The US Department of Transportation (DOT) has revoked the certification of Waltzing Matilda Aviation (WZM, Bedford, MA) (WMA) to operate scheduled passenger flights, saying, among other things, that the carrier had failed to start flights within 12 months of the certification's issuance and default dormancy provisions applied.

WMA is a Federal Aviation Administration (FAA) licensed Part 135 private jet operator but also wants to start a regional Part 121 carrier called Connect Airlines, which would connect Canada's Toronto Billy Bishop City Centre with airports in the US's northeast. The DOT issued WMA with the certification to do so in July 2022. WMA CEO John Thomas said the revocation came without warning, adding that this does not prevent the company from reapplying.

"Connect’s focus has been on securing FAA Certification, and we have fully demonstrated the ability to safely operate an airline while providing additional third-party validation to support our ongoing application," he said via a statement supplied to ch-aviation. "Connect Airlines remains able and committed to fulfilling all requirements with US regulators to become a new regional transborder carrier and be the first North American airline to fly zero-emission aircraft.”

The DOT says it received a request for a dormancy provisions waiver from WMA in June 2023, seeking an extension until October 5. The DOT met WMA halfway, giving it until August 4 to start flying. The FAA also asked for further information from the airline to demonstrate that it was progressing towards starting scheduled flights.

According to the DOT, WMA responded on the same day, providing some of the requested information and also asking for the waiver to run until December 31, but "WMA did not provide the required financial information necessary to support a positive financial fitness finding or to show good cause for a waiver from dormancy," DOT's November 16 decision reads. "Among other things, WMA did not provide an updated first-year operating expense forecast, a list of total pre-operating expenses incurred to date, or independent verification of its funding, including verification that it has completed its Series B funding or otherwise obtained comparable U.S. citizen capital contributions."

The DOT also notes that the FAA had terminated WMA's certification activities effective September 11, 2023. "Under the circumstances, and in accordance with s.204.7 of the Department's economic regulations, the Department has decided to deny the application for a waiver and extension filed by WMA and revoke WMA's certificate authority for reason of dormancy," the decision reasons. "The Department cannot allow applications to remain pending indefinitely, particularly where applicants are non-responsive to our requests for information and otherwise have not demonstrated that an approval of the waiver would allow an imminent start of operations."

The DOT said it made its decision without prejudice. While WMA can refile an application for certification, given WMA's "history in this case," the Department will require third-party verification of the capital needed, including proof of financial fitness and citizenship.