### BEFORE THE

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D. C.

Application of

Alt ius Aviation, LLC DOCKET

for authority to conduct scheduled passenger operations as a

commuter air carrier under 49 U.S.C. 41738

APPLI CATION OF

Altius Aviation, LLC

Communications with respect to this document should be sent to:

Altius Aviation, LLC

113 Tuskegee Road

Syracuse, NY 13211

Telephone: 315-455-7555

Fax: 315-455 -7557

Vaughn J. Crawford

Director of Operations

Telephone: 315-455-7555

Email: Vaughn@altiusaviationgroup.com

Date of Application: March 25, 2015

### 2 BEFORE THE

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Application of

Altius Aviation, LLC

for authority to conduct scheduled passenger operations as a

commuter air carrier under 49 U.S.C. 41738

APPLICATION OF

Altius Aviation, LLC

Altius Aviation, LLC submits this application for authority to operate scheduled passenger service as a commuter air carrier

under section 41738 of Title 49 of the United States Code ("the Statute").

In support of its application Altius Aviation, LLC states the following:

Applicant is a limited liability company organized on October 30, 2008 under the laws of the State of Delaware. Its address,

telephone and fax numbers, and email are:

Altius Aviation, LLC

113 Tuskegee Road

Syracuse, NY 13211

Telephone: 315-455- 7555

Fax: 315- 455

- 7557

Vaughn J. Crawford

Director of Operations

Telephone: 315-455- 7555

Email: Vaughn@altiusaviationgroup.com

Applicant is a citizen of the United States as defined in section 40102(a)(15) of the Statute.

Al tius Aviation, LLC is a Limited Liability Company with all owners and key personnel being citizens of the United States.

Applicant is currently engaged in operating a FAA-certified on-demand aircraft charter operation and providing aircraft

maintenance services. 

### DOCKET

### 5 

# TABLE OF CONTENTS

General Information and Applicant Background.............................................8

Corporate Structure and Ownership...........................................................11

Management Expertise, Technical Ability, and Compliance Questionnaires............14

Financial Position and Operating Plans.......................................................56

Compliance Disposition.........................................................................81

Appendix..........................................................................................83

Exhibit A: Letter of Intent for Lease of Aircraft N15NE...........................................

. 8 4

Exhibit B: Affidavit of Safety Compliance............................................................. 8 6

Exhibit C: US Air Operator Certificate and Canadian Foreign Air Operator Certificate........ 8 7

Exhibit D: Preapplication Statement of Intent.......................................................109

Exhibit E: Certificate of Formation....................................................................111

Exhibit F: Certificate of Good Standing..............................................................113

Exhibit G: Sworn Affidavit of US Citizenship......................................................114

Exhibit H: Operational and Revenue Forecast by Aircraft.........................................115

Exhibit I: Montreal Agreement........................................................................116

### 6



# CROSS REFERENCE TABLE FOR

ITEMS REQUIRED UNDER CFR § 204.3

### 7

### 8 

# GENERAL INFORMATION AND

APPLICANT BACKGROUND

### 9

1. GENERAL INFORMATION AND APPLICANT BACKGROUND

Applicant Information and Point of Contact

Altius Aviation, LLC

113 Tuskegee Road

Syracuse, NY 13211

Telephone: 315-455- 7555

Fax: 315- 455

- 7557

Vaughn J. Crawford

Director of Operations

Telephone: 315-455- 7555

Email: Vaughn@altiusaviationgroup.com

Narrative History of Applicant

The company was founded by Thomas Coyne and Vaughn J. Crawford on October 30, 2008. Mr. Coyne sold his interest in the

company in 2013 to Crandall Melvin and Edward Perry, who sold their interest in 2014 to Henry Laughlin. Current ownership

is Henry Laughlin 80% and Vaughn J. Crawford 20%. The company achieved FAA 135 certification in July 2008 operating one

aircraft. Altius currently operates seven aircraft with “on-demand” authority to numerous locations.

The following markets are proposed to be served under the commuter authority, as is detailed later in this application:

Route #1

Westchester County Airport (HPN) and Hanscom Field (BED ) – Year Round

Route #2

Westchester County Airport (HPN) and Martha’s Vineyard Airport (MVY) – Summer/Fall

Route #3

Westchester County Airport (HPN) and Rutland-Southern Vermont Regional Airport (RUT) – Winter/Spring

Route #4

Albany International Airport (ALB) and Buffalo Niagara Int’l Airport (BUF) – Year Round

Route #5

Syracuse Hancock Int’l Airport (SYR ) and Bradley Int’l Airport (BDL) – Year Round

Aircraft will be phased into service over the course of the first year of operation, and a detailed description is provided under the

service proposal section of the application. Additionally, each aircraft’s operations and service entrance date is detailed in the

Appendix.

Additional aircraft will not be required for this service. The company plans to shift four of its current aircraft to accommodate

the commuter service. No changes are anticipated to the applicant’s management team or facilities if granted commuter

authority. The change in operations will include less “on-demand” flying than is currently being accomplished by Altius

Aviation, LLC due to the shift of aircraft resources to the scheduled passenger service. There are no plans at this time to

establish maintenance or operations bases separate from its corporate offices.

### 10

Altius Aviation, LLC plans to contract out 100% of the maintenance for the scheduled passenger service. Approximately 50%

of the training will be contracted out to Flight Safety International.

Aircraft Information

The aircraft that are intended to be utilized for the scheduled passenger service are as follows:

Piltaus PC12: N86NY – 8 seats (Lessor Edison Motor Cars)

Piltaus PC12: N915JL – 8 seats (Lessor LJ Ventures LLC)

Piltaus PC12: N600GN – 6 seats (Lessor Proair Holding Company LLC)

Pilatus PC12: N15NE – 9 seats (Lessor Prostar Pilatus Center – LOI attached in Appendix as Exhibit A)

Beechcraft King Air B200 – 8 seats (Lessor Lock Haven Sales)

The Pilatus PC12 N600GN currently has 6 seats but Altius Aviation; LLC has installed a service bulletin to change it to 8 seats.

The remainder of this installation will be accomplished before N600GN is used in the commuter operation. The assumption for

all aircraft, including the Pilatus PC12 N15NE with 9 seats, is that 8 seats will be utilized in the commuter operation in case of

aircraft substitution. This commuter plan is predicated on the use of the four Pilatus PC12 aircraft for the commuter operation,

with the Beechcraft King Air B200 available as a spare when the other four aircraft are due for maintenance or repairs.

A sworn affidavit stating that each of these aircraft has been certified by the FAA and complies with all applicable FAA safety

standards is attached as Exhibit B in the Appendix.

Applicant’s Authority to Conduct Air Transportation Operations

Altius Aviation, LLC has the authority to conduct air transportation operations. The United States Air Operator Certificate for

Altius Aviation, LLC and the Canadian foreign Air Operator Certificate for Altius Aviation, LLC are attached as Exhibit C in

the Appendix.

Additionally, a request has been made for opspecs revision from “on-demand” to “commuter authority” to:

Flight Standards District Office 23

One Airport Way, Suite 110

Rochester, NY 14624

585

- 436 -3880

POI: Patrick O’Neill

PMI: Kevin Kuc

PAI: John Liccini

The Pre-Application Statement of Intent (PASI) is attached as Exhibit D in the Appendix.

### 11



# CORPORATE STRUCTURE

AND OWNERSHIP

### 12

2. CORPORATE STRUCTURE AND OWNERSHIP

Altius Aviation, LLC is a Limited Liability Company organized in the state of Delaware on October 30, 2008. The Certificate

of Formation is attached as Exhibit E in the Appendix.

A Certificate of Good Standing, signed by Jeffrey W. Bullock, the Secretary of State for Delaware, is attached as Exhibit F in

the Appendix

.

A sworn affidavit stating that the applicant is a citizen of the United States is attached as Exhibit G in the Appendix.

There are no owners, officers, directors, or other persons who have the power to influence the applicant, whether through

ownership, debt, position held, or other interest, that are not U.S. citizens.

Ownership Structure

Altius Aviation, LLC currently operates under the following ownership structure. This ownership structure is not expected to

change if commuter air carrier authorization is granted. There is no stock issued or authorized under the ownership arrangement

of Altius Aviation, LLC.

Henry Laughlin, Chief Executive Officer

Ownership Percentage: 80%

Physical Address: 28305 Meadow Brook Drive, Steamboat Springs, CO 80487

Mailing Address: PO Box 774971, Steamboat Springs, CO 80477

Citizenship: United States of America

Principal Business: Altius Aviation, LLC – aviation charter company

Vaughn J. Cr awford, Director of Operations

Ownership Percentage: 20%

Phyical and Mailing Address: 116 Robbins Lane, Dewitt, NY 13214

Citizenship: United States of America

Principal Business: Altius Aviation, LLC – aviation charter company

Applicant’s Operating Divisions, Subsidiaries, and Financial Interest in Other Companies

Henry Laughlin, Chief Executive Officer

Altius Aviation LLC

1. Ownership

a. Henry Laughlin – 80% ownership

2. Principal business

a. Aviation Charter Company

b. Location: Syracuse, New York

Northeast Air

1. Ownership

a. Henry Laughlin – 100% ownership

2. Principal business

a. Fixed Base Operation

b. Location: Portland, Maine

### 13

Pro Star Aviation

1. Ownership

a. Henry Laughlin – 70% ownership

2. Principal business

a. Aviation MRO

b. Location: Manchester

, New Hampshire

Pro Star Pilatus

1. Ownership

a. Henry Laughlin – 100% ownership

2. Principal business

a. New aircraft sales

b. Location: Manchester, New Hampshire

Back Country Aviation

1. Ownership

a. Henry Laughlin – 100% ownership

2. Principal business

a. Aviation management company

b. Location: Steamboat Springs, Colorado

Vaughn J. Crawford, Director of Operations

Altius Aviation LLC

1. Ownership

a. Vaughn J. Crawford – 20% ownership

2. Principal business

a. Aviation Charter Company

b. Location: Syracuse, New York

### 14



# MANAGEMENT EXPERTISE,

TECHNICAL ABILITY, AND

COMPLIANCE

### 15

3. MANAGEMENT EXPERTISE AND TECHNICAL ABILITY

Organizational Chart

The organizational structure of the proposed commuter airline is as follows:

Resumes for Key Personnel

Resumes for the Key Personnel of the commuter operation begin on the following page.

### 16

RESUME KEY PERSONNEL – Chief Executive Officer (CEO)

Henry Laughlin

28305 Meadow Brook Drive

Steamboat Springs, CO 80487

970

- 846 -7133 Office

970

- 846 -7133Cell

Altius Aviation, LLC

Syracuse, NY

Certificate: 14 CFR135 #Y9NA330M (10 Seats or more), ER-FSDO- 23

Type of business: An FAA certified Part 135 air carrier providing aircraft management and charter services.

August 2014 to Present

Position: President and Co-Owner

Responsibility: Directs the company’s financial goals, objectives, and overall budget. Oversee all other executives,

management and staff within the company.

Concurrent Employment/Companies

January 2005 to Present

Back Country Aviation, Inc.

Steamboat Springs, CO

Type of business: Management Consulting

Position: Owner

Responsibility: Directs the company’s financial goals, objectives, and oversee all other management and staff responsible for

the day- to -day operations.

December 2008 to Present

ProStar Pilatus

Manchester, NH and Cauldwell, NJ

Type of business: Pilatus Aircraft sales and service Northeast U.S.

Position: Founder/Principal

Responsibility: Directs the company’s financial goals, objectives, and oversee all other management and staff responsible for

sales the Pilatus PC-12NG aircraft.

July 1988 to Present

ProStar Aviation

Manchester, NH

Certificate: P6UR006Y

Type of business: Maintenance repair and overhaul facility (MRO) providing aircraft maintenance, avionics

installation/service, engineering services, aircraft parts, Pilatus authorized service center.

Position: Co-Founder

Responsibility: Directs the company’s financial goals, objectives, and oversee all other management and staff responsible for

the day- to -day operations. The Pro Star Aviation's Engineering team has been awarded over forty-eight (48) STC's ranging

from TCAS, FMS, MFD, ESIS, Satcom, HSD, Satellite TV, EGPWS and EFIS systems on all sizes of corporate aircraft. The

company’s STC's have been assimilated into many foreign countries and are sold all over the world.

### 17

June 1984 to Present

Northeast Air

Portland, ME

Certificate: FTUR030E

Type of business: Fixed Base Operator

Position: Owner, President, and CEO

Responsibility: Directs the company’s financial goals, objectives, and oversee all other management and staff responsible for

the day- to -day operations.

Pr evious Employment

December 1982 to June 1984

Meganthaler Linotype

Woburn, MA

Type of business: Digital typesetting company

Position: Salesperson

Responsibility:

Responsibility: Develop and maintain a thorough knowledge of company’s services and pricing structure. Prepare and deliver

sales proposals/presentations and follow up with current and potential customers. Generate new commercial business.

September 1981 to November 1982

Savin Corporation

Cambridge, MA

Certificate: FAR 91

Type of business: Copier sales and service company

Position: Salesperson

Responsibility: Prepare and deliver sales proposals/presentations and follow up with current and potential customers. Generate

new commercial business.

October 1980 to August 1981

The Greenery

Cambridge, MA

Type of business: Interior landscape design.

Position: Designer

Responsibility: Creating interior designs to meet customer’s needs for a functional, safe, and attractive work/living space.

Responsible for reading blueprints and being aware of building codes and inspection regulations.

June 1978 to September 1980

Boston Design Group

Boston, MA

Type of business: Interior landscape design

Position: Designer

Responsibility: Creating interior designs to meet customer’s needs for a functional, safe, and attractive work/living space.

Responsiblities include reading blueprints and being aware of building codes and inspection regulations.

Education

Princeton University

Princeton, NJ

Attended, Studying Architecture and Design, 1973- 1978

### 18

Cert ification and Flight Experience

Private pilot’s certificate

Citizenship

United States

Stock Ownership

Owens 80% of company (no stock issued or authorized)

### 19

### 20

### 21

### 22

### 23

RESUME KEY PERSONNEL – Director of Operations

Vaughn J. Crawford

116 Robbins Lane

Dewitt, New York 13214

(315)-455-7555 Office

(315)-559-0505 Cell

Altius Aviation, LLC

Syracuse, NY

Certificate: 14 CFR135 #Y9NA330M (10 Seats or more), ER-FSDO- 23

Type of business: An FAA certified Part 135 air carrier providing aircraft management and charter services.

August 2014 to Present

Position: Director of Operations

Responsibility: Directs daily operations of all areas business, planning, marketing, and business development.

January 2010 to July 2014:

Position: Managing Partner/Director of Operations

Responsibility: Responsible for strategic planning and management of all areas of our business. We currently operate a

Challenger 605; three Lear 60’s based in New York, three PC12’s, a Lear 31 and a King Air B200. Expanded our Operations

Specifications to include air ambulance operations as well as geographically cover approximately 80% of the globe.

Successfully implemented our SMS program and achieved IS-BAO registration.

Previous Employment

May 2004 to December 2009

Altius Aviation, LLC/Coyne Textile Services

Syracuse, NY

Certificate: 14 CFR 91/135

Type of business: Corporate flight department

Position: President and Chief Executive Officer

Responsibility: Duties include flight operations, maintenance scheduling, and financial/accounting. Responsible for providing

safe, reliable air transportation for senior executives and customers throughout North and South America with our Lear 60.

During the fall of 2007 our owner made the decision to obtain a Part 135 Air Carrier Certificate. Acted as Certification

Program Manager, developed our manual system, SOP’s, policies and procedures etc. Completed certification June 2008.

May 1999 to April 2004

Airborne, Inc.

Syracuse, NY

Certificate: 14 CFR 135

Type of business: Scheduled Air Carrier – Start- up

Position: Vice President, Director of Operations April 2000 to April 2004

Chief Pilot May 1999 to March 2000

Responsibility: Responsible for all flight operations conducted by the company. The fleet included (3) GIV’s, (2) GV’s, (1) GII,

(1) LR35A, (1) LR55, and (1) HS125 operating worldwide. Developed and implemented new manual system for the company

to manage its growth. Established the Director of Safety position and implemented a Safety Program. Projects included: EFB,

Heads Up Display and CAT II Operations.

July 1995 to April 1999

Northern Airlines Corporation

Syracuse, NY

Certificate: 14 CFR 121

### 24

Type of business: Scheduled Air Carrier – Start- up

Position: President and Chief Executive Officer

Responsibility: Co -founder of the company, responsible for all facets of the business as well as equity and debt placement,

building the management team and the ongoing process of writing and revising manuals.

September 1989 to June 1995

Jet Management Group, Inc.

Syracuse, NY

Certificate: FAR 135

Type of business: Air charter, corporate aircraft management and maintenance

Position: Chief Pilot/Director of Training/Anti-drug Program Manager

Responsibility: Captain on Lear 55B, promoted to Chief Pilot, assigned as Captain on Jetstar; developed and implemented new

training program; researched and compiled new training and operations manual; conducted aircraft acquisition analysis for

clients ranging from turboprops to large corporate jets.

January 1988 to August 1989

American Cyanamid Company

Teterboro, NJ

Certificate: FAR 91/135

Type of business: Corporate flight department

Position: PIC/SIC Lear 25 and 55

Responsibility: Responsible for the safe and economic operation and management of aircraft carrying passengers and/or cargo.

October 1985 to December 1987

Rivett Aero Services

Old Forge, NY

Certificate: FAR 91

Type of business: Corporate flight department

Position: Captain King Air E90 and 200

Responsibility: Responsible for preparing flight plans and for the safe and economic operation and management of aircraft

carrying passengers and/or cargo.

July 1984 to September 1985

Pro Pilots, Inc.

Fayetteville, NY

Certificate: FAR 91

Type of business: Charter flights, aircraft rental, and flight training.

Position: First Officer King Air E90 and 200

Responsibility: Assist the captain by monitoring the flight instruments, handling radio communications, watching for air traffic,

and taking over the flight controls when directed by the captain.

July 1983 to July 1984

Rex Miller Flying Services

Watertown, NY

Certificate: FAR 91

Type of business: Charter flights, aircraft rental, and flight training.

Position: Commercial Pilot/Flight Instructor

Responsibility: Responsible for the safe and economic operation and management of aircraft carrying passengers and/or cargo.

Training students in aircraft systems, operating procedures, handling emergencies, problem analysis, aircraft navigation, radio

operation and aerodynamics Instruct students in a classroom setting, conduct training flights, determine student proficiency.

### 25

Education

Northeastern University

Boston, MA

Degree: Bachelor of Science in Business Administration, September 1981

Cooperative Education Program – IBM Flight Operations

Hudson Valley Community College

Troy, NY

Associate in Applied Science, Marketing, May 1978

Cer tification and Flight Experience

Airline Transport Pilot Certificate #2988663 ASMEL

Certified Flight Instructor Airplane Single & Multi Engine, Instrument Airplane

Lear 60, LR Jet, L1329, DA20, G1159, GIV

13,500 hours: Total Flight Time

8,900 hours: Turbo Jet

2,200 hours: Turboprop

Citizenship

United States

Stock Ownership

Owens 20% of company (no stock issued or authorized)

### 26

### 27

### 28

### 29

### 30

RESUME KEY PERSONNEL – Chief Financial Officer

Howard Yates

9 Stornoway Road

Cumblerland Foreside, ME 04110

207

- 774 -6318 Office

Altius Aviation, LLC

Syracuse, NY

Certificate: 14 CFR135 #Y9NA330M (10 Seats or more), ER-FSDO- 23

Type of business: An FAA certified Part 135 air carrier providing aircraft management and charter services.

August 2014 to Present

Position: Chief Financial Officer

Responsibility: Responsible for all financial and administrative functions of the company. Prepares accurate and timely budgets

and financial reports for the company.

Concurrent Employment

May 2004 to Present

Northeast Air

Portland, Maine 04102

Type of business: Fixed Base Operation

Position: Chief Financial Officer

Responsibility Responsible for all financial and accounting functions of the company.

Previous Employment

December 1996 to April 2004

Emery Waterhouse

South Portland, Maine

Type of business: Hardware distributor for the Northeast region of the U.S. Annual sales: $100 Million

Position: Chief Financial Officer

Responsibility: Responsible for all financial and accounting functions of the company. Member of a quality improvement team

responsible for implementing new materials procurement procedures. Results: $500,000 annual savings.

October 1996 to November 1996

Unemployed – Moving to Portland, MA

Type of business: None

Position: None

Responsibility: None

March 1977 to September 1996

Bath Iron Works

Bath, Maine

Type of business: Government Contractor

Position: Senior Vice President of Administration

Responsibility: Responsible for all administrative functions of the company including finance, contracts, human resources, and

safety and management information services. Served as one of two employee board members, participated in the establishment

of corporate strategy with responsibility for keeping the Board informed of the company’s progress toward it strategic

initiatives.

### 31

June 1973 to February 1977

Price Waterhouse& Co.

Boston, Ma

Type of business: Public Accounting

Position: Auditor

Responsibility: Audit Large Corporations in various industries

Education

University of New Hampshire

Durham, NH

Degree: Masters Business Administration – Finance

Graduated at top of class 1973

Colby College

Waterville, ME

Degree: Business Administration – Economics

Graduated with Honors 1971

Certification

Certified Public Accountant (CPA) Massachusetts 1975

Citizenship

United States

Stock Ownership

None

### 32

### 33

### 34

### 35

RESUME KEY PERSONNEL - Director of Maintenance and Chief Inspector

Michael G. Marczyk

5107 Federal Road,

Hemlock, NY 14466

(585)-346-6130 Office

(585)-746-3226 Cell

Altius Aviation, LLC

Syracuse, NY

Certificate: 14 CFR135 #Y9NA330M (10 Seats or more), ER-FSDO- 23

Type of business: An FAA certified Part 135 air carrier providing aircraft management and charter services.

October 2013 to Present

Position: Director of Maintenance, Director of Quality Assurance (CI), and Manager of Maintenance

Responsibility: Directs and manages the execution of all Maintenance and Quality Inspection activities and takes steps to

prevent or correct discrepancies caused by improper/ineffective maintenance practices.

August 2012 to September 2013:

Position: Director of Quality Assurance

Responsibility: Assures inspections and maintenance actions are performed according to specific technical guidance presented

in the aircraft and system maintenance manuals, Maintains Repair Station Manual, engineering drawings and other technical

publications.

Previous Employment

December 2011 to July 2012

Talon Air, Inc.

Farmingdale, NY,

Certificate: 14 CFR145, ER-FSDO-11

Type of business: A full service private jet charter company specializing in jet services, charters, jet maintenance, and aircraft

management.

Position: Technical Sales and Marketing Manager and Maintenance Operations Consultant

Responsibility: Technical sales, marketing and special projects for the Northeast and Southeast Regions of the U.S.

March 2011 to November 2011:

Lanmar Aviation, Inc.

Groton, CT

Certificate: 14 CFR135 (9 seats or less)/145, ER-FSDO-63

Type of business: A full service fixed base operator, as well as a part 135 operator, and a full service maintenance facility

. Approved FAA part 145 Certified Repair Station with ratings that include Airframe categories I and III, Limited Airframe,

Engine, Radio, and Accessories Repair Station.

Position: Manager of Maintenance and Avionics Operations / 145 Accountable Manager / 135 Supervisor of Director of

Maintenance.

Responsibility: Manage a safe and quality-oriented department, schedule work scope, and assist with avionics quoting and

responsible for all aspects of the P&L. Works with the FAA and the customers

May 2009 to February 2011:

Stevens Aviation, Inc.

Greenville, SC,

Certificate: 14 CFR145 Service Center, SO-FSDO-13

Type of business: Aircraft maintenance, modification and refurbishment, aircraft sales, flight services, and fixed base

### 36

operations. Provided maintenance services for: Beechcraft, Bombardier, Cessna, Embraer, Gulfstream, Learjet, Piaggio and

Pilatus aircraft

Position: Technical Services Sales Representative – Northeast Region (7 states)

Responsibility: Team member responsible for Sales and Marketing in addition to some troubleshooting, repairing and servicing

aircraft and engine systems. Periodically perform maintenance, disassembly, rework, repair, replacement, re-assembly or

adjustment of various aircraft systems in accordance with technical specifications, engineering instructions, and FAA

regulations.

June 2008 to April 2009

Aeronautical Innovations Concepts, Inc. (ACI)

Dunkirk, NY

Type of business: Contract aircraft maintenance and flight operations management, inspection and maintenance services

Position: President and Principal Consultant

Responsibility: Acting Director of Maintenance and Assistant Director of Flight Operations providing company FAA

representation, maintenance and flight operation supervisory functions, aircraft maintenance management, on-call maintenance

services for aircraft and engine systems, troubleshooting and performing repairs in accordance with manufacture’s technical

specifications and FAA regulations.

April 2008 to May 2008:

ACP Jet Charters, Inc.

Fort Pierce, Florida

Certificate: 14 CFR 135 (9 seats or less), SR-FSDO-15

Type of business: Air charter, aircraft management and maintenance.

Position: Director of Maintenance and Director of Quality Assurance

Responsibility: Maintaining aircraft in a ready state by servicing aircraft and engine systems, troubleshooting, and performing

repairs in accordance with technical specifications and FAA regulations.

May 2005 to March 2008

Great Circle Aviation, Inc.

Fort Pierce, FL

Certificate: 14 CFR 135 (10 Seats or more), ER-FSDO-23 & SR-FSDO- 15

Type of business: Air charter, corporate jet management and aircraft maintenance.

Position: Director of Maintenance and Director of Quality Assurance

Responsibility: Maintaining aircraft in a ready state by servicing aircraft and engine systems, troubleshooting, and performi ng

repairs in accordance with technical specifications and FAA regulations

June 2003 to April 2005

International Group, LLC

Penn Yan, NY

Certificate: 14 CFR 135 (10 Seats or more), ER-FSDO-23

Type of business: Aircraft charter, rental, and leasing services.

Position: Director of Maintenance and Director of Quality Assurance

Responsibility: Maintaining aircraft in a ready state by servicing aircraft and engine systems, troubleshooting, and performi ng

repairs in accordance with technical specifications and FAA regulations.

May 2002 to May 2003

Airborne/First Flight LLC

Horseheads, NY

Certificate: 14 CFR 135 (10 seats or more)/145, ER-FSDO- 23

Type of business: Aircraft charter, management services, sales, and aircraft maintenance and support services.

Position: G-IV Manager/Technician/Inspector/Sales/Flight Technician

### 37

Responsibility: Responsible for inspection, troubleshooting, maintenance and repair of aircraft systems, structure and engines.

Working performed under the supervision of a certified A&P Director of Maintenance

November 1985 to April 2002

Eastman Kodak Company Aviation Services

Rochester, NY

Certificate: 14 CFR 91/145, ER-FSDO- 23

Type of business: Corporate flight department

Position: Senior Maintenance & Avionics Technician

Technician/Cabin Safety Attendant

Responsibility: Assigned to Bombardier MSG-3 Team for CL300 1 st Production Aircraft Program

March 1984 to October 1985

Gulfstream Aerospace Corporation

Savannah, GA

Certificate: 14 CFR 145, SR-FSDO- 11

Type of business: Aircraft service and maintenance support center and parts distribution.

Position: Service Center Maintenance Technician/Lead

Responsibility: Assigned to GIIB Program and 1 st Production Team for G-IV Program

November 1983 to February 1 984

Dolphin Airlines/PBA

Tampa, FL

Certificate: 14 CFR 121, SR-FSDO-35

Type of business: Scheduled commuter airline operating in the State of Florida

Position: Maintenance Technician

Responsibility: Responsible for inspection, troubleshooting, maintenance and repair of aircraft systems, structure and engines.

Working performed under the supervision of a certified A&P Director of Maintenance.

August 1980 to October 1983

Embry-Riddle Aeronautical University

Daytona Beach, FL

Certificate: 14 CFR 147, SR-FSDO- 15

Type of business: Education Aeronautical University

Position: Student in Aeronautical Engineering Technology Program and Part Time Lab Assistant for Powerplant Program

Responsibility: Set up Lab/Shop projects per faculty instructions and assist faculty members in the lab. Maintain lab equipment

to include aircraft. Perform supply and inventory duties for equipment and consumables. .

March 1975 to July 1980

Panorama Flight Services

White Plains, NY

Certificate: CFR-135, SR-FSDI- 11

Type of business: Fixed Base Operator

Position: Apprentice Aircraft Maintenance Technician Part-Time

Responsibility: Diagnose, adjust, repair, or overhaul aircraft engines and assemblies, such as hydraulic and pneumatic systems,

includes helicopter and aircraft engine specialists. Working performed under the supervision of a certified A&P Director of

Maintenance.

### 38

Education

Embry-Riddle Aeronautical University

Daytona Beach, FL

Certificate: 14 CFR 147, SR-FSDO- 15

Degree: Associate Degree in Aviation Maintenance Technology, April 1983

Certification

Airframe, Power Plant, and I.A. Certificate No. 3436540 N.D.T.

Eddy Current Level II

Radio and Instrument Repairman: (K-Cert: 2570805 (RVSM) / CB Cert: 3074573)

Citizenship

United States

Stock Ownership

None

### 39

### 40

### 41

### 42

### 43

RESUME KEY PERSONNEL – Chief Pilot

Michael J. DePasquale

33 Greenbriar Drive

Lancaster, New York 14086

(716) 830-7045

Altius Aviation, LLC

Syracuse, New York

Certificate: 14 CFR135 #Y9NA330M (10 Seats or more), ER-FSDO- 23

Type of business: An FAA certified Part 135 air carrier providing aircraft management and charter services.

December 2009 to Present

Position: Chief Pilot, Check Airman

Responsibility: Responsible for the management of Flight Personnel to ensure that all company pilots meets the proper FAA

qualifications and that aircraft are operated in accordance with provisions of the company’s flight manual and the current

Federal Aviation Regulations. As a Check Airman, responsibilities include evaluating and certifying the knowledge and skills

of other company pilots. Conduct proficiency checks either by observation, verbal, or written review.

Concurrent Employment

December 2009 to Present

Williams International Air, Inc.

Rochester, New York

Certificate: N/A

Type of business: Corporate flight department

Position: Chief Pilot

Responsibility : Responsible for Learjet 60 operations including the management of other Flight Personnel to ensure

compliance with FAA qualification requirements and that the aircraft is operated in accordance with provisions of the

company’s flight manual and the current Federal Aviation Regulations.

Previous Employment

October 2005 t to November 2009

JetSmart, Inc.

Rochester, New York

Certificate: 14 CFR 135

Type of business: 14 CFR135 (No Longer in Operation) , ER -FSDO- 23

. Position: Check Airman, August 2008 to January 2010

Chief Pilot, September 2006 to January 2009

Responsibility : Responsible for the management of Flight Personnel to ensure that all company pilots meets the proper FAA

qualifications and that aircraft are operated in accordance with provisions of the company’s flight manual and the current

Federal Aviation Regulations. As a Check Airman, responsibilities include evaluating and certifying the knowledge and skills

of other company pilots. Conduct proficiency checks either by observation, verbal, or written review.

March 2005 to September 2005

Great Circle Aviation, Inc.

Dunkirk &Rochester, New York

Certificate: 14 CFR 135

Type of business: Air charter, corporate aircraft management and maintenance

Position: Chief Pilot/Captain - Learjet 60

Responsibility: Responsible for preparing flight plans and for the safe and economic operation and management of aircraft

carrying passengers and/or cargo. Managed company’s Anti-Drug Program.

### 44

August 2002 to February 2005

Delaware North Companies

Buffalo, New York

Certificate: 14 CFR Part 91

Type of business: Corporate flight department

Position: Captain Challenger 601

First Officer Gulfstream IV SP

Responsibility: Responsible for preparing flight plans and for the safe and economic operation and management of aircraft

carrying passengers and/or cargo. Managed company’s Anti-Drug Program. As a First Officer, responsible for assisting the

captain by monitoring the flight instruments, handling radio communications, watching for air traffic, and taking over the flight

controls when directed by the captain.

January 1993 to July 2002

Great Circle Aviation, Inc.

Dunkirk-& Rochester, New York

Certificate: 14 CFR 135 (10 Seats or more), ER-FSDO-23 & SR-FSDO- 15

Type of business: Air charter, corporate jet management and aircraft maintenance

Position: Chief Pilot Worldwide Operations, July 2000 to July 2002

Captain Learjet 60, 31/31a-35a/36-55, August 2008 to July 2002

Captain Piper Cheyenne, January 1993 to July 2002

Responsibility : Responsible for the management of Flight Personnel to ensure that all company pilots meets the proper FAA

qualifications and that aircraft are operated in accordance with provisions of the company’s flight manual and the current

Federal Aviation Regulations. As a Captain, responsiblities include preparing flight plans and for the safe and economic

operation and management of aircraft carrying passengers and/or cargo. Managed company’s Anti-Drug Program.

March 1992 to December 1992

Al -Tech Specialty Steel Company / The Red Wing Company

Dunkirk-Fredonia, New York

Certificate: 14 CFR 91

Type of business: Corporate flight department

Position: First Officer – Piper Cheyenne II

Responsibility: Assist the captain by monitoring the flight instruments, handling radio communications, watching for air traffic,

and taking over the flight controls when directed by the captain.

January 1991 to February 1992

Dunkirk Aviation Flight School

Dunkirk, New York

Certificate: Part 141 Flight School

Type of business: Flight School

Education

Erie Community College

Orchard Park, New York

Degree: None, Attended September 1987 to December 1990

### 45

Certification and Flight Experience

Airline Transport Pilot Certificate #3335930

Type Ratings: CL-600, LR-60. LR-Jet and DA-50 (SIC Only)

6,900 hours: Total Flight Time

3,950 hours: Turbo Jet

1,675 hours: Turboprop

1,275 hours: Piston

Citizenship

United States

Stock Ownership

None

### 46

### 47

### 48

### 49

RESUME K EY PERSONNEL – Director of Safety

Robert McCutchan

814 E. 40 th Street

Tacoma, WA 98404- 2906

(253) 472-5218

Altius Aviation, LLC

Syracuse, NY

Certificate: 14 CFR135 #Y9NA330M (10 Seats or more), ER-FSDO- 23

Type of business: An FAA certified Part 135 air carrier providing aircraft management and charter services.

2000 to Present

Position: Director of Safety

Responsibility: Responsible for providing guidance and direction for the planning, implementation and operation of the

company’s safety management system (SMS).

Concurrent Employment

1996 to Present

Aviation Safety Consulting

Tacoma, WA

Type of business: Consulting

Position: Owner

Responsibility: Responsible for providing information and advice to client’s senior management on matters relating to safe

operations. Audits client’s safety management system (SMS) and provide recommendations for improvement.

Clients and work performed:

 Served as Director of Aviation Safety for Airborne, Inc.

 Taught University of Southern California (USC) Audit Preparation and Pre-Mishap Planning

 Serve as consultant with Flight Safety Foundation auditing corporate aviation flight and service organizations

 Contract Safety Facilitator providing consulting on aviation organization, staffing, training and work processes

“Safety by the hour”

 Facilitate several Fortune 100 aviation department Accident/Incident Response Plans

 Conducted Several Deice/Anti-Ice training workshops

 Trainer of passengers and crew-Emergency Evacuation and Cabin Safety

 FSF Q-Star contract auditor for western half of USA

Previous Employment

1973 to 1996

IBM

White Plains, New York

Type of business: Corporate flight department

Position: Senior Captain

Responsibility: Provided leadership as manager and team leader of several aviation functions

 Aviation services and fuel vendor benchmarking and oversight team leader

 Software co-writer, team leader for purchasing, inventory control, stockroom, accounting, warranty monitoring and

shipping processes

 Aviation parts inventory reduction team leader

 Wrote job descriptions, hired, trained and managed co-op flight attendants

### 50

Flight and Ground Safety Team Leader

 Lead Safety Team in establishing department accident prevention and reaction plans.

 Developed and implemented a safety incident documenting and tracking process

 Senior Flight Team Leader for corporate executive and customer aircraft.

Military Training and Work Assignments

Strategic Air Command.1970- 1973

 Worldwide flight experience

 Manager of Safety, Standardization/Evaluation, Squadron Instructor Pilots (ground, flight, and simulator), and

Instructor Upgrade Trainer

 Performed ground and flight instrument instruction and evaluations, simulator instructor/examiner and Squadron

Instructor Pilot.

4 th Air Commando Squadron, Republic of South Vietnam 1968- 1969

 Flew over 200 combat sorties in Vietnam, Laos, Thailand and Cambodia earning the Distinguished Flying Cross and

11 Air Medals

 While flying night special operations missions, managed the squadron vehicles, weapons and several crew members

of lower, peer and superior rank

Global Survival Training - 1968

 Global Survival Training in the US and Jungle Survival Training in the Philippines

 USAF Flight and Academic Training in twin engine jet aircraft 1967- 1968

Education

University of Puget Sound

Tacoma, WA

Degree: Bachelor of Administration – Economics and Business

USC Safety Management School

Certification

Airline Transport Pilot

Type Ratings: B-707, B-720, G-1159, G-IV, LR-JET, DA 2000, N- 265

Commercial Privileges: DC-3

Total Time: 16,800 hrs.

Gulfstream: 5,000 hrs, Lear: 6,100 hrs, DA 2000: 200 hrs, B-707/720: 1600 hrs.

DC -3: 960 hrs, NA -265: 750 hrs.; T-37 & T-38 (military jet trainer): 230 hrs.;

Single Engine: 160 hrs.

Professional Associations

NBAA Operations and Safety Committees

Flight Safety Foundation Deice Advisory Committee advisor

Ch arter Member/Co-Founder, Northeast Corporate Safety Roundtable

### 51

Civic Organizations

Trustee on the Board of Directors Greater Washington MS Society

Executive Board Member of Wellspring, parent organization to the Healing Arts Guild

Citizenship

United States

Stock Ownership

None

### 52

### 53

### 54

### 55

Citizenship

The citizenship of each of the individuals listed in the organizational chart is the United States of America.

Description of Interests in Other Aeronautics Businesses

Henry Laughlin, Chief Executive Officer

Northeast Air

1. Ownership

a. Henry Laughlin – 100% ownership

2. Principal business

a. Fixed Base Operation

b. Location: Portland, Maine

Pro Star Aviation

1. Ownership

a. Henry Laughlin – 70% ownership

2. Principal business

a. Aviation MRO

b. Location: Manchester

, New Hampshire

Pro Star Pilatus

1. Ownership

a. Henry Laughlin – 100% ownership

2. Principal business

a. New aircraft sales

b. Location: Manchester, New Hampshire

Back Country Aviation

1. Ownership

a. Henry Laughlin – 100% ownership

2. Principal business

a. Aviation management company

b. Location: Steamboat Springs, Colorado

Qualifications of Technical Personnel

The following key technical personnel meet the qualifications for their respective positions as set for the in sections 119.65 and

119.67 of the Federal Aviation Regulations.

Vaughn J. Crawford: Director of Operations

Michael Marczyk: Director of Maintenance/Chief Inspector

Michael DePasquale: Chief Pilot

Robert McCutchan: Director of Safety

### 56



# FINANCIAL POSITION AND

OPERATING PLANS

### 57

4. FINANCIAL POSITION AND OPERATING PLANS

The following are the financial statements of Altius Aviation, LLC for the years ending December 31, 2012, 2013, and 2014.

Additionally, the accounting policies are also included.

2014 Income Statement and Balance Sheet

### 58

### 59

201 2 and 2013 Income Statement and Balance Sheet

### 60

### 61

### 62 Altius Aviation, LLC Preparation of Financial Statements

August 2014 – December 2014

Th e Altius Aviation, LLC Financial Statements from August, 2014 through December, 2014 has been prepared internally in

accordance with generally accepted accounting principles in the United States. They have been prepared by Howard Yates,

CPA, the CFO of Northeast Air, Robert King, the Controller of Northeast Air, and Mark Goodwin, the General Manager of

Northeast Air. Northeast Air is an affiliated company of Altius Aviation, LLC with common ownership. Henry Laughlin owns

100% of Northeast Air. Combined, Mr. Yates, Mr. King and Mr. Goodwin have more than 70 years of experience in the

aviation industry, and all have significant experience in the business of chartering aircraft.

Howard Yates graduated with a BA in Economics from Colby College in 1971 and from the University of New Hampshire with

a Master of Business Administration with an emphasis in Finance in 1973. Howard graduated at the top of his MBA class. After

graduation, Howard worked for Price Waterhouse& Co. for four years, where he earned the title of Certified Public Accountant

in 1975 and focused his duties on auditing large corporations in various industries. For approximately 20 years, Howard served

as Vice President of Administration for Bath Iron Works. In this role he was responsible for all administrative functions of the

company including finance, contracts, human resources, and safety and management information services. He served as one of

two employee board members, participated in the establishment of corporate strategy with responsibility for keeping the Board

informed of the company’s progress toward it strategic initiatives. Between 1996 and 2004, Howard was the Chief Financial

Officer for Emery Waterhouse in South Portland, Maine. Howard was responsible for all financial and accounting functions of

the company. He was a member of a quality improvement team responsible for implementing new materials procurement

procedures which resulted in 500,000 annual savings. From 2004 until the present, Howard has been the Chief Financial

Officer for Northeast Air where his responsibilities include all financial and accounting functions of the company. Concurrent

to being CFO of Northeast Air, Howard is also CFO of Altius Aviation, LLC since August 2014. Howard is responsible for all

financial and administrative functions of the company and prepares accurate and timely budgets and financial reports for the

company.

### 63 Altius Aviation, LLC Summary of Significant Accounting Policies

August 2014 – December 2014

Business Activities

The company is engaged in the sale of on -demand charter and, once approved by the Department of Transportation, the sale of

scheduled commuter flights between various cities.

Use of estimates

Accounting statements prepared in conformity with generally accepted accounting principles in the United States requires the

use of estimates. Actual results could differ from those estimates.

Cash

The company considers cash in bank and other highly liquid investments with a maturity of less than three months as cash

(currently, none). The company maintains its checking account at two banks.

Accounts Receivable

The majority of receivables are from aircraft owners, principally for management fees and operating expenses that are the

owner's responsibility.

The company's commuter airline assumes that all trips will be paid by credit card on the day of the trip. As such, no Accounts

Receivable is being forecast in the future.

Inventories

The company's commuter airline will maintain spare parts at each of the terminal points, based on the aircraft model. Other than

those spare parts, no inventory will be maintained by the commuter airline.

Income Taxes

The company is treated as a partnership for income tax purposes. As such, the company does not generally pay federal or state

corporate income tax on taxable income. Instead, the owners are responsible for individual federal and state income tax on their

respective shares of the company's taxable income.

Property Plant and Equipment

The company owns no property, plant and equipment as of December 31, 2014. The cost of its Part 135 certificate has been

capitalized and is being amortized over 30 years. The company leases office and hangar space in Syracuse, NY at a rate of

$2,500 per month

.

Deposits

The company sells block time trips for one of its aircraft and the cash received is recorded as deposits. The deposits are reduced,

and income is recorded, when actual trips are flown.

### 64

Accounts Payable

The company generally pays vendors within 45 to 60 days. The related expenses are recorded when incurred. Payroll expenses

are recorded on a cash basis.

Revenue Recognition

Revenue for on-demand charter and commuter fares are recognized when trips are complete.

### 65 Altius Aviation, LLC Preparation of Financial Statements

January 2012 – December 2013

### 66

Liens or Encumbrances

There are no liens or encumbrances against any of the applicant’s or any relevant corporation’s assets, including those pledged

as collateral for any outstanding obligations.

Major Commitments

There are no major commitments into which the applicant or any relevant corporation has entered during the past 6 months, or

proposes to enter into during the next 6 months, including bank or other institutional financing, private financing, issuance of

bonds or stock in the applicant, or major contracts to perform services.

Transactions

There are no transactions in which the applicant or any relevant corporation sold or exchanged any major assets (aircraft, land,

buildings, etc.) during the past 6 months, or plans to sell or exchange within the next 6 months, including how any funds

realized from those transactions were, or are intended to be, used.

Liabilities

There are no liabilities of the applicant or any relevant corporation that are more than 60 days past due at the time of the

application, including the amount and the circumstances under which they are past due and will be paid.

Contingent Liabilities

There are no contingent liabilities that may have an effect on the applicant's or any relevant corporation's financial postur e (e.g.,

lawsuits, pending judgments), including plans to meet those obligations.

Statement of Significant Events

Henry Laughlin has made an additional capital infusion of $150,000 to cover operating expenses of Altius Aviation, LLC since

the preparation of the 2014 financial statements.

### 67

Service Proposal

Altius Aviation, LLC has identified an opportunity for commuter service in the northeastern US, with a focus on both leisure

and business travel. The commuter operation is planned to be a four aircraft operation, with aircraft being phased in over th e

course of the first year of operation. The following nonstop routes are planned to be flown for the commuter operation once all

aircraft are introduced into the schedule:

Route #1

Westchester County Airport (HPN) and Hanscom Field (BED ) – Year Round

 This market will link two major metropolitan regions in the northeastern US – New York City and Boston. It

is expected to be largely a business market, but also will appeal to the leisure traveler.

Route #2

Westchester County Airport (HPN) and Martha’s Vineyard Airport (MVY) – Summer/Fall

 Martha’s Vineyard is a very popular vacation and leisure destination for residents of the NYC metropolitan

region, and offering nonstop service is expected to stimulate demand for what is believed to be an

underserved market.

Route #3

Westchester County Airport (HPN) and Rutland-Southern Vermont Regional Airport (RUT) – Winter/Spring

 This market will link the New York City metropolitan region with one of the northeast’s premier ski

destinations in the state of Vermont.

Route #4

Albany International Airport (ALB) and Buffalo Niagara Int’l Airport (BUF) – Year Round

 There is a large community of interest between the Capital Region and the greater Buffalo region. This is

expected to be both business and leisure travelers. There are currently no nonstop flights between the two

airports.

Route #5

Syracuse Hancock Int’l Airport (SYR ) and Bradley Int’l Airport (BDL) – Year Round

 Strong business ties exist between these two regions and there are currently no nonstop flights linking the two

communities.

### 68

The first market to begin operating, HPN-BED, is expected to experience robust demand. As of the YE Q3 2014, over 1.3

million O&D passengers traveled between the three major NYC metropolitan airports (LGA, JFK, EWR) and Boston (BOS).

These passengers equated to over $280 million in gross revenue. Overall, the BOS market is the #13 O&D market when

combining all three of the NYC airports.

The summer/fall seasonal service between the NYC metropolitan region and Martha’s Vineyard, MA is expected to be popular

with tourists and leisure travel, as Martha’s Vineyard has long been a favorite vacation destination for residents of the NYC

metropolitan region. Available data suggests that there will be strong demand for such service.

While market data is not readily available for all proposed nonstop routes, based on Altius Aviation, LLC experience operating

an on-demand charter operation in the northeast it is expected that the other proposed routes will satisfy pent up demand.

### 69

Commuter Operational and Revenue Forecast

The following table illustrates the operational and passenger revenue forecast for the commuter airline’s service proposal for

the first twelve months of operation. It is assumed that there will be four aircraft flying and a breakdown of each of the four

aircraft required to achieve the below summary is detailed in the appendix.

The following is the expected commencement of each aircraft into service, as is also detailed in Exhibit H in the Appendix.

Aircraft #1: Pilatus PC12 (8 seats) beginning June 1, 2015

Aircraft #2: Pilatus PC12 (8 seats) beginning July 1, 2015

Aircraft #3: Pilatus PC12 (8 seats) beginning October 1, 2015

Aircraft #4: Pilatus PC12 (8 seats) beginning January 1, 2016

The following table summarizes the proposed daily frequency and timeframe for all of the proposed nonstop routes.

### 70

Commuter Income Statement and Balance Sheet

While there are ramp-up costs associated with the commencement of service during the first six months causing an overall

operating loss, the final six months indicate a profit once the airline is operating in steady state form.

### 71

Cost of Goods Assumptions for Commuter Airline Division

1. Pilot Salaries

a. A per month total cost for all pilots as they come on board

b. 8 PIC each at $80,000/yr when fully staffed

c. 8 SIC each at $50,000/yr when fully staffed

d. One PIC acting as Chief Pilot an additional $10,000/yr

2. Pilot Benefits

a. A per month total cost for all pilots as they come on board

b. Based on 20% of the PIC & SIC salaries

3. Pilot Training

a. A per event cost for full crew per aircraft flight training

b. 2 PIC costs $10,000/pilot/class - Flight Safety

c. 2 SIC costs $18,000/ pilot/class - Flight Safety

d. Four crew members per aircraft

e. $56,000 per training event

i. May-A/C #l

ii. June - A/C #2

iii. September - A/C #3

iv. December - A/C #4

4. Support staff total

a. A per month total cost for 3 employees for both salaries and benefits

i. 2 Flight Followers $40,000/yr each, plus 20% for benefits

ii. 1 Maintenance director $90,000/yr, plus 20% for benefits

5. Aircraft rental

a. A per month total cost for repayment to owner for aircraft use

b. Cost is calculated on an hourly rate, each trip leg of a daily flight is calculated at 1 hour.

c. Based on $ 1320 per hour to the aircraft owner

d. Ramp up schedule

i. Begins in June with 1 aircraft

ii. July - September has 2 aircraft total

iii. October - December has 3 aircraft total

iv. January - May has 4 aircraft total

6. Contract maintenance

a. A per month total cost for unscheduled maintenance

b. Standby maintenance on site per aircraft, per trip leg

c. $125 per trip leg

7. Supplemental lift cost

a. A per month total cost for back up aircraft during fleet scheduled maintenance.

b. Frequency assumption

i. Each aircraft is on a 150 hour inspection schedule

ii. Based on a 4 day scheduled maintenance event

iii. Averaged over the entire fleet per month

iv. Based on 50% need factor

c. The cost is an estimated $280 per flight

i. Current charter rate of supplemental lift $1600/hr

ii. Owner cost per hour already factored in $1320/hr

8. Landing fees

a. A per month total cost for airport landing fee of $50 per trip leg

### 72

9. Ramp fees

a. A per month total cost for Fixed Base ramp fee of $50 per trip leg

10. Customer service

a. A per month total cost Fixed Base fee of $50 per trip leg for one aircraft

b. For using the customer service personnel at an FBO to:

i. Verify identification of passengers

ii. Weigh bags

iii. Transport passenger bags to aircraft

11. Reservation service

a. A per month total cost for online reservation fee

b. Estimated at $6.50 per reservation

c. Using Radixx’s cost structure as a guide only (Radixx.com)

12. Payroll Expenses

a. A per month total cost for Administration personnel

b. The amount is 50% of current Charter certificate payroll expense

c. The amount includes 20% benefits

d. Based on payroll periods per month

e. Personnel

i. DO ($70,000 + 20%)/2

ii. DOM ($70,000+ 20%)/2

iii. DO Admin ($40,040 + 20%)/2

13. Interest on loan from owner

a. A per month total cost for interest for capital requirement loan from Owner

b. Capital requirement of $750,000

c. Annual interest rate set at 4.5%

14. Other Expenses

a. A per month total cost for each line item

b. The following categories are 50% of the corresponding current Charter certificate's expens es

i. Advertising

ii. Amortization

iii. Bank Charges

iv. Liability insurance

v. Health and Worker’s Compensation

vi. Office Expenses

vii. Rent or Lease of buildings

viii. Telephone/Internet

ix. QuickBooks payment fees

x. Accounting fees

xi. Consulting fees

15. Fuel Expense

a. Calculated by multiplying the monthly block hours by an assumed price of $5.02 per gallon

### 73

### 74

Charter Division Income Statement and Balance Sheet

### 75

Cost of Goods Assumptions for Altius On-Demand Charter

1. Aircraft Leases

a. The monthly flat rate for the leased King Air B- 200

Write off King Air Repairs

b. Repayment of prepaid capital improvements to Leased King Air B- 200

2. Aircraft Maintenance

a. King Air B-200 monthly maintenance costs

b. Based on $250 per hour/month

3. Engine Reserve

a. King Air B-200 monthly engine reserve costs

b. Based on $275 per hour/month

4. Altius Company Pilots

a. Company SIC’s

b. Based on two SIC’s at $769.23 per week

c. Based on the pay periods per month

5. King Air Pilots

a. Company King Air B-200 PIC & SIC

b. Based on the combined weekly salaries

c. Based on the pay periods per month

6. Aircraft Rental

a. The repayment to the aircraft owners

b. Based on the hours flown for the month

c. Based on the individual rate per hour of each aircraft

d. Aircraft

i. Lear 31 - $2300/hr

ii. Lear 60 - $2975/hr

iii. PC -12’s - $1360/hr

7. Owner Pass Through Expenses

a. Based on 5% for the aircraft rental expenses

8. Sales Commissions

a. Charter Sales function is outsourced

b. Monthly rate for charter sales company

9. Fuel Expense

a. Company King Air B-200 monthly fuel expense only

b. Based on the hours flown

c. 120 gallons per hour fuel burn

d. At a $5.02 cost per gallon

e. Other than the King Air, all other fuel expenses are owner responsibilities

10. Payroll Expenses

a. A per month total cost for Administration personnel

b. The amount is 50% of current Charter certificate payroll expense

c. The remaining 50% of expense has been allocated to the Commuter Airline Division

d. The amount includes 20% benefits

e. Based on payroll periods per month

f. Personnel

i. DO ($70,000 + 20%)/2

### 76 ii. DOM ($70,000 + 20%)/2

iii. DO Admin ($40,040 + 20%)/2

11. Other Expenses

a. A per month total cost for each line item

b. The following categories are 50% of the corresponding current Charter certificate’s expenses.

c. The remaining 50% of expense has been allocated to the Commuter Airline Division

i. Advertising

ii. Amortization

iii. Bank Charges

iv. Liability insurance

v. Health and Worker’s compensation

vi. Office Expenses

vii. Rent or Lease of buildings

viii. Telephone/internet

ix. QuickBooks Payment fees

x. Accounting fees

xi. Consulting fees

12. Dues & Subscription

a. Monthly allocation for technical publications

13. Training & Instruction

a. Company King Air B-200 pilot training

b. All training costs allocated over a 12 month period

14. Travel

a. All administrative personnel and pilot travel expenses

b. All travel costs allocated over a 12 month period

15. Travel Meals

a. All administrative personnel and pilot travel meal expenses

b. All travel meal costs allocated over a 12 month period

16. Scheduling Software

a. All charter quoting software costs allocated over a 12 month period

17. Interest on Loan from Owner

a. A per month total cost for interest for capital requirement loan from Owner

b. Capital requirement of $651,000

c. Annual interest rate set at 4.5%

d. Based on Owner’s total investment to date

### 77

### 78

Consolidated (Commuter and Charter) Income Statement and Balance Sheet

### 79

### 80

Estimate of Capital to Commence Operations

It is estimated that $940 ,000 will be needed to commence the commuter operations as detailed in this document. The basis of

this estimate is as follows:

1. Startup – Pilot Salaries ($22,500)

For the month prior to starting operations:

4 pilots salaries (1 st month only)

A. 2 PIC each at $80,000/year

B. 2 SIC each at $50,000/year

2. Startup – Pilot Benefits ($4,500)

For the month prior to starting operations:

A. 4 pilots salaries (1 st

month only)

B. Based on 20% of each salary

3. Startup – Pilot Training ($56,000)

A. A per event cost for full crew per aircraft flight training

B. 2 PIC costs $10,000/pilot/class – Flight Safety

C. 2 SIC costs $18,000/pilot/class – Flight Safety

D. Four crew members per aircraft

E. $56,000 per training event

4. Startup – Support Staff ($17,000)

For the month prior to starting operations:

A. First month total cost for three employees for both salaries and benefits

- 2 Flight Followers $40,000/year each, plus 20% for benefits

- 1 Maintenance Director $90,000/year, plus 20% for benefits

5. Stocked aircraft parts at each location of operation ($200,000)

A. 8 locations with $25,000 per location

6. Estimated losses for the first six months of operation including start-up costs ($525,000)

7. Estimated miscellaneous costs for the first six months of operation ($13,000)

8. Working capital deficit as of December 31, 2014 ($115,417)

Description of Proposed Form and Source of Capital to Support Commuter Operations

Financial statements and supporting financial information have been submitted under seal in accordance with Rule 12 of the

Department’s Procedural Rules.

There are no outstanding judgments against the applicant, relevant corporations, key personnel employed by each, or any

person having substantial interest in the applicant.

### 81



# COMPLIANCE

DISPOSITION

### 82

5. COMPLIANCE DISPOSITION

There are currently no pending enforcement actions or formal complaints involving the Statute, and the rules and regulations of

the Department, including the FAA, involving the applicant, its key personnel, relevant corporations, including any other

company in which the directors, principal officers, or owners of the applicant have or once had a substantial interest, or persons

having a substantial interest in any of these companies.

Compliance letters have been signed and inserted with the resumes in this application.

There have been no aviation related related accidents or incidents which the applicant or any of the key personnel has had either

during the year preceding the date of the application

, or at any time in the past that remains under investigation by the FAA, the

NTSB, or by the company itself.

Altius Aviation, LLC received a Letter of Correction in August, 2011 due to a conflict in its manuals relating to duty periods

and rest time. A Warning Letter was received in September, 2011 due to the operation of an aircraft with an open discrepancy.

These have been resolved and are not outstanding issues.

### 83



# APPENDIX

### 84

6. APPENDIX

Exhibit A

### 85

### 86

Exhibit B

### 87

Exhibit C

### 88

### 89

### 90

### 91

### 92

### 93

### 94

### 95

### 96

### 97

### 98

### 99

### 100

### 101

### 102

### 103

### 104

### 105

### 106

### 107

### 108

### 109

Exhibit D

### 110

### 111

Exhibit E

### 112

### 113

Exhibit F

### 114

Exhibit G

### 115

Exhibit H

Operational and Revenue Forecast By Aircraft