U.S. Department of 

Transportation 

Office of the Secretary 

Of Transportation 

August 31, 2012 

Mr. Ted Vallas 

Vice President-Administration 

Carlsbad-Palomar Airlines, Inc. 

d/b/a California Pacific Airlines 

5670 El Camino Real, Suite D 

Carlsbad, CA 92008 

Dear Mr. Vallas: 

'1200 New Jersey Ave., S.E. 

Washington, DC 20590 

Re: Docket DOT-OST-2010-0126, Application of 

Carlsbad-Palomar Airlines, Inc. d/b/a California 

Pacific Airlines for certificates of public convenience 

and necessity 

We have completed our initial review information filed by Carlsbad-Palomar Airlines, Inc. 

d/b/a California Pacific Airlines ("CP Air") on.August 7, 2012, in support of its request for 

a waiver from section 204.7 of our rules (14 CFR 204.7). 

This review has revealed the need for additional and/or clarifying information before we 

can complete our review of CP Air's request. The attached Information Request lists the 

areas where further and/or clarification information is necessary. I ask that you respond 

fully to this request within 14 days of the date of this letter. Your response should be 

mailed to U.S. Department of Transportation, Docket Operations, (M-30, Room Wl2-

140), 1200 New Jersey Avenue, S.E., West Building Ground Floor, Washington, D.C. 

20590, or you may electronically file your response at www.regulations.gov. 

If you have any questions regarding this letter or the requested information, please feel free 

to contact me at (202) 366-9721. 

;:!JL 

Damon Walker 

Analyst, Air Carrier Fitness Division 
2 

Enclosure 

cc: Docket DOT-OST-2010-0126 
INFORMATION REQUEST 

CARLSBAD-PALOMAR AIRLINES, INC. 

D/B/A CALIFORNIA PACIFIC AIRLINES 

1. Please describe the status and, if relevant, the results of CP Air's private placement. 

2. As you know, in order to be found fit to conduct commuter operations CP Air must 

provide evidence that it has access to funds equal to or in excess of one-quarter of its 

first-year operating expenses plus any remaining pre-operating expenses and any 

negative working capital. Based on the information CP Air provided in its August ih 

request for a waiver it appears that CP Air would need to provide evidence that it has 

access to $11.6 million, which is one-quarter of its first-year operating expenses ($7.0 

million) plus its remaining pre-operating expenses ($4.6). Therefore, please provide 

evidence that CP Air has access to $11.6 million in funding and/or describe CP Air's 

plans to raise additional capital. 

3. The letter-of-credit that CP Air provided in its August ih request for a waiver does 

not disclose the terms of repayment or if any conditions must be met before funds 

will be advance. Please provide the terms of repayment and disclose any 

preconditions to funding. 

4. Messrs. Robert Hembury, Paul Hook, and Dean Sinerius' resumes indicate that each 

hold additional employment positions with other companies in addition to holding 

their positions at CP Air. If Messrs. Hembury, Hook, and Sinerius, have since 

resigned from their other positions of employment please note the date of resignation. 

If they have not resigned, please indicate if they intend to resign once CP Air begins 

revenue operations or if they intend to remain dually employed. 

5. Provide a detailed description of each class or series of stock issued. Such 

description should include: the number of shares outstanding by class or series, 

convertibility into other classes or series of stock, representation on the board of 

directors, voting rights, entitlement to dividend, consequences of failure to pay such 

dividends, and liquidation preferences. 

The information provided pursuant to this Information Request should be 

accompanied by the following certification: 

The contents of this application and the attached exhibit (s) are true and correct to 

the best of my knowledge and belief. Pursuant to Title 18 United States Code 

Section 1001, I [the individual signing the application, who shall be a principal 

owner, senior officer, or internal counsel of the applicant], in my individual 

capacity and as the authorized representative of the applicant, have not in any 

manner knowingly and willfully falsified, concealed or failed to disclose any 

material fact or made any false, fictitious, or fraudulent statement or knowingly 

used any documents which contain such statements in connection with the 

preparation, filing or prosecution of the application. I understand that an 

individual who is found to have violated the provisions of 18 U.S.C section 1001 

shall be fined or imprisoned not more than five years, or both.