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					                                                                                                             Order 2007-11-22
                                                                                                    Served: November 26, 2007

                  TO
                     F TRAN
                            SP
                                                              UNITED STATES OF AMERICA
             EN
                                                           DEPARTMENT OF TRANSPORTATION

                                 O
     TM




                                     RT
 D EP A R




                                         A T I ON
                                                              OFFICE OF THE SECRETARY
 UN




                                         CA
                                                                  WASHINGTON, D.C.
     IT




            ED                   RI  E
                 ST              M
                      ATE S OF A



                                                            Issued by the Department of Transportation
                                                               on the 26th day of November, 2007

Application of

                  COLGAN AIR, INC.                                                     Docket DOT-OST-2007-28807
                                                                                                  and
for certificates of public convenience and                                             Docket DOT-OST-2007-28808
necessity under 49 U.S.C. 41102 to engage in
interstate and foreign scheduled air transportation
of persons, property, and mail

                                                    ORDER ISSUING INTERSTATE CERTIFICATE AUTHORITY

Summary

By this order, we find that Colgan Air, Inc. d/b/a Continental Connection d/b/a US Air Express
d/b/a United Express (“Colgan”) is fit, willing, and able to provide interstate and foreign
scheduled air transportation of persons, property, and mail, and should be issued certificates of
public convenience and necessity authorizing such operations, subject to conditions.

Background

Section 41102 of Title 49 of the United States Transportation Code (the “Statute”) directs us to
determine whether applicants for certificate authority to provide interstate and foreign scheduled
air transportation are “fit, willing, and able” to perform such transportation, and to comply with
the Statute and the regulations of the Department. In making fitness findings, the Department
uses a three-part test that reconciles the Airline Deregulation Act's liberal entry policy with
Congress' concern for operational safety and consumer protection. The three areas of inquiry
that must be addressed in order to determine a company's fitness are whether the applicant (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 Statute and regulations imposed by Federal and State
agencies. We must also find that the applicant is a U.S. citizen.

On July 19, 2007, Colgan filed applications in Docket DOT-OST-2007-28807 and DOT-OST-
2007-28808 requesting certificates to provide interstate and foreign scheduled air transportation
of persons, property, and mail pursuant to § 41102 of the Statute. Colgan accompanied its
                                                          2


application with the information required by section 204.3 of our regulations (14 CFR 204.3) for
an examination of its fitness.1

Colgan, a corporation organized under the laws of the State of Virginia and headquartered in
Manassas, Virginia, has provided scheduled passenger operations as a commuter air carrier under
Part 298 (14 CFR Part 298) of the Department’s regulations for approximately 16 years.2 The
air carrier currently provides service to more than 50 cities in the United States and Canada,
operating its fleet of nine 19-seat Beechcraft 1900D aircraft and forty-two 34-seat Saab 340
aircraft, under the trade names “Continental Connection,” “US Airways Express,” and “United
Express,” pursuant to code-share agreements with Continental Airlines, Inc. (“Continental”), US
Airways, Inc., and United Airlines, Inc., respectively.3

Colgan now seeks certificate authority to perform operations using large aircraft.4 The air carrier
recently agreed to purchase 15 new Bombardier Dash-8 Q400 (“Q400”) aircraft configured for
74 passenger seats, which it intends to phase into its operations between January 2008 and June
2008. The air carrier intends to commence operations using its Q400 aircraft on or around
January 5, 2008. Flights will initiate from Newark’s Liberty International Airport and will be
operated under the trade name “Continental Connection” pursuant to a code-share agreement
with Continental. Ultimately, Colgan will operate 14 operations patterns or “lines” of flying
under the agreement using the Q400 aircraft.

As discussed in this order, we have carefully reviewed the information the applicant provided in
support of its fitness to engage in scheduled certificate operations using large aircraft and
conclude that Colgan is a U.S. citizen and is fit, willing, and able to operate its proposed
interstate and foreign scheduled passenger service. Moreover, we note that Colgan’s commuter
operations, using aircraft with up to 34-seats, have been conducted satisfactorily under its current
ownership and management, and the certificate operations it proposes, using twin engine
turboprop aircraft in regional code-share service, are very similar in scope to its current
operations. Additionally, we note that no answers were filed opposing Colgan’s applications and
no special issues regarding the applicant have come to our attention. Under these circumstances,
we have decided that neither a show cause proceeding nor an oral evidentiary hearing is
necessary for us to make a decision in this case. Therefore, in accordance with section

1 The applicant filed various motions for confidential treatment for certain information. Upon review, the
Department granted Colgan’s requests, in part, and informed the applicant that certain information for which it
requested confidentiality did not warrant such treatment. Therefore, we directed the applicant to file this
information in the public docket, which the applicant did on October 25, 2007. Additional information
supplementing Colgan’s application was filed on August 6, October 5, and November 6, 2007.
2 By Order 91-8-37, issued August 19, 1991, Colgan was found fit to engage in air transportation as a commuter
air carrier.
3 Colgan leases 9 of its Beechcraft 1900D aircraft from Raytheon and 17 of its Saab 340 aircraft from various
parties, including Pinnacle Airlines Corp., AeroCentury, SAAB, Boeing, and CSA Financial.
4 As a Commuter Air Carrier, operating under Part 298 of the Department’s regulations, Colgan is currently
limited to performing its operations using small aircraft. Because Colgan now intends to utilize large aircraft in
some of its operations, it must first obtain the appropriate certificate authority. Section 298.2 of our rules defines
large aircraft as any aircraft originally designed to have a maximum capacity of more than 60 seats or a maximum
payload capacity of more than 18,000 pounds.
                                                     3


302.210(a) of our regulations, we will proceed to final approval of Colgan’s certificate
applications.

Managerial Competence

Colgan’ Board of Directors consists of the following individuals: Messrs. Philip H. Trenary,
Peter Hunt, Douglas W. Shockey, George Casey, and Michael J. Colgan, each of whom is a
citizen of the United States.

The Department reviewed Messrs. Trenary, Hunt, and Shockey’s employment background in
connection with the certification of Pinnacle Airlines, Inc. (“Pinnacle”), a certificated air carrier
commonly owned by Pinnacle Airlines Corp., a publicly traded Delaware corporation.5

Mr. George A. Casey was appointed to his current position as President and General Manager of
Colgan in October 2007. Prior to this, he served as Corporate Liaison with Colgan (July 2007-
October 2007), following the acquisition of the air carrier by Pinnacle Airlines Corp. As
Corporate Liaison he was responsible for overseeing the transformation of Colgan from a family-
owned airline to a public corporation. Prior to joining Colgan, Mr. Casey held a number of
executive and director level positions with various air carriers in his 35-year aviation career,
including Pinnacle, Transmeridian Airlines, Inc., Gulfstream International Airlines, Inc., Express
One Airlines, and Eastern Airlines.

The Department last formally reviewed Mr. Colgan’s employment background in connection
with Colgan’s initial certification in 1990.6 At that time Mr. Colgan served as Executive Vice
President of Colgan. In 1999, he assumed the position of President and Chief Executive Officer
of the air carrier and he held these positions until October 2007.

Colgan’s management and key technical personnel consist of the following individuals:

        George Casey – President and General Manager; Director
        Mary Finnigan – Vice President of Administration
        David R. Vance – Vice President of Safety and Regulatory Compliance
        William G. Dusold – Vice President of Maintenance
        LaDonn J. Nunn – Vice President of Operations; Director of Flight Operations
        James Witkosky – Director of Maintenance
        Gerald H. Shutrump – Director of Quality Control; Manager, Maintenance
        Thomas L. Brink – Chief Pilot
        Deanne Berry – Director of Financial Planning
        Harry A. Mitchel – Dash-8 Q400 Project Manager

Colgan’s Vice President of Administration, Ms. Mary Finnigan, has been employed with Colgan
for approximately 26 years, having began her career with the air carrier in 1974, serving as its
Front Office Clerk in the flight school. Since then she has held several positions with Colgan,

5   See Order 2007-10-27, issued October 24, 2007.
6   See Order 90-2-7, issued February 2, 1990.
                                                4


including Office Manager, In-Flight Manager, and Director of Marketing and Personnel, prior to
resigning in 1987. In 1993, Ms. Finnigan returned to Colgan, serving as the air carrier’s Director
and Vice President of Marketing and Personnel prior to assuming her current position. In
addition to her employment with Colgan, Ms. Finnigan has also been employed by Prince
William County-Greater Manassas Chamber of Commerce as Executive Vice President (1988-
1993) and co-owned and managed Colgan’s VIP Travel (1987-1988), a full service travel
agency. Ms. Finnigan is also an active member of her community, having received several
honors and awards in recognition of her community service and service in executive positions
with BARN, a transitional housing program for homeless women and children, Metro Council
Chambers, Prince William County United Way, and Prince William Greater Manassas Chamber
of Commerce.

Mr. David R. Vance has served as Colgan’s Vice President of Safety and Compliance since
2001. Prior to joining Colgan, he was employed with Midway Airlines Corporation for
approximately 19 years, retiring in 2000 as the air carrier’s Vice President of Operations, and
with Reno Air as a MD-80 Captain and Flight Instructor (1992-1993). In addition to his
commercial aviation experience, Mr. Vance also served in the U.S. Air Force for approximately
24 years, serving in various positions in management of flight operations and related fields
(1955-1979).

The applicant’s Vice President of Maintenance, Mr. William Dusold, joined the air carrier in
November 2005. Prior to joining Colgan, he was employed by Independence Air, Inc., as Senior
Director of Aircraft Maintenance (2002-2005), where he was responsible for the maintenance of
more than 150 aircraft, including large aircraft. Mr. Dusold has also previously been employed
by Chautauqua Airlines, Inc., as Vice President of Maintenance (2000-2002), by Saab Aircraft of
America as Customer Service Director (1998-2000), by Saab Aircraft Leasing as Technical
Director (1996-1998), by Dornier as Service Engineer (1996-1996), by Business Express
Airlines as Director of Maintenance (1992-1996), by Express Airlines I, Inc., as Director of
Maintenance (1991-1992), and by Fairbrook Leasing and CIT Group as Consultant (1991).

Colgan’s Vice President of Operations, Mr. LaDonn James Nunn, an Airline Transport Pilot with
approximately 8,800 flight hours in large turbine aircraft and over 12,000 total flight hours
logged, joined the air carrier in May 1998. Prior to this, he was employed by Citylink Airlines as
Chief Pilot and Director of Training (1996-1998), by Flight Safety International, in various
positions, including Center Manager, Director of Pilot Training, Check Airman, Program
Manager, and Instructor (1992-1996), by Braniff Airlines as Pilot (1988-1992), by Business
Express Airlines, in various positions, including Captain, Check Airman, Training Officer, and
Base Manager (1985-1988), by Chautauqua Airlines, Inc., as Captain and Training Officer
(1983-1985), and by North American Airlines, Air Miami, and Solcum Air as Chief Pilot and
Director of Operations (1980-1983).

Mr. James Witkosky, the applicant’s Director of Maintenance since June 2006, has held an FAA
Mechanic certificate with Airframe and Powerplant ratings for almost 20 years. The Department
                                                         5


previously reviewed his employment background in connection with the initial certification of
Republic Airlines, Inc., a certificated air carrier and operator of large aircraft.7

Mr. Gerald H. Shutrump, an Airframe and Powerplant Mechanic with over 32 years of
experience, joined Colgan in March 2004 as Manager of Aircraft Records, and was promoted to
his current position as Director of Quality Control in June 2006. He has previously served as
Director of Quality Control with regional jet operators Atlantic Coast Airlines, Inc. (2003-2004),
and Atlantic Southeast Airlines, Inc. (1990-2001) and with turboprop operator Eastern Metro
Express (1984-1987). Mr. Shutrump has also been employed by AAR Oklahoma as Project
Manager (1987-1990), held aircraft mechanic positions with Scheduled Skyways (1982-1984)
and Trans Central Airlines (1980-1982), and served in the U.S. Navy for 4 years as an Aviation
Electrician (1975-1979).

Mr. Thomas L. Brink, the applicant’s Chief Pilot since October 2001, is an Airline Transport
Pilot with over 18,000 total flight hours logged. He joined the air carrier in 1992 as a
Beechcraft-1900 Captain and later served as a Saab 340 Captain/Check Airman. Mr. Brink also
served in the U.S. Army for more than 29 years in various aviation related capacities (1963-
1992).

Ms. Deanne Berry, the applicant’s Director of Financial Planning, joined Colgan in February
2006. Before this, she was employed by Independence Air, Inc., holding various positions
during including, Manager of Operations Planning, Senior Analyst, Team Leader, Supervisor,
and Senior Accountant (1995-2006). Ms. Berry was also employed by The GAP, Inc. (1990-
1995) and by Mcardell Landscape, Inc. (1989-1990) as an Accountant.

Mr. Harry A. Mitchel, an Airline Transport Pilot with approximately 6,000 total flight hours
logged, joined Colgan in April 2007 as the air carrier’s Q400 Project Manager. Prior to this, he
was employed by Funair Corporation as General Manager (2006-2007), Vision Air, Inc., as Lead
Pilot (2005-2006), Magic Carpet Aviation as Director of Aviation (1997-2005), Pinnacle
Airlines, Inc., as Director of Corporate Education Center (1994-1997), Aviation Compliance
Services, Inc., as Vice President (1990-1994), Fresh Air, Inc., as F-27 Captain/Check Airman
(1989-1990), San Juan Airlines as Director of Cargo/Director of Training (1988-1989), and
Midnite Express as Chief Pilot/Director of Operations (1986-1988).

In view of the experience and background of the applicant’s key personnel, we conclude that
Colgan’s management team possesses the managerial skills and technical ability to conduct its
proposed service.8




7 See Order 2004-7-26, issued July 26, 2004.
8 Before authorizing an air carrier to conduct air transportation operations, the FAA also evaluates certain of the
applicant’s key personnel with respect to the minimum qualifications for those positions as prescribed in the Federal
Aviation Regulations. The FAA’s evaluation of these key personnel provides an added practical and in-person test
of the skills and technical ability of these individuals.
                                                     6


Operating Proposal and Financial Plan

As mentioned previously, if granted the certificated authority it seeks, Colgan intends to operate
74-seat Q400 aircraft under the “Continental Connection” trade name, pursuant to a Capacity
Purchase Agreement with Continental. The air carrier anticipates commencing operations on or
around January 1, 2008, and is currently seeking amended Operation Specifications from the
Federal Aviation Administration (“FAA”) to incorporate the Q400 aircraft into its fleet.

While the Department generally does not require applicants proposing to conduct operations
under a fee-for-service type agreement to meet the Department’s three-month zero revenue test,
we do require applicants to have a sufficient amount of working capital reserve to cover its
pre-operating expenses.9 In this regard, Colgan states that it expects to incur pre-operating
expenses of approximately $46.9 million. The air carrier also provided that it will fund its pre-
operating expenses using a variety of sources, including internal resources and financing
commitments, of which Pinnacle Airlines Corp., the applicant’s parent company, will provide the
necessary guarantees.10

We have reviewed the pre-operating expense forecast provided by Colgan and find the forecast
to be reasonable. Moreover, we have reviewed the financial statements provided by Colgan and
Pinnacle Airlines Corp., the agreement with Continental, and the financial commitments
available to the applicant, and conclude that Colgan will have sufficient financial resources
available to it to enable it to commence its large aircraft operations without posing an undue risk
to consumers or their funds.

Compliance Disposition

Colgan identified several pending actions against it stemming from the terrorist attacks of
September 11 and identified one unrelated outstanding judgment against it.11 However, the air
carrier notes that defense of these claims was assumed by its insurance company, Global
Aerospace, and believes any liability arising from these claims will fall within its insurance
coverage limits.

Colgan states that, except as noted above, there are no other actions or outstanding judgments
against it, its owners, or its key personnel nor have there been any charges of unfair, deceptive or
anti-competitive business practices, or of fraud, felony or antitrust violations brought against it,
its owners, or its key personnel in the past 10 years. Additionally, the applicant states that there
are no pending investigations, enforcement actions, or formal complaints filed by the Department
against it or any of its key personnel with respect to compliance with the Transportation Code or
the Department’s regulations. Moreover, Colgan notes that it has not experienced any aircraft

9 See, for example, Order 2005-7-14, issued July 15, 2005.
10 Specifically, the air carrier has secured financing commitments from the aircraft manufacturer and Export
Development Canada.
11 The outstanding judgment identified by the applicant was issued by the West Virginia Human Rights
Commission (“WVHRC”) and involved charges of discrimination. However, we note that the findings of the
WVHRC were reversed upon appeal to the West Virginia Supreme Court of Appeals (See Court of Appeals of West
Virginia case No. 33355, Colgan Air, Inc. v. West Virginia Human Rights Commission and Rao Zahid Khan).
                                                 7


accidents or incidents in the year preceding its application, or at any time which remain under
investigation by the FAA, the National Transportation Safety Board, or the company itself.

A review of our records and other information available to us has uncovered no information
which would reflect negatively on the applicant or any of its key personnel. In addition,
according to the FAA, Colgan is making satisfactory progress in working toward obtaining
amended Operation Specifications and the agency knows of no reason why the air carrier should
not be granted the authority it is seeking. Moreover, we note that while Colgan has several
actions pending against it, these actions are being appropriately adjudicated and do not reflect
negatively on the company’s disposition to comply with the law or its diligence in maintaining
safe operations. Further, we would not expect an adverse finding in these proceeding to have a
material adverse effect on Colgan financial position as the applicant notes it is insured against
such claims.

In light of these circumstances, we conclude that Colgan has the proper regard for the laws and
regulations governing its services to ensure that its aircraft and personnel conform to applicable
safety standards and that acceptable consumer relations practices will be followed.

                                          CITIZENSHIP

Section 41102 of the Transportation Code requires that certificates to engage in air transportation
be held only by citizens of the United States as defined in 49 U.S.C. § 40102(a)(15). That
section requires that the president and two-thirds of the Board of Directors and other managing
officers be U.S. citizens and that at least 75 percent of the outstanding voting stock be owned by
U.S. citizens. The air carrier must, as a factual matter, actually be controlled by U.S. citizens.

Colgan is organized as a corporation under the laws of the State of Virginia. Pinnacle Airlines
Corp., a publicly traded Delaware corporation, is the sole shareholder of Colgan’s voting stock.
All of the members of the Board of Directors, officers, and other key personnel of Colgan are
U.S. citizens. Moreover, the applicant has provided an affidavit stating that it is a citizen of the
United States within the meaning of the Transportation Code and that it is actually controlled by
U.S. citizens. Finally, we have found nothing in the record to suggest otherwise.

Based on the record of this case, we conclude that Colgan is owned and controlled by U.S.
citizens, consistent with 49 U.S.C.§ 40102(a)(15) and is fit, willing, and able to provide air
transportation services as a U.S. certificated air carrier.

                        PUBLIC CONVENIENCE AND NECESSITY

No finding of consistency with the public convenience and necessity is required for the award of
authority for interstate scheduled air transportation of persons, property, and mail under section
41102.

The award of authority to engage in foreign air transportation, however, does require a finding
under section 41102 of the Transportation Code that the grant of authority is consistent with the
public convenience and necessity. We find that the foreign scheduled air transportation proposed
                                                            8


by Colgan for service to Canada is consistent with the public convenience and necessity. For
routes on which multiple U.S. air carriers may provide service without restriction on additional
entrants, it is our policy to issue certificates for indefinite duration. In this regard, we find that
the proposed authority to serve Canada is consistent with the aviation agreement governing air
services between the United States and Canada and that this agreement allows service by
multiple U.S. carriers. We, therefore, propose to issue a certificate for service to Canada of
unlimited duration.12

                            CERTIFICATE CONDITIONS & LIMITATIONS

While we are making the certificate authority issued here effectively immediately, Colgan’s
ability to conduct operations with large aircraft under this certificate remains subject to receipt of
the appropriate approvals from the FAA , as well as its obtaining insurance for large aircraft
operations.13

Moreover, we remind Colgan of the requirements of 49 U.S.C. § 41110(e). Specifically, that
section requires that, once an air carrier is found fit initially, it must remain fit in order to hold its
authority. To be assured that certificated air carriers continue to be fit after effective authority
has been issued to them, we require that they supply information describing any subsequent
substantial changes they may undergo in areas affecting fitness. Therefore, should Colgan
subsequently propose substantial changes in its ownership, management, or operations, it must
first comply with the requirements of § 204.5.14 The compliance of the company with this
requirement is essential if we are to carry out our responsibilities under § 41110(e).15

Our finding of fitness for Colgan is based on the operating plans described in its application,
namely the performance of scheduled passenger operations under a code-share agreement with a
major U.S. air carrier using 15 large aircraft in certificated operations. In addition, we find the
support provided by Pinnacle Airlines Corp. plays an important role in regard to the air carrier’s


12 However, we note that, pursuant to 49 U.S.C. § 41307, the issuance of foreign authority to the applicant is
subject to Presidential review.
13 Currently, Colgan maintains insurance at the level set by Part 205 of our rules for commuters and certificated
air carriers operating small aircraft. Therefore, prior to instituting any operations with large aircraft, Colgan must
obtain insurance for such operations. Failure to do so would render Colgan’s certificate authority ineffective for
large aircraft operations.
14 The air carrier may contact our Air Carrier Fitness Division to report proposed substantial changes in its
operations, ownership, or management, and to determine what additional information, if any, will be required under
§ 204.5. In addition, by notice dated July 21, 1998, the Department requested air carriers to provide a 30-day
advance notification of any proposed change in ownership, restructuring, or recapitalization. If the air carrier fails to
file this updated information or if the information fails to demonstrate that the air carrier will continue to be fit upon
implementation of the substantial change, the Department may take such action as is appropriate, including
enforcement action or steps to modify, suspend, or revoke the carrier's certificate authority.
15 We also remind Colgan about the requirements of § 204.7 of our rules. This section provides, among other
things, that (1) the certificate authority granted to a company shall be revoked if the company does not commence
actual flying operations under that authority within one year of the date of the Department's determination of its
fitness; (2) if the company commences operations for which it was found fit and subsequently ceases such
operations, it may not resume certificated operations unless its fitness has been redetermined; and (3) if the company
does not resume operations within one year of its cessation, its authority shall be revoked for dormancy.
                                                         9


acquisition of financing necessary to support its proposed large aircraft operations. Our fitness
determination may no longer apply if the company were to substantially change the scope of its
operations. Therefore, should Colgan propose to conduct any scheduled operations using more
than 15 large aircraft or propose to operate scheduled air transportation independent of its
agreement with Continental or a similar agreement with a major U.S. air carrier, it must notify
the Department in writing at least 45 days in advance and demonstrate its fitness for such
operations prior to implementing such service.16 Further, because the support of Pinnacle
Airlines Corp. is critical to the air carrier’s viability, we are conditioning the effectiveness of the
applicant’s certificate authority on its continued existence as a wholly-owned subsidiary of
Pinnacle Airlines Corp. Should Pinnacle Airlines Corp. propose to sell Colgan, the applicant
must file a request to amend the terms of its certificate.

Finally, to assist the Department in monitoring the fitness of new air carriers, we ask all newly
certificated air carriers to submit a detailed progress report, within 45 days following the end of
the first year of certificated operations, to the Air Carrier Fitness Division. The report should
include a description of the air carrier’s current operations (number and type of aircraft, principal
markets served, total number of full-time and part-time employees); a summary of how these
operations have changed during the year; a discussion of any changes it anticipates from its
current operations during its second year; current financial statements;17 and a listing of current
senior management and key technical personnel. The air carrier should also be prepared to meet
with staff members of the Fitness Division to discuss its current and future operations.

ACCORDINGLY,

1.     We find that Colgan Air, Inc. d/b/a Continental Connection d/b/a US Airways Express
d/b/a United Express is fit, willing, and able to engage in interstate and foreign scheduled air
transportation of persons, property, and mail, subject to conditions.

2. We issue a certificate of public convenience and necessity to Colgan Air, Inc. d/b/a
Continental Connection d/b/a US Airways Express d/b/a United Express to engage in interstate
air transportation in the form and subject to the Terms, Conditions, and Limitations attached.18

3. We cancel the commuter authority issued to Colgan Air, Inc. d/b/a Continental Connection
d/b/a US Airways Express d/b/a United Express by Order 91-8-37.

4. Should Colgan Air, Inc. d/b/a Continental Connection d/b/a US Airways Express d/b/a
United Express propose to operate more than 15 large aircraft or propose to operate scheduled air
transportation independent of its agreement with Continental Airlines, Inc., or similar agreement
with another major U.S. air carrier, we direct it to notify the Department in writing at least 45

16 The Department adopted its policy of imposing fleet restrictions pursuant to the recommendations of the FAA
90-day safety review, issued September 16, 1996, to facilitate appropriate monitoring of individual air carriers’
growth. See, e.g. 98-1-3, 97-10-22, 97-11-34, and 97-12-18.
17 These financial statements should include a balance sheet as of the end of the company’s first full year of actual
flight operations and a twelve-month income statement ending that same date.
18 By this order we issue only the interstate certificate to Colgan. Issuance of a foreign certificate is subject to
Presidential review under 49 U.S.C. 41307 and will be handled in a separate order.
                                                          10


days prior to the proposed operation and demonstrate its fitness to conduct such operations
before their commencement.19

5. We direct Colgan Air, Inc. d/b/a Continental Connection d/b/a US Airways Express d/b/a
United Express to submit to the Air Carrier Fitness Division a first year progress report within 45
days following the end of its first year of actual certificated flight operations.20

6. We will serve a copy of this order on the persons listed in Attachment A.

By:



                                         ANDREW B. STEINBERG
                                              Assistant Secretary
                                     for Aviation and International Affairs

               An electronic version of this document is available on the World Wide Web at:
                                         http://www.regulations.gov




19 This notice should be submitted to the Air Carrier Fitness Division. The air carrier may contact the Air Carrier
Fitness Division prior to submitting its notice to determine what fitness information must be provided. This
limitation does not apply to the air carrier’s small aircraft operations and, as a result, Colgan remains free to conduct
operations with as many small aircraft as it desires.
20 The report should include a description of the air carrier’s current operations (number and type of aircraft,
principal markets served, total number of full-time and part-time employees), a summary of how these operations
have changed during the year, a discussion of any changes it anticipates from its current operations during its second
year, current financial statements, and a listing of current senior management and key technical personnel. The air
carrier should also be prepared to meet with staff members of the Fitness Division to discuss its current and future
operations.
         Certificate of Public Convenience and Necessity
                                 for
                   Interstate Air Transportation


                                 This Certifies That

                           COLGAN AIR, INC.

is authorized, subject to the provisions of Subtitle VII of Title 49 of United States
Code, the orders, rules, and regulations issued thereunder, and the attached
Terms, Conditions, and Limitations, to engage in interstate air transportation of
persons, property, and mail.

This Certificate is not transferable without the approval of the Department of
Transportation.

                                                By Direction of the Secretary



Issued by Order 2007-11-22                      Andrew B. Steinberg
On November 26, 2007                            Assistant Secretary for
Effective on November 26, 2007                   Aviation and International Affairs
                                                                                                              Attachment

                                   Terms, Conditions, and Limitations

                                               COLGAN AIR, INC.


is authorized to engage in interstate air transportation of persons, property, and mail between any point
in any State, territory, or possession of the United States or the District of Columbia, and any other point
in any of those entities.

This authority is subject to the following provisions:

(1)     The holder shall at all times conduct its operations in accordance with the regulations prescribed
by the Department of Transportation for the services authorized by this certificate, and with such other
reasonable terms, conditions, and limitations as the Department of Transportation may prescribe in the
public interest.

(2)    The holder's authority under this certificate is effective only to the extent that such operations are
also authorized by the Federal Aviation Administration (FAA), and comply with all U.S. Government
requirements concerning security, including, but not limited to 49 CFR Part 1544.

(3)   The authority contained in this certificate is effective only so long as the holder remains a wholly
owned subsidiary of Pinnacle Airlines Corp.

(4)     The holder shall maintain in effect liability insurance coverage as required under
14 CFR Part205. Failure to maintain such insurance coverage will render a certificate ineffective, and
this or other failure to comply with the provisions of Subtitle VII of Title 49 of the United States Code or
the Department's regulations shall be sufficient grounds to revoke this certificate.

(5)    The holder is authorized to conduct charter flights in interstate and/or foreign air transportation
in accordance with the provisions of 14 CFR 212.

(6)    The holder may reduce or terminate service at any point or between any two points, subject to
compliance with the provisions of 49 U.S.C. 41734 and all orders and regulations issued by the
Department of Transportation under that section.

(7)     The holder may not provide scheduled passenger air transportation to or from Dallas (Love
Field), Texas, except within the limits set forth in section 29 of the International Air Transportation
Competition Act of 1979, as amended or as modified by any future legislation addressing access
restrictions to or from Love Field.

(8)     Should the holder propose any substantial change in its ownership, management, or operations
(as defined in 14 CFR 204.2(l)), it must first comply with the requirements of 14 CFR 204.5.

    To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before
commencing any new service (including charter flights) to or from a foreign airport, contact its Principal Security Inspector
(PSI) to advise the PSI of its plans and to find out whether the Transportation Security Administration has determined that
security is adequate to allow such airport(s) to be served..
                                                     2

(9)   The holder shall at all times remain a "Citizen of the United States" as required by 49 U.S.C.
40102(a)(15).

(10) In the event that the holder commences but subsequently ceases all operations for which it was
found “fit, willing and able,” its authority under this certificate shall be suspended under the terms of 14
CFR 204.7 and the holder may neither recommence nor advertise such operations unless its fitness to do
so has been redetermined by the Department. Moreover, if the holder does not resume operations within
one year of its cessation, its authority shall be revoked for dormancy.
                                                                                       Attachment A


                                     SERVICE LIST FOR
                                     COLGAN AIR, INC.




MR DOUGLAS LUNDGREN                                            MR GARY B GAROFALO
                               MR PETER LYNCH AGC-300
POI FOR COLGAN AIR INC                                         MR AARON A GOERLICH
                               FAA ASST CHIEF COUNSEL
FAA FSDO                                                       MR JASON E MADDUX
                               FOR ENFORCEMENT
44965 AVIATION DRIVE STE 112                                   COUNSEL FOR COLGAN AIR INC
                               800 INDEPENDENCE AVE SW
DULLES VA 20166-7524                                           GAROFALO GEORLICH HAINBACH PC
                               WASHINGTON DC 20591
                                                               1200 NEW HAMPSHIRE AVE NW
                                                               WASHINGTON DC 20036-6802



MR BERNARD STANKUS, RTS-42     MR CLAY MORITZ, RTS-42          MR WILLIAM J WEBER
OFFICE OF AIRLINE              OFFICE OF AIRLINE INFORMATION   CERTIFICATION SECTION MANAGER
INFORMATION                    DOT/RSPA/BTS E-36               FAA AFS-900
DOT/RSPA/BTS E-36              1200 NEW JERSEY AVE SE          45005 AVIATION DRIVE, SUITE 131
1200 NEW JERSEY AVE SE         WASHINGTON DC 20590             DULLES VA 20166
WASHINGTON DC 20590

				
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