BEFOR E TH E — ' " ^ - " ' DEPARTMEN TO F TRANSPORTATIO N ^ ^ oi-U l WASHINGTON , D.C
. "'(ti u J ' Februar y23 , 201 2 Applicatio n of SU N AI R EXPRESS , LLC d/b/ a SU N AI R INTERNATIONA L Fo rauthorityt o conduct schedule d passenge r operation s a s a commute rai rcarrie runde r4 9 U.S.C
. 4173 R Docke t OST-2011-016 9

MOTIO N O F SEAPOR TAIRLINES , IN C FO R LEAV E T O FIL E A N OTHERWIS E UNAUTHORIZE D DOCUMEN T SeaPor t Airlines , Inc
. (hereafte r"SeaPort" ) motion s fo rleav e t o fil e a n otherwis e unauthorize d documen t i n th e fitnes s proceedin g ofSu n Ai rExpress , LL C d/b/ a Su n Ai r Internationa l (hereafte r"Su n Air" ) fo rauthorityt o conduct schedule d passenge roperation s a s a commute rai rcarrier
. W e believ e tha t Su n Air' s applicatio n doe s not accuratel yreflect it s operatin g plan s and , a s a result , i t shoul d amen d th e applicatio n includin g demonstratio n o f adequat e fundin g tha t meet s th e Department' s financia l fitnes s criteria
. SeaPor t di d no t fil e durin g th e regula rcommen t perio d becaus e a t tha t tim e w e believe d tha t Su n Ai rintende d t o operat e th e limite d service s a s describe d i n it s application
. Sinc e then , however
. Su n Ai rfile d a proposa l wit h th e Departmen t t o provid e Essentia l Ai rServic e ("EAS" ) a t communitie s i n Alabam a an d Mississipp i an d wit h a n operatin g pla n tha t require s greate r fundin g level s t o satisfyth e Department' s financia l fitnes s criteria
. Fo rthi s reason , SeaPor t respectfull yrequest s tha t th e Departmen t gran t thi s motion , plac e th e attache d comment s i n th e Su n Ai rapplicatio n docket , an d giv e carefu l consideratio n t o th e merit s o fthos e comments
. Communicatio n wit h respect t o thi s documen t shoul d b e sen t to : Timoth yF Siebe r Vic e Presiden t - Strateg y& Corporat e Developmen t SeaPor t Airlines , Inc
. 750 5 N E Airpor

t Way Portlan d Internationa l Airpor t Portland , Orego n 9721 8 (971)340-171 6 Email : tsieber@seaportair.co mBEFOR E TH E DEPARTMEN TO F TRANSPORTATIO N

WASHINGTON , D.C
. Februar y23 , 201 2 Applicatio n o f SU N AI R EXPRESS , LL C d/b/ a SU N AI R INTERNATIONA L Fo rauthorityt o conduct schedule d passenge r operation s as a commute rai rcarrie runde r4 9 U.S.C
. 4173 8 Docke t OST-2011-016 9

COMMENT S O F SEAPOR TAIRLINES , INC
. SeaPor t Airlines , Inc
. (hereafte r"SeaPort" ) believe s tha t th e Departmen t shoul d suspen d furthe rrevie wo fth e applicatio n ofSu n Ai rExpress , LLC d/b/ a Su n Ai rInternationa l (hereafte r "Su n Air" ) fo rauthorityt o conduct schedule d passenge roperation s a s a commute rai rcarrie r (hereafte r"Application" ) becaus e i t appears tha t Su n Air' s operatin g plan s and , therefore , require d leve l o ffundin g necessar yt o mee t th e Department' s financia l fitnes s criteria , i s significantl ydifferen t fro m tha t outline d t o th e Departmen t i n it s application. ^ I n suppor t o fit s position , SeaPor

t state s th e following : Su n Ai rfile d fo rauthorityt o conduct schedule d passenge roperation s a s a commute rai r carrie ro n Septembe r12 , 201 1 wit h amendment s file d o n Septembe r23 , 201 1 an d Januar y10 , 2012
. Th e operatin g pla n outline d b ySu n Ai ri n th e Applicatio n an d subsequen t amendment s consist s o fa singl e roundtri p betwee n Wes t Pal m Beach , Florid a an d Freeport , Bahamas
. O n Januar y18 , 2012 , however
. Su n Ai rsubmitte d a proposa l t o provid e Essentia l Ai rServic e

^ SeaPor t ha s rea d th e objection s ofVPA ACo
. relatin g t o a non-compet e agreemen t an d ho wlitigatio n cost s coul d impac t pre-operatin g expense s and , therefore , Su n Air' s financia l fitness
. Whil e o n th e surfac e thes e argument s appea rt o have merit , SeaPor t doe s no t have a "do g i n tha t fight " no rd o w e hav e al l th e materia l facts
. Therefore , w e wil l limi t ou rcomment s herei n t o th e chang e i n operatin g pla n of Su n Ai ran d resultan t impact o n fundin g level s neede d t o mee t th e Department' s financia l fitnes s criteria
.Comment s ofSeaPor t Airlines , Inc
. OST-2011-016 9 Pag e 2 (hereafte r"Proposal" ) betwee n Memphi s an d thre e communitie s i n th e southeaster n Unite d States. ^ Th e operatin g pla n i n Su n Air' s Applicatio n i s materiall ydifferen t fro m tha t describe d i n Su n Air' s Proposa l and , a s a direct result , th e fundin g require d o fSu n Ai rt o mee t th e Department' s financia l fitnes s criteri a i s significantl ygreate rtha n i s currentl yreflecte d i n it s Application
. I n th e Department' s "Informatio n Packe t o n Howt o Becom e ACommute rAi rCarrier, " th e Departmen t provide s detaile d informatio n o n determinin g financia l fitnes s which , i n summary , require s th e applican t t o verifytha t i t ha s sufficien t resource s (e.g. , cash , lines-of credit , o rban k

loans ) t o cove ral l o fit s pre-operatin g cost s plu s th e operatin g expense s tha t are reasonabl yprojecte d t o b e incurre d b yth e applican t durin g thre e month s o f"normal " commute r operations
. More specifically , th e Departmen t notes : "Becaus e projecte d expense s durin g th e firs t severa l month s o foperation s d o no t includ e al l cost s tha t wil l b e incurre d durin g a "normal " o raverag e perio d o f operations , th e three-mont h standar d i s calculate d b ydividin g th e applicant' s estimate d tota l firs t yea roperatin g expense s b yfou rI n addition , i fth e applicant' s mos t recen t balanc e shee t show s a negativ e workin g capita l balanc e fo ran y ongoin g operation s (e.g. , ai rtaxi , aircraft leasing , o rfixe d bas e operation) , th e amoun t o ftha t workin g capita l defici t wil l b e considere d a pre-operatin g expens e i n calculatin g th e amoun t o ffund s tha t th e applican t mus t hav e availabl e t o mee t th e financia l fitnes s criteri a fo rth e propose d operations." ^

^ Greenville , M S (Docke t OST-2008-0209) , Muscl e Shoals , A L (Docke t OST-2000-7856) , an d Tupelo , M S (Docke t OST-2009-0305)
. ^ "INFORMATIO N PACKE TO N HOWTO BECOM E ACOMMUTE R AI R CARRIER " prepare d byU S Departmen t of Transportation , Ai rCarrie rFitnes s Division , Ma y2005 , Footnot e #15 , pag e 1 7Comment s o fSeaPor t Airlines , Inc
. OST-2011-016 9 Pag e 3 I n Su n Air' s mos t recen t amendmen t t o it s Application , th e compan ystate s tha t a s of Novembe r14 , 2011 , i t ha d $52,277.2 1 i n it s checkin g accoun t an d acces s t o a $100,00 0 lin e of credi t fo ra tota l of$152,277.2 1 i n availabl e capital
. Thi s amoun t ma yb e sufficien t t o mee t th e Department' s financia l fitnes s criteri a base d o n th e operatin g pla n tha t Su n Ai rdescribe d i n it s Application
. Th e operatin g pla n provide d i n Su n Air' s Application , however , i s materiall ydifferen t fro m th e operatin g pla n i n Su n Air' s EAS Proposa l and , therefore , th e amoun t o ffund s require d fo rSu n Ai rt o mee t th e Department' s financia l fitnes s criteri a are significantl ygreater." * More specifically
. Su n Ai rfile d a Proposa l t o provid e Essentia l Ai rServic e at Greenvill e an d Tupelo , Mississipp i an d Muscl e Shoals , Alabam a o n Januar y18 , 2012
. Th e variou s schedul e option s i n tha t Proposa l bea rn o resemblanc e t o th e operatin g pla n tha t Su n Ai r outline d i n it s Applicatio n fo rcommute rai rcarrie rauthority
. More importantly , however , th e greate rscop e o fth e EAS operation s outline d i n th e Proposa l mean s tha t fo rSu n Ai rt o mee t th e Department' s financia l fitnes s criteri a i t wil l requir e highe rlevel s offundin g tha n i t has demonstrate d i n it s Application
. Tabl e 1 (next page ) compare s th e leve l o ffundin g neede d t o mee t th e Department' s financia l fitnes s criteri a fo rbot h th e operatin g pla n outline d i n Su n Air' s Applicatio n an d th e schedul e option s i n Su n Air' s EAS Proposal
. Th e projection s ofannualize d operatin g expense s wer e take n directl yfro m Su n Air' s Applicatio n an d Proposa l a s file d wit h th e Department , an d the n divid e b

yfou ri n accordanc e wit h th e Department' s ow n norma l practice s t o determin e th e financia l fitnes s requirement
.

" Fo rpurpose s o fthes e comment s w e hav e assume d tha t Su n Ai rstil l intend s t o operat e th e Bahama s servic e describe d i n it s Application , bu t acknowledg e tha t onl ySu n Ai rca n provid e th e Departmen t wit h it s tru e operatin g plan
.Comment s ofSeaPor t Airlines , Inc
. OST-2011-016 9 Pag e 4 Tabl e 1

Capita l Require d t o Mee t DOTFinancia l Fitnes s Criteri a Su n Ai rApplicatio n fo rSchedule d AuthorityvSu n Ai rEAS Proposa l

Wes t Pal m Beac h - Nassa u Su n Ai rProjectlor

vo f Normalize d Annua ! Operatin g Expense s 1/ 4 require d forFinancia l Fitnes s Criteri a Applicatio n fo r Commute rAi rCarrie r
$267,56 4 $66,89 1

Calculate d Total s - AL L I c M o fN<miiizedAnnu ^ Su n Ai rProjecte d Pre Operatin g Expense s $287,65 4 $62,00 0 $267,56 4 $66,89 1

$^512,866
. $62,00 0 $267,K 4 $66,89 1

$8,718,64 1 $62,00 0 $267,56 4 $66,89 1 EAS a t Greenville , M S Sun Ai rProjectio n o f Normalize d Annu d Operatin g Expense s 1/ 4 require d forFinancia l Fitnes s Criteri a EAS a t Muscl e Shoals , A L Su n Air , ft«jection o f Norirfflire d Arifflj ^ Of«h9t1n s B#«ise s 1/ 4 require d forFinancia l Fitnes s Criteri a EAS a t Tupelo , M S 8*AitPrsSecUono f JJdmiiMttMAiwoa t 6pi»!«ir»Exp«tts^ : i 1/ 4 require d forFinancia l Fitnes s Criteri a $ 0

$ 0

$ 0 $2,442,95 3

$610,73 8 $2,489,^ 3 $622,48 1

$578,10 7 $2,883,74 3 $720,93 6 |2.#1.42 4 $620,35 6 $3,088,«1 0 $771,47 8 $2,591,25 4 $647,81 4

$ 0

$605,23 4 $5,279,76 6 $62,00 0 1/ 4 require d forFinancia l Fitnes s Criteri a $128,89 1 $1,878,21 7 $2,179,66 0 $1,319,93 9
A s describe d i n it s Applicatio n an d th e additiona l informatio n provide d at th e Department' s request , th e $152,277.2 1 tha t Su n Ai rcurrentl yha s acces s t o provide s jus t a fractio n ofth e amoun t neede d t o meet th e Department' s financia l fitnes s criteri a i f i t wer e t o b e awarde d som e o ral l ofth e EAS market s i n it s Proposal
. Base d o n th e abov e calculations , th e lowes t amoun t o ffund s tha t Su n Ai rwil l nee d t o mee t th e Department' s financia l fitnes s criteri a i s $706,998

. Thi s assume s tha t Su n Ai ri sComment s ofSeaPor t Airlines , Inc
. OST-2011-016 9 Pag e 5 awarde d th e lowes t cos t optio n i n onl yon e marke t (assume d t o b e Tupel o becaus e i t represent s th e lowes t cos t marke t o n stand-alon e basis ) an d th e planne d Florid a - Bahama s servic e a s describe d i n it s Application
. Th e highes t amoun t offundin g tha t Su n Ai rma ynee d fo rfinancia l fitnes s i s $2,179,660

. Thi s assume s Su n Ai ri s awarde d EAS contract s i n al l thre e o fth e communitie s wit h th e highes t possibl e leve l o ffrequencya s outline d i n its Proposa l an d th e planne d Florid a - Bahama s servic e i n it s Application
. Regardles s o fth e actua l amoun t o ffund s needed
. Su n Ai rdoe s not demonstrat e i n it s Applicatio n tha t i t ha s acces s t o a leve l tha t meet s th e Department' s financia l fitnes s criteri a whe n projecte d operatin g expense s relate d t o it s EA S Proposa l ar e include d i n th e calculations
. Further , i t i s th e vie wo fSeaPor t tha t th e Departmen t i s unabl e t o calculat e th e precis e leve l o ffund s neede d fo rfinancia l fitnes s unti l suc h tim e a s a replacemen t carrie ran d specifi c servic e option s ar e awarde d i n eac h ofth e EAS communitie s byth e Department
. I fSu n Ai r wer e awarde d an yo fth e EAS communities , onl ythe n woul d th e Departmen t b e abl e t o reasonabl yestimat e Su n Air' s firs t yea roperatin g expense s an d determin e th e fundin g leve l neede d t o mee t financia l fitnes s criteria
. Th e Department , however , canno t award Su n Ai ra n EAS contract unti l suc h tim e a s i t ha s th e requisit e authorityt o operat e a s a commute rai r carrier
. Su n Ai rha s pu t th e Departmen t i n a n classi c"chicke n o rth e egg " quandar yand , i n ou r view , th e onl ywayreasonabl e solutio n i s fo rSu n Ai rt o amen d it s applicatio n an d demonstrat e adequat e fundin g tha t accuratel yreflect s a firs t yea roperatin g pla n tha t include s th e EAS market s i n it s Proposal
. Additionally , w e not e tha t a lette rdate d Decembe r29 , 201 1 t o counse l fo rSu n Ai rfro m th e Ai rCarrie rFitnes s Divisio n reminde d Su n Ai rtha t i t "shoul d promptl yprovid e th e Departmen t wit h an yinformatio n regardin g change s i t ma yunderg o i n area s affectin g it s fitnes s (i.e. , management , operatin g plan s o rfinancia l condition , complianc e disposition , o rownership ) whil e it s applicatio n i s unde rrevie wb yth e Department
. " ^ T o ou rknowledge
. Su n Ai rha s ye t t o

* Lette rfro m Laurely n J
. Remo , Chie fofAi rCarrie rFitnes s Divisio n t o Lonni e A
. Pera , counse l fo rSu n Ai rExpress , LC C (Zuckert , Scoutt & Rasenberger , LLP ) o n Decembe r29 , 2011
.Comment s ofSeaPor t Airlines , Inc
. OST-2011-016 9 Pag e 6 updat e wit h th e informatio n presente d i n it s Applicatio n despit e havin g file d it s Proposa l wit h th e Departmen t ove r3 0 days ago . Finally , an d despit e comment s tha t w e expect th e Departmen t wil l receiv e i n response , SeaPor t i s not makin g thi s filin g i n a n attemp t t o suppres s potentia l competitio n fro m Su n Air
. T o th e contrary , w e believ e a robus t competitiv e environmen t i s necessar yt o ensur e tha t consumers have choic e (includin g communitie s selectin g a n EAS carrier) an d tha t competitio n force s al l airline s t o continuall ystriv e fo rservic e improvemen t an d operationa l efficiency
. I n thi s context , w e loo k

forwar d t o challengin g Su n Ai ri n th e marke t place
. Tha t bein g said , ou r concer n i s fo rth e potentia l impact o n EAS communitie s shoul d Su n Ai rb e grante d commute rai r carrie rauthoritya t th e insufficien t fundin g leve l currentl yi n it s Applicatio n an d the n subsequentl ysuspend s flight s fo rfinancia l reason s befor e a replacemen t carrie rca n initiat e service
. Thi s woul d b e a grea t inconvenienc e t o travelers , negativel yimpact th e economie s o f affecte d communities , an d plac e a burde n o n th e replacemen t carrie rt o have t o rebuil d th e market' s traffi cafte ra perio d o fdormancy
. A n extende d servic e interruptio n coul d resul t i n traffi c rebuildin g ver

yslowl yan d pu t th e affecte d communitie s a t ris k o fpermanentl ylosin g thei rEAS eligibility
. Fo rth e foregoin g reasons , SeaPor t respectfull yurge s th e Departmen t t o suspen d furthe r revie wo fSu n Air' s Applicatio n an d tha t Su n Ai rb e require d t o amen d it s Applicatio n t o reflect th e differen t operatin g pla n describe d i n it s EAS Proposal , includin g demonstratin g tha t i t ha s th e fund s neede d t o satisfyth e Department' s financia l fitnes s criteria
. I n th e alternative , SeaPor t urge s th e Departmen t t o exercis e it s abilityt o impos e condition s o n th e operatin g authorityof Su n Air , thu s limitin g th e compan yt o a n operatin g pla n tha t i s appropriat e t o th e leve l o ffundin g describe d i n it s Application. ^

® "INFORMATIO N PACKE TO N HO WTO BECOM E ACOMMUTE R AI R CARRIER " prepare d byU S Departmen t o f Transportation , Ai rCarrie rFitnes s Division , Ma y2005 , pag e 25
. "I n orde rt o ensure tha t a compan yremain s fi t afte ri t i s give n effectiv e auttiority , th e Departmen t mayimpos e condition s o n th e company' s operation s - suc h a s a limi t o n th e duratio n o fth e authority(e.g. , fo ron e year) , o ro n th e number , type , o rsiz e o f aircraf t (e.g. , thos e tha t ca n b e operate d unde rPar

t 13 5 o fth e Federa l Aviatio n Regulations ) tha t th e applican t ma yoperate
. I f a t a late rdate , th e compan ywishe s t o expan d it s operation s beyon d thos e limits , i t woul d nee d t o notif yth e Departmen t an d establis h it s fitnes s t o d o so . Thes e condition s ar e intende d t o enabl e th e Departmen t t o monito rth e carrier' s operation s more closely , particularl ydurin g it s firs t severa l years. "Comment s ofSeaPor t Airlines , Inc
. OST-2011-016 9 Pag e 7 Respectfull ysubmitted , Timoth yF Siebe r Vic e Presiden t - Strateg y& Corporat e Developmen t SEAPOR TAIRLINES , INC
. 750 5 N E Airport Way Portlan d Internationa l Airpor t Portland , Orego n 9721 8 (971)340-171 6 Email : tsieber(%seaportair.co m Februar y23 , 201 2CERTIFICAT E O F SERVIC E

SeaPor t Airlines , Inc
. certifie s tha t a copyofth e foregoin g MOTIO N FO R LEAV E TO FIL E A N OTHERWIS E UNAUTHORIZE D DOCUMEN Tan d COMMENT S O F SEAPOR TAIRLINES , INC
. ha s bee n serve d o n th e partie s name d belo wvi a electroni cmai l an d the n U S Posta l Service
. Ms
. Laura Rem o Chief , Ai rCarrie rFitnes s Division , X-5 6 Offic e o fAviatio n Analysi s U.S
. Departmen t ofTransportatio n 120 0 NewJerse yAvenu e S.E. , 8 * Floo r Washington , D C 2059 0 laura.remo(5jdot.qo v Mr
. Denni s DeVan y Chief , Essentia l Ai rServic e Divisio n Offic e o fAviatio n Analysi s U.S
. Departmen t o fTransportatio n 120 0 NewJerse yAvenu e S.E. , 8' ^ Floo r Washington , D C 2059 0 dennis.devanv(a)dot.aov Mr
. Edward Dasilva Fligh t Standard s District Offic e - 1 7 Federa l Aviatio n Administratio n 289 5 S.W
. 145"

^ Avenu e Suit e 12 0 Miramar , F L 3320 7 edward.m.dasilva(5?faa.qov Mr
. Thoma s L
. Coope r Chie fExecutiv e Office r& Presiden t Su n Ai rExpress , LLC d/b/ a Su n Ai rInternationa l 320 1 Griffi n Road , 4"

^ Floo r For t Lauderdale , F L 3331 2 tlcooper(S)gosunair.co m Lonni e Ann e Pera (Counse l fo rSu n Ai rExpres s LL C d/b/ a Su n Ai rInternational ) 88 8 Sevent h Street , N.W
. Suit e 70 0 Washington , D C 2000 6 lapera(3!zsrlaw.co m Mr
. Davi d M
. Hernande z (Attorne yfo rSilve rAirway s Corp
. f/k/ a VPA ACo. ) Vedde rPric e P.O
. 1401 1 I Stree t NW , Suit e 110 0 Washington , D C 2000 5 dhernandez(gjvedderprice.co m