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OST-2005-22719 - Safe Air d/b/a Island Express - Commuter Air Carrier
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Safe Air International, Inc. d/b/a Island Express OST-2005-22719 - Commuter Air Carrier Fitness
December 15, 2005 Safe Air has operated as a small commuter/cargo carrier between Ft. Lauderdale, Florida and the Bahamas Abacoa outer islands with regular flights to Marsh Harbour, Treasure Cay, N. Eleuthra and other destinations. Safe Air also maintains Interline agreements with some of the major carriers. Once the scheduled commuter application is granted, applicant plans to resume regular scheduled flights on a daily basis from Ft. Lauderdale International airport to Marsh Harbour, Treasure Cay and N. Eleuthra in the Bahamas. In addition applicant will continue to offer cargo and charter service as well. The underlying traffic and load factor was based on operating 2 flights on a daily basis from Fort Lauderdale to Marsh Harbour and Treasure Cay and then return flights to Fort Lauderdale. Flights to N. Eleuthra would be on a twice a week basis. It was also determined (based on previous experience) that the load factor on each flight would average out to five passengers per flight or 56% load factor (aircraft capacity is maximum of nine passengers). By: Ruben Aerich
March 8, 2005 This letter is in reference to the information you submitted on December 15, 2004, on behalf of Safe Air International, Inc., requesting approval from the Department for the carrier to resume commuter air carrier operations. We have reviewed the information and find that additional and/or clarifying information is necessary for us to redetermine Safe Air's fitness to resume operations. That information is set out in the enclosed Information Request. By: Air Carrier Fitness, Vanessa Wilkins
April 13, 2005 This letter and its enclosures are in response to the information request submitted to Safe Air International, Inc. with your letter of March 8, 2005. First, please allow me to thank you for your patience in permitting us to assemble the information requested. As I explained, it was necessary for our accountant to prepare a current balance sheet and profit and loss statement for Safe Air and, unfortunately, this time of year is extremely difficult for accounting firms. By: Safe Air, David Price
May 5, 2005 As I mentioned in our conversation, we have concluded our preliminary review of the information you submitted on December 15, 2004, and April 13, 2005, and based on that information, it appears that Safe Air does not meet the Department's financial fitness requirements. Although Safe Air did not provide a list of pre‑operating costs associated with resuming operations, the carrier did provide its expense projections for its first year of resumed commuter operations, during which time the earner expects to incur operating expenses of $956,306. To meet our financial fitness test, we estimate that Safe Air will need one quarter of that amount, or $239,076. By: Air Carrier Fitness, Vanessa Wilkins
August 2, 2005 I enclose a copy of a letter of credit issued by Citrus and Chemical Bank of Lakeland, Florida issued to Daral Aviation, LLC and Island Express Airlines, LLC. By: Safe Air, David Price
August 5, 2005 Thank you for the information that you submitted on July 2, 2005, on behalf of Safe Air International, Inc. d/b/a Island Express (Island Express). As we have noted in previous correspondence, Safe Air must demonstration that it has access to $180,673 for its working capital to meet the Department's financial fitness requirements to resume commuter air carrier operation. By: Air Carrier Fitness, Vanessa Wilkins
August 16, 2005 I recently provided your ofice with a copy of a letter of credit from Citrus & Chemical Bank in the amount of $150.000 on behalf of Safe Air International, lnc to meet the Department of Transportation’s financial fitness requirements. You very properly requested a statement from Citrus & Chemical Bank and a letter from DarAl Aviation. The financial backers of Safe Air Internationai, Inc. have suggested a simpler alternative method of guaranteeing Safe Air International, Inc. sufficient working capital to meet the Department’s requirements. LJH Investments, LLC and DarAl Aviation, LLC have agreed to serve as financial partners with Safe Air International, Inc. and have pledged $180,673 in the LJH Investment account for the sole and exclusive use of Safe Air International. Inc. to meet its working capital needs for the year of its operation commencing August 15, 2005. This investment account is held by Allen & Company and I attach a copy of the July 3 I. 2005 account showing an asset value of $639,954,23. LJH Investments, LLC has directed Allen & Company to confirm that the amount of $180,673 is to be maintained for the working capital needs of Safe Air International, Inc. I enclose an unsigned copy of LJH Investment’s letter and a draft of a letter from Allen & Company both originals will be sent to you by Overnight Mail to verify the fact that the July 31, 2005 statement is correct and that the funds required to meet the Deparment’s financial fitness requirements are set aside for the sole and exclusive use of Safe Air Inlernational, Inc. By: Safe Air, David Price
September 16, 2005 This letter follows our conversation of last week concerning the request of Safe Air International, Inc. d/b/a Island Express to resume operations as a commuter air carrier. As we discussed, in cases where an air carrier has ceased operations for more than three months, it has been the Department's practice to redetermine the carrier's fitness in a public proceeding and issue a show cause order before finding the camer fit to resume operations. In Safe Air's case, before we are able to begin show cause procedures, all of the information the carrier has submitted to the Air Carrier Fitness Division in support of its request must be placed in the public docket in accordance with section 204.7(b) of our rules. Therefore, we will give Safe Air 30 days from the date of this letter to file in public docket its letters dated December 15, 2004, and April 13, and August 2, 15, and 16, 2005, previously submitted to the Air Carrier Fitness Division. Should Safe Air desire confidential treatment of infomation contained in these letters, the carrier should also file a motion for confidential treatment, identifying the specific information to be treated confidentially under section 302.12 of our rules. By: Air Carrier Fitness, Vanessa Balgobin
October 3, 2005 Re: Objection to Public Disclosure Safe Air International, Inc. hereby authorizes the US Department of Transportation, Air Carrier Fitness Division, to file its copies of the letters as set forth in your letter of September 16, 2005 in the Public Docket with the exception of the Statement of LJH Investments, LLC attached to the letter from Allen & Company dated August 15, 2005. I enclose an objection to public disclosure of information in accordance with Section 302.12 Commuter Carrier Regulations. By: Safe Air, David Price
Order 2008-2-38 Issued and Served February 29, 2008 Order Revoking Commuter Authorization On December 15, 2004, Safe Air filed an application to resume commuter operations. In support of its request, Safe Air filed some of the fitness data required by section 204.3 of our rules (14 CFR § 204.3). The air carrier supplemented its application with further information, most recently on February 8, 2006. It has now been nearly four years since Safe Air ceased commuter air carrier operations, and the air carrier has yet to provide all of the information necessary to enable the Department to redetermine Safe Air’s fitness to recommence commuter operations. By: Todd Homan |
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