U.S. Department of Transportation Office of the Secretory ofTransportation 

### \Jr. C. Joy Journcay Alaska Air Carriers Association 2301 

### MetTill Field Drive. Suite A-J 

### Anchorage. Alaska 9950 I 

### Dear 1\

### Ir. 

### Journca

### y: Assistant Socrotary

. ; , i_ 

### :-larch t9, 

### 2012 . ,,_· 1200 New Jorsoy Avenuo. SE Washington. DC 20590



### Thank you for your letter concerning the U.S. Department ofTransportalion·

### s (Depat1mclll) citizenship investigation of VIll 

### Cougar Helicopters. Inc
. ( VIH Cougar). On March 12. 2012. the Department issued Order 1012-3-7 tentatively tinding that VIH Cougar is 

### not a 

### U.S. citizen as 

### defined in41} U.S.C.**~** 

### 40102{a)( 15) 

### and proposing to cancel its air taxi Juthority. Interested parties arc provided 21 

### Jays from the date 

### of its issuance to 

### file objections to the 

### Department's tcmativc findings. Access to the docket is available by entering the docket number. DOT-OST-20 12-0022. into the simple search function at 

### the Department's**Do~..:kct** 

### Management System (OMS) wchsitc. which is http://www.regulations.gov. Finally
. since this matter is pending. I am 

### unable to cmnment on the merits of 

### VIH Cougar's submissions. I assure 

### you. howc\'cr. that the Department will give full**~..:onsideration** 

### to all comments on the record in the docket. As is our normal practice. I am 

### placing a 

### copyof 

### your letter and this response in Docket DOT-OST-2012-0022 as a 

### contact outside the record of

### this matter. I 

### appreciate your interest in this proceeding. S

### incercly 

### yours.



### Susan L. 

### Kurland 

### :\ssistJnt SecrctJry for ,\vi;ltion and 

### International Affairs



### · X1-120314-004 '

## ALASKA AIR CARRIERS ASSOCIATION 2301 Merrill Field Drive, Suite A-3 Anchorage, Alaska 99501 

### 907-277-0071 907-277-0072 fax Boardof Directors 2011-2012 Mike Slednuln. Presld6nt

ALASKA SEAPLANES

susan Hoshaw. Vice**P~nt** EVERTSAIRALASKA M8tyHefty. SectetMy

AlASKAAIRLINES DannySeytJeit Trusurer PENAIR JenyRock. PntPresident JANSSEN CONTRACnNG CO

. David8Q((Jer CALEDONIAN INSURANCEGROUP. INC. DallllyDavlrfson DAVIDSONAVIAnON Bob Hojdukovich FRONTIERFlYING SERVICE. INC

. C!r1sMollllews WRIGHT AIRSERVICE MikeMorgan WARBELOWS AIR VENTURES 'MifredRyM

RYANAIR 8tien S8lazBr TAQUANAIR J erryWOfl/ey AIRSURE. INC. Executive

Director C. JoyJOUTIUy

AlASKA AIR

CARRIERS ASSOCIAOON 12 February 20 12

Ms. Susan L Kurland Assistant Secretary ofTransportation for Aviation & International Affairs United States Department ofTransportation 1200 Newjersey Avenue, SE Washington, DC 20590 Via email to susan.kurland@dot.gov; susan.!.kurland@dot.goy; and faac@dot.goy 

### SUBJECT: VIH Cougar Helicopters, Inc./ Foreign Operators in the U.S. Dear Secretary Kurland: Petroleum Helicopters, Inc (PHI) challenged the operations ofVIH Cougar Helicopters, Inc. (VIH Cougar).in the United States (Alaska, the West Coast, and the GulfofMexico). We represent certificated air carriers and concur with the sentiments expressed in this letter. Since 1966 the Alaska Air Carriers Association (AACA) has represented the interests ofaviation businesses in Alaska. Our ISO members own, operate, and service aircraft, providing for the needs ofthe traveling public through scheduled commuter operations, aircraft maintenance, flight tours, on-demand air charters, fuel sales, parts sales, storage, rental, airline servicing, flight training, and emergency medical evacuation. 

### In your October 6, 20II letter to counsel for VIH Cougar Helicopters, Inc, (VIH Cougar) concerningtheir status as a Part 298 Air Taxi Operator you cited "overwhelming evidence" thatVIH Cougaris not in compliance with the requirements ofthe Federal Aviation Act that certificated airline operators be citizens ofthe United States. US air carriers have long maintained and you finally concluded
. that although VIH Cougar theoretically complies with the numerical ownership requirements ofthe statute, it is not under the actual control ofcitizens ofthe United States. You note four reasons, including: • the agency relationship of Mr. Steeper by Mr. Nourie, • the provision oftechnical and operational services and equipment by the VIH Group to VIH Cougar, • contractual relationships among the VIH Group and VIH Cougar, and, • tellingly, information discrepancies provided to the Department. Additionally, VIH Cougar officials have made public statements revealing that company's Canadian ties
. Each one ofthese alone would be grounds for a finding on non-compliance, but together they show a premeditated and willful lack ofcompliance disposition as well as non-citizenship. During the entire period ofthis investigation VIH Cougar has continued to compete unfairly with U.S certificated operators. VIH Cougar has been the beneficiary of its illegal relationship with the VIH Group at the expense of U
.S. companies. Since October 6, 20II, VIH has continued to do business.

Existing to**fo ~ter**  andSllpport a stable commercialm·iation industry founded upon theprinciples**ojsafe~l'.** professionalism (Ilid langet•i(r 

### X1-120314-00412 February 20 12 USDOT. Canadian Operators in the US Page two

While US certificated operators appreciates the Department's very thorough review ofthe allegations against VIH Cougar, we believe that the time has come to stop VIH Cougar's, and otherforeign entities, lengthy history offlaunting the citizenship requirements and competing unfairly against U.S
. citizen operators
.. As the VIH Group remains in control ofVIH Cougar almost three months afterthe 30-day deadline for compliance included in your October 6, 20II letter, we respectfully request that immediate action be taken to bring an end to this illegal situation. We urge the Department to move quickly and openly to end this situation, which has gone on for several years. VIH Cougar should not be allowed to continue to engage in unlawful competition that disadvantages U.S. citizen operators as it delays compliance with U.S. law to maximize its ill-gotten gains. VIH Cougar should not be allowed to continue to operate in the United States unless it has met the requirements ofthe Federal Aviation Act thatcertificated airline operators be citizens ofthe United States. The Department's recent Notice ofProposed Policy Clarification for the Registration of Aircraft to U.S. Citizen Trustees in Situations Involving Non-U.S. Citizen Trustors and Beneficiaries, Federal Register Feb 9, 2012 indicates the serious concern the Department is showingwith regard to assuring close regulatory oversight ofU.S. registered aircraft and operations. Likewise, in this matter, the operator has persistently evaded statutory requirements for actual citizen control. just as the Department is taking action to assure that regulatory oversight on leased US registered aircraft is not avoided through complex ownership instruments, the Department should move to quickly close down VIH Cougar's evasion ofthe statute. We believe that there is no public policy thatcan be served any longer by shielding VIH Cougar's citizenship status from the public. Having made the preliminary findings based on "overwhelming evidence," we respectfully request that the Department bring transparency to any further proceedings in this matter. The Department's informal proceedings may have public policy benefits in enabling operators to arrange their citizenship affairs privately when they are seeking to comply with the law, butthat does not apply in this case. Here, VIH Cougar circumvented the law in a calculated manner and did not merely seek to ascertain the limits ofthe citizenship requirements. Instead, it established, and long operated under, an egregious scheme which violated the citizenship requirements and engaged in deception to do so. As U.S. citizens, we are entitled to transparency and open government in matters of regulatory compliance. Any efforts by the Department to ensure thatVIH Cougardivests and restructures should be open, transparent and public.

# ~ C
.Joyjourneay, Executive Director for J
. Michael Stedman, President Cc: Ray LaHood, Secretary ofTransportation via email to robert.letteney@doc.gov Representative Don Young, via email co scott.leathard@mail.house.gov Senator Lisa Murkowski, via email to warren.wright@murkowsl<i.senate.gov Senator Mark Begich, via email to james feldman@begich.senate.gov Governor Sean Parnell, via email to randall.ruaro@alaska.gQY; russ.kelly@alaska
.gov



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