Planet Airways was an airline based in Orlando

Orlando, Florida

Orlando is a city in the central region of the U.S. state of Florida. It is the county seat of Orange County, and the center of the Greater Orlando metropolitan area. According to the 2010 US Census, the city had a population of 238,300, making Orlando the 79th largest city in the United States...

, Florida

Florida

Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...

, USA

United States

The United States of America is a federal constitutional republic comprising fifty states and a federal district...

. It operated charter services within the USA and to the Caribbean

Caribbean

The Caribbean is a crescent-shaped group of islands more than 2,000 miles long separating the Gulf of Mexico and the Caribbean Sea, to the west and south, from the Atlantic Ocean, to the east and north...

.

History

The company was a private venture co-founded by Peter V. Garrambone and Tony DeCamillis, and capital partner Lou Pearlman

Lou Pearlman

Louis Jay "Lou" Pearlman is a former impresario of the successful 1990s boy bands such as The Backstreet Boys, *NSYNC, Take 5, O-Town and US5. In 2006, it was discovered that Pearlman had perpetrated one of the largest and longest-running Ponzi schemes in American history, leaving more than $300...

. Upon Garrambone's resignation Lou Pearlman was the Chairman and Tony DeCamillis was President & CEO. Lou Pearlman was subsequently imprisoned for fraud related to an Employee Investment Savings Account and an aircraft leasing company that did not exist, neither that involved Planet. Press Release FLOFR 2 February 2007 INJUNCTION ISSUED AGAINST LOUIS J. PEARLMAN, TRANS CONTINENTAL AIRLINES, AND OTHERS. JUDGE ALSO APPOINTS RECEIVER OVER THREE COMPANIES

The airline began in 1995 when it incorporated as "Planet Airways, Inc.," a startup airline seeking FAA Part 121 certification. It acquired its first plane in 1998, was granted FAA Part 121 approval to fly charter services and obtained FAA certification in 2000. Customers included the United States Marshall Service, the United States Forest Service, and the United States Department of Defense

United States Department of Defense

The United States Department of Defense is the U.S...

.http://www.hqda.army.mil/ogc/2004contractors_revised.pdfhttp://www.dod.mil/dodgc/defense_ethics/resource_library/FY05_Contractors.pdf In the fiscal year 2004, Planet Airways received nearly 10% of the total revenues awarded by the Department of Defense to all qualified US carriers for domestic charters.

According to information in a news release distributed by Planet Holdings Corp (PHC), Planet Airways had agreed to be acquired by the business development firm. The PHC acquisition was created as an alternative means to provide capital to modernize Planet's aging fleet, beginning with the replacement of two recently retired aircraft. PHC had already completed a funding with Sierra Aircraft Leasing specifically to facilitate the acquisition of Planet's first two Boeing 757 aircraft.

The PHC acquisition of Planet was terminated in January of 2005. Allegedly, Pearlman was overruled by DeCamillis, who had learned that the principal operator of PHC, Kevin James Quinn, had been disbarred as an attorney in California and was also banned by the SEC from participating in public offerings. DeCamillis reported Quinn's violation to the Securities and Exchange Commission's Division of Enforcement and cancelled PHC's planned acquisition of Planet. Pearlman allegedly retaliated and three months later DeCamillis resigned as President and CEO of the airline. Under Pearlman and his new management team the airline ceased flight operations in mid-2005.

Department of Defense Civil Reserve Air Fleet ("CRAF")

Planet Airways was a Department of Defense Civil Reserve Air Fleet (“CRAF”) qualified air carrier until the cessation of operations in 2005. The official website of the U.S. Air Force (http://www.af.mil/information/factsheets/factsheet.asp?id=173) describes the CRAF as non-military air carriers that meet the strict qualifications and requirements to operate on behalf of the DOD in emergencies when the need for airlift exceeds the capability of military aircraft. As a CRAF airline Planet Airways operated domestic flights transporting US military personnel on a regular basis.

Planet Airways prepared for several years to meet Department of Defense standards, which are described on the U.S. Air Force website as follows:

“Safety is the paramount concern, and numerous procedures are in effect to ensure that the air carriers with which AMC contracts afford the highest level of safety to DOD passengers. Prior to receiving a contract, all carriers must demonstrate that they have provided substantially equivalent and comparable commercial service for one year before submitting their offer to fly for the Defense Department. All carriers must be fully certified Federal Aviation Administration carriers and meet the stringent standards of Federal Aviation Regulations pertaining to commercial airlines (Part 121).”

“A DOD survey team, composed of experienced AMC pilots and skilled maintenance personnel, performs an on-site inspection of the carriers. This team conducts a comprehensive inspection that includes carrier's aircraft, training facilities, crew qualifications, maintenance procedures, quality control practices and financial status to maximize the likelihood that the carrier would safely perform for DOD. After passing this survey, the carrier is certified by the Commercial Airlift Review Board as DOD-approved before receiving a contract.”

“AMC analysts then continue to monitor the carrier's safety record, operations and maintenance status, contract performance, financial condition and management initiatives, summarizing significant trends in a comprehensive review every six months. In addition to this in-depth review, there are several other surveillance initiatives. These include safety preflight inspections of commercial aircraft by DOD designated inspectors, periodic cockpit observations on operational flights by highly experienced pilots from AMC's DOD Commercial Airlift Division, and an increase in the frequency of on-site surveys. These initiatives and the surveys are further supplemented by an open flow of information on all contract carriers between AMC and the FAA through established liaison officers.”

In fiscal year 2004 Planet Airways received nearly 10% of the total revenues awarded by the Department of Defense for domestic charter flights transporting U.S. military personnel.

Department of Labor

Planet Airways terminated the Director of Operations (“DO”) for misconduct. The DO filed an OSHA complaint that was ruled in favor of Planet. The DO then filed an appeal that was also ruled in favor of Planet. The DO’s termination with cause was upheld and he was awarded no money at any time.

US DEPARTMENT OF LABOR, ADMINISTRATIVE REVIEW BOARD;
ALJ CASE NO. 02-AIR-19 ARB CASE NO. 04-056 April 28, 2006
FRANK BARBER, Complainant v. PLANET AIRWAYS, INC., Respondent

FINAL ORDER: http://www.scribd.com/doc/1737345/Department-of-Labor-04-056

-“On February 15, 2002, Planet Airway’s fired Barber.”

-“Barber filed a complaint with the Occupational Safety and Health Administration (“OSHA”) on February 22, 2002, alleging that Planet had terminated his employment in retaliation for raising safety concerns. OSHA dismissed the complaint, and Barber requested an administrative hearing, which was held on February 11-14, 2003.”

-“Instead, the ALJ found that Planet fired Barber because he sexually harassed employees, retaliated against other employees for raising safety issues with the FAA, and maintained an inappropriate relationship with Halloran, the FAA inspector. The ALJ concluded that Planet fired Barber for non-discriminatory reasons unrelated to his protected activity, and therefore denied his AIR 21 claim.”

-“Finally… the ALJ found that Barber ‘seemed to be conspiring with [FAA Inspector Diane Halloran] to the detriment of Planet’ –together, they intimidated Planet’s employees and forced Planet’s owners to make personnel decisions that Barber and she wanted. The ALJ correctly found that this ‘inappropriate’ and ‘unusual’ personal relationship between a high-ranking airline official and an FAA inspector charged with regulating that airline contributed to Barber’s firing, not the safety concern [he] reported to Halloran.”

-“CONCLUSION: Substantial evidence in the record as a whole supports the ALJ’s finding that Planet did not fire Barber because of his protected activity... Furthermore, we have considered, but rejected, Barber’s arguments on appeal. Accordingly, we DENY the complaint. SO ORDERED. Wayne C. Beyer, Administrative Appeals Judge; Oliver M. Transue, Administrative Appeals Judge.”

Fleet

Throughout most of the company's history Planet owned and operated a fleet of seven (7) Boeing jet aircraft consisting of six (6) Boeing 727-200's and one (1) Boeing 727-100. As of January, 2005 the Planet Airways fleet included :

• 5 Boeing 727-100/200
  Boeing 727
  The Boeing 727 is a mid-size, narrow-body, three-engine, T-tailed commercial jet airliner, manufactured by Boeing. The Boeing 727 first flew in 1963, and for over a decade more were built per year than any other jet airliner. When production ended in 1984 a total of 1,832 aircraft had been produced...
  
  
• Planet B727-023 N1910
• Planet B727-223/Adv N893AA
• Planet B727-223/Adv N894AA
• Planet B727-224/Adv N69742 (stored @ MCO)
• Planet B727-224/Adv N79745