# G

u s . Oepartmen t o f Transporfotio n Offic e o f fh e Secrefar

y o f Transportatio n Novembe r

29 , 201 0 B y Fax ; (787 ) 724-634 5 Mr
. Francisc o Torre s Presiden t Ai r Charter , Inc
. d/b/ aAi r

Flamenc o P.O
. Bo x 81035 2 Carolina , P R0098 1 

### •\RTMEN TO F iSPORTATIO N ; TOPERATION S : S P |:2 5 120 0 Ne wJerseyAvenue , S E Washington , D C 2059 0

Re : Docke t

DOT-OST-2010-026 0 Applicatio n o f

Ai r Charter , Inc
. d/b/ aAi r

Flamenc o for Commute r

Ai r Carrie r Authority
. Dear Mr
. Torres : W e hav e complete dou r

initia l revie w o f

th e applicatio n file do n Octobe r 15 , 2010 , b y Ai r Charter , Inc
. d/b/ aAi r

Flamenc o ("Ai r

Flamenco") , for

th e determinatio n o f

it s fitnes s t o conduc t schedule dpassenge r

operation s a s acommute r ai r carrier
. I n evaluatin g a

n applicants ' financial fitness , th e Departmen t generall y aske dthat

thos e applicant s hav e resource s sufficien t t o cove r

al l pre-operatin g cost s an dan y negativ e workin g capita l balance , plu s aworkin g capita l reserv e equa l to th e operatin g cost s that woul db e incurre di n thre e month s o f norma l operations. ' Ai r Flamenc o indicates tha t it expect s t o incu r

n o significan t

pre-operatin g expense s sinc e th e ai r carrie r alread y provide s on-deman dai r

servic e i n th e market s it proposes t o operat e schedule dservice
. Ai r Flamenco' s mos t

recen t balanc e shee t

indicates that , a s of

Augus t 31 , 2010 , th e company ha dcurren t

asset s of $229,27 6 an dcurren t

liabilitie s of

$195,275 , givin g th e company apositiv e workin g capita l balanc e of $34,001
. Ai r

Flamenc o provide d first-yea r expens e forecast s of

approximatel y $1.9 7 million
. Therefore , t o mee t ou r fitnes s test , w e estimat e that th e compan y wil l nee dacces s t o approximatel y $492,822. ' Pleas e provid e evidenc e tha t Ai r Flamenc o ha s acces s t o alin e of credi t and/o r third-party verificatio n of

fund s o n deposi t

that amoun t t o n o les s than $458,821 , whic h i s th e

1 Becaus e projecte doperation s durin g on e o r mor e o f th e firs t thre e month s o f

anticipate dactua l air transportatio n service s frequentl y d o no t includ e al l cost s o f

operation s tha

t wil l b e incurre ddurin g a normal perio dof

operations , i

t ha s bee n our

practic e t o bas e ou r

three-month standar do n on e quarte r o f th e firs t year' s operatin g cos t

forecast
. I

n calculatin g availabl e resources , projecte drevenue s ma y no t b e used
. 2 Th e $492,82 2 note dher e i s one-quarte r of th e applicant' s first-yea

r expense forecas t

o f approximatel y SI.5 4 millio n in total operatin g expenses . S48.24 0 i n interes t expense s an dbank

charges , an d$379,60 5 i n iiK(Mii e tuxes .differenc e betwee n th e company' s workin g capita l balanc e an dth e amoun t neede dt o mee t th e Department' s financia l fitnes s test . Ai r Flamenc o list s "Prepayments " an d"Receivable s fro mRelate dParty " a t $125,74 1 an d $90,000 , respectively
. Pleas e provid e an explanatio n o f wha t thes e figure s incorporate , ho w the y wer e calculated , an dth e identit y o f th e relate dparty . Additionally , pleas e provid e a n updat e o n th e Chie f Pilot' s progres s o n obtainin g certificatio n a s an Ai r

Transport

Pilo t fro mth e Federa l Aviatio n Administratio n ("FAA")
. A s arelate dmatter , th e resum e submitte do n behal f o f Mr
. Rube n Torre s indicate s aga p i n employmen t

betwee n Septembe r

199 4 an dFebruar y 1997
. Pleas e provid e an accoun t for hi s tim e durin g thi s perio dan damen dtha t resum e t o indicat e start an den ddates of eac h o f th e position s h e ha s hel dthroughou t hi s career . Ai r Flamenco' s applicatio n indicate dtha t th e compan y receive dalette r o f investigatio n fro mth e FA A date dAugus t 23 , 2010 , regardin g th e scop e o f th e ai r carrier s operatin g authority
. Pleas e provid e astatu s updat e o n thi s investigation
. I as k that yo u respon dfull y t o thi s reques t withi n 3 0 day s o f

th e dat e of

thi s letter
. Yo u may uploa dyou r

respons e vi ath e we b at www.regulations.gov , o r yo u may mai l th e origina l plu s 6 copie s o f you r respons e t o U.S
. Departmen t o f Transportatio n Dockets , Wes t Building , Groun dFloor , W12-140 , 120 0 New Jerse y Avenu e SE, Washington , D.C
. 20590
. In eithe r

case , you r

respons e shoul db e file di n Docke t DOT-OST-2010-0260
. A s i s th e Department' s practice , furthe r processin g o f

Ai r Flamenco' s applicatio n wil l b e deferre dpendin g receip t o f thi s material
. In addition , pleas e remember tha t Ai r Flamenc o shoul dpromptl y provid e th e Departmen t with an y informatio n regardin g change s i t

ma y underg o i n area s affectin g it s fitnes s {i.e. , management , operatin g plan s o r financia l condition , complianc e disposition , o r ownership ) whil e it s applicatio n i s unde r revie w b y th e Department
. Th e informatio n provide dpursuan t t o thi s informatio n reques t shoul db e accompanie db y th e followin g certification : Th e content s o f

thi s applicatio n an dth e attache dexhibi t (s ) are tru e an dcorrec t

t o th e bes t of my knowledg e an dbelief
. Pursuan t t o Titl e 1 8 Unite dState s Cod e Sectio n 1001, 1 [th e individua l signin g th e application , wh o shal l b e aprincipa l owner , senio r

officer , o r

interna l counse l o f

th e applicant] , i n my individua l capacit y an da s th e authorize drepresentativ e o f th e applicant , hav e no t i n an y manne r knowingl y an dwillfull y falsified , conceale do r faile dt o disclos e an y materia l fac t

o r mad e an y false , fictitious , o r fraudulen t

statemen t

o r knowingl y use dan y document s whic h contai n suc h statement s i n connectio n with th e preparation , filin g o r

prosecutio n o f

th e application
. I understan dtha t a n individua l wh o i s foun dt o hav e violate dth e provision s of 1 8 U.S. C sectio n 100 1 shal l b e fine do r

imprisone dno t

mor e tha n fiv e years , o r

both
.Than k yo u for you r cooperatio n i n thi s matter . I f yo u hav e an y question s regardin g thi s lette r o r th e requeste dinformation , pleas e fee l fre e t o contac t m e at (202 ) 366-9967
. Sincerely ,

Scott Faul k Transportatio n Industry Analys t Ai r Carrie r Fitnes s Divisio n

cc : Docke t

DOT-OST-2010-026 0 Mr
. Joaqui n Puntone t PO I for Ai r Flamenc o