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Order 2021-7-11 Served: July 20, 2021

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Order 2021-7-11 Served: July 20, 2021 Order 2021-7-11 Served: July 20, 2021 F TRA T O NS N P E O M R T T A R UNITED STATES OF AMERICA T A I P O E N D DEPARTMENT OF TRANSPORTATION U N A I T IC E R OFFICE OF THE SECRETARY D E ST AM ATES OF WASHINGTON, D.C. Issued by the Department of Transportation on the 20th day of July, 2021 Application of EXPRESSJET AIRLINES LLC Docket DOT-OST-2021-0044 for a waiver of the 45-day advance filing requirements of 14 CFR § 204.7 and notice of intent to resume interstate and foreign scheduled air transportation ORDER TO SHOW CAUSE Summary By this Order, the U.S. Department of Transportation (the “Department”) tentatively finds that ExpressJet Airlines LLC (“ExpressJet”) is a citizen of the United States and is fit, willing, and able to conduct interstate air transportation of persons, property, and mail as a U.S. certificated air carrier, subject to conditions. Before we issue a final decision on ExpressJet’s application to resume operations, we will afford interested parties an opportunity to show cause why we should not adopt as final these tentative findings and conclusions. Background Pursuant to section 41102 of Title 49 of the United States Code (the “Transportation Code”), any company proposing to provide air transportation as an air carrier must be found “fit, willing, and able” to conduct the services proposed. Moreover, once an air carrier is found fit initially, it must remain fit in order to retain its authority.1 If an air carrier ceases operations under its economic authority, 14 CFR § 204.7 of the Department’s Aviation Economic Regulations provides that its authority to conduct those operations is automatically suspended as of the date those operations ceased and the air carrier may not recommence operations until its fitness to do so has been re- established by the Department. When conducting a redetermination of an air carrier’s fitness under section 204.7,2 the Department applies the same three-part test that it uses to determine the fitness of new air carrier applicants. The three areas of inquiry that must be addressed in order to determine a company’s fitness to 1 See 49 U.S.C. § 41110(e). 2 Section 204.7 provides that, if an air carrier ceases operations, it has one year from the date of cessation to resume operations, otherwise its certificate authority will be revoked for dormancy. 2 resume operations are whether it (1) will have the managerial skills and technical ability to conduct the proposed operations, (2) will have access to resources sufficient to commence operations without posing an undue risk to consumers, and (3) will comply with the Transportation Code and regulations imposed by Federal and State agencies. We must also determine that the air carrier remains a U.S. citizen. ExpressJet holds certificates of public convenience and necessity to engage in interstate and foreign air transportation of persons, property and mail.3 The air carrier operated under its authority until September 30, 2020, when it conducted its last flight for United Airlines, Inc. (“United”). On April 15, 2021, ExpressJet filed a Notice in Docket DOT-OST-2021-0044 to resume interstate scheduled passenger services and requested the Department waive the 45-day advance filing requirement of the information to be provided to the Department pursuant to 14 CFR § 204.3, so as to permit ExpressJet to resume operations at an earlier date.4 ExpressJet states that, although the business plan developed by the air carrier for the initial 12-month period following its resumption of scheduled operations does not involve service to foreign markets, in order to preserve operational flexibility ExpressJet asks that the Department find it fit, willing, and able to resume operations under its foreign authorities.5 On April 29, 2021, ExpressJet filed a Motion requesting that the Department shorten the answer period to its tentative decision in this proceeding from fourteen (14) calendar days to seven (7) business days. We have received no answers opposing the application and no special issues regarding the applicant have come to our attention. Under these circumstances, we propose to decide the issue of the applicant’s fitness on the basis of the written record. Based on our review of the record of this case and other data available to the Department, we tentatively find that ExpressJet is a U.S. citizen and that it is fit, willing, and able to conduct interstate scheduled air transportation, subject to conditions. However, we will give interested persons an opportunity to show cause why we should not adopt as final these tentative findings and conclusions. 3 ExpressJet’s interstate and foreign certificate authority was last reissued by Order 2019-5-8. ExpressJet holds the following international authorities: - Blanket open skies certificate authority (See Order 2012-1-3). - U.S.-Mexico certificate authority (See Order 2020-10-11). - Exemption authority to engage in scheduled foreign air transportation of persons, property, and mail between a point or points in the United States and point or points in the Dominican Republic (See Notice of Action Taken, dated February 25, 2019, in Docket DOT-OST-2006-24591); between the United States and Belize (See Notice of Action Taken, dated December 8, 2016, in Docket DOT-OST-2006-25018); and between the United States and Bahamas (See Notice of Action Taken, dated March 4, 2004, in Docket DOT-OST-2004-17112). - Blanket route integration authority (See Order 2012-1-3). 4 ExpressJet supplemented its applications with additional information, most recently on May 13, 2021. 5 We have decided to defer action on ExpressJet’s request to resume foreign air transportation until the air carrier submits an operating plan describing its proposed foreign scheduled passenger operations. 3 FITNESS The Company ExpressJet, a limited liability company organized under the laws of the State of Delaware, is headquartered in Atlanta, Georgia, and has provided scheduled passenger air transportation as a certificated air carrier for over 30 years. The air carrier began operations as a subsidiary of Delta Air Lines, Inc. (“Delta”) and Continental Airlines, Inc. (“Continental Airlines”), and later became an independent regional airline provider operating scheduled air service to Delta, American Airlines, Inc. (“American”), and United. ExpressJet is currently wholly-owned by ManaAir, LLC (“ManaAir”), which is, in turn, owned by KAir Enterprises LLC (“KAir”) (50.1 percent) and United (49.9 percent).6 Managerial Competence ExpressJet’s management and key personnel consist of the following individuals, each of whom is a U.S. citizen: Mr. Subodh Karnik - Chairman and Chief Executive Officer (“CEO”) Mr. John R. Greenlee - Chief Financial Officer (“CFO”) and Senior Vice President of Planning and Operations Control Mr. Perry Baker – Vice President of Finance Mr. Bruce Jones – Vice President of Maintenance and Engineering Mr. Kevin Langford – Vice President of Human Resources Mr. Jonyt Meyer – Vice President of Information Technology Mr. Douglas Brady – Director of Safety of Corporate Security and Compliance Mr. Darrin K. Greubel – Director of Operations Mr. Richard Marzullo – Director of Maintenance Operations Mr. Woleteberhan Hiwot Taddesse – Chief Pilot Mr. Kevin Tomlison – Chief Inspector and Director of Quality Control and Engineering Mr. Subodh Karnik serves as President and CEO of ExpressJet and as Chairman and Managing member of ManaAir, the parent company of ExpressJet (2018-present). Mr. Karnik has over 30 years of aviation experience, beginning his career in 1991 with Northwest Airlines in Marketing and Strategic Planning roles. He later served in various senior management positions, including President and CEO, Chief Operating and Commercial Officer, Executive Vice President, Senior Vice President, and Vice President for various domestic and foreign air carriers, including United, Jet Airways Ltd. (Mumbai, India), Global Aero Logistics, Inc., Delta, Continental Airlines, and Northwest Airlines; and for aviation consulting firms ICF-SH&E and NBS Associates (1991- 2018). Before starting his aviation career, he served as Manager, Consulting for Ernst and Young (1988-1991), and Manager, Business Transformation for Unilever and Tata Consultancy Services, India (1982-1988). He holds an MBA degree from the University of Michigan, Ross School (1991) and a Bachelor of Science degree in Mechanical Engineering from Birla Institute of Technology and Sciences, Pilani, India (1981). He currently serves as a member on the Board of Directors of KAir, ManaAir, ExpressJet, and the Regional Airline Association, and previously served as a member on the Board of Directors of Copa Airlines, Worldspan, ARINC, CommutAir 6 ExpressJet’s ownership is further discussed under the CITIZENSHIP section of this order. 4 Cares, National Air Carrier Association (Chairman – 2008), National Defense Transportation Association, Tourism Fiji, Jamaica Tourist Board and Carter Center Board of Advisors. Mr. John R. Greenlee serves as CFO and Senior Vice President of Planning and Operations Control for ExpressJet (2019-present). Prior to that, Mr. Greenlee served in various positions of increasing responsibilities for United, such as Managing Director, United Express; Managing Director of Financial Analysis, Project Quality and United Express Regional Department Finance; Managing Director of Fleet Planning and Management; and Senior Analyst of Long Range Network Planning and Corporate Development (1997-2019). Before that, he served as Project Manager for Bell Industries (1996-1997), Technical Sales for Honeywell, Inc. (1991-1995), and General Manager for Group Dekko International, Inc. (1989-1991) and Kendaville Aviation, Inc. (part time) (1982- 1989). Mr. Greenlee holds an MBA degree with a concentration in Finance and Operations from Indiana University (1997) and a Bachelor of Arts and Science degrees in Mechanical Engineering and Economics from Stanford University (1989). He is a licensed multi-engine instrument pilot and Certified Weather Observer. Serving as Vice President of Finance for ExpressJet is Mr.
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