Inter-Island Airways, Inc.

OST-2007-26807 - Certificate of Public Convenience - Interstate and Foreign Scheduled Passenger

January 3, 2007

Application for a Certificate of Public Convenience and Necessity - Bookmarked

Inter Island Airways, Inc is presently the only U.S. air carrier providing domestic air service in American Samoa between Pago Pago International Airport on the island of Tutuila and Manu'a Islands as an air taxi on‑demand Part 135 operator. Inter Island Airways utilizes the Dornier 228‑212 type aircraft for its on‑demand air service.

Inter Island Air proposes to operate its domestic scheduled flights based on a slight increase of flights from its current on-demand operations for its interstate schedule. There are no other U.S. air carriers serving this route. The Manu'a Islands have two airports, Fitiuta on the island of Tau and Ofu on the island of Ofu.

On its regular schedule, Inter Island Air proposes to conduct nine roundtrip flights weekly to Tau Island of the Manu'a Islands from Pago-Fitiuta-Pago with a daily flight and two additional flights on Monday and Friday. Inter Island Air proposes to conduct five flights weekly to island of Ofu from Pago-Ofu-Pago.

By: Inter-Island, Alex Sene, 684-633-7002

January 19, 2007

Amendment of Application for Authorization to Conduct Scheduled Passenger Operations as a Commuter Air Carrier

Inter-Island Airways, Inc., hereby amends and modifies the authorization sought in the above referenced proceeding from a Certificate of Public Convenience and Necessity to Commuter Air Carrier Authorization under 49 U.S.C. 47738.

As the application submission requirements in 14 C.F.R. 204.3 also apply to applications for commuter air authority, Inter Island Airways believes no further information is required to support this amendment. The information in Inter-Island Airway's application remains current as Inter-Island Airway will update its financial and other information since the original application January 3, 2007.

As detailed in the application, Inter-Island Airways currently operates on-demand air charter service. Inter-Island Airways is requesting to engage in scheduled air transportation of persons, property, and mail to the following geographic areas:

• Tutuila, American Samoa
• Ofu Island and Tau Island of the Manu'a Group in American Samoa
• Maota and Faleolo, Independent State of Samoa

The type of aircraft Inter-Island Airways, Inc. will use to serve these markets is the Donrier 228-212.

Counsel: Inter-Island, Alex Sene, 684-633-7002, alex@samoatelco.com

January 29, 2007

Supplement No. 1 to Application - Bookmarked

1. Financial Statements
2. Certificate of Good Standing

Counsel: Inter Island, Alex Sene, 684-633-7002, alex@samoatelco.com

February 2, 2007

DOT Request for Additional Information

1. Ownership and Management
2. Financial Position and Operating Plans
3. Compliance Disposition

By: Air Carrier Fitness Division, Damon Walker

February 21, 2007

Supplement No. 2

1. Ownership and Management
2. Financial Position and Operating Plans
3. Compliance Disposition

Counsel: Inter Island, Alex Sene, 684-633-7002, alex@samoatelco.com

March 9, 2007

Request for Additional Information

1. Shareholder Information
2. Ownership
3. Financial Certification

By: Air Carrier Fitness Division, Damon Walker

March 14, 2007

Supplement. No. 3 - Bookmarked

1. Ownership and Management of Affiliated Companies
2. Officers, Directors and Shareholders
3. Financial Support from Affiliated Company

By: Inter Island, Alex Sene, 684-633-7002, alex@samoatelco.com

March 26, 2007

Opposition of Trans Executive Airlines

On behalf of all of Interisland Airways, we hereby protest the current application of Inter Island Airways Inc., doing business in Pago Pago American Samoa for an application to operate as a commuter air carrier. Our concern is the applicant's use of the same name, Inter Island Airways, Inc. as is used by Trans Executive Airlines of Hawaii. We were sent the application and related documents on February 26, 2007 by Mr. Alex Sene, Jr.

By this letter, we are not commenting upon the applicant's fitness to receive a certificate. However, because the State of Hawaii and the Territory of American Samoa are relatively close geographically, we are concerned about the confusion that would be created should the Department of Transportation allow the applicant to operate as Inter Island Airways, Inc. Trans Executive Airlines of Hawaii d/b/a Interisland Airways has used that name for many, many years. We currently operate a charter service. We are concerned that another carrier operating under the same name would create confusion, especially since it is located relatively close to our operations.

We, therefore, ask the Department of Transportation to inform the applicant that it may not use the name of Inter Island Airways, Inc. or a similar name for its operations. Clearly, the applicant may change its name to something more reflective of its operations in Pago Pago. However, as currently styled, we must protest the application of Inter Island Airways, Inc. and ask the Department of Transportation to deny it on the grounds that it may cause confusion to the traveling public.

Counsel: Marr Hipp, Richard Rand, 808-536-4900, rrand@marrhipp.com

April 25, 2007

DOT Request for Additional Information

Title 49 requires that authority to engage in air transportation be held only by citizens of the United States as defined in 49 U.S.C. 40102(a)(15). That section requires, among other things, that 1) the President, 2) two-thirds of the board of directors, and 3) two-thirds of the other managing officers be citizens of the United States. While IIA currently meets the above discussed requirements, it appears that IIA’s proposed operations would fail to meet the later requirement, since 2 of the 5 (i.e. 60 percent) managing personnel IIA identified for its proposed operations are not U.S. citizens.

Therefore, we will defer our review of IIA’s application until the air carrier has provided us with a revised list of key personnel that conforms to the requirements of 49 U.S.C. 40102(a)(15).

By: Air Carrier Fitness Division, Damon Walker

May 1, 2007

Supplement No. 4

This Supplement is filed to respond to the Department's request for revised list of key personnel that conforms to the requirements of 49 U.S.C. 40102(a)(15) dated April 25, 2007.

1. Management Change
2. Outstanding Judgements
3. Compliance Disposition

Counsel: Inter Island, Alex Sene, 684-633-7002, alex@samoatelco.com

Order 2007-6-14
OST-2007-26807 - Certificate of Public Convenience - Interstate and Foreign Scheduled Passenger

Issued and Served June 19, 2007

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

Inter Island Air states that it intends to provide scheduled passenger service, using small aircraft, offering nine roundtrip flights weekly between Tau Island, American Samoa, and Pago Pago, American Samoa; five roundtrip flights weekly between Ofu Island, American Samoa, and Pago Pago, American Samoa; and 14 roundtrip flights weekly between Upolu Island, Samoa, and Pago Pago, American Samoa.

The company began performing operations as a Part 135 Single Pilot Operator from its headquarters in Pago Pago, American Samoa, in 1995 using an Aero Commander 680E aircraft. The applicant provided air transportation for approximately three years until ceasing operations in 1998, citing unfavorable market conditions and difficulties experienced in obtaining suitable aircraft.

By: Andrew Steinberg

Order 2007-7-2
OST-2007-26807 - Commuter Air Carrier Under Section 49 USC 41738

Issued and Served July 5, 2007

Final Order

We find that Island Airways, Inc. d/b/a Inter Island Air is fit, willing, and able under 49 U.S.C. 41738 to provide scheduled passenger service as a commuter air carrier.

By: Andrew Steinberg

July 26, 2007

Re: Additional Information

In compliance with the Department of Transportation’s Order 2007-6-14, issued June 19, 2007 granting Inter Island Airway’s, Inc. d/b/a Inter Island Air application for commuter air carrier authority, we are pleased to submit the required information prior to IIA’s commuter air carrier authority becoming effective:

1. A copy of the IIA's Air Carrier Certificate and Operations Specifications authorizing such operations from the Federal Aviation Administration
2. A certificate of insurance on OST Form 6410 evidencing liability insurance coverage meeting the requirements of 14 CFR 205.5(b) for all of its aircraft
3. A revised list of pre-operating expenses already paid and those remaining to be paid, as well as independent verification that IIA has available to it funds sufficient to cover any remaining pre-operating expenses and to provide a working capital reserve equal to the operating costs that would be incurred in three months of operations.

By: Inter Island, Alex Sene, 011-684-699-7500

Order 2007-8-11
OST-2007-26807 - Certificate of Public Convenience - Interstate and Foreign Scheduled Passenger

Issued and Served August 15, 2007

Order Confirming Oral Action and Issuing Effective Commuter Authorization

By this order we (1) confirm our oral action of August 6, 2007, making the commuter authorization issued to Inter Island Airways effective on that date and (2) reissue IIA's commuter air carrier authorization to reflect its effective date.

By: Todd Homan