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OST-2008-0029 - Family Airlines - Interstate Scheduled Passenger Certificate
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OST-2008-0029 - Certificate of Public Convenience and Necessity - Interstate Scheduled January 24, 2008 Application for Certificate of Public Convenience and Necessity - 13MB - Bookmarked Family Airlines is a Las Vegas based start-up airline, whose highly experienced management team recognizes that profits and sustainable growth in today's airline industry can only be achieved by a strict adherence to multiple profit centers, rather than relying only on passenger revenue. Unlike other airlines. Family will operate five separate and unique profit centers which include: passenger revenue, cargo, catering, inflight entertainment and advertising. Each center will be managed by a separate director who has full Profit and Loss responsibility for his department, but all working together as a team to increase profitability. Although its fares are untraditional. Family believes its effect upon existing carriers should be minimal, considering all its flights are point-to-point from and to the largest metropolitan areas. These unusually low fares are expected to have a positive impact on the market by increasing the total number of passengers choosing to fly. Family will begin flight operations with two 747's flying in opposite directions between Los Angeles to New York (JFK), on to Miami, and return. By the end of its first year. Family will have transported over 5 million passengers with nearly half of those making Las Vegas their primary destination. To accomplish this. Family will have a total of twelve aircraft during its first year making daily non-stop flights to and from Los Angeles, Las Vegas, Orlando, Dallas, New York, Chicago, San Jose, San Francisco, Phoenix, and Honolulu. Counsel: Family Airlines, Laura Ungaro, 702-476-2194, laura.ungaro@familyairlines.com
May 13, 2008 Re: DOT Letter Requesting Additional Measures to Comply with Fitness Requirements According to our records, on September 28, 1992, a similarly named company, Family Airlines, Inc. filed an application with the Department in Docket 48374 requesting authority to conduct interstate scheduled passenger air transportation and listed Mr. Barry Michaels as its Chief Executive Officer and majority shareholder. In that proceeding, the Department became aware of numerous civil and criminal legal actions instituted against Mr. Michaels and his wife Holly Michaels, which included among other things, alleged charges of fraud, conspiracy, and breach of contract, and that there may have been outstanding judgments against Barry and/or Holly Michaels. One of the principal aspects of our investigation in making a fitness determination is whether the applicant, its owners, and other key personnel can be deemed to have a disposition to comply with the laws and regulations applicable to its operations. Based on the information available to us, it appears as though the current applicant, Family Airlines, essentially, is the same company that requested authority from the Department nearly 15 years ago. In light of the above, the Department would not be able to recommend a favorable fitness determination of Family Airlines as long as Mr. Michaels continues to be involved with the company. We will give Family Airlines 30 days, that is, by June 13, 2008, to resolve this matter to our satisfaction. If Mr. Michaels is not sufficiently distanced from Family Airlines, the Department will issue a show cause order proposing to find the applicant is not fit. We remind Family Airlines that it should promptly provide the Department with information regarding any changes it may undergo in its management, finances, or compliance as a result of Mr. Michael's departure. By: Lauralyn Remo
May 30, 2008 Re: Ownership Clarifications | Word Family Airlines, Inc. was registered with the state of Nevada March 18, 1992, approximately 16 years ago. When the pilots—who were the shareholders of FAI--- took over the airlines, Mr. and Mrs. Michaels were to be bought out. From that time, Mr. Michaels had no further involvement in FAI. From that point on, FAI had problems created by the pilot-managed airlines, and never actually took to the air. Further, Mr. Michaels was never paid for his stock. We are informed and believe that FAI went out of business in early 1994. After the Mr. Michaels agreed to be bought out by the pilots—but were never paid—Barry Michaels complied with all DOT requirements, and, inter alia, resigned all positions he held in FAI and his remaining stock was placed with a trustee appointed by the pilots. It is important to note that none of the Michaels’ personal information had any impact on FAI, its owners, or the suitability or operation of the airline. The present applicant, Family Airlines, was registered with the state of Nevada on January 27, 2004. The owners and investors of the FAI of 1992, were the pilots who would be flying the aircraft. The only similarity between the old FAI and the present applicant, Family Airlines, is Barry Michaels. The applicant, Family Airlines, is new, the owners are different, and key personnel have changed in 15 years. Rather than reject the application out of hand, Family Airlines asks to be given the opportunity to proceed with its application, to demonstrate that it complies with any and all DOT regulations. Family Airlines is offering the traveling public a much needed service that will benefit not only the traveler but a suffering airline industry a much needed economic and public relations boost. And Barry Michaels is the moving force behind the innovative approach to marketing the airline industry in a time when airlines are failing and the traveler is disgusted with the procedures required of them to travel. Mr. Michaels has been sufficiently chastened by the regulatory authorities, is surrounded by new, different and qualified key employees and is complying with the letter and spirit of all relevant regulations. We further respectfully request that Family Airlines be given a continuance of 30 days from receipt of the DOT application of the original Family Airlines to familiarize itself with the contents thereof and to prepare a formal response. Counsel: Laura Ungaro, 702-248-6556
June 30, 2008 Please let this company try to beat the competition, SW is cheap and illegal in their behaviors, I will never fly with them again. Assigned seats would be nice, and double booking should be illegal if someone has purchased the ticket, checked in their baggage and were there in plenty of time. As a matter of fact the people in the last herding made it on but not me. ADA discrimination is wrong and SW will go down at some point and time due to their despicable behavior, especially if I have another choice such as Family Airlines. Let them enter the market please, it is much needed. It is not like you get fed on SW, but at least on Family Airlines, you have the opportunity to purchase food, which is really helpful to hypoglycemic customers. By: REH Enterprises, Gretchen Harris
August 27, 2008 Re: Request for Additional Information This letter follows your August 26, 2008, telephone call requesting information on the status of the application filed by Family Airlines Incorporated in Docket OST-2008-0029. As I mentioned during our telephone conversation, at this time, the Department is preparing a list of questions concerning FAI's application. Per your request, attached is a partial list of questions that FAI must answer before the Department is able to make a decision on FAI's application. Please keep in mind that this list of questions is not exhaustive, and FAI should expect to receive a list of additional questions in the near future By: Vanessa Balgobin
September 4, 2008 Re: Request for Additional Information
By: Vanessa Balgobin
September 9, 2008 Re: Craigslist Ad for Volunteers VOLUNTEERS NEEDED! FAMILY AIRLINES THE NEW LAS VEGAS STARTUP AIRLINE WILL OFFER DEEP DISCOUNT FARES COAST TO COAST ON 747's beginning late summer or early Fall pending DOT & FAA approval. The airline IS NOW IN THE CERTIFICATION PROCESS AND NEEDS SVOLUNTEERS TO HELP COMPLETE FAA MANUALS THERE IS NO TECHNICAL EXPERIENCE NECESSARY. BY VOLUNTEERING IT COULD LEAD TO A GRAT EMLOYMENT OPPORTUNITY. By: Family Airlines, Bert Kaufmann, 702-476-2194
September 26, 2008 Following are the responses of Family Airlines to the information requests set forth in your August 28, 2008 letter responding to the application submitted to the Department of Transportation. By: Family Airlines, Bertram Kaufmann
October 6, 2008 Re: Additional Information Response
Counsel: Family Airlines, Bertram Kaufmann, 702-253-1520 |
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