Exec Air Inc. of Naples 160 13 th Street NW Naples, Florida 34120 239

- 290

- 5668 P h one 239

- 348

- 8871 Fax www.naplesair.net To: 

### Laura Remo Chief, Air Carrier Fitness Division Office of Aviation Analysis Re: application of Exec Air, Inc. of Naples ("Exec Air") filed in Docket DOT

-OST

-2014

-0149 on August 21, 2014. Letter of Questions dated 10/29/2014. I have responded below to each of your questions, Ifeel though that your office is deliberatel y being harsh to my

company in an effort to prevent us from entering this market. As many of the questions posed by

your staff are already answered in the packet sent and seems to be making assumptions of public trading of stock that simply do not apply

. I question as t o why your division is negative toward small aircraft operations conducting scheduled service, I seem to be spending a great deal of time answering the same questions just asked but a different way or explaining operation details that do not apply to a small operation. Or being asked to provide explanation to rules that are not published anywhere that I can find. I do not clime to be perfect and all

- knowing thus I do make errors however I am trying to learn by asking questions

. Li stening to the answers an d I still don’t understand ask again until I do understand. There is more of your staff than there is of mine. This is all your staff does , I have at least 100 other tasks I must be good at as in order to make things happen in addition to learning this st uff

. You and your staff have not been very good with communications (returning Phone calls etc..)

. I asked before for an explanation of how the fitness evaluation is conducted but received no response to that question. What guidelines are used and what methods of evaluation are in place. Is this some kind of industry secret that you are not allowed to explain this? I f so why? I am attaching a corrected balance sheet the date was not updated but information is the same. In come statements for the past three ye ars do you mean P&L statements? Or what? I have enclosed those as well. I have an issue with providing detail company financial information that will be made public knowledge. As it is none of my competition’s business and they would use that inf

ormation to their advantage. As we are not a publicl y traded company a large aggressive company could just come in and take over with the information you are requesting to be submitted. This places the large company at an unfair advantage to me after I have spent the time, effort and cash to put the flights together. I have tried to call your office no less than 5 times today left two massages on your phone and two on Mrs. O’Tool’s phone with no call back from either of you and it is now close of bu siness5 : 0 0 PM EDT on Thursday October 30, 2014. I feel that a lot of the information could have been

cleared up if a phone call had been made to me. Now we must place it in written format and made public. Iam against this and it is complied with under protest. I feel as if you are using the dismissal of the application as a hammer to get me to call off the application and go away using a tone in your letter as if this application has been in the works some time. To the contrary as it was a new application as of July 29, 2014. I assure you, I have no intention of going away . If you want me to let your office alone then educate me so I can conduct the paperwork correctly

and you can approve the application and I will move on to th e business of Operating an air carrier. Your letter reprinted below and answers to items 1 through 8 included. Additional revised sheets as indicated are attached to this summation

. John Swasey Exec Air Inc. of Naples**U.S. Department of**

**Transportation** Office of the Secretary of Transportation 1200 New Jersey Avenue SE Washington DC 20590

October 29, 2014 Mr. John Swasey President Exec Air, Inc. of Naples 160 13 th Street NW Naples, FL 34120 Dear Mr. Swasey: This letter is in reference to the application of Exec Air, Inc. of Naples ("Exec Air") filed in Docket DOT

-OST

-2014

- 0149 on August 21, 2014. We have completed our review of the information Exec Air has filed in support of its request for commuter authority and find several areas where the information is deficient and has revealed the need for additional and/or clarifying information before we can complete processing Exec Air's application. The attached Information Request lists the areas where further and/or clarification information is necessary. I ask that you respond fully to this request within 30 days of the date of this letter. We note that it is not our policy to keep incomplete applications open indefinitely. If we do not receive the information in the time period specified, we intend to dismiss Exec Air's application without prejudice. 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

-0149. As is the Department's practice, further processing of Exec Air's application will be deferred pending receipt of this material. In addition, please remember that Exec Air should promptly pro vide the Department with any information re garding 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 Departmen t.

### 2

If you have any questions regarding this letter, please feel free to contact Katy O'Toole of my staff at (202)

- 366

- 9721 or Catherine.O'Toole@dot.gov

.

Laur . Remo Chief, Air Carrier Fitness Division Office of Aviation Analysis
cc: Docket DOT

- OST

-2014

- 0149 Ms. Helene Porche POI for Exec Air, Inc. Sincerely

## Information Request Exec Air, Inc. of Naples **Please provide the following: 1.**  **The balance**  **sheet Exec**  **Air provided**  **in its**  **application is**  **dated December**  **2007. A**  **copy of**  **Exec Air's**  **balance sheet,**  **current to**  **within 3**  **months of**  **the date**  **of this**  **letter is**  **required. Additionally,**  **p lease**  **provide a**  **forecast balance**  **sheet for**  **the first**  **normal year ending after the initially proposed operations have been incorporated.**  Balance sheet was revised and possibly did not up date when it was submitted it was as of June 2014 Iam sending the upd ated sheet , as for the projected information is contained in attachment 6 pages 6 and 7 that has already been provided to yo u. 2. **A current (within 3 months) income statement for Exec Air.** As Ihave spoken with you about this before, I do not track the income b y month to month as you have asked for hear

. Is this a requirement of the DOT? We are a small company Ido the Accounting at the end of the Year for a Profit and loss report. **3. Income Statements for Exec Air for the**  **past three calendar or fiscal years. Please**  **do not provide U.S. Income Tax statements.**  How does the past three years prove that this company ’s fitness? In addition not sure what format yo u are asking for. Do you just want the Gross revenue reported in a spread sheet, letter, how? What format is considered acceptable? Are you asking for Profit/loss reports? Please be clear. Also i n your evaluation please keep in mind Ihave used the past three ye ars to set up for this scheduled service making, spending f unds in the set up so there will not be a big expense on startup of full scheduled operations. It is already done. **4. A**  **resume for**  **stockholder Tom**  **Parent. Pl**  **ease identify**  **his citizenship**  **and supply**  **compliance history information as required by sections 2 04.3(1), (m), (o), and**  **(p) of our rules.**  My investor is A MD. ( Medical Doctor

- sergin) By profession, he does not have any aviation experience and is onl y a 8% stock holder. Thus is classified as a minor investor with no operational control. He is a US Citi zen. With regard to the 204.3(l),(m),(o), and (p) parts of the rules. **(l)** A list of all actions and outstanding judgments for more than $5,000 against any

relevant corporation, key personnel employed (or to be employed) by any relevant corporation, or person having a substantial interest in any relevant corporation, including the amount of each judgment, the party to whom it is payable, and how long it h as been outstanding. Does not apply to Tom Parent minor investor

. **(m)** The number of actions and outstanding judgments of less than $5,000 against each relevant corporation, key personnel employed (or to be employed) by any relevant corporation, or pers on having a substantial interest in any relevant corporation, and the total amount owed by each on such judgments. Does not apply to Tom Parent minorinvestor. **(o)** A description of the current status of all pending investigations, enforcement actions, and formal complaints filed by the Department, including the FAA, involving the applicant or any relevant corporation, any personnel employed (or to be employed) by any relevant corporation or person having a substantial interest in any relevant corporation, regarding compliance with the Statute or orders, rules, regulations, or requirements issued pursuant to the Statute, and any corrective actions taken. (If an applicant has a compliance history that warrants it, additional information may be required.) Does not apply to Tom Parent minor investor. **(p)** A description of all charges of unfair or deceptive or anticompetitive business practices, or of fraud, felony or antitrust violation, brought against any relevant corporation or person having a substantial interest in any relevant corporation, or member of the key personnel employed (or to be employed) by any relevant corporation in the past 10 years. Such descriptions shall include the disposition or current status of each such proceeding. Does not apply to Tom Parent minor investor. 

### Please address the following questions: **5. Mr. Jeremy Vandersluis' resume indicates he is a contract pilot, a flight instructor,**  **and also**  **a Captain**  **for 3**  **separate airlines.**  **If Exec**  **Air is**  **granted commuter**  **authority, does Mr. Vandersluis intend to remain in these additional positions?** The question I ask is. Do the Rules require him to be exclusive to ExecAir or is this a new DOT rule requiring it and why? My FAA inspectors have not indicated that there is an issue with this , does the DOT have specific regulations that prohibit this and if so where is it published? And if there is enough business to keep him full time Imay require him to be exclusive but that is my division to make. **6. Exec**  **Air's business**  **plan calls**  **for the**  **operation of**  **one aircraft.**  **Operations for**  **scheduled service**  **must continue**  **on schedule**  **even when**  **the aircraft**  **has mechanical**  **problems. What**  **is Exec**  **Air's contingency**  **plan to**  **maintain operations when the**  **aircraft is not operational?** This brings up an interesting question, and I have to ask is the DOT requiring an extra aircraft a t each station for each route operated and if so where is that rule /regulation published and if it is published then why

is it not enforced equall y across all the carriers. You imply that a flight must go on if an aircraft has a mechanical issue , somehow, Are you saying we cannot delay the flight and have the issue fixed and then fl y the flight at a later time ? I see the delayed and even canceled flights for mechanical issues all the time by every carrier in the industry

. Also a s a matter of record ExecAir conducted contract privet routs for over ten years five day s a week multiple stops a day for several bank customers and in that time only had flight cannulations three times due to mechanical issues. We even were able to schedule engine and propeller changes without missing a flight with three exceptions in the same time period. I am confident in our mechanical reliability , we maintain our aircraft with preventive maintains

. Also we do have plans to lease additional aircraft to accommodat e additional flow as the routs grow. But not until they

are needed then we will give notice of this change.**7. A grant of commuter authority also requires the air carrier to file BTS Form 298**  **- C,**  **A Report**  **of Financial**  **and Operating**  **Statistics for**  **Small A** **ircraft Operators,**  **and Schedule**  **T -**  **100, U.S.**  **Air Carrier**  **Traffic and**  **Capacity Data**  **by Nonstop**  **Segment and**  **On -**  **Flight Market.**  **Please describe**  **how Exec**  **Air intends**  **to track**  **this information.**  As Ihave begun reading this decimation Ibelieve there are instructions provided as to what is required to be reported , as well as where and when to file the information. We will figure it out. **8. Exhibit**  **6, page**  **5 of**  **7 (Balance**  **Sheet) states**  **an amount**  **of 250,000**  **"common stock**  **issued major**  **investors" under**  **Stockholder Equity**  **but then**  **also states**  **other information**  **regarding 7,500**  **shares and**  **$150,000 deposit**  **fr om**  **a stock**  **sale. Please**  **clarify the**  **amount of**  **stock issued**  **and outstanding,**  **and if**  **applicable, provide**  **a detailed**  **description, of**  **each class**  **or series**  **of stock**  **issu ed.**  **Such description**  **should include:**  **the number**  **of shares**  **outstanding by**  **class or**  **series, convertibility**  **into other**  **classes or**  **series of**  **stock, representation**  **on the**  **board of**  **directors, voting**  **rights, entitlement**  **to di** **vidend, consequences**  **of failure**  **to pay**  **such dividends, and liquidation preferences.** This cannot be any clearer there are 7500 shares issued total, I sold 8% of the shares to Tom P arent for $ 150,000.00 there is only one class of stock. I am submitting a revised page Exhibit 6 page 5 of 7. To show a clearer picture of this

. the 250,000 was a typo from a previous worksheet. Should be as follows: STOCKHOLDERS' EQUITY Preferred Stock Issued $ 0 Common Stock I ssued major Investors $ 317,492 Common Stock I ssued minor Investors $ 27,608 Per share Asset based Equity Value $ 46

As far as voting rights Mr. Parent has elected to be a non - voting stock holder and has such few shares as to be of no real effect should he elect to exercise his voting privileges. He holds no Board position s and does not want to have any operational control of the company. I have full y disclosed the Risks of owning shares in an air carrier operation and that he may not see a retur

n on investment and may lose his investment if things do not go as planned

. This is a requirement of the US SEC, Mr. Parent meats Regulation D as a suffocated Informed Investor. As far as dividends and whom gets what, and when. I do believe that is between my investor and me, unless the DOT is also getting into the SEC business as well.