U.S. Department of 

Transportation 

Office of the Secretary 

of Transportation 

August 11, 2014 

Mr. Aaron A. Goerlich 

Counsel for Aerodynamics Incorporated 

Garofalo Goerlich Hainbach PC 

1200 New Hampshire Ave. NW 

Washington, DC 20036 

RE: Dockets DOT -OST-2014-0114 

Application of Aerodynamics Incorporated 

; ~; 

; . ' (;: 

1200 New Jersey Avenue SE 

Washington DC 20590 

for a Certificate of Public Convenience and Necessity to engage in interstate scheduled air 

transportation of persons, property, and mail 

Dear Mr. Goerlich: 

Thank you for the information you have provided on behalf of Aerodynamics Incorporated 

("ADI"), for the determination of its fitness to operate interstate scheduled air transportation. 

We have determined that we will need additional and/or clarifying information before we may 

complete our review. I ask that you respond fully to our request within 30 days of the date of 

this letter. 

As is the Department's practice, further processing of ADI's application will be deferred pending 

receipt of this information. In addition, please remember that ADI should promptly provide the 

Department with any information regarding changes it may undergo in areas affecting its fitness 

(i.e., management, operating plans or financial condition, compliance disposition, or ownership) 

while its application is under review by the Department. 

As you are aware, it is the Department's practice to determine an applicant's financial fitness in 

order to ensure it will have access to resources sufficient to commence operations without posing 

an undue risk to consumers. This financial fitness test is based on the level of funds required to 

cover the applicant's pre-operating costs for the proposed operations, and to provide the 

company with a working capital reserve equal to one-quarter of its operating expenses for the 

first year of the proposed operations. In addition, if the applicant's most recent balance sheet 

shows a negative working capital balance for any ongoing operations, the amount of that 

working capital deficit will be considered a pre-operating expense in calculating the amount of 

funds that the applicant must have available to meet the financial fitness criteria for the proposed 

operations. Moreover, the company must demonstrate it has obtained all of the funding needed 

to meet our financial fitness test, or at a minimum, have a reasonable plan for doing so. 

Based on our review of the pre-operating and first-year expense forecasts and the financial 

statements submitted, we calculate that ADI will need approximately $1.198 million to meet our 
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financial fitness test. The $1.198 million consists of $119,882 in pre-operating expenses, plus 

about $1.04 million, which is one fourth of its first year expenses, plus $36,385 in negative 

working capital. 

In support of its financial fitness, ADI provided, among other things, the following items: 

(1) Bank statements from JP Morgan Chase Bank and First Niagara Bank1 dated March 

31, 2014, showing that the air carrier has about $650,000 on deposit in its name. 

(2) A letter from Western Reserve Port Authority, Youngstown-Warren Regional 

Airport, stating that financial support for the establishment and continuation of ADI's 

service will be provided by the Youngstown Parties, specifically, revenue guarantees 

totaling $1.2 million. 

We have reviewed the information submitted and find that ADI must provide additional 

information to support its ability to meet our financial fitness test. 

While the bank statements show the amount of cash ADI has on deposit in its name, we are 

unable to consider these deposits as sources of capital since we accounted for the air carrier's 

cash balance when calculating its working capital position. 

Concerning the $1.2 million revenue guarantee, we are unable to consider this revenue guarantee 

as a source of capital to support ADI's proposed scheduled operations. Should the air carrier 

wish for us to consider the financial support valued at $1.2 million from the Youngstown Parties, 

AD I should then provide us with a statement from the Youngstown Parties of the amount of such 

available resources and the terms and conditions under which such funds will be provided. 

Copies of the financial statements ofthe individual(s) or organization(s) should also be provided. 

Such documentation should clearly establish the capability of the individual(s) or organization(s) 

to fulfill any financial commitment made to or on behalf of the applicant. In this connection, the 

liquidity of any assets, other than cash, contained in these documents should be made clear 

through appropriate footnotes (e.g., the current market value of stocks and bonds that can be 

readily converted to cash should be noted). Third-party verification of the assets and values 

should be provided (e.g., letters from banks or stockbrokers holding liquid assets, or recent 

appraisals of real assets). 

The original plus 3 copies of your response should be mailed to U.S. Department of 

Transportation, Docket Operations (M-30, Room W12-140), 1200 New Jersey Avenue, S.E., 

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

The information provided pursuant to this Information Request should be accompanied by the 

following certification: 

As a point of clarification, it is our understanding that the cash balance reported in ADI's First Niagara Bank 

account is being held in escrow until a charter flight or flights has been completed. Should ADI wish for us to 

consider its escrow account balance, it must provide information (flights and dates) and the corresponding dollar 

amount attributable only to those completed flights. 
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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. 

If you have any questions regarding this letter or the requested information, please contact me at 

202-366-9721 or via email at Catherine.O'Toole@dot.gov. 

Sincerely, 

Laural J. Remo 

Chief,,~ir Carrier Fitness Division 

Office of Aviation Analysis 

cc: Docket DOT-OST-2014-0114 

Mr. Bruce Clamp, POI 

FAA Atlanta FSDO