G 

u s . Oepartment of 

Transporfotion 

Office of fhe Secrefary 

of Transportation 

November 29, 2010 

By Fax; (787) 724-6345 

Mr. Francisco Torres 

President 

Air Charter, Inc. d/b/a Air Flamenco 

P.O. Box 810352 

Carolina, PR 00981 

•\RTMENT OF 

iSPORTATION 

;T OPERATIONS 

:S P |:25 

1200 New Jersey Avenue, SE 

Washington, DC 20590 

Re: Docket DOT-OST-2010-0260 

Application of Air Charter, Inc. d/b/a Air Flamenco 

for Commuter Air Carrier Authority. 

Dear Mr. Torres: 

We have completed our initial review of the application filed on October 15, 2010, by Air 

Charter, Inc. d/b/a Air Flamenco ("Air Flamenco"), for the determination of its fitness to 

conduct scheduled passenger operations as a commuter air carrier. 

In evaluating an applicants' financial fitness, the Department generally asked that those 

applicants have resources sufficient to cover all pre-operating costs and any negative 

working capital balance, plus a working capital reserve equal to the operating costs that 

would be incurred in three months of normal operations.' Air Flamenco indicates that it 

expects to incur no significant pre-operating expenses since the air carrier already 

provides on-demand air service in the markets it proposes to operate scheduled service. 

Air Flamenco's most recent balance sheet indicates that, as of August 31, 2010, the 

company had current assets of $229,276 and current liabilities of $195,275, giving the 

company a positive working capital balance of $34,001. Air Flamenco provided 

first-year expense forecasts of approximately $1.97 million. Therefore, to meet our 

fitness test, we estimate that the company will need access to approximately $492,822.' 

Please provide evidence that Air Flamenco has access to a line of credit and/or third-party 

verification of funds on deposit that amount to no less than $458,821, which is the 

1 Because projected operations during one or more of the first three months of anticipated actual air 

transportation services frequently do not include all costs of operations that will be incurred during a 

normal period of operations, it has been our practice to base our three-month standard on one quarter of the 

first year's operating cost forecast. In calculating available resources, projected revenues may not be used. 

2 The $492,822 noted here is one-quarter of the applicant's first-year expense forecast of approximately 

SI.54 million in total operating expenses. S48.240 in interest expenses and bank charges, and $379,605 in 

iiK(Miie tuxes. 
difference between the company's working capital balance and the amount needed to 

meet the Department's financial fitness test. 

Air Flamenco lists "Prepayments" and "Receivables from Related Party" at $125,741 and 

$90,000, respectively. Please provide an explanation of what these figures incorporate, 

how they were calculated, and the identity of the related party. 

Additionally, please provide an update on the Chief Pilot's progress on obtaining 

certification as an Air Transport Pilot from the Federal Aviation Administration ("FAA"). 

As a related matter, the resume submitted on behalf of Mr. Ruben Torres indicates a gap 

in employment between September 1994 and February 1997. Please provide an account 

for his time during this period and amend that resume to indicate start and end dates of 

each of the positions he has held throughout his career. 

Air Flamenco's application indicated that the company received a letter of investigation 

from the FAA dated August 23, 2010, regarding the scope of the air carriers operating 

authority. Please provide a status update on this investigation. 

I ask that you respond fully to this request within 30 days of the date of this letter. You 

may upload your response via the web at www.regulations.gov, or you may mail the 

original plus 6 copies of your response to U.S. Department of Transportation Dockets, 

West Building, Ground Floor, W12-140, 1200 New Jersey Avenue SE, Washington, D.C. 

20590. In either case, your response should be filed in Docket DOT-OST-2010-0260. 

As is the Department's practice, further processing of Air Flamenco's application will be 

deferred pending receipt of this material. In addition, please remember that Air 

Flamenco 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 

review by the Department. 

The information provided pursuant to this information request should be accompanied by 

the following certification: 

The contents of this application and the attached exhibit (s) are true and correct to 

the best of my knowledge and belief. Pursuant to Title 18 United States Code 

Section 1001,1 [the individual signing the application, who shall be a principal 

owner, senior officer, or internal counsel of the applicant], in my individual 

capacity and as the authorized representative of the applicant, have not in any 

manner knowingly and willfully falsified, concealed or failed to disclose 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 or imprisoned not more than five years, or both. 
Thank you for your cooperation in this matter. If you have any questions regarding this 

letter or the requested information, please feel free to contact me at (202) 366-9967. 

Sincerely, 

Scott Faulk 

Transportation Industry Analyst 

Air Carrier Fitness Division 

cc: Docket DOT-OST-2010-0260 

Mr. Joaquin Puntonet 

POI for Air Flamenco