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Updated: Wednesday, February 27, 2008 9:05 AM


OST-2005-21348 - Gulfstream Air Charter - Commuter Air Carrier

http://www.gulfstreamair.com/


Gulfstream Air Charter, Inc.

OST-2005-21348 - Scheduled Passenger Operations as a Commuter Air Carrier

May 26, 2005

Application to Conduct Commuter Air Carrier Operations

Gulfstream currently provides on‑demand transportation services of passengers and cargo, pursuant to Part 298 of the Department's regulations and to a Part 135 Air Carrier Certificate. Gulfstream primarily provides these air taxi services between points in Florida and between Florida and the Bahamas. Gulfstream wants to offer scheduled passenger transportation services, as a commuter air, and now submits this Application for the required authority.

Gulfstream proposes to conduct scheduled passenger air transportation services, as a commuter air carrier, between points in Florida. Initially, Gulfstream will operate two roundtrip flights each day between West Palm Beach and Miami, using Piper Aztec PA-23-250 and Piper Chieftan PA-31-350 aircraft. These flights will connect with Continental's existing scheduled services to and from Miami. Gulfstream will continue its existing charter services.

Motion to Withhold Information from Public Disclosure

Counsel: Zuckert Scoutt, Lonnie Anne Pera, 202-973-7913, lapera@zsrlaw.com



August 5, 2005

Letter Requesting Additional Information

We have completed our initial review of the application filed in Docket OST-2005-21348 by Gulfstream Air Charter, Inc. for the determination of its fitness to conduct scheduled passenger air transportation as a commuter air carrier.

This review has revealed the need for additional and/or clarifying information before we can completely process GAC's application. The attached Information Request lists the areas where further information and/or clarification is necessary. I ask that you respond fully to this request within 30 days of the date of this letter. The original plus 6 copies of your response should be filed in Docket OST-2005-21348.

By: Lauralyn Remo


August 5, 2005

Re: Motion for Confidential Treatment under Rule 12

The information at issue here is a copy of GAC's bank account summary and transaction history printed from the Internet for May 2005. Since we are unable to ascertain the authenticity of this document, we are unable to accept it as sufficient third-party verification of funds on deposit in GAC's name. For this reason, we will grant GAC's request to withhold this information from public disclosure. However, we note that GAC must still provide adequate third-party verification of funds, such as a copy of the carrier's official bank statement or a letter from GAC's financial institution confirming the amount of funds on deposit, to enable us to determine the company's financial ability to conduct operations as a commuter air carrier.

By: William Bertram



October 5, 2005

Supplement No. 1 to Application

On May 26, 2005, Gulfstream applied for authority to operate scheduled passenger service as a commuter air carrier. Gulfstream initially proposes to offer two roundtrip flights each day between West Palm Beach and Miami, Florida. Gulfstream has submitted its service proposal in Exhibit GAC-801 to its application. This proposal has not changed.

Gulfstream plans to market these flights to the general public, including but not limited to (a) licensed passengers, who are traveling on Gulfstream's approved charter flights between Miami and Havana, Cuba, and (b) passengers, who may want to travel on Gulfstream International Airlines, Inc.'s scheduled flights between Miami and various points in the Bahamas. Gulfstream's proposed commuter operations - with 5 or 9 seat aircraft - will benefit Gulfstream's licensed Cuba-bound customers as well as the general public.

Gulfstream will use Piper Aztec PA-23-250 aircraft (with 5 passenger seats) and Piper Chieftan PA-31-350 aircraft (with 9 passenger seats) for these services. At the time of its application, Gulfstream already had leased one Aztec and one Chieflan aircraft. Since filing, Gulfstream has leased a third aircraft, a Piper Chieftan PA-31-350 aircraft with 9 passenger seats. Gulfstream will use these three aircraft for its proposed scheduled services as well as for its existing on-demand charter services. Gulfstream submits Revised Exhibit GAC-300 and Revised Exhibit GAC-301, updating its fleet. Gulfstream also submits in Revised Exhibit GAC403 the most recent Pre-Application Statement of Intent filed with the Federal Aviation Administration ("FAA") on or about October 5, 2005. This matter is still pending with the FAA.

Counsel: Zuckert Scoutt, Lonnie Anne Pera, 202-973-7913, lapera@zsrlaw.com


October 5, 2005

Motion to Withhold Information from Public Disclosure

Pursuant to section 302.12 of the Department’s Rules of Practices, Gulfstream Air Charter, Inc. hereby moves to withhold from public disclosure Revised Exhibit GAC-802 to the above-caption application for the issuance of commuter air carrier authority. Revised Exhibit GAC-802 consists of the original bank statement for Gulfstream’s operating account. This document is being filed with this Motion in a sealed envelope marked “Confidential Materials - Rule 12 Treatment Requested.”

Gulfstream seeks to withhold this exhbit from public disclosures because it be misused if it is available to the public. In addition, the information in this exhibit is highly detailed and would not otherwise be made accessible to persons outside of the company. Release of this information, therefore, would cause substantial harm to Gulfstream and to Gulfstream’s competitive position.

Counsel: Zuckert Scoutt, Lonnie Anne Pera, 202-973-7913, lapera@zsrlaw.com



October 17, 2005

Re: Ruling on Confidential Treatment

On October 5, 2005, Gulfstream Air Charter, Inc. supplemented its application with additional information, and filed a motion for confidential treatment under 14 CFR 302.12 (Rule 12) of our Procedural Regulations for its August 2005 bank statement contained in Revised Exhibit GAC-802. The purpose of this letter is to rule on the motion.

We have decided to grant confidential treatment to some, but not all, of the information for which confidentiality is sought. Specifically, we will deny confidential treatment to GAC' s ending bank balance as of August 31, 2005, and the name of its banking institution. The applicant submitted this statement as third-party verification of all funds currently on deposit in GAC's name. It is the Department's practice to release all such third-party verification. However, we believe that release of such sensitive details included in the applicant's bank statement, such as account numbers and daily account activities, could have competitive implications for the applicant. Therefore, we will provide confidential treatment to this material.

By: Air Carrier Fitness, William Bertram



October 21, 2005

Supplement No. 2 to Application - Redacted Bank Statement

On October 5, 2005, Gulfstream Air Charter, Inc. filed a motion for confidential treatment to protect its August 2005 bank statement. The Department granted, in part, the motion by letter dated October 17, 2005. In this letter, the Department requested that Gulfstream submit a redacted bank statement leaving only the name of the banking institution and the ending bank balance as of August 31, 2005. In accordance with the Department’s determination, Gulfstream submits in the enclosed Revised Exhibit GAC-802 a redacted August 2005 bank statement.

Counsel: Zuckert Scoutt, Lonnie Anne Pera, 202-973-7913, lapera@zsrlaw.com



November 10, 2005

Supplement No. 3 to the Application

Hereby supplements its May 26, 200 application for commuter authority, by submitting two revised exhibits. Gulfstream submits these exhibits to make sure that the Department has complete, accurate, and updated information.

The first exhibit, Revised Exhibit GAC-608, contains an updated resume for Captain Thomas J. Fitzgerald. The enclosed resume clarifies that Captain Fitzgerald became Gulfstream's Director of Operations and was hired as Gulfstream's Chief Pilot on October 4, 2005. The Federal Aviation Administration has not yet returned the approved copy of Gulfstream's October 5, 2005 Pre-Application Statement of Intent, which identifies these two positions. Gulfstream attached a copy of this Pre-Application in Supplement No. 1, which was filed in this docket on October 5, 2005. See Revised Exhibit GAC-403.

Gulfstream also encloses in Revised Exhibit GAC-803 an updated forecast for the twelve month period from January 2006 through December 2006. This forecast identifies the pre-operating costs that Gulfstream has incurred and will incur from May through December 2005 in connection with the proposed scheduled services. Gulfstream has estimated a total of $94,800 in pre-operating costs for this period. To date, Gulfstream has paid $63,600 of these costs, leaving an estimated balance of $31,200.

Counsel: Zuckert Scoutt, Lonnie Anne Perra, 202-973-7913, lapera@zsrlaw.com



Order 2005-12-14
OST-2005-21348 - Scheduled Passenger Operations as a Commuter Air Carrier

Issued and Served December 23, 2005

Order to Show Cause - Proposing Issuance of Commuter Air Carrier Authority - Bookmarked

GAC, an air taxi operator, was organized as a corporation under the laws of the State of Florida in 2001. The company holds a Federal Aviation Regulations Part 135 certificate from the FAA and primarily operates between points in Florida and between Florida and the Bahamas. GAC also serves as a U.S. public charter operator for public charter flights between Miami, Florida, and Havana, Cuba, under Part 380 of the Department's Public Charter Rules and pursuant to a Carrier Service Provider license issued by the Office of Foreign Assets Control  of the U.S. Department of Treasury. It also conducts all-cargo charter air transportation to Cuba using its own aircraft. Mr. Thomas L. Cooper, a U.S. citizen, is the sole owner of GAC.

If granted the commuter authority it seeks, GAC plans to provide scheduled passenger service as a commuter air carrier, initially operating two roundtrip flights per day between West Palm Beach and Miami, Florida, using three Piper aircraft with passenger seating capacities ranging from five to nine seats.

By: Michael Reynolds



February 2, 2006

Response to Show Cause Order - Bookmarked

Gulfstream Air Charter, Inc. hereby responds to the Show Cause Order issued by the Department on December 23, 2005. There were no objections to the order. The Department, therefore, can finalize its conclusions.

Gulfstream submits the following information and documents:

  1. A copy of the certificate of insurance (OST Form 6410) evidencing liability insurance coverage for all of its aircraft. Gulfstream filed the original certificate on February 2, 2006.
  2. A statement that Gulfstream has not undergone any changes in its ownership, key personnel, operating plans, financial posture, or compliance history since the Department issued the Show Cause Order.
  3. A revised list of pre-operating expenses already paid and those remaining to be paid and a redacted bank statement for the period ending December 31, 2005.

With respect to statement (2) above, Gulfstream has not changed its ownership, management, or operations. Gulfstream, however, has moved its main office to a new location.

Counsel: Zuckert Scoutt, Lonnie Anne Pera, 202-973-7913, lapera@zsrlaw.com



Order 2006-2-4
OST-2005-21348 - Scheduled Passenger Operations as a Commuter Air Carrier

Issued and Served February 6, 2006

Final Order | Word

By Order 2005-12-14, served December 23, 2005, we directed all interested persons to show cause why we should not issue an order finding that Gulfstream Air Charter, Inc., is fit, willing and able under 49 U.S.C. 41738 to provide scheduled passenger service as a commuter air carrier and issue to it a Commuter Air Carrier Authorization subject to the attached Terms, Conditions, and Limitations.

No objections to the show-cause order were filed.

We issue a Commuter Air Carrier Authorization to Gulfstream Air Charter, Inc.

We direct Gulfstream Air Charter, 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 commuter operations. The report shall include a description of the carrier’s current operations (number and type of aircraft, principal markets served, total number of full-time and part-time employees), a summary of how these operations have changed during the year, a discussion of any changes it anticipates from its current operations during its second year, current financial statements, and a listing of current senior management and key technical personnel.

By: Michael Reynolds



February 6, 2006

Response No. 2 to Show Cause Order

Gulfstream encloses a copy of the pertinent pages of the Operations Specifications, which authorizes Gulfstream to conduct commuter air carrier and on-demand operations. The Federal Aviation Administration issued the Operations Specifications on February 3, 2006.

Counsel: Zuckert Scoutt, Lonnie Anne Perra, 202-973-7913, lapera@zsrlaw.com


OST-2005-21348 - Registration of Name Change and Reissuance of Commuter Air Carrier Authorization Under 14 CFR Part 215

February 22, 2007

Application for Name Change and Resissuance of Commuter Air Carrier Authorization

To better market the commuter services, Gulfstream would like to change its name to "Gulfstream Connection." Gulfstream has formally changed its name with the State of Florida, effective January 5, 2007. The Company asks the Department to approve the name change and reissue the Commuter Air Carrier Authorization in the new name as soon as possible.

Gulfstream's plans to commence scheduled services were delayed. Gulfstream moved its offices to 3201 Griffin Road, Suite 400, Fort Lauderdale, Florida 33312. Shortly after the move was completed, Gulfstream's chief executive officer and president had health problems that needed to be addressed promptly. Once he overcame these problems, the Company took steps to commence scheduled services. As mentioned above, these services began on February 2, 2007.

Counsel: Zuckert Scoutt, Lonnie Anne Pera, 202-342-0683, lapera@zsrlaw.com



Order 2008-2-29
OST-2005-21348 - Scheduled Passenger Operations as a Commuter Air Carrier

Issued and Served February 25, 2008

Order Canceling Commuter Authority

By Order 2005-12-14, issued December 23, 2005, the Department found GAC fit, willing, and able to conduct scheduled passenger operations as a commuter air carrier and issued to it a Commuter Air Carrier Authorization. By Order 2006-2-13, issued February 17, 2006, the Department confirmed its oral action of February 7, 2006, making the commuter authority issued to GAC effective on that date.

On February 22, 2007, GAC submitted an application requesting that the Department approve a change in the air carriers name from "Gulfstream Air Charter, Inc." to "Gulfstream Connection, Inc." and reissue its commuter Authorization to reflect its new corporate name.

By letter dated March 13,2007, the Department notified the air carrier that we could not process GAC's request until certain issues, namely GAC's operational status, were resolved. Based on the information available to us, we concluded that GAC had not commenced actual scheduled passenger operations. Section 204.7 of the Department's Aviation Economic Regulations (14 CFR 204.7) provides that, if an air carrier fails to conduct operations within one year of being found fit, or ceases conducting the operations for which it was found fit, its authority to conduct those operations is 'automatically suspended as of the date those operations ceased or as of the anniversary of the date the air carrier was found fit. We further stated that should GAC wish to commence operations, a redetermination of its fitness would have to be accomplished within one year of the date of this letter, that is, by March 13, 2008; otherwise GAC's commuter authority would be revoked for dormancy.

On January 29, 2008, GAC notified the Department that it had no objections to the Department canceling its commuter authority prior to its March 13, 2008, revocation date.

Under these circumstances, and in accordance with section 204.7 of our rules, we find it appropriate to revoke the Commuter Air Carrier Authorization made effective to GAC on February 7, 2006, by Order 2006-2-13. This action is without prejudice to the company's filing for new commuter authority in the future.

By: Todd Homan


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