Point of Law: SkyWest Charter Application Served As Battleground

After years of review and regulatory hurdles, the Transportation Department (DOT) has finally approved SkyWest Charter's (SWC) application to operate scheduled passenger flights as a commuter air carrier. In its final order, issued Aug. 29, 2025, DOT concluded that SWC is fit, willing and able to provide commuter air service. This decision brought to a close contentious proceedings that, at times, functioned as a proxy battleground for broader policy debates within the aviation industry over the use of 14 CFR Parts 135 (commercial non-scheduled flights for hire) and 380 (public charter) instead of Part 121 (airline).

SWC, an affiliate of SkyWest Airlines (SkyWest), is authorized under 14 CFR Part 135 for commuter and on-demand service. Under the existing air taxi rules, however, SWC is limited to providing fewer than five weekly flights on any given route.

To expand its operations, SWC originally applied for commuter air carrier authority under Part 298 (exemptions for air taxi and air charter operations) in July 2022. SWC’s application sought approval to conduct public charter flights as a direct air carrier using 30-seat CRJ-200 aircraft under its existing Part 135 authority, but without the restriction on service frequency. Earlier this year, DOT issued Order 2025-2-10 on Feb. 13, 2025, tentatively finding SWC fit to provide scheduled passenger operations as a commuter air carrier, subject to set conditions.

Over the years, regional airports, rural communities, and members of Congress have strongly supported SWC’s proposal, viewing its expanded operations as essential to preserving regional air service. For example, Senator Steve Daines of Montana submitted multiple letters urging the department to expedite its review of the application. The Regional Airline Association likewise emphasized that SWC’s proposal reflects an established business model already operating in U.S. markets, and therefore argued that DOT must apply its regulations consistently. Nevertheless, the application has also drawn vigorous opposition from labor unions, who argue that SWC’s expansion is a thinly veiled attempt to circumvent more stringent FAA safety measures required under Part 121. The Air Line Pilots Association (ALPA), in particular, described SWC’s business model as “subterfuge to avoid the safety-critical First Officer Qualification (‘FOQ’),” raising concerns over safety and regulatory oversight. Similarly, the Professional Aviation Safety Specialists (PASS) claimed that FAA lacks the staffing capacity to effectively oversee what it deemed a “novel” approach, arguing that FAA guidance for this type of operation has not yet been developed.

DOT’s final order addressed each of these objections. While recognizing the seriousness of the concerns presented, DOT emphasized its statutory mandate: to determine the applicant’s overall fitness, not the soundness of its business model or the competitive implications of its operations. Consistent with established precedent, DOT reaffirmed that its analysis focuses on managerial competency, financial condition, compliance history and citizenship. DOT found that SWC satisfied each requirement by submitting substantial disclosures regarding its financial stability, management and regulatory compliance.

With respect to safety and oversight, DOT highlighted SWC’s voluntary commitments to exceed the minimum safety standards of Part 135. These include staffing flights with two ATP-certified captains, employing active flight dispatching, adhering to FAR 117 crew rest requirements, implementing safety management systems and Advanced Qualification Program training, and limiting its operations to airports with traditional TSA security screening.

To ensure further accountability, DOT will require SWC to submit a progress report in its first year of operations documenting the implementation of these measures. The final order also confirmed that oversight of SWC will be handled by the FAA’s Allegheny Flight Standards District Office through a dedicated Certificate Management Unit with inspectors allocated exclusively to SWC.

Beyond SWC’s voluntary safety measures, DOT observed that no comments opposing the application provided any empirical evidence demonstrating that Part 135 public charter operations using 30 seats or fewer present heightened safety risks.

Ultimately, DOT reaffirmed the statutory standard under 49 U.S.C. § 41738 and Part 298. Commuter air service will be approved if the DOT secretary determines that the applicant is fit, willing and able to perform the service, and that its aircraft, personnel and operations comply with FAA requirements. DOT relies on FAA’s technical expertise to identify whether an air carrier is safe and maintains the appropriate authorities. It stressed SWC holds a Part 135 certificate from the FAA, the FAA framework authorizes these operations under Part 135 and the FAA reported no safety concerns with the SWC’s application.

While DOT cautiously reviewed the record in this proceeding, the final order made clear that DOT will not be pressured into addressing issues that fall outside its regulatory purview, and Part 380 will continue.