BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Application of 

AERODYNAMICS INCORPORATED 

for a Certificate of Public Convenience 

and Necessity pursuant to 49 USC§ 41102 

to engage in Scheduled Interstate Air 

Transportation of Persons, Property and Mail 

Docket DOT-OST-2014-0114 

SUPPLEMENT NO. 4 TO 

APPLICATION OF AERODYNAMICS INCORPORATED 

FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY 

Communications with respect to this document should be addressed to: 

November 3, 2014 

Aaron A. Goerlich 

Jason E. Maddux 

Garofalo Goerlich Hainbach PC 

1200 New Hampshire Avenue, N.W. 

Suite 590 

Washington, D.C. 20036-6802 

202-776-3974 

agoerlich@ggh-airlaw.com 

jmaddux@ggh-airlaw.com 

Counsel for Aerodynamics Incorporated 
Application of 

BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

AERODYNAMICS INCORPORATED Docket DOT -OST -2014-0114 

for a Certificate of Public Convenience 

and Necessity pursuant to 49 USC § 41102 

to engage in Scheduled Interstate Air 

Transportation of Persons, Property and Mail 

SUPPLEMENT NO. 4 TO 

APPLICATION OF AERODYNAMICS INCORPORATED 

FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY 

Aerodynamics Incorporated (ADI) hereby supplements its application dated June 25, 

2014. This fourth supplement provides updated information regarding the route to be served 

by ADI upon its inauguration of scheduled service at the Youngstown-Warren Regional 

Airport (YNG), including a detailed cost projection for the first year of service. In addition, 

this supplement provides information on a new $1 million financial resource available to AD I. 

YNG-ORD 

The primary purpose of ADI's initial pattern of scheduled service is to link YNG with 

a major carrier's hub, providing passengers convenient access to the broad domestic and 

international air transportation system. When ADI's application was filed in June, ADI 

anticipated that hub would be Detroit, Michigan (DTW). In the ensuing months, however, it 

has become apparent that a link between YNG and Chicago O'Hare International Airport 

(ORD) is a superior alternative. This is due in significant part to an inability to utilize the 

Delta Airlines terminal at DTW, meaning ADI passengers would have tore-clear security at 
DTW when making connections to or from the airport's hub carrier. This complication will 

not exist at ORD-which, coincidentally, is home to two major carrier hubs, providing 

broader competitive alternatives for YNG passengers. 

Appended to this supplement is a detailed cost projection for the first year of YNGORD service. For the Department's convenience, the projection is formatted identically to 

ADI's previously submitted YNG-DTW projection. The increased distance between YNG 

and ORD, versus YNG-DTW, results in a 35o/o increase in block hours and, therefore, 

increased fuel expense. 1 That increase, however, is largely offset by certain economies of 

scale AD I has achieved over the past four months. 

In Attachment N to ADI's June 25 application, ADI noted that it expected to expand 

its fleet from three to five EMB-145 regional jets in the near future. All five of these aircraft 

were previously operated by a single U.S. regional airline, and three of them are leased 

directly from that carrier or its parent. In the course of the most recent lease negotiations, 

whereby ADI's fleet was expanded to five aircraft, ADI was able to negotiate participation in 

cooperative arrangements with the regional-carrier lessor that reduce AD I' s costs significantly 

in several areas. This includes aircraft lease costs, aircraft reserve and maintenance costs, 

crew training costs, and insurance expense. The attached projection reflects these reductions 

as they apply in the context of the YNG-ORD route. In addition, because AD I' s turnaround 

times at ORD will be far shorter than at DTW-the inefficiencies involved in using an 

inconvenient terminal at DTW are now moot-ADI does not need to allocate as many 

crewmembers to the flights as was previously the case, resulting in reductions in crew-salary 

and related crew expenses for the YNG-ORD route. 

The projected fuel expense increase is closer to 80%, due to the combined effects of 

increased block hours (including conservative assumptions regarding taxi times at ORD), 

greater fuel consumption while climbing to the higher cruise altitudes used for longer stage 

lengths, and higher fuel prices at ORD. 
The net effect is an increase of $91 ,014, or 2.2%, in projected YNG-ORD first year 

expenses versus the YNG-DTW projection. And, as noted, service to ORD will provide YNG 

passengers more numerous and more convenient connecting opportunities than at DTW. 

Financial Resources 

Appended to this supplement is an October 31 firm commitment from Five Points 

Bank, a Nebraska-based financial institution, to provide ADI a $1,000,000 line of credit for a 

term of one year. This resource is in addition to, not in replacement of, ADI's other financial 

resources described in its application and previous supplements. 

The amount of this additional line of credit more than offsets the loss experienced by 

ADI during the second quarter of 2014. In the latter regard, ADI wishes to point out that its 

financial results for the first and fourth calendar quarters are generally superior to the second 

and third quarters. That is because the fourth and frrst quarters coincide with the collegiate 

basketball season, and ADI, whose regional jet aircraft are ideally sized for transporting 

basketball teams and their related personnel and equipment, operates numerous charters for 

NCAA basketball programs. ADI has a large number of these flights under contract for the 

2014-15 season which begins this month. 

A final word about financial resources: As shown in ADI's application and previous 

supplements, ADI is assured a 5% profit margin on its YNG service under a $1.2 million 

revenue guarantee provided by the Youngstown Parties. To ADI's knowledge, no previous 

certificate applicant has presented the Department evidence of a guaranteed profit on its initial 

scheduled route. Such assurance is unheard of in the context of certificate applications, which 

ordinarily involve a significant commercial risk on the part of the applicant. By virtue of the 

revenue guarantee, ADI's initial pattern of scheduled service will be essentially risk-free. 

* * * 
WHEREFORE, ADI renews its request that the Department issue to Aerodynamics 

Incorporated a certificate of public convenience and necessity to engage in scheduled 

interstate air transportation of persons, property and mail. ADI also renews its request that the 

Department complete its processes in this matter as expeditiously as possible. 

Respectfully submitted, 

~d.~vL_ 

bG:r;i~ Jason E. Madduxch / 

Garofalo Goerlich Hainbach PC 

Counsel for Aerodynamics Incorporated 

November 3, 2014 
YOUNGSTOWN (YNG) OPERATIONS PROJECTION TO ORO 

1 11 HOURS 11 PR£.QPS 1 DEaMaolt 1 -..- 1 AEIRUARY 1 MAROt 1 -. 1 MAY 1 JUNO 1 JULY 1 Slm-R 1 

5 lii+rii· S I 

Estimlted flla'lt HOUno 

Added Ait;ht Hours: 

• 

__ 

I ll ..., I I! ... : .. 

I 

! 

I I 

I 

; 

7 

I 

I 

) 

l 

! 

l l 

25 . 

6 

7 

a 

9 

30 ) 

I 

! 

I I 

3 

34 

Alr<nft-Caoto!GoodsSold 

LContJ'octed- CNw- Crew Salaries 2ea PIC 2ea SIC 2ea FA 

CrewTal<esandBenefits 

Crew Per Diem 

Flight Attendant· Part Time 

--

AirCRftleaseExpense 

A;rcraftFuelExpense 

Aircraft Handlino at ORO YNG 

Delcinr boo""' 

AirPort Ron! at YNG ORO 

GallevSuoolles 

DetallandO.anlno 

Alraaft Hun Uabllkv Premiums Su-ResetVation $12.00 

CAMP Maintenance 

MalntenonoeEnllineRe.se!W$lTota1Care 

C-oteck Reserves Monthtv Flat Rate 

Paru Prooram • All oaru 

Landlnt: Gear Reserves 1:1 Ratio 

Ufe Umited Parts UP Reserves 1:1 Ratto 

APUReserves 1:1Ratlo 

Hourly Scheduled/Unscheduled Rosetve• 

$ 

$ 

I 5 

15 

IS 

$ 

$ 

$ 

$ $ 

$ 

i 

u 

$ 

$ 

$ $ 

IS 

15 

$ 

Anllual 

275000 I 5 22917 5 22 917 I 5 22917 

65000 15 5417 $ 5417 IS 5417 

19% $ 5242 IS 5242 I$ 5242 $ 

32500 s 15 2708 $ 2708 

150 IS IS 4500 $ 4500 $ 

$ 15 $ $ 

20000 '5 $ 20000 $ 20000 1$ 

1013 15 $ 128 492 $ 128492 I S 

927 $ $ 38 999 $ 38 999 $ 

700 $ IS 19,700 I 5 23 505 IS 

12000 $ $ 12000 IS 12000 IS 

22 $ 1944 IS 1944 $ 

15000 $ 1250 $ 1250 $ 1,250 $ 

86000 7167 7167 7167 IS 

$ 19,556 $ 211461$ 

125.00 $ 125.00 L1_ us.oo I$ 

750 I 5 750 L1_ 750 LJ 

250 $ $ 22088 s 22,088 $ 

5000 Lj _$_ 5000 $ 5000 $ 

185 $ $ 16345 $ 16345 $ 

2500 $ 2500 $ 2500 IS 

78 $ _$_ 6,575 $ 6575 $ 

25 I S $ 2 09 $ 2209 

75 $ $ 6.626 $ 6,626 $ 

1 .. -· 1&.-

22 917 2 917 $ 22917 I 5 22917 s 22917 IS 22917 IS 22917 s 2 917 $ 

5417 5417 s 5417 $ 5U7 $ 5417 IS 5411 Is 5411 Is 5417 $ 5242 5242 $ 5,242 IS 5242 s 5242 $ 5,242 Is 5,242 Is s,242 Is 

2708 2708 $ 2708 I 5 2 708 2 708 $ 2708 Is 27081$ 27081$ 

4500 4500 s 4500 I 5 4500 $ 4500 Is 4.500 $ 4.500 I$ 4500 $ 

s Is $ Is $ I$ I$ 

20000 's 20000 s 20000 I 5 2000015 20000 $ 20.000 Is 20000 Is 20000 $ 

128492 $ 128492 5 128492 I 5 128492 $ 128492 IS 128492 $ 128492 I$ 128492 $ 

38,999 $ 38,999 s 38,999 $ 38999 $ 38999 $ 38,999 $ 38999 $ 38 999 $ 

21785 $ 6,853 2213 $ $ Is s IS 

12000 $ 12000 12000 $ 12000 I 5 12000 $ 12000 s 12000 IS 12000 $ 

1944 $ 1944 1944 $ 1944 $ 1944 I 5 1944 $ 944 $ 1944 $ 1250 1250 $ 1,250 5 1250 IS 1,250 IS 1,250 '5 1,250 Is 1250 Is 

7167 7167 7167 I 5 7167 $ 7167 I 5 7167 $ 7167 i 5 7167 $ 

!.892 I 5 24 7!10 $ 26m s 21.1961$ 31068 $ 33.275 I 5 35.4112 $ 37654 IS 

125.00 1_$_ 125.00 Lt 125-00 125.00 IS US.OO IS 125.00 I 5 125.00 IS 12S.OO IS 

750 I 5 750 IS 750 IS 750 IS 750 IS 750 IS 750 s 750 IS 

22088 $ 22,088 $ 22,088 $ 22088 $ 22,088 $ 22,088 $ 22,088 $ 22088 $ 

5,000 i 5000 $ 5.000 5000 $ 5000 $ 5000 $ 5000 s 5000 $ 

16345 $ 16345 I 5 16345 $ 16345 s 16345 16345 $ 16345 $ 16345 $ 

2 500 2 500 IS 2 500 2.500 $ 2500 $ 2500 s 2500 s 2 500 $ 

6,575 6575 $ 6575 $ 6.575 IS 6575 6.575 6575 $ 6,575 s 

2 209 2209 $ 2209 2209 IS 2209 $ 2209 2209 $ 2209 5 

6,626 $ 6,626 s 6,626 $ 6,626 s 6626 $ 6626 $ 6626 $ 6,626 $ 

I 1$ ____ ----.a!:iiOJ If ... Is U!D11S p1S nplS &•II lUIIGIS !L1!!1S &PlS »ell &nlll •UIIll 

35-..lnaEx ...,..,.. 0.0% I I $ 

I Airv.rtOrr:tftJirKOIM{Iont I Is u2059lii i44Ji W!lii #IS !UI!Jt p¥11 umlt tlmli 11,!lJis 1£+1S #ill$ well 

tlfQlg 

1 fstlmat.odblod<hourspndiatedonlOroundllfpfll&loUpo<-botweenY-ownondO>IaiDO'HareAirport(ORD) 

2 Estlmoted fli&llt holn on 10 r<MI<IIrlpftlchb po<- between Younpii>Wn and a._ 

J NctAppllcoble 

4 Not applicable 

5 Thetalal ftilht holn pr-ajo<Wd lor eadl month are used to calaolote dined operotl"' COSb In INs projtctlon 

6 

7 Notappilable 

8 Pnljectod revonuo from tidc<t .. les_ Estimated fires wlll...,.te $100 H<h-induslve of-. and t .... Lood fadon uslnC demand data from various sources. 

9 The You..,._.. Parties'- pnMcled Am>dynamlcs a........., ..,.,-.e assurin1 Allla Sl' profit marcln. 

10 Projeded and other andllaryfeeJ. 

11 Cllwsalary estlmoled n..-Gtcrewmeborstooporatethe proJected shcedule. 

12 A tun Ume malntenanoe technldan Is plonned to be based with the alr<nft In You..,._.. to emure the best dlspatd! relalbllny and.., time po<f""""""' 

13 14 n-..- proj«todto-annual recu,....tni'*'C,LOFTewnt>, tnwland -oa:omodatlons roqulredlorthetntrl"' ewnts. 

15 &chfiWYiaow momberls pold $SO per day lor muland other._..... on dilly days. 

16 Not applicable 17 Thblsthe..-!llyaln:roftlease._,seandftxedoosts-edwlthtllei'JiG.I>asedalrcroft. 

lBFuellnr-lspro)ectedtolndudoftlahtpllnnedluolbumforeadlfllchtsecmenttimesthenumborotftllhtsqmentslortllemonltlattheprojectodiVOBiepur<haseprkepe<l>llon. 

19 The hordlrw casu are proJected based on QUOtotions ro<ellled from served olrporu and include an labor to soMa! pa,_rs and baaase plus undor-wln& seM<es, e•cludl..,luol. 

20 Alr<rafl doidiW -Is proj«tod on tile -lorocuted delde enniS times tile apecteda>St po< ewnt lor mont11s of OctoberthrOI.Wh April. 21 Airport rent lndudos tldcet counter space, pte space and all other airport rent cha'les as estimated. 22 

23 Alnnft deonln&and detallifllls lor w.ldy and monthly deep cleanlfl( and-washes and Interior deep deanlfl(. 24 AWaaft hl.it and lllblllty premiums are calwlated at current rates times projt'cted usaee. 25 26 The Jew-sen and Nlvfption Wrt expense Is projt!d:ed twed on routing and current corporate costs. 27 CAMPMalnlenln<eeosbo,.,lorthea>mpoteriledalrual\malnlena.-.,...,.m paid on an OMUIIseM<etoa third party. 

28 Profe<Ud....,. '-""' po<the llrtraft lease •rcementttmes tile projc<ted ,...- ofhoursftowneadl month. 

291'nljectodCChed<._.....,.nsebasedontlleroqulrodmonthlyruorvepaldtothew-. 

30 ProjecWdPirts re:seNe expense based on the required monthfyresei'W! p1ktto the Lessor. 311'nljectodlandlfl( ____ ""therequR<Imonthly-poldtothelessoo 

32 Profe<Ud Ule Urnlled '-(W') reoerw ...,....., bncdm the required monthly resone pold to the Lessor. 

33 APU resefW eJCperue ba5ed on the required monthly paid to the lessor. 34 molntenonoeexpensesanllclpatodand notc:owred by the, • ....., 01pensesoriUitlme mechanic. 

35 Theno ii iiOantidpatedAOI__,......,_.,thernarbtlnc_ls......,...bytheY-nPartles lndudlfll ln-klnd-. 

36 Theb .. o --kforthededlcoted ptojoct rnanacersupervlsl..,this route and opentlon. 

J7 TIMs._...aMnthe-ateGenerai&Admlnlstra!M!COII>astoelotAidwtth!Nsrwte. Natethallnackllllon totheGaA,.........e allocatlon, AOihas allocatod speclflc: COII>suchasBose _..., as Mparato llneltom_...... 
FIVE POINTS BANK 

MBveERFDIC 

----------P.O. Box909 • Kearney, NE68848-0909 • 308-234-6171----------

October 31, 2014 

Scott A. Beale 

Chief Executive Officer 

Aerodynamics rncorporated 

25700 Science Park Drive Suite 210 

Beachwood, OH 44122 

Dear Mr. Beale: 

Thank you for signing the Commitment for Commercial Financing this same date. 

I will begin the process of preparing the documents associated with this lending and deposit relationship 

early next week with the goal of having everything in place within the next 10 business days, if not sooner. 

I will be tn touch early next week. 

I look forward to working with you. 

Sincerely, 

Tim Mannlein 

Senior Vice President 

Five Points Bank 
FIRM COMMITMENT FOR COMMERCIAL FINANCING 

Submitted to: Aerodynamics Incorporated 

Submitted by: Five Points Bank (Lender) 

Borrower: 

Amount: 

Purposeffype: 

Term: 

Interest Rate: 

Fee(s): 

Collateral: 

Repayment: 

Firm Commitment for 

Commercial Financing 

Provided by Five Points Bank 

Aerodynamics Incorporated 

$1,000,000 

Operating Line of Credit 

One Year 

Fixed rate of 2.35o/o (Five Points Bank twelve month CD rate plus 2.0%) 

.50% ($5,000) due at closing plus all legal and filing fees 

Assignment of deposit account to be established with Five Points Bank 

Monthly interest payments with all principal and interest payments due at 

maturity. 

Financial Reporting: Accountant prepared quarterly compiled financial reports on Aviation 

Capital Partners, LLC and Subsidiary to be provided within 30 days of 

each calendar quarter. 

General Provisions: Bank shall be provided with sufficient legal documentation on 

Aerodynamics Incorporated and Affiliates (Articles of Incorporations, ByLaws, Borrowing Resolutions, Tax ID#'s, and evidence of Corporate 

Good Standings) 

This commitment is subject to the bank being provided with whatever other documentation or 

information may be reasonably deemed necessary by bank in order to completely and 

comprehensively monitor and document this credit. 

This commitment will expire if not accepted in writing before November 10,2014. By affixing 

of the signature below, I acknowledge acceptance and understanding of the terms and conditions 

of the commitment outlined. 

A CREDIT AGREEMENT MUST BE IN WRITING TO BE ENFORCEABLE UNDER NEBRASKA LAW. TO PROTECT YOU AND US 

FROM ANY MISUNDERSTANDINGS OR DISAPPOINTMENTS, ANY CONTRACT, PROMISE, UNDERTAKING, OR OFFER TO 

FOREBEAR REPAYMENT OF MONEY OR TO MAKE ANY OTHER FINANCIAL ACCOMMODATIONS IN CONNECTION WITH THIS 

LOAN OF MONEY OR GRANT OR EXTENSION OF CREDIT, OR ANY AMENDMENT OF, CANCELLATION OF, WAIVER OF, OR 

SUBSTITUTION FOR ANY OR ALL OF THE TERMS OR PROVISIONS OF ANY INSTRUMENT OR DOCUMENT EXECUTED IN 

CONNECTION WITH THIS LOAN OF MONEY OR GRANT OR EXTENSION OF CREDIT MUST BE IN WRITING TO BE EFFECTIVE. 
CERTIFICATION 

Pursuant to title 18 United States Code section 1001, I, Scott A. Beale, in my individual 

capacity and as the authorized representative of Aerodynamics Incorporated, 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 nor more than $10,000 or imprisoned not more than five years, or 

both. 

/"Scott A. Beale, Chief Executive Officer 

Aerodynamics Incorporated 

Dated: November 3, 2014 
CERTIFICATE OF SERVICE 

I hereby certify that a copy of the foregoing supplement, including all attachments, has been 

provided by email on November 3, 2014, to each of the following persons: 

FAA Flight Standards District Office - Atlanta 

Attn: Bruce Clamp, POI 

107 Charles Grant Parkway, Suite 301 

Hapeville, Georgia 30354 

alton. c/amp@faa.gov 

Dan Dickten, A.A.E. 

Executive Director of Aviation 

Youngstown-Warren Regional Airport 

1453 Youngstown-Kingsville Road NE 

Vienna, Ohio 444 73 

ddickten@yngairport. com 

RosemarieS. Andolino, Commissioner 

Chicago Department of Aviation 

121 North LaSalle Street 

Chicago, Illinois 60602 

rosemarie. andolino@cityofchicago. org 

Michael Koester