San Mateo County has lodged an objection against the application by Encompass Aviation (Hawthorne) for a commuter air carrier authorisation, saying that it is a device for virtual carrier Surf Air (URF, Santa Monica) to operate without the proper authorisations.

Surf Air is a California-based subscription operator which until recently operated under its own Part 135 certificate. However, San Mateo claims that as a result of switching to interstate operations, Surf Air has changed its business model. In order to avoid Department of Transportation (DOT) authorisation, it surrendered its Part 135 certification and has leased its aircraft to Encompass, which is now operating flights on its behalf.

"Thus, Surf Air's entire legal structure seems designed to circumvent direct regulation by DOT, and Encompass is seeking economic authority from DOT only to facilitate Surf Air's plan," San Mateo's objection states.

San Mateo - which is the owner and operator of San Carlos,US airport - says that by providing air services as an 'indirect air carrier', Surf Air requires either a certificate or exemption from the DOT. It claims that Surf Air has obfuscated its role by representing itself as an agent, but this is not reflected in reality. "Closer scrutiny of Surf Air's operation in light of DOT enforcement decisions establishes that Surf Air is not acting in its purported agency role."

Encompass's application asks that it be granted authority to engage in interstate air transportation – which flights it will undertake on behalf of Surf Air – as it is currently only authorised for intrastate operations within California. It further asks for authority to operate scheduled air transportation, initially between Hawthorne and Las Vegas Harry Reid and later between Hawthorne and Scottsdale.

In addition to providing services to Surf Air, Encompass intends to seek out other charter opportunities through its ROAM brand, as well as apply for Essential Air Service (EAS) routes.

San Mateo asks that Encompass's application be rejected, as it "seeks to facilitate Surf Air's unauthorized operations".

"No matter how Surf Air may try to obscure what is going on, Encompass flies Surf Air customers on Surf Air-owned and liveried aircraft according to a schedule set by Surf Air," the objection concludes. "For all intents and purposes, Surf Air operates and controls the operation even though it lacks any economic authority to provide flight air transportation, directly or indirectly."

Neither Surf Air nor Encompass Aviation responded to a request for comment.