NATIONAL AIRFH::lRT



### .August 9, 

### 2.013

Ms. Brooke Chapman,**A&soei~te** 

### Director Small Community Air ServiceDevelopment Program Office ofAviation Analysis 8th 

### F1oor,.Room WS6.,307 Un,itedStatesDepartment of!llansportation 1200New Jersey Avenue SE Washington, DC 20590 Re; BransonRegional Airport TransportationDevelopment District Application Small Community Air Service .Development .Program Doo;ket

### Ib: DOT-'OSt-2013-0120

Dear Ms. Chapman:
This letter is 

### to raise objections to an.application submitted to the United States Department of Transportation (USDOT) for federalgrant f'unding to support .air service.development efforts at the. private Branson Airport,**]3r~;tn.son~** 

### Missouri.
We feel federal aviation funds should not be grantedtothe Branson Regional Airport Transportation Development District While it is apolitical subc1ivision, it

### works on behalfof the privately owned. Branson.Airp.ort and grant funds w.ould·be used exclusivelyto promote/support a private business.
We have no problem ·with fair compethion as it helps**.ke~ep** 

## au· fares in check, increases .options to the public, and is good for the region's economic gr.owth. We also have no desire that the private, B.rans.on Airportfail even though no federal, state, or local governmental entity askedthat it

### be built. We simply raise a question offairness.
The private BransonAirp.ort has t.outed itselffrom day .one as a completely new business model thatdoes :hotwantor need federal.aviation fun<lingin orderto he sl).ccessfuL They have stated publicly they Wantthe 

### competitive advantage ofnot having to f.ollow the same rules and grant. conditions all public airports must follow to receive federal aviation funding, known as FAA GrantAssurances

.. We understand they have used this advantage to enter into agreemen:ts guaranteeing exclusive rights, diverting airport revenue to pay private shareholders, and to subsidize airline service with airport revenue5 

### all.ofwhich are prohibitedto public .airports under FAA Grant Assurances. However, none ofthis can be readily verified since they are not required to disclose this information as aprivate airport.



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### Page.2 August 

### 9, 2(H

### 3, Ms•.Brooke Chapm:a,n

Additienatly, USDOT should considerthe financial :ability ofthe**appli~a,ntto** 

### follow through With theirproposal given the events efbond paymentdefault and nan-compliance with the purrent terhearance agreemenrthey are operating under, which .expires June 30, 2014. 

### Attached is the latestpublic bondholder notice posted July 1,2013, 

### which states:
"Given the continueddefault status 'Of the Bonds, th.e terms 

## r.f the Indenture an.dBond Documents, the existing andongoingEvents of Default under the Indenture andBond Documents, the Company'spublicly reportedongoingjinanciallosses, the existence and aonttnuatitm. of the F,'orpiS(;trance and'FundingAgrer1ment, the BondTrustee determined tcrnotmake the semi-annual**~nterestpctyment** 

### of apptox.tmtttely $3.

### 4mlllio.n scheduled for July 1, 2013. Given thesesame ts:sues, the Bond Trustee determined (o not make the scheduledsinking fundredemptionpaymrmts vfapproximate/y 

### $2.,0? million scheduled fcJr July 1, 

### 2013., The terms of the Indentureprovide the unpaid interest andprincipal 

### Will retrzain the littl1illty of 

### the Comptany unt.ilpaid "
The privateBransan Airport's applica,tibn for federal a:v.iati.on funds is equivalentto askingthe federal.govel'tll11entfora bailout. Ifa,pproved, it would set up an unfair playing fieldwhereSGf 'Would be severely disadvantaged and couldjeopardizethe significantpublic 

### in:vestmentmadeto devdap the Springfield-Branson NationalAirport into the statefof·the-art facility it

### is today. Thankyou for your ccmsid.eration ofthese comments. Respectfully'Submitted,

Brian C. Wei}er, AAE Director ofA:viatian
Attadunent: Update tobondholders regarding July 2013 

### debt service, defaults a,nd f9rbearance and funding agreement {notice#21). Municipal Securities Rulemaking Bo.ard, Electronic MunicipalMarket Access.{EMMA), website access at: http:/ 

### /emma:rnsrb.org/SecurityView/SecurityD.etai1sARD.aspx?cusip;=.105459AB

# UMEI

UPDATE TO BONDBOLD;ERS 

### REGARDING 

### JULY 2013 DEBT SERVICE, 

### DEFAULTS AND .FQRBEAJMNCE 

### AND FQNDING AGREEMENT 

### tNOTlCE 

### #Zll

THEBRANSON, MISSOURI,, REGIONAL A:IRPORT'TRANSPORTATIONDEVELOPMENT DJSTRICt AJRPORT REVENUE**BOND~** (BRANSON, MlSSOURl AIRPORT PRO.rECl) .SERIES 2:007A AND SEJUJ;S2007B (lBE**''BONDS~)**

*CUSIPS: 105459AA9; 105459AB7, L05459AC5

QMB· Bank. N.A

.. serves as bond trustee ("Bond Trustee1 ') for the holders of the**above~referenced** Bonds pursuant to thatcertain Indenture ofTrust dated as ofJune 1, 2007 (the ''Indenture'') between the Bransoni Missouri Regional Airport TrM$P<}rtation Deveiopment District (tlie**"Is~uer")** at)d the Bon.d. Trustee.

. ObWgations of Bran.son Aitpott, LLC (tb.e "Compat1Y''), and. two wholly,..owned subsjdiaries ofth¢ Company, BKG Branson .AirpOrt, LLC and' BransJ:>n.JetCenter, LLC are a primary source for thepaymentofptincipal, premium, if any, .interest, and other amounts relating to the Bonds. The Bonds are secured by, atnong other things, real and personal property interests held by the Qompany,, including, without limita,.tion, the Qptnpany's leasehold intere$t 

### itt a commercial airport located riear Branson, Missol)ti (thtl ':Airport"). 'I'he. Bonds are 

### also. secured by funds held under 'the Indentur.e with a market value tdtaling approximately $3 million as ofJune 28, 2(}13. TheIndenture and other documents. evidencing the Bonds and/or the Company's obligations associated with the Bonds atedesctibedhetein 

### as the "BondDocm11ents''. 1
UPDATE REGARDING DEFAULT STATUS OF THE BONDS
As Bondholdet;s have heeD informed in. pdor notices, Events ofDefault have occurred under the Bond Docull1ents. Events ofDefault described in prior notices to Bondholders include, without litnitation payment defaults under the Bond Docutnents. Tbose notices further reflect thatj effectiVe**~pril** 12, 2()11., the Company, the Bond Trustee, 

### and vatious affiliates 

### offhe Co1npariy became patties to a Fbrheari;\nce and Funding Agreement (as amended 

## and restaied, the "Forbearance and Funding Aweement").2 The Horbearance and Funding Agreement provides for a forbearanceby the Bond
Capitalized terrns used herein 

### and not otherwise defined shall have the.ri1eanings given s.uch tetrns in the lndenture and, to the extent consistent \\'ith the lndenturej the Forbearanwand Funding 

### Agreement descri\5ed in this notice.
As set£ortl1 in prior notices, the Forbearance and Funding Agreement**was~**most.recently amended by an amenQn:ient'andrestatementeffective Apri122, 2013., The Forbearance and Funding Agreement is available fi:ee of charge from**Electt~onic** Municipal. Market Access Service (www.emma.ftlsrb.org) tthe "EMMA Service'} The Bond Trustee is not responsible for i:he maintenance or accuracy of the EMMA SerVice and makes tlo representations or warranties with.respectthereto.

# -

Trustee in exeFcisi11g remedies under the Bond Documents based on the occurrence an.d/br continuati(}J1.of«I)esigp<}ted D.efa.ults" so long as the (Joropany and certain. affiliates comply With performance milest0nes. and other covenants describ.ed 

## in that instrument That forbearance expiFes on June 

### 30, 2014 unlessterJ.llinated (or**e~e1,1.d;ed)** in accordM,ce with 

### the Forbearance and Fundhtg Agreement, 

### SEMI-ANNUAL PA)!MENT$ tO 

### HOLDERS
As noted above, the Bond Trustee is holding approxhnately $.3 million under the. tettns ofthe Indenture and Bond Docul1J¢nts. Tlrelndet,l.ture provides that 

### after the occurrence ofan Event of Default, the Bond Trustee is required to dete11lline the timing and amounts for**~pplication** 

### of monit'ls held under t11t'l I11de1,1tute 

### l:ll:lving due regard 

### tothe· amount ofhlon¢ys**·available~** and the likelihood ,of**additiOn:aLm~>neys** becoming available for such application. As Bondholders were informed in pfior notices, the Bond Trustee ha$**contin~ed** to**eva1~tat(l'** the status of scheduled. pa}'IDentHo 'aondMlders un<it'lrthe Bond Documents.
Given the continuing default status**.C!fth~ Bond~,**  th«:J terms 

### ohMIndenture and BondDocuments, the existing and ongoing Bvents of Default under the .fudenture and Bond Documents, the Company's publicly reported ongoing financial losses, the existence l:lnd !:Jontinuation of the Forbea:r:ah<:e and Funding Agreement, :the Bond Trustee determined to notmake the semi

..annual interest payment of approxil:n.ately 

### $3.4 million scheduled, for July 

### l.; 2()13. Given these same lssues,th:eBondTru:stee dete.trrtin:ed to n9t makethe seheduted 

### sinking fund redemption payments of appfoxhnately $2.07 mi11ion scheduled for July 1 t 2013. The terms ofthe Indenture**provid~** that unpaid interest and priileipa:l willre.main a**liabilit~t**ofthe Company untilpaid.
The

.Bond Trustee 

### wiU continue to evaluate the status of fitture sohedulecf payments to BOndholders**u~1der** the Bond Documents and intends to 

### issu.e notices to holders ofthe Bonds to the extenl defaults, Events ofDefault or other terms 

### ufthe Bond Documents 

### or**Foibean1ll~** and .Funding Agreement would affect scheduled paym.ents to h6ld.ers. The Bond Trustee has not determined whether the semi-annual payment scheduled for January 2014 will be made.
UNOFFICAL llONQHOLDER. COMMITTEE
As described in pdor not1ees, the Bond Trustee has 

### been in contact with a group of Bon:dh.oldets <:>onsistin:g bfa majority in prindpal amount ofthe .Bonds Outstandil').g. Tb,e Bond T:rustee)s seeking full Bondholder participatl()n in discussions rt:garding t.be matters .described in ·this notice. All BondhOlders afe asked to contact couns.el to the Bond**Trustee~** .orto contactthe Bond Trustee dire<:>tly fodhis purpose as soon as possible at the addr.esses providedbelow. Bondholders that participate .in such discussions couldreceive material**non~public** 1nfortnation that e.o).llclrestrict their 

### ability to trade in the**:Btn~ds:** .RETENTION OF COUNSEL; CONSULTANT
As is reflected .in prior notiCes, the Bond. Trustee has retained**~he** la:w firm ofMiritz, Levin, Cohn, Ferris, CJ}ovsky and.Popeo, P

. 

### .C. 

### and specifically Willia1n: 

### W. Kannel and Ian A Hammel ofthat finn to assist it in .matters relevant to the B·onds. Mr, Kannel's phone number is 617.34tt 166$ and his e

### 2

# '-

mail address is wwkann.el@minw.com. Mr. Hammel's phone. number an.d**em~il** ad'dress are 617**.348~** 1724 and**iahrunmetci{m:int:a.com~** Counsel to th.e Bond Trustee has retained Ricondo and Associates, an aviation .consultin}! firm, in.**coprt~ti<m** witll. mattets relevant to the Bonds and tlle FQtbearanoe anu Funding Agreemen.t. 

### AJ!l)I1'IONALINFO.IJMATION·
The Bond Trustee intends'

### to issue periQdic notices. to holders regarding certain matters relevant to the 

### :Bonds; eondhoidets who wish to receive future notices directly may do so by contacting the Bond TrUstee. Certain information relevant to the Bonds is available from tbe BMMAService; tll.e Bond Tru.stee is not responsible for themaintenance or accuracY oft.ll.eEMMA$ervic:.e, howe:Ver, and makes no representations or warranties wit}l respe¢1 thereto,

.The l:):srbearance 

### .and Funding Agreement, as amende<i, reflects that uppn request, Bondh:olders can obtain monthly financial. repor:ts about the (:qmpany and certain affiliates. Holders should not rely on the Bon<i Trustee as their sole s()urce of information.
Holders With questions regar<iing this notice should direct them in writing to Brian Krippner CCTS, SeuiorVicePresiaent, UMB: Bank, N,A., at 2 South Broadway, Suire.600, St. Louis, Missouri 63102, by email at brian.krippner@umb.cQm or through the Bond Trustee':; counsel as iudentified abo:Ve. The Bond Trustee may conclude thata specific response tb particv)ar inquiries;from indivjdua:l holders is not consistent with equal an.d 

### fuli dissemination ofinfortnatiQn to. all holders. The Bond Trustee makes )10 recommendations a.tJ,d gives.iio inveshnent or tax**advic~.** UMB BANK, N.A., As .BondTnistee
*rbe Bond Trustee is not responsibl!! for the selection or 1:lSe of these CUSIPs. They ate included. solely for bolder convenience.



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