U.S. Department of Transportation Office ofthe Secretary ofTransportation

April 28, 2015 Mr. Samuel Raphael ManagingDirector Aviation PartnersofBoyntonBeach, LLC

d/b/a Hummingbird Air Henry Rohlsen Airport RR1Box 9911 Kings Hill St. Croix, USVI 00850 Re: DocketDOT-OST-2014-0116 

### ?0**~.** 

### "). ,-**~·** ; .i 1200 NewJerseyAvenue SE Washington DC 20590

Application ofAviation Partners ofBoynton Beach, LLC d/b/a Hummingbird Air, for authority to conduct operations as a commuter air carrier DearMr. Raphael: Thank you for the updated fitness information that you submitted on March 27, 2015, in support of the application filed by Aviation Partners of Boynton Beach, LLC d/b/a Hummingbird Air ("Hummingbird Air"), for the determination ofits fitness to conduct scheduled passenger operations as a commuterair carrier under49 U.S.C. §41738. We have reviewed the information submitted and find that we continue to**requi~e** additional and/or clarifying information with respect to the applicant's financial fitness before we can completely process Hummingbird Air's application. First, we require that first-year projected operating expenses be submitted showing projected monthly or quarterly expenses. Therefore, we request that Hummingbird Air breakdown its first-year projected operating expenses by quarterormonth. Second, in evaluating an applicant's financial fitness, the Department generally 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**e~ual** to the operating costs that would be incurred in three months ofnormal operations. Assuming no change in the total projected first-year operating expenses, Hummingbird Air expects

Because projected expenses during the first several months ofoperations frequently do not include all ofthe costs that will be incurred duringa "normal" period ofoperations, it is ourpractice to base our threemonth standard on one quarter ofthe first year's operating cost forecast. In calculating·available resources, projected revenues may notbe used. 

# ••

# ----------------------------......._.
2

to incur first-year expenses of$2.8 million. In order to meet the Department's financial fitness test, Hummingbird Air would need to show that it has access to $702,822, which is onequarter ofits first-year projected expenses. Hummingbird Air'sbalance sheetas of December 31, 2014, shows the company having positive working capital of $306,514. Thus, it does not appear that Hummingbird Air has financial resources sufficient to meet the Department's requirements. We request that Hummingbird Air submita more recent balance sheet along with third-party verification of any and all funds available to demonstrate its financial fitness. Last, the third-party verification offunds submittedby Hummingbird Airin support ofits application does not indicate the actual amount of funds on deposit at the Bank of St. Croix. Also, it is the Department's policy that.applicants submit third-party verification offunds in the form ofa letter from the financial institution orin the form of a regular periodic bank statement; balance snapshots printed from the Internet are not acceptable sources of fund verification. Please submit revised financial verification documents.2
I ask that you respond fully to this request within 30 days ofthe date ofthis letter. You may upload your response via the web at www.regulations.gov, or you may mail your response to U.S. Department ofTransportation Dockets, West Building, Ground Floor, (M-30, Room Wl2-140), 1200 ·New Jersey Avenue SE, Washington, D.C. 20590. In either case, yourresponse should be filed in DocketDOT-OST-2014-0116. As is the Department's practice, further processing of Hummingbird Air's application will be deferred pending receipt of this material. In addition, please remember that Hummingbird Air 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 reviewby the Department. Thank you for your cooperation in this matter. Ifyou have any questions regarding this letter or the requested information, please feel free to contact me at (202) 366-2999 or vanessa.balgobin@dot.gov.

# ~~-~~ VanessaR. Balgobin Sr. TransportationIndustry An Air Carrier Fitness Division Office ofAviation Analysis

In general, the current asset section ofa company's balance sheet reflects all ofthe cash held by the company. Therefore, we do not add the cash amount shown on a balance sheet to cash amounts shown in bank statements. Rather, we use bank statements to verify the cash amount reflected on the balance sheet. We also use bank statements to verify the availability ofcash pledged to the applicant by an individual.

### cc: DocketDOT-OST-2014-0116 Mr. JorgeEchegoyen Principal Operations Inspector Federal Aviation Administration 2