OST-97-2720 | USA Jet | July 15, 1997

APPLICANT REQUESTS THAT THIS APPLICATION BE PROCESSED BY NON-HEARING PROCEDURES UNDER SUBPART Q OF THE DEPARTMENT OF TRANSPORTATIONS PROCEDURAL REGULATIONS.

Notice: Any person who wishes to support or oppose this application must file an answer by August 12, 1997 and serve that answer on above-named counsel.

July 15, 1997

Application of

USA JET AIRLINES, INC.

for amendment and reissuance of its certificate of public convenience and necessity, pursuant to 49 U.S.C. § 41102, to include foreign charter air transportation of persons property and mail

USA JET AIRLINES, INC.

USA Jet Airlines, Inc. ("USA Jet") applies, pursuant to Section 41102 of Title 49 of the United States Code, Parts 201 and 204 of the Economic Regulations, and Subpart Q of the Procedural Regulations (14 C.F.R Parts 201,204 and Part 302. 1701, et seq.) of the Department of Transportation ("DOT" or "Department"), for amendment and reissuance of its certificate of public convenience and necessity to authorize USA Jet to provide foreign charter air transportation of persons, property and mail. USA Jet requests that this application be processed through the use of expedited non-hearing procedures, and that the Department's final decision on this application be issued in time to enable USA Jet to commence passenger operations on or about September 1, 1997. To enable USA Jet to meet this objective, USA Jet requests that the Department, if possible, proceed directly to a Final Order in this matter. In support of its application, USA Jet states as follows:

1. USA Jet is a corporation organized and existing under the laws of the State of Delaware. USA Jet is located at Hangar 2064 D Street, Willow Run Airport, Belleville, Michigan 48111; its telephone number is (313) 483-7833.

2. USA Jet is a citizen of the United States as defined in 49 U.S.C. § 40102(a)(15). All of USA Jet's shareholders, of ricers and directors are U.S. citizens, and the company is controlled de facto and de Are by U. S. citizens.

3. USA requests that its certificate of public convenience and necessity be amended to include authority to carry passengers in foreign charter transportation.

4. USA Jet requests that this application be processed through expedited non-hearing procedures. There are no issues of material fact, and the use of expedited procedures will serve the public interest by helping fill an existing need for the service proposed herein as soon as possible. The Department has, on three occasions in as many years (1994, 1995 and 1996), thoroughly reviewed the fitness of USA Jet and on each occasion found it fit, willing and able to operate as a certificated air carrier. Given this history, USA Jet respectfully submits that expedited processing of its application is warranted, including the omission of a show-cause order.

5. All supporting data and compliance information required by the Department's regulations is contained in USA Jet's concurrent application for a certificate to engage in interstate charter air transportation and the exhibits attached thereto. Pursuant to 14 CFR 201.3, USA Jet incorporates all such data and information herein by reference.

6. USA Jet is fit, willing and able to engage in foreign charter air transportation or persons, property and mail in compliance with the requirements of Title 49 of the United States Code and other applicable laws and regulations. USA Jet desires to commence revenue operations with DC-8 "comb)" aircraft as soon as possible. Given the non-controversial nature of the authority requested, USA Jet asks that the Department issue a Final Order to enable USA Jet to commence such operations as quickly as possible.

7. As required by Rule 1704(a)(3) of the Department's Rules of Practice, USA Jet submits the following opening argument:

USA Jet was first issued a certificate to engage in interstate and foreign charter air transportation of property and mail by Orders 94-9-12 and 94-10-43. Its certificates were reissued by Orders 95-2-43 and 96-6-48. USA Jet is an all-cargo carrier providing cargo charter air transportation with a fleet of seven DC-9-15F freighters operated under FAR Part 121, and twelve DA-20 Falcon Jet freighters operated under FAR Part 1-35. In 1996, the Department, in the context of transfer of certificates upon the merger of YIP Group, Inc. ("YIP") and USA Jet, reviewed the citizenship, managerial and technical skill, resources and compliance disposition of USA Jet and found it fit, willing and able to engage in the transportation for which it is certified. See Order 96-6-48.

USA Jet's primary focus has been on satisfying the cargo transportation needs of the automotive industry. Based on the quality and reliability of its service, certain of USA Jet's customers have discussed with it the prospect of USA Jet also accommodating certain passenger transportation requirements. USA Jet therefore plans to add a DC-8-62 combination ("combi") aircraft to its fleet. This aircraft, which will meet Stage 3 noise emission requirements, is configured to carry 28 passengers in addition to cargo in eight pallet positions. /1 This long-range

1/ USA Jet proposes to obtain the aircraft from its subsidiary, Air Transport International Limited Liability Company ("ATI,'), which operates a fleet of over 20 DC-8s including "comb)" aircraft. USA Jet acquired ATI in April 1996. Since the acquisition, ATI has continued to operate as a separate entity.

aircraft is ideally suited to the transportation needs of USA Jet's existing customers as well as prospective customers.

As the Department noted in connection with USA Jet's merger with YIP, USA Jet, its management team, and its financial capabilities clearly satisfy the fitness requirements in all respects. The addition of the passenger authority requested herein is a natural outgrowth of USA Jet's current operations as well as the history of the company and the experience of its key personnel. Numerous members of its organization have years of experience in the passenger charter market, including among others its Director of Operations, Chief Pilot and Director of Maintenance.

USA Jet's financial forecast for the DC-8 operation contemplates first year gross revenues of $6,529,S72 based on 2,268 block hours. USA Jet projects a small DC-8 operating profit for the first year. As USA Jet's financial statements reflect, the company is more than able to support such an operation with internationally-generated funds, and meets the Department's financial fitness requirements. USA Jet also has a $1 million line of credit with the Michigan National Bank, N.A.

USA Jet respectfully urges the Department to grant the authority requested herein on an expedited basis.

WHEREFORE, USA Jet Airlines, Inc. respectfully requests that the Department amend and reissue its certificate of public convenience and necessity to authorize it to provide foreign charter air transportation of persons, property and mail, and that USA Jet be granted such additional or other authority, consistent with this application as may be necessary or proper.

Respectful submitted,

Eileen Gleimer

John R. Copley

Boros & Garofalo, P.C.

1201 Connecticut Avenue, NW, Suite 700

Washington, DC 20036

(202) 822-9070

Counsel for USA Jet Airlines, Inc.

July 15, 1997