BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

) 

Application of ) 

) 

KaiserAir, Inc. ) 

) 

for a certificate of public convenience and necessity ) 

pursuant to 49 U.S.C. § 41102 to engage in foreign ) 

charter air transportation of persons, property ) 

and mail ) 

) 

Docket OST-2012-0138 

SUBMISSION OF KAISERAIR, INC. 

PURSUANT TO ORDER 2013-5-8 

Communications with respect to this document should be addressed to: 

Mark W. Atwood 

Elizabeth J. Wadsworth 

Cozen O'Connor 

1627 I Street, N.W. 

Washington, D.C. 20006 

(202) 463-2513 

Attorneys for KaiserAir, Inc. 

Dated: May 24, 2013 
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

) 

Application of ) 

) 

KaiserAir, Inc. ) 

) 

for a certificate of public convenience and necessity ) 

pursuant to 49 U.S.C. § 41102 to engage in foreign ) 

charter air transportation of persons, property ) 

and mail ) 

) 

Docket OST-2012-0138 

SUBMISSION OF KAISERAIR, INC. 

PURSUANT TO ORDER 2013-5-8 

KaiserAir, Inc. ("KaiserAir") hereby submits the information and materials 

required by the Department in Order 2013-5-8, in order to make KaiserAir's Certificate 

of Public Convenience and Necessity effective. 

KaiserAir submits as follows: 

1. KaiserAir's relevant Operations Specifications for its foreign operations 

(A001 and A003) are enclosed as Exhibit 1. 

2. A copy of a Certificate of Insurance (Form DOT 6410) evidencing 

coverage meeting the requirements of 14 CFR Section 205 is attached as Exhibit 2. 

3. There have been no changes in KaiserAir's ownership, operating plans, 

financial posture or compliance history since the Show Cause Order was issued in this 

case. In terms of key personnel, Sandy Water, the Vice-President of Business 

Development, retired effective December 31, 2012. He has not been replaced. 
4. The attached current financial information (Exhibits 3 and 4) show that the 

company is in excellent financial condition. As noted in the Order issuing the 

Certificate, KaiserAir has no start-up costs since it already operates the aircraft that will 

be used for its foreign operations. The company, however, will require $779,310 in 

funds to cover the first three months of its first year of foreign operations. KaiserAir 

clearly has access to more than ample resources to cover this amount, as shown by the 

Wells Fargo Bank funds verification letter enclosed as Exhibit 3. 

5. KaiserAir's most recent balance sheets are enclosed as Exhibit 4 and also 

provide proof of the company's continuing financial health. Exhibit 4 contains both a 

current balance sheet for KaiserAir and a consolidated balance sheet for the company 

and its affiliates. KaiserAir's balance sheet shows that as of March 31, 2013, it had 

approximately $11.9 million in total current assets and total current liabilities of 

approximately $4.6 million, leaving the company with a positive working capital of 

approximately $7.3 million. The consolidated balance sheet shows even higher figures, 

with total current assets at $12.9 million, and $5.1 million in total current liabilities, 

leaving a difference of $7.8 million in positive working capital. 

6. Finally, enclosed as Exhibit 5 is the required President's Certification. 

WHEREFORE, KaiserAir requests that the Department make this authority 

effective as quickly as possible upon submission of this information and material. 

2 

LEGALV16591474\1 
Respectfully submitted, 

Mark W. Atwood 

Elizabeth J. Wadsworth 

Cozen O'Connor 

1627 I Street, N.W. 

Washington, D.C. 20006 

(202) 463-2513 

Attorneys for KaiserAir, Inc. 

Dated: May 24, 2013 

3 

LEGAL\16591474\1 
CERTIFICATE OF SERVICE 

I, Elizabeth J. Wadsworth, hereby certify that on this 24th day of May, 2013, I served via 

electronic mail the foregoing Submission of KaiserAir, Inc. on the following person: 

Roger N. Zimmerman 

Principal Operations Inspector 

FAA Oakland FSDO-27 

1420 Harbor Bay Parkway 

Suite 280 

Alameda, California 94502-7083 

roger.n.zimmerman@faa.gov 

Elizabeth J. Wadsworth 
EXHIBIT 1 

Operations Specifications 
Supplemental operations in Common carriage persuant 119,21(a)(3) - 

to Title 14 Code Supplemental (S) 

of Federal 

Regulations 

(CFR) section 

On Demand operations in Common carriage persuant 119.21(a)(5) - 

to Title 14 Code ON DEMAND 

of Federal 

Regulations 

(CFR) section 

and provided, at 

all times, the 

certificate holder 

has appropriate 

written economic 

authority issued 

by the Department 

of Transportation. 

and provided, at 

all times, the 

certificate holder 

has appropriate 

written economic 

authority issued 

by the Department 

of Transportation. 

U S. Department 

of Transportation 

Federal Aviation 

Administration Operations Specifications 

A001 . Issuance and Applicability HQ Control: 05/09/2003 

HQ Revision: 02c 

a. These operations specifications are issued to KaiserAir, Inc., whose principal base of operation 

is located at: 

Primary Business Address: 

8735 Earhart Road, Hanger 4 

Oaldand International Airport 

Oaldand, California 94621 

Mailing Address: 

P.O. Box 2626 

Oakland, California 94614-2626 

The holder of these operations specifications is the holder of Certificate Number COZA942C and 

shall hereafter be referred to as the certificate holder. The certificate holder is authorized to 

conduct: 

The certificate holder shall conduct these kinds of operations in accordance with the specific 

authorizations, limitations, and procedures in these operations specifications and all appropriate Parts 

of the CFR. 

b. These operations specifications arc effective as of the "Date Approval is effective" listed in 

each paragraph and shall remain in effect as long as the certificate holder continues to meet the 

requirements of Part 119 as specified for certification, 

c. 

KaiserAir 

d. The certificate holder is authorized to conduct flights under 14 CFR Part 91 for crewmember 

training, maintenance tests, ferrying, re-positioning, and the carriage of company officials using the 

applicable authorizations in these operations specifications, without obtaining a Letter of 

Authorization, provided the flights are not conducted for compensation or hire and no charge of any 

1MISIMI■•■••■■••■■■••■•■• 

Print Date: 3/1/2011 A001-1 Certificate No.: COZA942C 

KaiserAir, Inc. 
U.S. Department 

of Transportation 

Federal Aviation 

Administration Operations Specifications 

gi2111$41,11b111$ 

kind is made for the conduct of the flights. 

I . The Certificate Holder applies for the Operations in this paragraph. 

2. Support information reference: 

3. These Operations Specifications are approved by direction of the Administrator. 

2(111,10mi i3:3';00 ( 1,1trd 1 inh.: 

I,ocut ion: \A ch01"-;ti 

)i;2ild11,\ 1 -1,\ koL2.,:r murmn, 

Prink:i1\111 Torations Inv,xIor Pr) 

4, Date Approval is effective: 03/01/2011 Amendment Number: 2 

5.1 hereby accept and receive the Operations Specifications in this paragraph. 

Mancebo, David A., Director of Operations 

201 I,0 01 I 123 . 42 C ;mini! ', Utr1cf..n.(1 I ink! 

1 (cdtion: \\ )I , Sc, 

iud 11) I );I\ \ hilicv ho 

1):1\ id \ Liircntot iti iperations 

Date: 0301/2011 

Print Date: 3'1/2011 A001-2 Certificate No.: COZA942C 

KaiserAir, Inc. 
9.2 )(3) Supplementa S) 1FR/VFR 

Type Seeti Ea Route 

Configuration of Fri-A 

- On-Demand 

Type Seetionli9 Operati Class/Category 

Configuration Operation 

,aramcc■i•Mn`nws■■=1.M 

9,21(a) - On-Demand , :''AX and Cargo 

On-Demand ?AX and Cargo 

PAX and Cargo MEL 

TFRNFR 

CE-500-560 

CE-501-501 

FRJVFR 

312/ VTR 

GA- 9-1V 

E1S- 1 A :1 9.21(a 5) - On-Demand 

PAX and Cargo 

PAX and Cargo 

,2121V-FR ay„.Night 

VFR DayfNighi 

ER Route 

ozzazzalanwa 

U.S. Department 

of Transportation 

Federal Aviation 

Administration 

VIZE= 

Operations Specifications 

A003 . AL L Aut.— izat:— HQ Control: 03/10/2011 

HQ Revision: 02h 

a. The certificate holder is authorized to conduct operations under the provisions of Title 14 CFR Part 121 using airplanes with the approved 

configuration and operations described in the following table: 

b. The certificate holder is authorized to conduct operations under the provisions of Title 14 CFR Part 135 using aircraft with the approved 

configuration and operations described in the following table: 

Print Date: 4/18/2012 A003-1 Certificate No.: COZA942C 

KaiserAir, Inc. 
U.S. Department 

of Transportation 

Federal Aviation 

Administration Operations Specifications 

1. The Certificate Holder applies for the Operations in this paragraph. 

2. Support information reference: 

3. These Operations Specifications are approved by direction of the Administrator. 

20 i 2.04.20 08:56:39 Cemral Daylight Time 

1.oeation: WehOPSS 

J)igilalh signed 11‘ Roger N Zimmerman. 

Principal Operations inspector (WPM 

4. Date Approval is effective: 04/18/2012 Amendment Number: 2 

5. I hereby accept and receive the Operations Specifications in this paragraph. 

Mancebo, David A., Director of Operations 

2012.04.1g 10:38:10 Central Da light 'rime 

Location: WehOPSS 

Digitally signed h David Manceho on hehalloi 

Maned:1o. Da ,. id A,. Director of- Operations 

Date: 04/18/2012 

Print Date: 4/18/2012 A003-2 Certificate No.: COZA942C 

KaiserAir, Inc. 
EXHIBIT 2 

Certificate of Insurance 
AGENCY DISPLAY OF ESTIMATED BURDEN 

The public reporting burden for this collection of information is estimated to average 30 minutes per response. If you wish to 

comment on the accuracy of the estimate or make suggestions for reducing this burden, please direct your comments to: U.S. 

Department of Transportation, Office of Aviation Analysis, X-56, 400 7` h St., SW., Washington, D.C. 20590. According to the 

Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless it displays a valid OMB 

control number. 

NOTE: For information on where to file completed copies of this form, see FILING INSTRUCTIONS below. 

'Nffia rig 

Office of the Secretary 

of Transportation 

OMB No. 2106-0030 Expires 2-28-2011 

U.S. AIR CARRIERS - CERTIFICATE OF INSURANCE 

POLICIES OF INSURANCE FOR AIRCRAFT ACCIDENT BODILY INJURY 

AND PROPERTY DAMAGE LIABILITY 

FILING INSTRUCTIONS: File a signed original of this form with the Federal Aviation Administration, AFS-260, 800 Independence Ave., S.W., Washington, 

D.C. 20591, (See EXCEPTIONS 1 and 2 below.) 

EXCEPTION 1: If Block 28 on the reverse Is filled in because the Insured is a commuter air carrier, file a signed original of this form with the Department of 

Transportation, Air Carrier Fitness Division, X-56, 400 7e St., SW, Washington, DC 20590, 

EXCEPTION For any insured that is located in the State of Alaska (regardless as to whether Block 2A, 26, or 20 is filled in), file a signed original of this 

form with the Federal Aviation Administration, Alaskan Region Mg., AAL-230, 222 W. 7 th Ave., #14, Anchorage, Alaska 99513. 

(Please type information, except signatures.) 

THIS CERTIFIES THAT: United. States Aircraft Insurance Group c/o USAU 

(Name of Insurer) 

has issued a policy or policies of Aircraft Liability Insurance to KaiserAir, Inc . 

P.O. Box 2626, Airport Station, Oakland, CA 94614 COZA942C FAA Certificate Number 

(Name, address and FM Certificate number of Insured U.S. Air Carrier) 

effective from 1 2 /3 1/2 0 1 2 until ten (10) days after written notice from the insurer or carrier of the intent 

to terminate coverage is received by the Department of Transportation, 

NOTE: Part 205 of the Department's Regulations does not allow for a predetermined termination date, and a certificate showing such a 

date Is unacceptable. 

1. The Insurer (Check One): 

DI is licensed to issue aircraft insurance policies in the United States; 

CI Is licensed or approved by the government of to issue aircraft insurance policies; or 

El is an approved surplus line Insurer in the State(s) of 

The insurer assumes, under the policy or policies listed below, aircraft accident liability insured to minimums at least equal to 

the following during operation, maintenance, or use of aircraft In "air transportation" as that term is defined In 49 U.S.C. 40102, 

(Complete applicable section(s) A, B, or C below); 

A. U.S. AIR TAXI OPERATORS (EXCLUDING U.S. COMMUTER AIR CARRIERS) WITH PART 298 AUTHORITY ONLY: 

The aircraft covered by this policy are SMALL AIRCRAFT (I,e., with 60 or fewer passenger seats or with a maximum payload 

capacity of 18,000 pounds or less). (Complete separate or combined coverage as appmpriatej: 

CI Separate Coverages: 

Minimum Limit 

Polio No, T •e of Liabilit 

Bodily Injury Liability 

(Excluding Passengers) 

Passenger Bodily Injury 

Each erson Each Occurrence 

$75,000 $300,000 

$75,000 $75,000 x 75% of 

total number of 

passenger seats 

Installed in aircraft 

Property Damage $100,000 

1:1 Combined Coverage: The amount of coverage set forth below is a single limit of liability for each occurrence at least equal to 

the required minimums stated above for bodily injury (excluding passengers), property damage, and passenger bodily Injury. 

Policy No. Amount of Coverage 

D This policy covers CARGO operations only and excludes passenger liability insurance, 

OST Form 6410 
O Separate Coverages: Minimum Limit 

$300,000 $300,000 x 75% of 

total number of 

passenger seats 

installed in aircraft 

C. U.S. CERTIFICATED AIR CARRIERS OPERATING LARGE AIRCRAFT 

The aircraft covered by this policy are LARGE AIRCRAFT (i.e„ with more than 60 passenger seats or with a maximum payload 

capacity of more than 18,000 pounds). (Complete separate or combined coverage as appropriate); 

$300,000 $300,000 x 75% of 

total number of 

passenger seats 

installed in aircraft 

FAA or Foreign Flag 

Registration No, 

Boeing 737-700 N73 7KA 

The policy or policies listed in this certificate insure(s) (Check One): Make and Model 

LI Operations conducted with all aircraft operated by the insured 

0 Operations conducted with the following types of aircraft: 

2 Operations with the following aircraft: (Use additional page if necessary) 

(Date) (Date) 

B. U,S. COMMUTER AIR CARRIERS OR CERTIFICATED AIR CARRIERS OPERATING SMALL AIRCRAFT 

The aircraft covered by this policy are SMALL AIRCRAFT (i,e., with 60 or fewer passenger seats or with a maximum payload 

capacity of 18,000 pounds or less), (Complete separate or combined coverage as appropriate): 

Policy No. Type of Liability Each person Each Occurrence 

Combined Bodily Injury (Excluding Passengers other 

than cargo attendants) and Property Damage Liability 

Passenger Bodily Injury 

$300,000 $2,000,000 

O Combined Coverage: The amount of coverage set forth below is a single limit of liability for each occurrence at least equal to 

the required minimums stated above for bodily injury (excluding passengers), property damage, and passenger bodily Injury, 

Policy No. Amount of Coverage 

O This policy covers CARGO operations only and excludes passenger liability insurance. 

0 Separate Coverages: 

Policy No. Type of Liability 

Combined Bodily Injury (Excluding Passengers other 

than cargo attendants) and Property Damage Liability 

Passenger Bodily Injury 

Minimum Limit 

Each person Each Occurmnce 

$300,000 $20,000,000 

IN Combined Coverage: The amount of coverage st forth below is a single limit of liability for each occurrence at least equal to 

the required minimums stated above for bodily injury (excluding passengers), propedy damage, and passenger bodily injury. 

Policy No, SIIIL1- 7 2 9T Amount of Coverage $600 , 000 , 000 

LI Thls policy covers CARGO operations only and excludes passenger liability Insurance. 

Each policy listed in this certificate meets or exceeds the requirements in 14 CFR Part 205. 

United States Aircraft Insurance Group 

(Name of Insurer) 

15303 Dallas Pkwy, Suite 1370 

(Address) 

Addison, TX 75001 

(City, State, Zip Code) 

Mike Lowman 

Contact (person who can verify the effectiveness of the coverage) 

(Area Code, Phone Number) (Area Code, Fax Number) 

(Signature, If applicable) 

AirSure Limited, LLC 

(Name of Srokor, if applicable) 

25548 Genesee Trail Road 

(Address) 

Golden, CO 80401 

(City, State, zip Code) 

Kerin Dodd 

(Officer or authorized representative) 

(303 ) 526 - 5300 / (303 ) 536 - 5303 

(Area C k z,,.,P one.Numbor p (1-felCode, Fax Number) 

1/'---1 214 

(Signature) 

5/23/2013 
FAHIBIT 3 

Funds Verification Letter 
East Bay Commercial Banking 

555 12' Street, Suite 2150 

Oaldand, CA 94607 

May 21, 2013 

Re: KaiserAir, Inc. 

To whom it may concern: 

KaiserAir, Inc. and related entities and affiliates, colleetively maintain funds and marketable 

securities on deposit or managed by Wells Fargo Bank in excess of $2.6 million as of May 21, 

2013. KaiserAir has been a client of Wells Fargo Bank for more than ten years. 

We consider KaiserAir to be highly credit worthy. 

Please feel free to contact me directly at 510.625.2540 should you have any questions or 

concerns regarding our relationship with KaiserAir, Inc. 

Sincerely, 

Marc Homertgen 

Senior Vice President 

510.625.2540 

Wells Fargo Bank, N.A. 
FAI IIB IT 4 

Balance Sheets 
KaiserAir Consolidated 

Profit/Loss statement 

Jan 2013-Mar 2013 

Revenues $ 6,847,444 

COGS 3,134,496 

Gross Margin 3,712,948 

Operating Expenses 3,652,088 

Net Operating Income 60,860 

Other Income 103,220 

Pre-tax income $ 164,080 

Assets: 

KaiserAir Consolidated 

Balance Sheet @ March 31, 

2013 

KaiserAir (only) 

Balance Sheet @ 

March 31, 2013 

Cash $ 4,591,390 4,123,500 

Accounts Receivables 6,929,213 6,596,428 

Inventory 1,249,352 1,095,561 

Prepaid Expenses 181,383 159,539 

Total Current Assets 12,951,338 11,975,027 

Fixed Assets: 

Equipment (at cost) 13,815,582 4,149,650 

Aircraft 6,697,535 6,697,535 

Amortizable Lease Costs 688,926 270,317 

Accumulated Depreciation (10,204,906) (8,920,558) 

Net Fixed Assets 10,997,137 2,196,944 

Other Assets: 

Santa Rosa Jet Center, LLC 9,773,453 9,326,420 

Deposits % Long Term Securities 587,540 447,033 

Total Assets $ 34,309,467 $ 23,945,425 

Liabilities & Equity: 

Accounts Payables $ 1,847,472 1,442,041 

Advance Payments from Clients 1,635,497 1,622,614 

Reserve for Aircraft Maintenance 892,996 892,996 

Accrued Employment Charges 678,858 650,817 

Income Tax Payable 33,500 33,500 

Total Current Liabilities 5,088,322 4,641,967 

Stockholder's Equity 

Common Stock 18,360 18,360 

Retained Earnings 29,202,785 19,285,098 

Total Stockholder's Equity 29,221,145 19,303,458 

Total Liabilities $ 34,309,467 $ 23,945,425 
EXHIBIT 5 

President's Certification 
CERTIFICATION 

Pursuant to Title 18 United States Code section 1001, I, Ronald J. Guerra, in my 

individual capacity and as the authorized representative of the applicant, have 

not in any manner knowingly and willfully falsified, concealed or covered up 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 not more than $10,000 or imprisoned not more than five years, or 

both. 

Ronald J. Guerra 

President & CEO 

KaiserAir, Inc. 

Date: 5/23/2013