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					                                                                                                         Order 2004-11-6
                                                                                                         Served: 11/18/04

                       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.
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                           ATE S OF A



                                                            Issued by the Department of Transportation
                                                               on the 15th day of November, 2004

  Applications of

            MURRAY AIR, INC.                                                                 Dockets OST-03-14320
                                                                                                     OST-03-14321
  for certificates of public convenience and necessity
  under 49 U.S.C. 41102 to engage in interstate and
  foreign charter air transportation of property and
  mail

                                                         ORDER ISSUING EFFECTIVE CERTIFICATES
                                                             AND CONFIRMING ORAL ACTION

Summary

By this order, we (1) confirm our oral action of October 22, 2004, making the interstate and
foreign charter authority issued to Murray Air, Inc. (Murray Air) effective on that date, and (2)
reissue to the carrier its certificates of public convenience and necessity authorizing it to engage
in interstate and foreign charter air transportation of property and mail to reflect its effective
date.

Background

By Order 2003-6-26, served June 24, 2003, the Department found Murray Air fit to engage in
interstate and foreign charter air transportation of property and mail1 and issued the company a
certificate authorizing it to engage in interstate operations. By Order 2003-7-26, we issued a
companion certificate to Murray Air authorizing it to engage in foreign charter air transportation.

The authority granted under these certificates was not to become effective until six (business)
days after the Department had received (1) a copy of Murray Air’s Air Carrier Certificate and
Operations Specifications authorizing such operations from the Federal Aviation Administration,
(2) a certificate of insurance on OST Form 6410 evidencing liability insurance coverage meeting
the requirements of 14 CFR 205.5(b) for all of its aircraft, (3) updated fitness information

1 Murray Air currently provides cargo service under a Part 125 certificate issued by the Federal Aviation
Administration.
                                                  2


describing any changes Murray Air may have undergone subsequent to the issuance of the show-
cause order in this proceeding,2 and (4) evidence that Murray Air continued to have sufficient
funding to meet our financial fitness criteria.

                                       FITNESS UPDATE

On October 20, 2004, Murray Air provided to the Department a copy of its Air Carrier
Certificate and Operations Specifications from the FAA, financial and other updated fitness
information, and a copy of OST Form 6410 evidencing liability insurance meeting the
requirements of 14 CFR 205.5(b).

Murray Air states that there have been two changes in key management personnel since the
issuance of Order 2003-5-36. The previous Director of Operations has been replaced by Tom
Quehl, and the previous Director of Maintenance has been replaced by William Phillips.

Mr. Quehl holds an Associate of Science Degree in Aviation Technology. Mr. Quehl has been
with the company since November 2003 as a DC-8 Captain. He began his aviation career as a
Check Airman in March 1990 with Arrow Air, achieving the position of Captain in March 1995.
He subsequently held the position of Captain with Kitty Hawk International (March 1995-April
1999) and at Arrow Air (April 1999-November 2003). In addition to serving as Captain with
Arrow Air, he also served as its Director of Operations and Director of Safety. During his
employment with Kitty Hawk, he also served as acting Director of Flight Standards. Mr. Quehl
holds an FAA-issued Airline Transport Pilot certificate and has logged over 14,500 flight hours.

Mr. Phillips has over 21 years of aviation experience. He joined Murray Air as a Lead Mechanic
in June 2002 and was promoted to Director of Maintenance in February 2003. He was employed
in maintenance positions with Simmons Airlines (1985-1987) and Reliant Airlines (1987-2002).
He attended Colorado Aero Tech from 1983 to 1985 where he received an FAA-issued Airframe
and Powerplant Mechanic license.

Murray Air’s operating plans remain as described in its application.

Murray Air submitted updated financial information, indicating that the carrier continues to have
access to sufficient funds to meet the Department’s financial fitness test. Murray Air states that
there has been little change in its overall financial posture. Revenue for the first nine months of
2004 was $9.6 million, and net income was $84,000. Murray Air has a current ratio of .95:1
with a small working capital deficit of $160,000 and negative total equity of $156,000. The
carrier indicates that all but $50,000 in pre-operating expenses remain to be paid.3

We have previously determined that in order to meet our financial fitness test, the applicant
would need access to approximately $2.2 million. (Order 2003-5-36 at 4.) Murray Air has
provided information in support of its ability to meet our fitness test. First, the carrier has
provided a statement from Comerica Bank, dated October 20, 2004, indicating the existence of

2 See Order 2003-5-36, served June 4, 2003.
3 According to Murray Air, total pre-operating expenses amounted to $855,000.
                                                    3


an available line-of-credit totaling $1,000,000, of which only $40,000 has been drawn down.
Second, Murray Air’s financial statements reflect that its principal shipper, Daimler Chrysler,
provided the company with $4.7 million in revenues, for the first nine months of 2004, which
averages to approximately $1.6 million for three months of operations. Totaling up these two
funding sources and deducting the $160,000 in negative working capital, Murray Air will have
access to about $2.4 million, a level of funding that satisfies the financial fitness criteria noted
above.4

Based on the above, we determined that Murray Air continued to be fit to provide interstate and
foreign charter air transportation of property and mail. Therefore, on October 22, 2004, we
orally notified Murray Air that we were making its section 41102 interstate and foreign
certificates effective on that date. By this order, we confirm our oral action and reissue the
carrier’s certificates effective October 22, 2004.

ACCORDINGLY, Acting under authority assigned by the Department in its Regulations, 14
CFR 385.12:

1. We confirm our oral action of October 22, 2004, making the section 41102 certificate
authority issued to Murray Air, Inc., to engage in interstate and foreign charter air transportation
of property and mail, effective on that same date.

2. We reissue to Murray Air, Inc., the section 41102 interstate and foreign certificates issued to
it by Orders 2003-6-26 and 2003-7-26 in the attached form to reflect their effective date.

3. Should Murray Air, Inc., propose to operate more than two aircraft we direct it to notify the
Department in writing at least 45 days prior to the proposed operation and demonstrate its fitness
to conduct such operations before their commencement.

4. We direct Murray Air, Inc., to submit to the Air Carrier Fitness Division a first year progress
report within 45 days following the end of its first year of certificated operations.5

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

4 Although the Department normally does not consider projected revenues in meeting our financial
fitness requirements, as we noted in Order 2003-5-36, we have allowed Murray Air to do so in this
instance because it is an existing aircraft operator with a successful performance record. Daimler
Chrysler is a long-time customer of Murray Air and has indicated its intention to continue to use the
company’s services. Because of the successful business relationship the applicant has enjoyed with this
customer over the years, we conclude that there is more-than-reasonable probability that Murray Air will
receive the level of revenues from Daimler Chrysler that it has projected.
5 The report should include a description of the 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, 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, and a listing of current
senior management and key technical personnel. The carrier should also be prepared to meet with staff
members of the Fitness Division to discuss its current and future operations.
                                              4



Persons entitled to petition the Department for review of this order under the Department’s
Regulations, 14 CFR 385.30, may file their petitions within 10 days of the service date of this
order.

The action confirmed in this order was effective when taken and the filing of a petition for
review shall not alter its effectiveness.

By:




                                RANDALL D. BENNETT
                                          Director
                                Office of Aviation Analysis


         An electronic version of this document is available on the World Wide Web at
                                        http://dms.dot.gov
               Certificate of Public Convenience and Necessity
                                      for
                    Interstate Charter Air Transportation
                                        (as reissued)


                                      This Certifies That

                              MURRAY 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 charter air transportation of property, and mail.

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


                                                        By Direction of the Secretary


Issued by Order 2004-11-6                               Randall D. Bennett
On                                                      Director
Effective on October 22, 2004                           Office of Aviation Analysis
                                                                                                      Attachment
                                                                                  *As reissued by Order 2004-11-6

                                             Terms, Conditions, and Limitations

                                                       MURRAY AIR, INC.


is authorized to engage in interstate charter air transportation of 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 is not authorized to carry passengers (other than cargo attendants accompanying freight
shipments).

(3)     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.

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

(5)     The holder shall maintain in effect liability insurance coverage as required under 14 CFR Part 205.
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.

(6)     The holder is not authorized to engage in air transportation operations between points within the
State of Alaska.

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

_________________
 This certificate is being reissued to reflect its effective date.
                                                     2

(8)      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.
               Certificate of Public Convenience and Necessity
                                      for
                     Foreign Charter Air Transportation
                                       (as reissued)

                                      This Certifies That

                             MURRAY AIR, INC.

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

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


                                                       By Direction of the Secretary


Issued by Order 2004-11-6                              Randall D. Bennett
On                                                     Director
Effective on October 22, 2004                          Office of Aviation Analysis
                                                                                                                 Attachment

                                                                                          As reissued by Order 2004-11--6


                                             Terms, Conditions, and Limitations

                                                       MURRAY AIR, INC.


is authorized to engage in foreign charter air transportation of property, and mail:

          Between any place in the United States and any place outside thereof.

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 is not authorized to carry passengers (other than cargo attendants accompanying freight
shipments).

(3)     The holder shall at all times conduct its operations in accordance with all treaties and agreements
between the United States and other countries, and the exercise of the privileges granted by this certificate is
subject to compliance with such treaties and agreements and with any orders of the Department of
Transportation issued under them or for the purpose of requiring compliance with them.

(4)    The exercise of the authority granted here is subject to the holder's first obtaining from the
appropriate foreign governments such operating rights as may be necessary.

(5)     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. 

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




 This certificate is being reissued to reflect its effective date.
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

(7)     The holder shall maintain in effect liability insurance coverage as required under 14 CFR Part 205.
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.

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

(9)      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.
                                       3


                                                          Attachment A

                          SERVICE LIST FOR MURRAY AIR, INC.


MR PRESTON G MURRAY         SUE WOLSKO                   MR ALLEN MUTEN
PRESIDENT & CEO             PRODUCT MANAGER              ASSISTANT TREASURER
MURRAY AIR INC              OFFICIAL AIRLINE GUIDE       AIRLINES REPORTING CORP
4728 SELKIRK CT             3025 HIGHLAND PARKWAY        1530 WILSON BLVD STE 800
ANN ARBOR MI 48103          SUITE 200                    ARLINGTON VA 22209-2448
                            DOWNERS GROVE IL 60515


                            REGIONAL COUNSEL             MR DON BRIGHT K-25
MR MARK ATWOOD
                            FAA AGL-7                    OFFICE OF AIRLINE INFO
COUNSEL FOR MURRAY AIR
                            GREAT LAKES REGION HDQ       DEPT OF TRANSPORTATION
SHER & BLACKWELL LLP                                     400 7TH STREET SW
1850 M ST NW                OHARE LAKE OFFICE CENTER
                            2300 E DEVON AVENUE          WASHINGTON DC 20590
WASHINGTON DC 20036
                            DES PLAINES IL 60018

MR MILES BILLMAIER          MGR FLIGHT STANDARDS DIV     MR J D MEALOR
POI FOR MURRAY AIR INC      FAA AGL-200                  AIRLINE DATA COORDINATOR
FEDERAL AVIATION ADMIN      GREAT LAKES REGION HDQ       INNOVATA LLC
8800 BECK RD                OHARE LAKE OFFICE CENTER     3915 OLD MUNDY MILL RD
WILLOW RUN AIRPORT          2300 E DEVON AVENUE          OAKWOOD GA 30566-3410
BELLEVILLE MI 48111         DES PLAINES IL 60018


MR PETER LYNCH AGC-300      MR JAMES ZAMMAR              MR RICHARD DUTTON AFS-900
ASST CHIEF COUNSEL FOR      DIR OF REVENUE ACCOUNTING    ASST MANAGER CSET
 ENFORCEMENT                ATA SUITE 1100               FAA SUITE 203B
FEDERAL AVIATION ADMIN      1301 PENNSYLVANIA AVE NW     45005 AVIATION DRIVE
800 INDEPENDENCE AVE SW     WASHINGTON DC 20004          DULLES VA 20166-7537
WASHINGTON DC 20591



                            AM ASSOC OF AIRPORT EXEC
                            601 MADISON ST SUITE 400
                            ALEXANDRIA VA 22314-1756

				
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