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OST-2005-21744 - Skybus Airlines - Foreign Certificate
OST-2005-20072 - Skybus - Interstate Certificate of Public Convenience and Necessity - Columbus-US
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Skybus Airlines, LLC OST-2005-21744 - Foreign Certificate of Public Convenience and Necessity - Canada-US June 29, 2005 Application for a Foreign Certificate of Public Convenience and Necessity Though Skybus proposes initially to serve only Toronto, it wishes to have the flexibility to add other Canadian points as market demands arise. Counsel: Sher & Blackwell, Mark Atwood
OST-2005-20072 - Interstate Certificate of Public Convenience and Necessity - Scheduled Passenger July 8, 2005 Re: Ruling on Confidential Treatment We have reviewed the information for which Skybus requests confidentiality and agree with the applicant that public disclosure of Exhibit 7, which identifies the city pairs Skybus intends to provide service between, could negatively affect the applicant's competitive posture by allowing its competitors to focus service and price incentives on the selected cities even before Skybus has the authority to commence such operations. In addition, the applicant has provided more than enough detail in the public portion of its applications to allow us to verify the reasonableness of its operating plan and financial forecasts. Therefore, we have decided to grant confidential treatment to this exhibit. By: Air Carrier Fitness, William Bertram
OST-2005-20072 - Interstate Certificate of Public Convenience and Necessity - Scheduled Passenger July 14, 2005 Skybus indicated that the company has received informal advice from Morgan Stanley with respect to raising between $70 million to $100 million in additional capital through a private placement offering. The applicant also stated that the terms and conditions related to the PPO would not be completed until such time as its senior management team was in place. Based on the recent hiring of Mr. Diffenderffer, Skybus' new Chief Executive Officer, it appears as though Skybus' management team is in place. If this is correct, please state whether the PPO has been enacted. If so, please provide a copy of the PPO agreement and state the amount of additional funds raised to date. By: Air Carrier Fitness, Lauralyn Remo
OST-2005-20072 - Interstate Certificate of Public Convenience and Necessity - Scheduled Passenger November 29, 2005 Re: Information Request - Bookmarked The following responds to the Information Request attached to your letter of October 14, 2005 regarding the application in this docket of Skybus Airlines for certificate authority. Counsel: Sher & Blackwell, Mark Atwood, 202-463-2500
January 24, 2006 Pursuant to 14 C.F.R. §302.5, Skybus Airlines, Inc. hereby amends its application for foreign air transportation of persons, property and mail, filed June 29, 2005 in the above-referenced docket, as follows. Skybus requests certificate authority authorizing it to operate foreign scheduled combination service between any point in the United States and any point in Canada. Counsel: Sher & Blackwell, Mark Atwood
Order 2006-2-22 Issued and Served February 28, 2006 Order to Show Cause and Proposing Issuance of Certificate Authority - Bookmarked If granted the certificates it seeks, Skybus intends to provide scheduled passenger, low-fare, all-coach air service from Port Columbus International Airport. Columbus, Ohio, to various cities in the United States and Canada. To begin operations, the applicant plans to lease two new aircraft configured between 130 and 160 passenger seats, and to add one additional aircraft every two months until it has a total of 8 aircraft by the end of its first year of operations, with the eighth aircraft designated as a spare. The applicant expects to operate these aircraft an average of 15 block hours per day. The applicant furnished data on its proposed flight operations, including forecast monthly block hour usage and rates, revenue, and operating costs, and a schedule of projected pre-operating expenses. We have examined Skybus' projected expenses and find them to be reasonable. Specifically, the applicant expects to incur approximately $40.0 million in pre-operating expenses, of which $4.5 million has already been paid, and approximately $80.3 million in first-year expenses. Based on these forecasts, we estimate that Skybus will need about $55.6 million to meet the Department's financial fitness criteria. By: Michael Reynolds
Order 2006-3-12 Issued and Served March 14, 2006 By Order 2006-2-22, issued February 28, 2006, 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 Skybus Airlines, LLC authorizing it to engage in interstate and foreign 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 Skybus Airlines, LLC to engage in interstate air transportation in the form and subject to the Terms, Conditions, and Limitations attached. Should Skybus Airlines, LLC propose to operate more than 8 aircraft, we direct it to notify the Department in writing at least 45 clays prior to the proposed change in operations and demonstrate its fitness to conduct such operations before their commencement. By: Michael Reynolds
Order 2006-5-9 Issued March 15, 2006 | Served May 12, 2006 Order Issuing Foreign Certificate | Word By this order, we are issuing a companion certificate authorizing Skybus Airlines, LLC to engage in foreign passenger scheduled air transportation. Instead of repeating our findings and conclusions in Order 2006-3-12, we incorporate them here by reference. By: Michael Reynolds
OST-2005-20072 - Interstate Certificate of Public Convenience and Necessity - Scheduled Passenger February 20, 2007 Application for a Temporary Waiver of 14 CFR 204.7 Skybus Airlines, Inc. submits this Application for a waiver of 14 C.F.R. 204.7(a), which provides that if an air carrier has not commenced any type of air transportation operations for which it was found fit willing and able within one year of the date of that finding, the authority granted shall be revoked for dormancy. Skybus seeks a temporary waiver of this provision so as to allow it to delay commencement of scheduled service for up to 90 days after March 14, 2007 (i.e., until June 12, 2007) and requests a 90-day waiver to allow for any additional unforeseen delays. Until the FAA issues the Air Carrier Certificate and Part 121 Operations Specifications, Skybus cannot commence operations. In addition, the company will require some time after the issuance of the FAA authority to publish its schedules, begin advertising and selling tickets, and make other final preparations to begin operations. Skybus will submit to the Department updated financial and fitness information as required by Orders 2006-3-12 and 2006-5-9, and as promised by Skybus in its September 25, 2006 update to the Department. Counsel: Sher & Blackwell, Mark Atwood
OST-2005-20072 - Interstate Certificate of Public Convenience and Necessity - Scheduled Passenger March 1, 2007 DOT Letter Granting 90-Day Waiver In your filing, you state that Skybus has been working diligently and cooperatively with the FAA, and the carrier is in its final stages of the FAA certification process. You also indicate, however, that Skybus will not be able to commence operations by March 14, 2007, one year after its fitness finding, and, therefore, request that the Department grant Skybus a waiver from §204.7(a) and give the carrier an additional 90 days to commence operations. The FAA has advised us that Skybus is making satisfactory progress toward obtaining its FAA certificate, and that the agency knows of no reason why we should not grant the requested waiver. The FAA states that it fully expects that the carrier will commence its proposed operations within the time frame indicated by the carrier. Therefore, we grant Skybus’ request for a 90-day waiver from §204.7(a). This waiver will expire on June 14, 2007. By: Air Carrier Fitness Division, William Bertram
OST-2005-21744 - Foreign Certificate of Public Convenience and Necessity - Canada-US March 23, 2007 Re: Updated Information - Bookmarked The FAA certification process is proceeding satisfactorily. Skybus expects to operate proving runs in late April 2007. The anticipated start-up date is May 20, 2007. Skybus has two leased A-319 aircraft on hand, and an additional two will be delivered by the end of May. A lease for a further six, to be delivered in intervals through mid-2008 has been executed, and the company has an order for 65 new A 319s from Airbus. Skybus recently completed an additional round of financing, raising a further $69.6 million (net) through private placement of the company's stock. This round of financing makes Skybus the best‑financed startup airline in U.S. history (per the company's investment bankers), and brings with it some additional investors as well as additional investments. It does not, however, materially change the company's ownership or corporate structure.
Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513
OST-2005-20072 - Interstate Certificate of Public Convenience and Necessity - Scheduled Passenger April 2, 2007 Application for a Waiver of The Provisions of 14 CFR & 201.5(a)(2) Skybus has invested a significant amount of resources in anticipation of its start‑up of passenger operations. Skybus has hired and trained the personnel necessary to implement its service, and it has the requisite operational personnel and plans in place to begin its service. Further, in preparation for advertising and selling tickets for its flights, Skybus has already: (a) made arrangements to list and sell tickets through its website; (b) retained an advertising agency; and (c) hired an in‑house marketing staff. It is imperative that Skybus avoid the pattern experienced by other new entrant carriers, many of whom have subsequently ceased operations, wherein scheduled operations are initiated with relatively low load factors and similarly low revenue per seat mile. Accordingly, the carrier seeks to begin advance tickets sales for its initial flights and thereby increase the likelihood of financial success for its initial service. Skybus will not, however, initiate sales until it is in a position to announce a definitive startup date, with a high level of confidence, based on the status of the FAA certification process. Counsel: Sher & Blackwell, Mark Atwood
OST-2005-20072 - Interstate Certificate of Public Convenience and Necessity - Scheduled Passenger April 19, 2007 Skybus Airlines, Inc., hereby requests a disclaimer of jurisdiction and reissuance of certificates or, alternatively, approval pursuant to 49 U.S.C. § 41105 of the transfer of Skybus's certificates of public convenience and necessity and other operating authority from Skybus Airlines, LLC, an entity which no longer exists. The transfer of operating authority to Skybus, Inc. and the reissuance of the certificates in the name of Skybus, Inc. is part of a corporate restructuring intended to take advantage of tax and business-related benefits that are offered by the corporation organizational structure. Skybus previously advised Department staff that it had converted its form of organization from a limited liability company to a "C" corporation following issuance of the Department's Order to Show Cause, as originally planned at the time of its initial application. This Application for a Disclaimer of Jurisdiction is intended to bring the carrier's certificate authority in line with that transition. This restructuring has not materially changed the management, control, operations, financial condition or citizenship of the carrier. To complete the reissuance or transfer of the certificates prior to its anticipated operational date, Skybus respectfully requests that this application be handled on an expedited basis and that the transfer and reissued certificates have an effective date of not later than May 21, 2007. Counsel: Sher & Blackwell, Mark Atwood
OST-2005-20072 - Interstate Certificate of Public Convenience and Necessity - Scheduled Passenger June 6, 2007 As requested, I am submitting attached hereto the resumes of Joseph Hexter, the new Director of Safety, and Donald Smith, the new Chief Inspector, for Skybus Airlines, Inc. This submission brings the record up to date for Skybus, and accordingly we look forward to receiving the order confirming the oral grant of effective certificate authority made on May 10, 2007. Pursuant to our request in this docket, dated April 19, 2007, for a disclaimer of jurisdiction, we ask that this order re-issue Skybus' certificate authority reflecting the company's new corporate name, Skybus Airlines, Inc. Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513
Order 2007-7-19 Issued and Served July 25, 2007 Order Confirming Oral Action, Disclaiming Jurisdiction and Issuing Effective Certificates We confirm our oral action of May 10, 2007, making the section 41102 interstate and foreign scheduled certificate authority issued to Skybus Airlines, LLC, effective on that same date. We disclaim jurisdiction over the transfer of the interstate and foreign certificates issued to Skybus Airlines, LLC, to Skybus Airlines, Inc. We reissue the section 41102 interstate and foreign scheduled passenger certificates issued to Skybus Airlines, LLC, by Order 2006-3-12, in the name Skybus Airlines, Inc., effective May 10, 2007. Should Skybus Airlines, Inc., propose to conduct operations with more than 8 aircraft, we direct it to notify the Department in writing at least 45 days prior to the proposed change in operations and demonstrate its fitness to conduct such operations before their commencement. By: Todd Homan |
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