& 

U S. DepartlTMmt of 1200 New jersey Avenue, SE 

Transportatio n Washington, DC 20590 

Off ice of the Secretary 

of Transportation 

January 13, 2010 

Mr. Kenneth Gardner 

Small Community Airlines, Inc. 

7515 Lemmon Avenue 

Dallas, TX 75209 

Re: Docket DOT-OST-2005-21822 

Application of Small Community Airlines, Inc. 

for Section 41102 Certificate Authority. 

Dear Mr. Gardner: 

As you know on June 23, the Department requested further information from Small 

Community Airlines, Inc. ("SCA"), to supplement its application. The company's response 

was due to the Department on July 7, 2009. On July 14 and on December 18, we reminded 

SCA that we had yet to receive the information we requested and on December 31, 2009, 

SCA requested an additional extension to provide the requested fitness information. 

Per your request, we have decided to grant SCA an additional 14 days (i.e. until January 

27, 2010), to file the fitness information requested by our June 23 letter. In addition, 

because much of the evidentiary material submitted in support of SCA's fitness has now 

become outdated, we will need additional information demonstrating SCA's fitness before 

we are able to make a positive fitness finding in this case. 

Therefore, in addition to the fitness information requested in our June 23 letter, please 

provided the following. 

1. A complete list of the key management personnel, as that term is defined in 14 

CFR 204.2(i) (copy enclosed) together resume for any new key personnel and the 

compliance information required by sections 204.3 (I), (m), (o), (p), and (q) of our 

rules. 

Each resume should include the individual's full name, citizenship, current 

address, and telephone numbers, together with a detailed listing of all previous 

employment (both aviation and non-aviation) and education and training, 

including FAA certifications and license numbers if applicable. The employment 

listing should include the name of employer, location (city, state), type of 

business, position(s) held, description of responsibilities, and dates employed. 

Further, if the employer held any aviation authority, the type of authority held 

should be noted. 
2. Please provide a revised pre-operating expense forecast. This forecast should 

include, among other things, lease deposits and rents, legal expenses* station 

expenses, facility deposits and rents, training, insurance, general, administrative, 

and employee expenses, and expenses related to FAA certification. Additionally, 

such list should distinguish between pre-operating expenses that have been paid, 

and those which remain to be paid. 

3. Please provide a revised first-year expense forecast. Additionally, such forecast 

should conform to the criteria outlined in 14 CFR 204.3(t)(2). 

4. Please provide third-party verification of all lines-of-credit and all cash deposits 

available to support SCA proposed operations. This verification of lines-of-credit 

should include the total line-of-credit being made available, the amount such 

credit line has been drawn down to date, any conditions that must be met before 

funds will be advanced, the terms of repayment, and the expiration date. Further, 

if the line-of-credit is being supplied by an individual or organization (other than 

a recognized financial institution) copies of the personal or corporate financial 

statements of the individual or organization should also be provided. -T5. Please provide a statement from the Office of the Secretary of State, or other 

agent of the State in which the applicant is incorporated, certifying that the 

applicant is in good standing. 

The information provided pursuant to this Information Request should be accompanied by 

the certification required by section 204.3(v) In addition, SCA should provide the 

Department with any additional information regarding changes to the fitness information it 

has previously provided. The original plus 2 copies of your response and all future 

submissions of evidentiary material should be mailed to: Docket Operations, 1200 New 

Jersey Ave. S.E., West Bldg. Ground Floor, Rm. W12-140, Washington, D.C. 20590, or 

you may electronically file your docketed submissions at www.regulations.gov. 

As is the Department's practice, further processing of SCA's application will be deferred 

pending receipt of this material. In addition, we remind SCA that it is not the Department's 

policy to keep incomplete applications open indefinitely. Accordingly, unless SCA 

provides a complete response to our Information Requests within 14 days of the date of this 

letter, we intend to dismiss its application without further notice. 

Thank you for your cooperation in this matter. If you have any questions regarding this 

letter or the requested information, please feel free to contact me at (202) 366-7785. 

Sincerely, 

Damon^fatker 

Transportation Industry Analyst 

Air Carrier Fitness Division 
Enclosure 

cc: Docket DOT-OST-2005-21288 

Mr. William H. Smith 

FAA DFW FSDO 

Southwest Region 

Centre Port Business Park 

14800-Trinity Blvd., Suite 200 

Forth Worth, TX 76155 
Office of the Secretary, DOT §204.2 

204.5 Certificated and commuter air carriers 

undergoing or proposing to undergo substantial change In operations, ownership, 

or management. 

204.6 Certificated and commuter air carriers 

proposing a change in operations, ownership, or management which is not substantial. 

204.7 Revocation for dormancy. 

AUTHORITY: 49 U.S.C. Chapters 401, 411, 417. 

SOURCE: Doclcet No. 47582, 57 FR 38766, Aug. 

27,1992, unless otherwise noted. 

Subpart A—General Provisions 

§204.1 Purpose. 

This part sets forth the fitness data 

that must be submitted by applicants 

for certificate authority, by applicants 

for authority to provide service as a 

commuter air carrier to an eligible 

place, by carriers proposing to provide 

essential air transportation, and by 

certificated air carriers and commuter 

air carriers proposing a substantial 

change in operations, ownership, or 

management. This part also contains 

the procedures and filing requirements 

applicable to carriers that hold dormant authority. 

[72 FR 20036, Apr. 23, 2007] 

§204.2 Definitions. 

As used in this part: 

(a) All-cargo air carrier or section 41103 

carrier means an air carrier holding an 

all-cargo air transportation certificate 

Issued under section 41103 of the Statute authorizing the transportation by 

aircraft in interstate air transportation of only property or only mall, or 

both. 

(b) Certificate authority means authority to provide air transportation granted by the Department of Transportation or Civil Aeronautics Board In 

the form of a certificate of public convenience and necessity under section 

41102 of the Statute or an all-cargo air 

transportation certificate to perform 

all-cargo air transportation under section 41103 of the Statute. Certificated 

carriers are those that hold certificate 

authority. 

(c) Citizen of the United States means: 

(1) An individual who is a citizen of 

the United States; 

(2) A partnership each of whose partners Is an Individual who Is a citizen of 

the United States; or 

(3) A corporation or association organized under the laws of the United 

States or a State, the District of Columbia, or a territory or possession of 

the United States, of which the president and at least two-thirds of the 

board of directors and other managing 

officers are citizens of the United 

States, which is under the actual control of citizens of the United States, 

and in which at least 75 percent of the 

voting interest Is owned or controlled 

by persons that are citizens of the 

United States. 

(d) Commuter air carrier means an air 

carrier holding or seeking authority 

under part 298 of this Chapter that carries passengers on at least five round 

trips per week on at least one route between two or more points according to 

its published flight schedules that 

specify the times, days of the week, 

and places between which those flights 

are performed. 

(e) Eligible place means a place in the 

United States that— 

(1) Was an eligible point under section 419 of the Federal Aviation Act of 

1958 as in effect before October 1, 1988; 

(2) Received scheduled air transportation at any time between January 1, 

1990, and November 4, 1990; and 

(3) Is not listed in Department of 

Transportation Orders 89-9-37 and 89-

12-52 as a place Ineligible for compensation under Subchapter II of Chapter 417 of the Statute. 

(f) Essential air service is that air 

transportation which the Department 

has found to be essential under Subchapter II of Chapter 417 of the Statute. 

(g) Fit means fit, willing, and able to 

perform the air transportation in question properly and to conform to the 

provisions of the Statute and the rules, 

regulations and requirements issued 

under the Statute. 

(h) Interstate air transportation means 

the transportation of passengers or 

property by aircraft as a common carrier for compensation, or the transportation of mail by aircraft— 

(1) Between a place in— 

(i) A State, territory, or possession of 

the United States and a place in the 

11 
§204.3 14 CFR Ch. II (1-1-08 Edition) 

District of Columbia or another State, 

territory, or possession of the United 

States; 

- ' (11)'Hawaii and another place in Hawaii through the airspace over a place 

outside Hawaii; 

(111) The District of Columbia and another place in the District of Columbia; 

or 

(iv) A territory or possession of the 

United States and another place in the 

same territory or possession; and 

(2) When any part of the transportation is by aircraft. 

(1) Key personnel include the directors, president, chief executive officer, 

chief operating officer, all vice presidents, the directors or supervisors of 

operations, maintenance, and finance, 

-and the chief pilot of the applicant or 

air carrier, as well as any part-time or 

full-time advisors or consultants to the 

management of the applicant or air 

carrier. 

(j) Normalized operations are those 

which are relatively free of start-up 

costs and temporary barriers to fullscale operations posed by the carrier's 

limited experience. 

(k) Relevant corporations are the applicant or air carrier, any subsidiary 

thereof, any predecessor thereof (i.e., 

any air carrier in which any directors, 

principal officers or persons having a 

substantial interest have or once h4,d a 

substantial interest), and any company 

(including a sole proprietorship or 

partnership) which has a significant financial or managerial Influence on the 

applicant or air carrier. The latter Includes: 

(1) Any company (Including a sole 

proprietorship or partnership) holding 

more than 50 percent of the outstanding voting stock of the applicant 

or air carrier; and 

(2) Any company (including a sole 

proprietorship or partnership) holding 

between 20 percent and 50 percent of 

the outstanding voting stock of the applicant or air carrier and which has 

significant Influence over the applicant 

or air carrier as indicated, for example, 

by 25 percent representation on the 

board of directors, participation in policy-making processes, substantial 

inter-company transactions, or managerial personnel with common responsibilities in both companies. 

(1) Substantial change in operations, 

ownership, or management includes, but 

is not limited to, the following events: 

(1) Changes in operations from charter to scheduled service, cargo to passenger service, short-haul to long-haul 

service, or (for a certificated air carrier) small-aircraft to large-aircraft operations; 

(2) The filing of a petition for reorganization or a plan of reorganization 

under Chapter 11 of the federal bankruptcy laws; 

(3) The acquisition by a new shareholder or the accumulation by an existing shareholder of beneficial control of 

10 percent or more of the outstanding 

voting stock in the corporation; and 

(4) A change in the president, chief 

executive officer or chief operating officer, and/or a change in at least half of 

the other key personnel within any 12-

month period or since Its latest fitness 

review, whichever is the more recent 

period. 

(m) Substantial interest means beneficial control of 10 percent or more of 

the outstanding voting stock. 

[Docket No. 47582, 57 FR 38766, Aug. 27, 1992, 

a s amended a t 60 FR 43523, Aug. 22, 1995; 64 

FR 12085, Mar. 11, 1999; 72 FR 20036, Apr. 23, 

2007] 

Subpart B—Filing Requirements 

§204.3 Applicants for new certificate 

or commuter air carrier authority. 

An applicant for a type of certificate 

authority it does not currently hold or 

for commuter air carrier authority 

shall file the data set forth in paragraphs (a) through (v) of this section. 

In addition, the Department may require an applicant to provide additional data if necessary to reach an informed judgment about its fitness. If 

the applicant has previously formally 

filed any of the required data with the 

Department or with another Federal 

agency and they are available to the 

Department, and those data continue 

to reflect the current state of the carrier's fitness, the applicant may instead identify the data and provide a 

citation for the date(s) and place(s) of 

filing. Prior to filing any data, the applicant may contact the Air Carrier 

Fitness Division to ascertain what data 

required by this section are already 

12 
§204.3 14 CFR Ch. II (1-1-08 Edition) 

District of Columbia or another State, 

territory, or possession of the United 

States; 

(11) Hawaii and another place in Hawaii through the airspace over a place 

outside Hawaii; 

(ill) The District of Columbia and another place in the District of Columbia; 

or 

(iv) A territory or possession of the 

United States and another place in the 

same territory or possession; and 

(2) When any part of the transportation is by aircraft. 

(i) Key personnel include the directors, president, chief executive officer, 

chief operating officer, all vice presidents, the directors or supervisors of 

operations, maintenance, and finance, 

and the chief pilot of the applicant or 

air carrier, as well as any part-time or 

full-time advisors or consultants to the 

management of the applicant or air 

carrier. 

(j) Normalized operations are those 

which are relatively free of start-up 

costs and temporary barriers to fullscale operations posed by the carrier's 

limited experience. 

(k) Relevant corporations are the applicant or air carrier, any subsidiary 

thereof, any predecessor thereof (i.e., 

any air carrier in which any directors, 

principal officers or persons having a 

substantial interest have or once had a 

substantial interest), and any company 

(including a sole proprietorship or 

partnership) which has a significant financial or managerial Influence on the 

applicant or air carrier. The latter includes: 

(1) Any company (including a sole 

proprietorship or partnership) holding 

more than 50 percent of the outstanding voting stock of the applicant 

or air carrier; and 

(2) Any company (including a sole 

proprietorship or partnership) holding 

between 20 percent and 50 percent of 

the outstanding voting stock of the applicant or air carrier and which has 

significant influence over the applicant 

or air carrier as indicated, for example, 

by 25 percent representation on the 

board of directors, participation in policy-making processes, substantial 

inter-company transactions, or managerial personnel with common responsibilities in both companies. 

(1) Substantial change in operations, 

ownership, or management Includes, but 

is not limited to, the following events: 

(1) Changes in operations from charter to scheduled service, cargo to passenger service, short-haul to long-haul 

service, or (for a certificated air carrier) small-aircraft to large-aircraft operations; 

(2) The filing of a petition for reorganization or a plan of reorganization 

under Chapter 11 of the federal bankruptcy laws; 

(3) The acquisition by a new shareholder or the accumulation by an existing shareholder of beneficial control of 

10 percent or more of the outstanding 

voting stock in the corporation; and 

(4) A change in the president, chief 

executive officer or chief operating officer, and/or a change in at least half of 

the other key personnel within any 12-

month period or since its latest fitness 

review, whichever is the more recent 

period. 

(m) Substantial interest means beneficial control of 10 percent or more of 

the outstanding voting stock. 

[Docket No. 47582, 57 FR 38766, Aug. 27, 1992, 

a s amended a t 60 FR 43523, Aug. 22, 1995; 64 

FR 12085, IVIar. 11, 1999; 72 FR 20036, Apr. 23, 

2007] 

Subpart El—Filing Requirements 

§204.3 Applicants for new certificate 

or commuter air carrier authority. 

An applicant for a type of certificate 

authority it does not currently hold or 

for commuter air carrier authority 

shall file the data set forth in paragraphs (a) through (v) of this section. 

In addition, the Department may require an applicant to provide additional data if necessary to reach an informed judgment about its fitness. If 

the applicant has previously formally 

filed any of the required data with the 

Department or with another Federal 

agency and they are available to the 

Department, and those data continue 

to reflect the current state of the carrier's fitness, the applicant may instead identify the data and provide a 

citation for the date(s) and place(s) of 

filing. Prior to filing any data, the applicant may contact the Air Carrier 

Fitness Division to ascertain what data 

required by this section are already 

12 
Office of tt\e Secretary, DOT §204.3 

available to the Department and need 

not be Included in the filing. 

NOTE: If the applicant intends to use as 

evidence data it has previously filed pursuant to part 241 reporting requirements and 

those data contain errors, the applicant 

must first file corrected reports in accordance with §241.22(g). 

(a) The name, address, and telephone 

number of the applicant. 

(b) The form of the applicant's organization. 

(c) The State law(s) under which the 

applicant is organized. 

(d) If the applicant is a corporation, a 

statement provided by the Office of the 

Secretary of State, or other agent of 

the State in which the applicant is incorporated, certifying that the applicant corporation is in good standing. 

(e) A sworn affidavit stating that the 

applicant is a citizen of the United 

States. 

(f) The identity of the key personnel 

who would be employed by the applicant, including: 

(1) Their names and addresses; 

(2) The experience, expertise, and responsibilities of each; 

(3) The number of shares of the applicant's voting stock held by each and 

the percentage of the total number of 

such shares issued and outstanding, 

and the citizenship and principal business of any person for whose account, if 

other than the holder, such interest is 

held; 

(4) The citizenship of each; and 

(5) A description of the officerships, 

directorships, shares of stock (if 10 percent or more of total voting stock outstanding), and other interests each 

holds or has held in any air carrier, foreign air carrier, common carrier, person substantially engaged in the business of aeronautics or persons whose 

principal business (in purpose or fact) 

is the holding of stock In or control of 

any air carrier, common carrier or person substantially engaged in the business of aeronautics. 

(g) A list of all persons having a substantial interest In the applicant. Such 

list shall include: 

(1) Each person's name, address and 

citizenship; 

(2) The number of shares of the applicant's voting stock held by each such 

person and the corresponding percentage of the total number of sucli shares 

issued and outstanding, and the citizenship and principal business of any 

person for whose account, if other than 

the holder, such Interest Is held; 

(3) If any two or more persons holding a substantial Interest in the applicant are related by blood or marriage, 

such relationship(s) shall be included 

in the list; and 

(4) If any person or subsidiary of a 

person having a substantial Interest In 

the applicant is or has ever been 

(i) An air carrier, a foreign air carrier, a common carrier, or 

(11) Substantially engaged in the 

business of aeronautics, or 

(ill) An officer or director of any such 

entity, or 

(iv) A holder of 10 percent or more of 

total outstanding voting stock of any 

such entity, the list shall describe such 

relationship(s). 

(h) A list of the applicant's subsidiaries. If any, including a description of 

each subsidiary's principal business 

and relationship to the applicant. 

(1) A list of the applicant's shares of 

stock in, or control of, any air carrier, 

foreign air carrier, common carrier, or 

person substantially engaged in the 

business of aeronautics. 

(j) To the extent any relevant corporation has been engaged in any business prior to the filing of the application, each applicant shall provide: 

(1) Copies of the lOK Annual Reports 

filed in the past 3 years by any relevant corporation required to file such 

reports with the Securities and Exchange Commission, and 

(2) Copies of recently filed lOQ Quarterly Reports, as necessary, in order to 

show the financial condition and-Jesuits of operations of the enterprise 

current to within 3 months of the date 

of the filing of the application. 

(k) If lOK Reports are not filed with 

the Securities and Exchange Commission, the following, for the 3 most receijt calendar or fiscal years, reflecting 

the financial condition and results of 

operations of the enterprise current to 

within 3 months of the date of the filing of the application: 

(1) The Balance Sheet of each relevant corpoi'ation; 

(2) The Income Statement of each 

relevant corporation; 

13 
§204.3 14 CFR Ct\. II (1-1-08 Edition) 

(3) All footnotes applicable to the financial statements, including: 

(1) A statement as to whether the 

documents were prepared in accordance with Generally Accepted Accounting Principles, and 

(il) A description of the significant 

accounting policies o? each relevant 

corporation, such as for depreciation, 

amortization of intangibles, overhauls, 

unearned reyenues, and cost capitalization; 

(4) A statement of significant events 

occurring subsequent to the most recent Balance Sheet date for each relevant corporation; and 

(5) A statement Identifying the person who has prepared the financial 

statements, his or her accounting 

qualifications, and any affiliation he or 

she has with the applicant. 

(1) A list of- all actions and outstanding judgments for more than 

$5,000 against any relevant corporation, 

key personnel employed (or to be employed) by any relevant corporatlbn, or 

person having a substantial Interest in 

any relevant corporation, including the 

amount of each judgment, the party to 

whom it is payable, and how long it has 

been outstanding. 

(m) The number of actions and outstanding judgments of less than $5,000 

against each relevant corporation, key 

personnel employed (or to be employed) by any relevant corporation, or 

person having a substantial interest in 

any relevant corporation, and the total 

amount owed by each on such judgments. 

(n) A description of the applicant's 

fleet of aircraft, including: 

(1) The number of each type of aircraft owned, leased and to be purchased 

or leased; 

(2) Applicant's plans, including financing plans, for the purchase or lease 

of additional aircraft; and 

(3) A sworn affidavit stating that 

each aircraft owned or leased has been 

certified by the FAA and currently 

complies with all FAA safety standards. 

(0) A description of the current status of all pending investigations, enforcement actions, and formal complaints filed by the Department, including the FAA, involving the applicant or any relevant corporation, any 

personnel employed (or to be employed) by any relevant corporation or 

person having a substantial interest in 

any relevant corporation, regarding 

compliance with the Statute or orders, 

rules, regulations, or requirements 

issued pursuant to the Statute, and 

any corrective actions taken. (If an applicant has a compliance history that 

warrants it, additional information 

may be required.) 

(p) A description of all charges of unfair or deceptive or anticompetitive 

business practices, or of fraud, felony 

or antitrust violation, brought against 

any relevant corporation or person 

having a substantial interest in any 

relevant corporation, or member of the 

key personnel employed (or to be employed) by any relevant corporation in 

the past 10 years. Such descriptions 

shall include the disposition or current 

status of each such proceeding. 

(q) A description of any aircraft accidents or Incidents (as defined in the 

National Transportation Safety Board 

Regulations, 49 CFR 830.2) experienced 

by the applicant, its personnel, or any 

relevant corporation, which occurred 

either during the year preceding the 

date of application or at any time in 

the past and which remain tmder investigation by the FAA, the NTSB, or by 

the company itself, including: 

(1) The date of the occurrence; 

(2) The type of flight; 

(3) The number of passengers and 

crew on board and an enumeration of 

any injuries or fatalities; 

(4) A description of any damage to 

the aircraft; 

(5) The FAA and NTSB file numbers 

and the status of the investigations, including any enforcement actions initiated against the carrier or any of Its 

personnel; and 

(6) Positive actions taken to prevent 

recurrence. (If an applicant's history of 

accidents or incidents warrants it, additional information may be required.) 

(r) A brief narrative history of the 

applicant. 

(s) A description of all Federal, State 

and foreign authority under which the 

applicant has conducted or is conducting transportation operations, and 

the identify of the local FAA office and 

personnel responsible for processing an 

14 
Office of ttie Secretary, DOT §204.4 

application for any additional FAA authority needed to conduct the proposed 

operations. 

(t) A description of the service to be 

operated if the application is granted, 

including: 

(1) A forecast Balance Sheet for the 

first normal year ending after the Initially proposed operations have been 

incorporated, along with the assumptions underlying the accounts and 

amounts shown; and 

(2) A forecast Income Statement, broken down by quarters, for the first year 

ending after the initially proposed operations are normalized, and an 

itemization of all pre-operating and 

start-up costs associated with the initiation of the proposed service. Such Income Statement shall include estimated revenue block hours (or airborne 

hours, for charter operators) and revenue miles by type of aircraft, number 

of passengers and number of tons of 

mail and cargo to be carried, transport 

revenues and an estimate of the traffic 

which would be generated in each market receiving the proposed service. 

Such statements shall also include a 

statement as to whether the statements were prepared on the accrual or 

cash basis, an explanation of how the 

estimated costs and revenues were developed, a description of the manner in 

which costs and revenues are allocated, 

how the underlying traffic forecasts 

were made, and what load factor has 

been assumed for the average and peak 

month. Pre-operating and start-up 

costs should include, but are not limited to, the following: Obtaining necessary government approval; establishing stations; introductory advertising; aircraft, equipment and space 

facility deposits and rent; training; and 

salaries earned prior to stai't-up. 

(u) A signed counterpart of Agreement 18900 (OST Form 4523) as required 

by part 203 of this chapter. 

(v) The following certification, which 

shall accompany the application and 

all subsequent written submissions 

filed by the applicant in connection 

with its application: 

Pursuant to title 18 United States Code 

section 1001, I [the individual signing the application, who shall be a principal owner, 

senior officer, or Internal counsel of the applicant], in my Individual capacity and as 

the authorized representative of the applicant, have not in any manner knowingly and 

willfully falsified, concealed or covered up 

any material fact or made any false, fictitious, or fraudulent statement or knowingly 

used any documents which contain such 

statements in connection with the preparation, filing or prosecution of the application. 

I understand that an Individual who is found 

to have violated the provisions of 18 U.S.C. 

section 1001 shall be fined nor more than 

$10,000 or imprisoned not more than five 

years, or both. 

(The reporting requirements contained in 

this section were approved by the Office of 

Management and Budget under control number 2106-0023) 

[Docket No. 47582, 57 FR 38766, Aug. 27. 1992, 

as amended at 60 FR 43524, Aug. 22, 1995] 

§204.4 Carriers proposing to provide 

essential air service. 

Applicants proposing to provide essential air service have been divided 

into two categories, and are subject to 

differing data submission requirements 

as set forth in paragraphs (a) and (b) of 

this section. However, if a carrier has 

previously filed any of the required 

data with the Department or other 

Federal agency and they are available 

to the Department, and these data continue to reflect the current state of the 

carrier's fitness, the carrier may instead identify the data and provide a 

citation for the date and place of filing. 

All carriers may contact the Air Carrier Fitness Division to ascertain what 

information is already available to the 

Department and thus may not need to 

be resubmitted. 

(a) Carriers who propose to begin or 

expand non-subsidized essential air 

service when the incumbent leaves the 

market must file the following information: 

(1) All of the information required 

under §204.3 of this part. 

(2) A description of the back-up aircraft available to the applicant, including: 

(i) The number of each type of such 

aircraft; 

(11) The conditions under which such 

aircraft will be available to the carrier; 

(ill) The carrier's plans for financing 

the acquisition or lease of such additional aircraft; and 

(iv) A sworn affidavit stating that all 

such aircraft have been certified by the 

15 
e - L. . 1 -or n-. (•• ; • TP'TATJOV 

li&Deportmen t o f 1200 N«w Jersay Avenue, SE 

ThmfpOlfOtto n Washington, DC 20590 

Office Of ttie Secretary 

of Honsportotiori 

December 18,2009 

By Fax; (469) 916-1539 

Mr. Kenneth Gardner 

Small Community Airlines, Inc. 

7515 Lemmon Avenue 

Dallas, TX 75209 

Re: Docket DOT-OST-2005-21822 

Application of Small Community Airlines, Inc. 

for Section 41102 Certificate Authority. 

Dear Mr. Gardner: 

On June 23, the Department requested further information from Small Community 

Airlines, Inc. ("SCA") to supplement its application. The company's response was due to 

the Department on July 7, 2009. On July 14, we reminded SCA that we had yet to receive 

the information we requested. At this time the SCA informed us that it was in the process 

of changing its Director of Operations and that it would provide the relative fitness 

information once a new Director of Operations was determined. 

To date, however, we have not received any additional information or response from SCA. 

It is not the Department's policy to keep incomplete applications open indefinitely. 

Therefore, unless SCA provides a complete response to our June 23 Information Request 

(copy enclosed) within 14 days of the date of this letter, we intend to dismiss its application 

without further notice. 

Thank you for your cooperation in this matter. If you have any questions regarding this 

letter or the requested infprmati)3|^, please feel free to contact me at (202) 366-7785. 

Sincerely, 

Damon Walker 

Transportation Industry Analyst 

Air Carrier Fitness Division 
Enclosure 

cc: Docket DOT-OST-2005-21288 

Mr. William H. Smith 

FAA DFW FSDO 

Southwest Region 

Centre Port Business Park 

14800 Trinity Blvd., Suite 200 

Forth Worth, TX 76155 
SMALL COMMUNITY AIRLINES, INC. 

INFORMATION REQUEST 

FINANCIAL POSITION AND OPERATING PLANS 

1. Please provide the identity the person preparing SCA's financial statements, describe 

their accounting experience, and identify whether the financial statements were prepared 

using Generally Accepted Accounting Principles. Additionally, provide SCA's most 

recently audited financial statements. 

2. SCA's balance sheet contains no entry for its current portion of long-term debt, 

although SCA has listed interest expense for its aircraft loans on its pre-operating 

expense forecast. Please explain. 

3. SCA's most recent list of pre-operating expenses and its first-year operating forecast 

includes no expenses associate with its operations at Beaumont, TX, such as, gate, ticket 

counter, landing expense, etc. Moreover, SCA has not included aircraft lease expenses in 

either its pre-operating expense forecast or its first-year expense forecast, although it is 

our understanding that it is currently leasing an aircraft in addition to the two aircraft it 

currently owns. Furthermore, SCA has included a Beaumont set-up fee in the income 

category of its operating forecast. Please correct and/or clarify these deficiencies and 

provide an updated pre-operating expense forecast and an updated first-year operating 

forecast if necessary. The updated pre-operating expense forecast should distinguish 

between pre-operating expenses that have been incurred and paid to date, and those 

which remain to be paid. 

COMPLIANCE 

The information provided pursuant to this Information Request should be accompanied 

by the following certification: 

The contents of this application and the attached exhibit (s) are true and correct to 

the best of my knowledge and belief. Pursuant to Title 18 United States Code 

Section 1001, I [the individual signing the application, who shall be a principal 

owner, senior officer, or internal counsel of the applicant], in my individual 

capacity and as the authorized representative of the applicant, have not in any 

manner knowingly and willfully falsified, concealed or failed to disclose any 

material fact or made any false, fictitious, or fraudulent statement or knowingly 

used any documents which contain such statements in coruiection with the 

preparation, filing or prosecution of the application. I understand that an 

individual who is found to have violated the provisions of 18 U.S.C section 1001 

shall be fined or imprisoned not more than five years, or both.