## BEFOR E TH E DEPARTMEN T O F TRANSPORTATION OFFIC E O F TH E SECRETAR Y WASHINGTON , D.C . nFPABTMENTOF , •,;, -r ] I 5 P U : 1 0

Applicatio n o f Ai r Charter , Inc . db aAi r

Flamenc o fo r authorit y to conduc t

schedule dpassenger

operation s a s a commuter ai r carrie r under 4 9 U.S.C . 4173 8 DOCKET

APPLICATIO N O F Air Charter , Inc . db aAir

Flamenc o Communication s wit

h rcspect to tlii s documen t

shoul db e sen

t to : Francisc o Torre s P O Box 81035 2 Carolina , P

R0098 1 Telephone(s) : (787)724-110 5 offic e

(787 ) 405-159 2 cell Fax : (787 ) 724-634 5 Email ; airflamenco@yahoo.co m Date o f Application : Octobe

r 15 , 201 0 Notice : An

y perso n who wishe s t

o suppor t o r oppos e thi s applicatio n mus t file a n answe r withi n 2 1 day s afte

r receipt o f th e applicatio n b y th e Departmen t o f Transportatio n andserv e tha t answer o n all person s serve dwit

h thi s application .

### CERTIFICAT E O F SERVIC E

I hereb y certif

y that I hav e on thi s da

y serve dth e foregoin g applicatio n fo r commuter

ai r carrie r authorit y b y first clas s mail , postag e prepaid , upo n th e person s show n i n th e followin g servic e list .

Ai r Charter , Inc . db aAi r

Flamenc o Francisc o Torre s Presiden t Date o f Service : November

30,201 0 SERVIC E LIS T FA A Fligh t

Standar dDistric t

OfTic e POI : Radame s Naveir a Address ; L aTorre d e Plaz ala s Amerita s 525F D Roosevel t

Ave . Suite 90 1 Sa n Juan , P.R . 0091 8 Puert o Ric o Port s Authorith y P.O . Bo x 36282 9 Sa n Juan , P.R . 00936-282 9 Isl aGrand e Airpor

t (SIG ) Manager : Jos e O . Gandi a Phone : (787 ) 729-879 0 Ceib aAirpor

t (CBA ) Managaer : Sigfredo River a Phone:(787)534-410 1 Vieque s Airpor

t (VQS ) Manager : Doming o River a Phone : (787 ) 741-835 8 o r

(787 ) 741-051 5 Culebr aAirpor

t (CPX ) Manager : Sigfred o Rivera Phone : (787 ) 742-002 2Tabl e o f Conten t Tabl e o f Content 2 I . Aplicatio n For

m3 II . Genera l Informatio n 4 A . Applicant' s Informatio n 4 1 . Addres s an dContac t

informatio n 4 2 . Applicant' s History 5 3 . Applicant' s Flee t

6 4 . Applicant' s Authoritie s Histor y 7 Ill.Corporat e Structur e an dOwnershi p 8 A . Applicant' s organizatio n 8 IV.Management

Expertis e andTechnica

l Abilit y 9 A . Organizatio n Char

t 9 B . Key Personne l Informatio n 1 0 V . Financia

l Positio n an dOperatin g Plan s 1 5 Vl.Complianc e Dispositio n 1 6 VII . Certificatio n 1 7 VIII . Other

Requirement s 1 8 A . Insuranc e an dLimit s o f Liabilit y 1 8 B , Name/Tradenam e Registratio n 1 8 IX.Exhibit s 1 9 Exhibit I - Safet y StandardAffidavit

2 0 Exhibi t 2 Ai r Cam'e r Certificate 2 1 Exhibi t 3 FAA Pre-Applicatio n Statemen t o f Intent 2 2 Exhibi t 4 Corporat e Goo dStandin g Certificatio n 2 3 Exhibi t 5 Swor n Affidavi t

o f Citizenshi p fo

r Francisc o Torre s 2 4 Exhibi t 6 Swor n Affidavi t

o f Citizenshi p fo

r Ruben Torre s 2 5 Exhibi t 7 Swor n Affidavi t

o f Citizenshi p fo

r Cayetan o Rodrigue z 2 6 Exhibi t 8 Resume s o f

Francisc o Torres , Ruben Torres , an dCayetan o Rodrigue z 2 7 Exhibi t 9 Financial Statemente a s ofDecembe r 31,200 7 2 8 Exhibi t 1 0 Financia l Statement s a s ofDecembe r 31,200 8 2 9 Exhibi t 1 1 Financia l Statement s a s o f Decembe r 31,200 9 3 0 Exhibi t 1 2 Financia l Statement s a s o f Augus t 31,201 0 3 1 Exhibi t 1 3 Forecast

Financia l Statement s fo r th e Mont h Endin g Novembe

r 30,2010-Octobe r

31,201 1 3 2 Exhibi t 1 4 Certificat e o f

Insuranc e 3 3 Exhibit 1 5 Interi mAgreemen t

3 4 Exhibi t 1 6 State Departmen t

Certificatio n fo

r Air Flamenc o 3 5 Exhibi t 1 7 Propose dSchedul e Flight s 3 6

## I . Aplicatio n For m

Se e attachmen t

Applicatio n for

mGS T 4507 .

## II . Genera l Informatio n

A . Applicant' s Informatio n 1 . Addres s an dContac t

Informatio n Ai r Charter , Inc . dyT)/

aAi r Flamenc o Physica l Address : Mailin g Address : Lindberg h Stree t

Lo t 7 , Sout h PO Bo

x 224 Ram p Culebra , P R0077 5 Isl aGrande , PR0090 7 Company phon e (787 ) 724-110 5 Company fa

x (787 ) 724-634 5 Contac t Person : Francisc o Toire s Position : Presiden t Phone:(787)405-159 2 Email : airflamenco(S),yahoo.com

## 11 . Genera l Informatio n (continued )

A . Applicant

Informatio n (continued) 2 . Applicant' s Histor y Ai r Charier , Inc . d/b/aAi r

Flamenc o (hereinafte

r refen-e da s Ai r Flamenco ) wa s incorporate dunde r th e law s o f th e commonwealt

h o f Puerto Ric o on Jun e 1,198 7 b y Mr . Edwin Tabale s andMs . Noem i Gonzalez . Mr . Tabale s wa s the n electe dPresident andMs . Gonzale z wa s electe dVice-President eac h acquirin g 50 % o f th e shares . O

n Augus t 25 , 1993 , Ai r

Flamenc o wa s certifie da s a n Air Carrier unde r th e Federa

l Ai r Regulation s Par

t 13 5 ON - DemandPassenger an dOn-Deman dCarg o Operations . Ai r Flamenc o ha

dafleet o f si x (6 ) aircraf

t consistin g o f

Dougla s DC-3 , Britten-Nomian BN- 2 Islander andPipe r Cheroke e Six PA 32 . Thes e aircraft s wer e use dfo r charter s an don-deman dflights . On Ma y 19,199 8 Ms . Gonzale z acquire d Mr . Tabale s share s o f

Ai r Charter , Inc . corporate shares . I n Ma y 19 , 199 8 Ms . Gonzale z donate dhe r Ai r Charter , Inc . corporat e share s t o he r son s Rube

n Torre s an dFrancisc o Torres , wit h 50 % o f th e share s eac h an dwit h on e aircraft , aPiper

Cheroke e Six PA-32 . Under th e by-law s o f

th e corporatio n ameetin g wa s hel dandMr . Francisc o Torre s wa s electe dPresident-Treasurer an dals o Resident

Agent , Mr . Rube n Torre s wa s electe dVice-President - Secretar y o f th e corporation . I

n Marc h 15 , 200 0 an

dby corporate resolutio n resolve dtha

t th e Corporatio n wil l als o d o busines s under th e commercial nam e o f

Ai r Flamenco . Soo n afte r th e transfer

o f Ai r Flamenc o acontrac t

wa s negotiate dwit

h UP S t o fl

y thei r carg o t o th e island s o f Vieque s an dCulebra . Tha t sam e yea r (1999 ) th e Unite dState s Postal Servic e pu t ou t bid s i n whic h Ai

r Flamenc o wa s awarde dacontrac t t o transpor

t th e U.S . mai l fro

mth e Sa n Juan , Puert o Ric o hub t o th e island s o f Vieque s an dCulebr awhich ar e locate deleve n an deightee n nautical mile s fioni th e easter n par t o f th e mai n lan do f

Puert o Rico , respectively . Du e t o th e lack o f areliable ferr

y system(whic h i s operate d b y th e Puert o Ric o Port

Authority ) t o Vieque s an dCulebr aIslands , i

n th e subsequent

year s th e volume o f passenger s andcarg o ha s increase dt o alevel tha t th e compan y ha s hadt o acquire dadditional aircraft s of a higlier capacit y (suc h a s th e Britten-Norma n BN- 2 Islander ) t o suppor t th e demand s o f

th e regio n particularl y th e Sa

n Juan , Vieques , Culebraan dno w Ceib aformerl y Roosevel t Road s Nava l Ai r

Station . Durin g th e month s o f

Novembe r

thr u Februar y an dMa y thr u Augus t th e volume o f

passenger s andcarg o als o increases . Therefore , durin g thes e high season s th e number s o f flints als o increases . A continue dan d reliabl e servic e fromAi r Flamenc o ha s connecte dth e resident , businesses , government agencies , tourism(internal an dexternal ) makin g i t a n essential an dmuc h neede dservice s whic h provid e fo r th e resident s to commute t o atten dmedica l appointment s andtreatments(suc h a s dialysis , chemotherap y an d militar y veteran s that

atten dth e Veteran s Hospital whic h i s locate do n th e mai n landi n Sa n Juan , Puert

o Rico) , government

transaction s an

dother family matters . Touris mi s on e o f th e primar

y source s o f employment

an deconomi c impac t

i n thes e island s o f

Vieque s an dCulebra . Our service s i s a

n important link t o th e econom

y o f th e island s sinc e i t

i s th e feede

r for hotels , gues t

houses , restaurants , taxis , ca r rentals , weeken drental house s andman y othe r areas . Thes e activitie s wil l b e covere dwit h 8 flight s o

n schedul e dail y fromIsl aGrand e t o Culebr aan d9 flight s o n schedul e dail y fromCeib aan dCulebra . T o mee t th e busines s requirement s Air Flamenc o cun-en

t facilitie s includ e a22,665.3 2 sq/f t hanga r wit h 24,197.1 8 sq/f

t o f ram p spac e i n Isl aGrand e Airpor

t at Sa n Juan , Puerto Rico . Al l corporate an d management

office s ar e locate dwithi n th e hangar . Al l aircraf t heav y maintenanc e andinspection s ar e performe dby qualifie dFAA Certifie dAirfram e an dPowe r

Plant Mechanic s wit

h th e exceptio n o f

tli e avionics , engin e overhaul s an dpropeller s which ar e subcontracte dt o FA A Certifie dRepai r

Stations . A stoc k o f commo n an dfrequentl y use dmaintenanc e component s an dpart s ar e maintaine di n astockroo m insid e th e hangar .

## II . Genera l Informatio n (continued )

1 . Applican t

Informatio n (continued ) 3 . Applicant' s Flee t Ai r Flamenc o i s conductin g operation s under 1 4 CF RPar t 13 5 usin g th e flee

t liste di n th e followin g table : AIRCRAF

T § moiG D m03G D N904G D N90SG D N906G D m07G D N908G D N909G D N913G D N82JR R SEATTi m

9 Seat s 9 Seat s 9 Seat s 9 Seat s 9 Seat s 9 Seat s 9 Seat s 9 Seat s 9 Seat s 9 Seat s CAPACIT

Y CARGO(POVNDS ) AVGISO O AVGISO O AVGISO O AVGISO O AVGISO O AVGISO O AVGISO O AVGISO O AVGISO O AVGISO O TYP E Islande r Islande r Islande r Islande r Islande r Islande r Islande r Islande r Islande r Islande r MODE

L BN-2 A BN-2A BN~2 A BN-2A BN-2A BN-2 A BN'2 A BN-2 A BN-2 A BN-2 B OWNE

D O R LEAS E Owne d Owne d Owne d Owne d Owne d Owne d Owne d Owne d Owne d Owne d I F

LEASE D LESSO R N/ A N/ A N/ A N/ A N/ A N/ A N/ A N/ A N/ A N/ A Exliibi t I i s th e swor

n affidavit statin g tha t

th e aircraft s liste da s curren t fleet comply wit

h th e FAA safef

y standards .

## II . Genera l Informatio n (continued )

B . Applicant

Informatio n (continued ) 4 . Applicant' s Authoritie s Histor y Ai r Flamenc o i s authorize dt o conduc t operation s under

th e provision s o f

Titl e 1 4 CFRPar

t 135 . Th e followin g i s th e description s o f specia l authorization s andlimitations ;

• Conduc t

Par t 13 5 aircraf

t operation s without

adeicing/anti-icin g procedure . • Accept , handle , an dcarr y material s regulate da s Hazardou s Material s (HazMat) . • Us e onl y actual passenge r andbaggag e weight

(n o combination s o f

averag e an dactual weights ) for al l it s aircrafts . • Issu e a

n Internationa l Civi l Aviatio n Organizatio n (ICAO ) ai r operato r certificate (AOC ) throug h th e Operatio n Safet

y Syste m(OPSS) . • Us e a n approve dMinimu mEquipment Lis t (MEL) . • Us e a n aircraf t witl i nin e passenger

seat s witl i th e additional maintenanc e requirement s o f 1 4 CF R Sectio n 135.42 1 applicabl e fo r aircraf t engine , propeller

an dpropeller

contro l (governor) . • Us e a n aircraf t with nin e passenger

seat s wit h th e additional maintenanc e requirement s o f 1 4 CF R Sectio n 135.42 1 applicabl e emergenc y equipment . • Us e weigh t

an dbalanc e contro l procedures . Ai r Flamenc o i s authorize dt o conduc t en route operation s in th e area s specifie di n th e followin g list :

• Caribbean - Island s an dCountrie s o f th e Caribbea

n Se ain th e Easter

n Caribbean (Lesse r

Antilles) . • Caribbea

n - Island s andCountrie s o f th e Caribbea

n Se ain th e Greater

Antille s Area , excep t

th e island o f Cuba . • Caribbea

n - Island s an

dCountrie s o f

th e Caribbea

n Se ai n th e Norther

n Caribbean Sea , excep t

th e islan do f Cuba , • Caribbea

n - Island s an dCountrie s o f th e Caribbea

n Se ain th e Souther

n Cai'ibbea

n area . • US A - Th e 4 8 contiguou s Unite dState s an dth e Distric t

o f Colombia . Th e FA A Ai r Carrie r Certificate number

UOIA83I U reissue di

n Apri l 16 , 2009 ; refe

r t o Exhib h 2 Air Carrier Certificate . Ai r Flamenc o ha s alread y sen t aPre-Applicatio n Statement o f Inten t (Exhibi t 3 ) t o FAA t o chang e current registratio n t o Commute r Ai r Carrier a s per FAR119.3 . Th e reques t wa s issue dt o FA

A Principa

l Operation s Inspecto r

Mr . Radame s Naveir ao n October 6 , 2010 . Mr . Naveir areport s t o FAA/Sout h Florid aFSDO-1 9 Offic e whic h office s are locate dat 52 5 FD Roosevel t

Ave. , L aTorr e d e Plaz aLa s Americas , Suite - 901 , Sa n Juan , PR00918 ; telephon e number (787 ) 764-6345 , extensio n 254 . Air Flamenc o i s als o registere da s approve deffectiv e dat e Apri l 21 , 201 0 t o perfor mai r tax i operatio n on demandpassenger

/ o n demandcaig o under th e Pai t 29 8 o f tli e Unite dState s Departmen t o f Transportation .

## III . Corporat e Structur e an dOwnershi p

A . Applicant' s organizatio n Ai r Flamenc o i s aclose dcorporatio n formedi n th e Commonwealt

h o f Puert o Ric o o

n Jun e 6 , 1987 . Th e Exhibi t 4 i s astatemen t

fro mth e Offic e o f

th e Secretai y o f

Stat e wher e th e agenc y state s tha t Ai r Flamenc o i s a compan y i n goo dstanding . Ai r Flamenc o partner s (Francisc o Torre s an dRuben Torres ) ar

e citize n o f

th e Unite dState s a s show n i n th e swor n affidavit s Exhibit s 5 an d6 respectively . Ai r Flamenc o ha s authorize dth e issu e o f 1 , 000,000 0 commo n stock s wit h apa r valu e o f $1.00 . Ai r

Flamenc o ha s issue d1,00

0 commo n stock s t o Francisc o Torre s an dRuben Torre s (shareholders ) i n equa l portion s $500.0 0 each . Th e followin g tabl e i s th e informatio n o f th e Air Flamenc o shareholders : Nam e an dAddres s Francisc o Tone s Address : 40 0 Bo . Tortug o Ap t #3 6 Sa n Juan , P R0092 6 Rube n Torre s Address : Urb . Mansione s Reale s Call e Princip e d e Asturia s Guaynabo , PR0096 9 Votin g Share s 50 0

50 0 % o f

Tota l Share s Outstandin R 50 %

50 %

Th e bloo drelationshi p o f

brother s o f

Francisc o Torre s an dRuben Torie s wa s establishe di n th e Sectio n 11(A)(2

) o f thi s document .

## IV . Managemen t Expertis e an dTechnica l Abilit y A . Organizatio n Char t AI R FLAMENC O ORGANIZATIO N CHAR

T

lega l Depstmen l !

' i VfcePresktei l Optfafons OliMtoro f ::.• • I Accnintin g Oopaitmen i Administrat e | Asttstai l 1

Gensra l Manage r

SateslMaMin g AirCog o f!e»ivatian $

CaiflOHmdle r

^ r



## ^? r FSghlCVMiation OiiorPilo t

PiM s

Statio n Manage r 

# «ss s

Uedhm s Helper t PuUicRalatlo n

tela Grand e SI Q CeAi e CB A

COMK B CP X

1 . ON E MECHANI C FO REVER Y TW O (2 ) AIRCRAFT S 2 , ONEANDHALFd.SjCRGWKERAlRCRAr T ) . ON E (1 ) AGEN T 1T. RCOUNTER , ON E (] ) BAGGAG E HANDLEI t ?E R COUNTE RAGEN T

## IV . Managemen t Expertis e an dTechnica l Abilit} ' (continued ) B . Ke y Personne l Informatio n Thi s sectio n contain s informatio n o f th e ke y personne l position s andresponsibilitie s suc h a s Directo r o f Operations , Chie f

Pilot , andDirecto r

o f Maintenanc e o f

Ai r Flamenco . Th e ke

y pereonne l performin g thes e position s are Fi-ancisc o Torres , Rube n Torre s andCayetan o Rodrigue z respectivel y wh o ar e U S citizens . Pleas e refer t o Exhibi t

5 , 6 , 7 fo

r th e swor n affidavit s o f

citizenship . Furthermore , th e Directo r o f Operation s an

d Directo r o f Maintenanc e qualification s mee t th e requirement

se t fort h in th e section s 119.6 9 an d119.7 1 o f th e Federal Aviatio n Regulatio n (1 4 CF R119.6 9 and119.71) , th e Chie f Pilo t currentl y meet s th e requirement o f section s 119.6 9 an

dth e 119.71(d ) an d119.71(d)(1 ) o f th e Federal Aviatio n Regulatio n (1 4 CFR119.69 , 119.71(d) , 119.71(d)(1) . However , i t i s expecte dtha

t th e Chie f Pilo t complete s di e FA

A requirement s for

Air Transpor t Pilo t withi n th e cours e o f

evaluatio n o f

thi s application . Ai r

Flamenc o wil l notif

y th e Departmen t

o f Transportatio n upo n completion . Thei r resume s are include di

n th e Exhibi t

8 . Francisc o Torre s Position : Presiden t

Hire dDat e Jul y 1,199 8 Stocks : 50 % Citizenship : US A Responsibilities : 1 . Responsibl e fo

r th e tota l compan y operation . Management personne l whic h prior

t o th e Compan y conduc t afligh t o r aserie s o f

flights, mus t

deteitnin e i f

th e flight can b e conducte dsafely an di n accordanc e wit

h th e regulations , th e operation s specifications , an dAi r Flamenc o Standards , procedure s an dpolicie s contauie d in thi s Compan

y Operation s Manua l (C.O.M. ) an dsupporte db y th e Trainin g Manual . Althoug h h e ma y delegate thi s responsibilit

y t o othe r personnel , th e ultimate responsibilit y i s his . 2 . If a n emergenc y involvin g th e safet y o f passenger s an dapilo t

deviate s froman

y rul e i n FA RPar

t 135 , i t wil l b e th e responsibilit

y o f th e Presiden t

t o sen dt o th e neares t

FAA Distric t

Offic e acomplete repor

t o f th e aircraf t operatio n involve dwithi n 1 0 days , includin g adescriptio n o f th e deviatio n andth e reason s fo r it . Th e President

wil l b e responsibl e for

notificatio n o f

overdu e aircraf

t a s outlin e i

n thi s manual an dh e will als o b e responsibl e fo

r acciden t notificatio n a s pe r

NTS B 830 . 3 . Th e President

shal l b e responsibl e for

recruitin g andterminatin g al l company personnel . H e ma y delegate thi s responsibility t o othe r person s wit

h management

responsibilities . The Presiden t wil l b e highl y knowledgeabl e o f

th e compan y manual , FA A Regulations , stat e an

dgovernmen

t law s an dregulation s pertainin g t o tii e dutie s o f

hi s position . 4 . Th e Presiden t

shal l b e responsibl e for :

• Saf e employee s environment , trainin g

• Goo dBusines s practic e

• Equipment s (aircraft) availability u s business . Need s o r developmen t

• Investment

& Expansio n

• Marketin g 5 . Interactio n wit

h loca l Governmen t

Agenc y Por

t Authority , Healt

h Dpt . Municipals , etc . 6 . Establis h current

an dlon g rang e goals , objective , pla n an dpolicies . 1 0

## IV . Managemen t Expertis e an dTechnica l Ability (continued ) B . Ke

y Personne l Informatio n 7 . Revie w Activit

y Report s an dFinancia

l Statement s t o determin e progres s an dstatu s in attainin g objectiv e andrevis e objective s an dplan s i n accordanc e wit

h curren t conditions . 8 . Plans , coordinate s an dcontrol s th e Dail y Operation s o f tli e Organization s manager . 9 . Plan s an ddevelop s market , labor an dpubli c relation s policie s designe dt o improv e Company' s imag e an d relation s witli Customer , Employees , Government Agencie s an

dPublic . 10 . Evaluat e performanc e o f subordinate fo

r complianc e wit

h regulator

y agencies , policie s an dobjectives . 11 . Establis h an dmaintai n a n effectiv e syste mo f

communicatio n throughou t th e organizatio n 12 . Ensure s asaf

e workin g throughou t

th e environment

fo r al l level 13 . Wil l establis h an dsupervis e Trainin g Progra mfor Regulatio n Complianc e an dtlios e relate dgenera l busines s activities . Francisc o Torre s Position : Directo r

o f Operation s Dat e Hired : Septembe r I'" , 200 3 Stocks : 0 % Citizenship : US A Responsibilities : 1 . Responsibl e for

overal l operational function s o f tli e Company . 2 . Prio r t o conductin g apar

t 13 5 Flight , mus t

determin e tha

t th e Flight or serie s o f flight ca n b e initiated , conducte do r

terminate s safely i n accordanc e wit h regulations , operation s specifications , C.O.M . an dsupporte d by th e trainin g program . 3 . Maintainin g liaiso n wit h th e FAA , coordinatin g an dimplementin g additions , renewal s an damendment s t o th e Operatio n Specifications , an ddirectin g andcoordinatin g th e writin g an drevision s o f th e Operatio n Manual . 4 . Operational responsibility fo r Compan y Aircraf t acciden t reporting t o appropriat e government , industr y and communit y groups , 5 . Constantl y bein g on aler t fo r discrepancie s an dhazaixi s o f any natur e observe do r

reporte dwhic h might

hav e a n advers e effec t

o n saf e operations , 6 . Shal l formulate policie s an dpractice s for maintainin g ahig h degre e o f proficienc y an dprofessionalis mt o ensur e flight

an dgroun dsafet

y ar e neve r jeopardized . 7 . Wil l establis h an dsupervis e agroundandflight trainin g progra

mfor th e initial , recurrent

an dother s type o f trainin g o n compan y documentatio n o f flight Cre w Personnel . 8 . Wil l b e responsibl e for

th e correc t

maintainin g o f

record s report s andchec k

ride s unde r

th e curren t

FAR s are includin g al l compan y documentatio n o f flight Cre w Personnel . 9 . Qualification s an dtrainin g o f al l crewmembers , includin g check ride s andascertain s that

Fligh t Cre w Member s maintainin g proficiency , an dmaintainin g al l Fligli t

Cre w Record . 1 1

## IV . Managemen t Expertis e an dTechnica l Abilit y (continued ) B . Ke

y Personne l Informatio n 10 . Furnishin g al l aircraft s wit h navigationa

l aids , Route Chart s an dany necessai y manua l t o conduc t

asaf e flight. 11 . Furnishin g flight

personne l witli informatio n o r instruction s o n flight

procedure s andpmctice . Position : Pilo t

i n Comman dDat e Hired : Septembe r 1"' , 200 3 Stocks : 0 % Citizenship : US A 1 . Us e goo dJudgment

in any situation s 2 . Kee p hi s medica

l certificate curren t

an dfuniis h acop y t o th e Presiden t 3 . Repor t fully prepare dfor

any groun dan

dflight trainin g schedul e b y th e Compan y 4 . No t consume any alcoho l beverage s includin g beer for aperio do f

at leas t 8 hour s befor

e th e tim e he/sh e i s t o repor t fo r dut y 5 . Compl y wit

h al l dut y an dflight

limitation s o f

FAR' s Rube n Torre s Position : Vice-Presiden t

Dat e Hired : Septembe r 1** , 200 3 Stocks : 50 % Citizenship : US A Responsibilities : 1 . Coordinate s Operational Policie s an dProcedure s wit h th e Presiden t

an dassis t i n executin g thos e policie s an dprocedures . 2 . Ensure s prope r

repor t structure withi n th e Company . 3 . Hel p identif

y opportunitie s andarea s for improvement s withi n th e Company . 4 . Advis e th e Presiden t

o f th e Compan

y o n Strategi c Busines s Developmen t an dkey Corporate plannin g issue s that relate an dimpac t

th e operations . • Determin e resource s allocation . • Kee p th e Presiden t

informe dabou t

Busines s activities , performance , opportunitie s an drecommende d cours e o f action . 5 . Se t performanc e goal s tai lore dt o eac h activity . • Maintenanc e Schedule s 6 . Implement s productivit y / qualit y metric s designe dt o minimiz e cost s an denhanc e safet y an defficiency . 7 . Plan layout s workflo w aircraf t maintenanc e procedures . 8 . Recruits , hires , coache s an ddevelop s staff . 1 2

## IV . Managemen t Expertis e an dTechnica l Ability (continued ) B . Ke

y Personne l Informatio n 9 . Assis t tli e Presiden t

of th e Company in budge t

preparation , shor

t ter mandlon g ter

mgoal s wit

h overal l corporat e objective . 10 . Ensure s tha t

workin g area s comply wit h OSHA , PROSHA , EP

A an dany otlie

r regulatio n agency . 11 . Ensure s tha t

operation s are conducte dunder FAR1 3 5/11 9 for

commuter

Air Charter , 12 . Perform s additional assignment s a s require db y th e need s o f

th e Company , o r

a s Directe db y th e President . Rube n Torre s Position : Chie f

Pilo t Dat e Hired : Septembe r 1 % 200 3 Stocks : 0 % Citizenship : US A Responsibilities : 1 . Maintain s familiarit

y wit h th e operatio n o f

ai l station s an dreport's findings andrecommendations t o th e Directo r o f Operations /

President . 2 . Wil l b e responsibl e fo r th e Correc t

Maintainin g o f

Pilo t Record s andchec k

ride s under

th e curren t

FA Rar e includin g al l company documentatio n o f Flight Cre w Personnel . 3 . Revie w report s on pilot s performanc e an dreport s t o Federal Aviation s Administratio n any circumstantial o f non-conformance s t o FAR's . 4 . Conduct s Company cre w membe r trainin g an dstandardizatio n an dpilo t training . 5 . Monitor s airplan e flight manua l cre w activities , trac k

cre w cunenc y an densure s "AFM " currency , 6 . Furnishin g Flight

Personne l witli navigational aids , Rout e Chart s an dissuin g instruction , bulleti n o n flight procedure s andpractices . 7 . A s on e o f

th e management

personne l h e mus t

determin e andhav e sufficien t knowledg e o f

th e following : 8 . Whether

apar t 13 5 flight

o r serie s o f flights ca n b e initiated , conducted , or terminate s safel

y an dprocedure s approve di

n Ai r Flamenc o operation s specifications , company operation s manua l andth e appropriate regulations . 9 . Pilo t in Comman d 10 . Us e goo dJudgmen t

i n any situation s 11 . Kee p hi s medica

l certificat e current an dfurnis h acop y t o th e Directo r o f Operatio n Position : Pilo t

i n Comman dDat e Hired : Septembe r l'^ , 200 3 Stocks : 0 % Citizenship : US A Responsibilities : 1 . Us e goo dJudgmen t

i n any situation s 1 3

## IV . Managemen t Expertis e an dTechnica l Abilit y (continued ) B . Ke

y Personne l Informatio n 2 . Kee p hi s medica

l certificate curren t

andfurnis h acop y t o th e President 3 . Repor t fully prepare dfo

r an y groundan dflight

trainin g schedul e by th e Company 4 . No t consum e any alcoho l beverage s includin g beer fo r aperio do f

a t leas t 8 hour s before tli e tim e he/sh e i s t o report fo r dut y 5 . Compl y wit

h al l duf y an dflight

limitation s o f

FAR' s Cayetan o Rodrigue z Position : Directo r

o f Maintenanc e Dat e Hired : Jul y 15,200 2 Stocks : 0 % Citizenship : US A Responsibilities : 1 . Responsibilit

y t o se e tha t

th e Company' s aircraf

t ar e maintaine di

n accordanc e wit

h airworthines s standard s prescribe db y applicabl e regulations . Airworthines s Directiv e (AD's ) an dstandardaviatio n practice . Wil l b e responsibl e t o complete al l require dreports. 2 . Hi s dutie s consis t

o f ensurin g tha

t th e approve daircraf

t inspectio n progra

mi s curren t

for al l aircraft ; ensurin g tliat

al l applicabl e AD' s ar e complie dwithi n th e specifie dtime, an dretainin g achronological listing , devisin g asyste mfo r retainin g th e aircraft' s tim e i n service , ensurin g complianc e wit h reweighing multiengin e aircraf

t fo r ever y 3 6 months , an dcertifyin g lis t o f equipmen t installe dfor

establishin g empt

y weigh t an dbalance . 3 . H e monitor s aircraf

t empt y weight an dbalanc e revising th e equipment lis t andempt y weigh t an dbalanc e dat awhe n required . H e ensure s tha t a n accurat e recor di s retaine dfo r al l maintenanc e performe don company aircraft . H e ensure s tha t al l discrepancie s are acorrecte do r deferre db y appropriatel y certifie d persons . 4 . H e ma

y delegat e th e authorit

y t o perfor mhi s duties , but

retain s th e responsibility . 5 . Th e Directo r

o f Maintenanc e shall b e a

n employe e o f

th e company . I f

maintenanc e i s contracte dout , th e Directo r o f maintenanc e shal l provid e th e person(s ) performin g maintenanc e andinspection s wit h appropriat e company form s andmanual . Th e Directo r o f maintenanc e report s t o th e President . Position : Mechani c Dat e Hired : Septembe r 1'* , 200 3 Stocks : 0 % Citizenship : US A Responsibilities : 1 . Perfor m50 , 100 , 50 0 an d100

0 hr s inspectio n an dlin e check s includin g trouble s hootin g 2 . Perfor mlin e maintenanc e 3 . ME L Managemen t

Progra m 4 . Weigli an dBalanc e Progra m 5 . Suspec t

Unapprove dPart s 1 4

## V . Financia l Positio n an dOperatin g Plan s

Ai r Flamenc o financial statement s for th e year s 2007,2008 , an

d200 9 ar e par

t o f .Exhibi t 9,10 , and1 1 respectively . Statement s correspondin g 201 0 ar e par t o f Exhibi t 12 . The forecas t

financial statement s ar e shown i n Exhibi t 1 3 whic h contain s Ai r

Flamenc o Forecas t

financial informatio n unde r th e commuter

ai r carrie r operations .

1 5

## VI . Complianc e Dispositio n

Ai r Flamenc o ha s a

n excellen t

complianc e record s wit

h th e law , rales, an

dregulation s o f

th e FAA , DO T an

dloca l governmen t

agencies . Tlier

e i s neither

pendin g enforcement

actio n no r

forma l complaint s on file tha

t involve s Ai r Flamenc o i

t Stature s o r

Directive . However , th e FAA ha s issue da n investigatio n letter

date dAugus t

23 , 201 0 statin g FA A discovere dthat

Air Flamenc o ma

y hav e bee

n conductin g scheduled , o r acommuter

operatio n whic h i s outsid e th e scop e o f

thei r carrie r certificat e an dauthorit

y contrar y t o Federa

l Aviatio n Regulatio n (FAR ) 1 4 CF R 135. 3 (a) 1,135.24 3 (a) . 119.3 , 119. 5 (g) , (i) , (k) , (1) . Th e investigatio n i s ongoing , a t th e presen t

time, th e FA

A ha s no t take n lega

l action s t o revoke o

r cance l Air

Flamenc o certificate . However , Air

Flamenc o directive s ar e takin g action s t o reques t bot h th e FA A andDepartmen t

o f Transportatio n fo

r ane w certificate andautliorit y respectivel y t o compl y wit h FA R135,119 an dDO T Par

t 298 .

1 6

## VII . Certificatio n

Pursuan t t o Titl e 1 8 Unite dState s Cod e Sectio n 1001, 1 [Francisc o Torres] , i n m y individua

l capacity an da s th e authorize drepresentativ e o f th e applicant , hav e no t

i n any manner

knowingly an

dwillfull y falsified , conceale do r faile dt o disclos e any materia l fact or mad e any false , fictitious, o r fraudulen t statement o r knowingl y usedan

y document s which contain s suc h statement s i n connectio n wit

h preparation , filing 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 US C sectio n 100 1 shal l b e fined o r imprisone dnot

mor e tha n five years , o r

both . '^!t<&9^LiSk..<0 ^

y^^-'-Q- - yc>l/ ' l^oi o Francisc o Torre s Presiden t Ai r Flamenc o

1 7

## VIII . Othe r

Requirement s A . Insuranc e an dLimit s o f Liabilit y Se e Exhibi t

1 4 an d1 5 fo

r Certificat e o f

Insuranc e (OS T Form6410 ) an dth e Interi mAgreemen t (OS T Fon n 4523) .



## B . Name/Tradename Registratio n I n Marc h 15 , 200 0 andby corporat e resolutio n resolve d"Tha t th e Corporatio n wil l als o d o busines s unde r di e commercial nam e o f

Ai r Flamenco . Ai r

Flamenc o wil l no t

b e aseparat e entity fromAi r Charter , Inc . Th e us e o f th e commercial name wil l onl y b e for th e purpos e o f

marketin g an dpublicity" . Th e registratio n o f Ai r Flamenc o wa s certifie db y th e Governmen t o f Puerto Ric o Department

o f Stat e in Sa

n Jua n o n Apri l 3,200 0 a s state din th e certificate show n in Exhibi t 16 . I n addition , th e Federa

l Aviatio n Administratio n ha dissue dan

dapprove dth e Operation s Specificatio n t o Ai r Flamenc o

1 8

## IX . Exhibit s

Al l Exhibit s star

t i n nex t page .



### 1 9

# Exhibi t 1 - Safet y Standar dAffidavit

2 0

### AFFIDAVI T O F SAFET Y COMPLIANC E

STATE O F PUERT O RIC O COUNT Y O F SA

N JUA N Francisc o Torres , bein g first dul y sv^rom

, depose s an dsays : 1 . Tha t h e i s dul y elected , qualifie dan dservin g a s President , o f Ai r Charter . Inc . d/b/aAi r Flamenco , an dtha

t h e i s authorize dt o an ddoe s mak e thi s affidavi t

fo r it . 2 . Tha t al l aircraf t owne dby Ai r

Charter , Inc. , d/b/aAi r

Flamenc o hav e been certifie db y th e Federal Aviatio n Administratio n an dcurrentl y comply wit h al l applicabl e Federa

l Aviatio n an d Administratio n safet

y standard s imde

r part s [ 12 1 ] [ 135] , a s wel l a s th e nois e standard s o f Par t 3 6 o f th e Federal Aviatio n regulations .

".^•l-'tCtHsS^ ^ 

### AfFidavit:52 9 Subscribe dan dswor

n t o befor e m e by Francisc o Torres , o f lega l age , singl e an dresiden t

o f San Juan , Puerto Rico . I

n Sa n Juan , Puert o Rico , thi s 28 * day o f September , 2010 .

\^^ - 

# : X

# Exhibi t 2 Ai r Carrie r Certificate

2 1USOeponmen t

CTronsportOtio n 

# Ai rCarrie rCertificat e

Thi s certifie s tha t Ai r Charter , Inc . Lindber g Stree t Sout h Ram p Lo t 7 Fernand o Lui s Riba s Dominicc i Airpor t Sa n Juan , P.R . 0090 7 ha s met th e requirement s o f th e Federa l Aviatio n Ac t o f 1958 . a s amended , an d ttw rules . regulations , an d standard s prescribe d thereunde rfo rth e issuanc e o f thi s certificat e an d i s hereb y authorize d t o operat e a s a n ai rcarrie ran d conduc t commo n carriag e operation s i n accordanc e wit h sai d Act an d th e rules , regulations , an d standard s prescribe d thereunde r an d th e terms , conditions , an d limitation s containe d i n th e approve d operation s specifications . Thi s certlticat e i s no

t transferabl e and , unles s soone rsurrendered , suspended , o rrevoked , shal l continu e i n effect indefinitely . B y Directio n o

f th e Admini^rato r

Certificat e number : UOIASSI U ^ 

### t* - Sergi o Lope z Effectiv e date : Augus t

25 . 199 3 Reissued : Apri l 16 , 200 9 Issue dat . SO-1 9 (Signature ) 

### Manage r S F FSD O (Tiile ) 

### Souther n Region/FSDO-1 9 (Region/Office )

FA A For m 84301 8 (6S7 )

# Exhibi t

3 FA A Pre-Applicatio n Statemen t o f Inten t

22Forir i Approve d 0M B No . 2120-059 3 01/31/200 8 ^ 

### PREAPPLICATIO N STATEMEN T O F INTEN T u s Departmen t o f Transportatio n Federa l Aviatio n Adn^inistratlo n Piftmot k

Reductio n Ac t Stalemant ; Tlll e 4 9 U.S.C. , Sectio n 4470 2 empower s th e Secrel«j y o f Transportaiio n t o isiu e ai rcarte roperetin g certificate s an d t o »tat>lte h minimu m eafet y standard s fo rlii e operatio n o f th e ai rcaitia r( o who m sucl i certiticato s ar e issued . Th e eomplete d Proapplicalio n Stalemo m o f Inten t (PASI ) denote s a n Inten t ti y th e applican l l o continu e tft e cortirffiallo n process . Tti e loca l FA A Ftisii l Standard s Oisttic l Offic e (FSDO ) use s Di e PAS I I D eialuat e th e compiexit y o f th e propose d operation . Th e FA A wil l us e th e Infomatlo n i t oolleot s ars i review s t o ensur e compliano e an d adherenc e t o regulallan s and . i f necessary , tak e enloroemen l actio n o n violntoi s o f th e regulations . Tti e FA A estimate s th e averag e tHiide n forthi s oenirical e applicatio n process , t o includ e pnxessin g o f thi s form , i s 9 6 hours . Respondent s hav e bee n give n n o assuranc e o f ccmttdentlalily . A n agenc y ma y mj t conduc t o rsponsor , an d a perso n I s no t require d t o respo n t o a collectio n o f informatio n unles s I t display s a curaenti y vali d 0M B contro l number . Tli e OM D contro l numbe rassociate d wit h thi s collectio n i s 2120-0593 . Comment s oonoemin o th e accurac y o f thi s bunle n an d sugasslioft s to rreducin g th e burde n shoul d D e dirapte d t o th e FA A at : 80 0 Irrieoendenc e Av e SW . Washinoton . D C 205^1 . Attn : Informatio n ColiedJo n Clearanc e OHie^ . ABA-20 . Sectio n 1A . T o B e Complete d B y Al l Applicant s 1 . Nam e an d mailin g addres s o f compan y Ai rCharter , In c db a Ai rFlamenc o P.O . Bo x 81035 2 Caroiina , P.R . 00981-035 2 2 . Addres s o f principa l bas e iwher e operation s wil l b e conducte d (d o no t US

B pos t offic e box) Lindbergh t stree t sout h ram p lo t 7 Isl a Grand e Airpor t Sa n Juan . P.R . 0090 7 3 . propose d Startu p d^t e Novembe r15 . 201 0 A . Requeste d three-lette rcompan y Identifie rI n orde ro f preferenc e 1 . W 2 . A 3 . F 5 . flilanagemen t Personne l Nam e (Last , first , middle ) Titl e Telephon e (includin g are a code ) Torres . Francisc o Torres , Rulje n Rodriguez . Cayetan o Directo ro f Operatio' i Chie f Pilo t Directo ro f IMaintenanc

e 787-405-159 2 787-403-623 1 787-923-391 1 Sectio n IB . T o B e Complete d B y Ai rOperator s 6 . Propose d typ e o f operatio n (chec k a s man y a s S I Ai rterrie rCeitificat e D Par t 12 1 C J Operatin s Certificat e O Par t 12 5 E Par t 13 5 applicable ) u i l PassertgN s an d Carg o O Carg o Onl y l £ l Schedule d Operatioi ^ iH i Non$chedule d Operation s Q Singl e Pilo t Operato r L J Singl e Pilot4n-ConDman d Operato r O Basi c par t 13 5 Openato r Sectio n 10 . T o B e Complete d B y Ai rAgencie s 7 . Propose d typ e o f agenc y an d ratlng(s ) O Par t 14 5 Impai rStatio n L i Domesti c L H Foreig n L J ^e w L J Rene w D Satellit e G Airfrani e Q Inatnimen t L J Powerplan t L J Propelle r D Radi o Siw i Jun n Facilit y L J Par t 14 7 Maintenanc

e Technical School L J Airfram e L J PowBiplan

t Deat h 

### OC T 0 6 201 0 L J Accassor y L J Specialize d Servic e Par t 14 9 Parachut e Lof t 'rime: . /if : r IN T ^

^ Sectio n ID . To fie Complete d B y Ai rOpwatar s 8 . Aircraf t Dat a Number s an d type

s o f aircraf t (t> y make , model , an d NQOIG D Islande r N903G D Islande r N904G D Islande r N905G D Islande r Ng06G D Islande r N9076 O Islande r NdOSG D Islande r N909G O Islande r tvt913G 0 Islande r N821R R Islande r BN-2A-2 6

BN-2A- 8 BN-2B-2 6 BN-2A- 9 BN-2A-2 6 BN-2A-2 6 BN-2A-2 6 BN-2A- 8 aN-2A- 8 BN-2A- 9 S/ N 85 5

S/ N 62 5 S/ N 212 8 S/ N 33 9 S/ N 300 8 S/ N 34 0 S/ N 204 0 S/ N 23 9 S/ N 19 8 S/ N 33 8 Numbe ro f passenge rseat s o r carg o payloa d caoacit y 9 sea t o rISOOIb s 9 sea t o rISOOIb s 9 sea t o rISOOIb s 9 sea t o r1500lb s 9 sea t o rISOOIb s 9 sea t o rISOOIb s 9 sea t o rISOOIb s 9 sea t o rISOOIb s 9 sea t o rISOOIb s 9 sea t o rISOOIb s 9 . Geographi c are a o f Intende d operation s Caribbean - island s an d Countrie s o f th e Caribbea n Se a i n th e Easter n CarJbbean(Lesse rAntilles ) area . Caribbean - Island s an d Countrie s o f th e Caribbea n Se a i n th e Grate rAntille s area.excep t th e islan d o f Cuba . Caribbean - Island s an d Countrie s o f th e Caribbea n Se a i n th e Norther n Caribbea n area , excep t th e islan d o f Cuba . Caribbean - island s an d Countrie s o f th e Caribbea n Se a i n ttie Souther n Cartt>bea n area . JSA - Th e 4 8 contiguou s Unite d Stat e an d th e Distric t o f Columbia . FA A For m 8400- 6 <6-95 ) Supen»tle e Pravlou e Editio n NSN00S2-00ree9-4002Sectiff n tF , T o B e Complet e B y Al l Applicant s 10 . Additiona l informatio n tha t provide s a t)ette runderstandin g o f th e propose d operatio n o rbusines s (attac h additiona l s/>eefs , i f necessaiy ) Ai rCharter , Inc . i s applyin g fo rth e FA R 13 5 Commute rAi rCarrie rt o suppor t th e deman d o f passenger s an d carg o to/fro m th e regio n o f Sa n Juan , Vieques , Culebr a an d Ceiba . Th e increas e i n deman d i s du e t o a n unreliabl e ferf y syste m operate d b y th e Puert o Ric o Por t Authorit y an d th e nee d o f th e populatio n o f Vieque s an d Culebr a l o acces s t o medica l services , appointments , an d treatment s (includin g an d no t limite d t o cance ran d diabete s patient s an d veterans) ; universitie s an d colleges ; an d governmen t agencies . I n addition , touris m i s on e o f th e primar y source s o f employmen t i n Vieque s an d Culebra . Area s suc h a s hotels , gues s houses , restaurants , taxis , ca rrentals , weel<en d renta l houses , an d man y mor e busines s ar e fe d b y Ai rCharter , In c db a Ai rFlamenco .

11 . Th e statement s an d informatio n containe d o n thi s for m denot e a n Inten t t o appl y fo rFA A certification . Signature 

# 3 ^ - ^ Dat e Octobe r0 6 ,201 0 Natn e an d Titl e Francisco Torre s Directo rof Operation s Sectio n 2 . To B e Complete d B y FA A Distric t Offic e Receive d b y (distric t office) : Dat e forwarde d t o Region : Date : For : Q Actio n D Infotmatio n onl y Remark s Sa n Jua n Facility 

### OC T 

### ft 6 201 0 Time : INT _ 

# J ^ 

# M f Sectio n 3 . T

o B e Complete d B y Regiona l Offic e Receive d i>y : Precertlficatio n Number : Date : Dat e coordinate d wit h AVN-120 : Distric t offic e assigne d responsibility: Dat e fonwanie d t o distric t oftice ; Rennark s

F A A For m 6400- 6 <S.9S ) supersede

s Previou s Editio n N8N : 0052-00-889.400 2

# Exhibi t

4 Corporat e Goo dStandin g Certiflcatio n

2 3

### Gobiern o d e Puert o Ric o DEPARTAMENT O D E ESTAD O Sa n Juan , Puert

o Ric o 

# CERTIFICAD O D E CUMPLIMIENT O ("GOO D STANDING" ) Yo , KENNET H McCLINTOC KHERNANDEZ , Secretari o d e Estad o de l Estad o Libre Asociad o d e Puert o Rico , CERTIFICO : Que , a teno rco n la s disposicione s d e l a Le y Genera l d e Corporaciones , "AI R CHARTER , INC." , registr o 6655 9 un a corporacio n co n fine s d e lucr o organizad a baj o la s leye s de l Estad o Libr e Asociad o d e Puert o Rico h a cumplid o co n l a radicacio n d e Informe s Anuales . E N TESTIMONI O D E L O CUAL , firm o l a present e y hag o estampa re n ell a e l Gra n Sell o de l Estad o Libre Asociad o d e Puert o Rico , e n l a ciuda d d e Sa n Juan , hoy 6 d e octubr e d e 2010 . 

# ^-QALQiuAoi^ KENNET H McCLINTOC KHERNANDE Z Seoretari o d e Estad o KfAH/mar a 0830643/071 1 ^ $30.0 0

# Exhibi t

5 Swor n Affidavi t o f Citizenshi p for

Francisc o Torre s

2 4

### AFFIDAVI T O F CITIZENSHI P

STATE O F PUERT O RIC O COUNT Y O F SA

N JUAN Francisc o Torres , bein g firs t dul y sworn , depose s andsays : 1 . That hg/sh e i s dul y elected , qualifie dan dservin g a s Directo r o f Operations , o f

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

Flamenco , an dtha t

jjp/sh e i s authorize dt o an ddoe s make thi s affidavit for it . 2 , Tha

t Francisc o Torres , i s acitize n o f th e Unite dState s withi n th e meanin g o f 4 9 U.S.C . 4012(a)(15) .

Affidavit:52 7 Subscribe dan dswor

n t o befor e m e b y Francisc o Torres , o f legal age,singl e an dresiden t o f Sa n Juan , Puert o Rico . I n Sa n Juan , Puert o Rico , thi s 28 * da y o f September , 2010 .

•w./// .

# Exhibi t

6 Swor n Affidavit

o f Citizenshi p fo

r Rube n Torre s

2 5

### AFFIDAVI T O F CITIZENSHI P

STAT E O F PUERT O RIC O COUNT Y O F SA

N JUA N Rub^ n Torres , bein g firs t

dul y sworn , depose s an dsays : 1 . Tha t iie/sh e i s dul y elected , qualifie dan dservin g a s Chie f Pilot , o f Ai r Charter . In c d/b a Ai r Flamenco , an dthatijg/sh e i s authorize dt o anddoe s make thi s affidavi t fo r it . 2 . Tha t Ruben Torres , i s acitize n o f th e Unite dState s withi n th e meanin g o f 4 9 U.S.C . 4012(a)(15) . ./^ ^ 

### AfGdavit:52 8 Subscribe dan dswor

n t o befor e m e b y Ruben Torres , o f

legal age , marrie dan dresiden t o f Sa n Juan , Puerto Rico . In Sa n Juan , Puert o Rico , thi s 28 * da y o f September , 2010 .

# Exhibi t

7 Swor n Affidavit

o f Citizenship for

Cayetan o Rodrigue z

2 6

### AFFIDAVI T O F CITIZENSHI P

STAT E O F PUERT O RIC O COUNT Y O F SA

N JUAN Cayetan o Rodriguez , bein g firs t dul y sworn , depose s an dsays : 1 . Tha t hg/sh e i s dul y elected , qualifie dan dservin g a s Directo r o f Maintenance , o f

Ai r Charte r Inc . d/b/aAi r

Flamenco , andtha t

Jie/sh e i s authorize dt o an ddoe s make thi s affidavit for it . 2 . Tha t Cayetan o Rodriguez , i s acitize n o f th e Unite dState s with mth e meanin g o f 4 9 U.S.C.4012(a)(15) . $ ^ < ^ ^ 

### Affidavit:52 6 Subscribe dan dswor

n t o befor e m e b y Cayetan o Rodriguez , o f lega l age , singl e an dresiden t o f To aAlta , Puert o Rico . I n Sa n Juan , Puert o Rico , thi s 28 * da y o f September , 2010 . 

# mM . . r - 

# '!: \

## Exhibi t

8 Resume s o f

Francisc o Torres , Rube n Torres , an dCayetan o Rodrigue z

2 740 0 BO . Tortug o Apt . 3 6 Sa n Juan , P R 0092 6 761.787-724-110 6 Gel . 787-405-156 2 

# FRANCISC O TORRE S GONZALE Z Objectiv e Accomplishm^its : T o obtai n m y professiona l skil l a s Presiden t an d Directo ro f Operation s o n th e Company . • Increas e aircraf t flee t sinc e acquire d th e positio n a s a Presiden t • Increas e revenue s acquire d b y carg o contact . " Expandin g Charte rroute s throughou t differen t destinations . • Develo p busines s relationship , wit h Governmen t Municipalitie s o f Vieque s an d Culebr

a Experienc e Jiil y 1,1998-Presen t Ai rLin e Sa n Juan , P R Presiden t Ai rCliarter , in c

Jul y 1,1998-Presen t Ai rCharter , In c Ai rLin e Sa n Juan , P R Pilo t i n Comman d • Ai r(barter , In c d/b/

a Ai rFlamenco i s par

t 13 5 o n deman d operator . • Th e Caribbea n FSD O 2 1 hold s th e Ai rCanie rCertificate . Octobe r25.199 6 t o Apri l 1,199 8 Flamenc o Airway s Sa n Juan , P R Airlin e LdOade rSuperviso r " Flamenc

o Airway s {n o longe ri n existence) , wa s apar t 13 5 commute rAi r Carrie rwhos e certificat e wa s hel d b y th e Caribbea n FSD O 21 . Novembe r20,199 5 t o Marc h 10,199 6 Wes t Atlanti c Ai rSa n Juan , P R Airlin e Statio n IWanage r • Wes t Atlanti c (o n longe ri n existence) , wa s a par t 12 5 M rCam'e rwhos e certificat e wa s hel d b

y th e Caribbea n FSD O 21 . Educatio n 1993-199 7 Universida d Metnspolita n Sa n Juan , P R « B.A. , Busines s Administration . 1994-199 4 Carib e Aviatio n • Privat e Aviatio n Sa n Juan , P R 1995-199 5 Caribbea n Fligh t Trainin g • Instalmen t Pilot Sa n Juan , P R 1996-199 6 CaribeAwatio n • Commercia ! an d Mutfi-Engin e Sa n Juan , P R40 0 Bo . Tortug o Apt . 3 6 Tel . 787-724-110 5 Sa n Juan , P R 0092 6 Ce) . 787-405-159 2 

# FRANCISC O TORRE S GONZALE Z

Filgh t Qualification s Airlin e Transport Pilo t Tota l Time : 2515. 3 P.I.C : 2467. 2 Singl e Engine : 573. 7 Airplan e Multiengin e Lan d Muiti-Engine : 1893. 5 Commercia l Privileg e Nigh t Flight : 280. 4 Airplan e Singl e Engin e lan d & Se a Cros s Country : 2212. 7 Referenc e Upo n Request .1* *

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# Rube n Torre s Gonzale z P.O . Bo x 810352 , Carolina , P R00981-035 2 Mobil e Phone : (787)403-623 1 email : rtorresn901 @gmail.co m FLIGH T TIM E TOTA L 4,56 0 Mult i Engin e 3,22 0 PI C 4,44 5 Singl e Engin e 1,34 0 Cros s Countr

y 3,29 0 NightFIigh t 41 8 Flight Simulato r 21. 9 Totallnstrumen t (Hood ) 8 6 RATING S & CERTIFICATE S

• Commercia ! Pilot : Instrumen t Airplane , Singl e Engin e Lan d andSe aan dMult i Engin e Land . • FA A Secon dClas s Medica

l • FC C Radi o Operato r

Certificate EMPLOYMEN T EXPERIENC E 200 4 t o Presen t Augus t 199 8 Octobe r 199 7 Februar y 199 7 Septembe r

199 4 EDUCATIO N December 199 7 Jul y 199 7 April ] 99 7 September

199 4 Ai r

Charter , Inc . Chie f Pilot , Vic e Presiden t Ai r Charter , Inc . Pilot , Vic e Presiden t Aeria l Imagin e Pilo t Aeria l Architectural Photography , Inc . Pilo t Flamenc o Airways , Inc . Loade r Caribbea n FlightTrainmi g • Instrumen t

Pilot(ASFJ AMEL ) Jac k Brown' s Seaplane s Bas e • Singl e Engin e Se aRatin g Carib e Aviatio n • Commercial Pilo t Carib e Aviatio n Sa n Juan , P R Sa n Juan , P R Bayam6n , PR Sa n Juan , PR Sa n Juan , P R

Sa n Juan , P R Winte r Haven , F L Sa n Juan , P R Sa n Juan , P R • Private Pilo t SKILL S Pilo t Expirienc e i n C-150/C>210/C-206/Pa-32-260/Pa-28-140 / Pa-23-160/Pa-23-I50/Pa-23-150/Pa-23-300/BN-2A/PJ3-S .AMERIC A » J> % JWMniMABNMMMiM M yj ^

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# CAYETAN O RODRIGUE Z DIA Z

OBJECTIV E

EXPERIENC E T o offer th e bes t

o f my knowledg e an dexperienc e i n achallengin g positio n i n a progressiv e enterpris e wher e th e opportunit y o f professiona l gro-wing , huma n enhancemen t

an daattractiv e workin g environmen t motivat e m e ever

y da y t o wor k towar dtli e goal s o f

di e institution , markin g i t throug h m y dedicatio n an dabilit y t o b e successful . Jul y 15,2002-PresentAi r Charter , In c db aAi r

Flamenc o Sa n Juan , P R Directo r ofMaitiUtJanc e • Provid e gridance , directio n an dtrainin g t o personne l unde r m y supervision . • Ensur e al l maintenanc e inspections , par t handling s an drecor dkeepin g i s coarrie dou t i n accordanc e with di e procedure s se t fort h i n Compan y Manual s an dAppropriate s fars . • Monito r

Aircraf t empt y weigh t

an dbalanc e revis e th e equitpmen t lis t an dempt y o r operat e weigh t

an dbalanc e dat awhe n required . • Approve dal e inspectio n progra mi s curren t fo r a B aircraf t ensurin g tha t

al l applicabl e AD' S ar e complie dwitiii n th e specifie dtime , an dretainin g achronologica l listing . Ja n 17 , 200 1 t o Jul y 13,200 2 (Part Time ) Aircraf t Mechani c • Perfor m5 0 an d10 0 hr s inspectio n • Perfor mlin e maintenanc e Jun e 3,199 8 t o Jul y 22,200 2 Isl aNen aAi r Service, In c Vieques , P R Aircraf t Mechanic . Airlin e « Perfor m5 0 an d10 0 hr s mspecrio n • Perfor mlin e maintenance . Ma y 10,199 2 t o Ju n 14,199 8 To l Air , Internationa l Airpor t o f Puert o Ric o Sa

n Juan , P R Aircraf t Mechani c Airlin e • Perfor m10 0 hr s inspectio n an dlin e check s includin g treble s hooding . Au g 29,198 7 t o Ma

y 11,199 2 Flamenc o Ai r Way s Aircraf t Mechani c Airlin e • Perfor m50-100-500-1,00 0 hr s inspection s • Perfor mlin e maintenanc e Sa n juan , P RADITINA L EXPERIENC E

EDUCATIO N Piper Cheroike , PA-300 , Pipe

r A:^ecPA-23-250 , Cessn

a152 , 172 , Cessn

a402 , Cesn aCaraban, Britte n Norma n Islander , Beec h Craf t Supe r 1 8 Twi n Engin e (Twi n Beech) , Dougla s DC-3 , Convai r 240,340,440 . 1987-198 9 Migue l Such . Vocationa l Schoo l • Airframe , Powe r

Plant , curriculu mcertificate s an drating s « FA A Airfram e /

P P certificat e » FA A Inspectio n Certificat e authorizatio n (lA) . San juan , P R

OVERVIE W Highl y motivat e individua l wit h aspecia l talen t fo r workin g with peopl e fromall walk s o f life . Quic k

t o lear n ne w task s an dadap t

t o dynami c environments . Discipline di n th e procedura l aspect s o f

ajob , whil e independen t minde di n orde r

t o ensur e di e flexibiltity t o understan dan dappl y ne w concept s an dideas . Effectiv e i n th e set-u p o f prioritie s an d establishin g objectives , excellen t interpersona l relation s withi n th e organizatio n an dwit h outsider s alike . Stron g leadershi p an dcommunicatio n skills . Compute r oriented . Goo d presentatio n skills . REFERENCE S Wil l b e fiitnishe dupo n request .

FA X (123 ) 098-7fi5 4 -E-MAI L ME@MYCOMPANy.CO M BO . Onri Z SECTO RVELILL A 'TO A ALTA , P R0095. ^ • PHON E (787 ) 92.')-.'i91 1

### mpp^m!fr'.J:^'^W M

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# Exhibi t

9 Financia l Statement s a s ofDecembe r 31,200 7

2 8

### AI RCHARTER , INC . FINANCU L STATEMENT S DECEMBE R31,200 7 TOGETHE RWIT H INDEPENDEN T AUDITOR' S REPOR TDiA Z BERCNES/ H M.\fniL \DiA / |ill!<;Nti . (:.P.A . JACOB O iJB mPiDR o F. M<(>oo . c:.PA. , CKP . CON2ALE 2 /M m(un aOONXAU/ , CP A w,^.f . ij^^ mMANimvioTA , c.f'.A. , c.v.A . xCo .

'CBlTinBlFtlBl G

ACCOUNTANr s



### INDEPENDEN T AUDITOR' S REPOR T To : Th e Boardo f

Director s o f

Ai r Charter , Inc . Carolina , Puert o Ric o W e hav e audite dth e accompanyin g balanc e shee t o f Ai r Charter , I|tic . a s ofDecembe r 31,2007 , an d th e relate dstatement s o f

income an dretaine d^mings , andcas h flow s for th e yea r then ended . Thes e financia

l statement s are th e responsibilit y o f th e Company'smanagement . Ou r responsibilit

y i s t o expres s an dopinio n o n thes e financia l statement s base do n our

audit . W e conducte dou r

audi t i n accordanc e wit

h auditin g standard s generall y accepte di n th e Unite d State s o f America . Thos e standard s requir e that w e plan an dperfor

mth e audi t

t o obtai n reasonabl e assuranc e abou t

whe&e r di e financia

l statement s ar e free o f

materia l misstatement . A

n audh include s examining , o n ates t basis , evidenc e supportin g th e amouttt s an ddisclosure s i n the fmancia l statements . A n audi t

als o include s assessin g th e acoountm g principle s use dan dsignifician t estimate s mad e b y management , a s wel l a s evaluatin g th e overal l financia l staitemen t presentation . W

e believ e tha t ou r audi t provide s areasonabl e basi s fo r ou r opinion . I n ou r opinion , th e financial statement s referre dt o i n th e firs t par^rpp h presen t

fairly , i n all materia

l respects , th e financia

l positio n o f

Ai r Charter , Inc . a s o f

Decembei j 31,2007 , an dth e result s o f it s operation s an dit s cas h flow s for th e yea r the n ende di n confornjit

y with accountm g principle s generall y accepte di n th e Unite dState s o f America . ^^^^ ^ Januai y 31,200 8 . ..^K«S^CO"^'Si&^ ^ StN* ^ 

### Sa n Juan , Pit&0^^\^'^fi • ' " ' : • ,,.x.v ' Licens e #2 2 Expirin g cg^i^t^'i\7p3& ^ 

# \)&(T i V y o POBO X 361401 , SANIUAN , PUERT O RIC O 00M6-140 1 • TEL . 78 7 77.3 010 1 • FA X 78 7 77:1011 5

### CURREN T ASSET S 

## AI R CHARTER , INC . BALANC E SHEE T DECEMBE R 31,200 7 ASSET S Cas h Account s receivabl e Prepai dincome ta

x Prepayment s 125,22 0 82 5 10,45 9 82.14 3 218,64 7 PROPERT Y AN

D EQUIPMEN T Aircraf t Leasehol dimprovement s Vehicle s Offic e OfBc e equipment Computer s Accumulate ddepreciatio n an damortizatHnfob.«f"^fet^Wi ^ ''^ji?^/^, . 1,976,90 4 54,49 0 42,51 5 450,00 0 58,84 2 15,99 5 2,598,74 6 (1>400,571 ) 198,17 5

"^^^ ^ 

### 16,82 2

Th e accompanyin g note s ar e a n integral par

t o f thi s balanc e sheet .

### CURREN T LIABILITIE S

Curren t portio n of : Loan s payabl e Note s payabl e Accrue dinteres t

payabl e Account s payabl e Accrue dexpense s payabl e LON G TER M DEB T Loan s payabl e Note s payabl e Accrue dinteres t

payabl e AI RCHARTER , INC .

BALANC E SHEE T DECEMBE R31,200 7 LIABILITIE S

STOCKHOLDERS ' EQUIT Y J ^ Commo n stoc k

o f $ 1 par valu § iMjsg^k^lljg ^ ^^^Tter ^ authorized ; 100 0 share s issue da&tej^|^9^'a<?>4^JV?s ^ Additional pai di n capita l Pn^y^^^A?¥^^ & Retaine dearning s 6 , $



# '''^^^?2^^ - 51,01 5 88,90 0 55,43 8 25,47 5 12,70 3 233,53 1 572,72 9 305,80 0 72,26 4 950,79 3 

## IJH32 4 1,00 0 110,00 0 121,49 8 $ 1,416.82 2

Th e accompanyin g note s ar e an integral par t o f thi s balanc e sheet .

### AI RCHARTER , INC . STATEMEN

T O F INCOM

E AN D RETAINE

D EARNING S FORTHE YEA

RENDE D DECEMBE

R31,200 7 REVENUE S Servic e incom

e $ 3,001.50 3 OPERATIN G EXPENSE S Salarie s andpayrol

l taxe s 516,72 7 Gasoline andoil 595,76 6 Depreciation an

damortization 330,65 2 Repair s andmaintenanc e 536,37 7 Professiona

l fees 250,55 2 Insuranc e 175,180 Landin g andpassenge

r fees 204,53 6 Ren t 88,57 4 Utilitie s 46,54 5 Credi t car dcommission s 28,662 Offic e expense s 32,51 1 Vehicle s 15,73 4 Representation an

dtravel 1,77 0 Othe r taxe s 14,52 5 Advertising 4,74 5 Othe r expense s Tftpot , 23 7 Incom e fm moperation s ^Qk^^'^Ss^^^^^^^ ^

Th e accompanying note s ar

e a n integra l par t o f thi s financial statement .

### AI RCHARTER , INC . STATEMEN T O F INCOM E AN D RETAINE D EARNING S FO RTH E YEA RENDE D DECEMBE R31,200 7 OTHE RINCOM E (EXPENSES ) Interes t incom e Gai n o n disposal o f

property an dequipment Interes t expens e an dbank

charge s

Incom e befor

e incom e ta x Incom e ta x NE T INCOM E Retaine dearnings , beginnin g o f th e yea r 1,57 8 (114.942 ) (113,364 ) 45,04 6 (11,381 ) 33,66 5 

## R«.ta«)«.TMi,.g,,«ioftoyca , tBESEWW^^^';^^^^! ^



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## vo s

Th e accompanyin g note s are an integral part o f thi s financial statement .AI RCHARTER , INC . STATEMEN T O F CAS H FLOW S FO RTH E YEA RENDE D DECEMBE R31,200 7 Increas e (Decrease ) i n Cas h an dCas h Equivalent s CAS H FLOW S FRO M OPERATIN G ACTIVITIE S Ne t incom e Adjustment s t o reconcil e ne t incom e t o ne t cas h provide db y operatin g activities : Depreciatio n an damortizatio n Chang e i n asset s an dliabilities : Increas e in : Prepayment s Account s payabl e Accrue dexpense s Decreas e in : Account s receivabl e Accrue dinteres t

payabl e Du e t o officer s Incom e ta x pai d Incom e ta x expens e Tota l adjustment s 33,66 5 330,65 2 (704 ) 3.08 5 4,89 7 8,27 7 (10,254 ) (29,970 ) (27,604 ) 11.38 1 289.76 0 Ne t cas h provide db y operatin g activitie s Sd^^iF-STATBMENTX J »....- • 323.42 5 

### CAS H FLOW S FRO M INVESTIN G J^CTiyiTJ^^'^^J^rH^i^f^^^i^^CBSSA^^,^ ^ Purchas e o f

propert y an dequipmen t THB?JERrox ) UND £

Th e accompanyin g note s ar e a n integra l par t o f thi s financial statement .

### AI RCHARTER , INC . STATEMEN T O F CAS H FLOW S FO RTH E YEA RENDE D DECEMBE R31,200 7 Increas e (Decrease ) i n Cas h an dCas h l^quivalent s CAS H FLOW S FRO M FINANCIN G ACTIVITIE S Proceed s fro

mloan s payabl e Principal payment s o f

loan s payabl e Payment s o f

note s payabl e 36,25 0 (84,018 ) (140.400 ) Ne t cas h use dby financin g activitie s Ne t increas e i n cas h Cash , a t beginnin g o f

yea r Cash , at en do f yea r A1V^ > s n^^.'or - 

### (188,168 ) 

# '--*^g^^g. .

Th e accompanyin g note s are an integral part o f thi s financial statement .

### AI RCHARTER , INC . NOTE S T O FINANCU L STATEMENT S DECEMBE R31,200 7 NOT E A - OPERATION S AND SUMMAR Y O FSIGNIFICAN T ACCOUNTIN G POLICIE S OPERATION S Ai r Charter , Inc . wa s incorporate do n Jun e 1,1987 , i n th e Commonwealt h o f Puert o Rico . SIGNIFICAN T ACCOUNTIN G POLICIE S A summary o f

th e significan t

accountii ^ policie s consistentl y applie di n th e preparatio n o f th e accompanyin g financial statement s follows . i ) Us e o f

estimate s - I n preparin g th e Company' s financial statements , managemen t i s require dt o mak e estimate s an dassumption s tha t affec t th e reportediamount s o f

asset s an dliabilities , th e disclosur e o f

contingen t

asset s an dliabih'tie s at

th e dat e o f

th e financial statements , an dth e reporte damount s o f revenue s ^ dexpense s durin g th e reportin g period . Actua l result s coul ddiffe r fro mthos e estimates . ii ) Propert y an dequipmen t - Property an dequipmen t

ar e state da t

cost , less ; accumulate ddepreciatio n an d amortization . Depreciatio n an damortizatio n ar e compute dusin g th e straight-lin e metho dove r

th e estimate dusefu l live s o f th e assetjs . A s o f Decembe r 31,2007 , e^^JImate

dusefu l liv e o f

propert y an dequipmen t

wa s a s follows : ^ ^^"S^^^lA T ^r U

Leasehol dimprovement s 5 year s Vehicle s 3 t o 5 year s Offic e 3 0 year s ; Offic e equipmen t

3 t o 5 year s i Computer s 3 year s i i (

### A t th e tim e propert

y an dequipment

ar e sol do r otherwis e dispose dof

, th e cos t an d relate daccumulate ddepreciatio n an damortizatio n ar e remove dfro

mth e book s an

d th e resultin g gain o r

loss , i f any , i s credite dor

charge dt o operations . ill ) Cas h an dcas h equivalent s - Th e Compan

y consider s al l highl y liqui ddeb t instrument s purchase dwit h amaturit y o f thre e month s o r

les s t o b e casl i equivalents . NOT E B - LOAN S PAYABL E A s ofDecembe r

31,2007 , th e Compan

y hadth e followin g loan s payable : Descriptio n Amoun t 8.25 % loa n payabl e t o bank , secure dwith office , du e i n monthl y installment s o f $3,88 1 throug h June , 202 1 $ 385,36 8 7.50 % unsecure dloa

n payabl e du e i n yearl y installment s o f $42,68 2 throug h Augus t

1,201 4 226,06 8 7.80 % vinsecuredloa

n payabl e t o financin g institution , du e i n monthl y installment s o f %6f i 1 8 throug h May , 200 7 12.30 8 Tota l 623,74 4 

### Les s curren t

portio n (51,015 ) Lon g termportio n $ 572.72 9 Principa l payment s o f

loan s payabl e fo

r th e nex t five andlater

year s followin g Decembe

r 31,200 7 ar e a s follows : Yea r Amount 200 8 $67,02 7

Late r year s 416.97 2 Tota l $671.15 2

### NOT E C - NOTE S PAYABL E

A t December

31,200 7 th e Compan

y ha dth e followin g note s payable : Descriptio n „_____ _„ Amoqn t 9.7 5 % not e payabl e secure dwit h aircraf t du e i n annua

l principa l installment s o f

$30,00 0 du e i n Augus t

1,200 7 throug h 2010 . Interes t i s pai do n ayearl y basi s ever y Augus t 1 a s follows : $ 90,00 0 Yea r Amount , 200 8 $ 14.62 5 200 9 . 17,55 0 201 0 20,47 5 9.7 5 % not e payabl e secure dwith aircraf t du e in annua

l principal installment s o f

$ $20,00 0 du e i n Ma

y 1,200 7 throug h 2009 . hiteres t i s pai do n ayearl y basi s ever y Ma y 1 a s follows : 40,00 0 Yea r Amount 200 9 $11,70 0 201 0 13,65 0 9.7 5 % not e payabl e secure dwit h aircraf t du e i n annua

l principal installment s o f

$ $21,40 0 du e i n Jun e 1,200 7 throug h 2012 , Interes t i s pai do n ayearl y basi s ever y Jun e 1 a s follows : 107,20 0 Yea r Amount THiiS B 3?rNANClA. L STA'nSMENT S HAVE BEE N PREPARED -inMO^' A THE COMPANY (CX)MRAMeS ) BOOK S AN D RKrM" « AFTERUAKM O ALLNB(3jg8XR Y .ADJfUSTMENT S 

### rnHmHT^a-© msYBEP^SENi'THffi-3i!tfoL . STAI:EMENT S 

### 201 0 FORTKBf!E»i)ODUNDBieW83ilT . 201 1 12,51 9 201 2 14,74 2JDescm 

### !tio n i^ffifiun t 9.7 5 % not e payabl e secure dwit h aircraf t du e in annua

l principal installment s o f

$ $17,50 0 du e in Februai y 1,200 7 through 2016 . Interes t i s pai don ayearl y basi s ever y Februar y I a s follows : Yea r 200 8 200 9 201 0 201 1 201 2 201 3 201 4 201 5 201 6 $3,41 3 5,11 9 6,82 5 8,53 1 iO.23 8 n,94 4 13,65 0 15,35 6 17,06 3

NOT E D - RELATE D PART Y TRANSACTION ! THES E FIN/* " Durin g th e year

ende dDecembe

r 3ir®0 i $47,700 . 

## r s iS7,S0 0



### THES E FINANCIA

L STATEMENT

S HAV E BEE N PREPARE

D ibe r 3 Ifg0i|SMHRCOMPAN

y (COMlVJffliS) BOOK

S AM- } RTJCOitD

S AMmEcu!SS^jaaid>!«(atejrMW * . TtmiiET O AN D Tl-ffi Y KBPRESK^ ' 'H

f I . , ^ .MA L ST A FO Rr mPERIO

D UNDS RAUDIT , 'Antin

g t o

# Exhibi t

1 0 Financia l Statement s a s ofDecember 31,200 8

2

9

### AI RCHARTER , INC . FINANCIA L STATEMENT S DECEMBE R31 , 200 8 TOGETHE RWIT H INDEPENDEN T AUDITOR' S REPOR TDiA Z BERGMEy

jACOB O GONZALE Z ViOT A &Co . MANUE I DI « BERCNES , C.P.A . PfOR O E JACOBO , CPA , C.F.P . J0RCEGbNZAli2,CPA . MANUE I VioyA , C.P.A. , C.V.A .



### INDEPENDEN T AUDITOR' S REPOR T To : Th e Boardo f

Director s o f

Ai r Charter , Inc . Carolina , Puert o Ric o W e hav e audite dth e accompanyin g balanc e shee t o f Ai r Charter , Inc . a s ofDecembe r 31,2008 , and th e relate dstatement s o f

income an

dretaine dearnings , an dcas h flow s fo r th e year the n ended . Thes e fmancia

l statement s ar

e th e responsibility o f

th e Company' s management . Ou r responsibilit

y i s t o expres s an dopinio n o n thes e financial statement s base don ou r audit . We conducte dour

audi t i n accordanc e wit

h auditin g standard s generall y accepte di n th e Unite d State s o f America . Thos e standard s require that w e pla n an dperfor

mth e audi t

t o obtai n reasonabl e assuranc e abou t

whethe r th e financia

l statement s ar e free o f

materia l misstatement . A n audi t include s examining , o n ates t basis , evidenc e supportin g th e amount s an ddisclosure s in tii e financia l statements . A n audi t

als o include s assessin g th e accountin g principle s use dan dsignifican t ^Ptimate s mad e b y management , a s wel l a s evaluatin g th e overal l financia l statemen t presentation . W e believ e that ou r audi t provide s areasonabl e basi s fo r our opinion . I n our opinion , th e financia

l statement s refeire dto i n th e first paragrap h present

fairly , i n all materia

l respects , th e fmancia

l positio n o f

Ai r Charter , Inc . a s o f

Decembe r 31,2008 , an dth e result s o f it s operation s and it s cas h flows fo r th e yea r the n ende di n conformit

y wit h accountin g principle s generall y accepte di n th e Unite dState s o f America . Januai y 31,200 9 Sa n Juan , Puert o Ric o Licens e ?^2 0 Expirin g o n December

1,201 0 536257_ 1



# 'v^fo ^

P O BO X 361401 , SA N JUAN , PUERT O RiC O 00936-140 1 • TEL . 78 7 77 3 010 1 • FA

X 787 77

3 011 5

### CURREN T ASSET S AIRCHARTER , INC . BALANC E SHEE T DECEMBE R31,200 8 ASSET S Cas h Account s receivabl e Prepayment s 111,25 1 82 5 69.30 5

RECEIVABL E FRO M RELATE D PART Y 181,38 1 90,00 0 PROPERT Y AN

D EQUIPMEN T Aircraf t Leaiichol dimprovement s Vehicle s Hanga r Offic e equipment Computer s 2,113,95 0 56,99 0 74,13 9 450.00 0 68,80 1 17.33 0 Accumulate ddepreciatio n an damortizatio n 2,731,21 0 (1,691.797 ) 1.089.41 3 $ 1,360,79

4

Th e accompanyin g note s ar e a n integra l par t o f thi s balanc e sheet .

### AI RCHARTER , INC . BALANC E SHEE T DECEMBE R31,200 8 LIABILITIE S AN

D STOCKHOLDERS ' EQUIT Y CURREN T LIABILITIE S Curren t portio n of

: Loan s payabl e Note s payabl e Accrue dinteres t

payabl e Account s payabl e Accrue dexpense s payabl e Du e t o relate dpart

y Incom e ta x payabl e 28,72 9 li6,55 6 44,84 1 34,35 4 22,60 7 12,61 0 58 1 LON G TER M DEB T 260.27 8 Loan s payabl e Note s payabl e Accrue dinteres t

payabl e 366.54 8 389,58 6 79,33 4

Th e accompanyin g note s are a n integra l par t o f thi s balanc e sheet . 335.46 8 STOCKHOLDERS ' EQUIT Y 1,095,74 6 Commo n stoc k

o f $ 1 pa r valu e 1,000,000 share s authorized ; 1000 share s issue dandoutstandin g Additional pai di

n capital Retaine dearning s 1,00 0 110,000 154,04 8 265,04 8 $ 1,360,794

### AI RCHARTER , INC . STATEMEN T O F INCOM E AN D RETAINE D EARNING S FO RTH E YEA RENDE D DECEMBE R31 , 200 8 REVENUE S Servic e income $ 2,594,72 4 OPERATIN G EXPENSE S Salarie s an dpayrol l taxe s Gasolin e an doil Repair s an dmaintenanc e Depreciatio n an

damortizatio n Professional fee s Landin g an dpassenger

fee s Insuranc e Rent Utilitie s Offic e expense s Credi t cardcommission s Representatio n andtrave l Vehicle s Other taxe s Advertisin g Other expense s 503,64 3 561,58 6 310,59 2 291,224 175,98 4 158,84 3 151.75 3 114,04 3 56.40 0 43,88 4 37,72 3 20,29 3 i 7,57 5 17,20 1 5,21 9 75 4 (2,466,717 ) Income fromoperation s 128.007

The accompanyin g note s ar e a n integra l par t o f thi s financial statement .

### AI RCHARTER , INC . STATEMEN T O F INCOM E AN D RETAINE D EARNING S FO RTH E YEA RENDED DECEMBE R31,200 8 OTHE RINCOM E (EXPENSES ) Interes t income Interes t expens e an

dban k charge s 47 9 (83,371 )

Tli e accompanyin g note s are a n integral par

t o f thi s financial statement . (82,892 ) Incom e befor

e income ta

x Incom e tax 45,11 5 (12.565 ) NE T INCOM E 32,55 0 Retaine dearnings , beginnin g o f th e yea r 121,49 8 Retaine dearnings , en

do f th e yea r $ 154,04 8

### AI RCHARTER , INC . STATEMEN T O F CAS H FLOW S FO RTH E YEARENDE D DECEMBE R31 , 200 8 Increas e (Decrease ) i n Cas h an dCas h Equivalent s CAS H FLOW S FRO M OPERATIN G ACTIVITIE S Ne t income Adjustment s to reconcil e ne t incom e t o net cas h provide db y operatin g activities : Depreciatio n andamortizatio n Chang e in asset s an dliabilities : Increas e in ; Receivabl e fro

mrelate dparty Account s payabl e Accrue dexpense s payabl e Decreas e in : Account s receivabl e Prepayment s Prepai dincom e ta x Accrue dinteres t

payabl e Income ta x pai d Incom e tax expens e 32,55 0 291,22 4 (90,000 ) 8,87 9 19,51 4 12.83 8 10,45 9 (3,527 ) (11,984 ) 12,56 5 Tota l adjustment s 249.96 8 Ne t cas h provide dby operatin g activitie s 282,51 8 CAS H FLOW S FRO M INVESTIN G ACTIVITIE S Purchas e o f

property an dequipment (164,679 )

The accompanyin g note s ar e a n integra l par t o f thi s financial statement .

### AI RCHARTER , INC . STATEMEN T O F CAS H FLOW S FO RTH E YEA RENDED DECEMBE R31 , 200 8 Increas e (Decrease ) in Cas h an dCas h Equivalent s CAS H FLOW S FRO M FINANCIN G ACTIVITIE S Proceed s fro

mloan s payabl e Principa l payment s o f

loan s payabl e Payment s o f

note s payabl e 25,96 3 (43,145 ) (114,626 ) Ne t cas h use dby financing activitie s (131.808 ) Ne t decreas e i

n cas h Cash , a t beginnin g o f

year (13.969 ) 125.220 Cash , a t en do f yea r $ 111,25 1

Th e accompanyin g note s are a n integra l par t o f thi s financial statement .

### AI RCHARTER , INC . NOTE S T O FINANCIA L STATEMENT S

DECEMBE R31,200 8 (1 ) Operation s an dsummar y o f significan t

accountin g policie s - (A) Operation s - Ai r Charter , Inc . wa s incorporate do n Jun e 1,1987 , in th e Comrnonwealt h o f Puerto Rico . (B ) Summar y o f

significan t

accountin g policie s - A summar

y o f the significan

t accountin g policie s consistentl y applie di n th e preparatio n o f

th e accompanyin g financial statement s follows . 0 Propert y an dequipmen t - Property andequipmen

t are state da

t cost , les s accumulate ddepreciatio n an d amortization . Depreciatio n an damortizatio n ar e compute dusin g th e straight lin e metho dover

th e estimate duseful live s o f th e assets . A s ofDecembe r

31,2008 , estunate dusefu l liv e o f property an

dequipmen

t wa s a s follows ; Estimate d Descriptio n Useful Liv e Aircraf t 5 year s Leasehol dimprovement s 5 year s Vehicle s 3 t o 5 year s Hanga r 3 0 year s Offic e equipmen

t 3 t o 5 year s Computer s 3 year s At th e tim e propert

y an dequipmen t

ar e sol do r

otherwis e dispose dof

, th e cos t an drelate daccumulate ddepreciatio n an damortizatio n ar e remove d fi*omth e book s andthe resultin g gain o r loss , i f any , i s credite do

r charge dt o operations . ii ) Cas h an dcas h equivalent s - Th e Company consider s al l highl y liqui ddeb t instrument s purchase dwit h a maturity o f

thre e month s o r

les s to b e cas h equivalents .

### iii ) Us e o f estimate s - I n preparin g the Company' s financia l statements , management i s require dt

o make estimate s an

dassumption s that

affec t th e reporte damount s o f

asset s an dliabilities , th e disclosur e o f contingen t

asset s an dliabilitie s a

t th e dat e of th e financial statements , an dth e reporte damount s o f revenue s andexpense s durin g th e reportin g period . Actua l result s coul ddiffe r fro mthos e estimates . (2 ) Loan s payabl e - A s o f December

31,2008 , th e Compan

y ha dth e followin g loan s payable : Descriptio n Amoun t 8.25 % loa n payabl e t

o bank , secure dwit

h office , du e i n monthl y installment s o f $3,88 1 throug h July , 201 1 $ 370,224 1.99 % loa n payabl e to financing institution , secure dwit h vehicle , du e i n monthl y installment s o f $25 9 throug h June , 201 3 13,36 9 7.46 % unsecure dloa

n payabl e to financing institution , du e i n monthl y installment s o f $2,96 7 throug h April . 200 9 11.68 4 Tota l 395,27 7 Les s curren t

portio n (28.729 ) Lon g ter mportio n $ 366.54 8 Principa l payment s o f

loan s payabl e fo

r th e nex t five year s followin g December 31,200 8 ar

e a s follows ; Yea r Amoun t 200 9 $28,72 9 201 0 18,63 8 201 1 342,99 8 201 2 3,04 5 201 3 1.86 7 Tota l £ 395.27 7

### (3 ) Note s payabl e - At Decembe r 31 , 2008 , th e Company hadth e followin g note s payable : Descriptio n Amoun t 7,50 % unsecure dnote payabl e du e in yearl y installment s o f $42,68 2 throug h Augus t

1.201 4 $ 200.34 2 9.7 5 % note payabl e secure dwit h aircraf t du e i n annua l principa l installment s o f

$30,00 0 du e i n Augus t

1 , 2O0 7 throug h 2010 . Interes t i s pai do n ayearl y basi s ever

y Augus t 1 a s follows : 60,00 0 Yea r Amoun t 200 9 $ 17,55 0 201 0 20,47 5 9.7 5 % note payabl e secure dwith aircraf t du e i n annua

l principa l installment s o f

$ $20,00 0 du e in May 1.200 7 throug h 2009 . Interes t i s pai don ayearl y basi s ever y May 1 a s follows : 20,00 0 Yea r Amount 200 9 $ 13,65 0 9.7 5 % note payabl e secure dwit h aircraf t du e in annua

l principa l installment s o f

$ $21,40 0 du e i n Jun e 1,200 7 throug h 2012 . Interes t i s pai do n ayearl y basi s ever

y Jun e 1 a s follows : 85,80 0 Yea r Amoun t 200 8 $ 8,34 6 200 9 10,43 3 201 0 12,51 9 201 1 14.74 2

### Descriptio n Amount 9.7 5 % not

e payabl e secure dwit

h aircraf t du e i n annua l principal installment s o f

$ $17,50 0 du e in Februar

y 1,200 7 throug h 2016 . Interes t i s pai do n ayearl y basi s ever y Februar y 1 a s follows ; 140,000 Yea r Amoun t 200 9 $5,11 9 201 0 6,82 5 201 1 8.53 1 201 2 10.23 8 201 3 11.94 4 201 4 13.65 0 201 5 " 15.35 6 201 6 17.06 3 S ! 506.14 2 

### (4 ) Relate dpart y transaction s - Durin g the yea

r ende dDecember

31,2008 , th e Compan

y pai dsalarie s t

o officer s an.o?:nting to $54,092 .

# Exhibi t

1 1 Financia l Statement s a s ofDecembe r 31,200 9

3

0

### AI RCHARTER , INC . FINANCIA L STATEMENT S DECEMBE R31 , 200 9 TOGETHE RWIT H INDEPENDEN T AUDITOR' S REPOR TDfA Z BEkCNE S 1

JACOU O CONZALE/ . ViCT A &Co . • > - MANUf l DIA; ; lifKCNdb , C.P.A . I'|;DI»!: . JACOliO , C.P.A. , C.F.P . lOKC i CONZAlti , CP.A . MANU B VIOTA , C,P.A, , C.V.A .



### INDEPENDEN T AUDITOR' S REPOR T To : TheBoardofDirectorso f Ai r Charter , Inc. ' Carolina , Puerto Ric o W e hav e audite dth e accompanyin g balanc e shee t o f Ai r Charter , Inc. , a s ofDecember 31 , 2009 , an dth e relate dstatement s o f los s an dretaine dearnings , an

dcas h flows fo

r th e yea r then ended . Thes e financial statement s ar e th e responsibilit

y o f th e Company' s management . Ou r responsibilit

y i s to expres s an

dopinio n o n thes e financial statement s base do n ou r audit . We conducte dou

r audit i n accordanc e witl i auditin g standard s generall y accepte di n th e Unite d State s o f America . Thos e standard s require tha t w e pla n an

dperfor mth e audi t

to obtain reasonabl e assuranc e abou

t whether th e financial statement s ar e free o f materia l misstatement . A

n audi t include s examining , o

n ates t basis , evidenc e supportin g th e amount s an ddisclosure s in the financial statements . A

n audi t als o include s assessin g th e accountin g principle s usedan dsignifican

t estimate s mad e b y management , a s wel l a s evaluatin g th e overal l fmancia l statemen t presentation . W

e behev e tha t ou r audi t provide s areasonabl e basi s fo r ou r opinion . I n ou r opinion , th e financial statement s referre dt o i n th e first

paragiap h present

fairly , in a ? materia

l respects , th e fmancia

l positio n o f

Ai r Charter , Inc. , a s o f

Decembe r 31 , 2009 , an

dth e result s o f

it s operation s an

dit s cas h flows fo

r the yea r the n ende din conformit

y wit h accountin g principle s generall y accepte din the Unite dState s o f America . Januai y 31 , 201 0 Sa n Juan , Puerto Ric o Licens e #22 0 Expirin g o

n Decembe

r 1 , 201 0 E5D7S7 E 

# MJ^[ / y w

!-' 0 (sO X ^iVUJy i ':.v.f. i m.^:-. ; r';.![;l?1< t KlC O i);|t;36-1'^0 1 ' 11: 1 ?B 7 77 3 010 1 » FAX 78 7 773tn'| K

### CURREN T ASSET S AI RCHARTER , INC . BALANC E SHEE T DECEMBE R31 , 200 9 ASSET S Cash Account s receivabl e Prepai dincom

e ta x Prepayment s 92,64 0 82 5 12,564 73,56 1

PROPERT Y AN

D EQUIPMEN T

Th e accompanyin g note s are a n integral par

t o f thi s balanc e sheet . 17^59 0 RECEIVABL E FRO M RELATE D PART Y 90,00 0

Aircraf t Leasehol dimprovement s Vehicle s Hanga r Offic e equipment Comptiter s 2,408,14 5 56,99 0 74,13 9 450,00 0 69,42 8 17,33 1 

### Accumulate ddepreciatio n an damortizatio n 3,076,03 3 (l,9g7,943 ) 1,088,09 0 $ 1,357,68 0

### AI RCHARTER , INC . BALANC E SHEE T DECEMBE R31 , 200 9 LIABILITIE S AN

D STOCKHOLDERS ' EQUIT Y CURREN T LIABILITIE S Cun-en t portio n of

: Loan s payabl e Note s payabl e Accrue dinteres t

payabl e Account s payabl e Accrue dexpense s payabl e Du e t o relate dpart

y 24',860 120,97 1 34,21 9 2,82 0 19,06 9 12,61 0 LON G TER M DEB T 214,54 9 Loan s payabl e Note s payabl e Accrue dinteres t

payabl e 345,75 1 558,61 5 68,87 6

STOCICHOLDERS ' EQUIT Y 97:\24 2 l,lb'7,79 1 Commo n stoc k

o f $ 1 pa r valu e 1,000,000 share s authorized ; 1000 share s issue dan doutstandin g Additiona l pai di n capital Retaine dearning s 1,00 0 110,00 0 58,88 9

Th e accompanyin g note s ar e a n integral par

t o f thi s balanc e sheet . 169,88 9 $ 1,357,68 0

### AI RCHARTER , INC . STATEMEN T O P LOS S AN D RETAINE D EARNING S FO RTH E YEA RENDE D DECEMBE R31,200 9 REVENUE S Servic e income $ 2,720,27 5 OPERATIN G EXPENSE S Salarie s andpayrol l taxe s Gasolin e an

doi l Repair s an dmaintenanc e Depreciatio n an

damortizatio n Professional fee s Landin g andpassenger

fee s Insuranc e Rent Utilitie s Offic e expense s Credi t car dcommission s Representatio n an

dtrave l Vehicle s Other taxe s Advertisin g Othe r expense s 620,63 3 668,57 5 330,544 296,14 6 217,36 1 134,69 2 142,20 3 116,80 4 47,98 9 48,26 9 44,87 2 4:,57 1 12,440 1.4,98 0 5,89 0 190 (2,745,159 ) Los s fro moperation s (24,884 )

Th e accompanyin g note s ar e a n integra l par t o f thi s fmancia l statement .

### AI RCHARTER , INC . STATEMEN T O F LOS S AN D RETAINE D EARNING S FO RTH E YEA RENDED DECEMBE R31 , 200 9 OTHE RINCOM E (EXPENSES ) Interes t income Interes t expens e an

dban k chai-ge s 51 5 (70,790 )

Th e accompanyin g note s ai- e a n integra l par t o f thi s fmancia l statement . (70,275 ) 

### NE T LOS S Retaine dearnings , beginnin g o f th e yea r (95,159 ) 154,04 8 Retaine dearnings , en do f th e year 58,88 9

### AI RCHARTER , INC . STATEMEN T O F CAS H FLOW S FO RTH E YEA RENDE D DECEMBE R31 , 200 9 Increas e (Decrease ) i n Cas h aa dCas h Equivalent s CAS H FLOW S FRO M OPERATIN G ACTIVITIE S Net los s Adjustment s to reconcil e ne t los s to ne t cas h provide db y operatin g activities : Depreciatio n an

damortizatio n Chang e i n asset s an

dliabiHties : Inci'eas e in : Prepayment s Prepai dincom e ta

x Decreas e in : Accrue dinteres t

payabl e Account s payabl e Accrue dexpense s payabl e Incom e ta x pai d $ (95,159 ) 296,14 6 (;.256 ) (12,564 ) (21,080 ) (31,534 ) (3,538 ) (581 ) Total adjustment s 222,59 3 Ne t cas h provide db y operatin g activitie s 127,43 4 CAS H FLOW S FRO M INVESTIN G ACTIVITIE S Purchas e o f

property an

dequipment 

## il^?23 }

Th e accompanyin g note s ar e a n integral par

t o f thi s financial statement .

### AI RCHARTER , INC . STATEMEN T O F CAS H FLOW S FO RTH E YEARENDED DECEMBE R31 , 200 9 Increas e (Decrease ) in Cas h aa dCas h Equivalent s CAS H FLOW S FRO M FINANCIN G ACTIVITIE S Proceed s fro

mloa n payabl e 13,56 4 Principal payment s o f

loan s payabl e (38,230 ) Payment s o f

note s payabl e (116,556 ) Ne t cas h use db y financing activitie s (141,222 ) Ne t decreas e in cas h (13,611 ) Cash , a t beginnin g of

yea r IU,2S 1 Cash , a t en do f yea r $ 92,64 0 Supplementa l schedul e o f non-cas h investin g an dfinancing activities : Aircraft s purchase dwit

h not e payabl e $ 290,00 0

Th e accompanyin g note s ar e a n integra l par t of thi s financial statement .

### AI RCHARTER , INC . NOTE S T O FINANCIA L STATEMENT S

DECEMBE R31 , 200 9 (1 ) Operation s an dsummar y o f significan t

accountin g policie s - (A ) Operation s - Ai r Chaiter , Inc . wa s incoiporate do n Jun e 1,1987 , in th e Commonwealt h o f Puerto Rico . (B ) Summar y o f

significan t

accountin g policie s - A summar

y o f th e significan

t accountin g policie s consistentl y applie di n th e preparatio n o f

th e accompanyin g financial statement s follows . i ) Propert y an dequipmen t - Propert y an dequipmen

t are state da

t cost , les s accumulate ddepreciatio n an d amortization . Depreciatio n an damortizatio n ar e computedusin g th e sti'aightlin e metho dove

r th e estimate dusefu l live s o f th e assets . A s o f December

31.2009 , estimate duseful liv e o f propert y an dequipment wa s a s follows : Estimate d Descriptio n . Usefu l Liv e Aircraf t 5 year s Leasehol dimprovement s 5 year s Vehicle s 3 to 5 year s Hanga r 3 0 year s Offic e equipmen

t 3 to 5 year s Computer s 3 year s At th e tim e propert

y an dequipmen t

ar e sol do r otlierwis e dispose dof

, th e cos t andrelate daccumulate ddepreciatio n an damortizatio n ar

e removedfrom th e book s an

dth e resultin g gai n o r

loss , i f any , i s credite dor

charge dto operations .

### ii ) Cas h an dcas h equivalent s - Tli e Company consider s all highl y liqui ddebt instniment s purchase dwit h a maturit y o f thre e month s o

r les s t o b e cas h equivalents , iii ) Us e of

estimate s - In preparin g th e Company' s financial statements , management i s require dt

o malce estimate s andassumption s tha t affec t th e reporte damount s o f

asset s an dliabilities , th e disclosure o f contingent

asset s an dliabilitie s a

t th e vlat e o f th e financial statements , an dth e reporte damount s o f

revenue s an

dexpense s durin g th e reportin g period . Actua l result s coul ddiffe r fromthos e ei.:iraates . (2 ) Loan s payabl e - A s ofDecembe r

31,2009 , th e Compan

y ha dth e followin g loan s payable : Descriptio n \Amoun t 8.25 % loa n payabl e t o bank , secure dwit h office , due in monthl y installment s o f $3,88 1 throug h July , 201 1 $ 354,00 4 1.99 % loa n payabl e to financing institution , secure dwit h vehicle , du e i n monthl y installment s o f $25 9 throug h June , 201 3 10,50 1 6.21 % unsecure dloa

n payabl e t o financing institution , du e i n niontlil y installment s o f $1,54 6 throug h April , 201 0 6.IO0 Tota l 370,61 1 Les s cuiTcn

t portio n (24.860 ) Long ten n portio n $ 345.75 1 Principa l payment s o f

loan s payabl e fo

r th e nex t fou r yeai' s following December 31,200 9 ar

e a s follows : Yea r Amoun t 201 0 $ 24,86 0 201 1 341,16 1 201 2 3,04 5 201 3 1.54 5 Tota l 3 ; 370.61 1

### (3 ) Note s payabl e - A t Decembe r 3 i , 2009 , th e Compan

y ha dth e followin g note s payable : Descriptio n Amoun t 7.4 5 % note payabl e secure dwit h aircraf t du e i n yearl y installment

o f $37,13 3 du e i n Ma

y 1 , 201 0 an danotlier

six yearl y installment s o f

$49,51 1 du e in Ma

y 1 , 201 1 throug h 201 6 an dfinal installment

o f $61,88 9 du e in Ma y 1 , 2017 . $ 290,00 0 7.50 % unsecure dnot e payabl e du e i n yearl y installment s o f $42,68 2 throug h Augus t

1 , 201 4 172,68 6 9.7 5 % note payabl e secure dwit h aircraf t du e i n annua

l principal installment s o f

$30,00 0 du e i n Augus t

1 , 2O07 thi-oug

h 2010 . Interes t i s pai do n ayearly basi s ever y Augus t 1 a s follows ; 30,00 0 Yea r Amoun t 201 0 $ 20,47 5 9.7 5 % not e payabl e secure dwit h aircraf t du e i n annual principa

l installment s o f

$ $21,40 0 du e i n Jun e 1,20O 7 throug h 2012 . Interes t i s pai do n ayearl y basi s evei y Jun e 1 a s follows : 64,40 0

Yea r Amoun t 200 9 $ 10,43 3 201 0 12,51 9 201 1 14,74 2 9.7 5 % not e payabl e secure dwit h aircraf t du e i n annua l principal installment s o f

$ $17,50 0 du e inFebmar y 1 , 200 7 throug h 2016 . Interes t i s pai don ayearl y basi s ever y Februar y 1 a s follows ; 122,50 0 Yea r Amoun t 201 0 $ 6,82 5 201 1 8,53 1 201 2 10,23 8 201 3 11,944 201 4 13;65 0201 5 15,35 6 201 6 17,06 3



### ^ 679.58 6 (4 ) Relate dpart y transaction s - Durin g th e yea

r endedDecembe

r 31,2009 , th e Company pai dsalaiie s to officer s amounting t o $62,800 . (5 ) Operatin g los s carr y forwar d- A t December

31 , 2009 , tli e Compan

y hadane t

operatin g los s carr

y foi-war davailaf'l e t

o offse t futur e taxabl e income a s follows : Yea r Amoun t Expiratio n Dat e 200 9 $ 80,32 5 201 7

# Exhibi t

1 2 Financia l Statement s a s o f Augus t 31,201 0

3 1

### AI RCHARTER , INC . FINANCIAL STATEMENT S AUGUS T 31,201 0 TOGETHE RWIT H ACCOUNTANT' S COMPILATIO N REPOR TDfA Z BFKCNE S i JACOB O GONZALE Z Vioi A // - &Co . MANU a 0(A 2 BfKONtS.C.P.A . PtORO t . JACOSO . C.fiA , C.F.P , JO(!CtCON2Att2,C.P.A , W^W£ t VlOT \

CP.A. , C.V.A ,



### ACCOUNTANT' S COMPILATIO N REPOR T To : The Boar

do f Director s o f

Ai r Charter , Inc . Carolina , Puerto Ric o W e hav e compile dth e accompanying balanc e shee t o f Ai r Charter , Inc . ("the Company" ) a s o f Augus t 31,2010 , an

dth e relate dstatemen

t o f los s an dretaine dearning s fo

r th e eigh t month s perio d endedAugus t

31,2010 , in accordanc e wit h Standard s fo

r Accounting an

dRevie w Service s issue

db y th e America

n Institut e o f CertifiedPubli c Accountants . A compilatio n i s limite dto presentin g i n the for mo f financial statement s information tha t i s th e representatio n o f

management . W

e hav e not audite do r

reviewe dthe accompanying financial statement s and , accordingly , d o not expres s a n opinio n o

r any other for mo f assuranc e o

n them . The statemen

t o f cas h flows fo

r the eigh t month s perio dende dAugus t 31 , 2010 , ha s no t

bee n presented . The accountin g principle s generall y accepte din th e UnitedState s o f Americ arequir

e tha t such astatemen

t b e presente dwhe

n financial statement s purpor t t o presen t financial positio n an

d result s o f operations . Septembe r 24 , 201 0 Sa n Juan , Puert

o Ric o Licens e #22 0 Expirin g o n December

1,201 0 _ESSgiDS „

P O BO X 361401 , SA N JUAN , PUERT O RIC O 00936-140 1 • TEL . 78 7 773 010 1 • FA X 78 7 773 011 5

### CURREN T ASSET S AI RCHARTER , INC . BALANC E SHEE T AUGUS T 31,201 0 ASSET S Cas h Account s receivabl e Prepai dincom

e ta x Prepayment s 90,14 6 82 5 12,56 4 125,74 1

PROPERT Y AN

D EQUIPMEN T

Th e accompanyin g note s are a n integra l par t o f thi s balanc e sheet . 229,27 6 RECEIVABL E FRO M RELATE D PART Y 90,00 0 Aircral^ Leasehol dimprovement s Vehicle s Hanga r Offic e equipmen

t Securit y equipmen

t Computer s 2,477,61 7 56,99 0 81,54 9 450,00 0 69,42 8 7,27 5 17,33 1 Accumulate ddepreciatio n an damortizatio n 3,160,19 0 (2,204.136 ) 956.05 4 $ 1,275,33 0

### AI RCHARTER , IN C BALANC E SHEE T AUGUS T 31 , 201 0 LIABILITIE S AN

D STOCKHOLDERS ' EQUIT Y CURREN T LIABILITIE S Curren t portio n of ; Loan s payabl e Note s payabl e Accrue dinteres t

payabl e Account s payabl e Accrue dexpense s payabl e Du e t o relatedpart

y 27,30 9 97,49 1 34,21 9 9,49 4 14,15 2 12.61 0 LON G TER M DEB T 195.27 5 Loan s payabl e Note s payabl e Accrue dinteres t

payabl e 365,78 5 490,85 4 68,87 6 925,51 5 STOCKHOLDERS ' EQUIT Y 1,120.79 0 Commo n stoc k o f $ 1 pa r valu e 1.000,00

0 share s authorized ; 1,00

0 share s issue dan

doutstandin g Addhiona l paidin capita

l Retaine dearning s 1,00 0 110.00 0 

### 43,54 0 154,54 0 $ 1,275,33 0

Th e accompanyin g note s ar e a n integra l par t o f thi s balanc e sheet .

### AI RCHARTER , INC . STATEMEN T O F LOS S AN D RETAINE D EARNING S FO RTH E EIGH T MONTH S PERIO D ENDED AUGUS T 31 , 201 0 REVENUE S Servic e incom

e $ 2,309,03 3 OPERATIN G EXPENSE S Salarie s an

dpayrol l taxe s Gasolin e an

doi l Repair s an

dmaintenanc e Depreciatio n andamortizatio n Professiona

l fee s Landin g an

dpassenge

r fee s Insuranc e Rent Utilitie s Offic e expense s Credi t car dcommission s Representatio n an

dtrave l Vehicle s Other taxe s Advertisin g 489,27 9 624,67 8 257,14 3 216,19 3 211,94 3 102,82 8 95M 3 67,33 1 32,68 7 36,28 7 43,02 3 41,34 2 17,56 2 9,21 1 6,33 0 (2,251.500 ) Income fi-omoperation s 57,53 3

Th e accompanyin g note s ar

e a n integra l par t o f thi s financial statement .

### AI RCHARTER , INC . STATEMEN T O F LOS S AN D RETAINE D EARNING S FO RTH E EIGH T MONTH S PERIO D ENDED AUGUS T 31 , 201 0 OTHE RINCOM E (EXPENSES ) Interes t incom e 8 5 Interes t expens e an

dban k charge s (72.967 ) (72,882 ) NE T LOS S (15,349 ) Retaine dearnings , beginnin g of th e perio d58,88 9 Retaine dearnings , en

do f th e perio d$ 43,54 0

The accompanyin g note s ar e a n integra l par t o f thi s financial statement .

### AI RCHARTER , INC . NOTE S T O FINANCIAL STATEMENT S

AUGUS T 31 , 201 0 (1 ) Operation s an dsummar y o f significan t

accountin g policie s - (A) Operation s - Ai r Charter , Inc . was incoiporate do n Jun e 1,1987 , in the Commonwealt h o f Puerto Rico . (B ) Summar y o f

sjgnificau t

accountin g policie s - A summar

y o f th e significan

t accounting policie s consistently applie di n th e preparatio n o f

th e accompanying financial statement s follows . i ) Propert y an dequipmen t - Propert y an dequipmen

t ar e stateda t cost , les s accumulate ddepreciatio n an d amortization . Depreciatio n an damortization ar

e compute dusing th e straightlin e metho dove

r th e estimate dusefu

l live s o f th e assets . A s o f Augus t 31,2010 , estimatedusefu

l liv e o f propert y an dequipmen

t wa s a s follows : Estimate d Useful Liv e Aircraf t Leasehol dimprovement s Vehicle s Hanga r Offic e equipmen

t Securit y equipmen

t Computer s 5 year s 5 year s 3 t o 5 year s 3 0 year s 3 t o 5 year s 5 year s 3 year s A t th e tim e propert

y an dequipmen

t ar e soldo r otherwis e dispose dof

, the cos t an drelate daccumulate

ddepreciation an

damortization ar

e removedfro

m th e book s an

dtlie resultin g gain o r

loss , if any , i s credite do

r charge dto operations . ii ) Cas h an dcas h equivalent s - The Compan

y consider s all highly liqui ddeb t instmment s purchase dwit

h a maturit y o f thre e month s o

r les s to b e cash equivalents .

### iii ) Us e of estimate s - I n preparin g th e Company' s financial statements , managemen t i s require dt

o mak e estimate s an

dassumption s tha

t affec t th e reporte damount s o f

asset s an dliabilities , th e disclosur

e o f contingen t asset s an dliabilitie s a

t th e dat e o f th e financial statements , an

dthe reporte damount s o f

revenue s an

dexpense s durin g th e reportin g period . Actua l result s coul ddiffe

r fi*o mthos e estimates . (2 ) Loan s payabl e - A s o f Augus t 31,2010 , th e Compan

y ha dth e follovwn

g loan s payable : Descriptio n Amoun t 8.25 % loa n payabl e t

o bank , secure dwit

h office , du e in monthl y installment s o f $3,88 1 tlu-oug

h July , 201 1 whe n remainin g principa

l balanc e will b e due . $ 342,38 7 1.99 % loa n payabl e to financing institution , securedwit h vehicle , du e i n monthly installment s o f $25 9 through June , 201 3 8,31 2 6.21 % unsecure dloa

n payabl e t

o financing institution , du e i n monthly installment s o f $ 1,54 6 through April , 201 0 42.39 5 Tota l 393,09 4 Les s current

portio n (27.309 ) Lon g ter mportio n $ 365^78 ^ Principa l payment s o f

loan s payabl e fo

r the curren

t yea r 201 0 an dth e next thre e year s following Augus t

31,201 0 ar

e a s follows : Yea r Amount 201 0 $ 27,30 9 201 1 361,44 6 201 2 3,05 0 201 3 1.28 9 Tota l $ 393.09 4

### (3 ) Note s payabl e - A t Augus t 31,2010 , th e Compan

y ha dthe followin

g note s payable ; DescriptJo p ; Amount 7.45 % not

e payabl e securedwit

h aircraf t due i n yearly installmen t o f $37,13 3 due in Ma

y 1,201 0 an

danothe r si x yearl y installment s o f

$49,51 1 du e i

n Ma y 1,201 1 through 201 6 an dfinal installmen

t o f $61,88 9 du e i

n Ma y I , 2017 . $ 267,66 0 7.50 % unsecure dnot e payabl e due i n yearl y installment s o f $42,68 2 through Augus t

1,201 4 172,68 5 9.7 5 % not

e payabl e securedwit

h aircraf t du e i n annua

l principa l instalhnent s o f

$ $21,40 0 du

e in June 1,200 7 throug h 2012 . Interes t i s pai don ayearly basi s ever y June 1 a s follows : 43,00 0 Year Amoun t 201 0 $ 12,51 9 201 1 14,74 2 9.7 5 % note payabl e securedwit h aircraf t due mannxia

l principa l installment s o f

$ $17,50 0 due i

n Febmar y 1,200 7 through 2016 . Interes t i s pai don ayearly basi s ever y Februar y 1 a s follows ; 105.000 Year Amoun t 201 1 $ 8,53 1 201 2 10,23 8 201 3 11,944 201 4 13,65 0 

### 201 5 15,35 6 201 6 17,06 3 

## liiSJ^ i (4 ) Relate dpart y transaction s - Durin g th e eigh

t month s perio dendedAugust 31,2010 , th e Companypai dsalarie s t o officer s amountin g to $66,923 .

### (5 ) Operatin g los s carr y forwar d- A t Augus t 31.2010 , th e Compan

y hadanet

operatin g los s carr

y forwar davailabl e t

o offse t futur e taxabl e incom

e a s follows : Year Amoun t Expiratio n Dat e 200 9 $ 80,32 5 201 7

### Exhibi t

1 3 Forecas t

Financia l Statement s for

th e Mont h Endin g Novembe

r 30,201 0 - October

31,201 1

3 2

### AI RCHARTER , INC . FORECASTE D FINANCIA L STATEMENT S MONTH S ENDIN G NOVEMBE R30,201 0 T O OCTOBE R31,201 1

TOGETHE RWIT H ACCOUNTANT' S COMPILATIO N IMPOR TD(A Z BERCNE S i

JACOB O CONZAlE Z ViOT A &Co . MANUE I D(A Z BfRCNES , C.P.A . PtDR o E , JACOBO , C.P.A , C.F.P . JORC t GONZALtZ , C.P.A . MANUt l VIOTA , C.P.A. , C.V.A .

CEmiREDPUBU C ACCOUMTANT

S



### ACCOUNTANT' S COMPILATIO N REPOR T To ; Th e Boar

do f Director s o f

An - Charter , Inc . Carolina , Puert o Ric o W e hav e compile dth e accompanyin g forecaste dbalanc e sheet s andth e relate dstatement s o f income , retaine dearning s an dcas h flows o f Ai r Charter , Inc. , a s o f

Novembe r 30,201 0 t o Octobe

r 31,2011 , an dfo r th e month s the n ending , i n accordanc e wit h Statement s o n Standard s fo r Accountin g an

d Revie w Service s issue db y th e America n Institute o f

Certifie dPubli c Accountants . A compilatio n i s limite dt o presentin g i n th e for mo f forecast information tha

t i s th e representatio n o f management

anddoe s no t

includ e evaluatio n o f

th e suppor

t fo r th e assumption s underlyin g th e forecast . W

e hav e no t examine dth e forecast , and . accordingly , d o not expres s an opinio n o r

an y other for mo f assuranc e o n th e accompanyin g statement s or assumptions . Furthermore , there wil l usuall y b e difference s betwee n th e forecaste dandactua l result s becaus e event s an dcircumstance s fi^quently d o no t

occu r a s expected , an dth e difference s ma y b e material . W e hav e n o responsibilit y t o update thi s repor

t fo r event s an dcircumstance s occiurin g afte r th e dat e o f

thi s report . October 5,201 0 Sa n Juan . Puerto Ric o Licens e #22 0 Expirmg i n December

1,201 0 ESS^ll E 

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### AI RCHARTER , INC . DETAI L O F ADMINISTRATIV E AN D MAINTENANC E SALARIE S

Administrativ e Employe e Positio n President andD . 0 . Vic e Presiden t

an dChie f Pilo t Directo r o f Maintenanc e Secretar y Salar y pe r Mont h $ 4,50 0

4,50 0 3,500 2,00 0 Subtota l 14,500 Payrol l Taxe s Tota l 2.17 5 16,67 5

Maintenanc e Mechanica l Mechani c # 2 Mechani c # 3 Assistan t mechani c Helper Subtota l Payrol l Taxe s $ 

### 2,60 0 1,64 7 1,38 7 1,30 0 75 5 7.68 9 1,15 3 Tota l 8,84 2

### AI RCHARTER , INC . NOTE S T O TH E FORECASTE D FINANCIA L STATEMENT S MONTH S ENDIN G NOVEMBE R30,201 0 T O OCTOBE R31,201 1 OPERATION S AND SUMMARY O F SIGNIFICAN T FORECAS T ASSUMPTION S NOT E A - OPERATION S Ai r Charter , Inc . wa s incorporate don Jun e 1,1987 , i n th e Commonwealt h o f Puert o Rico . Actuall y th e Compan y i s engage din mail , charter an dcarg o operations ; an dha s contract s wit h th e Municipalitie s o f

Culebr aan

dVieque s fo

r airlin e transportatio n services . Management i s currentl y workin g t o obtai n necessai y license s an dcertification s t o star

t commute r operations . Normally th e Company prepare s it s financial statement s o n acalenda

r yea r basis . Th e accompanyin g forecaste d balanc e sheet s an dstatement s o f incom e an dretaine dearning s wer e prepare dfo r th e twelv e month s perio dfro mNovember 1,201 0 (expecte dcommencemen t dat e o f commute r

operations ) t o Octobe r

31,2011 . NOT E B - SUMMAR Y O F SIGNIFICAN T FORECAS T ASSUMPTION S Thi s financial forecas t

presents , to th e bes t

o f management' s knowledg e andbelief , th e Company' s expecte dfinancial position , result s o f operation s for

th e forecas t

period . Accordingly , th e forecas t reflect s management' s judgmen t a s o f October 5 , 2010 , th e dat e o f

thi s forecast , o f

th e expecte d condition s an dit s expecte dcours e o f action . Th e forecas t

i s designe dt o presen t

th e forecaste d financial positio n an dresult s o f operation s o f

Ai r Charter , Inc. , a s o f

November

30,201 0 t o Octobe

r 31 , 2011 , an dfo

r th e month s the n ending . Th e assumption s disclose dherei n ar e thos e tha t th e managemen t

believe s are significan

t t o th e forecast . Ther

e wil l usuall y b e difference s between th e forecaste dan dactual results , becaus e event s an dcircimistance s fi^equently do no t occur a s expected , andthos e difference s ma

y b e material . 1 . Revenue s - Th e Compan

y operate s in variou s busines s segment s a s explaine dbelow : i ) Mail , Charte r

an dCarg o Operation s - a . Charte r

- The Compan

y i s mainl y engage din airlin e charte r service s in Puert

o Ric o between th e Mimicipalitie s o f Vieque s an dCulebr aandth e mai n islan dairport s o f

Ceib aandIsl aGrande . Als o th e Compan y flights t o an

dfromth e abov e airport s an dTortola , ST . Thoma s an d St . Croix . Revenu e o n Charter operation s wer e estimate da s follows :

### #o f Flight s Pe r Month 8 1 2 8 6 2 2 2 2 2 2 Fe e pe r

Fligh t $1,20 0 60 0 1,30 0 70 0 1,40 0 2,00 0 1,40 0 80 0 1,30 0 1,40 0 Marke t (Roun dTrip ) Isl aGrande t o Vieque s Ceib at o Vieque s Isl aGrande to Culebr a Ceib at o Culebr a Isl aGrande to St . Thoma s Isl aGrande t o Tortol a Ceib at o St . Croi x Culebr at o St . Thoma s Vieque s to St . Thoma s Vieque s t o St . Croi x b . U S Mai l - Th e Compan

y ha s acontrac t

wit h U S Mai l fo

r th e carg o o f

mail t o th e Municipalitie s o f

Culebr aan dVieques . The contrac t expire s on April , 2012 . Revenu e wa s estimate dbase do n prio r experienc e t o b e $5,50 0 pe r

wee k excep t fo r th e month s fi-omNovember throug h Januar y fo r whic h estimate drevenu e pe r wee k i s $ 12,000 . c . Unite dFarce ! Servic e (UPS ) - Th e Compan

y ha s a n open contrac t

wit h UP S fo r carg o service s fo

r a flat fe e per mont h o f $5,720 . d . Se aWorld , Inc . - Th e Compan

y ha s a n ope n contrac t

wit h Se aWorld , Inc . fo

r carg o transportatio n service s whic h includ e tw o weekly flights t o St . Thoma s fo

r afee per flight o f $70 0 andon e weekly flight t o Tortol a for afe e pe r flight o f $1.050 . ii ) Contract s wit h th e Municipalitie s o f Culebr aan dVieque s - Th e Company ha s contract s wit h th e Municipalitie s o f

Culebr aan

dVieque s fo r airlin e transportatio n services . Revenu e wa s estimate dbase do n prio r experienc e a

t $13,50 0 and$6,00 0 fo

r CulebraandVieques , respectively . Contract s expire o n Jun e 30 , 201 1 an dar e expecte dt o b e renewe dfo r a n additional year

- o n th e sam e terms .

### iii ) Commute r service s - Managemen

t i s currentl y workin g t o obtai n necessar y license s and certification s t o star

t commute r operation s to andfro

mCeib aan

dIsl aGrande t o an dfro mCulebr aan dVieques . Thi s operatio n i s expecte dby managemen t t o star t o n November

1 , 2010 . Refe

r to Forecaste dRevenu e b y Marke t Schedul e fo

r computatio n o f

monthly revenue s fro

mthi s segment

o f operations . 2 . Direc t

expense s - i ) Pilo t

salarie s an dpayrol l taxe s - a . Mail , charte r

an dcarg o operation s - Salarie s wer e estimate da

t $10 0 per da y pe r pilo t ( 1 pilo t per da y fo r th e month s o f

Februar y throug h Octobe

r and2 pilot s fo

r th e month s o f November

throug h January) . Payrol l taxe s wer e estimate dat

15 % o f salaries . b ) Contract s wit h th e Municipalitie s of Culebr aan dVieque s - Salarie s were estimate dat $10 0 per da y per pilo t ( 1 pilo t pe r day) . Payrol l taxe s wer

e estimate da

t 15 % o f salaries . c . Commute r

service s - Salarie s were estimate da

t $10 0 per da y per pilo t ( 2 pilot s pe r

day) . Payrol l taxe s wer e estimate da t 15 % o f salaries . ii ) Gasolin e an doi l - a « Mail , charte r

an dcarg o operation s -

- Charte r operation s Estimate dflight

tim e per mont h wil l b e 3 9 hour s a

t 3 0 gallon s pe r hour at $ 5

### - u s MAI L Novembe r throug h Januai y 5 1 flights per

wee k a t 1. 6 hour s flight

tim e a t 3 0 gallon s pe r hou r a t $ 5 per gallo n Februar y throug h October 3 1 flights per

mont h at 1. 6 flight tim e a t 3 0 gallon s pe r

hour a t $ 5 pe r gallo n -UP S 8 flights per

mont h a t 1. 6 flight tim e a t 3 0 gallon s pe r

horn - at $ 5

- Se aWorld , Inc . 2 flights per

wee k a t . 8 flight tim e a t 3 0 gallon s pe r

hou r a t $ 5 plu s 1 flight pe r wee k a t 1. 6 flight tim e a t 3 0 gallon s pe r

hou r a t $ 5 b . Contract s wit h th e Municipalitie s o f Culebr aan dVieque s - 1 6 flights per

wee k at . 6 bloc k time a t 3 0 gallon s pe r

hou r a t $ 5 c . Commute r

service s - 7. 8 flight time per da y a t 3 0 gallon s a

t $ 5 iii ) Landin g an dpassenge r fee s - a . Mail , charte r

an dcarg o operation s -

- Charte r operations : Isi aGrande t o Vieque s 8 flights at $48 ; Vieque s t o St . Thoma s 2 flights a

t $7 3

- U S MAI

L an dUP S $37.9 6 per

da y pe r aircraf t ( 1 plan e fi-om Februar y t o October

and2 plane s fro

mNovember

t o Januar y

- Se aWorld , Inc . $3 3 in Sa n Juan , $1 5 i n St . Thoma s an d$2 5 in Tortol aper

flight b . Contract s wit h th e Municipalitie s o f Culebr aan dVieque s - 1 6 flights per

mont h a t $11.4 8 pe r flight c . Commute r

service s - $129.3 2 pe

r da y

### 3 . Indirec t expenses , othe r

incom e (expenses ) an dincom e ta x - Indirec t expenses , other

incom e (expenses ) andincome ta

x wer e allocate dt o busines s segment s usin g th e gros s t o gros s revenu e metho dan dth e followin g percentages : Mail , charte

r andcarg o operation s 27 % Contiact s wit

h th e Municipalitie s o f

Culebr aan

dVieque s 6 % Commute r service s 67 % i ) Administrativ e an dmaintenanc e salarie s an dpayrol l taxe s - Refe r t o Detai l o f

Administrativ e an dMaintenanc e Salarie s fo r more details . ii ) Othe r

indirec t expense s - Wer e estimate dbase do n 200 9 audite dexpense s adjuste dt o th e numbe r o f airplane s expecte dt o b e flown durin g th e forecas t perio d iii ) Othe r

incom e (expenses ) - Wer e estimate dbase don 200 9 income an dexpense s iv ) Incom e ta x - Wa s estimate da

t 33 % o f taxabl e income NOT E C - SUMMARY O F SIGNIFICAN T ACCOUNTIN G POLICIE S Th e Company' s accountin g policie s confor mt o predominant

practice s followedb

y th e industr

y an d ar e i n accordanc e wit

h accountin g principle s generally accepte di n th e Unite dState s o f America . 1 . Propert y an dequipmen t - Propert y an dequipment

are state da

t cost , les s accumulate ddepreciatio n and amortization . Depreciatio n andamortizatio n ar e compute dusin g th e straight-lin e metho dove

r th e estimate dusefu

l live s o f th e assets . A s o f Octobe r 31,2010 , estimate dusefu

l liv e o f propert y an dequipment

wil l b e a s follows :

### Estimate d Descriptio n Useful Liv e Aircraf t 5 year s Leasehol dimprovement s 5 year s Vehicle s 3 t o 5 year s Hanga r 3 0 year s Office equipment

3 t o 5 year s Computer s 3 year s A t th e time propert

y an dequipmen t

ar e sol do r

otherwis e dispose dof

, th e cos t an d relate daccumulate ddepreciatio n an damortizatio n ar e remove dfro

mth e book s and th e resultin g gai n or

loss , i f any , i s credite dor

charge dt o operations . 2 . Cas h an dcas h equivalents - Th e Compan

y consider s al l highl y liqui ddeb t instrument s purchase dwit h amaturit y o f thre e month s o r

les s to b e cas h equivalents . 3 . Us e o f

estimate s - I n preparin g th e Company' s financial statements , managemen t i s require dt o make estimate s andassumption s that affect th e reporte damount s o f

asset s andliabilities , th e disclosure o f

contingent

asset s an dliabilitie s a

t th e dat e o f

th e financial statements , andth e reporte damount s o f revenue s an

dexpense s durin g th e reportin g period . Actua

l result s coul ddiffe

r fromthos e estimates . NOT E D - LOA N PAYABL E A s o f October 31.2011 , th e Compan

y expect s t o hav e a1.99 % loa n payabl e to financing institution , secure dwit

h vehicle , du e i n monthly installment s o f $25 9 throug h June , 2013 . NOT E E - NOTE S PAYABL E A t October 31,2011 , th e Compan

y expect s t o hav e th e followin g note s payable : Descriptio n Amoun t 7.4 5 % not e payabl e secure dwit h aircraf t du e i n yearly installment s o f

$49,51 1 du e i n Ma

y 1,201 2 throug h 201 6 an dfinal installmen t

o f $61,88 9 du e i n Ma

y 1,2017 . $ 238,79 9 7.50 % unsecure dnote payabl e du e in yearl y installment s o f $42,68 2 throug h Augus t

1,201 4 110,99 5

### 9.7 5 % not e payabl e secure dwit h aircraf t du e i n Jun e 1,201 2 Interes t i s pai don ayearl y basi s ever y Jun e 1 a s follows : 21,60 0 9.7 5 % note payabl e secure dwit h aircraf t du e i n annua l principa l installment s o f

$ $17,50 0 du e i n Februar

y 1 . 201 2 throug h 2016 . Interes t i s pai don ayearl y basi s ever y Februar y 1 a s follows : Yea r Amoun t 201 2 $10,23 8 201 3 11,944 201 4 13,65 0 201 5 15,35 6 201 6 17,06 3 87.50 0 $ 458.89 4 

## NOT E F - RELATE D PART Y TRANSACTION S Durin g th e twelv e month s perio dendin g October 31,2011 , th e Compan

y expect s t o pa

y salarie s t o officer s amountin g t o $108,000 .

# Exhibi t 1 4 Certificat e o

f Insuranc e

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s A wBlt c OMi.^cofi'.Tjin.ifrAtts U.S . Departmen t o f Transportatio n ' NOrC - ft- - imnfmiiKi n n n AIW" . I O Ill t '.smpteic a (SP^ Ko f It w tem ? « fHW G INSTRUCTION S MOJ , i Otfic e o f ili e Secieiac v 0 ( Transpoiiaiio.' i ' • — (»< 8 No . 210C^)03Q.Ei(Cii.ii i 5-30-200 ? U.S . AI R CARRIER S - CERTIFICAT E O F INSURANC E POLICIE S O F INSURANC E FO R AIRCRAF T ACCIDEN T BODIL

Y INJUR Y AN D PROPERT

Y DAMAG E UABILIT

Y FILIN G IMSTRUCTIONS : Fil o a sjgnec l origins ! o f tni s for m wis h (h e Fedei^ l Awabo n AdmirestraHon . AFS-260,80 0 Independenc e Av e . SVi/. , WasHreiton . DC . SaW I (Se e EXCEPTION S ' • aiK J 2 below ) EXCEPTtO M 1 : I I Bloc k 2 B o n Ih e revers e i s h'te d i n IsecauE e tti e insuie d i s »iaaiT<i7n4eiai rcarrier . B e a signe d origtna l o f thi s for m vwl h th e Depanrnen l o f Transportalioi vAi f Came rFitnes s Division . X-56 . 4( « '"Si. . SW , Washinglon , D C 20590 . EXCEPTIO N 2 : Fo rari i insure d tha t i s locate d m (fi e Stei e o f Alask a (reganses s a s t o vvhethe t Blod t 2 A 2B . o r2 C i s tille d iti l file a sigrc- d origina l d tin s (om i wW i th e Federa l Awafco n Administraton . Alaska n Regio n HO. . AAL-230.22 2 W 7 " Ave. , rii. l Anchorajje . Alasl< s 99513 . IPiitea e typ e inloiinaU-Ki . exani> i .^.grialurcs i THI S CERTIFIE S THAT : Housto n Casualt y Compan y (Nam e o l Insurer) ha s issue d a polic y o rpolicie s o f Aircraf t Liabilit y Insuranc e t o Ai rCharter , Inc . db a Ai rFlamct^c o A M F Facilit y P.O . So x 81035 2 Carolina , P R 00981-035 2 FA A Certificat e No : UOtA831 U (Nam e an d addres s of Insure d U S Ai rCarner) effectiv e fro m Jul y 14 . 201 0 unti l te n (10 ) day s afte rwritte n notic e fro m th e insure ro rcarrie ro f th e inten t t o terminat e coverag e i s receive d b y th e Departmen t o f Transportation . ; NOTE : Par

t 20 5 o f ihi ; Oepartmen i s Regulalion s doe s not allo w fora predetermine d termiiialior i date , an d a certificat e showin a suc h a dal e i s unacceptabl e : 1 . Th e Insure r(OVrpr t Orte;. ' D i s license d t o issu e aircraf t insuranc e policie s i n th e Unite d States ; D i s license d o rapprove d b y th e governmen t o f t o issu e aircraf t insuranc e policies : o r i s a n approve d surplu s lin e insure ri n th e State(s ) o f Puert o Ric o fU.S . Territory ) 2 . 1 h e insure rassumes , unde rih e polic y o f policie s feied below , aircraf t aijciden i liabilil y insure d l o minimum s a t leas t equa l t o th e followin g durin g operabons . rnaintenance , Q I us e o f aiicraf i i n ai rlisnsportsiiori ' a s tha t ter m i s define d i n il H L J S O 4010 2 iCompieli ! apfilicabtf ! seaii.>ii(n } belw/j : A . U.S . AI R TAX I OPERATOR S WIT H PAR T 29 8 AUTHORIT

Y ONL Y Th e aircraf t covere d b y thi s polic y ar e SMAL L AIRCRAF T (i.e. , wit h 6 0 o rfewe rpassenge rseal s o rwit h a maximu m payloa d capacit y o f 18.1)0 0 pound s o rless) . lO'oo k separat e o rcornDiiw d coverag e a s aftprofiriate l Separat e Coverages : Hjtinimu m Limi t

Polic y No . Typ e o f Liabilit y £ac h perso n Eacf i Occurrenc e Sodil y Injur y Liabilit y (Excludin g Passengers ) $75,00 0 $75,00 0 X 75 % o f Passenge r8oclil;^)njur y ^ tota l numbe ro f ' " ' ~ ~ passenge rseat s iristalle d i n aircraf t

.. __, , Properl y Damag e $100,00 0 K g Combine d Ci>verage : Thi s combine d coverag e i s a singl e limi t o f liabilit y fo reac h occurrenc e a i leas t equa l t o Hi e require d tninimom s state d ' ^ abov e fo rbodil y injur y (excludin g passengers) , propert y damaged , an d passenge rtiodil y injury . Poiic y No . Amoun t o f Coverag e *1,000,00 0 eac h occurrenc e I

014667^11 4 $100,00 0 eac h passenge r n Thi s polic y cover s CARG O operation s onl y an d exclude s passenge rliabilit y insuranc e OS T For m 641 0 " ' " " CERTIFICAT E MO . 1B . U.S . COMMUTE R AN D CERtrRCATE D AI R CARRIER S OPERATIN G SMAL L AIRCRAFT "



### D Th e aircraf t cowre d b y tiii s polic y ar e SM.M L AIRCflAF rf i. e . Will i tj O o rfeive rpassenge rseat s o rw\ h » niaximun i p f ^-foa d capacil y o ( 18,00 0 round s o rless ) {Chpc k sofjarnl/ i a comixne O mvemsf ' 9 ' anptOf)tiat(>t . Separat e Coverage s Policy N o Minimu m Limi l Typ e o i Liability Eaci i perso n Eac h Occurrenc e Combine d Bodil y Injur

y (Excludin g Passer>ger

s othe rtha n carg o atteiKfants ) an d Propert

y Damag e Liabilit

y Passeiige t Bodil y Injur

y __ _ S.300.00 0 S300.00 0 X 75 % o f tola ! numbe ro f passenge rscat s installe d i n aircraf

t r— I Ckimbine d Coverage ; Thi s comtiine d coverag e i s 3 singl e limi t o f liability fo reac h occurrenc e at leas t equa l l o Ih e require d minimum s slate d abov e '— ' fo rbodil y injur

y (excludin g passengers) , properl y damaged , an d passenge rbodil y injury . Policy No . Amoun t o f Coverag e

• Thi s policy cover s CARG O operation s onl y an d exclude s passenge rliabilit y insurance . C . 

### D U.S . CERTIFJCATE D AI R CARRIER S OPERATIN G LARG E AIRCRAFT

Th e aircraf t covere d b y i t (Criw. A SftiKViil e o rcoirti : Separat e Coverage s Th e aircraf t covere d b y itii s polic y ar e LARG E AIRCRAF I (i, e . wit h mor e Iha n G O passenge rseat s o rwit h a itiaxirriu m payloa d capscn y o f rnor e tha n 16,00 0 pounds ) (Criw. A SftiKViil e o rcoirtlune a covsraitv s u s apittoimtitel : Minimu m Limi t Policy Ato . Typ e o f Liability Eact i perso n Eac/ ) Occuirenc e Combine d Bodil y Injur

y (Excludin g Passenger

s othe riha n carg o S3OO.0D 0 attendants ) an d Propert

y Damag e Liability Passenge rBodil y injur

y $300,00 0 $20,000,00 0 $300,00 0 X 75 % o f tota l numtie ro l passenge rseat s installe d i n aircraft p- j Combine d Coverage ; Thi s combinti d coverag e i s a singl e limi t o l liability fo reac h occurrenc e at least equa l t o th e require d rtiinimum s state d abov e '— ' to rbodil y Injur

y (excludin g passengers) , propert y damaged , an d passenge rbodil y injury . Policy No . Amoun t o f Coverag e D Thi s polic

y covers CARG O operation s onl y an d Bxdude s passenge rliability insurance th e polic y a i policie s Hste d i n ihi s certificat e msurcfs ) (CliL'c k Ow) ' Mak e an d li^ode i FA A o rForeig n (-la g Regislrstio n N o E l Operalion s conducte d wii b al l aircraf t operate ? b y the'lnsiire d D Operalion s conducte d wil b ih e followin g type s o l aircraf t D Operalion s vnl h th e followin g aircraft : iUs t ^nniiKtim i f*i e rt necesaiy ) 4 Eac h polic

y liste d i n thi s certificjat e meet s o rexceed s Ih e reqitirement s i n 1 4 CF R Par t 205 . Housto n Casualt

y Compan y (Nain a o f Imorei ) 1340 3 Ivtorthwes

t Freewa y (Adiitftsa ) Houston , T X 7704 0 (Nam e o l Btaker . i f aftiilicgble ) (Aiklrcss ) lCity.Slnle.2i p Code ) Christoptie rD , Bennet t (CJy . Stale . Zi p Coele ] Ctvita a Iperso n wh o ca n vent y l/i e filfCK:livimg.<!S o f lli e ixwirags ) 713-462-100 0 713-744-966 6 \Atp. H C«i^

^ r-Vwri' ? IJfjtritjf.ft iA'<v i Cciitt*. ' r-.-t x ivtimvm ] tOHice ro raulhonxc n rdpiesentatiwe ) t»je a Coiic . Piion e NturAter ' Anti t C<>f. V /.') > NuriiUfx )

^—? " —r—-STtn——— — ....-.-.'•.;i^.L_-— _ iSiifititltif vi t {^.iff^air M (Oali' i

# ExW W ibi t 1 5 interi mAgreement

3 4& Docke t OS T 95-23 6 U.S . Departmen t

of Transportatio n Offic e o f th e Secretar

y o f Transportatio n AGREEMEN T Th e undersigne d canier s (hereinafte rreferre d t o a s 'th e Carriers" ) hereby agre e a s follows : 1 . Eac h o f «i e Carriers shall , effectiv e May 16,1966 , includ e th e fcdiowin g i n it s condition s of carriage , includin g tariff s emt)odyin g condition s o f carriag e filed Ij y i t wit h an y govemntent ;

"Tfi e Canie rshal l avai l itsel f o f th e limitatio n o f liabilit y provide d i n th e Conventio n fo rth e Unificatio n o f Certai n Rule s Relatin g t o Internationa l Carriag e b y Ai rsigne d a t Warsa w Octobe r12tfi , 1929 , o rprovide d i n th e sai d Conventio n a s amende d b y th e Protoco l signe d a t Th e Hagu e Septembe r28th , 1955 . However , i n accordanc e wit h Articl e 22(1 ) o f sai d Convention , o rsai d Conventio n a s amende d by sai d Protocol , tti e Came ragree s that , a s t o al l internationa l transportatio n b y th e Canie ra s define d i n th e sai d Conventio n o rsai d Conventio n a s amende d ti y sai d PrcAocol , wtuch , accordn g t o th e contrac t o f Carr»ge . include s a poin t i n th e Unite d State s o f Americ a a s a poin t o f origin , pdn t o f destination , o ragree d stoppin g plac e (1 ) Th e limi t o f liability foreac h passenge rfo rdeath , wounding , o rothe rbodil y i^^ut y shal l b e th e su m o f U S $75,00 0 inclusiv e o f lega l fee s an d costs , ^oep t that , i n cas e o f a dai m brough t i n a Stat e where provisio n i s mad e fo rseparat e award o f lega l fee s an d coste . th e limi t shal l b e th e su m o f U S $58,0CX ) exclusiv e o f lega l fee s an d costs . (2 ) Th e Carrie rshal l no t wit h respect t o an y clai m arisin g ou t o f th e death , wounding , o rothe rbodil y irijur y o f a passenger , avai l itsel f of an y defens e unde rArticl e 20(1 ) of sai d Conventio n o rsai d Conventio n a s amende d by sai d Protocol . Nothin g herei n shal l b e deeme d t o affect th e rights an d liabilitie s o f th e Canie rwit h regar d t o an y clai m btou^ t by , o n behal f of , o ri n respect o f an y perso n wt m ha s willfull y cause d damag e whic h resulte d i n death , wounding , o rothe rbodil y irijur y o f a passenger. ' 2 . Eac h Canie rshall , at th e time o f deliver y o f th e ticket, furnis h t o eac h passenge rwhos e transportatio n i s governe d b y th e Convention , o rth e Conventio n a s amende d by th e Hagu e Protocol , an d by th e specia l oontitic t describe d i n paragrap h 1 , th e followin g notice , whic h shal l b e printe d i n typ e a t leas t a s la-g e a s 1 0 poin t mode m typ e an d i n in k contrastin g wit h th e stoc k o n (i ) eac h ticket; (ii ) a piec e o f pape reithe rplace d i n th e ticket erwetop e wit h th e ticket o rattache d t o th e ticket; o r(iii ) o n th e ticket envelope : "ADVIC E T O irrrERNATIONA L PASSENGE R O N LIMITATIO N O F LIABILIT Y Passenger

s o n a Journe

y involvin g a n uttimat e destinatio n o ra sto p i n a countr y othe rtha n ttie countr

y o f origi n ar e advise d tha t th e proviston s o f a treat y know n a s ttie Warsaw Conventio n ma y b e applicabl e t o tiie entir e journey , includin g an y portio n entirel y withi n th e countr y o f origi n o rdestination . Fo rsuc h passenger s o n a journe y to , from , o rwit h a n agree d stoppin g plac e i n th e IMte d State s o f Amertea , th e Conventio n an d specia l conbBcts o f carriag e embodie d i n applicabl e tarif f provid e ttiat th e liabilit y o f [certai n J * [(nam e o f canier ) an d certai n (fther ] canier s partie s t o suc h specia l contract s fo rdeatt i o f o rpersona l injur y t o passenger

s i s limite d i n mos t case s t o prove n damage s no t t o excee d U S $75,00 0 pe rpassenger , an d ttiat thi s liability u p t o suc h limi t shal l no t depen d o n negligenc e o n ttie par t o f th e canier . Fo rsuc h passenger s travelin g by a earne rno t a part y t o suc h specia l contract s o r o n a journe y no t to , fi-om , o rhavin g a n agree d stoppin g plac e i n ttie Unite d State s o f America , liability o f th e canie rfo rdeatt i o r persona l injui y t o passenger s i s limite d i n mos t case s t o approximatel y U S $10,00 0 o rU S $20,000 . Th e name s o f Carrier

s partie s t o suc h specia l contract s are availabl e a t al l ticket office s o f suc h carriers an d ma y b e examine d o n request . Additiona l protectio n ca n usuall y b e cd>taine d b y purchasin g insuranc e fi-om a privat e company . Suc h insuranc e i s no t affecte d b y an y limitatio n o f th e carrier' s Habilit y unde rttie Warsaw Conventio n o rsuc h specia l contiact s o f carriage . Fo rfurthe r informatio n pleas e consul t you rairiin e o rinsuranc e compan y representative. " 3 . [TfH S Agreemen t wa s filed wit h ttie Civi l Aeronautic s Boar d o f ttie Unite d States . Th e Board approve d i t b y Onje rE-23680 . adopte d May 13,1966 . Th e Agreemen t (Agreemen t 18900 ) becam e effectiv e Ma y 16,1966 . O n Januar

y 1.1985 , ttifs Agreemen t becam e th e rraponsibilit y o f ttie Departmen t o f TransportatkM i (DOT ) b y operatio n o f law. ] 4 . Thi s Agreemen t ma

y b e signe d i n an y numt>e ro f counterparts , al l o f whic h shal l constitut e on e Agreemen t An y Canie rma y becom e a part

y t o ttiis Agreemen t b

y signin g a counterpar

t hereo f an d depositin g i t wnt h DOT . 5 . An y Canie rpart

y heret o ma

y wittidra w from thi s Agreemen t by givin g twelv e (12 ) moi^ ' writte n notice^wittidrawa l t o DOT an d th e othe rCarrier s partie s t o ttie Agreemen t - ^/^ ^ ^ '•c^,^ ^ (Signatur e an d Date > ^g&t^><*<»g ^ y'^*^— * •EHheraHematlv e ma y t) e used . Francisc o Torre s Presiden t (Pnnte d Nam e an d Title ) Ai r

Charter , In c (Nam e an d Addres

s o f Canriei ) 08TFonn4823(Form.rtyCABForm263 ) Lindberg h stree t sout h ra« p Ixi t

7 Isl aGrand e Airpor t Sa n Juan , P.R . 0090 7

# Exhibi t

1 6 Stat e Departmen t

Certificatio n for

Ai r Flamenc o

3 5

### GOVERMENI T O F PUERT O RIC O DEPARTMEN T O F STATE SA N JUAN , PUERT O RIC O CERTinCATIO N 

### I , Grice l Falgk s Rodriguez , Directo r Actin g Corporat e an dTrademark s Registrie s o

f State , o f th e Commonwealth o

f Puert o Rico . D O HEREB Y CERTIFY : Tha t accordin g t o th e record s o f thi s Offic e a n applicatio n t o th e tradenam e "AI RFLAMENCO" , wa s filedi n thi s Departmen t o n Api'i l 3 , 2000 , belongin g t o Sr . Francisc o Torre s Gonzalez , for '*Transport e aere o comercial" . AN D I FURTHE RCERTIFY : Th e documen t i s pendin g for

evaluation . I N WITNES S WHEREOF , th e undersigned , b y virtu e o f th e authorit y veste db y law , hereb y issue s thi s Certificat e an daffixe s th e Grea t Sea l o f th e Commonwealt h o

f Puert o Rio o a t th e Cit y o f Sa n Juan , thi s thir dda y of

april , o f tb e yea r

two thousand . Grice l F^ga s ftbdriguez - ^ Actin g Directo r Corporat e an dTrademark s Registrie s 1214272 5 - $10,0 0

# Exhibi t 1 7 Propose dSchedul e Flight s

3 6

### Propose dFligh t Schedule s ISL A GRAND E (SIG ) T O CULEBR A (CPX ) r:FlightSiBheaaie-ti ' ••'»- : -;.,:^^^. : - W- ^ ^ f:.fcg t Vy^^':

^ ;;;...,•:. • .;^^^ . • - ^ ..^.-'-ffi^tv/;*, , =:,;:-; . y'-Vi;;. . --:;;,,,.:. , i,;: . ,:fy.. ^ :T' | ^ Fligh t Segmen t # 1

2 3 4 5 6 7 8 Numbe r 10 1 10 3 10 5 10 7 Origi n

SI G SI G SI G SI G Destinatio n

CP X CP X CP X CP X Depar

t 8:00:0 0 13:00:0 0 16:30:0 0 18:00:0 0 Arriv e

8:30:0 0 13:30:0 0 17:00:0 0 18:30:0 0 Days o f Operatio n (1=Segmen t Flown ,

fVlon 1 1 1 1 Tue s 1 1 1 1 Wed s 1 1 1 1 Thur s 1 1 1 1 Fr I 1 1 1 1 a=Not Flown ) Sat 1 1 1 Su n 1 1 1 Mile s 4 8 4 8 4 8 4 8



### CULEBR A (CPX ) T O ISL A GRAND E (SIG ) &PlightSchedule2''^.-J^ , ; : . . !\':y-l : ^ :,^.;t j j;; o •

, ^, : ^v;./'^;;^^

^ , : •sf ;. ^ •-^ p,: , • Fligh t Days o f Operatio n (1=Seqmen t Flown , 0=No t Flown ) Segmen t # 1

2 3 4 5 6 7 8 Numbe r 10 2 10 4 10 6 10 8 Origi n

CP X CP X CP X CP X Destinatio n

SI G SI G SI G SI G Depar

t 7:00:0 0 11:30:0 0 15:30:0 0 17:20:0 0 Arriv e

7:30:0 0 12:00:0 0 16:00:0 0 17:50:0 0 Mo n

1 1 1 1 Tue s 1 1 1 1 Wed s 1 1 1 1 Thur s

1 1 1 1 Fr i 1 1 i i Sa t 1 1 1 1 Su n 1 1 1 Mile s 4 8 4 8 4 8 4 8



### CEIB A (CBA ) T O CULEBR A (CPX ) ...Fifehtseheauie i ••-•-:• ; ' ^ "V-• • - rjc . •./<..>••,- ^ s^;-,:-viv; . : ^

'- • ^

- • .•.it^vA-,:v;,./,^' : ;^;- - ,: . ?- ^ Fligh t Segmen t # 1

2 3 4 5 6 7 8 Numbe r 20 1 20 3 20 5 20 7 Origi n

CB A CBA CB A CB A Destinatio n

CP X CP X CP X CP X Depar

t 07:00:0 0 09:00:0 0 12:00:0 0 16:00:0 0 Arriv e

07:15:0 0 09:15:0 0 12:15:0 0 16:15:0 0 Days o f Operatio n (1=Segmen t

Mo n 1 1 1 1 Tue s t 1 1 1 Wed s 1 1 1 1 Thur s 1 1 1 1 Flown , Fr i 1 1 1 1 0=Not Flown ) Sa t 1 1 1 1 Su n 1 1 1 1 Mile s

2 2 2 2 2 2 2 2



### CULEBR A (CPX ) T O CEIB A (CBA ) FltghtSCh«aule2^'-->-.v;:-^'=.sS,.;, - :.,*, : ^,M,«;A;vr/:; ' ^ -:,:• • ••.:>% v';..^.-y:&ra;t;-;:-. v^ , :',„;>: : . •.•;,:;-.:• ; B::; ^ Fligh t Segmen t # 1

2 3 4 5 6 7 8 Numtse r 20 2 204 20 6 20 8 Origi n

CP X CP X CP X CP X Destinatio n

CBA CBA CB A CB A Depar

t 07:30:0 0 10:00:0 0 13:00:0 0 17:30:0 0 Arriv e

07:45:0 0 10:15:0 0 13:15:0 0 17:45:0 0 Days o f Operatio n (1=Segmen t Flown , 0=No t Flown )

Mo n 1 1 1 1 Tue s 1 1 1 1 Wed s 1 1 1 1 Thur s 1 1 1 1 Fr i Sa t

1 1 1 1 Su n 1 1 1 1 Mile s

2 2 2 2 2 2 2 2