U.S. Department of Transportation Office of the Secretary ofTransportation

September 17, 2014 Ms. JoanneW. Young Mr. DavidM. Kirstein Kirstein & Young PLLC Counsel for Dynamic Airways, LLC 1750 K. St. N.W. Washington, D.C. 20006 DearMs. Young andMr. Kirstein: 1200 New JerseyAvenue SE Washington DC 20590

We have completed our initial review ofthe information filed by Dynamic Airways, LLC ("Dynamic"), in support of the air carrier's applications for interstate and foreign scheduled authority. As an initial matter, ourreview ofthe information Dynamic provided reveals that its applications are materially deficient. As discussed in the attached information request, Dynamic's applications lack an adequate fmancial forecast for the proposed expanded operations, third-party verification of funding evidencing the availability of capital commitments under proposed lines-of-credit, and information regarding the air carrier and its key personnel's compliance disposition. 1 Without such information we are unable to make an informed decision regarding the air carrier's fitness to operatethe scheduled services itproposes. Therefore, I ask thatyou respond fully to the attachedInformationRequestwithin 14 days ofthe date ofthis letter. Yourresponse shouldbe mailed to U.S. Department ofTransportation, Docket Operations, (M-30, Room W12-140), 1200New Jersey Avenue, S.E., West Building Ground Floor, Washington, D.C. 20590, or you may electronically file your response at www.regulations.gov. As is the Department's practice, further processing ofDynamic's applications will be deferredpendingreceipt ofthis material. We also wishto remind Dynamic that it should promptly provide the Departmentwith any information regarding changes it may undergo in areas affecting its fitness 

### (i.e., management, operating plans or financial condition, compliance disposition, or ownership)

· while its applications are under review by the Department. Inthis regard, we notethat our

review ofthe informationprovided inDynamic's applications, as well as other information available to us, indicates that recently and on multiple occasions, Dynamic failed to notify us ofsubstantial changes inits operations, management, and/or ownership. Inaddition, the Federal Aviation Administration ("FAA'') has informed us that Dynamic ceased all ofits

We also inform Dynamic that itis not the Department's policyto grantblanket open-skies certificatesto air carriers initially applying for foreign scheduled authority. Therefore, Dynamic must amend its foreign application to identify the specific countries that it intends to serve during its first-year offoreign scheduled operations.2 operations between June 2012 and May 2013. In addition, information Dynamic provided in its applications indicates that the air carrier underwent a change in its ownership, its president, and more than 50 percent ofits other key personnel since the Department last reviewedthe air carrier's fitness. As you know, section 204.7 (14 CFR §204.7) ofthe Department's Aviation Economic Regulations requires that any air carrier that ceases operations for which it was found fit must file a notice ofits intent to resume service and have its fitness re-established prior to resuming operations. Moreover, Dynamic's certificate authority and the Department's Economic Regulations also require the air carrier to notify the Department ofproposed2 substantial changes3 in its ownership, management, or operations and to provide certain information demonstrating the air carrier's fitness in light of the proposed changes. However, the Department was unaware ofDynamic's cessation and recommencement of service until after the fact and the Department only became aware of the substantial changes Dynamic incurred after the air carrier filed the subject applications for interstate and foreign scheduledpassenger authority. Any violation ofthe Department's Aviation Economic Regulations is a serious matter and result in certificate action or subject Dynamic and its principals to enforcement action, including the assessment of civil penalties under 49 U.S.C. 

### § 46301. Furthermore, if Dynamic fails to consult with the Department prior to undergoing a substantial change in the future the 

### air carrier may 

### be placed in a position where it no longer meets the Department's fitness criteria, and is therefore ineligible to retain its economic authority. Therefore, Dynamic should take care to ensure that it complies with the terms and conditions ofits certificate, as well as the rules that govern its operations. Thank you for your cooperation in this matter. Ifyou have any questions regarding this letter orthe requested information, please feel free to contact DamonWalker ofmy staffat (202) 366-9721. Sincerely,

u..o.oav.u J. Remo Chief, Air Carrier Fitness Division Office ofAviationAnalysis Enclosure

cc: DocketDOT-OST-2014-0069 and DocketDOT-OST-2014-0071

2 The wordproposed presupposes an event yet to occur. Inasmuch, our rules require that the §204.3 materials be provided to the Departmentbefore the substantial change takes place. See Notice datedJuly 21, 1998, inDocketDOT-OST-1998-20-0343. See also Order2010-9-17, pg. 8, fn. 11. 3 See 14 CFR § 204.2(1) defines substantial change.

### Mr. Tony Bernhardt Principal Operations Inspector FAA Greensboro FSD0-39 6433 BryanBlvd. Greensboro,NC 27409 3INFORMATIONREQUEST GENERAL INFORMATION 1. Provide receipt confirmation of Dynamic's payment of the application fees for interstate and foreign scheduled authority from www.pay.gov. OWNERSHIP & MANAGEMENT 1. Identifythejurisdictionunder which DA2, LLC ("DA2") is organized andthepercent ofmembership interest Messrs. Karl and Michael Stoltzfus eachhold inDA2. 2. Provide resumes for Messrs. Paul Kraus and Kenneth Woolley. Eachresume should include the individual's full name, citizenship, current address, and telephone numbers, together with a detailed listing of all previous employment (both aviation and nonaviation) and education and training, including FAA certifications and license numbers if applicable. The employment listing should include the name ofemployer, location (city, state), type of business, position(s) held, description of responsibilities, and dates employed. Further, ifthe employer held any aviation authority, the type ofauthority held shouldbe noted. 3. Provide the date that Messrs. Michael Logan and Michael Jeffersonjoined Dynamic intheirrespective positions. 4. Explainthe gap inNorman L. Schott'sresume for the period July 2005-March2007. 5. List the Directors of Dynamic and identify the citizenship of each if not already provided. 6. Provide an organizational chartfor the air carrier. FINANCIALAND OPERATING PLANS 1. Provide a current (within 3 months) income statement and balance sheet for Dynamic Airways. 2. The forecast Income Statement that Dynamic Airways provided in its application only covers 1 0-months ofactual operations. In addition, the forecast income statement provided appears to only represent the additional 2 aircraft the air carrier seeks to operate in scheduled passenger service and does not include operating costs associated with the additional 3 aircraft the air carrier intends to add to its charter and cargo operations. Moreover, Dynamic Airways indicates that it expects to incur no pre-operating expenses associated with its request for amended authority. However, the first-year forecast Income Statement provided in Dynamic's applications indicates that the air carrier will incur pre-operating cost associated with its request to amend its authority. Therefore, pleaseprovide:2

a. anitemized list ofpre-operating and start-up cost associated withthe initiation ofthe proposed service, including those expenses that have been paid and those expensesthatremainto bepaid; b. a forecast balance sheet for the first-year ending after the initially proposed operations are normalized; and

c. a forecast Income Statement for the first year ending after the initially proposed operations are normalized, broken down between the air carrier's currentoperations and itsproposed expanded operations. (Ifthe air carrier wishes, it may meet this request by providing two different forecasts, one that assumes that itwill continue operating with its current fleet of5 aircraft, andthe otherthat assumes its request is granted in full and reflects the integration of additional aircraft into its operations.) Additionally, such forecast should conform to the criteriaoutlinedin 14 CFR204.3(t)(2). 3. Provide third-party verification evidencing that Messrs. Kenneth Woolly and Paul Kraus have access to sufficient liquid assets to fund the line-of-credit they extended to DynamicAirways. COMPLIANCEDISPOSITION 1. Please provide the compliance information required by sections 204. (1), (m), (o), (p) and (q) ofourrules for Mr. Guy Cannady. 2. A review of our records reveals that Mr. Kenneth Woolley previously held a substantial interest in MAXjet Airways, Inc., a now defunct certificated air carrier. However, Dynamic failed to disclose this relationship in its application pursuant to section 204.3(g) ofourrules. Therefore, ifany person or subsidiary ofa person having a substantial interest inthe applicant is or has ever been an air carrier, a foreign air carrier, a commoncarrier, or substantially engaged inthe business ofaeronautics, or anofficer or director of any such entity, or a holder of 10 percent or more ofthe total outstanding voting stock ofany such entity, provide a list identifying each such entity and provide a description oftherelationship. 3. Provide a list ofany aircraft accidents and incidents incurred by Dynamic in the past 5 years preceding its application, as well as a description ofthe measures the air carrier hastakento prevent similarreoccurrences. 4. In Dynamic's applications the air carrier identified a charge of fraud pursuant to section204.3(p) ofourrules. However, Dynamic Airways didnot affirmatively state that there are no further actions requiring reporting pursuant to 204.3(p). Therefore, please provide:

### 3

a. a description ofall charges ofunfair 

### or deceptive or anticompetitive business practices, or offraud, felony or antitrust violation, brought against any relevant corporation or person having a substantial interest in any relevant corporation, or member of the key personnel employed (or to be employed) by any relevant corporation inthe past 1 0years, including the disposition orcurrent status ofeach suchproceeding, or b. a statement that there have been no such actions brought against such parties inthepreceding 10 years. The information provided pursuant to this Information Request should be accompanied bythe following certification: The contents ofthis application and the attached exhibit (s) are true and correctto the best ofmy knowledge and belief. Pursuant to Title 18 United States Code Section 1001, I [the individual signing the application, who shall be aprincipal owner, senior officer, or internal counsel ofthe applicant], in my individual capacity and as the authorized representative of the applicant, have not in any manner knowingly and willfully falsified, concealed or failed to disclose any material fact or made any false, fictitious, or fraudulent statement or knowingly used any documents which contain such statements in connection with the preparation, filing or prosecution of the application. I understand that an individual who is found to have violated the provisions of 18 U.S.C section 1001 shall be fined or imprisoned not more than five years, orboth.