LAW OFFICE OF JOHN MIETUS, LLC

6701 DEMOCRACY BOULEVARD, SUITE 300

BETHESDA, MD 20817-7500

JOHN R. MIETUS, JR. 

(202) 747-5212

john@mietuslaw.com

October 27, 2014

BY ELECTRONIC MAIL

Ms. Catherine O’Toole

Air Carrier Fitness Division

Department of Transportation

1200 New Jersey Avenue, SE

Washington, DC 20590

Re: Eastern Air Lines Group, Inc., Dockets OST-2014-0012/0013 

Dear Ms. O’Toole:

 

By letter dated October 9, 2014, you requested that Eastern Air Lines Group, 

Inc. (“Eastern”) provide certain additional information relating to the abovecaptioned applications. Eastern’s responses follow. 

Ownership 

Individuals holding actual or beneficial interests as PPO Stockholders, and 

individuals or entities holding actual or beneficial interests in ACPG LLC, 1848 

Skyworks LLC (in turn owned by 1848 Aviation Partners and 1848 Blueco), and 

Pitcairn Aviation LLC, are listed in Confidential Exhibit J, filed under seal together 

with a request for confidential treatment. (Persons and entities holding 10% or 

more of each entity have already been identified in prior, public filings.) Eastern 

does not have beneficial ownership information for entity shareholders in 1848 

Blueco not directly affiliated with 1848 Capital Partners. For those shareholders, 

an individual investment contact and address are shown.

Financial Position

A balance sheet and an updated start-up cost reconciliation (in lieu of an income 

statement) as of September 30, 2014 are attached as Exhibit 16. 

As requested by the Department, Eastern is resubmitting as Exhibit 17 the line of 

credit made available to Eastern by VV-DC Eastern Investments, LLC and third-

Eastern Air Lines Group, Inc.

Balance Sheet - September 30, 2014

Current assets;

 Cash on hand $ 9,886,509

 Restricted cash )deposits)

 Restricted cash (credit card holdback)

 Prepaid expenses 7,835

 Total current assets 9,894,344

Fixed assets 127,626

Aircraft deposits 295,000

Intangible assets - trademark 654,287

Capitalized financing costs 1,129,255

Total assets $ 12,100,512

Current liabilities;

 Accounts payable $ 138,013

 Accrued expenses 15,000

 Unearned passenger revenue

 Total current liabilities 153,013

Debt;

 Senior

 Subordinated

 Total debt 0

Total liabilities 153,013

Equity;

 Stock 14,172,841

 Start-up losses to date (including 2013 and prior) (2,225,342)

 Total equity 11,947,499

Total liabilties and equity $ 12,100,512

Eastern Air Lines

Exhibit 16

(3 pages)
Start Up Costs Actual

March April May June July August September Total 9/30/2014

Corporate

Staff 1 1 3 5 9 11 15

Personnel Salaries

CEO 1 15000 15000 0 0 15,000 15,000 15,000 15,000 15,000 75,000

Flight Operations

VP-Flight Ops / Director of Ops 1 12500 12500 10,000 10,000 10,000 10,000 40,000

Chief Pilot 1 9166 9166 4,583 9,166 9,166 22,915

Director of Safety 1 8500 8500 8,500 8,500 8,500 25,500

Director - In Flight 1 5500 7500 7,500 7,500 7,500 22,500

Director -SOC (System Control) 1 7500 7500 7,500 7,500

Flight Dispatch 1 3500 3500 0

Maintenance

VP- Tech Ops and Dir of Maintenance 1 12500 12500 10,000 10,000 10,000 10,000 10,000 50,000

Chief Inspector 1 7500 7500 7,500 7,500 7,500 22,500

Manager - Maintenance Control 1 7000 7000 7,000 7,000

CASS QA Audit 1 4500 4500 0

Marketing 1 12500 12500 4,000 4,000 4,000 4,000 4,000 20,000

1 5000 5000 0

Station Operations 1 8500 8500 8,500 8,500

1 5000 5000 0

CFO 1 10000 10000 12,500 12,500 12,500 12,500 50,000

Controller 1 5000 5000 0

IT Systems (CCIT) 1 10000 12500 5,000 5,000 10,000

1 4000 10000 0

HR/Administration 1 8500 8500 7,500 7,500 15,000

2 5000 5000 5,000 5,000

22 100% 177166 0 0 29,000 51,500 79,583 96,666 124,666 381,415

Payroll taxes @ 10% 7,958 9,667 12,467 30,092

Benefits at $1k pp 9,000 11,000 15,000 35,000

0 0 29,000 51,500 96,541 117,333 152,133 446,507 434,859

CORPORATE (Detail in Corporate Sheet)

Expenses 0 0 15,109 17,446 18,629 18,849 19,481 89,513 95,360

Rent 2,060 2,060 2,060 2,060 5,618 5,618 9,363 28,837 14,506

IT Software 0 0 5,000 10,000 10,000 10,000 10,000 45,000 50,335

Travel 0 5,000 5,000 10,000 10,000 15,000 15,000 60,000 150,226

Directors & Officers Insurance 0 11,000 6,000 6,000 6,000 6,000 6,000 41,000 39,542

Eastern Brand Development and Sponsorships 0 150,000 25,000 25,000 25,000 25,000 25,000 275,000 272,073

2,060 168,060 58,168 70,506 75,246 80,466 84,844 539,349 622,042

Total Corporate and Salaries 2,060 168,060 87,168 122,006 171,787 197,799 236,976 985,856 1,056,901

Legal 25,000 0 15,000 15,000 15,000 10,000 10,000 10,000 75,000 180,718

HR Consultants 20,000 20,000 20,000 20,000 20,000 100,000 60,400

DOT Consultants 0 82,500 82,500 75,000 75,000 75,000 75,000 465,000 501,144

0 97,500 117,500 110,000 105,000 105,000 105,000 640,000 742,262

Flight Ops. Training Salaries (Excl Benefits)

Check Airmen 3 8500 25,500 0

Captains 7 7000 49,000 0

F/Os 0 7000 0 0

F/As 20 2200 44,000 0

Sked/Dispatch 2 4000 8,000 0

2014 Start Up Cost Budget
Maintanance 2 4000 8,000 0

34 100.0% 134,500

Payroll taxes (@10%) 0 0 0 0 0 0 0 0

Benefits (@$!k pp) 0 0

0 0 0 0 0 0 0 0 0

Flight Operations Training Pilot F/A

Training : Ground & Simulator 200000 25000 0

Training Flights 45 4000 0

Training: Maintenance 0

Aircraft Lease 250000 0

Aircraft Insurance - Hull 32000000 160000 160000 0

Liability Insurance 162 1360 220320 0

0 0 0 0 0 0 0 0 0

Total Expenses 2,060 265,560 204,668 232,006 276,787 302,799 341,976 1,625,856 1,799,163

Aircraft Deposits 3 months 220000 250,000 250,000 500,000 295,000

Other Deposits and Capital Expenditures 25,000 25,000 25,000 75,000 77,291

TOTAL DEPOSITS 0 0 0 0 275,000 275,000 25,000 575,000 372,291

TOTAL EXPENSES & DEPOSITS 2,060 265,560 204,668 232,006 551,787 577,799 366,976 2,200,856 2,171,454


Daniel Stone

Executive Summary

Aviation executive whom worked in the airline and MRO venues. Held Senior positions 

such as Executive Vice President, Chief Operating Officer, Vice President of Maintenance 

and Engineering, Director, Fleet Reliability Manager. Leadership positions with companies 

such as EADS, Kitty Hawk Air Cargo, Air Jamaica, Fairchild Dornier, Northwest Airlines

and Rocky Stone Consulting (RSC) INC. 

EDUCATION

Bachelor of Science in Business Administration, Columbia Southern University

“Lean MRO Management” University of Tennessee

LICENSES

FAA, Airframe and Power Plant License 

“I.C.A.O. ” Aircraft Maintenance Engineer’s License, 

Eastern Air Lines

 Vice President-Director of Maintenance March 3, 2014-Present

RSC Inc. 2006-2014

Consulting services for third party MRO large aircraft, Airlines and Aircraft Leasing 

Companies. Projects included creation of General Engineering Maintenance Manual, 

Quality manuals and advisement in obtaining Airline Operating Certificate (AOC) for start

up International airline. Direction to MRO Company in expanding their third party Line

Maintenance business and developing processes to control cost at their Heavy 

Maintenance division. Evaluations for lease returns, maintenance program development, 

managing heavy checks, performed surveys for potential equipment purchases. Project 

Management of: Passenger to Cargo Door Conversions, Damage Restoration, Interior 

Upgrade projects. Partial list of Cliental: ASL Leasing, Safair Airlines, Certified Aviation 

Services, Jet Lease, Aurora Leasing, Trans Caribbean Airlines, RPK Leasing, Delta 

Airlines, GO GO, Top Tech Aviation, Air Canada Airlines, Aircraft Information 

Management and Southwest Airlines. 

EADS, Airframe Services, USA

Executive Vice President and Chief Operating Officer 2004-2006

Responsible for the direct management and administration of an airframe MRO 

maintenance facility. Lead a staff of three hundred plus work force, with focus on 

quality, turn around time and P & L responsibility. 

Kitty Hawk Air Cargo Inc.

Vice President Maintenance an Engineering 2003-2004

Company’s Chief Aircraft Maintenance Officer responsible for the direct management and 

administration of all aircraft maintenance activities related to the Kitty Hawk Airline fleet. 

1 

Eastern Air Lines

Exhibit 18

(8 pages)
Functions included: oversight of Engines, Line Maintenance, Planning, Engineering, 

Purchasing, Stores and contract negotiations for heavy maintenance of airframe and 

engine work scopes. 

Air Jamaica Airline, Jamaica W. I. 2001-2003

Vice President Technical Services

Leader of this Caribbean airline maintenance organization with operating budget of $80M 

dollars and 400 related employees. Activities include aircraft operations, line 

maintenance and engineering, out-sourcing of heavy maintenance checks, contract 

negotiations, and facilities maintenance system wide.

Fairchild Dornier Aerospace, San Antonio, TX 1999-2001

Vice President Fairchild Aerospace, Maintenance and Field Support

Recruited to this privately owned regional jet manufacturer, as Vice President 

Maintenance and Field Support, to provide technical and commercial assistance to 

Fairchild Dornier aircraft customers. Lead teams from eight countries, with a budget in 

excess of $16 million dollars with major operations in Germany, China, and MRO

operation in the USA.

Northwest Airlines 1989-1999

Director, Aircraft Line Maintenance

Director of Northwest Airlines’ Memphis hub, with 130 maintenance employees. 

 Responsible for maintaining an operation to support 125 daily flights.

 Improved Memphis performance and became the No. 1 on-time hub operation.

 Won the NWA 1998/1999 Maintenance Station of the Year Award.

Fleet Reliability Manager

Responsible for MD 80/DC9 fleet reliability, identifying and prioritizing fleet reliability 

issues that impacted on-time performance, completion factor, air turn backs and reduced 

maintenance cost. 

 Initiated required maintenance program changes, managed changes in processes

and procedures for engines, components, engineering and line maintenance 

organizations. 

 Made recommendations to Senior Management, along with presentations to the

Reliability Control Board for enhancements of fleet performance. 

Program Manager, Aircraft Commissioning 

Managed the operational program to standardize the purchase of used aircraft to be 

integrated into the Northwest fleet. This program involved management of NWA teams

and engineering in five separate MRO modification centers throughout the U.S. and 

Canada to produce production results to meet an aggressive schedule. Schedule was 

completed in established time frame and finishing under proposed budget.

2 
LEAD PROJECT MANAGER (1992-1994)

Managed the integration of twenty-one used aircraft into the Northwest fleet within site budget. 

 Partnered with vendors to enhance relationships improving the quality of work. 

 Coordinated vendor training to ensure vendor met or exceeded Northwest Airlines 

policies, procedures and standards. 

Aircraft Technician (1989-1992)

Eastern Airlines 1968-1989

Lead Aircraft Mechanic (1985-1989)

Aircraft Technician (1968-1985) 

. 

3 
JAMES R. TOLZIEN

PROFESSIONAL EXPERIENCE

Eastern Air Lines, Miami, Florida June 30, 2014-Present

Chief Financial Officer (2014-Present)

Sunbelt Diversified Enterprises, LLC, Miami, Florida 2007 - Present

$50 million private equity backed holding company specializing in acquiring, growing, and 

professionalizing small businesses in the Southeast 

Operating Partner/CEO (2007-Present)

 Directly managed all aspects of the company, including portfolio performance, lender 

relationships and compliance, investor communications, and financial reporting 

 Provided hands-on management of operating subsidiaries through portfolio-level CEOs, 

developed financial reporting processes to supplement corporate governance guidelines

 Led two debt restructuring projects, including negotiations and analysis, documentation 

and implementation, and follow-up communications with lenders and investors 

 Supervised business development program which incorporated all leads on new 

investments, prospective lenders, and potential deal flow 

 Directed all acquisition activities inside the portfolio, including negotiations, investor 

communication and approval, due diligence, and operational integration 

Around The World Travel, Inc. (d/b/a TraveLeaders), Coral Gables, Florida 2000 – 2007 

$300 million corporate travel management company with 40 offices and 400 employees in 10 

states, providing full service travel consultation to large corporations including personal and online reservation services, policy implementation and enforcement, vendor negotiations and 

special services, and real time monitoring and reporting. 

 

President (2003-2007) 

 Turned $2.5 million loss into $2 million profit in two years 

 Closed 7 offices and consolidated non-revenue-generating functionality, eliminated two 

layers of management, installed local management cost controls and reporting processes

 Revitalized sales and new account implementation functions, doubling new client sales 

and cutting implementation time by 30% 

 Implemented incremental revenue streams, driving per transaction revenue up by 10% 

 Reorganized traveler service processes, including quality surveys and focus groups, 

resulting in 15% improvement in satisfaction ratings

Chief Financial Officer (2000-2003)

 Led acquisition negotiation, due diligence and post-close integration of 20 small to 

medium sized companies in 14 months 

 Totally revamped senior management team from inherited former owners to functional 

experts in the industry 

 Consolidated a wide variety of legacy computer systems, including all management and 

financial information reports and controls, converted to state-of-the-art system

 Directed post “9/11” cost reductions, closing 8 offices and reducing staff by 35% in less 

than 30 days 

 Re-negotiated $40 million in debt out of default 
JAMES R. TOLZIEN

Page Two 

Dancing Bear Investments, Fort Lauderdale, Florida 1997 – 1999 

Private investment vehicle with over $100 million invested in early-stage businesses focused on 

internet-based marketing/sales delivery systems in travel, automobile sales, and personal 

communications 

Operations, Finance Director for portfolio companies 

 Initiated coordinated strategic planning across all companies, establishing crossmarketing and joint sales capabilities

 Created formalized management processes, reviews and controls with standardized 

reporting of key financial results and metrics 

 Upgraded call center personnel, MIS reporting, and productivity analyses 

 Conducted customer focus groups, streamlined and re-focused sales and marketing in 

conjunction with preferred vendor performance thresholds 

 Directed cost reduction efforts across the portfolio, including office closings and 

centralized administrative functions

Alamo Rent a Car, Fort Lauderdale, Florida 1996 – 1997 

$1.5 billion in annual sales, providing global car rental services through a network of 300 

company-owned offices and 11,000 full time staff, ranking 5PP

thPP in US market share

Senior Vice President, North American Operations (1997) 

 Directly responsible for all North American operations through 6 officer-level direct 

reports and staff functions for vendor relations and new product development 

 Revamped organization structure to de-centralize and stream-line decision making, 

created regional profit improvement meetings with peer group incentive structure

 Installed J. D. Powers-developed customer service monitoring system, drove complainthandling to location level resulting in reduced costs and improved turnaround time 

 Achieved $30 million profit improvement, 20% customer service improvement 

Vice President, Finance (1996)

 Directed centralized accounting function for all global operations through 11 directorlevel professionals and highly developed main frame accounting system 

 Reorganized accounting staff, implemented new SEC reporting function to focus on 

significant audit findings from previous years 

 Redesigned all internal management information reports, created new planning and 

analysis department to highlight and monitor actionable variances 

 Led financial component of sale of company to AutoNation, including negotiation 

support, due diligence and post close financial integration 

Commonwealth Capital Partners, New York, Fort Lauderdale 1992 - 1995

Private investment fund with approximately $90 million of equity investments focused on 

turnaround opportunities in media and entertainment-related companies

Regional Director for portfolio companies, including Fred Astaire Dance Studios

 Upgraded financial reporting systems, initiated product line profitability analyses

 Renegotiated independent contractor agreements, improved productivity controls 

 Sold, refranchised, or closed unprofitable locations, reduced corporate overhead 

 Directed due diligence, negotiations, and post-close integration of companies 
JAMES R. TOLZIEN

Page Three

Budget Rent a Car Corporation, Chicago, Illinois 1976 - 1992

$1.2 billion in annual sales, providing global car rental services through a network of 400 

company-owned and franchised offices, ranking 4PP

thPP in US market share

Executive Vice President, Chief Financial Officer (1990-1992)

 Managed $3B debt portfolio, created $800M bank syndicate for special purpose funding 

 Revamped risk management area, including self-insurance and in-house claims function 

 Financially and organizationally restructured international operations 

 Drove comprehensive margin improvement program, $50 million cost savings 

Senior Vice President, Strategic Planning (1988-1990) 

 Created “bottom up” planning function, tied to financial results and incentive programs 

 Directed new value add product R&D, including navigation systems, counter sales 

 Coordinated all elements of management reporting system to new owners (Ford) 

Vice President, Corporate Controller (1982-1988) 

 Managed financial aspects of campaign to re-purchase roughly 50 previously franchised 

locations, including negotiations, due diligence, and post-close integration

 Led all accounting and financial aspects of LBO from Transamerica, subsequent IPO 

 Handled negotiation support, due diligence for sale of public company to Ford 

Controller (1976-1982)f 

 Decentralized accounting systems and controls to large regional centers, established and 

directly supervised detailed internal audit review program

 Coordinated all financial, management reporting processes with parent (Transamerica)

Ernst & Ernst (now Ernst & Young), Chicago, Illinois 1972 - 1976 

Typical “Big 8” experience, standard audit responsibilities, outstanding performance reviews, 

annual promotions, left firm as Supervising Senior Auditor – clients included Weiman Furniture, 

White Farm Equipment, Bowne Printing, University of Notre Dame, and Budget Rent a Car 

EDUCATION - BS Accounting from University of Illinois, June 1972 - CPA, November 1972 

AFFILIATIONS - American Institute of Certified Public Accountants, Financial Executives 

Institute, Presidents Council-University of Illinois, St. Thomas Aquinas Foundation 
John N. Furneaux

Objective

Aircraft Operational and Development Position 

Education

University of Colorado, Boulder, Colorado 1967-1969

Western Washington State University, Bellingham, Washington 1969-1971

Bachelors of Arts and Science

Political Science Major

Statistics Minor 

Current/Qualifications 

Current Medical Certificate First Class

Pilot A-320

Check Airman 

Standards Check Airman

Airline Program Designee

Head of Aircraft Acceptance (New Aircraft) and Maintenance Test Pilots, US Airways

Member of the US Airways Go Team (incident/accident response)

Last Simulator Annual AQP Check – 7 December, 2013

Last Line Check – 20 March, 2014

Last 3 TOLs - 18 March. 2014

Enrichment

Airline Upset Training Roswell, New Mexico

Airbus Operations Meetings

ATA Advanced Navigation Symposium 

PROFESSIONAL EXPERIENCES

Eastern Air Lines Vice President Flight Operations/ Director of Operations May 19, 2014-Present

Chief Pilot USAirways Test Pilot Division 2006-2014

• Manager of flight test operations for new aircraft acquisitions

• Manager of inspections for new aircraft acquisitions 

• Manager of maintenance test flight operations 

• Created training curriculum for maintenance test 

• Created procedural development for test and acceptance flights

• Daily oversight of maintenance test flights and delivery/ferry flights 

USAirways Pilot/Check Airman 1983-2014

• Pilot- Boeing 737 & Airbus 320

• Check Airman 737 & Airbus 320

• APD Boeing 737 & Airbus 320

• Manager of Airbus New Aircraft Acceptance Team (France & Germany)

o Head of US Airways Acceptance of New Aircraft and Maintenance Test Pilot Program
o Procedural Development for Test and Acceptance Flights

• Initial Development Team Leader Airbus I/E CQT

• Standards Committees Airbus and 737

o Developed and administered Initial Check-Pilot Training and Annual Training (IECQT)

• Manager of Initial AQP (Advanced Qualification Program) Development Team for US Airways

o Worked closely with local (Pittsburgh) FAA and AFS 230 in Washington D.C.

o Manager of US Airways AQP certification by FAA (AFS 230)

o Manager of US Airways Airbus program into AQP

• FAA Inspection Augmentation Team Member

• US Airways Representative to Air Transport Association- Advanced Navigation Committee in 

Washington D.C.

• Member Aircraft Purchase/Delivery Boeing 737

• Liaison for NTSB Investigation Teams

o Investigation of Boeing 737 Accident, near Pittsburgh, 1994

o Ran 737 simulator for event recreation for NTSB Teams

• Contributing Editor for Operations Monthly News, 737

• Contributor, Airbus Training Programs Curricula

Air Florida Pilot 1980-1983

United States Air Force Pilot/Instructor Pilot F-4 & F-15 1971-1980

• F-15 Instructor Pilot

• F-4 Instructor Pilot

• Training Program Evaluator 

• Training Program Developer 

• Foreign Military Liaison, F-15

o German Air Traffic Control

o IAF 

• Demonstration Pilot F-15 (Europe)

• Member, 1976 AFCE Competition Winning Team

• USAF Instructor Pilot Training 1978

• Tactical Fighter Training F-15 1976

• Tactical Fighter Training F-4 1973

• US Air Force Pilot Training 1971-1972

 

Expertise/Experience 

Language: Conversationally Fluent in French and German

Computer-Literature: Microsoft Word, Excel, PowerPoint, and Outlook

El Salvador Frequent visits for Maintenance Test and Delivery

Germany 5 years as USAF pilot

Switzerland, Boarding School, High School 3 years

France 1 year High School

fc
Manuel Diaz

1221 Brickell Avenue, Suite 1900

Miami, FL 33131

EDUCATION

Legal:

University of Miami, School of Law

Juris Doctor, 1980

Coral Gables, Florida

Undergraduate:

Florida International University

Bachelor of Arts, 1977

Miami, Florida

Miami-Dade Community College, North Campus

Associate of Arts, 1975

Miami, Florida 

High School:

Belen Jesuit Prep, 1973

Miami, Florida

WORK EXPERIENCE

Senior Partner- 2010- present

Lydecker Diaz

Mayor- 2001-2009

City of Miami, Florida

Partner- 1998-2000

Coffey, Diaz & O’Naghten 

Vice-President and General Counsel- 1991-2001

Monty’s Restaurant Holdings

Executive Vice-President- 1986-1991

and General CounselTerremark, Inc.

Partner- 1980-1985

Berkowitz & Diaz, P.A.

Eastern Air Lines

Exhibit 19

(1 page)
Eastern Air Lines

Exhibit 20

(1 page)