## ::RE:DT.AIL

January 

### 15, 2015 Mr. Todd Homan 

## ..A.. 

## VIA.TION

US Department of Transportation Re: Redtail Aviation EAS Proposal for Moab, Order 

### 2014-11-18
Dear Mr Homan, 

### 14 CFR 204.3(t)

We are pleased to submit a proposal to provide passenger service for the Moab Utah community under the Essential Air Service program. Redtail Aviation, headquartered in Moab Utah has been serving the aviation needs of South Eastern Utah since 

### 1978. The company holds a Part 

### 135 Air Carrier certificate (OWA6A) and currently operates 13 aircraft including the nine passenger, air conditioned, de-iced turboprop Kodiak which is the aircraft we are proposing to fulfil this service. We have operated our first Kodiak for over two years and are taking delivery of a second Kodiak in March of this year. Redtail Aviation now provides on demand charter flights, passenger shuttle service for river rafters, scenic air tours over the National Parks, and air freight service under contract with UPS. We operate the FBO facilities at Moab and Price Utah and our primary maintenance base is located at Canyonlands Field in Moab. In 2014, we flew over 3000 hours as a company and enplaned over 

### 7,000 passengers as an on-demand carrier. We have online and live booking systems in place which could be easily leveraged for the proposed scheduled service. We have a very positive reputation for providing safe, reliable aviation services to the Moab community and have augmented services to the tourism industry which is the backbone of the Moab economy. We will bring that same high

**lev~l** of service to the Essential Air Service program. Our staff and crews are very experienced and have been with us for many years. We have managed to maintain our key personnel and much of our flight and ground crews in the very challenging environment of a highly seasonal business. The following proposal addresses Essential Air Service for the Moab community. Based on discussions with community leaders, we have proposed service that is primarily linked to Salt Lake City with 

### 12 round trips per week but also includes 2 round trips per week to Las Vegas. Thank you for your consideration.



# ar~is, President 

### PO Box 1004, Moab, UT 84532 435-259-7421

## Arrow West Aviation, Inc DBA Redtail Aviation Proposal for Essential Air Service Moab, UT Order# 2014-11-18

Section 

### 1- 14 CFR 

### 204.3 (a)- (e) Section 

### 2

- 14 CFR 

### 204.3 (f) - (m) Section 

### 3- 14 CF R 

### 204.3 (n) Section 

### 4- 14 CFR 

### 204.3 (o)- (s) Section 5 - 

### 14 CFR 

### 204.3 (t) Section 

### 6- 14 CFR 

### 204.3 (u)- (v) Section 7 - 

### 14 CFR 

### 204.4

## R.EDT..A.IL .A. 

## VIA.TION Section 1 14 CFR 204.3 

## (a)- (e)

### 14 CFR 204.3 

### (a)-(c) a) Redtail A v iation Arrow West Aviation, Inc. 94 W Aviation Way Canyonlands Field PO Box 1004 Moab, UT 84532 435-259-7421 b) Corporation c) Utah State Law, Utah Revised Business Corporations Act

### Utab Department of C ommerce Division of C orporations & C ommercial C ode 16 0 Eas t 3 00 South , 2nd Floor, PO B ox 146 705 Salt Lake C ity, UT 84 11 4-6705 Service Center: (801) 530-4849 Toll Free: (877} 526-3994 Utah Reside nts Fax : (80 1)530-6438 Web S it e: htt p: //www. co mmc rce.uta h. gov 

### 12/22/2014 1422512-014212222014-1222383


# CERTIFICATE OF EXISTENCE Registration Number: Business Name: Registered Date: Entity T ype: Current Status: 1422512-0 142 ARROW WEST A VIAT J ON , INC
. September 03, 1998 Corpo ration

- D omestic

- P rofit Good Standing

The Div is ion of Corporations and Commerc ia l Code of the State ofUtah, cus tod ian ofth e records of business registrations , certifies that the business entity on this certificate is authorized to transact business and was duly registered under the laws ofthe State ofUtah. The Division also certifies that this entity has 

### paid all 

### fees and pena lties owed to th is state ; its roost recent annual report has been filed 

### by the Division (unless Delinquent ) ; and , that Articles ofDissolution have not been filed.



### Kat hy B erg 

### Di rector Division ofCorporatio ns and Commercial Code



### Page I of 1

### Utah Department of Comme rce Division of Co rporation s & Com mercial Code 160 East 300 South , 2nd Floor, PO Box 146705 Salt Lake C ity, UT 84114-6705 Sen·ice Center: (801) 530-4849 ToU Free: (877) 526-3994 Utah Residents Fax: (80 1)530-6438 Web Site: http: //www .commcrcc. utnh.gov 

### 12 /22/ 2014 6462887-015112222014-1030997


# CERTIFICATE OF EXISTENCE Registration Number: Business Name: Registered Date : Entity Type: Current S tatus : 

## 6462887-0151 REDTAIL AVIATION January 

## 22, 2007 DBA Good Standing

The Division ofCorp orations and Commercial Code of the State ofUtah, custoclian ofthc records of business registrations, certifies that the business entity on this certificate is authorized to transact business and was duly registered under the laws of the State ofUtah. The Division also certifies that this entity has paid all fees and pena lti es owed to this state; its most recent annual report has been filed by the Division (unless Delinquent); and, that Articles ofDi ssolution have not been filed.



### Kathy Berg Dir ector Di vision of Corporations and Commercial Code



### Page I of I14 CFR 204.3(e)



## Affidavit of Citizenship

State of Utah

Mark E. Francis, being first duly sworn, deposes and says:



### 1. That he is duly elected, q ualified and serving as President, of Arrow West Aviation, Inc D BA Redtail Aviation. 2. That Mark E. Francis is a citizen of the united states within the meaning of section 101(16) of the Federal Aviation Act.

Subscribed and sworn to before me this
__ 

### /.:::::

'5

;,__ __ day of 

# ;Jth

**7}**

NOTARY PUBLIC TlA K BJTH..ILL 663011 My Commission Expues

JANUARY29, 201714 CFR 204
. 3{e)


## Affidavit of Citizenship

State of Utah
Angie Johannsen, being first duly sworn, deposes and says :

1. That she is duly elected, qualified and serving as Vice-President, of Arrow West Aviation , Inc DBA Redtall Aviation
. 2
. That Angie Johannsen is a citizen of the united states with i n the meaning of section 101(16) of the Federal Aviation Act
.



# ~'t~~ S

ignature

Subscribed and sworn to before me this
_ _,_/
...... 

# 5.___ day of l 

# /tl)?l)Clr 

# ij , VJ/6



# ~ 

# J!!dt:>fu,

.iYVNotary Signature 

### CRYSTAl MCGUIRE 

### Notary Public State of Colorado MvCommtlllon fxJ)Irea May 06
. 201 

## s

## B.EDTAIL AVIATION Section 2 14 CFR 204
. 3 

## (f)- (m)14CFR204.3(f)- (m) (f) Identity of key personnel



### (g) Mark Francis 1. 741 E Desert Bloom Ct., Washington, UT 84780 2. Company President, Director of Operations, See attached Resume 3. 750 Shares voting stock equaling 75% of Shares Outstanding 4. US Citizen 5. Has 100% ownership in Slickrock Air Guides, Inc. {S2GA), a small air tour operator under Part 

### 135 Angie Johannsen 1. 233 N 400 

### E, Price, UT 84501 2. Company Vice-President, See attached resume 3. 0 Shares voting stock. 4. US citizen 

### 5. None Nick Lamoureux 1. 314 Pueblo Ct., Moab, UT 84532 2. Chief Pilot, See attached resume 3. 0 Shares voting stock 4. US Citizen 

### 5. None Gary Springer 1. 19490 

### E Road, Delta, CO 81416 2. Director of Maintenance, See attached Resume 3. 0 Shares voting stock 4. US Citizen 5. None 

## (1) Redtail Partners, LLC, a Utah Corporation 

# sow 100 

# s Moab, UT 84534 (2) 250 Shares, 25% of voting stock, US Citizen, 

### (3) NA 

### {4) NA (h) There are no subsidiaries of Arrow West Aviation DBA Redtail Aviation (i) Arrow West Aviation, Inc. has no shares in, or control of, any air carrier, foreign air carrier, common carrier, or person substantially engaged in the business of aeronautics. 

### U) Not Applicable

### 14CFR204.3(f)- (m)
(k) Ba l ance sheet and Income statements are attached. 1. Attached 2. Attached 3. The documents are prepared i n accordance w ith Generally Accepted Account i ng Principles 4. No significant events have occurred si nce the creation of the last balance sheet. 5. All financial statements were prepared by Mark Francis, with 2012 and 2013 reconci led to tax returns. The cu rrent has not yet been reconciled due to the time constraints of this filing.
(I) There are no outstanding judgments for more than $5000 against Arrow West Aviation, Inc. DBA Redtai l Aviation, Key personnel employed or to be employed, or person having a substantial interest in Arrow West Aviation, Inc. DBA Redtail Aviation. (m) There are no outstanding judgments for less than $5000 against Arrow West Aviation, Inc. DBA Redtai l Aviation, Key personnel employed or to be employed , or person having a substantial interest in Arrow West Aviation, Inc. DBA Redtail Aviation.74 1 E Desert Bloom Ct Washington
. UT 84 780 435- 820-9556 Phone 435-6 37- 8 699 Fax mari< f @redtailaviation.com 

# Mark Francis

Experience

Flight Times

Interests 

### 1997-Present Redta i l Aviat ion , Price , UT USA Director 

### of Operations 

### • Managed Pilots and Operations of a FAA Part 135 Ai r Carrier

. • Line Pilot duties flying Piston and Turboprop in a high density scenic tour operation • Give backcountry i nstruction and checkouts and fly Part 135 shuttles to back country locations • Grew sma ll 2-a i rplane company to 13 a i rcraft and a h igh dens ity tour and charter operation • Built a team of top people to manage the daily operations of this company • Grew revenues from practically zero to 3 million annually • Manage government relationsh i ps with the FAA , DOT , and OAS 

### 1989-1997 President/Owner 

### StarTech , Inc
. Price , UT USA

• Computer Software Development and Testing for Telecommunications Industry • Telecommun ications Consu lti ng 1982-1989 Te ltrust , Inc
. Sa l t Lake C i ty , UT USA Director 

### of Technical Operations 

### • Techn ical development of startup long d istance carrie r. • Grew company from 5 to 750 Employees
. • Grew revenues from 0 to 90 Million annually
.
1 995-Present • Tota l Ti me - 5500 Hours • PIC Ti me - 5500 Hours • Cross Country - 5200 Hours • Instrument - 400 Hours • Night - 670 Hours • Mountain Flyi ng - 5000 Hours Mounta i n canyon fly i ng , boatin g .Education South East Missouri State University Springfield , MO USA Mineral Area College Farmington , MO USA

# Angie Johannsen 233 North 400 East • Price, UT 84501 • Phone: 435-820-6007 • Fax: 435-637-8699 • E-Mail: angie@redtailaviation.com 

## Experience Arrow West Aviation DBA Redtail Aviation Vice-President 

### Assistant airport manager Accounting, AP 

### & AR Human resources Employee new hires Drug & 

### alcohol program manager Payroll Company insurance Company workman's comp Pilot PRIA checks Marketing Oversee staff and departments at different locations Government flight contracts Defining new policies and implementing changes Vice- President



### Skills 2000-current 

# •••

My best skill is that I am very good at multi tasking, I think you need to be to be in the aviation industry. Aviation became one of my many loves when I started flying in 1999. My love for the industry has grown to a level that cannot be matched with any other job. The team that we have hand picked is key to our operation and the level that this company has grown has been very rewarding. As 

### a key employee of Red tail Aviation my duties and jobs vary at anytime, depending on the needs of the company. This is challenging at times and keeps the flames burning.

### Job Hi s tory
June 2008 to present 

# Gary A. 

# Springer PO Box 515 Moab, UT 84532 970-275-0426



### Red tail Avia t ion

- Director of Maintenance Responsib le for directing, planning and laying out details of inspection standards, methods and procedures. Train, supervise and assist personnel in th ose methods and procedures in accordance with current applicable FAA regulations on fleet of single engine Cessna and turboprop aircraft. Repair occasional pilot initiated discrepancies on transient aircraft. Maintenance vendor for Great Lakes Airlines and SkyWest Airlines on models 81900 and EMB-120. J ulv 2011 to Ap ri/2013 SlickRock Air Guides

- Director of Maintenance Responsible for scheduled and unscheduled maintenance and the recording thereof on company aircraft in accordance with current FAA regulations. September 2011 to present Grand County, Utah Aircraft Rescue Firefighter Scheduled air carrier firefighter support as needed, mo nt hly and ann ual training. A irport facilities, equipment and grounds inspections. October 2007 to March 2009 November 2014 to present Oneall Corporate Jet Re pair Repair pilot initiated discrepancies and perform service checks for Part 135 operators on wide ra nge of corporate jet aircraft at various airports in Colorado, New Mexico and Utah. Mav 2005 to June 2008 }etAway Aviation

- FBO Performed schedu led a n d unschedul ed mainte nance on a wide variety of aircraft, also line operations as needed, 

### which included fueling, deicing, and towing large aircraft. Director of Maintenance liaison for single pilot 14CFR Part 135 multi

-engi ne operation
. October 1994 to Mav2005 Western Skyways- Certified Repair Station Ove rhau led TCM a nd Lycoming aircraft piston engines. Performed inspection, bu ild up of sub assemblies, main assembly, test ru n wit h final system adjustments per factory specifications
. August 1992 to October 1994 Center for Aerospace Sciences

- University of North Dakota Repaired p il ot initiated discrepancies and performed progressive inspections for large fleet of fixed wing single, twin piston aircraft a nd helicopters.

### Education and Trainint: History March 2013 to present 

### SkyWest Airlines Annua l vendor maintenance training for mode l EMB-120 

### lulv 2008 to lanuarv 2013 

### Gre at Lakes Airlines An nual vendor mainte n ance training for models B1900. 

### lanuary2011. 2013 

### American Heart Association/ Moab Fire Protection District Biannual CP R , AED and First Aid Certification 

### lanuarv 2012 

### Flight Safety International P&WC PT6A small series line and base maintenance course 

### September 2011. October 2012. September 2013. September 2014 

### Sa lt Lake City International Airport Rescue Fire fighting Tra ining C enter Annua i 14CFR Part 139 live fire training 

### December 2011 

### Quest Aircraft Company Mode l K-10 0 Maintenance Co u rse 

### Apri/2009. Mav2011. Mav2014 

### AvFuel Biannual14CFR Part 139.321 and quality control training for aircraft fuel storage and dispensing. 

### Mav2007 Received FAA I nspectio n Aut h orization 

### 1996 to 2004 Annual Leve l II NDT certification 

### August 1992 to October 1994 

### University of North Dakota Studied part time while working for the repair station/flight school with a major in Aviatio n Maintenance Management and a minor in computer science. 

### February 1991 to lune 1992 

### Colora do Aero Tech Jeffco A irport Broomfie ld, CO Received Airman's certificate with Airframe and Powerplant ratings Ju l y 1992

### OB J ECTIVE NICHOLAS J. LAMOUREUX 

### 314 E. Pueblo Ct. Moab UT. 84532 phone:435-260-0008 Email: nicklam 99@yahoo.com

Continue to grow Redtail. Provide quality pilot training and mentoring. QUALIFICATIONS 

### Commercial Pilot #2835866. Ratings: Instrument, SEL, MEL, CFI, TW. Over 4000 hours total flight time. FAA Check Airman - Piston and Turbine Avfuel and SkyWest fuel trained. Management- de l ivered high quality results in hiring and training, staff leadership, and interna l and external communications. WOR K HI S TORY Aug 2006 

### Chi ef Pilot 

## I Moab General M a n ag e r/FAA C heck Ai rm an/Company Flight Instru ct or to Present Redtail Aviation Price, UT. 84501

May 1993 to Aug 2006 

### Involved in ove rseeing Moab operations. Customer Service, Chief Pilot, FAA Check Airman, Company Flight Instructor. Responsible for pilot assignments. Involved in training of, pilots, ramp/fueling staff and office staff. Mainta i ns required FAA pilot records, training records and fuel records

. • Progressed from line pi l ot to Moab General Manager/ Chief Pilot • Strong customer and staff interaction skills • Primary Kodiak pilot for summer of 2012 • Developed and maintained relationship with Advantage Flight Services in Reno NVwh i ch brought Redtail to Reno in order to provide air service to and from the annual Burni n g Man Event. Revenue growth of $25k in 2011 (single plane) in 10 days

. $78k in 2012 (3 p lanes). $123k in 2013 (5 planes). $122k 2014 (5 planes). • Demonstrated recruiting, hiring, developing and staff retention.O • Along with the add i tional responsib i lity of being Chief pilot, became FAA interface, Check Airman and company flight instructor

Course D irector/ Inst r uctor/ Staff Traine r Colorado Outward Bound School (outwardbound.orq ) Golden, 

### CO.

### May 1994 

## to Feb 2005 Responsible for delivery, quality, logistics and safety of 10, 23 , 30 and 82 day wilderness leadership education programs throughout the Western U.S. Supervised, motivated, and monitored staff performance and evaluation.

• Excellent safety/ risk management record. No significant accidents in over 14 years. • Created strong staff retention among those I worked with, countering the trend of significant annual staff turnover. • Staff trainer- Delivered 10 day incoming staff trainings • Senior staff trainer taught advanced mountain skills, advanced rock climbing/guide training and canyoneering skills • Course Director of the Year in 2003. • Successfully managed 82-day wilderness semesters for 6 years, which were eligible for College credit. • Successfully delivered the last of the "giant" semesters in 2000. Managing 40 participants , 24 staff, 4 vans, 2 trucks and traveled over 4 western states. Over $400k in revenue. • Developed and implemented a lighter weight backpacking approach that significantly decreased revenue loss due to injury and also increased participant satisfaction.

R

es id e nti a l Con s truction 

### Seasonal, se l f-employed builder. Built the last two houses I have owned, from foundation to finish work.Redtai l Aviation Consolidated Financial Statements

31 October 2014 Not e As at A s at As at A s at

31

October 2014 31 December 2013 31 December 2012 31 December 2011

Balance sheet Fixed Assets Airplanes 1 1,041,194 1,041,194 1,033,394 1 ,033,394

Engines

and propellers 1 229,886 179,138 73,285 47,790

FBO equipment 1 216,975 194,991 194,991 313,759

Vehicles 1 117,552 117,552 117,552 63,506

Office Equipment 1 70.720 69.200 68.669 81,947

1,676,328 1,602,075 1,487,891 1,540,397

Less : Accumulated Depreciation 2 (1,372,717} (1,372,717) (1,328,199) (1,425,413}

Net Fixed Assets 303,611 229,358 159,692 114,983

Investments Goodwill on Slickrock Air Guides 31 800,000 800,000 800,000 800,000

Current Assets Inventory 4 146,783 117,086 74,739 144,439

Other current assets 5 117,001 104,391 65,622 125,075

Cash and Bank 6 328,299 77,956 145,349 30,182

Total Current Assets 592,083 299,433 285,709 299,696

Total Assets 1,695,694 1.328.791 1.245.401 1,214,680Liabilities Long Term Liabilities 7 {273,858) (194,030) (177,337) (60,545)

Acquisition financing for Slick rock 31 (937,733) (1,056,364) (1,173,770) (1,162,745)

Current liabilities 8 (228,478) (117,338) (61,703) (145,787)

(1,440,068) (1,367, 731) (1,412,810) (1,369,077)

Net Assets 255,625 (38,941) (167,409) (154,397)

Equ1ty Share Capital 9 109,000 109,000 109,000 120,796

Retained Earnings 10 146,625 {147,941) (276,409) (275,193)

Net Equity 255,625 (38,941) (167,409) (154,397!

(0) (O)Ten Month s to Year to Year to Ye a r to

31 October 2014 3 1 D e cember 2013 31 December 2012 3 1 D e cemb e r 2011

Income

Statement Income Aviation Income Scenic Flights 11 307,081 341,679 333,932 267,1S7

River Shuttles 12 309,253 274,979 263,958 120,906

Other Charter Income 13 561,982 575,245 39 4 ,39 4 430,590

Freight

Services 14 107,786 135,828 116,666 118,922

1,286,103 1,327,731 1,108,950 937,575

Less: Cost of Goods So l d 15 (687,594) (768,593 ) (540,978) !536,759)

A viation contribution 598,509 559,13 8 567,972 400,816

Fixed Base Operations Av1at1on Fuel Sales 16 1,312,639 1,260,740 1,339,211 1,197,584

Less: Cost of Fuel Sold 17 ( 993,780) (886,460) (1,040,480l_ (904,578)

Fuel Sales contribution 318,859 374,280 298,731 293,006

Other Fixed Base Operation Income 18 160,415 147,279 123,494 147,190

Less: Cost of FBO Services provided 19 (57,517) (37,3 4 2) {50,390) {40,920)

Other FBO contribution 102,898 109,936 73,104 106,270

--

Gross Profits 1,020,265 1,043,354 939,807 800,092Expenses Operating expenses Labour 20 (522,813) (627,089) (607,106) (501,911)

Marketing 21 (26,185) (12,587) (17,444) (13,642)

(548,998) (639,676) (624,551) (515,553)

Operating Profits 471,267 403,678 315,257 284,539

Other Income 22 3,471 65,986 54,332 163,678

Other expenses General Expenses 23 (249,136) (215,811) (162,652) (178,592)

Professional Fees 24 (4,817) (6,804) (3,812) (24,452)

Other expenses 25 935 295 1,701 363

(253,018) (222,320) (164,763) (202,681)

Profits before Interests, Depreciation and Tax 221,720 247,344 204,826 245,536

-

Finance Income 26 (2,123) 5,919 380 281

Finance Expenses 27 (83,400) (84,234) (78,395) (56,282)

Depreciation 28 (44,518) (46,044) (48,377)

Taxation 29 8,583 (5,295) (4,847) (6,095)

Net Profits 144,780 119,217 75,920 135,063

## :RE::DT..A.IL 

## AVIATION Section 3 14 CFR 204.3 

## (n)14CFR204.3(n)1-2
1 Aircraft N-Number Year/Make/Model Owned Leased
N771RT 2011 /Quest/Kodiak 100 Yes N772RT 2015/Quest/Kodiak 100 Ordered-3/30/15 Delivery N9535Y 1982/Cessna/T210N Yes N367N 1974/Cessna/T210L Yes N9825M 1981/Cessna/T207A Yes N51SA 1981/Cessna/T207A Yes N73727 1980/Cessna/T207A Yes N7608U 1978/Cessna/T207A Yes N1758U 1976/Cessna/T207 Yes N91096 1969/Cessna/207 Yes N1372V 1974/Cessna/U206F Yes N775RT 1980/Cessna/C172N Yes N733TE 1977 /Cessna/C 172 N Yes



### 2 Redtail Aviation already leases and operates the backup aircraft for this route. It is N771RT. The primary aircraft for this route is N772RT that will be brand new delivered from the factory on March 31st, 2015. This aircraft has been configured with the requirements for passenger carrying IFR, as well as air conditioning and 10 place oxygen.14CFR204.3(n)(3) 

### Affidavit of Safety Compliance

State of Utah,

Mark E Francis, being first duly 

### sworn, deposes and says: 

### 1. That he is duly elected, qualified , and serving as President of Arrow West Aviation, Inc DBA Redtail Aviation, and that he is authorized to and does make this affidavit for it. 2. That all aircraft owned and leased by Arrow West Aviation, Inc DBA Redtail Aviation, have been certified by the Fe d eral Aviation Administration safety standards under Part 135.

Subscribed and sworn to before me this 

# /6": day of 

# JAnl&l11j £).015

1 

### 2Q14
STATEOFUTAH

**. ~-**  COUNTYOF:

**~( ~**  JVY L ON THE 

## fi5 DAY 

## o F::!M.ta

**~** DWI 

## 5""

**~!tAUY** APPEARED BEFORE ME



### ~ 

## 'Bfhn:;.'s. SIGNER(S) OF THE ABOVE INSTRUMENT, WHO DUlY ACKNOWLEDGED TO ME THAT HE/SHE/THEY EXECUTED E 

### SA NOTARY PUBLIC TIA K BlTHELL 663011

. 'riy Commr!hloo Exprrcs

JANUARY29, 2017

STAlliOF AH

## R.EDTAIL AVIATION Section 4 14 CFR 204
. 3 

## (o)- (s)

### 14CFR204.3( o )-(s) (o) Arrow West Aviation, Inc. DBA Redtail Aviation has one pending investigation open that we disclosed to the FAA through the Voluntary Disclosure Reporting Program. We are currently working with the FAA to fi x the probl e m and ensure that it does not re -occur. No other pending investigations, enforcement actions, or formal complaints are open involving the applicant, or any other relevant corporation, any personnel employed or to be employed by any relevant corporation or person having a substantial interest in any relevant corporation, regarding compliance with the Statute or orders, rules, regulations, or requirements issued pursuant to the Statute, and any corrective actions taken. (p) Arrow West Aviation, Inc. DBA Redtail Aviation has no history of charges of unfair or deceptive or anti-competitive business practices, or of fraud, felony or antitrust violation, involving the applicant or any relevan corporation, any personnel employed or to be employed by any relevant corporation or person having substantial interest in any relevant corporation or member of the key personnel employed or to be employe d by any relevant corporation in the past 10 years. (q) Arrow West Aviation, Inc. DBA Redtail Aviation has no accidents or incidents as defined by NTSB Regulations 49 CFR 830.2 within the time frame specified or any open accidents or incidents. (r) Separate Document (s) Arrow West Aviation, Inc. DBA Redtail Aviation operates under FAR Part 

### 135/119. We are responsible to the FAA through the Salt Lake Flight Standards District Office, 1020 North Flyer Way, Salt Lake City, UT 841 1 6 Principal Operations Inspector- Gregory Pire Principal Maintenance Inspector- Vahl Buchanan Principal Avionics Inspector- Mark Rushton14CFR204.3r 

### History of Arrow West Aviation, Inc DBA Redtail Aviation
Mark E Francis purchased a very small FBO at the Price/Carbon County airport in Price, UT on July 1 51
, 1998, however Redtail Aviation has been serving the aviation needs of South Eastern Utah since 1978. The business at that time consisted of a small flight school (one owned aircraft), fuel services and airport management for Carbon County. In 1999, Mr. Francis was able to acquire a Part 135 operating certificate from the FAA, OW6A and brought a couple of more aircraft into the operation through purchase and lease. In 2000, Mr. Francis purchased Redtail Aviation out of the Moab airport, some of their aircraft and began operating as Redtail Aviation. Operating under the OW6A certificate, Mr. Francis was able to significantly grow the business in both Moab and Price. Over the next several years the Redtail business grew to include shuttles for the river rafting outfitters, scenic flights over National Parks, cargo flights for UPS, as well as all types of on-demand charter. Over that time most of the fleet became owned aircraft of Redtail Aviation. In 2011, Redtail Aviation acquired Slickrock Air Guides and has merged those operations and aircraft into Redtail Aviation. Also in 2011, Redtail Aviation leased and began operating a Quest Kodiak 100 aircraft. It was the first Turboprop aircraft in the Redtail fleet and is the foundation on which we wish to base the company's future and the Essential Air Service route. Since 2011, Redtail Aviation has successfully integrated the operations of Slickrock Air Guides and the turboprop Kodiak. The Kodiak has become a valuable part of our operation and we will continue down that path with or without the EAS contract. Redtail has continued to grow every year with the exception of 2002 and 2008 and we will continue to grow. We are a proud member of the Moab Community. We are members of the area Chamber of Commerce, Utah Guides and Outfitters and are very well integrated into the community. Our priorities are to serve our community.

## Section 5 14 CFR 204
. 3 

## (t)

## B.E:DT.A..IL 

## AVIA.TION
January 15, 2015 Mr. Todd Homan US Department of Transportation Re: Redtail Aviation EAS Proposal for Moab, Order 2014-11-18 Dear Mr Homan, 

### 14 CFR 204. 3(t)

We are pleased to submit a proposal to provide passenger service for the Moab Utah community under the Essential Air Service program. Redtail Aviation, headquartered in Moab Utah has been serving the aviation needs of South Eastern Utah since 1978. The company holds a Part 135 Air Carrier certificate (OWAGA) and currently operates 13 aircraft including the nine passenger, air conditioned, de-iced turboprop Kodiak which is the aircraft we are proposing to fulfil this service. We have operated our first Kodiak for over two years and are taking delivery of a second Kodiak in March of this year. Redtail Aviation now provides on demand charter flights, passenger shuttle service for river rafters, scenic air tours over the National Parks, and air freight service under contract with UPS. We operate the FBO facilities at Moab and Price Utah and our primary maintenance base is located at Canyonlands Field in Moab. In 2014, we flew over 3000 hours as a company and enplaned over 7,000 passengers as an on-demand carrier. We have online and live booking systems in place which could be easily leveraged for the proposed scheduled service. We have a very positive reputation for providing safe, reliable aviation services to the Moab community and have augmented services to the tourism industry which is the backbone of the Moab economy. We will bring that same high level of service to the Essential Air Service program. Our staff and crews are very experienced and have been with us for many years. We have managed to maintain our key personnel and much of our flight and ground crews in the very challenging environment of a highly seasonal business. The following proposal addresses Essential Air Service for the Moab community. Based on discussions with community leaders, we have proposed service that is primarily linked to Salt Lake City with 12 round trips per week but also includes 2 round trips per week to Las Vegas.

Sincerely,



### PO Box I004, Moab, UT 84532 435-259-7421

### R..E:OTAITd

**.A.~TION**



### Moab Essential Air Service Proposal, Order 2014-11 - 18
Interim Service 

### 14 CFR 204.3(t)

The capacity to implement scheduled service for the community of Moab will be in place by March 31, 2015. However, we are currently limited by our Air Carrier Certificate and Operations Specifications to providing 4 round trips per week. We are hopeful that we can get through hurdles necessary to upgrade our certificate with Commuter authority quickly so that we can provide the level of service that we are proposing for Long Term Service. If that is not possible, however, we will begin scheduled service in our Quest Kodiak aircraft on the starting date of the contract but will be limited to 4 round trips per week. We will work with the community to determine the best 4 days for this service and continue to work hard to get to the full Long Term Service level. 

### long Term Service Redtail Aviation proposes to provide scheduled Essential Air Service Primar il y between Salt Lake City and Moab with a limited service to Las Vegas from Moab. We will be utilizing a new Quest Kodiak 100 that we are scheduled to take delivery of on March 31 5 \ 2015. We are already operating a Kodiak 100 in ondemand service and have found it to be a very flexible and reliable aircraft for our operations. The aircraft that we are currently operating in on-demand service will serve as backup for the primary aircraft. Our local presence is strong with our hangars and maintenance facilities based in Moab at the Canyonlands Field Airport. Our flights will be staged f rom Moab and planes will overnight there. Maintenance of all Arrow West Aviation, Inc. DBA Redtail Aviation Aircraft is conducted at the Company's maintenance base in Moab at Canyonlands Field (CNY) to the standards required by the FAA for Part 135 Operations and by the aircraft manufacturer. Application for Commuter Author ity is being submitted to the Salt Lake City FSDO concurrently with this application. We will proceed post -haste to acquire that authority. We will be training new pilots but can serve the startup needs of the service with our existing crews. Customer service has been, and shall continue to be, our hallmark. Recognizing this, we can support the immediate needs of the community, while creating the service that the community requires and


## PO Box I004, Moab, UT 84532 435-259-7421**~.DT.AIL** 

## AVIATION 14 CFR 204.3(t) deserves. Our commitment to the local community ensures that we will always be listening and responding to their needs.



### PO Box l 004, Moab, UT 84532 435-259

- 7421**~:OTA.IL** 

## AVIATION

Pro pose d Schedule - Moab EAS
2 Round trips per day /7 days per week 

### Sun, Tues, Weds, Thurs, Sat

Mon, Fri Depart 

## 0630 0830 1530 1750
0630 0830 1300 1600 Route 

### CNY-SLC SLC-CNY CNY·SLC SLC-C N Y
CNY-SLC SLC·C N Y CNY-HND HND-CNY Arrive 

## 0740 0940 1640 1900
0740 094 0 1510 1810 14 CFR 204.3(t)

The times specified on these proposed schedu l es are preliminary. We expect to firm this up with community dialog and input. We 

### will estab l ish ourselves with this schedu l e and the n make a determ ination as to whether Denver could be added to our p rogram.



## PO Box l 004, Moab, UT 84532 435

-259

-7421Redtail Aviation Moab Proposal 12 Round trips to SLC, 2 Round trips to Las Vegas per Week 98% Completion rate

Departures Block Hours Revenue Passenger Miles Available Seat Miles Operating Revenues
Aircraft Cost Fuel Flight Ops Maintenance Total Direct Expenses
Total Indirect Expenses Operating Gain/Loss Profit Subsidy required 1,431 2,002 $1,214,167 $2,656,443

$597,700 $1,056,170

$580,493 $178,850 $179,311 $1,994,824

$344,591 $1,741,715

$116,971 $1,858,685



## P

O Box I004. Moab, UT 84532 435

-259

-7421 1 4 CFR 204
. 3(t)RedtailAviationEssentialAirServiceJanuary2015ReportsQ12015Q22015Q32015Q42015FY2015Q12016Q22016Q32016Q42016FY2016BalanceSheetAssetsCash198,000209,528237,094213,698213,698144,755226,499254,065130,669130,669Accountsreceivable107,100124,003125,114177,188177,188177,316124,003125,114177,188177,188305,100333,531362,209390,886390,886322,071350,502379,179307,857307,857LiabilitiesShareholders'loans(200,000)(200,000)(200,000)(200,000)(200,000)(100,000)(100,000)(100,000)(200,000)(200,000)(200,000)(200,000)(200,000)(100,000)(100,000)(100,000)INetAssets105,100133,531162,209190,886190,886222,071250,502279,179307,857307,857EquitySharecapital100,000100,000100,000100,000100,000100,000100,000100,000100,000100,000Retainedearnings.90,88690,88690,88690,88690,886ProfitsI(losses)fortheperiod5,10033,53162,20990,88690,88631,18559,61688,293116,971116,971NetEquity105,100133,531162,209190,886190,886222,071250,502279,179307,857307,8$7RedtailAviationEssentialAirServiceJanuary2015IncomeStatementQ12015Q22015Q32015Q42015FY2015Ql2016Q22016Q32016Q42016FY2016IncomeAirfaresCNY-SLC168,815190,09584,835443,74562,605168,815190,09584,835506,350CNY-HND30,62534,12515,22579,97511,37530,62534,12515,22591,350199,440224,220100,060523,72073,980199,440224,220100,060597,700CostofsalesAircraftleasing(248,430)(250,880)(250,880){750,190){245,980)(248,430)(250,880)(250,880){996,170)Maintenance(44,717) (45,158) (45,158)(135,034)(44,276)(44,717)(45,158)(45,158)(179,311)Fuelconsumption(144,768)(146,189)(146,189){437,146){143,347)(144,768)(146,189){146,189)(580,493)Groundservicing(26,754)(27,048)(27,048)(80.850)(26,460)(26,754)(27,048)(27,048)(107,310)Otherflightoperations(17,836)(18,032)(18,032)(53,900)(17,640)(17,836)(18,032)(18,032)(71,540)Insurance-(60,000)(60,000)(482,505)(487,307)(487,307)(1,457,120)(537,703)(482,505)(487,307)(487,307)(1,994,824)GrossprofitsI(losses)(283,065)(263,087)(387,247)(933,400)(463,723)(283,065)(263,087)(387,247)(1,397,124)OthercostsPayroll(12,000)(48,617)(48,742)(48,742)(158,100)(48,492)(48,617)(48,742)(48,742)(194,591)Marketing(15,000)(22,500)(22,500)(22,500)(82,500)(22,500)(22,500)(22,500)(22,500)(90,000)Othercosts(75,000)(15,000)(15,000)(15,000)(120,000)(15,000)(15,000)(15,000)(15,000)(60,000)(102,000)(86,117)(86,242)(86,242)(360,600)(85,992)(86,117)(86,242)(86,242)(344,591)NetprofitsI(losses)(102,000)(369,182)(349,329)(473,489)(1,294,000)(549,715)(369,182)(349,329) (473,489)(1,741,715)5%marginallowedontotalexpenses5,10028,43128,67728,67790,88631,18528,43128,677 28,677116,971Subsidyrequired107,100397,613378,006502,1661,384,886580,900397,613378,006502,1661,858,685

### Subsidy At the proposed level of activity the full year subsidy will come to $1,858,685 after adjusting for $597,700 in air fares. FY 2015 FY 2016 FY 2017

Total subsidy 

### $1,384,886 $1 ,858,685 $1,858,685 Total passengers 

### 5,128 5,852 5,852 Subsidy per passenger 

### $270 $318 $318 Total block h ours 

### 1,507 2,002 2,002 Subs i dy pe r block hour 

### $1,198 $1,212 $ 1 ,212 Total departures 

### 1,078 1,431 1,431 Subsidy per departure 

### $1,285 $1,299 $1,299


### Air fares The main b usiness of M oab, Utah is tourism. This means that there are large swings in the leve l of activity between the high season of May to October and t he low season from November to April. Further, there are many more visitors lo 

### Moab over the weekend than mid-week. In our calculations we have attempted to take into consideration these factors and that has an effect of the subsidy levels being higher in the low season Ql 

### and Q4. 

### First full year of opera tions

Pe riod 

### Q12016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Losses 

### (549,715) (369,182) (349,329) (473,489) (1, 741 , 715 ) Margin 

### 31,185 28,431 28,677 28,677 116,9 71 Subsidy 

### 580 ,900 397,613 378,006 502,166 1 , 858, 68 5 

### Average blended air f a re rates We have assu med that a single trip CNY- SLC will generate a revenue of$95 per passenger, a nd $175 on the CNY- HND route. Seasonali ty will again play a role in setting the actua l price as demand ebbs and flows.Ai r fares CNY- SLC CNY- HND



### Load factor FY 2015
443,745

79,975
523,720 FY 2016
506,350

91,350
597,700 FY 2017
506,350

91,350
597,700



### Our Quest Kodiak 100 seats nine passengers. We expect to achieve an annual average load factor of44% equal to four passengers. There will be variances between the high and low seasons where it is likely to be able to have a fully occupied plane in the high season's most popular events and the low season where we may only have one to two passengers on a flight.


### Review of costs of sales FY 2015 FY 2016 FY 2017

Cost of sales Aircraft leasing (750,190) (996,170) (996,170) Maintenance (135,034) {179,311) {1 7 9,311) Fuel consumption (437,146) (580,493) (580,493) Ground servicing {80,850) (107,310) (107,310) Other flight operations {53,900) {71,540) {71,540) Insurance {60,000) {60,000)

{1,457,120) {1,994,824) {1,994,824)



### Aircraft lease Over the past three years we have leased and operated Kodiak 771RT, and will a lso employ Kodiak 772RT when it is delivered from the factory in March 2015
. The two planes are owned by a related party and the lease is on very favorable terms compared to market rates for similar air crafts.

### Ma int e nance Our in-house team of mechanics have maintained our Kodiak 100 since it was new and are trained specifically to maintain this make and model of aircraft. The cost of maintenance includes both labor costs and materials. Fuel consumption The Kodiak consumes approximately 50 gallons of fuel per hour and we have used a rate of $5.80 per gallon. This is the FBO rate at CNY and compares favorably with nearby airports. We recognize that we are in a volatile environment where oil prices presently gyrate after five years of consistently high prices. We have chosen to use a historical average rather than speculating whether prices will go up or down in the future. Ground servicing This includes the on-ground managemen t of passengers, their luggage and the plane itself. These will be third party service providers at SLC and HND and Redtail staff at CNY. Other flight operations in clude all other types of expenses operating the routes which do not fit in the previous categories. Insurance is based on the historical costs for Kodiak 771RT. Revi e w of other costs FY 2015 FY 2016 FY 2017



### Other costs Payroll (158,100) (194,591) (194,591) 

### Marketing (82,500) (90,000) (90,000) 

### Other costs (120,000) (60,000) (60,000)
(360,600) (344,591) (344,591) 

### Payroll We expect to hire new staff both in CNY and SLC to operate the routes efficiently. The payroll consist of managerial and clerical staff, as well as pilots. Marketing In order to increase the business, we are planning extensive marketing campaigns in Moab, Salt Lake City and Las Vegas. The main focus will be web based marketing to reach the citizens in these three areas in a cost efficient and effective manner. Other costs includes general expenses for the operation of Redtail and the routes.

### Start up costs We have budgeted $102,000 in start up costs covering staff hiring and trainin& marketing efforts, I T solutions, and refurbishment of airport facilities. 

### Share capital and shareholders loan We expect to introduce $300,000 to Redtail Aviation in fresh working capital to ensure the operation of the Essential Air Service. This will be part new share capital and part shareholders' loans. It is expected that the loans will be paid back from retained earnings in 2016 and 2017. 

### Cash With fresh capital Redtail will have the cash needed to meet obligations throughout the period
. Accounts Receivables are specifically the subsidy for the operation of the routes which are assumed to be received the month following the costs incurred.

## R.E:OTAIL A.VIA.TION Section 6 14 CFR 204
. 3 

## (u)- (v)U
.S

. Department of Tra nsportati o n Office of the Secretary of Transportation 

## AGREEMENT
The undersigned carriers (hereinafter referred to as "the earners" ) hereby agree as follows : Doc ket OST 95-2 36

1
. Each of the Carriers shall , effective May 16 , 1966 , include the following in its conditions of carriage , including tariffs embodying conditions of carriage filed by it with any government:

"The Carrier shall avail i tself of the limitation of liability provided in the Convention for the Unification of Certain Rules Relatin g to International Carriage by Air signed at Warsaw October 12th , 1929 , or provided in the said Convention as amended by the Protocol signed at The Hague September 28th , 1955
. However, in accordance with Article 22(1) of said Convention , or said Convention as amended by sa id Protocol , the Carrier agrees that , as to all international transportation by the Carrier as defined in the said Convention or said Convention as amended by said Protocol , which , according to the contract of Carriage , includes a point in the United States of America as a point of origin , point of destination , or agreed stopping place (1) The limit of liability for each passenger for death , wounding , or other bodily injury shall be the sum of US $75 , 000 inclus1ve of lega l fees and costs
. except that , in case of a claim brought in a State where provision is made for separate award of legal fees and costs , the limit shall be the sum of US $58 , 000 exclusive of legal fees and costs
. (2) The Carrier shall not, with respect to any claim arising out of the death , wounding , or other bodily injury of a passenger, avail itself of any defense under Article 20(1) of said Convention or said Convention as amended by said Protoco l. Nothing herein shall be deemed to affect the rights and liabilities of the Carrier with regard to any claim brought by , on behalf of, or in respect of any person who has willfully caused damage which resulted in death , wounding , or other bodily injury of a passenger." 2
. Each Carrier shall , at the time of delivery of the ticket, fumisl1 to each passenger whose transportation 1s governed by the Convention, or the Convention as amended by the Hague Protocol , and by the special contract described in paragraph 1 , the following notice, which shall be printed in type at least as large as 10 point modern type and in ink contrasting with the stock on (i) each ticket ; (ii) a piece of paper either placed in the ticket envelope with the ticket or attached to the ticket ; or (iii) on the ticket envelope :

"ADVICE TO INTERNATIONAL PASSENGER ON LIMITATION OF LIABILITY Passengers on a journey involving an ultimate destination or a stop in a country other than the country of origin are advised that the provisions of a treaty known as the Warsaw Convention may be applicable to the entire journey, Including any portion entirely within the country of origin or destination
. For such passengers on a journey to
. from

. or with an agreed stopping place in the United States of America , the Convention and special contracts of carriage embodied in applicable tariffs provide that the liability of [certain 

### 1· [(name of carrier) and certain other] carriers parties to such special contracts for death of or personal injury to passengers is limited in most cases to proven damages not to exceed US $75 , 000 per passenger, and that this liability up to such limit shall not depend on negligence on the part of the carrier
. For such passengers traveling by a carrier not a party to such special contracts or on a journey not to , from , or having an agreed stopping place in the United States of Amenca , liability of the carrier for death or personal injury to passengers is limited in most cases to approximately US $10 , 000 or US $20 , 000
. The names of Carriers parties to such special contracts are available at all ticket offices of such carriers and may be examined on request. Additional protection can usually be obtained by purchasing in surance from a private company . Such insurance is not affected by any limitation of the carrier's liability under the Warsaw Convention or such special contracts of carriage
. For further information please consult your airline or insurance company representative .· 3
. [This Agreement was filed with the Civil Aeronautics Board of the United States The Board approved it by Order E-23680 , adopted May 13 , 1966
. The Agreement (Agreement 18900) became effective May 16 , 1966
. On January 1 , 1985 , this Agreement became the responsib ility of the Department of Transportation (DOT) by operation of law
. ] 4
. This Agreement may be signed in any number of counterparts , all of which shall constitute one Agreement. Any Carrier may become a party to this Agreement by signing a counterpart hereof and depositing it with DOT

. 5 Any Carrier party hereto may withdraw from this Agreement by giving twelve

**(12)~ '**  and the other Carriers parties to the Agreement (Signature and Date) **-fo~p....:::::::.._-L..~-~==::...._-L.L.:....t..#~L-** ·Either alternative may be used
.

OST Form 45 23 (Formerly CAB Form 2 63)14CFR204

. 3(v ) 

### Pursuant to title 18 United States Code section 1001 , I , Mark Francis , President of Arrow West Aviation , Inc DBA Redtail Aviation , in my individual capacity and as the authorized representative of the applicant , have not in any manner knowingly and willfully falsified, concealed or covered up any material fact or made any false , fictitious , or fraudulent statement or knowingly used any documents which contain such statements in connection with the preparation , filing or prosecution of the application
. I understand that an individual who is found to have violated the provisions of 18 U
. S

. C
. section 1001 shall be fined nor more than $10 , 000 or imprisoned not more than five years , or both
.

President

## .R.EDTAIL 

## A VIA.TION Section 7 14CFR204.414CFR204.4
Carriers Proposing to provide Essential Air Service 

### (a)

(b) (1). Attached (2). N771RT, 2011 Quest Kodiak 100, (i) 2 in fleet beginning 3-31-2015 

### (ii) It is part of our fleet and we have operational control (iii) The aircraft financing and de ivery has already been planned (iv) Attached as part of 14CFR204.3(n)(3) responses (3). Redtail Aviation is the FBO at Canyonlands field and has a 12,000 gallon above ground fuel tank and a 3,000 gallon fuel truck for JetA. AvFuel is our contracted fuel provider and has never let us down for fuel delivery in a timely basis. Arrangements for periodic fuel will be made at Salt Lake City International and Henderson Executive. (4). Not Applicable (5). Currently only serving as an on-demand carrier. (6). N771RT has been flown as an on-demand aircraft. N772RT, the primary proposed aircraft is new to be delivered 3-31-2015. (7). The proposed essential air service route would provide for 100% utilization of the newly acquired aircraft. There would be no significant impact to the rest of the fleet. (8). A general description is provided in the 14CFR204.3 filing. A more detailed proposal will be forthcoming after meetings with the lo cal community. (9). Included in the 14CFR204.3(t) filing
(1) Attached (2) Attached (3) Attached as part of 14CFR204.3(t) filing (4) Attached as part of 14CFR204.3(t) filing