BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Application of ELITE AIRWAYS for a certificate of public convenience and necessity under 49 U.S.C. 41102 to engage in interstate scheduled and charter air transportation APPLICATION OF ELITE AIRWAYS FOR CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY Communications with respect to this document should be sent to: GREGORY S. WALDEN AKIN GUMP STRAUSS HAUER & FELD 1333 New Hampshire Avenue NW Washington, D.C. 20036 202-887-4213 [email protected] April 29, 2015 Notice: Any person who wishes to support or oppose this application must file an answer by May 15, 2015 and serve that answer on the above-signed counsel on all persons served with this application. BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Application of ELITE AIRWAYS for a certificate of public convenience and necessity under 49 U.S.C. 41102 to engage in interstate scheduled and charter air transportation APPLICATION OF ELITE AIRWAYS FOR CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY Elite Airways submits this application for a certificate of public convenience and necessity authorizing interstate scheduled and charter air transportation pursuant to section 41102 of Title 49 of the United States Code (the "Statute"). In support of its application, Elite states the following: 1. Elite is a limited liability company formed in 2006 under the laws of the State of Nevada. The business was started to serve the on-demand market with one Bombardier CRJ-200 (CL-600-2B19) aircraft. Elite's primary focus is on NCAA sports charter business and has grown that business over the past three years to comprise a fleet of five CRJ-200 aircraft, four of which are owned. 2. Elite's address, telephone and fax numbers are: 208 Fore Street, Portland, Maine 04101 (207-842-6400), where Elite's corporate, dispatch, maintenance control, and administrative offices are located, and 1135 West Nasa Blvd., Melbourne, Florida 32901 {321-265-5101), where Elite's main maintenance base is located; fax number is 207-221- 1578. A certificate of good standing from the Secretary of State of the State of Nevada is attached at Exhibit 1. 3. Applicant is a citizen of the United States as defined in section 40102{a)(15) of the Statute. Elite is owned by (1) JWP Group LLC, a single-member LLC 100% owned by John Pearsall, who is a U.S. citizen; (2) the Lyle Family Trust, a trust managed by Robert V. Lyle and Susan Lyle and whose members are the Lyles' two children, all of whom are U.S. citizens, and (3) the Don Hankey Trust, whose trustor is Don Hankey, who is a U.S. Elite Airways Application for Certificate of Public Convenience and Necessity April 29, 2015 Page 2 of 5 citizen. This trust is managed for the benefit of Mr. Hankey's children, each of whom is a U.S. citizen. All officers and directors of Elite are citizens of the United States. Sworn affidavits stating that Applicant and each of its owners and officers is a citizen of the United States are attached at Exhibit 2. 4. Applicant currently holds an Air Carrier Operating Permit #19EA891L under Part 119 of the Federal Aviation Regulations ("FARs") authorizing it to conduct charter operations as a supplemental carrier under Part 121 of the FARs. Applicant also has registered as an air taxi with the Department under Part 298 to operate aircraft designed for no more than 60 seats. Elite currently owns and operates four CRJ-200 aircraft with designed seating capacity of 50 seats {N91EA, SN 7705; N92EA, SN 7732, N93EA, SN 7563, N96EA, SN 7700) and leases one 50-seat CRJ-100 aircraft from AVMAX Group {Wells Fargo Bank, is owner-trustee)(N97EA, SN 7027). 5. Applicant conducts scheduled charter services between Branson Airport and Houston Hobby and also between Branson Airport and Denver International Airport on behalf of Branson Air Express. Applicant also conducts charter services for the National Collegiate Athletic Association, flying sports teams of NCAA colleges and universities teams to and from road games, throughout the continental United States. 6. Elite utilizes an in-house FAA-approved training program for pilots, flight attendants, and maintenance personnel. Elite primarily contracts with Pan Am in Minneapolis, Minnesota for simulator time on the CRJ with CAE as a back-up provider. Elite accomplishes a large percentage of maintenance in-house. Heavy maintenance is contracted out to C&L Aerospace in Bangor, Maine and manufacturer-owned West Virginia Air Center. 7. Attached at Exhibit 3 is a sworn affidavit stating that each of these aircraft has been certificated by the FAA as airworthy and complies with all applicable FAA safety standards. 8. Applicant requests authority to engage in (1) charter air transportation of persons, property, and mail, using CRJ-700 aircraft, with a designed seating capacity of 70 seats, in the same manner as Elite's current operations of the CRJ-200 aircraft; and (2) scheduled air transportation of persons, property, and mail using CRJ-200 and -700 aircraft. Elite initially intends to inaugurate scheduled service between Branson MO, (BBG) and Houston TX, (HOU) five times per week. 9. Applicant has leased from Regional One four CRJ-700 aircraft to add to its Operations Specifications ("Op Specs") and to operate these aircraft in both charter and scheduled operations. The addition of these aircraft will not change or add to Elite's management Elite Airways Application for Certificate of Public Convenience and Necessity April 29, 2015 Page 3 of 5 team. Incremental additions will be made in flight crew, flight control, and maintenance areas, mainly due to these aircraft having a common type certificate. 10. Applicant will request an amendment of its Op Specs to add the CRJ-700 aircraft to its certificate as they are conformed to Part 121 specifications. No other new or additional authority from the FAA is required for the CRJ-700 aircraft. The Portland, Maine Flight Standards District Office has oversight jurisdiction for Elite's Part 121 certificate. Contact information: Douglas Bordeaux, Principal Operations Inspector, 207-780-3263 X141. 11. A list of the owners of the Applicant, the number and percentage of total number of voting shares held by each owner, and the citizenship of each owner, is attached at Exhibit 4. 12. Applicant does not have any operating division or subsidiary. Neither the applicant nor any officer of Applicant nor any substantial owner has a financial interest in any other air carrier, common carrier, or person substantially engaged in the business of aeronautics. 13. An organization chart of Applicant showing the position held by key personnel of the applicant is attached at Exhibit 5. The resumes and questionnaires for key personnel are attached at Exhibit 6. 14. A statement that Elite's key technical personnel each meets the qualifications for their respective positions as set forth in 14 C.F.R. 119.65 and 119.67 is attached as Exhibit 7. 15. Information about Applicant's financial position and operating plan is attached as follows: Exhibit 8 contains the balance sheet and income statements of the applicant for the most recent three calendar Years 2012, 2013, 2014, and 2015 through the first two months. Statements of liens, commitments, transactions, liabilities, judgments, and significant financial events since the preparation of the most recent financial statement are attached at Exhibit 9. Applicant's forecast balance sheet and profit and loss statement, and statements regarding capital needed to support applicant's operations are attached at Exhibit 10. 16. Information about the compliance history of key personnel is included in the questionnaires attached at Exhibit 6. With respect to Elite, there is no current pending enforcement action or formal complaint involving the Statute, or rules or regulations of the Department, including the FAA, which involves the applicant. No criminal or civil charges alleging fraud, felony, or antitrust violations, or unfair, anticompetitive or deceptive business practices have ever been filed against Elite. Elite has never been involved in an accident or incident as those terms are defined by the National Elite Airways Application for Certificate of Public Convenience and Necessity April 29, 2015 Page 4 of 5 Transportation Safety Board ("NTSB"). See the answers to these and related questions in Exhibit 9. 17. Elite's Family Assistance Plan required by Section 41113 of the Statute has been filed separately in Docket DOT-OST-96-1960 and a copy has been provided to the NTSB Office of Public Affairs. 18. Applicant's current Certificate of Insurance, OST Form 6410, has been provided to the FAA (AFS-260) and is attached at Exhibit 11. A revised OST Form 6410 to reflect the higher insurance coverage required for scheduled operations will be filed when the applicant is ready to begin scheduled operations. 19. The signed counterpart to the Montreal Agreement 18900 dated May 13, 1966, OST Form 4523, has been filed with Docket DOT-OST-1995-236, and a copy of which is attached at Exhibit 12. 20. Applicant's Contingency Plan for Lengthy Tarmac Delays required by Part 259 has been approved by the Department and is contained on applicant's website. trauss Hauer & Feld lite Airways Exhibits Elite Airways Application for Certificate of Public Convenience and Necessity April 29, 2015 Page 5 of 5 CERTIFICATION The contents of this application and the attached Exhibits are true and correct to the best of my knowledge and belief. Pursuant to Title 18 United States Code Section 1001, I, John Pearsall, in my individual capacity and as the authorized representative of the applicant, have not in any manner knowingly and willfully falsified, concealed or failed to disclose any material fact or made any false, fictitious, or fraudulent statement or knowingly used any documents which contain such statements in connection with the preparation, filing or prosecution of the application.