U.S. Department of 

Transportation 

Office of the Secretary 

Of Transportation 

March 19, 2015 

Ms. Rebecca B. MacPherson 

c-.. \1· "'L3 "~('\r. ''.'·n 7 0 ,-~ ._,. tJ.J \';;,,\ -

Counsel for Menagerie Enterprises, Inc. 

d/b/a Monarch Air 

Jones Day 

51 Louisiana Ave., N.W. 

Washington, DC 20001 

Dear Ms. MacPherson: 

1200 New Jersey Ave .. S.E. 

Washington, DC 20590 

We have completed our initial review of the application filed by Menagerie Enterprises, Inc. d/b/a 

Monarch Air ("Monarch"), for the determination of its fitness to conduct scheduled passenger air 

transportation as a U.S. commuter air carrier. · 

This review has revealed the need for additional and/or clarifying information before we can complete 

processing of Monarch's application. The.attached Information Request lists the areas where further 

information and/or clarification is necessary. I ask that you respond fully to this request Within 30 days 

of the date of this letter. You may upload your response via the web at www.regulations.gov, or you 

may mail your response to U.S. Department of Transportation Dockets, West Building, Ground Floor, 

(M-30, Room W12-140), 1200 New Jersey Avenue SE, Washington, D.C. 20590. In either case, your 

response should be filed in Docket DOT-OST-2014-0192. 

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

receipt of this material. In addition, please remember that Monarch should promptly provide the 

Department with any information regarding changes it may undergo in areas affecting its fitness (i.e., 

management, operating plans or financial condition, compliance disposition, or ownership) while its 

application is under review by the Department. 

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 Shabu Thomas of my staff at (202) 366-9721 or 

shabu. thomas@dot.gov. 

ynJ. Remo 

, Air Carrier Fitness Division 

. Office of Aviation ~alysis 

cc: Docket DOT-OST-2014-0192 · 

Mr. Cameron Baker 

POI for Menagerie Enterprises, Inc. d/b/a Monarch Air 

Federal Aviation Administration 

·-
·. 

Information Request 

Finances 

In establishing fmancial fitness, the Department typically asks that the applicant have 

available to it resources sufficient to cover all pre-operating costs and any negative 

working capital balance, plus a working capital reserve equal to the operating costs that 

would be incurred in three months of normal commuter operations. If the applicant's 

most recent balance sheet shows a negative working capital balance for the ongoing 

operations, the amount of that working capital deficit will be considered in calculating the 

amount of funds that the applicant must have available to meet the financial fitness 

criteria for the proposed operations. 

Review of Monarch's balance sheet as of August 31, 2014, shows the company having 

current assets of $1,074,995 and current liabilities of $1,495,036, resulting in a negative 

working capital balance of $420,040. Under the Department's standard financial fitness 

criteria, this amount of negative working capital must be added to the amount of capital 

needed by Monarch to establish its fitness. Thus, to satisfy the Department's financial 

fitness criteria, Monarch must demonstrate that it has access to $2,156,407. Based on the 

documents submitted in support of a fitness determination, Monarch does not appear to 

have sufficient funding to meet the Department's financial fitness test. Therefore, we 

request that the applicant submit the following: 

1. A current balance sheet (within 3 months) along with the explanatory 

footnotes. I 

2. A current income statement (for 12 months ending the same date as date of 

balance sheet) along with the explanatory footnotes. 

3. Third-party verification from Monarch's financial institution of any fmancial 

resources available to Monarch to meet the Department's financial fitness test. 

Operations 

The application submitted states that Rise Alpha, LLC ("Rise"), plans to charter air 

transportation from Monarch on behalf of its members, whereas the agreement between 

Rise and Monarch mentions Rise as a ticket agent. Please provide additional detailed 

description on how the "membership club" will operate. 

I Explanatory footnotes should include the companies significant accounting policies, such as for 

depreciation, amortization of intangibles, overhauls, unearned revenues; any liens or 

encumbrances against any of the applicant's or any relevant corporation's assets, any major 

commitments into which the applicant or relevant corporation has entered during the past six 

months, or proposes to enter during the next six months, including a bank or other institutional 

fmancing and private financing; and any liabilities of the applicant or relevant corporation that are 

more than 60 days past due at the time of the application, including the amount and the 

circumstances under which they are past due and will be paid. 
2 

Certification 

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 

1 001, 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 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 fmed or imprisoned not more than five years, or both.