U.S. Department of Transportation Office of the Secretary otTransportation
Mr. Robert J. Fell Maritime Helicopters 3520 f'.A.A. Road Homer, Alaska 99603 Dear Mr. Fell: Assistant Socrotary**~1a**r c h 1 9 , 20 12 .. :·. · : · ')**:~.** ! '

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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 finding that VIH Cougar is not a U.S. citizen 

### as defined in 49 U.S.C. 

### § 40102(a)(l5) 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 tindings. 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) website. which is http://wv
.. w.regulations.gov. Finally, since this matter is pending, I am unable to comment on the merits ofVIH 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 normal practice, l am placing a copy ofyour letter and this response in Docket DOT-OST-2012-0022 as a contact outside the record ofthis matter. I appreciate your interest in this proceeding.



### . )(1-120315-003 Sincerely yours,

Susan L. Kurland Assistant Secretary for Aviation and International Affairs

# maritime Helicopters February 13, 2012
Ms. Susan Kurland Assistant Secretary ofTransportation for Aviation & International Affairs United States Department ofTransportation 1200NewJersey Avenue, SE Washington, DC 20590 Via email to susan.kurland(cV,dot.gov; susan.l.kurland@.dot.gov; faacla{dot.gov 

### SUBJECT: VIH Cougar Helicopters, Inc. I 

### Foreign Operators Competingwith Americans Dear Secretary Kurland: Petroleum Helicopters, Inc (PHI) challenged the operations ofVIH Cougar Helicopters, 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 in this letter. 

### In yourOctober 6, 2011 letterto counsel for VIH CougarHelicopters, Inc, (VIH Cougar) concerning their status as a Part298 Air

### Taxi Operator you cited "overwhelming evidence" that VIH Cougar is 

### not in compliance with the requirements ofthe Federal Aviation Act thatcertificated airline operators be citizens ofthe United States. US air carriers have long maintained and you fmally concludedthat although VIH Cougar theoretically complies with the numerical ownership requirements ofthe statute, it is not under the actual control ofcitizens ofthe United States. You note four reasons, including: • the agency relationship ofMr. Steeperby Mr. Nourie, • the provision oftechnical and operational services and equipmentby the VIH Group to VIH Cougar, • contractual relationships among the VIH Group and VIH Cougar, and, • tellingly, information discrepancies provided to the Department. Additionally, VIH Cougarofficials have made public statements revealing that company's Canadian ties. 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 compete unfairly with U.S certificated operators. VIH Cougar has been the beneficiary ofits illegal relationship with the VIH Group at the expense ofU.S. companies. Since October 6, 2011, VIH has continued to do business without any apparent change. 

### ffanything, it is now incentivized to seek additional market share as part ofwhateverrestructuring it may offerto the Department.

'r 

### X1-120315.CJQ3 3520 FAA Road. Homer. Alaska 99603 Phone (907) 235-7771 • FAX (907) 235-7773 www.maritimehelicopters .com

### 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 remains in control ofVIH Cougar almost three months afterthe 30-day deadline for compliance included in yourOctober6, 20111etter, we respectfully request thatimmediate action betaken to bring an end to this illegal situation. We urge the Departmentto move quickly and openly to end this situation,which has gone on for severalyears. VIH Cougarshould notbe allowed to continue to engagein unlawful competition that disadvantages U.S. citizen operators as itdelays compliancewith U.S. law to maximize 

### its ill-gotten gains. VIH Cougar should notbe allowedto continue to operate in the United States unless it has metthe requirements ofthe Federal Aviation Act that certificated airline operators be citizens ofthe United States. TheDepartment's recent Notice ofProposed Policy Clarification for the Registration of Aircraftto U.S. Citizen Trustees in SituationsInvolvingNon-U.S. Citizen Trustors and Beneficiaries, Federal RegisterFeb 9, 2012 indicates the serious concern the Department is showing with regard to assuring close regulatory oversight ofU.S. registered aircraft and operations. Likewise, in this matter, the operator has persistently evaded statutory requirements for actual citizen control. Just as the Departmentis taking action to assure that regulatory oversight on leased US registered aircraftis notavoided through complex ownership instruments, the Department should move to quickly close down VIH Cougar's evasion ofthe statute. We believe that there is no public policy that can be served any longer by shielding VIH Cougar's citizenship status from the public. Having made the preliminary findings based on "overwhelming evidence," we respectfully request thatthe Department bringtransparency to any further proceedings in this matter. The Department's informal proceedings may have public policy benefits 

### in enabling operators to arrange their citizenship affairs privately when they are seeking to comply with the law, but that does not apply in 

### this case. Here, VIH Cougar circumvented the law in a calculated manner and did not merely seekto ascertain the limits of the citizenship requirements. Instead, it established, and long operated under, an egregious scheme which violated the citizenship requirements and engaged in deception to do so.**'~.**

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### As U.S. citizens, we are entitled to transparency and open government in 

### matters of regulatory compliance. Any efforts by the Departmentto ensure that VIH Cougardivests and restructures should be open, transparent and public. Respectfully,

Robert 

### J. Fell Director ofOperations Maritime Helicopters Cc: 

### Ray LaHood, Secretary ofTransportation via email to robert.letteney@dot.gov Representative Don Young, via email to scott.leathard@mail.house.gov SenatorLisa Murkowski, via email to warren.wright(@,murkowski.senate.gov Senator Mark Begich, via email to james feldman@begich.senate
.gov Governor Sean Parnell, via email to randall.ruaro@alaska.gov; russ.kelly@alaska.gov

t:

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