PSA Airlines, Inc. d/b/a US Airways Express

OST-2003-16813 - Certificate of Public Convenience and Necessity -Foreign Scheduled

December 24, 2003

Application for a Certificate of Public Convenience

PSA Airlines, Inc., a commuter air carrier based in Vandalia, Ohio, respectfully submits this application for a Certificate of Public Convenience and Necessity authorizing it to engage in foreign scheduled air transportation of persons property and mail with large aircraft, operating as US Airways Express, pursuant to 49 U.S.C. § 41102, Subpart B of the Department's Procedural Regulations (14 CFR Part 302, Subpart B) and Section 204.3 of the Department's Economic Regulations (14 CFR § 204.3).

Counsel: US Airways, Elizabeth Lanier

Interstate Application - OST-03-16812

February 10, 2004

Amendment to Application

On December 24, 2003, PSA Airlines, Inc., a commuter air carrier based in Vandalia, Ohio, filed an application in this docket for a Certificate of Public Convenience and Necessity authorizing it to engage in foreign scheduled air transportation of persons property and mail with large aircraft, operating as US Airways Express, pursuant to 49 U.S.C. § 41102, Subpart B of the Department's Procedural Regulations (14 CFR Part 302, Subpart B) and Section 204.3 of the Department's Economic Regulations (14 CFR § 204.3).

PSA hereby amends that application, in accordance with 14 CFR § 201.4(e), to specify that it proposes to provide service between a point or points in the United States and a point or points in Canada. The proposed service is consistent with the 1997 Air Transport Services Agreement between the United States and Canada.

Counsel: US Airways, Elizabeth Lanier

Order 04-03-32
OST-03-16812 - Interstate Scheduled Passenger
OST-03-16813 - Foreign Scheduled Passenger

Issued March 29, 2004 | Served April 1, 2004

Order Issuing Interstate Certificate of Authority

PSA is an operating commuter air carrier. The carrier is a wholly owned subsidiary of US Air Group, a publicly-held Delaware corporation that also owns the certificated air carriers US Airways, Allegheny Airlines, and Piedmont Airlines.  The company currently provides scheduled passenger service to 35 cities throughout the Eastern and Midwestern United States and to Canada, operating 24 32-seat Dornier 328 turboprops and 6 50-seat CRJ-200 regional jets.  All of PSA’s operations are provided under the trade names of US Airways Express and US Air Express on behalf of US Airways. 

According to the proposed aircraft delivery schedule, PSA expects to take delivery of 25 70-seat CRJ-701s beginning in February 2004 through the first quarter of 2005 and anticipates the “pre-operating period” to be from January through March 2004, with expected revenue service for the new aircraft to begin in April 2004. The carrier states that the new aircraft will be leased from US Airways.  Furthermore, PSA intends to continue to operate, from its base in Dayton, Ohio, scheduled passenger service throughout the Eastern and Midwestern United States and to Canada.  The company anticipates using these new aircraft to replace its existing turboprops and to enter into denser markets previously served only by US Airways. In addition to these 70-seat regional jets, PSA plans to add up to 51 new 50-seat regional jets to its aircraft fleet during the same period. 

The company has provided detailed forecast financial statements for its first year of large aircraft operations, along with a pre-operating expense forecast for these aircraft.   Based on the forecasts submitted, PSA estimates it will incur approximately $7.3 million in pre-operating expenses to add the 70-seat regional jets to its fleet and projects that it will incur first-year expenses for these large aircraft operations of approximately $87.5 million.  We have reviewed the forecast pre-operating and first-year operating expenses and believe them to be reasonable.  Thus, PSA will need approximately $29.2 million to meet the Department’s financial fitness test. Given the company’s relationship with Group, Group has agreed to fund PSA’s pre-operating expenses, as well as the additional expenses related to the operations of the 70-seat regional jets.

By: Karan Bhatia

Order 04-05-22
OST-03-16813 - Foreign Scheduled Passenger

Issued March 29, 2004 | Served May 28, 2004

Order Issuing Foreign Certificate Authority | Word

By Order 2004-3-32, issued March 29, 2004, we found PSA Airlines, Inc. d/b/a US Airways Express d/b/a US Air Express fit, willing, and able to engage in interstate and foreign (U.S.-Canada) scheduled air transportation of persons, property, and mail. By that order, we issued a certificate of public convenience and necessity authorizing PSA to engage in interstate scheduled air transportation.

By this order, we are issuing a companion certificate to PSA, authorizing it to engage in foreign scheduled air transportation between the United States and Canada. Instead of repeating our findings and conclusions in Order 2004-3-32, we incorporate them here by reference.

By: Karan Bhatia

Order 04-03-32
OST-03-16812 - Interstate Scheduled Passenger
OST-03-16813 - Foreign Scheduled Passenger

Issued March 29, 2004 | Served June 4, 2004

Order Issuing Interstate Certificate of Authority - Erratum | Word

Order 2004-3-32, served April 1, 2004, issued PSA Airlines, Inc. d/b/a US Airways Express d/b/a US Air Express a certificate of public convenience and necessity authorizing PSA to engage in interstate scheduled air transportation. Condition (3) to the Terms, Conditions, and Limitations attached to that certificate incorrectly refers to PSA’s parent company as "US Air Group, Inc.," instead of "US Airways Group, Inc." Attached is a corrected interstate Certificate and Terms, Conditions, and Limitations for PSA.

By: Randall Bennett

Order 04-05-22
OST-03-16813 - Foreign Scheduled Passenger

Issued March 29, 2004 | Served June 4, 2004

Order Issuing Interstate Certificate of Authority - Erratum | Word

Order 2004-5-22, served May 28, 2004, issued PSA a certificate of public convenience and necessity authorizing PSA to engage in foreign scheduled air transportation between the United States and Canada. The foreign Certificate and attached Terms, Conditions and Limitations issued by Order 2004-5-22 contained several errors. Specifically, the Certificate (1) does not reflect the route number (Route 819) assigned to the certificate; and (2) incorrectly reflects the effective date of the authority. In addition, Condition (3) to the Terms, Conditions, and Limitations incorrectly refers to PSA’s parent company as "US Air Group, Inc.," instead of "US Airways Group, Inc." Attached is a corrected Certificate for Route 819 and Terms, Conditions and Limitations.

By: Randall Bennett