The US Department of Transportation (DOT) has revoked Transair Hawaii's certificate of public convenience and necessity as the carrier has been dormant since it ceased operations on July 16, 2021, following the crash of its B737-200C.

The regulator also denied the carrier's June 14, 2022, request for a waiver from regulatory dormancy provisions, but said the company is free to re-apply for certificate authority when it is ready to recommence operations. Section 204.7 of DOT regulations requires an airline to resume operations within one year of cessation, but it may not resume services nor advertise until its fitness has been re-determined by the department.

The DOT decision comes after the Federal Aviation Administration (FAA) issued an order of revocation to Transair Hawaii (legal name Rhoades Aviation, Inc.) effective January 30, 2023, determining that the company lacks the qualifications to hold an air carrier certificate and that revocation is required for reasons of safety and public interest.

On August 15, 2022, Transair Hawaii requested another waiver and extension until March 15, 2023, from the dormancy provisions of Section 204.7 of the regulations. At the time, it said it expected to finalise revisions and updates of its manuals and programmes shortly and had hired a consultancy to assist with its efforts.

As reported, on June 30, 2022, the DOT had granted the carrier a brief waiver and extension from the dormancy provisions until August 15, 2022, to allow it to discuss its plans with the FAA. The carrier had asked for a waiver and six-month extension until January 16, 2023. However, on May 11, 2022, the FAA proposed withdrawing its air operator's certificate (AOC) for various safety violations.

According to the DOT, Transair Hawaii was initially certified on September 12, 2013, for interstate and foreign charter cargo operations. It used to operate one B737-200(C) and one B737-400, the ch-aviation fleets module shows. Subsidiary Transair Express (R9, Honolulu) operates one B737-200, two B737-200(C)s, and two B737-200(F)s, according to ch-aviation data.