U.S. Department of 

Transportation 

Office of the Secretary 

of Transportation 

September 17, 2014 

Ms. Joanne W. Young 

Mr. David M. Kirstein 

Kirstein & Young PLLC 

Counsel for Dynamic Airways, LLC 

1750 K. St. N.W. 

Washington, D.C. 20006 

Dear Ms. Young and Mr. Kirstein: 

1200 New Jersey Avenue SE 

Washington DC 20590 

We have completed our initial review of the 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, our review of the 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 operate the scheduled services it proposes. Therefore, I ask that you respond fully to the 

attached Information Request within 14 days of the date of this letter. 

Your response should be mailed to U.S. Department of Transportation, Docket Operations, 

(M-30, Room W12-140), 1200 New 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 of Dynamic's 

applications will be deferred pending receipt of this material. 

We also wish to remind Dynamic that it should promptly provide the Department with 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. In this regard, we note that our 

review of the information provided in Dynamic's applications, as well as other information 

available to us, indicates that recently and on multiple occasions, Dynamic failed to notify 

us of substantial changes in its operations, management, and/or ownership. In addition, the 

Federal Aviation Administration ("FAA'') has informed us that Dynamic ceased all of its 

We also inform Dynamic that it is not the Department's policy to grant blanket open-skies certificates to 

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 of foreign 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 of its other key personnel since the Department last 

reviewed the air carrier's fitness. 

As you know, section 204.7 (14 CFR § 204.7) of the Department's Aviation Economic 

Regulations requires that any air carrier that ceases operations for which it was found fit 

must file a notice of its 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 of proposed2 

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 of Dynamic'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 scheduled passenger authority. 

Any violation of the 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 of its certificate, as well as the rules that govern its operations. 

Thank you for your cooperation in this matter. If you have any questions regarding this 

letter or the requested information, please feel free to contact Damon Walker of my staff at 

(202) 366-9721. 

Sincerely, 

u..o.oav. u J. Remo 

Chief, Air Carrier Fitness Division 

Office of Aviation Analysis 

Enclosure 

cc: Docket DOT -OST -2014-0069 and Docket DOT -OST -2014-0071 

2 The word proposed presupposes an event yet to occur. Inasmuch, our rules require that the §204.3 

materials be provided to the Department before the substantial change takes place. See Notice dated July 21, 

1998, in Docket DOT-OST-1998-20-0343. See also Order 2010-9-17, 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 Bryan Blvd. 

Greensboro, NC 27409 

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INFORMATION REQUEST 

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. Identify the jurisdiction under which DA2, LLC ("DA2") is organized and the percent 

of membership interest Messrs. Karl and Michael Stoltzfus each hold in DA2. 

2. Provide resumes for Messrs. Paul Kraus and Kenneth Woolley. Each resume 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 of employer, location (city, 

state), type of business, position(s) held, description of responsibilities, and dates 

employed. Further, if the employer held any aviation authority, the type of authority held 

should be noted. 

3. Provide the date that Messrs. Michael Logan and Michael Jefferson joined Dynamic 

in their respective positions. 

4. Explain the gap in Norman L. Schott's resume for the period July 2005-March 2007. 

5. List the Directors of Dynamic and identify the citizenship of each if not already 

provided. 

6. Provide an organizational chart for the air carrier. 

FINANCIAL AND 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 of actual 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, 

please provide: 
2 

a. an itemized list of pre-operating and start-up cost associated with the initiation 

of the proposed service, including those expenses that have been paid and those 

expenses that remain to be paid; 

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 

current operations and its proposed expanded operations. (If the air carrier wishes, 

it may meet this request by providing two different forecasts, one that assumes 

that it will continue operating with its current fleet of 5 aircraft, and the other that 

assumes its request is granted in full and reflects the integration of additional 

aircraft into its operations.) Additionally, such forecast should conform to the 

criteria outlined in 14 CFR 204.3(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 

Dynamic Airways. 

COMPLIANCE DISPOSITION 

1. Please provide the compliance information required by sections 204. (1), (m), (o), (p) 

and (q) of our rules 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) of our rules. Therefore, if any person or subsidiary of a person having a 

substantial interest in the applicant is or has ever been an air carrier, a foreign air carrier, 

a common carrier, or substantially engaged in the business of aeronautics, or an officer or 

director of any such entity, or a holder of 10 percent or more of the total outstanding 

voting stock of any such entity, provide a list identifying each such entity and provide a 

description of the relationship. 

3. Provide a list of any aircraft accidents and incidents incurred by Dynamic in the past 

5 years preceding its application, as well as a description of the measures the air carrier 

has taken to prevent similar reoccurrences. 

4. In Dynamic's applications the air carrier identified a charge of fraud pursuant to 

section 204.3(p) of our rules. However, Dynamic Airways did not affirmatively state that 

there are no further actions requiring reporting pursuant to 204.3(p). Therefore, please 

provide: 
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a. a description of all charges of unfair or deceptive or anticompetitive business 

practices, or of fraud, 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 in the past 1 0 years, including the disposition or current status of each 

such proceeding, or 

b. a statement that there have been no such actions brought against such parties 

in the preceding 10 years. 

The information provided pursuant to this Information Request should be accompanied 

by the following certification: 

The contents of this application and the attached exhibit (s) are true and correct to 

the best of my knowledge and belief. Pursuant to Title 18 United States Code 

Section 1001, I [the individual signing the application, who shall be a principal 

owner, senior officer, or internal counsel of the 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, or both.