Before the Department of Transportation Office of the Secretary Washington, D.C
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BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. ) In the Matter of the Application of ) ) VIA AIRLINES, INC. ) Docket DOT-OST-2021-0087 d/b/a STERLING AIRWAYS ) ) For reissuance of Commuter Air Carrier Authorization ) (corporate name change to Sterling Airways, Inc.) ) ) __________________________________________ ) MOTION FOR LEAVE TO FILE OTHERWISE UNAUTHORIZED DOCUMENT AND OPPOSITION OF CORVUS AIRLINES, INC. TO VIA AIRLINES, INC. DBA STERLING AIRWAYS - REISSUANCE OF COMMUTER AIR CARRIER AUTHORIZATION - CORPORATE NAME CHANGE Communications with respect to this document should be addressed to: Todd A. Dixon William B. Kirshenbaum BARNES & THORNBURG LLP 2029 Century Park East Suite 300 Los Angeles, CA 90067 [email protected] [email protected] Counsel for Corvus Airlines, Inc. d/b/a Ravn Alaska August 5, 2021 BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. ) In the Matter of the Application of ) ) VIA AIRLINES, INC. ) Docket DOT-OST-2021-0087 d/b/a STERLING AIRWAYS ) ) For reissuance of Commuter Air Carrier Authorization ) (corporate name change to Sterling Airways, Inc.) ) ) MOTION FOR LEAVE TO FILE OTHERWISE UNAUTHORIZED DOCUMENT AND OPPOSITION OF CORVUS AIRLINES, INC. TO VIA AIRLINES, INC. DBA STERLING AIRWAYS - REISSUANCE OF COMMUTER AIR CARRIER AUTHORIZATION - CORPORATE NAME CHANGE Pursuant to the Department's Rules of Practice, 14 C.F.R. §§ 302.6(c), Corvus Airlines, Inc. d/b/a Ravn Alaska (“Corvus”) hereby respectfully submits this Motion for Leave to File an Otherwise Unauthorized Document (“Motion”) and Opposition to the Application of Via Airlines, Inc. d/b/a Sterling Airways (“Via”) for Reissuance of Commuter Air Carrier Authorization in the name of Sterling Airways, Inc. (the “Application”). In accordance with 14 C.F.R. § 302.6(c), good cause exists for the Department to grant this Motion and accept this Opposition since it addresses new and material information regarding a substantial change in the operations of Via according to an August 3, 2021 press release issued by Aleutian Airlines disclosing its plans to market Via’s flights with Saab 2000s and Corvus believes this information needs to be considered by the Department in the determination of the continuing fitness of Via. In support of this Motion and Opposition, Corvus states as follows: 1 I. THE OPPOSITION HAS MERIT AND IS TIMELY. The Opposition was filed within seven (7) days of Via’s Application and is timely. This Opposition is brought pursuant to 14 CFR §204.6 to provide DOT with additional information about a proposed substantial change in the operations of Via that requires additional disclosures from Via to determine its continuing fitness to operate. In Docket No. 2020-0196, Corvus brought to the attention of DOT the plans of Via to operate Saab 2000 aircraft based upon the public announcements in publications and social media since at least July 28, 2020 through February 2021. According to Via’s Response to Unauthorized Opposition of Corvus Airlines, Inc. in Docket No. 2020-0196 filed on February 11, 2021, flying Saab 2000s was an old plan of Via and not the current plan during its fitness review. In fact, Via stated “Corvus’ Opposition concerning Via’s ‘actual Plan for operation’ is false and rests on outdated and inaccurate information.” But, now that Via received DOT approval, the current plan conveniently reverted to be identical to the “outdated” plan. Attached as Exhibit A is an article dated August 3, 2021 and a press release from Aleutian Airways (the joint venture set up by Via and its partners to market Via’s flights) describing Via’s now once again current plan to fly Saab 2000s in exactly the manner stated by its partner Alaska SeaPlanes in the article from July 28, 2020 attached as Exhibit B. In that Response filed on February 11, 2020, Via claimed that it only planned to operate its leased Embraer 145 aircraft in scheduled service and had no other “current” plan to operate any other type of aircraft. As Via stated, “Via’s current operating plan remains… to operate initially one and thereafter two ERJ-145 regional jet aircraft during the first year of operations (not Saab 2000 or other types of regional jets).” Yet, to this day, Via has never operated ERJ aircraft in scheduled service and now proposes that its 2 first scheduled service be with Saab 2000s. Just as Via’s partner, Alaska SeaPlanes, said on social media Via would as recently as three (3) days before Via’s Response filed on February 11, 2021 (see Facebook posts attached as Exhibit C from Jodi Garza, the Chief Administrative Officer of Alaska SeaPlanes). II. VIA’S SUBSTANTIAL CHANGE IN OPERATIONS REQUIRES ADDITIONAL DISCLOSURE AND REVIEW FOR CONTINUING FITNESS Corvus realizes that not all changes made by a carrier are substantial requiring additional information from the carrier or a renewed fitness review by DOT. Corvus also realizes that it is possible that plans of a new airline can change. The problem here is that Via’s plan apparently only changed from operating Saab 2000s to not operating Saab 2000s during the certification process to determine Via’s fitness to operate. In this case, Via, for some reason, has been very adroit and artful in its filings with DOT to deny it had a “current” plan to operate Saab 2000s. Yet this plan has consistently and repeatedly been publicly announced by Via or its partners in publications and social media since at least July 28, 2020 and continuing to this day as shown by the attached press releases, articles and social media posts. In addition, given that the very last flight of a Saab 2000 on the very same route proposed to be flown by Via ended in a fatal accident, the operation of Saab 2000s by Via certainly warrants further disclosure of information by Via and further investigation and consideration, not only for Via’s fitness to operate and the inconsistencies of statements made over time by Via, but also for safety concerns. Corvus provides this information to the attention of DOT pursuant to the last sentence of 14 CFR §204.6, which states “However, if the Department concludes, from its own analysis or based on information submitted by third parties, that such change may bring the carrier’s fitness into question, the Department may require the applicant carrier to file additional information [emphasis added].” 3 This is a substantial change in operations that was known to Via during its certification process and deftly not disclosed. 14 CFR §203(t) required Via to provide a description of the service to be operated if the application is granted and related financial information. It is now clear to all that Via failed to provide the required information for its planned operations. For a substantial change in operations like this, 14 CFR §204.5(a)(2) provides that “(a) A certificated or commuter air carrier proposing a substantial change in operations, ownership or management shall file the data set forth in § 204.3. These data must be submitted in cases where: *** (2) The change substantially alters the factors upon which its latest fitness finding is based, even if no new authority is required.” Instead of playing semantics and word games regarding it plans for operating Saab 2000s, Via needs to comply with its disclosure requirements under 14 CFR §203. Via should be required to submit additional information to determine its continuing fitness to operate under its existing authority in light of the substantial changes in its operations from what was previously disclosed to DOT. WHEREFORE, for the reasons set forth above, Corvus respectfully requests that the Department grant the Motion for Leave to File Otherwise Unauthorized Document and Opposition of Corvus Airlines. Respectfully submitted, Todd A. Dixon William B. Kirshenbaum BARNES & THORNBURG LLP Counsel for Corvus Airlines, Inc. d/b/a/ Ravn Alaska 4 CERTIFICATE OF SERVICE I hereby certify that I have this day served a copy of the foregoing Opposition of Corvus Airlines, Inc. d/b/a Ravn Alaska upon the following persons by electronic mail: [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] William B. Kirshenbaum 5 EXHIBIT A Aleutian Airways to Launch New Nonstop Service Between Anchorage and Unalaska/Dutch Harbor this Fall The new air service, using Saab 2000 aircraft, is a joint venture between long time airline investor Wexford Capital, Juneau-based Alaska Seaplanes, and McKinley Alaska Private Investment, LLC FOR IMMEDIATE RELEASE Contact: Kent Craford, President - Alaska Seaplanes, [email protected] August 3, 2021, JUNEAU—New Nonstop Saab 2000 service returns to Unalaska/Dutch Harbor this fall with the formation of Aleutian Airways, a joint venture between veteran airline investors and operators. “It’s time to bring safe, fast and efficient non-stop Saab 2000 service back to the Aleutians,” said Kent Craford, Co-owner of the Aleutian Airways joint venture. “We have listened closely to input from Unalaska community and business leaders and we’re building Aleutian Airways in response to their needs.” Craford is the co-owner and President of Juneau-based commuter airline Alaska Seaplanes which will be marketing the flights under the Aleutian Airways brand. Sterling Airways, a Part 121 US air carrier and portfolio company of Wexford Capital will operate the flights.