SkyWest through its new SkyWest Charter, LLC division filed with the U.S. Department of Transport (DOT) for authority to operate 30-seat CRJ200s to smaller, underserved cities.
Here is the application:
APPLICATION OF SKYWEST CHARTER, LLC FOR A COMMUTER AIR CARRIER AUTHORIZATION
SkyWest Charter, LLC (“SWC” or the “Company”) hereby applies for authority to conduct scheduled passenger operations as a commuter air carrier pursuant to 49 U.S.C. § 41738, Parts 201 and 204, and § 298.50 of the Department’s Economic Regulations (14 C.F.R. pt. 298) and the applicable Procedural Regulations of the U.S. Department of Transportation (the “Department”). The proposed operations will provide underserved communities and markets with frequent jet service and ready access to the national transportation system. As explained in more detail below, the Company requests that this Application be processed on an expedited basis.
In support of this Application, SkyWest Charter, LLC states as follows:
1. The Company was originally organized under the laws of the State of New Jersey in the name USAC 691 Airways LLC. On June 14, 2022, the Company was purchased by SW Charter Holdings, Inc. A good standing certificate from the State of New Jersey is attached hereto as Exhibit SWC-100. The Company is in the process of being re-domesticated in Utah.1 The Company’s headquarters is located at 444 South River Road, St. George, Utah 84790 and its telephone number is 435-634-3500. SWC has no subsidiaries nor does it hold any stock in, or control of, any air carrier, foreign air carrier, common carrier or person substantially engaged in the business of aeronautics.
2. SWC is a citizen of the United States as defined in 49 U.S.C. § 40102(a)(15). An affidavit of citizenship is attached as Exhibit SWC-200.
3. SWC holds FAA Air Carrier Certificate J6BA933L together with operations specifications for on-demand operations under Part 135 of the Federal Aviation Regulations (“FARs”). The certificate was recently transferred from the Allentown Flight Standards Office (“FSDO”) to the Allegheny FSDO. The Manager of the Allegheny FSDO is Wendy Grimm. The assignment of the FAA principal operations and maintenance inspectors to the Company is pending.
1 The Company has filed the paperwork to change its name under state law from USAC Airways 691, LLC to SkyWest Charter, LLC and will provide such confirming documentation upon receipt from the Secretary of State’s office upon receipt along with a good standing certificate from the State of Utah. The Company will be changing the name on the Air Carrier Certificate and op specs as well and will notify the Department upon completion of that process. With the exception of the questionnaires completed by key personnel that reference “USAC Airways 691, LLC,” the name SkyWest Charter, LLC or SWC is used in this Application for ease of reference since that will be the name under which service is provided.
individuals currently occupying the FAA-required positions worked for the Company under its previous ownership. SWC will be working with the FSDO to integrate into SWC other FAR Part 119-required personnel who are currently working for or recently retired from SkyWest Airlines, Inc. (“SkyWest Airlines”).
4. A list of the Company’s key personnel and their positions is attached as Exhibit SWC-300. All of the key personnel are citizens of the United States. An organizational chart reflecting the Company’s management structure is set forth in Exhibit SWC-301. SWC is wholly owned by SW Charter Holdings, Inc., which in turn is a wholly owned subsidiary of SkyWest, Inc. as reflected in the chart attached as Exhibit SWC-302. Information regarding other aviation positions and ownership interests of the key personnel of the Company and relevant corporations are set forth in Exhibit SWC-303.
5. SWC’s management team and key personnel have extensive business and aviation expertise and are well-qualified to conduct the operations proposed herein as reflected in their resumes and background information contained in Exhibit SWC-304. In fact, most of the key personnel have hands-on experience providing service in these markets with the same aircraft type that will be used by SWC making SWC particularly well suited to provide the scheduled commuter air transportation services for which authority is being requested.
6. SWC requests authority to engage in scheduled passenger operations as a commuter air carrier under the public charter rules of Part 380 of the Department’s Regulations. SWC will operate the proposed service with 30-seat Bombardier Inc. CL-600-2B19 (CRJ-200) that it will lease from its affiliate, SkyWest Leasing, Inc. These aircraft are ideally suited for the markets to be served by SWC and, in fact, have operated in the same and similar markets for many years by its affiliate, SkyWest Airlines.2 Additional information regarding the aircraft fleet and the Affidavit of Safety Compliance are attached hereto as Exhibits SWC-400 and SWC-401. SWC is working with the Allegheny FSDO to add the CRJs to its op specs.
7. The proposed flights will enable many underserved cities to have a frequency of service that provides them with a meaningful connection to the national transportation system. SWC also plans to have working arrangements with major airlines for the ease of the traveling public. A more detailed description of the service is contained in Exhibit SWC-500. The financial statements and traffic forecasts for the first normalized year are contained in Exhibits SWC 501-503.
8. Except as set forth in Exhibit SWC-600:
(a) there are no actions, judgments, investigations or other matters involving SWC, its relevant corporations, their key personnel or persons with a substantial interest
2 SkyWest Airlines has been operating as an air carrier since 1972 and its fitness has been reviewed and confirmed by the Department throughout the years of its operation. See, e.g., Orders 2011-12-11. SWC requests that the Department take official notice of SkyWest Airlines’ fitness.
(b) there are no pending court actions or outstanding judgments (whether or not in excess of $5,000) against the Company, relevant corporations of SWC, or any key personnel of, or person holding a substantial interest in, any relevant corporation
(c) there are no pending DOT or FAA investigations, enforcement actions or formal complaints regarding compliance with Title 49, Subtitle VII of the U.S. Code or orders, rule, regulations or requirements issued pursuant thereto against the Company or any relevant corporation, or key personnel of, or person holding a substantial interest in, the Company.
(d) there have been no charges of unfair or deception or anticompetitive business practice, or of fraud, felony or antitrust violations brought in the last 10 years against the Company or any relevant corporation, or key personnel of, or person holding a substantial interest in, any relevant corporation.
(e) there have been no aircraft accidents, as defined in 49 C.F.R. § 830.2, or incidents for which notification to the National Transportation Safety Board (“NTSB”) is required under 49 C.F.R. § 830.5, experienced by the Company, its key personnel or any relevant corporations, either (i) during the year immediately preceding this Application and Notice or (ii) that remain under investigation by the NTSB, FAA or the Company.
9. A description of the Company’s operating history and its current financial information is attached as Exhibit SWC-700. The consolidated financial statements for SkyWest, Inc. and its related companies are contained in the Form 10-K reports filed by SkyWest, Inc. with the SEC for the years ending December 31, 2019, 2020 and 2021, and the Form 10-Q for the first quarter of 2022 attached as Exhibits SWC-702-705.
10. Grant of the requested authority will not cause a near term net change in aircraft fuel consumption of 10 million gallons or more. Accordingly, no potential major regulatory action is involved, nor is an energy statement required under Part 313 of the Department’s Regulations.
11. An executed counterpart of Agreement 18900 (OST Form 4523) will be provided in a supplementary filing and filed with the Department’s Docket Operations Office (DOT-OST-1995-236).
12. A Certificate of Insurance (OST Form 6410) evidencing the minimum insurance coverage levels required under Part 205 of the Department’s Regulations will be provided in a supplementary filing.
13. The required certification, signed by the Company’s Chief Operating Officer is attached as Exhibit SWC-800.
14. SWC respectfully requests that this Application be processed pursuant to the expedited non-hearing procedures under Subpart B of the Department’s Rules of Practice. The requested authority is critical to maintaining service in the underserved markets identified herein. The evidence contained in this Application and the exhibits attached hereto clearly establishes that SWC is fit, willing and able to operate as a commuter air carrier providing scheduled passenger air transportation. This Application presents no issues of material fact, or other complex issues of law or policy. Expedited treatment of this Application will directly service the public interest by providing continuity of service to underserved markets and will make efficient use of the Department’s staff and resources. To help facilitate that objective, SWC requests that the order to show cause specify an answer period no longer than five business days.