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Updated: Thursday, June 1, 2006 10:35 AM


OST-2005-20924 - Cargo 360 - Interstate Scheduled Cargo Certificate

http://cargo360.aero/


OST-2005-20925 - Certificate of Public Convenience and Necessity - Foreign Scheduled Cargo - US-South Korea


Cargo 360, Inc.

OST-2005-20924 - Certificate of Public Convenience and Necessity - Interstate Scheduled Cargo

April 5, 2005

Application for a Certificate of Public Convenience and Necessity - Bookmarked

The three initial aircraft will be dedicated to the provision of wet-lease service for Korean Air Lines, a major provider of transpacific all-cargo service that consistently outsources at least a portion of its all-cargo aircraft operations, a common practice among major international carriers. Cargo 360 and KAL have signed a confidential letter of intent providing for wet-lease of the three Cargo 360 aircraft to KAL at a high rate of utilization for an extended term.

Historically, KAL's all‑cargo flights between Korea and the United States have operated at high load factors eastbound and moderate load factors westbound. Based upon Cargo 360's letter of intent with KAL, Cargo 360 expects to retain the right to sell, in its own right, westbound capacity that will not be utilized by KAL. This will include U.S.‑Korea transportation and domestic U.S. transportation.

As a start-up carrier, Cargo 360 does not currently own, lease, or operate aircraft. In January 2005, however, Cargo 360 signed a term sheet for the acquisition of two Boeing 747- 200F and one Boeing 747-300SF freighter aircraft, with deliveries scheduled for approximately June 5, September 1 and October 1, 2005. While the term sheet is subject to execution of a definitive contract, Cargo 360 fully anticipates that these three aircraft will comprise its initial fleet.

Applicant was originally incorporated in the State of Washington under the name Compass Air Transport, Inc. On February 18, 2005, Compass Air Transport, Inc. was merged into Cargo 360, Inc., a Delaware corporation formed November 29, 2004.

Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3970, agoerlich@ggh-airlaw.com


OST-2005-20924 - Certificate of Public Convenience and Necessity - Foreign Scheduled Cargo

April 5, 2005

Motion to Withhold Information from Public Disclosure

Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3970, agoerlich@ggh-airlaw.com


OST-2005-20924 - Certificate of Public Convenience and Necessity - Interstate Scheduled Cargo

April 15, 2005

Supplement No. 1 to Application

Hereby supplements its application filed April 5, 2005, with agreements and related documents concerning its financing and business plans as requested by the Department. These documents, all of which are confidential and filed under seal, are more fully described in the motion to withhold from public disclosure filed simultaneously with this supplement.

Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3970, agoerlich@ggh-airlaw.com


OST-2005-20924 - Certificate of Public Convenience and Necessity - Interstate Scheduled Cargo

April 15, 2005

Motion to Withhold Information from Public Disclosure

Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3970, agoerlich@ggh-airlaw.com


May 5, 2005

Motion to Withhold Information from Public Disclosure

Information to be Withheld: General Enterprise Management Services Limited Oriental & General Fund II Limited Shareholder Details / General Enterprise Management Services Limited Consolidated Financial Statements for year ending December 31, 2004

Counsel: Garofalo Goerlich, Aaron Goerlich, agoerlich@ggh-airlaw.com


May 5, 2005

Supplement No. 2 to Application

Hereby supplements its application filed April 5, 2005, with the attached Preapplication Statement of Intent dated April 19, 2005, which supersedes the previously‑filed PASI, and documents relating to Cargo 360's financing as requested by the Department. The latter documents are confidential and filed under seal, and are more fully described in the motion to withhold from public disclosure filed simultaneously with this supplement.

Counsel: Garofalo Goerlich, Aaron Goerlich, agoerlich@ggh-airlaw.com


OST-2005-20924 - Interstate Scheduled Cargo Certificate

May 13, 2005

Ruling on 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. Specifically, we agree with Cargo 360 that premature release of the identity of and other information related to the individual slated to hold a key management position with Cargo 360, but is currently employed elsewhere, could jeopardize his/her current employment. In addition, we agree that public disclosure of various agreements related to Cargo 360's financing arrangements and aircraft leases are the type of proprietary information for which we have given confidential treatment in the past.

By: William Bertram


OST-2005-20924 - Certificate of Public Convenience and Necessity - Interstate Scheduled All-Cargo

May 23, 2005

Supplement No. 3 to Application

Cargo 360, Inc. hereby supplements its application filed April 5, 2005, with the attached information. Included in this supplement are: 1. A personal resume and citizenship affidavit of Mr. Troy Smith, who will take over as Cargo 360's Director of Maintenance effective June 1, 2005; and 2. Various documents, previously filed under motions to withhold from public disclosure, that were denied confidential treatment by the Department's decision dated May 13, 2005, with the exception of the portions of certain financial statements for which Cargo 360 requests DOT reconsideration under its petition submitted this date.

Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3970, agoerlich@ggh-airlaw.com


OST-2005-20924 - Certificate of Public Convenience and Necessity - Interstate Scheduled All-Cargo
OST-2005-20925 - Certificate of Public Convenience and Necessity - Foreign Scheduled Cargo - US-South Korea

May 23, 2005

Re: Petition for Partial Reconsideration of May 13, 2005 Decision on Confidential Treatment

Cargo 360 submits this petition vis-à-vis the remaining portions of the financial statements comprising Exhibit 302. Specifically, Cargo 360 requests confidential treatment for pages numbered 5 through 16, 5 through 20, and 5 through 20 of the audited GEMS financial statements for 2002, 2003, and 2004, respectively. Cargo 360 also requests continuing confidential treatment for pages numbered 4 through 15, 4 through 18, and 4 through 18 of the audited GEMS O&G II financial statements for 2002, 2003, and 2004, respectively.

Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3970, agoerlich@ggh-airlaw.com


OST-2005-20924 - Certificate of Public Convenience and Necessity - Interstate Scheduled All-Cargo
OST-2005-20925 - Certificate of Public Convenience and Necessity - Foreign Scheduled Cargo - US-South Korea

June 16, 2005

Re: Ruling on Petition for Confidential Treatment

By: Air Carrier Fitness, William Bertram


OST-2005-20924 - Certificate of Public Convenience and Necessity - Interstate Scheduled All-Cargo
OST-2005-20925 - Certificate of Public Convenience and Necessity - Foreign Scheduled Cargo - US-South Korea

June 30, 2005

Re: Information Request

According to the applicant, it has signed a term sheet agreement with KAL for aircraft maintenance. Please identify the corporate position that will be responsible for overseeing the contract, along with the name, background, and credentials of the individual selected for this position. Cargo 360 should also indicate to whom on the corporate structure this position will report, how the oversight will be accomplished, and whether the position is part‑time or full‑time.

By: Air Carrier Fitness, Lauralyn Remo


OST-2005-20924 - Interstate Scheduled Cargo Certificate

August 2, 2005

Supplement No. 4 to Application

Hereby supplements its application filed April 5, 2005, with the attached information. Included in this supplement are answers (and related attachments) to the public questions in the Department's request for additional information dated June 30, 2005. Answers to the Department's redacted questions and to certain of its public questions are being submitted simultaneously under a Motion to Withhold Information from Public Disclosure.

Counsel: Garofalo Goerlich, Aaron Goerlich, agoerlich@ggh-airlaw.com


OST-2005-20924 - Interstate Scheduled Cargo Certificate

August 2, 2005

Motion to Withhold Information from Public Disclosure

Counsel: Garofalo Goerlich, Aaron Goerlich, agoerlich@ggh-airlaw.com


OST-2005-20924 - Certificate of Public Convenience and Necessity - Interstate Scheduled Cargo
OST-2005-20925 - Certificate of Public Convenience and Necessity - Foreign Scheduled Cargo - US-South Korea

September 2, 2005

Additional Information Requested

We have reviewed the information filed on August 2, 2005, in Dockets OST-2005-20924 and OST-2005-20925 by Cargo 360, Inc. in support of its applications for certificate authority. This review has revealed the need for additional and/or clarifying information before we can continue processing Cargo 360’s applications.

To enable us to proceed with our review, we ask that you identify the individuals and their nationalities that own and manage General Enterprise Management Services Limited, a private equity firm based in Hong Kong. According to the record, GEMS manages GEMS Oriental and General Fund I1 Limited, a Cayman investment fimd that ultimately owns, through its wholly owned subsidiary, Corundum International Finance Limited.

By: William Bertram


OST-2005-20924 - Certificate of Public Convenience and Necessity - Interstate Scheduled Cargo


November 18, 2005

Supplement No. 5 to Application - Bookmarked

Cargo 360, Inc. hereby supplements its application filed April 5, 2005, with the attached information. Included as exhibits to this supplement are updated financial projections, an updated balance sheet, amended corporate documents and Cargo 360's initial aircraft lease agreement. Summaries of the amended corporate documents and the aircraft lease agreement are being filed publicly with this supplement, while the documents themselves are being submitted under a motion to withhold from public disclosure. Finally, and as discussed with the Department, the information in this supplement renders moot the Department's information request dated September 2, 2005.

Cargo 360 also wishes to correct an inadvertent error in information previously submitted: Patricia Pinna, one of the company's minor shareholders (now a warrant holder), is a citizen of India, not Canada as previously stated.

Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3970, agoerlich@ggh-airlaw.com


November 18, 2005

Motion to Withhold Information from Public Disclosure

Cargo 360, Inc. moves to withhold from public disclosure certain documents appended to Supplement No. 5 being filed simultaneously with this motion.

Information to be Withheld:

  • Exhibit 3 - Exchange Agreement
  • Exhibit 4 - Warrant Agreement
  • Exhibit 5 - First Amendment to Investors Agreement
  • Exhibit 6 - First Amendment to Stockholders Agreement
  • Exhibit 7 - Aircraft Operating Lease Agreement

Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3970, agoerlich@ggh-airlaw.com


Order 2005-12-19
OST-2005-20924 - Certificate of Public Convenience and Necessity - Interstate Scheduled Cargo
OST-2005-20925 - Certificate of Public Convenience and Necessity - Foreign Scheduled Cargo - US-South Korea

Issued December 29, 2005 | Served December 30, 2005

Order to Show Cause and Proposing Issuance of Certificate Authority - Bookmarked

By this order, we tentatively conclude that Cargo 360, Inc. is a citizen of the United States, is fit, willing, and able to provide interstate and foreign scheduled air transportation of property and mail, and should be issued certificates of public convenience and necessity authorizing such operations, subject to conditions.

If granted the certificate authority it seeks, the applicant plans to provide interstate and foreign scheduled all‑cargo service within the United States and between the United States and Korea. Cargo 360 intends to operate three B‑747‑300SF aircraft under an Aircraft, Crew, Maintenance, and Insurance agreement with Korean Air Lines, while retaining the right to sell, on a scheduled all‑cargo basis, westbound capacity that will not be used by KAL.

By: Michael Reynolds


Order 2006-1-10
OST-2005-20924 - Certificate of Public Convenience and Necessity - Interstate Scheduled Cargo
OST-2005-20925 - Certificate of Public Convenience and Necessity - Foreign Scheduled Cargo - US-South Korea

Issued and Served January 13, 2006

Final Order | Word

By Order 2005-12-19, issued December 29, 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 certificates of public convenience and necessity to Cargo 360, Inc., authorizing it to engage in interstate and foreign scheduled air transportation of property and mail.  Interested persons were given 14 calendar 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 Cargo 360, Inc., to engage in interstate cargo scheduled air transportation in the form and subject to the Terms, Conditions, and Limitations attached.

We direct Cargo 360, Inc., to submit to the Air Carrier Fitness Division a first year progress report within 45 days following the end of its first year of certificated operations.

By: Michael Reynolds


Order 2006-3-13
OST-2005-20924 - Certificate of Public Convenience and Necessity - Interstate Scheduled Cargo
OST-2005-20925 - Certificate of Public Convenience and Necessity - Foreign Scheduled Cargo - US-South Korea

Issued March 13, 2006 | Served March 16, 2006

Order Issuing Foreign Certificate | Word

By Order 2006-1-10, issued January 13, 2006, we found Cargo 360, Inc., fit, willing, and able to engage in interstate and foreign scheduled air transportation of property and mail.  Further, by that order, we issued a section 41102 certificate authorizing Cargo 360, Inc., to engage in interstate scheduled air transportation.

By this order, we are issuing a companion certificate authorizing Cargo 360, Inc., to engage in foreign cargo scheduled air transportation.  Instead of repeating our findings and conclusions in Order 2006-1-10, we incorporate them here by reference.

We issue a certificate of public convenience and necessity to Cargo 360, Inc., to engage in foreign cargo scheduled air transportation in the form and subject to the Terms, Conditions, and Limitations attached.

By: Michael Reynolds


OST-2005-20924 - Certificate of Public Convenience and Necessity - Interstate Scheduled Cargo


May 10, 2006

Supplement No. 6 - Bookmarked

  1. Corporate Formation Documents
  2. Certificate of Insurance
  3. DOT Approval of Proving Runs
  4. Statement of Authorization Application
  5. Board of Directors Information
  6. Amended Certificate of Incorporation
  7. Updated Financial Information

Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3970, agoerlich@ggh-airlaw.com


May 11, 2006

Letter Regarding Financial Information

  1. Air Carrier Certificate
  2. Debt Financing
  3. Investments Statements

Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3970, agoerlich@ggh-airlaw.com


Order 2006-5-26
OST-2005-20924 - Certificate of Public Convenience and Necessity - Interstate Scheduled Cargo
OST-2005-20925 - Certificate of Public Convenience and Necessity - Foreign Scheduled Cargo - US-South Korea
OST-2006-24217 - Exemption - Revenue Cargo Carrying on FAA Proving Flights

Issued and Served May 31, 2006

Order Confirming Oral Actions and Issuing Effective Certificates

By this order, we (1) confirm our oral action of March 31, 2006, granting Cargo 360, Inc. an exemption from the requirements of section 201.5 of our rules to the extent necessary to allow the company to carry revenue cargo on proving flights conducted under the surveillance of the Federal Aviation Administration, (2) confirm our oral action of May 11, 2006, making the interstate and foreign charter certificates issued to Cargo 360 effective on that date, and (3) reissue the air carrier’s certificates to reflect their effective dates.

By: Todd Homan


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