American West Jets (Las Vegas Harry Reid) and its launch plans have been dealt a set back after the US Department of Transportation (DoT) upheld a previous decision to revoke Ryan International Airlines's interstate certificate authority. American West had planned to use Ryan International's certification as a springboard towards launching its own flights having been awarded ownership of the defunct carrier in a Nevada bankruptcy hearing in February this year.
However, after the DoT revoked Ryan International's interstate certificate authority for reason of dormancy, American West Jets (AWJ) lodged an appeal to have the decision reviewed.
In the first instance, AWJ argued that the DoT's decision was based on "erroneous" material facts which did not take into consideration the pending sale of Ryan International to a viable buyer at the time. In the second instance, it claimed it had been prejudiced by the DoT itself when the Department indicated on January 15, 2014, that the DoT was waiting for a bidder to be nominated by the Bankruptcy Court before making a decision on whether to proceed with the revocation of Ryan International's flight worthiness. Lastly, in the third instance, it objected to the decision on the grounds that as Ryan had been subject to bankruptcy protection twice before, so the enforcement of dormancy requirements should have been tolled.
The DoT, in its response, reiterated its original findings which ruled that Ryan International's failure to furnish the DoT with information about its operations, ownership, or management, showed that it was no longer fit to operate as a US certified air carrier.
The DoT said it was "administratively impractical" for it to conduct fitness reviews of every potential buyer from among a group of competing potential bidders. In addition, it claimed AWJ had failed to adequately demonstrate Ryan International’s fitness to resume operations under its ownership by, among other things, failing to provide an adequate first-year operating forecast.
Likewise, the DoT also found no merit in AWJ’s claim regarding the Bankruptcy Code’s automatic stay to be without merit.
"Contrary to AWJ’s contention, Ryan Air’s bankruptcies do not toll the Department’s one-year dormancy provision. The Department’s revocation action falls squarely within the automatic stay’s police and regulatory power exception. Under these circumstances, we find no reason to overturn the staff action revoking Ryan Air’s certificates, denying its request for a waiver from dormancy, and denying the air carrier’s notice to resume operations," it said.
Overall, the DoT said AWJ's application is now moot given that the US Federal Aviation Administration revoked Ryan International's Air Operator's Certificate in May.
"Therefore, it appears that AWJ’s application is now moot considering that the Department’s approval of any application to resume operations is predicated on the air carrier applicant having the necessary FAA issued safety authority to permit the immediate resumption of operations."
AWJ had planned to commence operations in May this year using an MD-83. Though it would have focussed on domestic operations initially, it also planned to offer flights between the south-western US and Central America market out of its Las Vegas Harry Reid hub before launching flights to West and Central Africa from Orlando Sanford. Operations-wise, the carrier had also planned to add several L-1011-500s and B747-400s to its fleet for longhaul flights.
