94-8624. Application of ATX, Inc. for Authority to Operate as an Airline

[Federal Register Volume 59, Number 70 (Tuesday, April 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8624]


[[Page Unknown]]

[Federal Register: April 12, 1994]


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DEPARTMENT OF TRANSPORTATION
 

Application of ATX, Inc. for Authority to Operate as an Airline

AGENCY: Department of Transportation.

ACTION: Notice of opinion and final order.

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SUMMARY: The Department of Transportation, by Order 94-4-8 in Docket 
48780, has rejected the application of ATX, Inc. to operate as an air 
carrier, citing the strong influence that Frank Lorenzo, the former 
chairman of the Texas Air Corp., would have on the company. In the 
final decision, the Department found that the record fails to 
demonstrate that Lorenzo has a sufficient commitment to safety or to 
comply with legal requirements. Both Eastern Air Lines and Continental 
Airlines, while they were owned by Texas Air Corp. and controlled by 
Lorenzo, experienced operational, maintenance, and labor-related 
problems that were among the most serious in the history of U.S. 
aviation. These problems threatened safety to the point that the 
Federal government had to intervene to ensure the public's protection. 
While ATX has adequate financing and meets the citizenship 
requirements, managerial competence and compliance disposition are 
lacking and thus ATX fails to meet the department's airline fitness 
standards.

FOR FURTHER INFORMATION CONTACT:
John V. Coleman, Director, Office of Aviation Analysis, Department of 
Transportation, 400 Seventh Street, SW., Washington, DC 20590, (202) 
366-1030.

    Dated: April 5, 1994.
Patrick V. Murphy,
Acting Assistant Secretary for Aviation and International Affairs.
[FR Doc. 94-8624 Filed 4-11-94; 8:45 am]
BILLING CODE 4910-62-M