title-14-part-119-sec119-36

Federal Aviation Administration, DOT

§ 119.36

Subpart C—Certification, Oper-

ations Specifications, and
Certain Other Requirements
for Operations Conducted
Under Part 121 or Part 135 of
This Chapter

§ 119.31 Applicability.

This subpart sets out certification re-

quirements and prescribes the content
of operations specifications and certain
other requirements for operations con-
ducted under part 121 or part 135 of this
chapter.

§ 119.33 General requirements.

(a) A person may not operate as a di-

rect air carrier unless that person—

(1) Is a citizen of the United States;
(2) Obtains an Air Carrier Certificate;

and

(3) Obtains operations specifications

that prescribe the authorizations, limi-
tations, and procedures under which
each kind of operation must be con-
ducted.

(b) A person other than a direct air

carrier may not conduct any commer-
cial passenger or cargo aircraft oper-
ation for compensation or hire under
part 121 or part 135 of this chapter un-
less that person—

(1) Is a citizen of the United States;
(2) Obtains an Operating Certificate;

and

(3) Obtains operations specifications

that prescribe the authorizations, limi-
tations, and procedures under which
each kind of operation must be con-
ducted.

under this part and each applicant for
operations specifications authorizing a
new kind of operation that is subject to
§ 121.163 or § 135.145 of this chapter shall
conduct proving tests as authorized by
the Administrator during the applica-
tion process for authority to conduct
operations under part 121 or part 135 of
this chapter. All proving tests must be
conducted in a manner acceptable to
the Administrator. All proving tests
must be conducted under the appro-
priate operating and maintenance re-
quirements of part 121 or 135 of this
chapter that would apply if the appli-
cant were fully certificated. The Ad-
ministrator will issue a letter of au-

thorization to each person stating the
various authorities under which the
proving tests shall be conducted.

[Doc. No. 28154, 60 FR 65913, Dec. 20, 1995, as
amended by Amdt. 119–2, 61 FR 30434, June
14, 1996]

§ 119.35 Certificate application re-

quirements for all operators.

(a) A person applying to the Adminis-

trator for an Air Carrier Certificate or
Operating Certificate under this part
(applicant) must submit an applica-
tion—

(1) In a form and manner prescribed

by the Administrator; and

(2) Containing any information the

Administrator requires the applicant
to submit.

(b) Each applicant must submit the

application to the Administrator at
least 90 days before the date of in-
tended operation.

[Doc. No. 28154, 62 FR 13254, Mar. 19, 1997; 62
FR 15570, Apr. 1, 1997]

§ 119.36 Additional certificate applica-

tion requirements for commercial

operators.

(a) Each applicant for the original

issue of an operating certificate for the
purpose of conducting intrastate com-
mon carriage operations under part 121
or part 135 of this chapter must submit
an application in a form and manner
prescribed by the Administrator to the
responsible Flight Standards office.

(b) Each application submitted under

paragraph (a) of this section must con-
tain a signed statement showing the
following:

(1) For corporate applicants:
(i) The name and address of each

stockholder who owns 5 percent or
more of the total voting stock of the
corporation, and if that stockholder is
not the sole beneficial owner of the
stock, the name and address of each
beneficial owner. An individual is con-
sidered to own the stock owned, di-
rectly or indirectly, by or for his or her
spouse, children, grandchildren, or par-
ents.

(ii) The name and address of each di-

rector and each officer and each person
employed or who will be employed in a
management position described in
§§ 119.65 and 119.69, as applicable.

14 CFR Ch. I (1–1–24 Edition)

§ 119.36

(iii) The name and address of each

person directly or indirectly control-
ling or controlled by the applicant and
each person under direct or indirect
control with the applicant.

(2) For non-corporate applicants:
(i) The name and address of each per-

son having a financial interest therein
and the nature and extent of that in-
terest.

(ii) The name and address of each

person employed or who will be em-
ployed in a management position de-
scribed in §§ 119.65 and 119.69, as appli-
cable.

original issue of an operating certifi-
cate under paragraph (a) of this section
must submit with the application a
signed statement showing—

(1) The nature and scope of its in-

tended operation, including the name
and address of each person, if any, with
whom the applicant has a contract to
provide services as a commercial oper-
ator and the scope, nature, date, and
duration of each of those contracts;
and

(2) For applicants intending to con-

duct operations under part 121 of this
chapter, the financial information list-
ed in paragraph (e) of this section.

(d) Each applicant for, or holder of, a

certificate issued under paragraph (a)
of this section, shall notify the Admin-
istrator within 10 days after—

(1) A change in any of the persons, or

the names and addresses of any of the
persons, submitted to the Adminis-
trator under paragraph (b)(1) or (b)(2)
of this section; or

(2) For applicants intending to con-

duct operations under part 121 of this
chapter, a change in the financial in-
formation submitted to the Adminis-
trator under paragraph (e) of this sec-
tion that occurs while the application
for the issue is pending before the FAA
and that would make the applicant’s fi-
nancial situation substantially less fa-
vorable than originally reported.

(e) Each applicant for the original

issue of an operating certificate under
paragraph (a) of this section who in-
tends to conduct operations under part
121 of this chapter must submit the fol-
lowing financial information:

(1) A balance sheet that shows assets,

liabilities, and net worth, as of a date

not more than 60 days before the date
of application.

(2) An itemization of liabilities more

than 60 days past due on the balance
sheet date, if any, showing each credi-
tor’s name and address, a description of
the liability, and the amount and due
date of the liability.

(3) An itemization of claims in litiga-

tion, if any, against the applicant as of
the date of application showing each
claimant’s name and address and a de-
scription and the amount of the claim.

(4) A detailed projection of the pro-

posed operation covering 6 complete
months after the month in which the
certificate is expected to be issued in-
cluding—

(i) Estimated amount and source of

both operating and nonoperating rev-
enue, including identification of its ex-
isting and anticipated income pro-
ducing contracts and estimated rev-
enue per mile or hour of operation by
aircraft type;

(ii) Estimated amount of operating

and nonoperating expenses by expense
objective classification; and

(iii) Estimated net profit or loss for

the period.

(5) An estimate of the cash that will

be needed for the proposed operations
during the first 6 months after the
month in which the certificate is ex-
pected to be issued, including—

(i) Acquisition of property and equip-

ment (explain);

(ii) Retirement of debt (explain);
(iii) Additional working capital (ex-

plain);

(iv) Operating losses other than de-

preciation and amortization (explain);
and

(v) Other (explain).
(6) An estimate of the cash that will

be available during the first 6 months
after the month in which the certifi-
cate is expected to be issued, from—

(i) Sale of property or flight equip-

ment (explain);

(ii) New debt (explain);
(iii) New equity (explain);
(iv) Working capital reduction (ex-

plain);

(v) Operations (profits) (explain);
(vi) Depreciation and amortization

(explain); and

(vii) Other (explain).

Federal Aviation Administration, DOT

§ 119.41

(7) A schedule of insurance coverage

in effect on the balance sheet date
showing insurance companies; policy
numbers; types, amounts, and period of
coverage; and special conditions, exclu-
sions, and limitations.

(8) Any other financial information

that the Administrator requires to en-
able him or her to determine that the
applicant has sufficient financial re-
sources to conduct his or her oper-
ations with the degree of safety re-
quired in the public interest.

(f) Each financial statement con-

taining financial information required
by paragraph (e) of this section must
be based on accounts prepared and
maintained on an accrual basis in ac-
cordance with generally accepted ac-
counting principles applied on a con-
sistent basis, and must contain the
name and address of the applicant’s
public accounting firm, if any. Infor-
mation submitted must be signed by an
officer, owner, or partner of the appli-
cant or certificate holder.

[Doc. No. 28154, 62 FR 13254, Mar. 19, 1997; 62
FR 15570, Apr. 1, 1997, as amended by Docket
FAA–2018–0119, Amdt. 119–19, 83 FR 9172, Mar.
5, 2018]

§ 119.37 Contents of an Air Carrier

Certificate or Operating Certificate.

The Air Carrier Certificate or Oper-

ating Certificate includes—

(a) The certificate holder’s name;
(b) The location of the certificate

holder’s principal base of operations;

and

(e) The name or the designator of the

responsible Flight Standards office.

[Docket No. 28154, 60 FR 65913, Dec. 20, 1995,
as amended by Docket FAA–2018–0119, Amdt.
119–19, 83 FR 9172, Mar. 5, 2018]

§ 119.39 Issuing or denying a certifi-

cate.

(a) An applicant may be issued an Air

Carrier Certificate or Operating Cer-
tificate if, after investigation, the Ad-
ministrator finds that the applicant—

(1) Meets the applicable requirements

of this part;

(2) Holds the economic authority ap-

plicable to the kinds of operations to
be conducted, issued by the Depart-

ment of Transportation, if required;
and

(3) Is properly and adequately

equipped in accordance with the re-
quirements of this chapter and is able
to conduct a safe operation under ap-
propriate provisions of part 121 or part
135 of this chapter and operations spec-
ifications issued under this part.

(b) An application for a certificate

may be denied if the Administrator
finds that—

(1) The applicant is not properly or

adequately equipped or is not able to
conduct safe operations under this sub-
chapter;

(2) The applicant previously held an

Air Carrier Certificate or Operating
Certificate which was revoked;

(3) The applicant intends to or fills a

key management position listed in
§ 119.65(a) or § 119.69(a), as applicable,
with an individual who exercised con-
trol over or who held the same or a
similar position with a certificate
holder whose certificate was revoked,
or is in the process of being revoked,
and that individual materially contrib-
uted to the circumstances causing rev-
ocation or causing the revocation proc-
ess;

(4) An individual who will have con-

trol over or have a substantial owner-
ship interest in the applicant had the
same or similar control or interest in a
certificate holder whose certificate was
revoked, or is in the process of being
revoked, and that individual materi-
ally contributed to the circumstances
causing revocation or causing the rev-
ocation process; or

(5) In the case of an applicant for an

Operating Certificate for intrastate
common carriage, that for financial
reasons the applicant is not able to
conduct a safe operation.

§ 119.41 Amending a certificate.

(a) The Administrator may amend

any certificate issued under this part
if—

(1) The Administrator determines,

under 49 U.S.C. 44709 and part 13 of this
chapter, that safety in air commerce
and the public interest requires the
amendment; or

(2) The certificate holder applies for

the amendment and the responsible
Flight Standards office determines