[Code of Federal Regulations]

[Title 14, Volume 4]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 14CFR204.3]



[Page 12-15]

 

                     TITLE 14--AERONAUTICS AND SPACE

 

   CHAPTER II--OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION 

                         (AVIATION PROCEEDINGS)

 

PART 204_DATA TO SUPPORT FITNESS DETERMINATIONS--Table of Contents

 

                      Subpart B_Filing Requirements

 

Sec. 204.3  Applicants for new certificate or commuter air carrier 

authority.





    An applicant for a type of certificate authority it does not 

currently hold or for commuter air carrier authority shall file the data 

set forth in paragraphs (a) through (v) of this section. In addition, 

the Department may require an applicant to provide additional data if 

necessary to reach an informed judgment about its fitness. If the 

applicant has previously formally filed any of the required data with 

the Department or with another Federal agency and they are available to 

the Department, and those data continue to reflect the current state of 

the carrier's fitness, the applicant may instead identify the data and 

provide a citation for the date(s) and place(s) of filing. Prior to 

filing any data, the applicant may contact the Air Carrier Fitness 

Division to ascertain what data required by this section are already



[[Page 13]]



available to the Department and need not be included in the filing.

    Note: If the applicant intends to use as evidence data it has 

previously filed pursuant to part 241 reporting requirements and those 

data contain errors, the applicant must first file corrected reports in 

accordance with Sec. 241.22(g).

    (a) The name, address, and telephone number of the applicant.

    (b) The form of the applicant's organization.

    (c) The State law(s) under which the applicant is organized.

    (d) If the applicant is a corporation, a statement provided by the 

Office of the Secretary of State, or other agent of the State in which 

the applicant is incorporated, certifying that the applicant corporation 

is in good standing.

    (e) A sworn affidavit stating that the applicant is a citizen of the 

United States.

    (f) The identity of the key personnel who would be employed by the 

applicant, including:

    (1) Their names and addresses;

    (2) The experience, expertise, and responsibilities of each;

    (3) The number of shares of the applicant's voting stock held by 

each and the percentage of the total number of such shares issued and 

outstanding, and the citizenship and principal business of any person 

for whose account, if other than the holder, such interest is held;

    (4) The citizenship of each; and

    (5) A description of the officerships, directorships, shares of 

stock (if 10 percent or more of total voting stock outstanding), and 

other interests each holds or has held in any air carrier, foreign air 

carrier, common carrier, person substantially engaged in the business of 

aeronautics or persons whose principal business (in purpose or fact) is 

the holding of stock in or control of any air carrier, common carrier or 

person substantially engaged in the business of aeronautics.

    (g) A list of all persons having a substantial interest in the 

applicant. Such list shall include:

    (1) Each person's name, address and citizenship;

    (2) The number of shares of the applicant's voting stock held by 

each such person and the corresponding percentage of the total number of 

such shares issued and outstanding, and the citizenship and principal 

business of any person for whose account, if other than the holder, such 

interest is held;

    (3) If any two or more persons holding a substantial interest in the 

applicant are related by blood or marriage, such relationship(s) shall 

be included in the list; and

    (4) If any person or subsidiary of a person having a substantial 

interest in the applicant is or has ever been

    (i) An air carrier, a foreign air carrier, a common carrier, or

    (ii) Substantially engaged in the business of aeronautics, or

    (iii) An officer or director of any such entity, or

    (iv) A holder of 10 percent or more of total outstanding voting 

stock of any such entity, the list shall describe such relationship(s).

    (h) A list of the applicant's subsidiaries, if any, including a 

description of each subsidiary's principal business and relationship to 

the applicant.

    (i) A list of the applicant's shares of stock in, or control of, any 

air carrier, foreign air carrier, common carrier, or person 

substantially engaged in the business of aeronautics.

    (j) To the extent any relevant corporation has been engaged in any 

business prior to the filing of the application, each applicant shall 

provide:

    (1) Copies of the 10K Annual Reports filed in the past 3 years by 

any relevant corporation required to file such reports with the 

Securities and Exchange Commission, and

    (2) Copies of recently filed 10Q Quarterly Reports, as necessary, in 

order to show the financial condition and results of operations of the 

enterprise current to within 3 months of the date of the filing of the 

application.

    (k) If 10K Reports are not filed with the Securities and Exchange 

Commission, the following, for the 3 most recent calendar or fiscal 

years, reflecting the financial condition and results of operations of 

the enterprise current to within 3 months of the date of the filing of 

the application:

    (1) The Balance Sheet of each relevant corporation;

    (2) The Income Statement of each relevant corporation;



[[Page 14]]



    (3) All footnotes applicable to the financial statements, including:

    (i) A statement as to whether the documents were prepared in 

accordance with Generally Accepted Accounting Principles, and

    (ii) A description of the significant accounting policies of each 

relevant corporation, such as for depreciation, amortization of 

intangibles, overhauls, unearned revenues, and cost capitalization;

    (4) A statement of significant events occurring subsequent to the 

most recent Balance Sheet date for each relevant corporation; and

    (5) A statement identifying the person who has prepared the 

financial statements, his or her accounting qualifications, and any 

affiliation he or she has with the applicant.

    (l) A list of all actions and outstanding judgments for more than 

$5,000 against any relevant corporation, key personnel employed (or to 

be employed) by any relevant corporation, or person having a substantial 

interest in any relevant corporation, including the amount of each 

judgment, the party to whom it is payable, and how long it has been 

outstanding.

    (m) The number of actions and outstanding judgments of less than 

$5,000 against each relevant corporation, key personnel employed (or to 

be employed) by any relevant corporation, or person having a substantial 

interest in any relevant corporation, and the total amount owed by each 

on such judgments.

    (n) A description of the applicant's fleet of aircraft, including:

    (1) The number of each type of aircraft owned, leased and to be 

purchased or leased;

    (2) Applicant's plans, including financing plans, for the purchase 

or lease of additional aircraft; and

    (3) A sworn affidavit stating that each aircraft owned or leased has 

been certified by the FAA and currently complies with all FAA safety 

standards.

    (o) A description of the current status of all pending 

investigations, enforcement actions, and formal complaints filed by the 

Department, including the FAA, involving the applicant or any relevant 

corporation, any personnel employed (or to be employed) by any relevant 

corporation or person having a substantial interest in any relevant 

corporation, regarding compliance with the Statute or orders, rules, 

regulations, or requirements issued pursuant to the Statute, and any 

corrective actions taken. (If an applicant has a compliance history that 

warrants it, additional information may be required.)

    (p) A description of all charges of unfair or deceptive or 

anticompetitive business practices, or of fraud, felony or antitrust 

violation, brought against any relevant corporation or person having a 

substantial interest in any relevant corporation, or member of the key 

personnel employed (or to be employed) by any relevant corporation in 

the past 10 years. Such descriptions shall include the disposition or 

current status of each such proceeding.

    (q) A description of any aircraft accidents or incidents (as defined 

in the National Transportation Safety Board Regulations, 49 CFR 830.2) 

experienced by the applicant, its personnel, or any relevant 

corporation, which occurred either during the year preceding the date of 

application or at any time in the past and which remain under 

investigation by the FAA, the NTSB, or by the company itself, including:

    (1) The date of the occurrence;

    (2) The type of flight;

    (3) The number of passengers and crew on board and an enumeration of 

any injuries or fatalities;

    (4) A description of any damage to the aircraft;

    (5) The FAA and NTSB file numbers and the status of the 

investigations, including any enforcement actions initiated against the 

carrier or any of its personnel; and

    (6) Positive actions taken to prevent recurrence. (If an applicant's 

history of accidents or incidents warrants it, additional information 

may be required.)

    (r) A brief narrative history of the applicant.

    (s) A description of all Federal, State and foreign authority under 

which the applicant has conducted or is conducting transportation 

operations, and the identify of the local FAA office and personnel 

responsible for processing an



[[Page 15]]



application for any additional FAA authority needed to conduct the 

proposed operations.

    (t) A description of the service to be operated if the application 

is granted, including:

    (1) A forecast Balance Sheet for the first normal year ending after 

the initially proposed operations have been incorporated, along with the 

assumptions underlying the accounts and amounts shown; and

    (2) A forecast Income Statement, broken down by quarters, for the 

first year ending after the initially proposed operations are 

normalized, and an itemization of all pre-operating and start-up costs 

associated with the initiation of the proposed service. Such Income 

Statement shall include estimated revenue block hours (or airborne 

hours, for charter operators) and revenue miles by type of aircraft, 

number of passengers and number of tons of mail and cargo to be carried, 

transport revenues and an estimate of the traffic which would be 

generated in each market receiving the proposed service. Such statements 

shall also include a statement as to whether the statements were 

prepared on the accrual or cash basis, an explanation of how the 

estimated costs and revenues were developed, a description of the manner 

in which costs and revenues are allocated, how the underlying traffic 

forecasts were made, and what load factor has been assumed for the 

average and peak month. Pre-operating and start-up costs should include, 

but are not limited to, the following: Obtaining necessary government 

approval; establishing stations; introductory advertising; aircraft, 

equipment and space facility deposits and rent; training; and salaries 

earned prior to start-up.

    (u) A signed counterpart of Agreement 18900 (OST Form 4523) as 

required by part 203 of this chapter.

    (v) The following certification, which shall accompany the 

application and all subsequent written submissions filed by the 

applicant in connection with its application:

    Pursuant to title 18 United States Code section 1001, I [the 

individual signing the application, who shall be a principal owner, 

senior officer, or internal counsel of the applicant], in my individual 

capacity and as the authorized representative of the applicant, have not 

in any manner knowingly and willfully falsified, concealed or covered up 

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. I understand that an individual who is found to have 

violated the provisions of 18 U.S.C. section 1001 shall be fined nor 

more than $10,000 or imprisoned not more than five years, or both.



(The reporting requirements contained in this section were approved by 

the Office of Management and Budget under control number 2106-0023)



[Docket No. 47582, 57 FR 38766, Aug. 27, 1992, as amended at 60 FR 

43524, Aug. 22, 1995]