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OST-2004-17171 - SkyLink Airways / MAXjet - Interstate Passenger Certificate
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SkyLink Airways, Inc. / MAXjet Airlines OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity February 20, 2004 SkyLink will offer low fare services in high density international markets, in less dense markets that have no U.S. airline service and in longer haul international markets where there is no non-stop or single U.S. airline service to the United States. It will work with LCC' s in the United States and in other regions of the world to provide low fare international services to secondary cities that cannot yet support non-stop or single plane service between the United States and foreign destinations. It will focus on routes where there are opportunities to integrate its services with cities and airports already identified as low fare points. For example, Stansted Airport near London has become a major low cost carrier airport. Baltimore is such an airport in the United States. SkyLink seeks a Certificate to operate in interstate transportation in addition to the certificate for foreign air transportation. This is to permit limited domestic operations in conjunction with its foreign air transportation business plan. SkyLink does not plan to be a domestic airline or compete in domestic markets. The legacy airlines have been withdrawing international non-stop services and withdrawing international destinations. None of the Big Six legacy airlines flies to Africa using its own aircraft. No Big Six legacy airline flies to the Arab countries in the Middle East despite a number of Open Skies Agreements and liberal arrangements. There are no legacy airline services to the countries of Eastern Europe that will shortly join the European Union. Except for Delta, no legacy airline flies to Russia or any of the countries that were formerly part of the Soviet Union. Services to many of the destinations that were formerly served in Europe have been withdrawn, except for code share services. And in the Pacific and South America, the legacy airlines are operating far fewer non-stop services to fewer non-stop destinations than previously served. One legacy airline has announced that it will withdraw many of its services to South America. It is time for new entrant airlines such as SkyLink to take up the challenge of providing low fare service to the public to take advantage of the more than 60 Open Skies Agreements and the many other liberal arrangements that the US has negotiated over the last fifteen years. SkyLink is in negotiations for wide‑body aircraft and will make a selection between Boeing and Airbus shortly. SkyLink would expect to receive its first aircraft late this year. It would expect to acquire ten additional wide‑body aircraft over the next several years either directly from the manufacturer or via one of the leasing companies that holds delivery positions on new Boeing or Airbus aircraft. At this point, SkyLink expects to receive one aircraft this year and five additional aircraft in 2005. The remaining aircraft would be delivered in 2006 or 2007. The total fleet at the completion of this phase of the business plan would be 11 wide‑body aircraft.
Counsel: SkyLink, William Kutzke, 202-257-0900
March 12, 2004 Re: Answer of SkyLink Aviation SkyLink Aviation, Inc. hereby Answers the application of SkyLink Airways, Inc. for a certificate of public convenience and necessity for interstate scheduled and charter air transportation pursuant to 49 USC 4112. SkyLink hereby expresses no view as to the qualifications of Applicant to hold a certificate of public convenience and necessity. However, SkyLink does oppose the Applicant's use of its trade name based upon the attendant confusion such use would cause to consumers as well as the harm to SkyLink's ongoing air transportation business in the United States. In light of the issues raised herein, SkyLink also opposes expedited action as requested by the Applicant in this proceeding. Among its various businesses is a Canadian airline subsidiary, SkyLink Express, that provides air transportation services to the United States from Canada. In addition, SkyLink has several affiliated U.S. companies one of which, SkyLink Travel, Inc., provides both individual and bulk rate air transportation ticketing services as travel agents and travel consolidators. SkyLink Travel, Inc. operates business locations in six major U.S. cities. SkyLink is also affiliated with a U.S. air transportation logistics provider that is involved in extensive airport and air transportation related matters worldwide. Counsel: The Wicks Group, Glenn Wicks, 202-457-7790
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity March 18 Re: Applications of SkyLink Airways, Inc. for Interstate and Foreign Scheduled Certificate Authority As you know, a primary aspect of a fitness determination is the ability of an applicant to fund its prospective air carrier services, as evidenced through a verifiable financing plan. In this connection, we expect an applicant to be able to 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 and verifiable plan for doing so. To this end, we would typically expect an applicant proposing to conduct a private or public stock offering to provide a copy of the offering document(s) and other evidence that it has taken clear, concrete steps towards such an offering. Further, to the extent that funds have already been raised by the applicant, we require independent, third-party verification of such. The current lack of supporting documentation for SkyLink’s financing plan, and, indeed, the lack of any stated plan, leaves SkyLink’s applications materially deficient in this critical fitness area. Thus, in order for us to continue our review of the applicant’s request for certificate authority, it is important that SkyLink first satisfactorily address this issue. To this end, we ask that SkyLink provide us with not only a summary of its finding plan(s), but also with a copy of its offering document(s), the identity and qualifications of the investment bankers or underwriters handling the offering for SkyLink, verification from the investment banker or underwriter as to the status of the offering(s),’ and independent, third-party verification of all funds currently on deposit in SkyLink’s name. By: Air Carrier Fitness, Patricia Thomas
March 26, 2004 Reply of SkyLink Airways to the Answer of SkyLink Aviation The Canadian Company that filed the answer acknowledges that DOT does not make public interest determinations regarding name similarity issues. See Order 2002-4-3. But the Canadian Company argues that the public "undoubtedly will be confused." and DOT must act. SkyLink Airways urges DOT to follow established practice and stay out of this issue in the absence of any clear consumer harm. To intervene would put DOT in the middle of everyday trademark issues where there is no need to be since there are established procedures to resolve these matters. In any event, SkyLink Airways is not engaged in the sale of air transportation to the public at the present time and there is simply no possibility of actual confusion. SkyLink Airways is proposing to operate wide body scheduled services in foreign air transportation between the United States and various foreign countries. It has been unable to find any indication that the Canadian Company is engaged in any such service. The various reservation systems that show scheduled wide body services in foreign air transportation do not show such services by the Canadian Company. There is a page attached to this filing which seems to suggest that the Canadian Company is not engaged in such service. It the page is accurate, even theoretical confusion seems highly unlikely. Based on the information in the Canadian Company Answer, there is concern about an affiliated logistics company. Based on the information available from the Center for Public Integrity, the affiliated logistics company is involved in contracts in Iraq. Whatever that Company is doing, it is not likely to create confusion in the US retail air transportation market. That Company is not in the retail market. Counsel: SkyLink Airways, William Kutzke, 202-259-0900
April 26, 2004 Motion for Leave to File and Answer of SkyLink Aviation SkyLink Travel Inc., an affiliate of SkyLink, provides both individual and bulk rate air transportation ticketing services as travel agents and travel consolidators in the United States. Applicant's statement that "there is simply no possibility of actual confusion" is not entirely correct. While Applicant correctly states that SkyLink does not sell its air transportation services to the retail, individual passenger, SkyLink and Applicant would share at least one common market, namely the travel agency community. Counsel: The Wicks Group, Glenn Wicks, 202-457-7790
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity May 26, 2004 Motion for Confidential Treatment The information sought to be withheld from public disclosures in these letters includes financial and/or commercial information of a privately‑held company that are not otherwise made public. By: Skylink, Kenneth Carlson, 571-246-5559
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity
July 6, 2004 Re: Update on the Application for a Certificate of Public Convenience and Necessity The purpose of this letter is to bring you up to date on the application of SkyLink Airways, Inc. for a Certificate of Public Convenience and Necessity. The application was filed on February 20, 2004. The application has been updated by letters filed April 19, 2004 and May 26, 2004. The overall business plan for SkyLink remains the same as set forth in the Company's original exhibits. SkyLink will be the first low cost international airline operating international services. Low Cost Carriers have developed into a major force in the US domestic market and in the ultra European market. These carriers are beginning to emerge in local and regional markets in Asia. SkyLink will be the first US international low cost airline. Mr. Stockbridge's entire career has been in the airline industry. He has held responsible positions at Pan American World Airways, Seaboard World Airlines, Peoples Express, and Presidential Airways in his earlier career. He served as President of Potomac Capital, an aircraft leasing Company. Finally, he was the founder of Gemini Air Cargo, Inc. and served as its President and Chief Executive Officer. Mr. Stockbridge is a U.S. citizen. Other than Centurion and Trans-Meridian, he does not hold any officerships, directorships, or shares of stock greater that 10% of the total voting stock outstanding, or any other interest in any air carrier. Counsel: SkyLink Airways, William Kutzke, 202-259-0900
July 6, 2004 Motion for Confidential Treatment Under Rule 12 Counsel: SkyLink, Amy Rogers, 571-246-5862
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity August 3, 2004 Re: Letter in Response to Motion for Leave to File and Answer of SkyLink Airways The purpose of this letter is to advise you that it is SkyLink Airways' intention to operate scheduled airlines services, following certification, under a marketing or d/b/a name that does not include SkyLink." The brand name that the Company will operate under has not yet been selected. The Company has contracted with the Richards Group, a firm that specializes in branding, to develop an appropriate marketing and brand name that can be trademarked in a large number of countries. Based on current plans, a marketing and brand name will he selected within the next 60 days. The DOT is not expected to issue a final Certificate of Public Convenience and Necessity with the next 60 days. In any event, the Company does not intend to market or sell under the SkyLink name. In the longer term, it is highly likely that the corporate name will be changed to reflect the marketing and brand name. In the meantime, the corporate name will not be used in marketing scheduled or charter services. Tickets and similar documents such as charter contracts will not use the SkyLink name. It would be my intention to file this letter and your response in the DOT dockets that relate to this proceeding. I contemplate that this letter and your response would constitute a withdrawal of SkyLink Aviation. Inc.'s objection to the certification of SkyLink Airways, Inc. and I would so represent to DOT. Counsel: SkyLink, William Kutzke, 202-257-0900
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity August 3, 2004 Re: Letter Withdrawing Objection to Certification We represent SkyLink Aviation, Inc. Based on the representations made on behalf of SkyLink Airways, Inc. in your letter dated August 3, 2004, in consideration for Airways not using the "SkyLink" mark (in any variation of spelling or capitalization) in connection with the sale or advertising of Airways’ goods or services, SkyLink Aviation, Inc. hereby withdraws its objection to the certification of Airways in DOT Dockets OST-2004-17171 and OST-2004-17172. This withdrawal of our objection is without prejudice to the reinstatement of the objection, at any time, if Airways commences using the name "SkyLink" in conjunction with any sales or advertising activity, or if Airways were to later seek DOT certificates that use "SkyLink" (in any variation of spelling or capitalization) as the marketing or brand name or otherwise deviated from the commitments set forth in the aforementioned letter. Counsel: Glenn Wicks, 202-457-7790
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity August 11, 2004 Re: Ruling on Motion for Confidential Treatment As the Enclosure to this letter shows, we have decided to grant confidential treatment to some, but not all, of the information for which such treatment is sought. In the past, we have granted confidentiality to details of an applicant’s revenue forecast and to traffic information (such as in Exhibit SKY-302) related to those markets that an applicant proposes to serve. Therefore, we have decided to do so here. We are also granting confidential treatment to documents and information (such as forecast cash flow statements) that the Department does not typically require an applicant for certificate authority to include with its application. However, it is not our practice to withhold from public disclosure information relating to the applicant’s pre-operating and first-year expense forecasts and/or current and historical financial statements. SkyLink has provided no compelling reason for us to deviate from our normal practices. We agree with SkyLink that premature release of the identity of and other information related to those individuals who are slated to hold key technical positions with SkyLink, but are currently employed elsewhere, could jeopardize their current employment. Thus, we will grant confidential treatment to the information in Exhibit SKY-501 for these individuals, provided, however, that the identity and other information relative to such individuals in this exhibit must be placed in the public record of the applicable dockets at the earlier of (a) such time as the individual becomes an actual employee (not consultant) of SkyLink or (b) such time as the individual’s involvement with SkyLink is otherwise generally publicly known. By: Patricia Thomas
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity August 11, 2004 Re: Response to DOT Letter Dated August 11, 2004 Counsel: SkyLink Airways, William Kutzke, 202-259-0900
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity August 17, 2004 In response to the request for additional information concerning SkyLink's financing plan, enclosed Exhibit SKY-902 sets forth the SkyLink financing plan as well as a letter from Lehman Brothers, Inc. describing the implementation of the plan. We also enclose Exhibit SKY-901 which summarizes the information contained in the applications for certificates authorizing interstate and foreign air transportation. SkyLink is continuing to evaluate its schedule plan for the April 2005 and beyond periods. The first market remains Baltimore-London. This route will be served through Baltimore-Washington International Airport and Stansted Airport in London.
Counsel: SkyLink Airways, William Kutzke, 202-259-0900
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity August 20, 2004 Re: Request to Grant Certification on an Expedited Basis | Word SkyLink is an applicant for certificates of Public Convenience and Necessity for interstate and foreign transportation. SkyLink has sought authority to serve countries that have “Open Skies” agreements with the United States and countries that are known to have open aviation relationships with the United States. With respect to the later countries, SkyLink has filed for certificate authority only to those countries where certificate authority has been readily granted by DOT to other applicants. To expedite the certification process, SkyLink requests that its authority for UK, Germany, France, Italy, the Netherlands, Austria, the Czech Republic, Slovakia, Taiwan, Costa Rica, Aruba, Chile and the Dominican Republic be granted first on an expedited basis. SkyLink requests the application for the other named countries be deferred until after initial certification. SkyLink will pursue its application for the other countries after certification. For your information, all of the above countries with the exception of the United Kingdom have "Open Skies" with the United States. The route that SkyLink proposes to operate to and from the Stansted Airport in the United Kingdom is permitted, and there should not be any issue with respect to the grant of that authority to SkyLink. Counsel: SkyLink Airways, William Kutzke, 202-259-0900
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity August 23, 2004 Re: Letter Requesting Reinstatement of Canada and Belgium on SkyLink's Application | Word This confirms our conversation of Friday morning; please reinstate Canada and Belgium on SkyLink’s application for certificate, these countries were unintentionally omitted from the list provided yesterday. Counsel: SkyLink Airways, William Kutzke, 202-259-0900
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity August 25, 2004 Re: Request for Additional Information This letter is in reference to the applications SkyLink Airways, Inc. filed in Dockets OST-2004-17171 and OST-2004-17172 requesting authority to engage in interstate and foreign scheduled air transportation of persons, property and mail. I have completed my initial review of SkyLink's application and supplemental information filed through August 20th and find that additional and/or clarifying information is necessary before we can process the application further. The attached Information Request sets out those areas where further information is needed from the applicant. SkyLink has requested authority for both interstate and foreign passenger operations. In this connection, it states that any interstate operations will be limited (at least initially) and intended to complement its foreign scheduled services. However, while the applicant has identified five illustrative foreign markets on which its service proposal is based, it has not identified or otherwise described the interstate markets upon which the service proposal (and revenue/expense projections) is based. Please provide such information. By: Vanessa Wilkins
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity August 25, 2004 Re: Response to Information Request For an interim period, SkyLink plans a limited charter service. It has been in touch with tour operators and individuals who specialize in selling charters. Charterers are reluctant to make any commitment until SkyLink has a certificate. Which commercial opportunities will be pursued depends on when SkyLink is certificated and what opportunities are available at that time. In the short run, after certification, any operations would be charters and would be conducted on an ACMI basis. The Company expects to commence scheduled operations on April 1, 2005. The reason for this date is that it is the start of the summer North Atlantic traffic season and slots at international airports are based on the summer and winter traffic seasons. A later certification date will adversely impact revenue. To mount a reasonable schedule for 2005, the Company expects to make every effort to stay on the implementation schedule set forth in the exhibits. There are no plans, at this time, to conduct scheduled service in interstate markets, except for markets that may be "tag ends" or "stub ends" of international flights. No specific interstate markets have been identified for regular scheduled service. But, the interstate certificate does provide world‑wide charter authority and is therefore essential. There could be some interstate markets that would make sense in the longer term but as noted below, the initial aircraft selected are not well suited to interstate services.
Counsel: SkyLink Airways, William Kutzke, 202-259-0900
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity August 31, 2004 Counsel: SkyLink Airways, William Kutzke, 202-259-0900
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity September 9, 2004 Motion for Confidential Treatment Under Rule 12 | Word The SkyLink PPM contains a significantly higher level of detail about SkyLink's business plan financial assumptions route choices and proposed passenger services than does a traditional financial disclosure document As a result, the Private Placement Memorandum is a document that is the very type that should not be disclosed to the public under the Freedom of Information Act, and there is no compelling public reason to disclose it based on policies of other federal and state agencies. It also provides levels of detail well beyond anything required by DOT regulations relating to fitness and initial certification. Nothing in the PPM is required for a concerned citizen to file comments on this certificate application. Because credible startup airlines are few and far between the PPM which serves as the foundation for a significant investment decision must contain extraordinary detail to be useful to top-tier investment funds SkyLink has retained Lehman Brothers, a leading investment bank in the airline sector, to act as placement agent for its launch financing and is speaking primarily to the leading _investment funds These funds in conjunction with Lehman Brothers are conducting detailed financial analysis of our cost drivers intellectual property and other innovations using the PPM as a base. Counsel: SkyLink, Amy Rogers, 571-246-5862
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity September 17, 2004 Re: Changes in Ownership and Key Personnel | Word In its initial application, SkyLink stated that there were no reportable compliance issues in response to sections 204.3(l), (m), (o), (p) and (q) of our rules for SkyLink, its owners or key personnel. We note, however, that the applicant has had some changes in its ownership and key personnel since its initial filings. State whether the compliance information provided initially applies to any new or changed owners or key personnel since filing its initial application. By: Amy Rogers
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity September 27, 2004 James C. Carlson will be joining the company as Vice President, Safety, Security and SOC effective October 4, 2004. His role will encompass the Director of Safety role under §119.65(a) of the Federal Aviation Regulations. Mr. Carlson brings a broad range of experience to SkyLink. He served as Director of Safety and Security at Gemini Air Cargo, Inc. and prior to that position supervised Dispatch Operations at Gemini and Midway Airlines, Inc. He completed the Embry Riddle Safety Program and served as the Chairman of the National Air Carrier Association Airline Safety Committee. Having an industry veteran managing these areas will be a substantial benefit to SkyLink and provide a high level of coordination with the FAA and the TSA. Counsel: SkyLink Airways, Amy Rogers, 202-259-0900
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity October 26, 2004 Re: Request for Additional Information SkyLink's operating proposal calls for it to obtain certification by December 2004 and conduct limited charter operations during December 2004 or the first quarter of 2006. However, the company has not provided any projected block hours for its charter operations during that period nor do the company's financial forecasts include projected revenues or expenses for such operations. SkyLink states that it has not provided such information because it is assuming that revenues from its charter flights will cover any expenses incurred. That may be the case, but since the Department does not generally consider revenues in establishing the financial resources needed to meet our financial test, in order for the Department to evaluate the expenses associated with this period of charter operations, the applicant will need to provide a revised forecast that includes a reasonable block hour forecast for charter services during this period as well as the revenues/expenses associated with such operations. We are not convinced that SkyLink's fuel projections are reasonable. Please provide further justification that SkyLink will be able to obtain fuel at $1.10 per gallon in 2005. If SkyLink is unable to substantiate its claims, we will require SkyLink to revise its projections to reflect current rates for fuel. By: Air Carrier Fitness, Vanessa Wilkins, 202-366-2999, vanessa.wilkins@ost.dot.gov
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity
November 2, 2004 Re: Request for Additional Information By: Vanessa Wilkins
November 2, 2004 Re: Response to Request for Additional Information Counsel: SkyLink, Amy Rogers, 571-246-5862, arogers@skylinkairways.com
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity November 2, 2004 Re: Response to Request for Additional Information | Word SKY-402 sets forth the pre-operating expense forecast of SkyLink. This was updated by SKY-402 (Rev). The policy of the Company with respect to start-up costs is to expense these costs as they occur. SKY-402 (rev 2) reflects and the earlier Exhibits upon which it is based reflect this policy. Expenses incurred prior to certification are all treated as cash costs. Office space and furniture are rented. Computers are expensed as they are acquired. This is permitted by GAAP. All capital costs as shown in SKY-402 have been expensed. Counsel: SkyLink Airways, William Kutzke, 202-259-0900
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity November 23, 2004 Re: Letter Detailing Changes to the 119 Management Structure | Word Captain Thomas A. Kosik is no longer serving as SkyLink’s 119 Director of Operations. Captain Stanley Saunders, SkyLink’s former Chief Pilot will replace Captain Kosik as the Director of Operations. Captain Saunders DOT compliance statement was included in SkyLink’s initial February 20, 2004 filing with the Department. Captain Saunders’ FAA CSET compliant, updated resume is included below and demonstrates that he meets the requirements of FAR 119.67(a) to serve as the Company’s Director of Operations. Captain Timothy J. Brown, SkyLink’s former Director of Training, will replace Captain Saunders as the Company’s Chief Pilot. His role will encompass the Chief Pilot role under §119.67(b) of the Federal Aviation Regulations. Captain Brown brings a broad range of experience to SkyLink. He served Midway Airlines as the Director of Pilot Training, the initial cadre check airman, the lead simulator check airman and the Air Crew Program Designated Examiner. Counsel: SkyLink, Amy Rogers
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity
November 29, 2004 Re: Email - Request for Additional Information This e‑mail message follows our telephone conversation of earlier today. Based on our discussion, it is my understanding that the funds SkyLink has raised to date (excluding seed capital) have been provided by approximately 15 private investors, which SkyLink states are all U.S. citizens. To ensure that SkyLink continues to remain a U.S. citizen, we need additional information about these investors. For any person(s) holding or potentially holding (e.g., by exercising options or warrants) a 10 percent or greater interest in SkyLink, provide the names, addresses, telephone numbers, citizenship, and principal business. State the amount of stock by class or series and/or the percentage of each type of stock owned or potentially owned by each such person(s). If any such person is a partnership or corporation, provide the identity (as noted above) of each partner or each person holding 10 percent or more of the stock of the corporation. By: Air Carrier Fitness, Vanessa Wilkins, vanessa.wilkins@ost.dot.gov
December 1, 2004 Re: Email - Resume for Mike Jefferson By: SkyLink, Amy Rogers, ARogers@skylinkairways.com
December 1, 2004 Re: Email - Information About Investors At present SkyLink is capitalized as follows: Kenneth T. Carlson 31,875 shares - Joshua B. Marks 31,875 shares - Kenneth M. Woolley 11,250 shares. These shares were issued in return for approximately $300,000 of investment by the three investor/founders. This money was the "seed" capital used to develop the business plan and make the initial DOT and FAA filings. There are 75,000 shares authorized and 75,000 share issued. All of the above individuals are U.S. citizens and are Officers (Carlson, Marks) or Directors (Carlson, Marks and Woolley). Information has been previously been provided on these individuals. Mr. Woolley' s resume, along with the above table with respect to capitalization, were provided to the Department on August 25, 2004. The above three individuals are the only stockholders of the Company at the present time. By: SkyLink, Amy Rogers, ARogers@skylinkairways.com
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity December 3, 2004 Re: Letter Confirming Already Submitted Financial Information Counsel: SkyLink Airways, William Kutzke, 202-259-0900
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity December 6, 2004 Re: Letter Explaining Debt and Equity Support from West Dover Counsel: SkyLink Airways, William Kutzke, 202-259-0900, bkutzke@skylinkairways.com
Order 2005-1-1 Issued January 5, 2005 | Served January 8, 2005 Order to Show Cause - Proposing Issuance of Foreign Certificate and Deferring Action on Interstate Certificate Authority | Word If issued the certificate authority requested, SkyLink plans to offer low-cost, low-fare scheduled passenger services between points in the U.S. and various foreign points. As noted earlier, initially, SkyLink seeks authority to provide foreign scheduled air transportation between the United States, on the one hand, and Aruba, Austria, Belgium, Canada, Chile, Costa Rica, the Czech Republic, the Dominican Republic, France, Germany, Italy, the Netherlands, Slovakia, Taiwan, and the United Kingdom, on the other hand. The company has no immediate plans to conduct interstate scheduled passenger operations and has not provided a service proposal including such services. According to SkyLink, it may at some point conduct scheduled service in domestic markets that are “tag ends” or “stub ends” to its international flights and it plans to explore opportunities to partner with other carriers to serve as feeders into SkyLink’s transatlantic service. SkyLink indicates that it has not yet made a final determination as to the specific international markets it intends to serve. It has, however, provided an illustrative service proposal based on services under consideration in various markets, beginning with Baltimore/Washington (BWI Airport) - London (Stansted Airport). SkyLink intends to commence limited scheduled operations with one 236-seat B-767-200ER aircraft for approximately three months and then add three more aircraft. By the end of its first year, the company plans to have eight B-767 aircraft in its fleet. By: Karan Bhatia
Order 2005-3-28 Issued January 24, 2005 | Served March 25, 2005 By Order 2005-1-1, issued January 5, 2005, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated in it and award a certificate of public convenience and necessity to SkyLink Airways, Inc., authorizing it to engage in foreign scheduled air transportation of persons, property, and mail between the United States, on the one hand, and Aruba, Austria, Belgium, Canada, Chile, Costa Rica, the Czech Republic, the Dominican Republic, Germany, France, Italy, the Netherlands, Slovakia, Taiwan, and the United Kingdom (excluding London's Heathrow and Gatwick Airports), on the other hand. We also proposed to defer action on the remainder of SkyLink's request for foreign authority and on its application for interstate authority. No objections to the show-cause order were received. By: Karan Bhatia
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity
April 27, 2005 Re: Personnel Update, Dockets 17171 and 17172 Counsel: SkyLink, Amy Rogers
April 27, 2005 Re: Registration of Name Change As SkyLink indicated in earlier filings, it has been the Company's intention to choose a new name prior to completion of certification. The new name complies with trademark requirements in the US and certain other key countries and also meets the Company's marketing needs. SkyLink has advised the FAA of the change and asked that the FAA Operating Certificate be issued in the name of MAXjet Airways, Inc. By: SkyLink, Amy Rogers
April 27, 2005 By: MAXjet Airways, Inc.
May 12, 2005 As the Company has moved forward with its specific plans for scheduled service between US East Coast cities and Europe, it also become clear that the Company will need to operate a very limited amount of interstate services. These flights will be used to position aircraft and to provide some routing flexibility. For example, the Company would expect to operate from Baltimore and New York to Europe. It will need the ability to carry local traffic in the New York-Baltimore or New York-Orlando market to flow its aircraft through the system and to handle maintenance. Because the number of aircraft has not changed, overall expenses are not increased, Instead of operating seven days of non-stop service per week on a given sector such as New York London and Baltimore-London, the Company would, for example, operate once a week on a Baltimore-New York-London routing. While daily service is maintained by combining flights onde day a week, an aircraft is freed for one day of down time for routine maintenance. Counsel: Maxjet, William Kutzke, 571-246-5574
June 17, 2005 Monthly (or quarterly) projected revenues, expenses, and block hours for MAXjet's first 12 months of combined interstate and foreign operations, breaking out the items included in MAXj et' s overhead allocations. MAXjet's most recent balance sheet and a proforma balance sheet showing the company's projected assets and liabilities following its first year of operations. Remaining pre‑operating costs, including those associated with its proposed interstate operations. By: Office of Aviation Analysis, Vanessa Wilkins
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity
June 30, 2005 Re: Update on FAA Certification The purpose of this letter is to update you on the FAA certification status of MAXjet and its business plan. In your letter dated June 17, 2005, the last three questions related to MAXjet's proposed interstate operations. In response, this letter will contain projected revenues, expenses and block hours for MAXjet's first twelve months of combined interstate and foreign operations, MAXjet's most recent balance sheet, and pre‑operating costs including those associated with interstate operations. Interstate operations are proposed to be an extension of foreign operations. Total block hours therefore include interstate block hours. Any allocation between interstate and foreign expenses, overhead and pre‑operating costs should be allocated on the ratio of interstate to foreign block hours. In addition, the Company will provide a pro forma balance sheet reflecting the Company's projected assets and liabilities following its first year of operations. The longer-than-expected certification procedures have significantly impacted MAXjet's launch strategy. MAXjet still anticipates growth that will make it the leading international low-cost carrier. This will come in late 2006, not in 2005. It does not make sense to launch a full pattern of scheduled services as the off-peak season approaches. Counsel: Maxjet, William Kutzke, 571-246-5574
June 30, 2005 Motion for Confidential Treatment Under Rule 12 Counsel: Maxjet, William Kutzke, 571-246-5574
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity July 13, 2005 Revised Motion for Confidential Treatment Under Rule 12 of the Department's Rules of Practice By: MAXjet, Gary Rogliano
OST-2004-17171 - Interstate Certificate for Public Convenience and Necessity August 22, 2005 Re: Follow-up to Telephone Conversation on August 19, 2005 As we discussed on Friday, MAXjet Airways, Inc. has modified the manner in which it will demonstrate compliance with the Department's financial fitness test. In lieu of relying upon the proceeds of the sale/leaseback of its aircraft to meet that test at this time, MAXjet is providing the enclosed affidavit of available resources in the amount of $9.13 million, MAXjet is also providing independent third party verification of those resources which are more than sufficient to meet the Department's financial fitness test. Finally, MAXjet is submitting a motion for confidential treatment of that information which is fully consistent with Department precedent. By: Zuckert Scoutt, John Gillick, 202-973-7939, jegillick@zsrlaw.com
Order 2005-9-26 Issued and Served September 30, 2005 Order to Show Cause, Confirm Oral Action, and Issue Effective Certificate | Word By this order, we (1) tentatively conclude that MAXjet Airways, Inc. (MAXjet), previously known as SkyLink Airways, Inc. is fit, willing, and able to engage in interstate scheduled air transportation of persons, property, and mail, and should be issued a certificate of public convenience and necessity authorizing such operations, subject to conditions; (2) confirm our oral action of August 22, 2005, making the foreign scheduled certificate issued to MAXjet effective on that date; and (3) reissue the carrier’s foreign scheduled certificate to reflect its effective date. Initially, MAXjet will conduct 16 transatlantic flights and four domestic-tag weekly roundtrip flights between Orlando and London via New York. In January 2006, the carrier intends to increase its frequency, adding five more weekly roundtrip flights. In March 2006, MAXjet intends to introduce three weekly flights between Baltimore and London, increasing to four weekly flights in June 2006. Also, in May 2006, the carrier intends to introduce service between London and at least one additional northeast city in the U.S. By the end of its first year of certificated operations, MAXjet expects to have a fleet of three aircraft and scheduled flights accounting for approximately 70 percent of the carrier's operations.By: Randall Bennett
Order 2005-10-14 Issued and Served October 17, 2005 Order Issuing Interstate Certificate | Word By Order 2005-9-26, issued September 30, 2005, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated in it and award a certificate of public convenience and necessity to MAXjet Airways, Inc., authorizing it to engage in interstate scheduled air transportation of persons, property, and mail. Interested persons were given 14 days to file objections to the order. No objections to the show cause order were received. We issue a certificate of public convenience and necessity to MAXjet Airways, Inc., to engage in interstate air transportation in the form and subject to the Terms, Conditions, and Limitations attached. By: Randall Bennett |
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