BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

_______________________________________________ 

 ) 

Joint Application of ) 

 ) 

GULFSTREAM INTERNATIONAL GROUP, INC., ) 

and ) Docket OST-2011- 0061

VPAA Co. )

 ) 

For transfer of commuter air carrier authority under ) 

49 U.S.C. § 41738 ) 

_______________________________________________ ) 

EXPEDITED ACTION REQUESTED BY APRIL 29, 2011 

SUPPLEMENT NO. 2 TO JOINT APPLICATION OF 

GULFSTREAM INTERNATIONAL GROUP, INC., AND VPAA CO. 

FOR TRANSFER OF COMMUTER AIR CARRIER AUTHORITY

Communications with respect to this document should be served upon: 

For VPAA Co.

David M. Hernandez 

Shareholder 

VEDDER PRICE P.C. 

1401 I Street NW, Suite 1100 

Washington, DC 20005 

(202) 312-3340 

dhernandez@vedderprice.com 

For Gulfstream International Group, Inc.

David F. Hackett 

President and Chief Executive Officer 

GULFSTREAM INTERNATIONAL 

GROUP, INC. 

3201 Griffin Road 4th Floor 

Fort Lauderdale, FL 33312 

(954) 985-1500 

dhacke@gulfstreamair.com 

 

April 28, 2011 
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

_______________________________________________ 

 ) 

Joint Application of ) 

 ) 

GULFSTREAM INTERNATIONAL GROUP, INC., ) 

and ) Docket OST-2011-0061

VPAA Co. ) 

 )

For transfer of commuter air carrier authority under ) 

49 U.S.C. § 41738 ) 

 ) 

________________________________________________) 

EXPEDITED ACTION REQUESTED BY APRIL 29, 2011 

SUPPLEMENT NO. 2 TO JOINT APPLICATION OF 

GULFSTREAM INTERNATIONAL GROUP, INC., AND VPAA CO. 

FOR TRANSFER OF COMMUTER AIR CARRIER AUTHORITY

 Gulfstream International Group (“GIA or the “Company”), and VPAA Co. (“VPAA” 

or “New GIA”) (collectively, the “Parties”) hereby submit in response to the Department’s 

Information Request dated April 28, 2011 (the “Information Request”) regarding Joint 

Application of Gulfstream International Group, Inc. and VPAA Co. for Transfer of 

Commuter Air Carrier Authority (the “Joint Application”): 

1. Pursuant to the Escrow Agreement, the escrowed funds will be released upon 

VPAA Co.’s receipt of all necessary regulatory approvals from the FAA and DOT. 

2. The line item “Receivables due from Affiliated Parties” represents certain 

management and performance fees due to Victory Park Capital Advisors, LLC from the 

investors in the funds for which it acts as investment manager. The Affiliated Parties are the 

investors in the funds managed by Victory Park Capital Advisors, LLC. 
Supplement No. 2 to Joint Application 

Page 2 

3. Attached please find a copy of bank statements for Fund I and Fund II, 

illustrating a balance of approximately $27.5 million. (Exhibit A.) In addition, $18.7 

million is currently deposited in an Escrow Account. (Exhibit B.) Moreover, additional 

capital is available pursuant to legally binding commitments from investors in Fund II 

pursuant to their respective subscription documents. Also, attached are final financial 

estimates for the New GIA. (Exhibit C.) 

4. Fund I and Fund II invest in other entities. Fund I and Fund II generally 

invest directly into or purchase distressed private debt and equity of small cap public and 

lower middle market private companies located in the United States. 

WHEREFORE, for the forgoing reasons, the Parties respectfully submit that New 

GIA meets the Department’s citizenship and fitness requirements, and request the 

Department transfer to New GIA the air carrier certificate with commuter authority held by 

GIA. 
Supplement No. 2 to Joint Application 

Page 3 

The contents of this application and the attached exhibits are true and correct to the 

best of my knowledge and belief. Pursuant to Title 18 United States Code Section 1001, I 

Matthew Ray, 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 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 or imprisoned not more than five 

years, or both. 

Respectfully submitted, 

For VPAA Co. 

/S/ Matthew Ray 

______________________________ 

Matthew Ray, Chairman 

VPAA Co. 

227 W. Monroe Street, Suite 3900 

Chicago, IL 60606 

312.701.1777 

mray@vpcadvisors.com 
Supplement No. 2 to Joint Application 

Page 4 

The contents of this application and the attached exhibits are true and correct to the best of 

my knowledge and belief. Pursuant to Title 18 United States Code Section 1001, I, David F. 

Hackett, 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 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 or imprisoned not more than five 

years, or both. 

For Gulfstream International Group, Inc.: 

/S/ David F. Hackett 

________________________________ 

David F. Hackett 

President and Chief Executive Officer 

Gulfstream International Group, Inc. 

3201 Griffin Road 4th Floor 

Fort Lauderdale, FL 33312 

(954) 985-1500 

dhacke@gulfstreamair.com 
CERTIFICATE OF SERVICE 

I, Megan Schreck, hereby certify that I have, this, the 28th day of April 2011, 

caused a true copy of the foregoing Supplemental No. 2 to Joint Application to be served 

on the following Parties via electronic mail: 

Name Organization Address 

Jeffrey Manley United Continental Holdings jeffrey.manley@united.com

Dan Weiss United Continental Holdings dan.weiss@coair.com 

Laura Remo Air Carrier Fitness Division, 

X-56 

laura.remo@dot.gov 

Catherine O’toole Air Carrier Fitness Division, 

X-56 

Catherine.O'toole@dot.gov 

Bernard Stankus Office of Airline 

Information 

DOT/RSPA/BTS E-36

bernard.stankus@dot.gov 

Peter Lynch Asst. Chief Counsel for 

Enforcement, AGC-300 

peter.lynch@faa.gov 

W. Jeff Weber FAA Certification Section 

Manager, AFS-900 

w.jeff.weber@faa.gov 

Rosendo M. Rigau South Florida CMO – 29 rosendo.m.rigau@faa.gov 

Edward M. DaSilva South Florida FSDO – 19 edward.m.dasilva@faa.gov 

 /S/ Megan Schreck 

 

 Megan Schreck 
LIST OF EXHIBITS 

Exhibit Title 

A Bank Statements 

B Escrow Verification 

C Final Operating Forecasts 
EXHIBIT A

See Attached 

Created on: 04/28/2011 12:02 PM Page 2 of 2

Cash Reporting -- Balance Report Business Date: 04/28/2011

Current Day ** Informational Purposes Only **

Bank: JPMorgan Chase Bank, N.A. (IL) Currency: U.S. Dollar

Account Number:

Account Name:

 

VPC FUND II LP

LAST UPDATE: 04:14 NY TIME 04/28/2011

Summary: LEDGER SAME DAY NEXT DAY 2 OR MORE DAYS

OPENING 

CREDITS (1) 

DEBITS (0) 

CURRENT 22,958,409.98 22,958,409.98 0.00 0.00 
EXHIBIT B

See Attached 

EXHIBIT C

See Attached 
New GIA Pre-Operating Costs

Pre-Operating Costs

Total

Gross Aircraft Purchase Price $ 18,700,000

Less: Aircraft Purchase Price Credits (882,000)

Repayment of VPC DIP Loan 3,150,000

Payment to Shelter Island Opportunity Fund 1,825,000

Payment to Unsecured Creditors Committee 600,000

Payment of Professional Fees 250,000

Total $ 23,643,000

Funds currently in Escrow for Aircraft Purchase Price $ 18,700,000

Remaining Pre-Operating Funds Required 4,943,000 $ 

Note: The information contained herein is in draft form and subject to further review and 

change. There are a number of estimates and assumptions underlying the information 

contained herein that are inherently subject to significant legal, economic, competitive and 

operational uncertainties and contingencies beyond our control. There can be no 

assurance that actual results will not vary materially from the projected results presented 

herein. We make no representation or warranty, expressed or implied, as to the accuracy 

or completeness of the information contained herein, and nothing contained herein is, or 

shall be relied upon as, a promise or representation, whether as to the past or the future. 

We expressly disclaim any and all liability for the contents of, or omissions from, the 

information contained herein.
New GIA Year 1 Financials (Part 121 Scheduled Airline Operations)

Year 1 Projected Income Statement

Q1'11 Q2'11 Q3'11 Q4'11 FY'11

Operating Revenue

Passenger revenue 11,588,961 $ 11,396,105 $ 10,019,897 $ 10,044,978 $ 43,049,941 $ 

EAS revenue 1,888,513 4,066,749 5,166,358 5,166,358 16,287,978 

Other operating revenues 592,790 613,336 471,180 462,913 2,140,218 

Total Revenue 14,070,264 $ 16,076,189 $ 15,657,435 $ 15,674,250 $ 61,478,137 $ 

Operating Expenses

Fuel & into-plane 2,996,333 $ 3,081,428 $ 3,282,941 $ 3,250,289 $ 12,610,991 $ 

Flight operations 1,733,795 1,693,187 1,804,083 1,775,909 7,006,974 

Maintenance 4,105,203 3,763,391 3,890,518 3,872,387 15,631,499 

Passenger service 3,314,697 2,955,641 2,997,253 2,980,087 12,247,678 

Promotion & sales 734,529 784,888 757,729 752,494 3,029,639 

General & administrative 629,259 553,459 555,147 554,260 2,292,126 

Total Operating Expenses 13,513,816 $ 12,831,995 $ 13,287,671 $ 13,185,426 $ 52,818,907 $ 

% of revenue 96.0% 79.8% 84.9% 84.1% 85.9%

EBITDA 556,447 $ 3,244,194 $ 2,369,764 $ 2,488,824 $ 8,659,230 $ 

% Margin 4.0% 20.2% 15.1% 15.9% 14.1%

Less: Depreciation & amortization (non-cash) 555,817 711,650 711,650 711,650 2,690,768 

Operating Income 630 $ 2,532,544 $ 1,658,114 $ 1,777,174 $ 5,968,462 $ 

% Margin 0.0% 15.8% 10.6% 11.3% 9.7%

Year 1 Projected Balance Sheet

Q1'11 Q2'11 Q3'11 Q4'11 FY'11

ASSETS:

Cash and cash equivalents 942,624 $ 4,575,971 $ 6,657,664 $ 8,775,170 $ 8,775,170 $ 

Accounts receivable 2,813,964 3,219,042 2,662,801 3,311,476 3,311,476

Expendable parts and fuel 848,071 826,265 578,164 729,591 729,591

Prepaid expenses 930,533 906,607 634,382 800,533 800,533

Total Current Assets $ 9,527,885 5,535,192 $ 10,533,011 $ 13,616,769 $ 13,616,769 $ 

Total Property and Equipment 21,077,183 21,078,033 21,078,882 20,924,232 20,924,232 

Intangible assets 11,778,677 11,778,677 11,778,677 11,778,677 11,778,677

Other assets 1,185,000 1,185,000 1,185,000 1,185,000 1,185,000

Total Assets 39,576,052 $ 43,569,595 $ 44,575,571 $ 47,504,678 $ 47,504,678 $ 

LIABILITIES AND STOCKHOLDERS' EQUITY:

Accounts payable and accrued expenses 8,263,671 $ 9,173,626 $ 8,680,491 $ 9,117,872 $ 9,117,872 $ 

Engine return liability 987,934 962,531 673,514 849,914 849,914

Air traffic liability 730,036 711,265 497,695 628,046 628,046

Deferred tuition revenue 581,327 541,773 350,439 418,268 418,268

Total Current Liabilities $ 11,389,195 10,562,967 $ 10,202,139 $ 11,014,101 $ 11,014,101 $ 

VPC Capital / Stockholders Equity 29,013,085 32,180,400 34,373,432 36,490,577 36,490,577 

Total Liabilities & Stockholders' Equity 39,576,052 $ 43,569,595 $ 44,575,571 $ 47,504,678 $ 47,504,678 $ 

Note: The information contained herein is in draft form and subject to further review and change. There are a number of estimates and 

assumptions underlying the information contained herein that are inherently subject to significant legal, economic, competitive and operational 

uncertainties and contingencies beyond our control. There can be no assurance that actual results will not vary materially from the projected 

results presented herein. We make no representation or warranty, expressed or implied, as to the accuracy or completeness of the information 

contained herein, and nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the future. 

We expressly disclaim any and all liability for the contents of, or omissions from, the information contained herein.