# A i rExcursion s SCHEDULE D SERVIC E • FLIGH T SEEIN G * CHARTER S 

### ^ P.O . Bo x 1 6 Gustavus . A K9982 6 Phone : 907-697-237 5 Fax : 907-697-237 6 April 19,201 0 r. ^ " d

— { Docke t Sectio n ,^T ^ U.S . Departmen t

o f Transportatio n ; ' 120 0 Ne w Jerse y Avenue , S E • i Washington , D C 2059 0 j -^C 3 Re ; Docke t

DOT-OST-2010-002 3 ' j § T o Who mI t

Ma y Concetn : Pleas e excus e th e dela y i n respondin g t o th e filing o f Wing s Airway s (Airways ) dated , appropriately , Apri l 1 , 2010 . W e ar e submittin g thi s answe r o n ou r ow n letterhea dan ddirectl y t o th e Docke t

Sectio n t o avoi dan y clai mtha t thi s i s no t

ou r work . Al l previousl y filed document s o n ou r

behal f i n thi s docke t

wer e fileda t

ou r directio n an dwit h prio r revie w an d approval . W e stan db y ever y wor do f ou r filings . Ai r Excursion s (Ai r

X ) ha s mad e severa l direc t claim s i n it s filings. W e asserte dtha t th e fiv e aircraf t Airway s claime dwer e "t o b e leased " b y Airway s wer e currentl y lease dt o Alask aJunea u Aeronautic s (AJA ) an dtha t th e lesse e ha dever y intentio n o f renewin g th e leases . A s show n i n th e attache dphoto s take n o n Apri l 7 , th e aircraf t continu e t o b e lease db y Alask aJunea u Aeronautic s an doperate ddail y b y the mo n thei r route s fro mJunea u Internationa l Airport . W e note dtha t

Airway s use dolde r

traffi c data , an dtha t

curren t dat ashow s th e continue ddeclin e i n traffi c i n th e tota l market . W e pointe dou t tha t th e marke t

share s assume dwer e impossibl e i n a thre e earne r

market , an dtha t

th e uni t cost s assume dwer e base do n histori c AJ A expense s whic h reflecte defficiencie s no t applicabl e t o Airways . W e documente dtha t th e assume dpassenge r an d freigh t yield s wer e appreciabl y highe r tha n thos e currentl y experience di n th e markets . W e showe dtha t

th e assume dpassenge r an doveral l loa dfactor s necessar y t o mee t Airways ' projection s wer e highe r tha n eve n AJ A experience di n it s monopol y days . Al l o f thes e point s wer e prove n true . Airway s simpl y reasserte dconfidenc e i n it s numbers . No w Airway s stridentl y claim s tha t Ai r X ha dn o wa y o f

knowin g th e fact s asserted , n o matte r ho w accurat e the y are . Th e aviatio n communit y i n Junea u i s smal l an dinter-related . Som e o f th e assertion s w e hav e mad e wer e originate db y curren t o r forme r Wing s Airway s employee s an d eve n shareholders . Th e res t wa s straightforwar danalysi s o f th e Airways ' exhibit s an d compariso n t o curren t

dat aan doperations , Th e mos t importan t

thin g i s whethe r

ou r claim s wer e accurat e an drelevan t

Clearl y the y are . On e chang e tha t

ha s occurre dbecaus e o f ou r analysi s i s tha t

Airway s no w claim s tha t it s applicatio n i s onl y "contingent " W e assum e thi s mean s tha t a s lon g a t

AJ A continue s t o operat e

z n dISZ.IZ6V10 Z «isos68ii06 i SN0isan:)X3 ai v a- u ei-to-oio? ;i

n Juneau , Airway s doe s no t inten dt o activate it s authority . Th e lates t statemen t appear s t o contradic t Airways ' previou s assertio n tha t eve n i f i t can' t hav e th e Wing s Airline s Service s (Airlin e Services ) aircraft , other aircraf t ar e available . Tha

t assertio n contradict s Airways ' origina l statement

tha t on e o f th e reason s i t

wa s applyin g for

th e certificate wa s t o assure tha t th e five Airlin e Service s Capston e equippe daircraf t woul dcontinu e i

n service . I

t i s interestin g to follo w th e evolutio n o f

Airways ' positions . Airway s claim s tha

t w e argu e wit

h ourselve s about

th e involvemen

t o f AJ A i n th e application . Ou r suspicion s were arouse dwhe n i t wa s clea r tha t Airway s assume da50 % or greater shar e o f passenger s an

dfreight , an

dextraordinaril y hig

h loa dfactor s tha

t are impossibl e i

n th e thre e carrier market . I t wa s only i

n respons e tha

t Airway s no w assert s tha

t i t i s onl y seekin g authorit

y contingent o n AJA' s exit . Befor

e Apri l 1 , th e questio n o f

whic h carrier woul dhav e th e Airlin e Service s aircraf

t availabl e t o i

t wa s open t o question . Th e lease s migh t no t hav e bee n renewe di

f AJ A ha dno t pursue da n extension , o r

i f Airlin e Services , whic h share s som e commo n ownership wit h Airways , ha

drefusedt o negotiate . We now kno w tha t th e Airlin e Service s aircraf t are no t availabl e to Airways , a s i

t ha dclaime ddirectly an

dunde r cenification . Despit e th e renewal , i

t i s stil l unclea r about whethe r an y collusiv e relationship exist s amon g Airways , Airlin e Service s an dAJA . Airway s continue s t o pursu e certification , confiden t tha t AJ A wil l eliminate it s Junea

u servic e an

dmak e th e Airlin e Servic e aircraf t available . Despite renewin g it s aircraf

t lease , AJ A doe s not

oppos e Airway' s application . Thi s i s i n star k contras t t o th e extraordinar

y effort s AJ

A mad e t o oppos e Ai

r X' s application . A s befor e Apri l 1 , th e issu e i s th e term s an

dexpectation s o f

th e leas e agreement . Wha t i s th e ter mo f th e lease ? Ar

e there contingent

condition s if

Airway s i s certificated ? Wha t forgiveness' s o

r eve n reward s ar

e availabl e t o AJ

A i f i t surrender s th e aircraf

t t o Airway s ahea

do f th e expir y date o f th e lease ? W e hav e shown tha

t Wing s Airlin e Service s i s relate dt o Wing s Airways , an di s th e leaser

o f th e five aircraf

t Airway s propose s t o use . The Departmen t shoul dreques t

th e current

leas e between Airlin e Service s an

dAJ A t o determin e th e actua

l relationship an

dcondition s affecting th e certificatio n o f

Airway s Al l of th e argument

about th e rhetorica

l differenc e between aircraf t possessio n an

dcontro l an

d availability , o r

ho w Ai r X coul dno t

possibly hav e known or

suspecte dwha

t wa s goin g o

n wit h th e aircraf t lease s i s puffery . Th e proo f o f th e puddin g i s tha

t th e Ai r X assertion s are true , The aircraf t Airway s propose s t o us e are no t available , an

dth e market

an dfinancial condition s assume db y Airway s do no t

reflect current reality , Airway s appear s t o acknowledg e tha t i t canno t surviv e i n athre e carrier

marke t b y no w claimin g it s applicatio n i s "contingenf, Department

regulation s d o not

allo w fo r "contingent " certification . Eithe r acarrier i s fit, willin g andabl e t o perform , o r

i t i s not . Wing s Airway s i s not . CCRTTFICATIO N Th e content s o f

thi s applicatio n an

dth e attache dexhibit s are tru e an dcorrec t t o th e bes t

o f m y knowledg e andbelie f

Pursuant

t o titl e 18 , Unite dState s Code sectio n 1001,1 , i n m y individua

l capacit y an da s the authorize drepresentativ e o f th e applicant , hav e no t

i n an y manne r knowingly andwillfull

y falsified , conceale do r

faile dt o disclos e an

y materia l fac t or mad e an y false , fictitious , o r

fraudulen t statement

o r knowingly use dan

y document s whic

h contai n suc

h

zi L diSKEetjo c «i50S68ii06 i SNOisyn3X 3 ai v 8j: u ei-w-oio sstatement s i n connectio n wit

h th e preparation , filing or prosecutio n o f

th e application . 1 understan dtha

t a n individua

l wh o i s foun

dt o hav e violate dth e provision s o f 1 8 U.S. C sectio n 100 1 shal l b e finedno

t mor e tha n $10,00 0 or

imprisone dno t

mor e tha n five years , o r

both . Respectfijll y submitted .
Ai^^Excursiofn; , KL C B vMichae l Lovcrink , it s Owne r

Thi s photograp h wa

s take n o n Apri l 7 o f th e tw o Alask a Junea u Aeronautic s Cessn a Carava n aircraf t wit h tw o AJ A Cessn a 207' s (blu e paint ) behin d o n th e AJ A assigne d ram p area a t Junea u Internationa l Airpor t

£/ £ d iszize^io z « iaOS68ii06 l SNOisanDx a ai v 8£: u ei-TO-oio e