BEFORE THE

DEPARTMENT OF TRANSPORTATION
WASHINGTON, D.C.

Application of ) )

COMPASS AIRLINES

, LLC )
) Docket No. OST

- 201 4

- 0178

f or a mend ment of authority of the )

Certificate of Public C onvenience and )

N ecessity issued under 49 U.S.C. )

41102 to e ngage in air transportation ) )

SUPPLEMENT NO. 1 TO

APPLICATION OF COMPASS AIRLINES

, LLC

FOR AMENDED AUTHORITY

Communication with respect to this document should be addressed to:

David J.A. Hayes III, Esq. Lisa A. Harig

Vice President & General Counsel McBreen & Kopko
Trans States Holdings, Inc. 1501 Lee Highway, Suite 180

11495 Navaid Road Arlington, Virginia 22209
Bridgeton, Missouri 63044 (703) 247

- 5487
LHarig@mklawdc.com

Counsel for Compass Airli nes, LLC

Dated: January 12, 20152 BEFORE THE

DEPARTMENT OF TRANSPORTATION
WASHINGTON, D.C.

Application of ) )

COMPASS AIRLINES, LLC )
) Docket No. OST

- 201 4

- 0 178

for amendment of authority of the )

Certificate of Public Convenience and )
Necessity issued under 49 U.S.C. )
41102 to engage in air transportation ) )

Dated: January 12, 2015

SUPPLEMENT NO. 1 TO

APPLICATION OF COMPASS AIRLINES LLC

FOR AMENDED AUTHORITY

Compass Airlines

, LLC (“ Compass ”) he reby files this Supplement No. 1 to its

Application for a mendment of authority of its Certificate of Public Convenience and Necessity

.

C ompass is submitting the following attached exhibit s pursuant to the Department’s letter dated

J anuary 8, 2015 which addressed C ompass ’s Motion for Confidential T reatment Pursuant to

Rule 12 dated O ctober 9, 2014 :

• Exhibit 1 ;

• Exhibit 2 ( R edacted) ; and

• Exhibit 3

.

Respectfully Submitted,

______________________ Lisa A. Harig

Counsel for Compass Airlines, LLC3 CERTIFICATE OF SERVICE

I hereby certify that a copy of the foregoing document was served this 12 th day of

J anuary, 2015 via electronic mail to the parties listed below:

Laura Remo laura.remo@dot.gov
Vanessa Balgobin vanessa.balgobin@dot.gov

__________________________ Lisa A. HarigUNAUDITED 9/26/2014

COMPASS AIRLINES, LLC **(A Wholly Owned Subsidiary of Trans States Holdings)**

**Balance Sheet**

**August 31, 2014**

Assets

**Current assets: Cash and cash equivalents**  **$ 14,670,234**  **Cash Investments (1,550,000 restricted) 5,550,000** 

**Accounts receivable 7,838,082**  **Accounts receivable - related parties 182,389**  **Expendable parts and supplies 6,238,641**  **Prepaid expenses and other current assets 523,437** 

**Total current assets 35,002,783** 

**Property and equipment, net 9,800,709** 

**Other assets 989,675** 

**Intangible asset, net 3,002,602** 

**Total assets $ 48,795,769** 

Liabilities and Stockholder’s Equity

**Current liabilities: Accounts payable**  **$ 4,518,715**  **Accounts payable - related parties 1,460,550**  **Accrued expenses and other liabilities 8,386,536** 

**Total Liabilities 14,365,801** 

**Members' equity Member's equity**  **34,429,968**

**Total liabilities and members' equity $ 48,795,769**UNAUDITED 9/26/2014

COMPASS AIRLINES, LLC **(A Wholly Owned Subsidiary of Trans States Holdings)**

**Projected Statement of Operaitons**

**Statement of Operations**

**Twelve months ending September 30, 2014**

**(000's)**

**Operating revenues:**
**Passenger $**  **143,571**

**Other 154** 

**Total operating revenues 143,725** 

**Operating expenses: Wages and benefits**  **65,455**

**Aircraft fuel 728**  **Aircraft / engine rent 435**  **Maintenance and repair 38,126** 

**Insurance and taxes 8,253**  **Depreciation 1,690** 

**Other 24,135** 

**Total operating expenses 138,822** 

**Operating profit 4,903** 

**Non-operating income (expense):**

**Interest income 14** 

**Other income 2,399** 

**Total non-operating income (expenses) 2,413** 

**Net income 7,316** UNAUDITED 9/26/2014

COMPASS AIRLINES, LLC (A Wholly Owned Subsidiary of Trans States Holdings)

Projected Statement of Operaitons

Statement of Operations

Twelve months ending September 30, 2015

NO GROWTH GROWTH

Current 42 A/C 42 + 20 A/C

(000's) (000's)

Operating revenues:
Passenger

Other

Total operating revenues

Operating expenses: Wages and benefits

Aircraft fuel Aircraft / engine rent Maintenance and repair

Insurance and taxes Depreciation 4

Other

Total operating expenses

Operating profit

Non-operating income (expense):

Interest income

Other income

Total non-operating income (expenses)

Net income