BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Submission of 

SILVER AIRWAYS CORP., 

first year progress report under 

49 U.S.C. § 41110 

) 

) 

) 

) 

) Docket OST-2011-0061 

) 

) 

) 

SUBMISSION OF SILVER AIRWAYS CORP. 

FIRST YEAR PROGRESS REPORT

Communications with respect to this document should be served upon: 

For Silver Airways Corp.

David M. Hernandez 

Shareholder 

VEDDER PRICE P.C. 

1401 I Street NW, Suite 1100 

Washington, DC 20005 

(202) 312-3340 

dhernandez@vedderprice.com 

Darrell Richardson 

President/Chief Executive Officer 

SILVER AIRWAYS CORP. 

1100 Lee Wagner Blvd., Suite 201 

Fort Lauderdale, FL 33315 

(954) 880-9782 

drichardson@gosilver.com 

June 13, 2012 
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Submission of 

SILVER AIRWAYS CORP., 

first year progress report under 

49 U.S.C. § 41110 

) 

) 

) 

) 

) Docket OST-2011-0061 

) 

) 

) 

SUBMISSION OF SILVER AIRWAYS CORP. 

FIRST YEAR PROGRESS REPORT

Pursuant to the Department of Transportation’s (the “Department”) Order 

Transferring Commuter Air Carrier Authority dated April 29, 2011 (the “Order”), VPAA Co. 

(“VPAA”) was (1) deemed fit, willing, and able to conduct scheduled passenger operations 

as a commuter air carrier; and (2) transferred the commuter air carrier authorization issued to 

Gulfstream International Airlines, Inc. On November 1, 2011, VPAA amended its Articles 

of Incorporation to reflect the change in its name from VPAA to Silver Airways Corp. (the 

“Company”). On November 28, 2011, the Department reissued the Order to reflect the 

change in VPAA’s corporate name. 

The Company hereby submits as its first year progress report, in compliance with the 

Order: 

Current Operations

The Company currently operates a fleet of twenty-one Beechcraft B1900D and five 

Saab 340B/Plus aircraft. Five of the twenty-one B1900D aircraft have been removed from 

service and replaced with the five Saab 340B/Plus models. The remaining sixteen B1900D 

aircraft are in service. 
Submission of Silver Airways Corp. First Year Progress Report 

Page 2 

The Company serves four principal markets: Florida intrastate routes, Florida routes 

to and from the Bahamas, Cleveland EAS routes, and Montana EAS routes. The Florida 

intrastate routes include Fort Lauderdale, Key West, West Palm Beach, Tampa, Gainesville, 

Tallahassee, and Pensacola. The Florida routes to and from the Bahamas serve Bimini, 

Freeport, Treasure Cay, Marsh Harbour, Eleuthera, Governor’s Harbour, and George Town. 

The Cleveland EAS routes serve Cleveland, Parkersburg, Lewisburg, Dubois, Franklin, 

Bradford, and Jamestown. The Montana EAS routes serve Billings, Helena, Lewiston, 

Havre, Glasgow, Wolf Point, Sidney, Glendive, and Miles City. 

The Company has five hundred and forty-five (545) full-time employees and sixtyfive (65) part-time employees. 

Summary of Changes (Year One)

During the past year, the Company has made operations changes to its fleet, routes, 

maintenance, and infrastructure and bench strength. The fleet of B1900D aircraft are being 

replaced by the newer Saab 340B/Plus aircraft. Five of the older B1900D models have been 

removed from service and replaced by five Saab 340B/Plus aircraft. The Company’s routes 

have been realigned to focus more on customer service and reliability. Additional flights 

were added from Orlando to the Bahamas. For maintenance purposes, the Company leased a 

new 61,000 square foot hangar pursuant to a long-term deal. Further, the Fort Lauderdale 

maintenance base was relocated to the new Gainesville facility. The Fort Lauderdale 

maintenance facility is being eliminated to accommodate a runway extension. To improve its 

infrastructure and bench strength, the Company invested money in management knowledge 

and experience improvements as well as in new advanced technology computer systems. 
Submission of Silver Airways Corp. First Year Progress Report 

Page 3 

The Company further designed and certified a new System Operational Control Center 

located at its Fort Lauderdale headquarter building. 

Anticipated Changes (Year Two)

During its second year, the Company anticipates operations changes to its fleet, 

routes, maintenance, and infrastructure and bench strength. The Company expects continued 

replacement of the B1900D aircraft with the Saab 340B/Plus aircraft. By the end of its 

second year, the Company will have replaced all of the B1900D models in its Florida and 

Bahamas markets, leaving four B1900D aircraft in its Cleveland market and four in its 

Montana market. On August 1, 2012, the Company will begin EAS routes out of 

Washington Dulles Airport operating to Altoona, Johnstown, Morgantown, Clarksburg, 

Shenandoah Valley, Beckley, and Lewisburg using three Saab 340B/Plus aircraft. On 

October 1, 2012 the Company will begin EAS routes out of Atlanta operating to Hattiesburg, 

Meridian, Gainesville, Greenville, Tupelo, Muscle Shoals, and Lewisburg using three Saab 

340B/Plus aircraft. The Company may add additional routes as opportunities arise. The 

Company will continue to grow its in-house maintenance capabilities in Gainesville and will 

be adding the Saab 340B/Plus heavy check program. The Company’s infrastructure and 

bench strength will continue to build to create a better and more professional airline. 

Current Financial Statements

Attached please find a copy of the Company’s current financial statements. (Exhibit 

A.) 

Senior Management and Key Technical Personnel

Attached please find a list of the Company’s current senior management and key 

technical personnel. (Exhibit B.) 
Submission of Silver Airways Corp. First Year Progress Report 

Page 4 

WHEREFORE, the Company respectfully submits this first year progress report 

pursuant to the Order. 
Submission of Silver Airways Corp. First Year Progress Report 

Page 5 

The contents of this application and the attached exhibits are true and correct to the 

best of my knowledge and belief. Pursuant to Title 18 United States Code Section 1001, I, 

Darrell Richardson, 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. 

For Silver Airways Corp.: 

/S/ Darrell Richardson 

 

Darrell Richardson 

President/Chief Executive Officer 

SILVER AIRWAYS CORP. 

1100 Lee Wagner Blvd., Suite 201 

Fort Lauderdale, FL 33315 

(954) 880-9720 

drichardson@gosilver.com 
CERTIFICATE OF SERVICE 

I, Megan Schreck, hereby certify that I have, this, the 13th day of June 2012, 

caused a true copy of the foregoing Submission of Silver Airways Corp. First Year 

Progress Report to be served on the following Parties via electronic mail: 

Name Organization Address 

Laura Remo Air Carrier Fitness Division, X-56 laura.remo@dot.gov 

Catherine O’Toole Air Carrier Fitness Division, X-56 Catherine.O'Toole@dot.gov 

Peter Lynch Asst. Chief Counsel for 

Enforcement, AGC-300 

peter.lynch@faa.gov 

W. Jeff Weber FAA Certification Section 

Manager, AFS-900 

w.jeff.weber@faa.gov 

Rosendo M. Rigau South Florida CMO – 29 rosendo.m.rigau@faa.gov 

Dan Weiss United Continental Holdings dan.weiss@coair.com 

 /S/ Megan Schreck 

 

 Megan Schreck 
LIST OF EXHIBITS 

Exhibit Title 

A Financial Statements 

B Senior Management and Key Technical Personnel 
EXHIBIT A

Financial Statements 

(See Attached.) 

 
Assets ($000)

Current Assets:

Cash and cash equivalents 3,621 

Accounts receivable 5,434

Expendable parts inventory 1,441 

Prepaid expenses 590

Total Current Assets 11,085

Fixed Assets:

Aircraft 33,899

Flight equipment 7,115

Other property and equipment 1,917

 42,931

Less accumulated depreciation (8,748)

Total Property and Equipment 34,183

Other Assets:

Other assets 2,117

Total Other Assets 2,117

Silver Airways Corp

Balance Sheet

As of April 30, 2012

Total Other Assets 2,117

Total Assets 47,385

Liabilities and Stockholders' Equity ($000)

Current Liabilities:

Accounts payable and accrued expenses 10,620 

Air traffic liability 1,164

Other current liabilities 69

Total Current Liabilities 11,853

Long Term Liabilities:

Long-term debt, net of current portion 37,998 

Total Long Term Liabilities 37,998

Total Liabilities 49,851

Stockholders' Equity:

Capital Stock 0

Additional paid in capital 7,900 

Accumulated deficit (10,366)

Total Stockholders' Equity (2,466)

Total Liabilities and Stockholder's Equity 47,385
Operating Revenue ($000)

Passenger revenue 45,889 

EAS Subsidies 19,480

Autec 1,213

Cuba charter 19,932

Other operating revenues 2,474 

Total Revenue 88,988

Operating Expenses

Fuel & into-plane 18,309 

Aircraft rent 223

Flight operations 11,899

Pilot Training 417

Maintenance 14,520

Passenger service 11,875 

Cuba Charters 18,853

Promotion & sales 3,302 

General & administrative 6,836

Silver Airways Corp

Income Statement

For the year ended April 30, 2012

General & administrative 6,836

Depreaciation & amortization 10,443 

Total Operating Expenses 96,678

Income (loss) from operations (7,690)

Interest and other 4,578

Income (loss) before taxes (12,268)

Income tax provision -

Net income (loss) (12,268) 

EBITDA 2,753

Addbacks 5,310

Adjusted EBITDA 8,063 
Silver Airways Corp Financials (Year Ended April 30, 2012)

Income Statement

Operating Revenue ($000)

Passenger revenue 45,889

EAS Subsidies 19,480

Other operating revenues 23,619

Total Revenue 88,988

Operating Expenses

Fuel & into-plane 18,309

Flight operations 12,540

Maintenance 14,520

Passenger service 30,728

Promotion & sales 3,302

General & administrative 6,836

Total Operating Expenses 86,235

% of revenue 96.9%

EBITDA 2,753

Addbacks 5,310

Adjusted EBITDA 8,063

% Margin 9.1%

Less: Depreciation & amortization (non-cash) 10,443 

Operating Income (2,380)

% Margin -2.7%

Balance Sheet

Assets ($000)

Cash and cash equivalents 3,621

Accounts receivable 5,434

Expendable parts inventory 1,441

Prepaid expenses 590

Total Current Assets 11,085

Total Property and Equipment 34,183

Intangible assets -

Other assets 2,117

Total Assets 47,385

Liabilities and Stockholders' Equity

Accounts payable and accrued expenses 10,620 

Air traffic liability 1,164

Other current liabilities 69

Total Current Liabilities 11,853

Total Long Term Liabilities 37,998

Total Liabilities 49,851

Total Stockholders' Equity (2,466)

Total Liabilities and Stockholder's Equity 47,385
EXHIBIT B

Senior Management and Key Technical Personnel 

Name Position FAA Part 119 

Requirement 

Darrell Richardson President/Chief Executive Officer 

David Querio Chief Operating Officer 

Phil LeFevre Vice President Flight Operations Director of Operations 

Michael Purchon Vice President of Airport Operations 

Peter Barry Vice President of Technical Operations Director of Maintenance 

Craig Attell Vice President of Safety, Security and 

Regulatory Compliance Director of Safety 

Edward Knap Chief Pilot Chief Pilot 

Mickey Bowman Vice President EAS Program 

Curtis Berchtold Chief Financial Officer 

Donna Tipsword Vice President Human Resources & Employee 

Development 

Matthew Holiday Vice President of Marketing & Sales

Terry Pentecost Director of Quality Control 

William Lyon Director of Maintenance Chief Inspector 

Alex Rodriguez Vice President IT