BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of UNIVERSAL JET AVIATION, INC. Docket DOT-OST-2011-0152 for an exemption from 14 C.F.R. Part 298 APPLICATION OF UNIVERSAL JET AVIATION, INC. FOR RENEWAL OF PENDENTE LITE EXEMPTION AND MOTION TO SHORTEN ANSWER PERIOD Communications with respect to this document should be sent to Michael McCauley President UNIVERSAL JET AVIATION INC. Boca Raton Airport 3700 Airport Road Suite 204 Boca Raton, FL 33431 (961) 989-0025 Lorraine B. Halloway Gerald F. Murphy CROWELL & MORING LLP 1001 Pennsylvania Avenue, NW Washington, DC 20004-2595 (202) 624-2500 lhalloway@crowell.com gmurphy@crowell.com Counsel for Universal Jet Aviation, Inc. November 20, 2011 NOTICE Answers to this application would be due under normal procedures on December 6, 2011. Universal Jet Aviation, Inc. is requesting that the Department shorten the answer period and require answers to be filed no later than Monday, November 28, 2011, or to act without waiting for answers. Universal will conduct a poll of all carrier representatives on the service list to this application and immediately notify the Department of the results.
BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of UNIVERSAL JET AVIATION, INC. Docket DOT-OST-2011-0152 for an exemption from 14 C.F.R. Part 298 APPLICATION OF UNIVERSAL JET AVIATION, INC. FOR RENEWAL OF PENDENTE LITE EXEMPTION AND MOTION TO SHORTEN ANSWER PERIOD Universal Jet Aviation, Inc. ( Universal or the Company ) requests a renewal of its exemption pendente lite from Part 298 of the Department s Economic Regulations granted by the Department pursuant to Order 2011-8-19, allowing Universal to operate one executiveconfigured Boeing 737 aircraft ( Boeing Business Jet or BBJ ) in on-demand charter operations. Absent renewal, Universal s exemption will expire on November 30, 2011. Extending the relief provided to Universal is in the public interests of preserving contract sanctity and providing service options for passengers, and under the unique circumstances presented. Indeed, the same compelling reasons supporting the Department s initial grant of Universal s exemption just three short months ago continue today and justify the requested renewal. In support of its application, Universal states as follows 1. On August 17, 2011, the Department granted Universal an exemption until November 30, 2011 from the provisions of 14 C.F.R. Part 298 to the extent necessary to enable it
Page 2 to operate a single Boeing Business Jet in on-demand charter operations. 1 The Company has operated the 16-seat BBJ as part of its extensive and worldwide charter operations, involving nearly a dozen other large cabin business jet aircraft 2 with essentially the same characteristics, capability, and operational profile, and provided safe and reliable air transportation to its customers in doing so. Universal has a proven track record of more than 10 years of providing global air transportation solutions to private individuals and corporate personnel. There is no question that Universal possesses the necessary experience and expertise to offer charter service with the BBJ as part of its fleet. 2. This exemption was initially granted in part because [Universal s] air taxi registration was inadvertently processed with the addition of the BBJ, [and hence Universal] reasonably believed that the BBJ qualified for air taxi service when placed in operation, and thus entered into contracts, including a long-term contract, for the use of this specific aircraft, and with due regard to the inconvenience and possible additional expense for passengers who have already contracted for the use of this aircraft. 3 In addition to ongoing commitments to its customers, the Company has an obligation to provide charter service with the BBJ under its Management Agreement with the aircraft s owner, which was also premised on the air taxi 1 2 Order 2011-8-19 at 3. Universal has 11 large cabin Gulfstream business jets, 1 mid-size Learjet and a Bell 430 executive helicopter listed on its FAA certificate. See http//avinfo.faa.gov/detail.asp?dsgn_code=uj8a&oper_far=135&oper_name=universal+jet+aviation +INC. 3 Order 2011-8-19 at 2. Earlier this year, the Federal Aviation Administration ( FAA ) approved Universal s request for addition of one Boeing Business Jet to its operations specifications and Part 298 air taxi registration. On August 4, 2011, FAA advised that this request had been accepted and approved in error (see Letter from John S. Duncan, Manager, Air Transportation Division, FAA, to Universal Aviation, Inc., dated August 4, 2011 ( Duncan Letter )) and the BBJ was removed from Universal s operations specifications on August 10, 2011. See Letter from Jerry Proenza, Principal Operations Inspector, South Florida FSDO, FAA, to Richard Peck, Director of Operations, Universal Aviation, Inc., dated August 11, 2011. FAA also advised Universal that it would be able to operate the BBJ under an exemption from Part 298. See Duncan Letter supra.
Page 3 registration discussed above. The same rationale upon which the Department granted Universal relief in August hold true today. 3. DOT s exemption was also premised on the expectation that Universal would prosecute [its] applications for appropriate authority as expeditiously as possible. The Company has done so. Following through with continued good faith effort[s] to comply with the laws and regulations governing its services, 4 Universal believes it has satisfactorily responded to the Department s requests for information and anticipates that the Department will issue a show cause order for each of the Company s pending certificate applications in the coming weeks. 5 The evidence submitted in those proceedings clearly establishes that Universal is fit, willing and able to provide foreign and interstate charter air transportation of persons, property and mail. 6 4. Moreover, because all operating costs for the BBJ including but not limited to those for maintenance, insurance and flight crews, continue to be passed through to the aircraft s 4 Order 2011-8-19 at 3. 5 See Dockets DOT-OST-2011-0150 (foreign certificate) and DOT-OST-2011-0151 (interstate certificate). As was the case with its initial exemption application in this docket, no answers or objections were submitted on either of Universal s pending certificate applications and the time period for responsive pleadings has long since expired. 6 Information regarding Universal s proposed operations and its fitness to hold a certificate of public convenience and necessity to provide charter air transportation is provided with those applications and incorporated herein by reference pursuant to 201.3 of the Department's Regulations.
Page 4 owner under the parties management arrangement, there is little need for concern regarding an impact on Universal s financial position from the addition of this aircraft to its certificate. 7 5. Universal will also maintain the BBJ s current executive seating configuration and has no plans to operate the aircraft in a configuration that will ever exceed, nor come even close to, 60 seats. Indeed, the Company is not permitted to operate aircraft with more than 30 seats under the terms of its existing FAA air carrier certificate. 8 6. The same public interest considerations are present here as existed at the time the Department granted Company s initial exemption application. The Company has clearly demonstrated its ability and fitness to conduct the operations here at issue, and has prosecuted its applications for foreign and interstate charter certificates with all possible haste. Universal merely seeks temporary relief until such time as the Department has taken action on its pending certificate applications. 7. Universal also requests that the Department shorten the period for answers to this application, so that answers are due no later than Monday, November 28, or act without waiting for answers, to enable Universal to continue to provide the charter transportation authorized by Order 2011-8-19. While the Department s normal procedures would provide for an answer 7 Universal does not incur any additional aircraft operating expenses unless it has charter business to cover such costs. Even then, all such expenses (e.g., fuel) are passed on to the charter customer subjecting Universal only to the risk of non-payment, for which the Company would still be able to pursue all available legal remedies under the applicable charter contract. See Application of Universal Jet Aviation, Inc., dated August 15, 2011, at 5 and Exhibit F (Aircraft Management Agreement), in Docket DOT-OST-2011-0150; see also Supplement No. 2 Application of Universal Jet Aviation, Inc., dated October 7, 2011, in Docket DOT-OST-2011-0150, at 2, note 2. The Company also has access to a line of credit well in excess of the amount required to meet the Department s financial fitness test with respect to the addition of the BBJ to its operations. See Supplement No. 1 to Application of Universal Jet Aviation, Inc., dated August 30, 2011, at 4 and Exhibit F (letter of credit verification) and Supplement No. 2 Application of Universal Jet Aviation, Inc., at Exhibit C (additional letter of credit verification). 8 See 14 C.F.R. 110.3 (2011) (aircraft to be used in on-demand operations may have an actual passenger-seat configuration of not greater than 30 seats, excluding crewmember seats, and a payload capacity not exceeding 7,500 pounds).
Page 5 period of 15 days, good cause clearly exists for the Department to provide this relief under the circumstances presented. Nevertheless, Universal will conduct a poll of all carrier representatives listed on the service list to this application and immediately notify the Department of the results. WHEREFORE, Universal respectfully requests that the Department shorten the answer period and promptly renew Universal s exemption pendente lite from the provisions of Part 298 of its Economic Regulations, thus permitting Universal to continue to operate one executiveconfigured Boeing Business Jet in on-demand charter operations pending the Department s action on Universal s pending applications for a certificates of public convenience and necessity to engage in interstate and foreign charter air transportation. November 20, 2011 Respectfully submitted, CROWELL & MORING LLP /s/ Gerald F. Murphy Lorraine B. Halloway Gerald F. Murphy lhalloway@crowell.com gmurphy@crowell.com Counsel for Universal Jet Aviation, Inc.
CERTIFICATE OF SERVICE I certify that I have this date served the foregoing document on the following persons in accordance with the Department s Rules of Practice. mlbenge@zsrlaw.com marshall.sinick@ssd.com jamestello@earthlink.com pmurphy@lopmurphy.com Jerry.Proenza-SR@faa.dot.gov Ken A. Day Airport Manager 3701 FAU Boulevard Suite 205 Boca Raton, FL 33431 Fax (561) 391-2238 /s/ Gerald F. Murphy Gerald F. Murphy November 20, 2011