Sat, Apr 09, 2011
Appellate Court Rules Agency Was "Arbitrary And
Capricious"
CSI Aviation Services, Inc. won a significant victory against
the U.S. DOT last week when the United States Court of Appeals
ruled in favor of the air charter company to continue providing
— and without exemption — air transportation services
to the federal government under its GSA Schedule.
“This is a great accomplishment for CSI and the air
charter industry,” said Deborah W. Maestas, Executive Vice
President and Chief Operating Officer at CSI. “The
DOT’s failed interpretation of aviation law has been a burden
on our company for far too long. The Court’s decision
protects the air charter industry and allows CSI to continue
meeting the pressing needs of the U.S. Government.”
In October 2009, the DOT sent a letter to CSI claiming that it
had “been acting as an unauthorized indirect air
carrier” and was asked to refrain from contracts under its
GSA Schedule. Six other companies received similar letters and they
immediately ended all GSA operations. CSI refused to acquiesce and
challenged the agency’s orders. CSI then filed its case in
federal court in December 2009.
“CSI alone chose to challenge DOT’s determination,
asking the agency to withdraw … on the grounds that the Act
requires a certificate of authority only for companies that operate
‘as a common carrier,’” the Court’s opinion
stated. The Court found that it is “impossible to conclude
that the agency’s … order was anything other than
arbitrary and capricious, and hence unlawful.”
Since 1983, CSI has been serving the federal government with air
transportation services and has held a U.S. General Services
Administration Schedule since 2003.
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