BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. < ,"." ,'" f, I!· I. 0 -. " t i. ~-\ It' 4-

) 

Application of ) 

) 

ALASKA CENTRAL EXPRESS, INC. ) Docket DOT -OST -1996-1657 

) 

for reissuance of its certificate of public ) 

convenience and necessity pursuant to ) 

49 U.S.C. § 41102 ) 

) 

APPLICATION OF ALASKA CENTRAL EXPRESS, INC. 

Communications with respect to this document may 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 of the 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. 
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

) 

Application of ) 

) 

ALASKA CENTRAL EXPRESS, INC. ) 

) 

for reissuance of its certificate of public ) 

convenience and necessity pursuant to ) 

49 U.S.c. § 41102 ) 

--------------------------~) 

Docket DOT-OST-1996-1657 

APPLICATION OF ALASKA CENTRAL EXPRESS, INC. 

Alaska Central Express, Inc. ("Alaska Central") hereby applies pursuant to 49 

U.S.C. § 41102 and Parts 201 and 204 of the Economic Regulations of the Department of 

Transportation ("Department") for a fitness determination and reissuance of its certificate 

of public 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 of the Department's Rules of Practice. Alaska 

Central also requests expedited consideration by the Department of this application. In 

connection with this request, Alaska Central intends to poll the Alaska Department of 

Transportation and report the results to the Department as soon as possible. 

Alaska Central currently holds a certificate of public convenience and necessity 

authorizing it to engage in interstate air transportation of persons, property and mail. See 

Order 2008-12-17. 1 However, a condition contained in Alaska Central's certificate limits 

I Alaska Central's certificate of public convenience and necessity authorizing it to engage 

in interstate air transportation of persons, property and mail was last reissued by Order 
Application of Alaska Central Express, Inc. 

November 12,2010 

Page 2 

its interstate passenger operations to charter air transportation with aircraft having a 

maximum passenger capacity of less than 60 seats or a maximum payload capacity of no 

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 air transportation.3 

In further support of this application, Alaska Central states as follows: 

1. Alaska Central is an Alaska corporation in good standing whose principle 

place of business 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 of January 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 prior certificate of public convenience and necessity (issued 

by Order 98-7-6) that limited its authority to the transportation of cargo and mail. 

2 Alaska Central is also authorized by its certificate of public convenience and necessity 

to engage in scheduled and charter air transportation of cargo and mail with aircraft 

having a maximum payload capacity of no 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 of 60 seats or less. See 14 C.F.R. § 298.2. While the certificate issued to 

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 ofthe Federal Aviation Regulations (14 C.F.R. Part 135). 
Application of Alaska 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 of Alaska. 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 of six months with one of its 

existing Beech 1900C aircraft. As described to the Department on previous occasions, 

one of Alaska 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 of approximately 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 of the 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 1 contains a projected 

balance sheet, profit and loss statement and statement of cash flows that take into account 
Application of Alaska Central 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 scheduled passenger operations. 

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 of one-quarter of the 

first year's operating costs. With current cash and cash equivalents of over $400,000 and 

total owner's equity of over $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 of Attachment 1 

included with this application. 
Application of Alaska 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 of the compliance information required by sections 204.3(1), (m), (0), (p) 

and (q) of the Department's Regulations for each of Alaska Central's directors and key 

management personnel. Also included in Attachment 4 is compliance information for 

Alaska Central itself and its sole owner, Donald R. Swortwood. 5 Alaska Central has been 

conducting passenger charter operations since January 2008 and, as noted, within the 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 successfully initiate scheduled passenger operations. 

6. Alaska Central is a citizen of the United States as defined in 49 U.S.C. 

§ 40102(a)(l5). The President of Alaska Central, Michael A. Bergt, and all of its directors 

and other managing officers are citizens of the United States. One hundred percent of 

Alaska Central's voting stock is controlled by a U.S. citizen. 

7. Grant of this application will not result in a near-term increase in fuel 

consumption of ten million gallons or more. Thus, no major regulatory action will be taken 

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 of Alaska 

Central and for the company itself since the date of the 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 Attachment 4. 
Application of Alaska 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 of public convenience and necessity without the condition contained therein 

limiting its passenger authority to charter air transportation, as well as such additional or 

other relief as 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 1 
Alaska Central Expreu 

Balance Sheet • 2011 

1) ASSETS: 

2 ) TOIal Cash 

J) 

4) Accounts Receivable 

5 ) 

6 ) InventO<)' 

7 ) 

8 ) Prepaia Expenses 

9 ) 

10) Depos~ & Other Assets 

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 

11687 094 

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 

11272 484 

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 

11,372,381 
Ala .... Central ~,Inc. 

Profarrna PIL Vwar2011 . 

-- Budget 

Jon 

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!1 ration 

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 

- Operating Eipenaes -

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 980 444 

- 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 

.. ~ ... -.. -- ... --.--.'~~~" 

.... ----

Budget 

Sopt 

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 

Budgot 

Oct 

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 

14,6114,307 
Alaska Central Express, Inc. 

Statement of Cash Flows for the 12 Month Period 

Ending December 31, 2011 submitted under seal 

Pursuant to a Motion for Confidential Treatment 

Attachment 1 
ATTACHMENT 2 
Attachment 2 

Alaska Central Express 

For the 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, Plant and Equipment: Net 6,303,979.51 

Total Other Assets 289,859.90 

TOTAL ASSETS $10,038,615.81 

For the 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 

$10,038,615.81 
REVENUES 

Beech Jet-A 

Beech Jet-A 

Pilots & Crew Wages & Benifits-Beech 1900 

Beech Direct Labor 

Other Variable Operating Expenses 

Outside Repairs 1900 

FMP 1900 

Amort Eng OIH 1900 

Amort Rotables 1900 

Depr Avoinics Equip 1900 

Materials 1900 

Total 

Landing Fees 

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 

Customer Service & Sales 

Current Period 

09/30/10 

Year to 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 2 
Attachment 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 3 
Alaska 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 

FOR ALASKA CENTRAL EXPRESS, INC. 

I. Company 

Alaska Central Express, Inc. 

Pending Actions and 

Outstandiny 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 of hazardous 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 outstanding judgments for more than $5,000 against 

the individual or the company, including the amount of each judgment, the party to whom 

it is payable, and how long it has been outstanding. 14 C.F.R. § 204.3(1). 

2 This category includes actions and outstanding judgments of less than $5,000 against 

the individual or the company, and the total amount owed on such judgments. 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 or the company. 14 C.F.R. § 

204.3(0). 

4 This category includes charges of unfair or deceptive or anti-competitive business 

practices, or of fraud, 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 

Donald R. Swortwood 

Title: 

Citizenship: 

Pending Actions and 

Outstanding Judgments 

(> $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 

of Directors 

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, et al. v. Yellow Cab of San Diego, San Diego 

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 of the settlement is still pending. Once approved, the settlement amount will be 

2 
Pending Actions and 

Outstanding Judgments 

« $5,000): 

DOT IF AA Investigations: 

Charges: 

Aircraft Accidents: 

III. Officers and Directors 

Michael A. Bergt 

Title: 

Citizenship: 

Pending Actions and 

Outstanding Judgments 

(> $5,000): 

Pending Actions and 

Outstanding Judgments 

« $5,000): 

DOT IF AA Investigations: 

Charges: 

Aircraft Accidents: 

Terry Trzcinka 

Title: 

Citizenship: 

Pending Actions and 

Outstanding Judgments 

(> $5,000): 

Pending Actions and 

Outstanding Judgments 

« $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 of Directors 

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 of the funds has not yet been determined. 

3 
IV. Key Technical Personnel 

Michael A. Murphy 

Title: 

Citizenship: 

Pending Actions and 

Outstanding Judgments 

(> $5,000): 

Pending Actions and 

Outstanding Judgments 

« $5,000): 

DOT IF AA Investigations: 

Charges: 

Aircraft Accidents: 

Kenneth D. Triplett 

Title: 

Citizenship: 

Pending Actions and 

Outstanding Judgments 

(> $5,000): 

Pending Actions and 

Outstanding Judgments 

« $5,000): 

DOT IF AA Investigations: 

Charges: 

Aircraft Accidents: 

lfarold ~ C7arter 

Title: 

Citizenship: 

Pending Actions and 

Outstanding Judgments 

(> $5,000): 

Pending Actions and 

Outstanding Judgments 

« $5,000): 

DOT IF AA Investigations: 

Charges: 

Aircraft Accidents: 

4 

Director of Operations 

U.S. 

None 

None 

None 

None 

None 

Director of Maintenance 

U.S. 

None 

None 

None 

None 

None 

Chief Pilot 

U.S. 

None 

None 

None 

None 

None 
Merlyn J Parret 

Title: 

Citizenship: 

Pending Actions and 

Outstanding Judgments 

(> $5,000): 

Pending Actions and 

Outstanding Judgments 

« $5,000): 

DOT IF AA Investigations: 

Charges: 

Aircraft Accidents: 

5 

Chief Inspector 

U.S. 

None 

None 

None 

None 

None 
Phone: 

A&P License #574289222 

Adult Work History 

7/97-present: Alaska Central Express, Inc. 

(air carrier, cargo & charter) 

(Anchorage, AK) 

Duties: Lead Mechanic maintaining a 

fleet that has included BE-1900C, C-207, 

and EMB 120 aircraft, RII inspector, 

maint. trainer, primary sheet metal 

specialist, fuel quality monitor, and facility 

maintenance. 

Currently acting as the Chief Inspector 

responsible for: ensuring fleet compliance 

with all regulations, data entry and 

tracking of aircraft and aircraft 

components for inspection, overhaul, or 

life limits status, training and supervision 

of the inspector work force, training of the 

other maintenance 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 of all of the 

company's calibrated tools, 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 of maintenance. 

Alaska Aircraft Sales (Anchorage, AK) 

(FBO & Repair Station) 

Performed 100hr. and annual inspections 

on general aviation aircraft. Assisted in the 

conformity inspection of a state purchased 

C-208 and the contract maint. of a state 

owned King Air. 

Ketchum Air Service (Anchorage, AK) 

(air taxi) 

100hr and annual inspections and 

general maint. on the company's fleet of 

C-206, DHC-2, and Turbine Otters. 

Markair Express (Anchorage, AK) 

(commuter) 

Majority of my tenure here was in the 

sheet metal shop rebuilding flight controls 

and performing major and minor structural 

repairs on the company's fleet of aircraft 

which at it's height was approx. 50 planes 

which included DHC-6s, DHC-7 s, 

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 of my tenure 

I was the maintenance manager for one year 

and spent another year as the maintenance 

liaison between Markair and Markair 

Express. 

Aero Twin (Anchorage, AK) 

(Repair Station) 

Was here Approx. 3 months. performing 

maintenance on general aircraft. 

2yrs attending classes at Anchorage 

Community College, working nights as a 

Janitor, and assisting my wife with our home 

based day care. 

Seair Alaska Airlines (Anchorage, Ak) 

( air charter) 

First job out of A&P school. Mainly worked 

sheet metal and structural repairs on the 

company's fleet of aircraft which consisted of 

Convair 580s, DHC-6s, Turbine Beavers, and 

several Bell helicopters. 

Robertson STOL Company (Everret, W A) 

Worked nights installing Robertson STOL Kits 

in single engine Cessnas while attending A&P 

school. 

USAF 
... . 

Crew Chief overseeing maintenance on KC135A Tankers. 

Education 

1/74 Graduated from Service High School 

(Anchorage, AK) 

78-80 South Seattle Community College A&P 

Course. 

86-87 Anchorage Community College 

Earned but did not apply for Assoc. Degree. 

5/99 Raytheon 1900 Airliner Wing NDI Course 

3/00 SkyWest EMB 120 Familiarization Course 

1/01 Pratt & Whittney PWI00 Series Line Maint. 

Course. 

10/04 Flight Safety 1900 Airliner Series Maint. 

Course. 

3/04 Raytheon 1900 Elevator Rigging Training & 

1900 Corrosion Inspection & Control 
CERTIFICATE 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 

F ederal Aviation Administration 

300 West 36th Avenue, Suite #101 

Anchorage, Alaska 99503 

Marc Luiken 

Deputy Commissioner of Aviation 

Alaska Department of Transportation & Public Facilities 

P.O. Box 112500 

Juneau, AK 99811-2500 

£ .4-." /f Jl&s-: 

Robert P. Silverberg