### BEFORETHE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. < ,"." ,'" f, I!· I.

### 0

-. " t i.**~-\** It' 4- ) Application of ) ) ALASKA CENTRAL EXPRESS,INC. ) DocketDOT-OST-1996-1657 ) for reissuance ofits certificate ofpublic ) convenience and necessitypursuantto ) 49 U.S.C. 

### §41102 ) ) APPLICATION OFALASKA CENTRAL EXPRESS,INC. Communications with respectto this documentmay be served upon: Michael A. Bergt President ALASKA CENTRAL EXPRESS, INC. 5901 Lockheed Avenue Anchorage, Alaska 99502

Date: November 12,2010 Robert P. Silverberg, Esq. SILVERBERG, GOLDMAN & BIKOFF, L.L.P. 1101 30th Street, N.W. Suite 120 Washington, D.C. 20007 Tel: (202) 944-3300 Fax: (202) 944-3306 Email: rsilverberg@sgbdc.com Attorneys for ALASKA CENTRAL EXPRESS, INC.

Notice: Any person may support or oppose this application by filing an answer by December 3, 2010 and serving a copy ofthe answer on the above-named counsel and all persons served with this application. However, in the interest of expedition, counsel intends to poll the Alaska Department of Transportation and report the results of the polling to the Department.

### BEFORETHE DEPARTMENT OFTRANSPORTATION OFFICE OFTHE SECRETARY WASHINGTON, D.C. ) 

### Application of ) ) 

### ALASKA CENTRALEXPRESS, INC. ) ) 

### for reissuance ofits certificate ofpublic ) convenience and necessitypursuant to ) 49 U.S.c. 

### §41102 )

### --------------------------~) Docket DOT-OST-1996-1657



### APPLICATION OFALASKA CENTRALEXPRESS,INC. Alaska Central Express, Inc. ("Alaska Central") hereby applies pursuant to 49 U.S.C. 

### §41102 and Parts 201 and 204 ofthe Economic Regulations ofthe Department of Transportation ("Department") for a fitness determination and reissuance ofits certificate ofpublic convenience and necessity to the extent necessary to permit Alaska Central to engage in scheduled interstate air transportation of passengers as more fully described herein. Alaska Central requests that this application be processed on written submissions under the procedures set forth in Subpart B ofthe Department's Rules ofPractice. Alaska Central also requests expedited consideration by the Department ofthis application. In connection with this request, Alaska Central intends to poll the Alaska Department of Transportationand reportthe results to the Department as soon as possible. Alaska Central currently holds a certificate ofpublic convenience and necessity authorizing it to engage in interstate air transportation ofpersons, property and mail. 

### See Order 2008-12-17. 1 

### However, a condition contained in Alaska Central's certificate limits

I 

### Alaska Central's certificate ofpublic convenience and necessity authorizing it to engage in interstate air transportation ofpersons, property and mail was last reissued by Order

### Application ofAlaskaCentral Express, Inc. November 12,2010 Page 2 its interstate passenger operations to charter air transportation with aircraft having a maximum passenger capacity ofless than 60 seats or a maximum payload capacity ofno
more than 18,000 pounds. 2 

### See Order 2008-12-17, Certificate Terms, Conditions, and Limitations (4)(b). Accordingly, Alaska Central hereby requests that the Department find Alaska Central fit to conduct scheduled interstate passenger operations with aircraft having a maximum passenger capacity of less than 60 seats or a maximum payload capacity of no more than 18,000 pounds, and to reissue its certificate without the condition limiting its passenger authority to charter airtransportation.3 

### In further support ofthis application, Alaska Central states as follows: 1. Alaska Central is an Alaska corporation in good standing whose principle place ofbusiness is 5901 Lockheed Avenue, Anchorage, Alaska 99502. 2. Alaska Central conducts scheduled and charter all-cargo operations and passenger charter operations with a fleet of four Raytheon Beech 1900C pressurized turboprop aircraft. The company currently provides scheduled all-cargo service between Anchorage and 21 destinations in Alaska including Aniak, Bethel, Dillingham, Illiamna, 2008-12-17 to reflect its effective date ofJanuary 15, 2008. Previously, by Order 2007- 4-14, issued April 16, 2007, the Department found Alaska Central fit, willing and able to engage in interstate air transportation of persons, property and mail and removed a condition in Alaska Central's priorcertificate ofpublic convenience and necessity (issued by Order 98-7-6) that limited its authority to the transportation ofcargo and mail. 2 

### Alaska Central is also authorized by its certificate ofpublic convenience and necessity to engage in scheduled and charter air transportation of cargo and mail with aircraft having a maximum payload capacity ofno more than 18,000 pounds. 

### See Order 2008- 12-17, Certificate Terms, Conditions, and Limitations (4)(a). 3 

### The DOT defines "small aircraft" as those designed to have a maximum passenger seating capacity of60 seats or less. 

### See 14 C.F.R. §298.2. While the certificate issuedto Alaska Central is limited to operations with defined "small aircraft", the DOT should note that Alaska Central's scheduled passenger operations, once approved, will be conducted with its Raytheon Beech 1900C aircraft configured with nine passenger seats and operated under Part 135 oftheFederal Aviation Regulations (14 C.F.R. Part 135).

### Application ofAlaska Central Express, Inc. November 12,2010 Page 3 King Salmon, Kodiak, Cold Bay, Dutch Harbor, Pt. Heiden, Sand Point, St. George, St. Paul, Chenaga, Cordova, Juneau, Ketchikan, Petersburg, Sitka, Tatitlek, Wrangell and Yakutat. Alaska Central also offers passenger and all-cargo charter flights throughout the State ofAlaska. During the past 12 months, Alaska Central has conducted 91 passenger charter flights, transporting 1,275 passengers throughout the State of Alaska. The company currently has 65 full-time employees. 3. Upon receipt of DOT and FAA authority, Alaska Central intends to conduct scheduled passenger operations for an initial period ofsix months with one ofits existing Beech 1900C aircraft. As described to the Department on previous occasions,
one ofAlaska Central's existing Beech 1900C aircraft, which the company currently uses to conduct its passenger charter operations, is in a passenger/cargo combination configuration. Alaska Central intends to conduct its scheduled passenger operations with this same Beech 1900C aircraft for an initial period ofapproximately six months. Six months after commencement of scheduled passenger service, Alaska Central intends to acquire one additional Beech 1900C aircraft to conduct its scheduled passenger operations provided sufficient demand exists to warrant it. Both ofthe Beech 1900C aircraft that Alaska Central intends to conduct its proposed scheduled passenger flights will accommodate up to nine passengers. 4. Alaska Central has the financial resources sufficient to conduct scheduled passenger operations without undue risk to consumers. Attachment 1contains aprojected balance sheet, profit and loss statement and statement ofcash flows that take into account

### Application ofAlaskaCentral Express, Inc. November 12,2010 Page 4 the proposed scheduled passenger operations.4 

### These forecast financial statements
assume that Alaska Central will acquire one additional Beech 1900C aircraft in June 2011. As these projected financial statements demonstrate, Alaska Central forecasts that its combined cargo and passenger operations, including its new scheduled passenger service, will result in significant net income for the 2011 calendar year. Attachment 2 contains Alaska Centra1's current 2010 balance sheet and profit and loss statement for the nine months ending September 30,2010. Finally, Attachment 3 provides information on the pre-operating expenses that Alaska Central expects to incur in connection with initiating its scheduledpassengeroperations. As these financial statements show, Alaska Central is in a strong financial position and can clearly support its proposed scheduled passenger operations. To meet the Department's financial fitness criteria, an applicant should have access to financial
resources sufficient to cover its pre-operating expenses and the expenses that it reasonably expects to incur during three months of normal operations. It 

### is the Department's practice to base its three-month test on an average ofone-quarter ofthe first year's operating costs. With current cash and cash equivalents ofover $400,000 and total owner's equity ofover $5.3 million as shown in Alaska Central's current profit and loss statement (Attachment 2), the company has more than sufficient financial resources to meet the Department's financial fitness test in connection with its proposed scheduled passenger operations.

4 

### A non-redacted version of Attachment 1 is being filed under seal in this Docket pursuant to a Motion for Confidential Treatment. The information for which Alaska Central seeks confidential treatment has been redacted from the version ofAttachment 1 included with this application.Application ofAlaska Central Express, Inc. November 12,2010 Page 5 5. Alaska Central also has the managerial skills and technical expertise to conduct the proposed scheduled passenger operations. Enclosed herewith as Attachment 4 is a summary ofthe compliance information required by sections 204.3(1), (m), (0), (p) and (q) ofthe Department's Regulations for each ofAlaska Central's directors and key management personnel. Also included in Attachment 4 is compliance information for Alaska Central itselfand its sole owner, Donald R. Swortwood.5 Alaska Centralhas been conducting passenger charter operations since January 2008 and, as noted, withinthe past 12 months alone has conducted 91 passenger charter flights. Given Alaska Central's extensive passenger charter operations over the last three years, the company clearly has the experience to successfullyinitiate scheduledpassenger operations. 6. Alaska Central is a citizen ofthe United States as defined in 49 U.S.C. §40102(a)(l5). The President ofAlaska Central, Michael A. Bergt, and all ofits directors and other managing officers are citizens of the United States. One hundred percent of Alaska Central's voting stock is controlledby a U.S. citizen. 7. Grant of this application will not result in a near-term increase in fuel consumption oftenmillion gallons ormore. Thus, no major regulatory action will betaken by the Department within the meaning of section 313.4(a)(l) of the Department's Regulations upon it approving this application.

5 Except with respect to Mr. Kenneth D. Triplett, Alaska Central's Director of Maintenance, and Mr. Merlyn J. Parret, Alaska Central's new Chief Inspector, Attachment 4 provides updated compliance information for the key personnel ofAlaska Central and for the company itselfsince the date ofthe last such report to the Department on May 19, 2009. With respect to Mr. Triplett, Attachment 4 provides updated compliance information since February 26, 2009, the date on which compliance information was last provided to the Department for Mr. Triplett. Since Mr. Parret has replaced Mr. John Davis as Alaska Central's Chieflnspector, a resume for Mr. Parret is included in Attachment4.

### Application ofAlaska Central Express, Inc. November 12,2010 Page 6 WHEREFORE, Alaska Central Express, Inc. respectfully requests that the Department of Transportation determine that it is fit to conduct scheduled passenger operations with aircraft having a maximum passenger capacity of less than 60 seats or with a maximum payload capacity of no more than 18,000 pounds, and to reissue its certificate ofpublic convenience and necessity without the condition contained therein limiting its passenger authority to charter air transportation, as well as such additional or otherreliefas the Department my deem appropriate. Respectfully submitted, SILVERBERG, GOLDMAN & 

### BIKOFF, L.L.P. Attorneys for

# :~:z:c. Robert P. Silverberg Dated: November 12,2010

## ATTACHMENT 1Alaska Central Expreu Balance Sheet • 2011

1)ASSETS: 2 ) TOIal Cash J) 4) Accounts Receivable 5 ) 6 ) InventO<)' 7 ) 8 ) Prepaia Expenses 9 ) 10)**Depos~** & OtherAssets 11 ) 12) PP&E 13) PP&ENO 14) Nel PP&E 15 ) 16 ) 17 ) To1aI Aaseta 18 ) 19 ) LIABIlITIES & EQUITY: 20 ) Accounts Payable-T,aa. 21) Other Payables 22) Accrued Expenses 23 ) 24 ) 25 ) Current UablIiIies 26) LT Debt 27 ) 29 ) 30) 31 ) 32) Retained Eamlngs Current Income

Shareholden Equity 33 ) TOUII Uabilities and Equity 34) 35 ) Proof Bud\1el 1213112010 465,082 1,468,Q70 1,266,607

56.089 289,860 12,366.505 (6,187,845 6.178,660
9724367

211,219 40,276 419.008 670.502 3,625.393 5,288,846 5,428,472 9724.367 Budget 113112011

594.549 1,266,912 1,266,607

193,970 289.860 12.438,255 (6.250237) 6,188.018
9801 g15

211.219 40,276 428,508 680,002 3.604,473 5.288.846

88969 5,517,440 9801915 Budget 212&'2011

799,219 1,168,241 1,266,607

134.219 289.860 12,480,505 (6.311.299) 6.169.205
9827351

211,219 40,276**~39,508** 691,002 3,583.426 5,288.846

124.451 5.552,923 9827,351 Budi19t 313112011 656,736 1,356,810 1,266,607

74.468 289,860 12.552,405 (6,375.811) 6.176,594
9821 Q74

211,219 40,276 360,508 612,002 3.660.913 5,188,846

319.687 5,648,159 9821074 Budget 413012011 655,723 1,257,677 1,266,607

187.760 289.860 12.557.405 (6.440.692) 6,116.712
9774328

211,219 40,276 371.506 623,002 3,539,802 5.088.846

383.252 5,611,724 9774,328 Budget 513112011

697,766 1,443,699 1,266,607

163.123 289,860 12.569,905 (6.511.063) 6,058.842
9919896

211,219 40.276 382.508 634.002 3,517.721 5,088.846

539,701 5,768,173 9 919 896 Budget 613012011

594,227 1,627,141 1,266,607

114,784 289.860 14.295.405 (6,582,516) 7,712,888
11605487

211,219 40,276 393,508 645,002 4,856,148 5,088,846

875,865 6,lD4,336 11,605 487 Budget 713112011 578,350 1,705,673 1,266.607

212.437 289,860 14.302,905 (6,658.739) 7,644,166
11 6t7094

211,219 40,276 404,508 656,002 4,828.918 4,888,846 1 183.702 6,212,174 11687094 Budget 813112011

766,38"\ 1.726,540 1,266.607

184,078 289,860 14,326,905 (6.735,843) 7,591,061
11804530

211,219 40.276 415.508 667,002 4,801,957 4,688.846 1.507.099 6,335,571 11804,530 Budget 9130/2011

1,064,618 1,461,262 1,266,607

88,719 289,860 14,339.905 (6,810.256) 7,529,648
117oo70!l

211,219 40,276 426,508 678,002 4,774,832 4.488.946 1.619399 6,247,871 11700705 Attachment 1

Budi19t Hl'3112011 877,798 1,351.405 1.266.607

186.393 289,860 14,347.905 (6.883.671) 7,464,234
11436297

211,219 40.276 437.508 689.002 4,747,113 4,188.846 1,671,710 6,000,182 11436297 Budget 1113012011 854.251 1,333,332 1.266.607

115.534 289.860 14,368.405 (6,955.504) 7,412,901
11272484

211.219 40.276 448.508 700,002 4,719,653 3,938.846 l,n4.357 5,852,829 11272484 Budgel 1213112011 985,149 1,430,964 1.266,607

55,783 289,860 14,373.655 (7,029,655 7,344,000
11372381

211.219 40.276 399,508 651,002 4,691.603 3,938,846 1.951.305 6,029,776 11,372,381Ala
....Central**~,Inc.** ProfarrnaPIL Vwar2011
.



# -- BudgetJon Budget Fob Budget

# - Budget**~** Budget Moy Budget Jun

-RevenuesBudget Budget Jul Aug**~~** .-------.

..

## __.__......._--_.'.,_

...**~,** L

.__________ .**0p0ratIng~** -**TOIa~ V.""'b~,**  Jet A Fuel & Oil Pilots and Crew Direct LaDOr • MaInI.nanc, Outside**R~pai'"** FMPPfOQfl!I1\ Amort P,.FMP OverhaUls and**~S** Beech Ratable.Amort Direct Materials Landin Fees COntractors Contl_rlCias Toto! Variable Coats

R_eosto·Tocal
..**~~;a=** Aircrafi. DepreclaHon Insurance Legal Fae•• R§lA FIitlhl Operations Ov.mud MlIlntenance Ovemeed AlrcraN S!lMC8 TrafUc servfCe Genellll and AanInl!1ration Custome,50"". & Advertising L...l,,---tal**~od**Coota
___ T

_ OporoUng COSts Net Income CumuIa1IW 279,94$ 83556 48.12 1 .216**110.47~** 2.037 21.385 19,441 13456 81.765 10,000 58147S

25231 18,685 57,6n 2500 23.216 65,62. 7.836 86.47' 90,201 44.049

- L-
___401,m 1,092,968**252.~08** 287 -132 75.338 85.790 43.392 4g.4 3 10166 II.S 99.607**113.~28** 2.037 2.037 19.281 21,QS7 11.528 199!51 11,465 12.562 76,508 91853 10.000 10.000 617728 706.128

25.084 24,926 19.685 18.585 57577 57.an 5.000 5.000 23.218 23.216 65.624 65094 7.836 7.616 66474 57.124 90,201 90.201 45,049 44.549

, - 404,846**.£04..z~** 1,022,574 1,110,416 - OperatingEipenaes

-

282.143 343,865 347.922 400.214 401.639 84.2tl 102 633 103.844 119,452 119.877 48.504 59.115 59 812 68.802 59.047 11._ 13,850 14.014 16.120 18.177 111340 135,6ge 37.299 157.934 15M97

2.037 2.037 2.037 2.037 2.037 21.553 26.261 26.577 30.572 30.581 19.593 23.819 24.161 27.793 27.892 12.790 14.412 15.845 15.764 15.521 58.502 115.458 141.954 129454 129.078 10,000 10,000 10.000 10,000 10000 6lr. 037 847 15 883._ 975141 980444

- FIxed Costs
- 24.777 24,624 33.993 33,802 33,514 18.685 18.585 19,585 28,301 28.301 57.677 57.577 57,6n 80.113 80,113 2.500 2.500 2,500 2.500 2,500 23.216 23.216 23.216 23.216 23216 64.829 64.829 64.829 64.564 65 564 7.806 7.805 7.806 7.796 7.796 68.824 69.124 69.124 58.124 58,124 95845 91.095 89.345 58.645 88,845 46,299 46.299 47.299 43.132 43.832**410~** 407,956**-~~!~**,-- 440 394 441705 1,102,295 1,255,070 1,297,941 1,415,535 1,422,149

..**~**...-.. 

### --
...**--.--.'~~~"**

....

# ---- BudgetSopt

356.271 108._ 61.247 14.350 140,593**~.""7** 21,215 24.741 14.007 94.409 10.000 651.-

33.424 28.301 80.113

500 23.216 65.929 7.8lM5 69,624 97.345 42.632 44O.7iO 1,291,997 BudgotOct

333.072 99.412 57..259 13.415 131439

2.' 7 5.443 23130 13..250 80.103 10.000 7Ba,560

33,230 29.301 80.113 2.500 23.216 65.829 7.808 99.62< 97.345 42.132 440 096 1,229,656 Attachment 1

Budget Nov

302,235 90.208 51.956 12.173 119.259

2.037 23.081 20.989 12.520 77.768 10,000 722,245

33.038 28.301 80.113 2500 2 5 58.824 7,836 69.624 87,345 40.632 439 !29 1,181,474 Budget Dec

322.449 96..241 55,_ 12.988 127,246

2,037 24 832 22392 13.520 65.281 10,000 772,199

32,841 29,:))1 80,113 2.500 25,216 66,624 7.836 59624 87,345 40.632 441033 1,213,231 Total

3.909.596 1.166.897 672.109 157,470 1,542,824

24.444 296.650 271.500 165241 1.189.114

120000 9517 B44

$35B,585 $0 $261,915 $82f;,743 $35,000 5280,592 $766 867 $113780 $821686 $1073959

$529337 5086462 14,6114,307Alaska Central Express, Inc. Statement ofCash Flows for the 12 Month Period Ending December 31, 2011 submitted under seal Pursuantto a Motion for Confidential Treatment Attachment 1

## ATTACHMENT 2Attachment2
Alaska Central Express Forthe Nine Months Ending September 30, 2010 ASSETS

Cash and Equivalents 403,671.45

Accounts Receivable 1,699,158.79
Inventory 1,266,606.54 Prepaid Expenses 75,339.62 Total Current Assets 3,444,776.40
Property, Plantand Equipment: Net 6,303,979.51

Total OtherAssets 289,859.90
TOTAL ASSETS $10,038,615.81
Forthe Nine Months Ending September 30,2010 LIABILITIES

Accounts Payable
Accrued Expenses Payroll Liabilities

Total Current Liabilities
Long Term Debt Total Liabilities
Owners Equity Common Stock & Retained Earnings & Shareholder Dividends Current Year Net Income (Loss) Total Equity Total Equity and Liabilities 461,218.76
40,275.52
523,132.17 1,024,626.45
3,687,461.38 4,712,087.83

3,841,501.79 1,485,026.19 5,326,527.98 $10,038,615.81REVENUES

Beech Jet-A Beech Jet-A

Pilots & Crew Wages & Benifits-Beech 1900
Beech DirectLabor OtherVariable OperatingExpenses OutsideRepairs 1900 FMP 1900 Amort Eng OIH 1900 Amort Rotables 1900 Depr Avoinics Equip 1900 Materials 1900

Total LandingFees
Ground Handling 1900
Total Variable Expenses Gross Margin
Fixed Costs Interest Exp Depre Hulls Insurance Hulls Insurance PAX Liability Insurance 3rd Party PAX

Fit Ops Overhead 1900

Maintenance Overhead
Aircraft Services

Traffic Services
General & Admin Expenses
CustomerService & Sales Current Period 09/30/10 Yearto date 09/30/10

1,404,419.80 11,463,971.64

313,783.93
95,219.05
52,318.04

30,106.41 118,710.87

2,037.04 21,145.40

. 2,685.46

24,120.49 198,805.67

8,290.70
107,359.86 775,777.25 628,642.55

23,666.92 18,685.19 12,864.82 7,848.08 5,459.13 68,524.14

20,107.25

64,604.88
7,988.65

68,198.66
147,781.80
39,811.45 2,524,672.72
796,007.66
476,116.52

120,499.90 954,797.22

18,333.36 174,537.89 22,777.72 304,137.10 1,595,083.19

77,202.13
942,215.78 6,411,298.00 5,052,673.64

168,036.46 204,711.44 172,303.19 107,152.42 63,991.61 716,195.12

205,285.11

622,465.95
66,974.44

636,940.60
667,727.62
310,269.23 Attachment 2Attachment 2

ACE Logistics 10,445.64 57,967.98 Total Fixed Costs 366,234.77 3,283,826.05 Total Operating Expenses 1,203,239,72 9,695,124,05 Operating Net Income (Loss) 262,407,78 1,768,847,59 Net Income 201,180.08 1,485,026.19

## ATTACHMENT 3Alaska Central Express, Inc. Scheduled Passenger Service Pre-operating Expenses

Upgrade airport facility to include a Pax terminal Pax Certification Expenses 3 Computers for Pax Reservations @ $900 each Advertising
Total New Startup Costs $25,000 $5,000 $2,700 $5,000 $37,700 Attachment 3

## ATTACHMENT 4

### ATTACHMENT 4 SUMMARY OF COMPLIANCE INFORMATION FORALASKA CENTRAL EXPRESS, INC.


### I. Company Alaska CentralExpress, Inc. 

### Pending Actions and Outstandin

# y Judgments (> 

### $5,000): Pending Actions and**Outstandin~** 

### Judgments 

## « $5,000): DOT/F 

### AA Investigations: 3



### Charges: 4 

### Aircraft Accidents: 5 

### None
None On or about June 10, 2010, Alaska Central received a FAA letter of investigation alleging that an untrained employee accepted a shipment ofhazardous materials and that the shipper's declaration was not properly completed. On June 24, 2010, Alaska Central responded to the FAA's inquiry and noted the circumstances of the acceptance of the cargo and explained that the shipment was properly accepted for transport. None (1) 

### NTSB File No. ANC10FA014

- On January 21,2010, Alaska Central

1 

### This category includes actions and outstandingjudgments for more than $5,000 against the individual orthe company, including the amount ofeachjudgment, the partyto whom it is payable, and how long it has beenoutstanding. 14 C.F.R. 

### §204.3(1). 2 

### This category includes actions and outstandingjudgments of less than $5,000 against the individual or the company, and the total amount owed on suchjudgments. 14 C.F.R. §204.3(m). 3 

### This category includes pending investigations, enforcement actions or formal complaints filed by the DOT or FAA against the individual orthe company. 14 C.F.R. 

### § 204.3(0). 4 

### This category includes charges of unfair or deceptive or anti-competitive business practices, or offraud, felony or antitrust violations, brought against the individual or the company in the last 10 years. 14 C.F.R. §204.3(p). 5

### This category includes aircraft accidents or incidents within the last year where the FAA or the NTSB has concluded or closed its investigation, and all accidents or incidents

### II. Owner DonaldR. Swortwood Title:
Citizenship: Pending Actions and OutstandingJudgments (> $5,000): experienced a loss of an all-cargo aircraft during takeoff from Sand Point, Alaska. The two flight crew members suffered fatal injuries. The NTSB is conducting an investigation of the accident but has not yet rendered its final report or probable cause finding. (2) On October 18, 2010, an Alaska Central all-cargo aircraft was struck by lightning on final approach to Sitka, Alaska. The aircraft suffered damage to the elevator caused when the lightning strike exited the aircraft structure. As a result, the event was classified as an "accident" and was reported to the NTSB as such. The Captain's vision was impaired by the lightning strike and the First Officer took over the controls until command was returned to the Captain after he regained his vision. There were no other mJunes or damage to the aircraft.

100% owner of Alaska Central Express (shares held by the Donald R. Swortwood Trust); Chair, Board ofDirectors U.S.
See Below·
where the FAA or NTSB has not concluded or closed its investigation. 14 C.F.R. § 204.3(q). * As trustee of the Donald R. Swortwood Trust, Mr. Swortwood was named as a defendant in an action brought by taxi cab drivers against Yellow Cab of San Diego seeking certain employee benefits. (Musse, etal. v. Yellow Cab of San Diego, SanDiego Superior Court Case No. GlC 845934). Mr. Swortwood's trust sold the Yellow Cab company in October 2001. Mr. Swortwood has settled the case for $125,000. Court approval ofthe settlement is still pending. Once approved, the settlement amount will be
2Pending Actions and OutstandingJudgments 

## « $5,000): DOTIF AA Investigations: Charges: AircraftAccidents: 

### III. Officers and Directors MichaelA. Bergt Title: Citizenship: Pending Actions and OutstandingJudgments (> $5,000): Pending Actions and OutstandingJudgments 

## « $5,000): DOTIF AA Investigations: Charges: Aircraft Accidents: Terry Trzcinka Title: Citizenship: Pending Actions and OutstandingJudgments (> $5,000): Pending Actions and OutstandingJudgments 

## « $5,000): DOTIF AA Investigations: Charges: Aircraft Accidents: None None None None

President; Member, Board of Directors U.S.
None
None None None None
Member, Board ofDirectors U.S.
None
None None None None

paid into a court approved fund to be disbursed to the numerous plaintiffs. The date for court approval and for payment ofthe funds has notyet been determined.
3IV. Key Technical Personnel MichaelA. Murphy Title: Citizenship: PendingActions and OutstandingJudgments (> $5,000): Pending Actions and OutstandingJudgments 

## « $5,000): DOTIF AA Investigations: Charges: Aircraft Accidents: Kenneth D. Triplett Title: Citizenship: PendingActions and OutstandingJudgments (> $5,000): PendingActions and Outstanding Judgments 

## « $5,000): DOTIF AA Investigations: Charges: AircraftAccidents: lfarold**~** C7arter Title: Citizenship: PendingActions and OutstandingJudgments (> $5,000): PendingActions and OutstandingJudgments 

### « $5,000): DOTIF AA Investigations: Charges: Aircraft Accidents:

4 Director ofOperations U.S.
None
None None None None

DirectorofMaintenance U.S.
None
None None None None

ChiefPilot U.S.
None
None None None NoneMerlyn J Parret Title: Citizenship: Pending Actions and OutstandingJudgments (> $5,000): Pending Actions and OutstandingJudgments 

## « $5,000): DOTIF AA Investigations: Charges: Aircraft Accidents:



### 5 ChiefInspector U.S.
None
None None None None

# Phone: A&PLicense#574289222 Adult Work History 7/97-present: Alaska CentralExpress, Inc. (air carrier, cargo & 

## charter) (Anchorage, AK) Duties: LeadMechanic maintaining a fleet thathas included BE-1900C, C-207, and EMB 120 aircraft, RII inspector, maint. trainer, primary sheetmetal specialist, fuel quality monitor, and facility maintenance. Currently acting as the ChiefInspector responsible for: ensuring fleet compliance with all regulations, data entry and tracking ofaircraft and aircraft components for inspection, overhaul, or life limits status, training and supervision ofthe inspector work force, training ofthe othermaintenance personnel, collating information and filing all required forms and reports with the FAA, managing the company's CAS program, maintaining the company's technical library, ensuring the

## 10/96-7/97

5/95-10/96

10/88-5/95 current calibration status ofall ofthe company's calibratedtools, performing all vendor audits and surveys, ensuring company fueling systems are in compliance with regulations, dealing with facility safety issues, and other duties as assigned by the director ofmaintenance. Alaska Aircraft Sales (Anchorage, AK) (FBO & 

## Repair Station) Performed 100hr. and annual inspections on general aviation aircraft. Assisted inthe conformity inspectionofa state purchased C-208 and the contract maint. ofa state owned King Air. Ketchum Air Service (Anchorage, AK) (air taxi) 100hr and annual inspections and general maint. on the company'sfleet of C-206, DHC-2, and Turbine Otters. Markair Express (Anchorage, AK) (commuter) Majority ofmy tenure here was in the sheet metal shop rebuilding flight controls and performing major and minor structural repairs on the company's fleet ofaircraft which at it'sheightwas approx. 50 planes which includedDHC-6s, DHC-7s, DHC-8's, C-207s, C-208s, BE-1900Cs and

## 1988

85/87

80-85

78-80

74-78 a few others. Towards the end ofmy tenure I was the maintenance managerfor one year and spent anotheryear as the maintenance liaisonbetweenMarkair and Markair Express. AeroTwin (Anchorage,AK) (RepairStation) Was here Approx. 3 months. performing maintenance ongeneral aircraft. 2yrs attending classes at Anchorage Community College, working nights as a Janitor, and assisting my wife with ourhome based daycare. SeairAlaskaAirlines (Anchorage,Ak) (aircharter) FirstjoboutofA&P school. Mainly worked sheet metal and structural repairs on the company's fleet ofaircraft which consisted of Convair 580s, DHC-6s, Turbine Beavers, and several Bellhelicopters. Robertson STOL Company (Everret,WA) Worked nights installing Robertson STOL Kits in single engine Cessnas while attending A&P school. 

## USAF

# ... 

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Crew Chiefoverseeing maintenance on KC135ATankers. Education 

## 1/74 Graduated from Service High School (Anchorage, AK) 78-80 South Seattle Community College A&P Course. 86-87 Anchorage Community College Earnedbutdid not apply for Assoc. Degree. 5/99 Raytheon 1900AirlinerWing NDI Course 3/00 SkyWestEMB 120Familiarization Course 1/01 Pratt &Whittney PWI00 Series Line Maint. Course. 10/04 Flight Safety 1900 Airliner Series Maint. Course. 3/04 Raytheon 1900 ElevatorRigging Training & 1900 Corrosion Inspection & ControlCERTIFICATE OF SERVICE I hereby certify that I have on this lih day of November 2010, served the foregoing Application of Alaska Central Express, Inc. by first-class mail on the following: Hugh A. McLaughlin Manager, Flight Standards District Office Federal AviationAdministration 300 West 36thAvenue, Suite#101 Anchorage, Alaska 99503 Marc Luiken Deputy Commissioner ofAviation AlaskaDepartment ofTransportation & Public Facilities P.O. Box 112500 Juneau, AK 99811-2500 

# £ .4-."

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# Jl&s-:
Robert P. Silverberg