U.S. Department of Transportation Office of the Secretory of Transportation 

### Mr. Stephen J. 

### Kapper Security A viation 6121 South Airpark Place Anchorage, Alaska 99502 Dear Mr. Kapper: Assistant Secretary

-_ -·' - -

• 1**~!arch** 19, 2012 1200 New Jersey A"Wenue. SE

'.'/ashmgton

. DC 20590



### Thank you for your letter concerning the U.S. Department ofTransportation's (Department) citizenship investigation ofVIH Cougar Helicopters, Inc. (VIH Cougar). On March 12, 2012, the Department issued Order 2012-3-7 tentatively tinding that YIH Cougar is not a U.S. citizen as defined in 49 U.S.C. § 

### 401 02(a)( 15) and proposing to cancel its air taxi authority. Interested parties are provided 21 days from the date ofits issuance to file objections to the Department's tentative lindings. Access to the docket is available by entering the docket number. DOT-OST-2012-0022. into the simple search function at the Department's Docket Management System (OMS) \Vebsite, which is http://w\vw
.regulations.gov. Finally, since this matter is pending, I am unable to comment on the merits ofYIH Cougar's submissions
. I assure you, however, that the Department will give full consideration to all comments on the record in the docket. As is our nonnal practice. I am placing a copy ofyour letter and this response in Docket DOT-OST-20 12-0022 as a contact outside the record ofthis matter. I appreciate your interest in this proceeding.**~** 

### X1-120315-002 

### Susan L. Kurland Assistant Secretary for Aviation and International Affairs

# SECURITY~'AVIATION 6121 South Airpark Place • Anchorage, Alaska 99502 • (907) 248-26n • Fax (907) 248-6911 www.securityaviatlon.biz email: accountlng@securityaviation.biz Ms. SusanKurland Assistant Secretary ofTransportation for Aviation & International Affairs United States Department ofTransportation 1200 NewJersey Avenue, SE Washington, DC 20590 Via email to susan.kurland@dot.gov; susan.l,kurland@dot.gov; faac@dot.gov SUBJECI': VIHCougar Helicopters, Inc. 

### I Foreign Operators Competingwith Americans Dear Secretary Kurland: Petroleum Helicopters, Inc (PHI) challengedthe operations ofVIH CougarHelicopters, Inc. 

### (VIH Cougar) 

### in the United States (Alaska, the West Coast, and the GulfofMexico). As a certificated 

### air carrier I concur with the sentiments expressed inthis letter. 

### Inyour October6,2011 letter to counselfor 

### Vlli CougarHelicopters, Inc, 

### (VIH Cougar) concerning theirstatus as a 

### Part298 Air

### Taxi Operator you cited "overwhelming evidence" that VIII Cougar is not 

### in compliancewith the requirements ofthe FederalAviation Act that certificated airline operators be citizens ofthe United States. {JS air carriers have long maintained and you finally concluded that although VIH Cougar theoretically complies with the numerical ownership requirements ofthe statute, it is not underthe actual control ofcitizens ofthe United States. You note four reasons, including: • the agency relationship of

### Mr. Steeperby

### Mr. Nourie, • the provision of

### technical and operational services and equipment by the VIH Group to 

### Vlli Cougar, • contractual relationships among the VIH Group andVIH Cougar, and, • tellingly, information discrepancies provided to the Department Additionally, VIH Cougar officials have made public statements revealing that company's Canadianties. Each one ofthese alone would be grounds for a finding on non-compliance, but together they show a premeditated and willful lack ofcompliance disposition as well as noncitizenship. During the entire period ofthis investigation VIH Cougar

### has continued to competeunfairly with U.S certificated operators. 

### Vlli Cougar

### has beenthe beneficiary ofits illegal relationship with the VIH Group at the expense ofU.S. companies. Since October 6, 2011, VIH has continuedto do business without any apparent change. Ifanything, it is nowincentivized to seek additional market share as part ofwhatever restructuring it may offer to the Department. While US certificated operators appreciates the Department's very thorough review ofthe allegations against VIH Cougar, we believe that the time 

### has come to stop VIH Cougar's, and other foreign entities, lengthy history offlaunting the citizenship requirements and competing unfairly against U.S. citizen operators. As the VIH Group remams in control of

### Vlli Cougar almost



### X1-120315·002three months afterthe 30-day deadline for compliance included in your October 6, 2011 letter, we respectfully request that immediate action be taken to bring an end to 

### this illegal situation. Weurge the Departmentto move quickly and openly to end this situation,which has gone on for several years. 

# vm Cougar should not be allowed to continue to engage in unlawful

. competition that disadvantages U.S. citizen operators as 

### it delays compliancewith U.S. law to

maximize its ill-gotten gains. VIH Cougar should not be allowed to continue to operate 

### in the United States unless 

### it has met therequirements ofthe Federal Aviation Actthatcertificated airline operators 

### be citizens ofthe United States. The Department's recent Notice ofProposed Policy Clarification for the Registration of
· Aircraft to U.S. Citizen Trustees in Situations Involving Non-U.S. Citizen Truston and

Beneficiaries, Federal Register Feb 9, 2012 indicates the serious concern the Department is showingwith regard to assuring close regulatory oversight ofU.S. registered aircraft and

. operations. Likewise, 

### in this matter, the operatorhas persistently evaded statutory requirements for actual citizen control. Just as the Department 

### is taking action to assure that regulatory oversight on leased US registered aircraft 

### is not avoided through complex ownership instruments, the Department should move to quickly close down

## vm Cougar's evasion ofthe statute. We believe thatthere is no publicpolicy that canbe served any longer by shielding VIH Cougar's citizenship 

### status from the public. Havingmade the preliminary findings based on "overwhelming evidence," werespectfully request thatthe Departmentbring transparency to any further proceedings in this matter. The Department's informal proceedings may have public policy benefits 

### inenabling operators to arrange their citizenship affairs privately when they are seekingto comply with the law, butthat does not apply 

### in this case. Here, VIH Cougar circumvented the law 

### in a calculated manner and did not merely seek to ascertain the limits ofthe citizenship requirements. Instead, itestablished, and long operated under, an egregious scheme which violated the citizenship requirements and engaged 

### in deception to do so. As U.S. citizens, we are entitled to transparency and open government in matters of regulatory compliance. Any efforts bytheDepartment to ensure that 

### VIH Cougar divests and
· restructures should be open, transparent and pubUc.

# ;~ly,·~~ 

# . StepjKapper President/CEO Security Aviation Cc:· Ray**LaHoo~** Secretary ofTransportation via email to robert.letteney@dot.gov Representative Don Young, via email to scott.leathard@mail.house.gov Senator Lisa Murkowski, via email to warren.wright@murkowski.senate.gov Senator Mark Begich, via email to jam.es feldman@begich.senate.gov Governor Sean Parnell, via email to randall.ruaro@alaska.gov; russ.kelly@alaska.gov



### X1.120315-002 

## SECURITY AVIATION 6121 South Airpark Place Anchorage, Alaska 99502 (907) 248-2677 I Alaska Only (800) 478-7880 I FAX (907) 248-6911