification of maintenance records, lying to the FAA, overuse of pilots' flight and duty restrictions and violations of numerous FARs ‑ should all be consulted on the issue of whether Ameristar is likely to adhere to passenger rules. The former employee that sued Ameristar and obtained a large judgment against Ameristar ‑ due to its malicious conduct ‑ should be consulted to inquire as to whether Ameristar has sufficiently honest business practices with which to assure the DOT of its commitment to regulatory compliance. And if the DOT is to take a "leap of faith" and give Ameristar the benefit of the many significant doubts raised by the record in this case, it should first, and carefully, consider the very recent words of the Department of Labor Administrative Law Judge Clement J. Kennington in the case of Clemmons v Ameristar (below) ‑ finding the sworn testimony of the President and other Key Management officials of Ameristar to be "wholly incredible," "inconsistent," "illogical" and "purely pretextual." Counsel: USA Jet, Donald McNeff
OST-2003-16773 - Interstate Certificate of Public Convenience and Necessity - Charter Passenger February 1, 2005 Answer of Ameristar Air Cargo d/b/a Ameristar Charters to Objection of USA Jet Airlines USA Jet's Objections essentially repackaged the same allegations it previously raised in its answer to Ameristar's application. The Department has already considered those claims in reaching its determination to find Ameristar fit, willing and able to provide passenger charter service. In an effort to assert something new, USA Jet's Objections focus on a recent decision issued by a Department of Labor Administrative Law Judge in connection with a longstanding complaint filed by Thomas Clemmons, a former employee of Ameristar's sister companies, Ameristar Airways, Inc. and Ameristar Jet Charter, Inc., alleging improper termination. The ALJ concluded that the employee is entitled to $56,746.23 in back pay plus costs and fees. In fact, in its Comments filed on January 25, 2005, Ameristar specifically mentioned this decision in order to update the record. USA Jet continues its misplaced campaign to stymie competition by preventing or delaying Ameristar's ability to offer passenger charter service. USA Jet should not be permitted to use the Department's regulatory processes for its competitive advantage by delaying or preventing competition by Ameristar. Counsel: Shaw Pittman, Sheryl Israel, 202-663-9312, sheryl.israel@shawpittman.com
OST-2003-16773 - Interstate Certificate of Public Convenience and Necessity - Charter Passenger February 17, 2005 Motion for Leave to File and Reply of USA Jet Airlines While some of these matters are still pending, even a casual observer must at least entertain grave doubts about a corporate family that seems to attract so many serious charges from inside and outside. The pattern formed by these charges strongly suggests a company that lacks the regard for legal and regulatory compliance that the Department expects from carriers entrusted with transporting members of the public and their goods. In light of the continuing doubts about Ameristar's fitness to hold authority to transport passengers (or, indeed, to hold any certificate at all), USA Jet reiterates its request to deny the authority tentatively granted in the show‑cause order, and to investigate the continuing fitness of Ameristar to hold a certificate of public convenience and necessity. Alternatively, if the Department is not prepared to deny the application, this is precisely the kind of case that would merit an oral evidentiary hearing to uncover critical facts and evaluate the good faith of Ameristar's management. Counsel: USA Jet, Donald McNeff
OST-2003-16773 - Interstate Certificate of Public Convenience and Necessity - Charter Passenger February 18, 2005 The Department has already had more than sufficient opportunity to consider each and every item raised by USA Jet. Ameristar has previously addressed the issues raised by USA Jet. Notwithstanding USA Jet's efforts to paint its competitor, Ameristar, in an unfavorable light, Ameristar remains fit, willing and able to conduct passenger charters and Ameristar will strictly adhere to all applicable requirements of the Transportation Code. Ameristar has the right to contest allegations that are not supported by the evidence. Contrary to USA Jet's assertions, Ameristar should not be criticized for exercising those rights. Defending itself against such allegations does not undermine and should not reflect negatively on Ameristar's strong commitment to comply with the Transportation Code and the applicable regulations. Counsel: Shaw Pittman, Sheryl Israel, 202-663-8312, sheryl.israel@shawpittman.com
Order 2005-4-10 Issued and Served April 8, 2005 In addition to the five cargo aircraft, Ameristar urges the Department to allow it to operate one executive-configured B-737 aircraft in its passenger charter operations, up to a maximum of three passenger aircraft, and asserts that it has sufficient financial resources to commence such operations. While we agree that Ameristar is fit to conduct the passenger operations it proposes, we continue to find it appropriate to limit Ameristar to the use of one passenger aircraft at this time. The FAA has notified the Department that it is prepared to support Ameristar's plans to operate one passenger aircraft. Also, although the FAA has approved Ameristar's key personnel required by 14 CFR Part 119, we continue to find that Ameristar's management team lacks demonstrated passenger operations experience necessary to support a broader growth of authority at this time. Should Ameristar wish to operate more than one passenger aircraft in the future, the carrier may request such authority after demonstrating its managerial and financial fitness to conduct expanded operations. USA Jet has raised various concerns regarding the compliance disposition of Ameristar‑related companies. While each of these issues raises concerns, we note that each has been or is now being addressed in an appropriate forum, and that the applicant itself has no prior history of violating the rules and regulations governing its existing operations. As we have earlier determined, the nature of this information is not such as to warrant a negative finding or to conclude that the applicant lacks the proper compliance disposition. However, we again caution the applicant that in all future filings with the Department, it must take care to provide complete, timely, and accurate information. Moreover, as noted earlier, we intend to monitor the carrier's operations closely for the foreseeable future. Should any information come to our attention regarding Ameristar or related companies that brings into question its continuing fitness to operate, we will not hesitate to initiate a review of the carrier's fitness and take whatever action may be necessary as a result. By: Karan Bhatia
Order 2005-6-18 Issued June 30, 2005 | Served July 6, 2005 Order Issuing Foreign Certificate By Order 2005-4-10, issued April 8, 2005, we found Ameristar Air Cargo, Inc. d/b/a Ameristar Charters fit, willing, and able to engage in interstate and foreign charter air transportation of persons, property, and mail. By that order, we issued a certificate of public convenience and necessity authorizing Ameristar to engage in interstate charter air transportation of persons, property, and mail. By this order, we are issuing a companion certificate authorizing Ameristar to engage in foreign charter air transportation of persons, property, and mail. Instead of repeating our findings and conclusions in Order 2005‑4‑10, we incorporate them here by reference. We direct that should Ameristar Air Cargo, Inc. d/b/a Ameristar Charters wish to operate more than five cargo aircraft or more than one passenger aircraft, it must first provide the Department with at least 45-days' notice and demonstrate its fitness for such operations. By: Karan Bhatia
OST-2003-16773 - Certificate of Public Convenience and Necessity - Interstate Charter Passenger
August 9, 2005 Re: Request for Waiver - Bookmarked Ameristar would like to begin advertising and selling its charter air transportation services as soon as possible, without having to wait a full six business days after it receives its FAA operating authority before its certificate authority from the Department will become effective. Accordingly, Ameristar requests that the Department grant it a waiver from the six business day restriction, and that the Department make Ameristar's certificate authority for passenger charters effective immediately. Granting such a waiver would be consistent with Department precedent, and would be in the public interest of facilitating the start‑up of new passenger charter services, thereby enhancing competition and providing the traveling public with additional service opportunities. Counsel: Hogan & Hartson, Sheryl Israel, 202-637-8898, sisrael@hhlaw.com
August 9, 2005 Motion for Confidential Treatment The information that is the subject of this motion includes non-public commercially sensitive information, including financial data and proprietary agreements relating to Ameristar and to Ameristar's sister company, Ameristar Jet Charter, Inc., which, if publicly released, could cause Ameristar and AJC substantial competitive harm. It incorporates private, commercial, competitively sensitive and financial information of a type that is not usually disclosed to the public and would not, in this case, be disclosed to the public by Ameristar or by AJC. Rather, it is being provided to the Department on a confidential basis solely in support of Ameristar's Application. Specifically, Ameristar seeks confidential treatment of:
Counsel: Hogan & Hartson, Sheryl Israel, 202-637-8898, sisrael@hhlaw.com
Order 2005-8-8 Issued and Served August 15, 2005 Order Confirming Oral Action and Issuing Effective Certificates By this order we (1) confirm our oral action taken with respect to Ameristar Air Cargo, Inc. d/b/a Ameristar Charters, and (2) reissue to the carrier its 41102 certificates authorizing it to engage in interstate and foreign charter air transportation to reflect their effective dates. By: Randall Bennett
OST-2003-16773 - Certificate of Public Convenience and Necessity - Interstate Charter Passenger February 10, 2006 Application for Renewal of Certificates of Public Convenience and Necessity Ameristar hereby applies for renewal of its certificates of public convenience and necessity to engage in interstate and foreign charter air transportation of persons pursuant to 49 U.S.C. §41102. Ameristar requests that these certificates be renewed and re-issued for an indefinite duration. Since issuance of the effective certificates, Ameristar has operated various sports team charters, corporate charters, and other single-entity charters. Ameristar continues to operate one Boeing 737 aircraft with 56 seats in an executive seating configuration. Ameristar has been marketing its passenger services and forecasts strong growth potential. However, Ameristar is unable to develop its passenger charter business to its full potential and is operating at a competitive disadvantage in the marketplace because of the one year limitation in its certificates. Many potential customers seek long-term commitments to meet their transportation needs. Sports teams and other potential customers secure charter contracts well in advance, and require firm commitments to ensure that their transportation needs will be met throughout an entire season. Many of the business opportunities available to Ameristar involve charters to be operated after the expiration date of its passenger authority. In order for Ameristar to meet the needs of these customers and provide firm assurances that it can fulfill their transportation requirements both in the short-term and in the long-term, it is imperative that Ameristar's underlying certificates be issued for an unlimited duration. Absent renewal of its certificates as requested, Ameristar stands to lose critical business opportunities and will be impeded in its efforts to develop and grow a profitable passenger charter operation. Counsel: Hogan & Hartson, Sheryl Israel, 202-637-8898, sisrael@hhlaw.com
OST-2003-16773 - Certificate of Public Convenience and Necessity - Interstate Charter Passenger August 7, 2006 Supplement No. 1 to Application for Renewal of Certificates of Public Convenience and Necessity Since filing the renewal application in this docket, there have been no substantial changes in management, compliance disposition, operating plans, or financial position, other than as described herein. Ameristar currently has 58 full-time and 3 part-time employees. By letter dated June 8, 2006, the DOT Air Carrier Fitness Division approved Ameristar's request to add one passenger aircraft to its fleet, bringing its total fleet to seven aircraft. Ameristar has not changed its underlying business strategy. This second passenger aircraft will be used as a back-up aircraft in the event that its other passenger aircraft is not available due to maintenance requirements or other unforeseeable circumstances, and further, to meet the increasing demand for its passenger charter services. Ameristar is not aware of any new FAA or DOT investigations that it has not previously disclosed. Ameristar has settled six FAA cases that had been pending. Ameristar is not aware of any other new cases against Ameristar or its affiliated companies. Attached hereto is a Balance Sheet and Income Statement, as of June 30, 2006. Ameristar continues to have the financial resources to support its ongoing operations. Ameristar requests that the Department renew its certificates of public convenience and necessity to carry persons and reissue the certificates on a permanent basis, and grant such other and further relief as the Department deems to be consistent with the public interest. Counsel: Hogan & Hartson, Sheryl Israel, 202-637-8898, sisrael@hhlaw.com
Order 2006-8-9 August 7, 2006 By Order 2005-8-8, issued August 15, 2005, the Department confirmed its oral action of August 10, 2005, making the section 41102 interstate and foreign charter certificate authority issued to Ameristar effective on that same date, and reissued to Ameristar the interstate and foreign charter section 41102 certificates issued to it by Order 2005-4-10 and Order 2005-6-18. respectively. Among the Terms, Conditions, and Limitations attached to its certificates was a requirement that the passenger authority issued to Ameristar was limited to a period of one year, i.e., until August 10, 2006. The Department determined that certain conditions, including the one-year passenger authority limit. were necessary to enable us and the FAA to determine that Ameristar had the management and other infrastructure needed before implementing any future expansion, and to monitor the ability of the company's management and personnel to comply with our passenger consumer rules. On February 10, 2006, Ameristar filed an application for a renewal of its Certificates of Public Convenience and Necessity. The company accompanied its application with updated fitness information. Specifically, the company filed a statement of Ameristar's positive compliance disposition with respect to FAA and DOT requirements; financial statements showing that Ameristar has the financial resources to support its passenger operations; a review of the management team's acquired competence; an overview of their passenger charter activities in their first year of operation; and a summary of anticipated operational changes in the coming year. Based on our review of the information, we find that Ameristar continues to be fit to conduct operations as a U.S. certificated air carrier. A review of our records and other information available to us has uncovered no information regarding Ameristar, its owners, or its key personnel that would preclude us from reissuing Ameristar's authority. In addition, the FAA has advised us that it sees no reason why Ameristar's certificate authority should not be amended to reflect the removal of its expiration date. Under these circumstances, we have decided to lift the company's one-year passenger authority restriction and reissue its certificates to reflect this change. In a related matter, on April 28, 2006, Ameristar notified the Department of its intent to operate one an additional passenger aircraft. At that time, Ameristar provided financial information to demonstrate its ability to support an additional aircraft. Our review of that information was satisfactory. By: Todd Homan |
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