### & U S

. DepartlTMm t o f 120 0 Ne wjerse yAvenue , S E Transportatio n Washington , D C 2059 0 

### Off ic e o f th e Secretar

y o f Transportatio n 

## January 13 , 201 0 Mr
. KennethGardne r Smal l Community Airlines , Inc
. 751 5 Lemmo n Avenu e Dallas , T X 7520 9 Re : Docke t DOT-OST-2005-2182 2 Applicatio n of

Smal l Communit y Airlines , Inc
. for Sectio n 4110 2 Certificat e Authority
. Dear Mr
. Gardner : A s yo u kno w o n Jun e 23 , th e Departmen t requeste dfurther

informatio n fro mSmal l Community Airlines , Inc
. ("SCA") , t o supplemen t it s application
. Th e company' s respons e wa s du e t o th e Departmen t o n Jul y 7 , 2009
. O n Jul y 1 4 an do n Decembe r 18 , w e reminde d SC A that w e ha dyet

t o receiv e th e informatio n w e requeste dan do n Decembe r 31 , 2009 , SC A requeste dan additional extensio n t o provid e th e requeste dfitnes s information
. Pe r you r request , w e hav e decide dt o gran t SC A a nadditional 1 4 day s (i.e
. unti l January 27 , 2010) , t o fil e th e fitnes s informatio n requeste db y ou r Jun e 2 3 letter
. I n addition , becaus e muc ho f

th e evidentiary materia l submitte di n support o f SCA' s fitnes s ha s no w becom e outdated , w e wil l nee dadditional informatio n demonstratin g SCA' s fitnes s before w e ar e abl e t o mak e apositiv e fitnes s findin g i n thi s case . Therefore , i n additio n t o th e fitnes s informatio n requeste di n ou r Jun e 2 3 letter , pleas e provide dth e following
. 1
. A complet e lis t

of th e ke y managemen t

personnel , a s that

termi s define din 1 4 CFR204.2(i ) (cop y enclosed ) togethe r resum e for

an y ne w ke y personne l an dth e complianc e informatio n require db y section s 204. 3 (I) , (m) , (o) , (p) , an d(q ) o f our rules
. Eac hresum e shoul dinclud e th e individual' s full name , citizenship , curren t address , an dtelephon e numbers , togethe r withadetaile dlistin g o f al l previou s employmen t

(bothaviatio n an dnon-aviation ) an deducatio n an dtraining , includin g FA A certification s an dlicens e number s if applicable
. Th e employmen t listin g shoul dinclud e th e nam e o f employer , locatio n (city , state) , typ e o f business , position(s ) held , descriptio n o f responsibilities , an ddate s employed
. Further , i f th e employe r

hel dan y aviatio n authority , th e typ e of authority hel d shoul db e noted
.

## 2
. Pleas e provid e arevise dpre-operatin g expens e forecast
. Thi s forecas t shoul d include , amon g othe r

things , leas e deposit s an drents , legal expenses * statio n expenses , facility deposit s an drents , training , insurance , general , administrative , an demploye e expenses , an dexpense s relate dt o FA A certification
. Additionally , suc hlis t shoul ddistinguis hbetwee n pre-operatin g expense s that hav e bee n paid , an dthos e whic hremai n t o b e paid
. 3
. Pleas e provid e arevise dfirst-year expens e forecast
. Additionally , suc hforecas t shoul dconformt o th e criteri aoutline din 1 4 CF R204.3(t)(2)
. 4
. Pleas e provid e third-part y verificatio n o f al l lines-of-credi t

an dal l cas hdeposit s availabl e t o support

SC A propose doperations
. Thi s verificatio n of lines-of-credi t shoul dinclud e th e tota l line-of-credi t bein g mad e available , th e amoun t suc h credi t lin e ha s bee n draw n dow n t o date , an y condition s that mus t b e me t before fund s wil l b e advanced , th e term s of repayment , an dth e expiratio n date
. Further , i f th e line-of-credi t

i s bein g supplie db y an individua l o r organizatio n (othe r

tha n arecognize dfinancia l institution ) copies o f th e persona l o r

corporat e financial statement s o f

th e individua l o r

organizatio n shoul dals o b e provided
. -T

5
. Pleas e provid e astatemen t fro mth e Offic e o f

th e Secretary o f

State , o r

othe r agen t o f th e Stat e i n whic hth e applican t i s incorporated , certifyin g that th e applican t i s in goo dstanding
. Th e informatio n provide dpursuan t t o thi s Informatio n Reques t shoul db e accompanie db y th e certificatio n require db y sectio n 204.3(v ) I n addition , SC A shoul dprovid e th e Departmen t

withan y additiona l informatio n regardin g change s t o th e fitnes s informatio n it ha s previousl y provided
. Th e origina l plu s 2 copie s of you r respons e an dal l future submission s o f

evidentiary materia l shoul db e maile dto : Docke t Operations , 120 0 Ne w Jerse y Ave
. S.E. , Wes t

Bldg
. Groun dFloor , Rm
. W12-140 , Washington , D.C
. 20590 , o r yo u ma y electronicall y fil e you r dockete dsubmission s a

t www.regulations.gov
. A s i s th e Department' s practice , furthe r processin g o f

SCA' s applicatio n wil l b e deferre d pendin g receip t

of thi s material
. In addition , w e remin dSC A that it i s no t th e Department' s polic y t o kee p incomplet e application s ope n indefinitely
. Accordingly , unles s SC A provide s acomplet e respons e t o ou r Informatio n Request s withi n 1 4 day s o f th e dat e o f

thi s letter , w e inten dt o dismis s it s applicatio n withou t further notice
. Than k yo u for your cooperatio n i n thi s matter
. I f yo u hav e an y question s regardin g thi s lette r o r th e requeste dinformation , pleas e feel fre e t o contac t m e a t (202 ) 366-7785
. Sincerely ,

Damon^fatke r Transportatio n Industry Analys t Ai r Carrie r Fitnes s Division

## Enclosur e

cc : Docke t

DOT-OST-2005-2128 8 Mr
. Willia mH
. Smith FA A DF WFSD O Southwes t

Regio n Centr e Port

Busines s Park 14800-Trinity Blvd. , Suit e 20 0 ForthWorth , T X 7615 5

### Offic e o f th e Secretary , DO T §204. 2 204.5 Certificate dandcommute r ai r carrier s undergoin g or

proposin g t o underg o sub

stantia l chang e I

noperations , ownership , o r management
. 204.6 Certificate dandcommute r ai r carrier s proposin g achang e in operations , ownership , o r managemen t

whichi s not

sub

stantial
. 204. 7 Revocatio nfo

r dormancy
. AUTHORITY : 4

9 U.S.C
. Chapter s 401 , 411 , 417
. SOURCE : Doclce

t No
. 47582 , 5 7 F R38766 , Aug
. 27,1992 , unles s otherwis e noted
. 

### Subpar t A—Genera l Provision s §204. 1 Purpose
. Thi s par t

set s fort hth e fitnes s dat a tha t mus t b e submitte db y applicant s fo r certificat e authority , b y applicant s fo r authorit y t o provid e servic e a s a commute r

ai r carrie r t o a neligibl e place , b y carrier s proposin g t o provid e essentia l ai r

transportation , an db y certificate dai r

carrier s an dcommute r ai r carrier s proposin g asubstantia l chang e i noperations , ownership , o r management
. Thi s par t als o contain s th e procedure s an dfilin g requirement s applicabl e t o carrier s tha t hol ddor

man t authority
. [7 2 F R20036 , Apr
. 23 , 2007

] §204. 2 Definitions
. A s use di n thi s part : (a ) All-carg o ai r

carrie r o r sectio n 4110 3 carrie r mean s a n ai r

carrie r holdin g a n all-carg o ai r

transportatio n certificat e Issue dunde r

sectio n 4110

3 of th e Stat

ut e authorizin g th e transportatio nb y aircraf t i n interstat e ai r

transpor
tatio n o f onl y propert y o r

onl y mall , o r both
. (b ) Certificat e authorit y mean s author

it y t o provid e ai r

transportatio n grant
e db y th e Departmen t o f Transpor

tatio n o r

Civi l Aeronautic s Boar dI n th e for mo f

acertificat e of

publi c con venienc e an dnecessit y unde r sectio n 4110 2 o f th e Statut e o r

a n all-carg o ai r transportatio n certificat e t o perfor m all-carg o ai r

transportatio n unde r sec tio n 41103 of

th e Statute
. Certificate d carrier s ar e thos e tha t hol dcertificat e authority
. (c ) Citize n o f

th e Unite dState s means : (1 ) A n individua l wh o i s acitize n o f th e Unite dStates ; (2 ) A partnershi p eac ho f whos e part
ner s I s a n Individua l wh o I s acitize no f th e Unite dStates ; o r (3 ) A corporatio n o r

associatio n orga nize dunde r

th e law s o f

th e Unite d State s o r

aState , th e Distric t o f Co

lumbia , o r

aterritor y o r

possessio n o f th e Unite dStates , o f

whic hth e presi

den t an da t leas t two-third s o f

th e boar do f director s an dothe r

managin g officer s ar e citizen s o f th e Unite d States , whic hi s unde r th e actua l con tro l o f citizen s o f

th e Unite dStates , an di n whic ha t

leas t 7 5 percen t

of th e votin g interes t

I s owne do r

controlle d b y person s tha t

ar e citizen s o f

th e Unite dStates
. (d ) Commute r

ai r carrie r mean s a n ai r carrie r holdin g o r

seekin g authorit y unde r par t 29 8 of thi s Chapte r

tha t car rie s passenger s o na t leas t fiv e roun d trip s pe r wee k o na t leas t on e rout e be

twee n tw o o r

mor e point s accordin g t o it s publishe dfligh t

schedule s tha t specif y th e times , day s of th e week , an dplace s betwee nwhic hthos e flight s ar e performed
. (e ) Eligibl e plac e mean s aplac e i nth e Unite dState s that — (1 ) Wa s a neligibl e poin t unde r sec tio n41 9 of

th e Federa l Aviatio nAc t o f 195 8 a s i n effec t

befor e Octobe r

1 , 1988 ; (2 ) Receive dschedule dai r transpor
tatio n a t

an y tim e betwee nJanuar y 1 , 1990 , an dNovembe r

4 , 1990 ; an d (3 ) I s no t

liste di n Departmen t o f Transportatio n Order s 89-9-3 7 an d89

- 12-5 2 a s aplac e Ineligibl e fo r com pensatio n unde r

Subchapte r

I I of Chap

te r 41 7 of th e Statute
. (f ) Essentia l ai r

servic e i s tha t

ai r transportatio nwhic hth e Departmen t ha s foun dt o b e essentia l unde r Sub

chapte r I I o f Chapte r

41 7 of th e Stat

ute
. (g ) Fi t mean s fit , willing , an dabl e t o perfor mth e ai r

transportatio n i n ques tio nproperl y an dt o confor mt o th e provision s o f

th e Statut e an dth e rules , regulation s an drequirement s issue d unde r th e Statute
. (h ) Interstat e ai r

transportatio n mean s th e transportatio n of passenger s o r propert y b y aircraf t

a s acommo n car rie r fo r compensation , o r

th e transpor
tatio n o f mai l b y aircraft — (1 ) Betwee naplac e in

— (i ) A State , territory , o r possessio n of th e Unite dState s an daplac e i n th e 

### 1 1

### §204. 3 1 4 CF R Ch

. I I (1-1-0 8 Edition ) Distric t o f Columbi ao r

anothe r State , territory , o r

possessio no f

th e Unite d States ;

- ' (11)'Hawai i an danothe r plac e i nHa

wai i throug hth e airspac e ove r aplac e outsid e Hawaii ; (111 ) Th e Distric t

of Columbi aan dan othe r plac e i n th e Distric t

of Columbia ; o r (iv ) A territor y o r

possessio no f

th e Unite dState s an danothe r plac e i n th e sam e territor y o r

possession ; an d (2 ) Whe n an y par t

o f th e transpor
tatio n i s b y aircraft
. (1 ) Key personne l includ e th e direc

tors , president , chie f

executiv e officer , chie f operatin g officer , al l vic e presi

dents , th e director s o r supervisor s of operations , maintenance , an dfinance , -an dth e chie f

pilo t o f th e applican t

o r ai r carrier , a s wel l a s an y part-tim e o r full-tim e advisor s o r

consultant s t o th e managemen t

of th e applican t

o r ai r carrier
. (j ) Normalize doperation s ar e thos e whic har e relativel y fre e of start-u p cost s an dtemporar y barrier s t o full

scal e operation s pose db y th e carrier' s limite dexperience
. (k ) Relevan t

corporation s ar e th e ap plican t o r ai r carrier , an y subsidiar y thereof , an y predecesso r thereo f (i.e. , an y ai r carrie r i n whic han y directors , principa l officer s o r

person s havin g a substantia l interes t

hav e o r onc e h4, da substantia l interest) , an dan y compan y (includin g asol e proprietorshi p o r partnership ) whic hha s asignifican t fi

nancia l o r

manageria l Influenc e o nth e applican t

o r ai r carrier
. Th e latte r

In

cludes : (1 ) An y compan y (Includin g asol e proprietorshi p o r

partnership ) holdin g mor e tha n50 percen t o f th e out
standin g votin g stoc k o f th e applican t o r ai r carrier ; an d (2 ) An y compan y (includin g asol e proprietorshi p o r

partnership ) holdin g betwee n 2

0 percen t

an d50 percen t

o f th e outstandin g votin g stoc k o f th e ap plican t o r ai r carrie r an dwhic hha s significan t

Influenc e ove r

th e applican t o r ai r carrie r a s indicated , fo r

example , b y 2 5 percen t

representatio n o n th e boar do f directors , participatio n i npol

icy-makin g processes , substantia l inter-compan y transactions , o r mana geria l personne l wit hcommo nrespon sibilitie s i n bot hcompanies
. (1 ) Substantia l chang e i noperations , ownership , o r

managemen t

includes , bu t i s no t limite dto , th e followin g events : (1 ) Change s i noperation s fro mchar

te r t o schedule dservice , carg o t o pas senge r service , short-hau l t o long-hau l service , o r

(fo r acertificate dai r

car rier ) small-aircraf t

t o large-aircraf t

op erations ; (2 ) Th e filin g of

apetitio nfo r

reorga nizatio n o r

apla no f

reorganizatio n unde r Chapte r

1 1 o f th e federa l bank

ruptc y laws ; (3 ) Th e acquisitio n b y ane w share

holde r o r th e accumulatio n b y a nexist

in g shareholde r

of beneficia l contro l o f 1 0 percen t

o r mor e o f

th e outstandin g votin g stoc k

i n th e corporation ; an d (4 ) A chang e i n th e president , chie f executiv e office r

o r chie f operatin g of

ficer , and/o r

achang e i na t

leas t hal f o f th e othe r

ke y personne l withi nan y 12

- mont hperio do r

sinc e It s lates t

fitnes s review , whicheve r

i s th e mor e recen t period
. (m ) Substantia l interes t mean s bene

ficia l contro l of

1 0 percen t

o r mor e o f th e outstandin g votin g stock
. [Docke t No
. 47582 , 5 7 F R38766 , Aug
. 27 , 1992 , a s amende da t

6 0 F R43523 , Aug
. 22 , 1995 ; 6 4 F R12085 , Mar
. 11 , 1999 ; 7 2 F R20036 , Apr
. 23 , 2007 ] 

### Subpar t B—Filin g Requirement s §204. 3 Applicant s fo r ne w certificat e o r commute r

ai r carrie r authority
. A napplican t

fo r atyp e of

certificat e authorit y i t

doe s no t

currentl y hol do r fo r commute r

ai r carrie r authorit y shal l fil e th e dat ase t fort hi n para graph s (a ) throug h(v ) o f thi s section
. I naddition , th e Departmen t ma y re quir e a napplican t

t o provid e addi

tiona l dat ai f

necessar y t o reac ha nin

forme djudgmen t

abou t it s fitness
. I f th e applican t

ha s previousl y formall y file dan y of

th e require ddat awit hth e Departmen t

o r wit hanothe r

Federa l agenc y an dthe y ar e availabl e t o th e Department , an dthos e dat acontinu e t o reflec t

th e curren t

stat e of

th e car rier' s fitness , th e applican t ma y in

stea didentify th e dat aan dprovid e a citatio n fo r

th e date(s ) an dplace(s ) o f filing
. Prio r

t o filin g an y data , th e ap plican t ma y contac t

th e Ai r

Carrie r Fitnes s Divisio n t o ascertai nwha t dat a require db y thi s sectio nar e alread y 

### 1 2

### §204. 3 1 4 CF R Ch

. I I (1-1-0 8 Edition ) Distric t of Columbi ao r

anothe r State , territory , o r

possessio n of

th e Unite d States ; (11 ) Hawai i an danothe r plac e i n Ha

wai i throug hth e airspac e ove r aplac e outsid e Hawaii ; (ill ) Th e Distric t

o f Columbi aan dan othe r plac e i n th e Distric t

of Columbia ; o r (iv ) A territor y o r

possessio no f

th e Unite dState s an danothe r plac e i n th e sam e territor y o r

possession ; an d (2 ) Whe n an y par t

o f th e transpor
tatio ni s b y aircraft
. (i ) Key personne l includ e th e direc

tors , president , chie f

executiv e officer , chie f operatin g officer , al l vic e presi

dents , th e director s o r supervisor s of operations , maintenance , an dfinance , an dth e chie f

pilo t of th e applican t

o r ai r carrier , a s wel l a s an y part-tim e o r full-tim e advisor s o r

consultant s t o th e managemen t

o f th e applican t

o r ai r carrier
. (j ) Normalize doperation s ar e thos e whic har e relativel y fre e of start-u p cost s an dtemporar y barrier s t o full

scal e operation s pose db y th e carrier' s limite dexperience
. (k ) Relevan t

corporation s ar e th e ap plican t o r ai r carrier , an y subsidiar y thereof , an y predecesso r thereo f (i.e. , an y ai r carrie r i n whic han y directors , principa l officer s o r

person s havin g a substantia l interes t

hav e o r onc e ha da substantia l interest) , an dan y compan y (includin g asol e proprietorshi p o r partnership ) whic hha s asignifican t fi

nancia l o r

manageria l Influenc e o n th e applican t

o r ai r carrier
. Th e latte r

in

cludes : (1 ) An y compan y (includin g asol e proprietorshi p o r

partnership ) holdin g mor e tha n 50 percen t of th e out
standin g votin g stoc k

o f th e applican t o r ai r carrier ; an d (2) An y compan y (includin g asol e proprietorshi p o r

partnership ) holdin g betwee n 2

0 percen t

an d50 percen t

of th e outstandin g votin g stoc k of th e ap plican t o r ai r carrie r an dwhic hha s significan t

influenc e ove r

th e applican t o r ai r carrie r a s indicated , fo r

example , b y 2 5 percen t

representatio n o n th e boar dof directors , participatio n i n pol

icy-makin g processes , substantia l inter-compan y transactions , o r mana geria l personne l wit hcommo n respon sibilitie s i n bot hcompanies
. (1 ) Substantia l chang e i noperations , ownership , o r

managemen t

Includes , bu t i s no t limite dto , th e followin g events : (1 ) Change s i n operation s fro mchar

te r t o schedule dservice , carg o t o pas senge r service , short-hau l t o long-hau l service , o r

(fo r acertificate dai r

car rier ) small-aircraf t

t o large-aircraf t

op erations ; (2 ) Th e filin g o f

apetitio nfo r

reorga nizatio n o r

apla nof

reorganizatio n unde r Chapte r

1 1 of th e federa l bank

ruptc y laws ; (3 ) Th e acquisitio nb y ane w share

holde r o r th e accumulatio nb y a n exist

in g shareholde r

o f beneficia l contro l o f 1 0 percen t

o r mor e o f

th e outstandin g votin g stoc k

i n th e corporation ; an d (4 ) A chang e i nth e president , chie f executiv e office r

o r chie f operatin g of

ficer , and/o r

achang e i n a t

leas t hal f o f th e othe r

ke y personne l withi n an y 12

- mont hperio do r

sinc e it s lates t

fitnes s review , whicheve r

i s th e mor e recen t period
. (m ) Substantia l interes t mean s bene

ficia l contro l o f

1 0 percen t

o r mor e o f th e outstandin g votin g stock
. [Docke t No
. 47582 , 5 7 F R38766 , Aug
. 27 , 1992 , a s amende da t

6 0 F R43523 , Aug
. 22 , 1995 ; 6 4 F R12085 , IVIar
. 11 , 1999 ; 7 2 F R20036 , Apr
. 23 , 2007 ] 

### Subpar t El—Filin g Requirement s §204. 3 Applicant s fo r ne w certificat e o r commute r

ai r carrie r authority
. A napplican t

fo r atyp e of

certificat e authorit y i t

doe s no t

currentl y hol do r fo r commute r

ai r carrie r authorit y shal l fil e th e dat ase t fort hi n para graph s (a ) throug h(v ) o f thi s section
. I naddition , th e Departmen t ma y re quir e a napplican t

t o provid e addi

tiona l dat ai f

necessar y t o reac ha n in

forme djudgmen t

abou t it s fitness
. I f th e applican t

ha s previousl y formall y file dan y of

th e require ddat awit hth e Departmen t

o r wit hanothe r

Federa l agenc y an dthe y ar e availabl e t o th e Department , an dthos e dat acontinu e t o reflec t

th e curren t

stat e o f

th e car rier' s fitness , th e applican t ma y in

stea didentify th e dat aan dprovid e a citatio n fo r

th e date(s ) an dplace(s ) o f filing
. Prio r

t o filin g an y data , th e ap plican t ma y contac t

th e Ai r

Carrie r Fitnes s Divisio nt o ascertai n wha t dat a require db y thi s sectio n ar e alread y 

### 1 2Offic e o f tt\ e Secretary , DO T §204. 3 availabl e t o th e Departmen t an dnee d no t b e Include di n th e filing
. NOTE : I f th e applican t

intend s t o us e a s evidenc e dat ai t

ha s previousl y filedpursu an t t o par t 24 1 reportin g requirement s an d thos e dat acontai nerrors , th e applican t mus t firs t fil e correcte dreport s i naccord

anc e with§241.22(g)
. (a ) Th e name , address , an dtelephon e numbe r o f th e applicant
. (b ) Th e for mo f

th e applicant' s orga nization
. (c ) Th e Stat e law(s ) unde r whic hth e applican t

i s organized
. (d ) I f th e applican t

i s acorporation , a statemen t

provide db y th e Offic e o f th e Secretar y o f

State , o r

othe r agen t o f th e Stat e i n whic hth e applican t i s in

corporated , certifyin g tha t th e appli

can t corporatio n i s i ngoo dstanding
. (e ) A swor n affidavi t

statin g tha t

th e applican t

i s acitize n o f

th e Unite d States
. (f ) Th e identit y of

th e ke y personne l wh o woul db e employe db y th e appli

cant , including : (1 ) Thei r name s an daddresses ; (2) Th e experience , expertise , an dre sponsibilitie s of

each ; (3 ) Th e numbe r

of share s o f

th e appli

cant' s votin g stoc k

hel db y eac han d th e percentag e o f

th e tota l numbe r

o f suc hshare s issue dan doutstanding , an dth e citizenshi p an dprincipa l busi

nes s o f an y perso n fo r

whos e account , i f othe r tha n th e holder , suc hinteres t i s held ; (4 ) Th e citizenshi p o f

each ; an d (5 ) A descriptio n o f

th e officerships , directorships , share s o f stoc k (i f 1 0 per cen t o r mor e o f tota l votin g stoc k

out
standing) , an dothe r interest s eac h hold s o r ha s hel di n an y ai r

carrier , for

eig n ai r carrier , commo n carrier , per so n substantiall y engage di n th e busi

nes s of aeronautic s o r

person s whos e principa l busines s (i n purpos e o r fact ) i s th e holdin g o f

stoc k I n o r contro l o f an y ai r carrier , commo n carrie r o r per so n substantiall y engage di nth e busi

nes s of aeronautics
. (g ) A lis t of al l person s havin g asub

stantia l interes t

I n th e applicant
. Suc h lis t shal l include : (1 ) Eac hperson' s name , addres s an d citizenship ; (2) Th e numbe r

of share s o f

th e appli

cant' s votin g stoc k

hel db y eac hsuc h perso n an dth e correspondin g percent
ag e of th e tota l numbe r

of sucl i share s issue dan doutstanding , an dth e citi

zenshi p an dprincipa l busines s o f an y perso nfo r

whos e account , i f

othe r tha n th e holder , suc hInteres t I s held ; (3 ) I f an y tw o o r

mor e person s hold

in g asubstantia l Interes t i n th e appli

can t ar e relate db y bloo do r marriage , suc hrelationship(s ) shal l b e include d i n th e list ; an d (4 ) I f an y perso n o r

subsidiar y o f

a perso n havin g asubstantia l Interes t I n th e applican t

i s o r ha s eve r

bee n (i ) A n ai r

carrier , aforeig n ai r car rier , acommo n carrier , o r (11 ) Substantiall y engage di nth e busines s o f

aeronautics , o r (ill ) A noffice r

o r directo r of an y suc h entity , o r (iv ) A holde r

o f 1 0 percen t

o r mor e o f tota l outstandin g votin g stoc k of an y suc hentity , th e lis t

shal l describ e suc h relationship(s)
. (h ) A lis t

o f th e applicant' s subsidi

aries
. I f any , includin g adescriptio no f eac hsubsidiary' s principa l busines s an drelationshi p t o th e applicant
. (1 ) A lis t o f th e applicant' s share s o f stoc k in , o r contro l of

, an y ai r carrier , foreig nai r

carrier , commo ncarrier , o r perso n substantiall y engage di nth e busines s of

aeronautics
. (j ) T o th e exten t

an y relevan t

cor poratio nha s bee nengage di n an y busi

nes s prio r

t o th e filin g o f

th e applica

tion , eac happlican t

shal l provide : (1 ) Copie s o f

th e lO K Annua l Report s file di n th e pas t

3 year s b y an y rel

evan t corporatio nrequire dt o fil e suc h report s wit hth e Securitie s an dEx

chang e Commission , an d (2 ) Copie s o f

recentl y file dlOQ Quar

terl y Reports , a s necessary , i norde r t o sho w th e financia l conditio nand-Je

suit s o f operation s o f

th e enterpris e curren t t o withi n3 month s of th e dat e of th e filin g of

th e application
. (k ) I f lOK Report s ar e no t

file dwit h th e Securitie s an dExchang e Commis

sion , th e following , fo r th e 3 mos t

re ceij t calenda r

o r fisca l years , reflectin g th e financia l conditio n an dresult s o f operation s o f

th e enterpris e curren t t o withi n 3 month s o f

th e dat e of

th e fil

in g of th e application : (1 ) Th e Balanc e Shee t of eac hrel

evan t corpoi'ation ; (2 ) Th e Incom e Statemen t of eac h relevan t corporation ; 

### 1 3§204. 3 1 4 CF R Ct\

. I I (1-1-0 8 Edition ) (3 ) Al l footnote s applicabl e t o th e fi

nancia l statements , including : (1 ) A statemen t

a s t o whethe r

th e document s wer e prepare di n accord

anc e wit hGenerall y Accepte dAccount

in g Principles , an d (il ) A descriptio n of

th e significan t accountin g policie s o ? eac hrelevan t corporation , suc ha s fo r depreciation , amortizatio n of

intangibles , overhauls , unearne dreyenues , an dcos t capitaliza

tion ; (4 ) A statemen t

o f significan t

event s occurrin g subsequen t

t o th e mos t

re cen t Balanc e Shee t

dat e fo r

eac hrel

evan t corporation ; an d (5 ) A statemen t

Identifyin g th e per so n wh o ha s prepare dth e financia l statements , hi s o r

he r accountin g qualifications , an dan y affiliatio nh e o r sh e ha s wit hth e applicant
. (1 ) A lis t

of

- al l action s an dout
standin g judgment s fo r mor e tha n $5,000 agains t

an y relevan t

corporation , ke y personne l employe d(o r t o b e em ployed ) b y an y relevan t corporatlbn , o r perso n havin g asubstantia l Interes t i n an y relevan t

corporation , includin g th e amoun t o f eac hjudgment , th e part y t o who mi t i s payable , an dho w lon g i t ha s bee n outstanding
. (m ) Th e numbe r

o f action s an dout
standin g judgment s of les s tha n$5,00

0 agains t eac hrelevan t

corporation , ke y personne l employe d(o r t o b e em ployed ) b y an y relevan t corporation , o r perso n havin g asubstantia l interes t i n an y relevan t

corporation , an dth e tota l amoun t owe db y eac ho nsuc hjudg

ments
. (n ) A descriptio n of

th e applicant' s flee t o f aircraft , including : (1 ) Th e numbe r

o f eac htyp e of

air

craft owned , lease dan dt o b e purchase d o r leased ; (2) Applicant' s plans , includin g fi

nancin g plans , fo r

th e purchas e o r

leas e of additiona l aircraft ; an d (3 ) A swor naffidavi t statin g tha t eac haircraf t

owne do r

lease dha s bee n certifie db y th e FA A an dcurrentl y complie s wit hal l FA A safet y stand

ards
. (0 ) A descriptio n o f

th e curren t

sta
tu s o f al l pendin g investigations , en forcemen t

actions , an dforma l com plaint s file db y th e Department , in

cludin g th e FAA , involvin g th e appli

can t o r an y relevan t

corporation , an y personne l employe d(o r t o b e em ployed ) b y an y relevan t corporatio no r perso nhavin g asubstantia l interes t i n an y relevan t

corporation , regardin g complianc e wit hth e Statut e o r orders , rules , regulations , o r requirement s issue dpursuan t

t o th e Statute , an d an y correctiv e action s taken
. (I f a nap plican t ha s acomplianc e histor y tha t warrant s it , additiona l informatio n ma y b e required. ) (p ) A descriptio n of

al l charge s o f

un fai r o r deceptiv e o r

anticompetitiv e busines s practices , o r o f fraud , felon y o r antitrus t

violation , brough t

agains t an y relevan t

corporatio n o r

perso n havin g asubstantia l interes t i n an y relevan t corporation , o r

membe r o f th e ke y personne l employe d(o r t o b e em ployed ) b y an y relevan t corporatio ni n th e pas t 1 0 years . Suc hdescription s shal l includ e th e dispositio no r curren t statu s o f eac hsuc hproceeding
. (q ) A descriptio n o f

an y aircraf t

acci

dent s o r Incident s (a s define di nth e Nationa l Transportatio nSafet y Boar d Regulations , 4

9 CF R830.2) experience d b y th e applicant , it s personnel , o r an y relevan t corporation , whic hoccurre d eithe r durin g th e yea r

precedin g th e dat e o f applicatio no r

a t an y tim e i n th e pas t an dwhic hremai ntmde r inves

tigatio nb y th e FAA , th e NTSB , o r b y th e compan y itself , including : (1 ) Th e dat e o f

th e occurrence ; (2 ) Th e typ e o f

flight ; (3 ) Th e numbe r

o f passenger s an d cre w o nboar dan da nenumeratio no f an y injurie s o r

fatalities ; (4 ) A descriptio n o f

an y damag e t o th e aircraft ; (5 ) Th e FA A an dNTS B fil e number s an dth e statu s o f

th e investigations , in

cludin g an y enforcemen t action s initi

ate dagains t

th e carrie r

o r an y of It s personnel ; an d (6 ) Positiv e action s take nt o preven t recurrence . (I f

a n applicant' s histor y o f accident s o r

incident s warrant s it , ad

ditiona l informatio n ma y b e required. ) (r ) A brie f

narrativ e histor y o f th e applicant
. (s ) A descriptio n of

al l Federal , Stat e an dforeig nauthorit y unde r whic hth e applican t

ha s conducte do r

i s con ductin g transportatio noperations , an d th e identify of

th e loca l FA A offic e an d personne l responsibl e fo r processin g a n 

### 1 4Offic e o f tti e Secretary , DO T §204. 4 applicatio nfo r

an y additiona l FA A au thorit y neede dt o conduc t th e propose d operations
. (t ) A descriptio nof

th e servic e t o b e operate di f

th e applicatio n i s granted , including : (1 ) A forecas t

Balanc e Shee t

fo r th e firs t norma l yea r

endin g afte r

th e Ini

tiall y propose doperation s hav e bee n incorporated , alon g wit hth e assump tion s underlyin g th e account s an d amount s shown ; an d (2 ) A forecas t

Incom e Statement , bro

ke n dow n b y quarters , fo r th e firs t

yea r endin g afte r

th e initiall y propose dop eration s ar e normalized , an da n itemizatio n o f

al l pre-operatin g an d start-u p cost s associate dwit hth e initi

atio no f th e propose dservice
. Suc hIn

com e Statemen t

shal l includ e esti

mate drevenu e bloc k

hour s (o r

airborn e hours , fo r

charte r operators ) an drev enu e mile s b y typ e o f

aircraft , numbe r o f passenger s an dnumbe r o f ton s o f mai l an dcarg o t o b e carried , transpor t revenue s an da n estimat e o f th e traffi c whic hwoul db e generate di neac hmar ke t receivin g th e propose dservice
. Suc hstatement s shal l als o includ e a statemen t

a s t o whethe r

th e state
ment s wer e prepare do n th e accrua l o r cas hbasis , a n explanatio n of ho w th e estimate dcost s an drevenue s wer e de

veloped , adescriptio n o f th e manne r

i n whic hcost s an drevenue s ar e allocated , ho w th e underlyin g traffi c forecast s wer e made , an dwha t loa dfacto r

ha s bee n assume dfo r

th e averag e an dpea k month
. Pre-operatin g an dstart-u p cost s shoul dinclude , bu t ar e no t lim

ite dto , th e following : Obtainin g nec essar y governmen t

approval ; estab

lishin g stations ; introductor y adver

tising ; aircraft , equipmen t an dspac e facilit y deposit s an drent ; training ; an d salarie s earne dprio r

t o stai't-up
. (u ) A signe dcounterpar t o f Agree

men t 1890 0 (OS T For m4523 ) a s require d b y par t 203 o f thi s chapter
. (v ) Th e followin g certification , whic h shal l accompan y th e applicatio n an d al l subsequen t

writte n submission s file db y th e applican t i n connectio n wit hit s application : Pursuan t t o titl e 1 8 Unite dState s Cod e sectio n 1001 , I [th e individual signin g th e ap plication , wh

o shal l be aprincipa l owner , senio r officer , or

Interna l counse l o

f th e ap plicant] , in m

y Individual capacit y anda s th e authorize drepresentativ e o f th e appli

cant , hav e not i nan y manne r

knowingl y and willfully falsified , conceale do r covere du

p any materia l fac t

o r made an y false , ficti

tious , or fraudulen t

statemen t

or knowingl y usedany document s whic hcontai n suc h statement s i n connectio nwit hth e prepara tion , filin g o r

prosecutio n o

f th e application
. I understan dtha t

a nIndividual wh

o i s foun d t o hav e violate dth e provision s o f 1 8 U.S.C
. sectio n 100 1 shal l b

e fine dno r

more tha n $10,00 0 or imprisone dno t

more tha n five years , or both
. (The reportin g requirement s containe di n thi s sectio nwer

e approve dby th e Offic

e o f Managemen t

an dBudget

unde r contro l num ber 2106-0023) [Docket No
. 47582

, 5 7 F R38766 , Aug
. 27
. 1992

, a s amende da t

6 0 F R43524 , Aug
. 22 , 1995 ] §204. 4 Carrier s proposin g t o provid e essentia l ai r

service
. Applicant s proposin g t o provid e es sentia l ai r

servic e hav e bee n divide d int o tw o categories , an dar e subjec t t o differin g dat asubmissio nrequirement s a s se t fort hi n paragraph s (a ) an d(b ) of thi s section
. However , i f acarrie r

ha s previousl y file dan y o f th e require d dat awit hth e Departmen t o r othe r Federa l agenc y an dthe y ar e availabl e t o th e Department , an dthes e dat acon tinu e t o reflec t

th e curren t

stat e of th e carrier' s fitness , th e carrie r ma y in

stea didentify th e dat aan dprovid e a citatio n fo r

th e dat e an dplac e of

filing
. Al l carrier s ma y contac t th e Ai r

Car

rie r Fitnes s Divisio n t o ascertai n wha t informatio ni s alread y availabl e t o th e Departmen t

an dthu s ma y no t

nee dt o b e resubmitted
. (a ) Carrier s wh o propos e t o begi n o r expan dnon-subsidize dessentia l ai r servic e whe nth e incumben t leave s th e marke t mus t fil e th e followin g infor

mation : (1 ) Al l of

th e informatio n require d unde r §204. 3 o f

thi s part
. (2 ) A descriptio n o f

th e back-u p air

craft availabl e t o th e applicant , includ

ing : (i ) Th e numbe r

of eac htyp e of

suc h aircraft ; (11 ) Th e condition s unde r whic hsuc h aircraf t wil l b e availabl e t o th e carrier ; (ill ) Th e carrier' s plan s fo r financin g th e acquisitio no r

leas e o f

suc haddi

tiona l aircraft ; an d (iv ) A swor naffidavi t

statin g tha t

al l suc haircraf t

hav e bee ncertifie db y th e 

### 1 5

# e

- L

. . 1 

### -o rn- . (• • ; • TP'TATJO V li&Deportmen t o f 120 0 N« wJersa yAvenue , S

E ThmfpOlfOtto n Washington , D C 2059 0 

### Offic e Oftti e Secretary o fHonsportotior i 

## Decembe r

18,200 9 B y Fax ; (469 ) 916-153 9 Mr
. Kennet

hGardne r Smal l Community Airlines , Inc
. 751 5 Lemmo n Avenu e Dallas , TX 7520 9 Re : Docke t DOT-OST-2005-2182 2 Applicatio n of

Smal l Community Airlines , Inc
. for Sectio n 4110 2 Certificate Authority
. Dear Mr
. Gardner : O n Jun e 23 , th e Departmen t requeste dfurther

informatio n fromSmal l Community Airlines , Inc
. ("SCA" ) t o supplemen t it s application
. Th e company' s respons e wa s du e t o th e Departmen t

o n Jul y 7 , 2009
. O n Jul y 14 , w e reminde dSC A that w e ha dyet

t o receiv e th e informatio n w e requested
. A t thi s tim e th e SC A informe du s tha t it wa s i n th e proces s o f changin g it s Directo r

o f Operation s an dthat

it woul dprovid e th e relativ e fitnes s informatio n onc e ane w Directo r o f Operation s wa s determined
. T o date , however , w e hav e no t receive dan y additional informatio n o r respons e fromSCA
. It i s no t th e Department' s polic y t o kee p incomplet e application s ope n indefinitely
. Therefore , unles s SC A provide s acomplet e respons e t o our Jun e 2 3 Informatio n Reques t (cop y enclosed ) withi n 1 4 day s of th e dat e of

thi s letter , w e inten dt o dismis s it s applicatio n withou t furthe r notice
. Thank yo u for your cooperatio n in thi s matter
. I f you hav e an y question s regardin g thi s lette r o r th e requeste dinfprmati)3|^ , pleas e feel free t o contac t m e a t (202 ) 366-7785
. Sincerely ,

Damo n Walker Transportatio n Industr

y Analys t Ai r Carrie r Fitnes s Divisio n

## Enclosur e

cc : Docke t

DOT-OST-2005-2128 8 Mr
. WilliamH
. Smit

h FA A DF WFSD O Southwes t

Regio n Centre Por

t Busines s Par

k 1480 0 Trinity Blvd. , Suit e 20 0 Fort hWorth , T X 7615 5

## SMAL LCOMMUNIT Y AIRLINES , INC
. INFORMATIO N REQUES T
FINANCIA LPOSITIO N AN D OPERATIN GPLAN S 1
. Pleas e provid e th e identity th e perso n preparin g SCA' s financial statements , describ e thei r accountin g experience , an didentif y whethe r

th e financial statement s were prepare d usin g Generall y Accepte dAccountin g Principles
. Additionally , provid e SCA' s mos t recentl y audite dfinancial statements
. 2
. SCA' s balanc e shee t contain s n o entry fo

r it s curren t

portio n o f

long-termdebt , althoug hSC A ha s liste dinteres t expens e fo

r it s aircraf

t loan s o n it s pre-operatin g expens e forecast
. Pleas e explain
. 3
. SCA' s mos t

recent lis t of pre-operatin g expense s an dit s first-yea r operatin g forecas t include s n o expense s associat e wit hit s operation s a

t Beaumont , TX , suc has , gate , ticke t counter , landin g expense , etc
. Moreover , SC A ha s no t include daircraf

t leas e expense s in eithe r it s pre-operatin g expens e forecas t o r it s first-yea

r expens e forecast , althoug hit i s ou r understandin g tha

t i t i s currentl y leasin g a

n aircraf t in additio n t o th e tw o aircraf t it currentl y owns . Furthermore , SC A ha s include daBeaumon t set-u p fe e in th e incom e category of

it s operatin g forecast
. Pleas e correc t and/o r clarif y thes e deficiencie s an d provid e a n update dpre-operatin g expens e forecas t an da n update dfirst-yea

r operatin g forecas t i f necessary . Th e update dpre-operatin g expens e forecas t shoul ddistinguis h betwee n pre-operatin g expense s that hav e bee n incurre dan dpai dt o date , an dthos e whic hremai n t o b e paid
. COMPLIANC E Th e informatio n provide dpursuan t t o thi s Informatio n Reques t shoul db e accompanie d b y th e followin g certification : Th e content s of

thi s applicatio n an dth e attache dexhibit (s ) are tru e andcorrec t

t o th e bes t of m y knowledg e an dbelief

. Pursuan t

to Title 1 8 Unite dState s Cod e Sectio n 1001 , I [th e individua l signin g th e application , who shal l b e aprincipa l owner , senio r

officer , o r

interna l counse l o f

th e applicant] , in m

y individual capacity an da s th e authorize drepresentativ e o f th e applicant , hav e no t

in any manner knowingl y an dwillfull y falsified , conceale do r faile dt o disclos e any material fact

o r mad e any false , fictitious , o r fraudulent

statemen t

o r knowingl y use dany document s whic hcontai n suc hstatement s in coruiectio n wit hth e preparation , filin g o r

prosecutio n o f

th e application
. I understan dthat a n individual wh o i s foundto hav e violate dth e provision s of 1 8 U.S. C sectio n 100 1 shal l b e finedo r

imprisone dno t

more than fiv e years , o r

both
.