U.S. Department of 

Transportation 

Office of the Secretary 

of Transportation 

December 11, 2014 

Ms. Rebecca B. MacPherson 

Jones Day 

51 Louisiana Ave., N.W. 

Washington, DC 20001 

Dear Ms. MacPherson: 

i l 

1200 New Jersey Avenue SE 

Washington DC 20590 

We have completed our initial review of the application filed by Menagerie Enterprises, Inc. d/b/a 

Monarch Air ("Monarch") for the determination of its fitness to conduct scheduled passenger air 

transportation as a U.S. commuter air carrier. 

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

processing of Monarch's application. The attached Information Request lists the areas where further 

information and/or clarification is necessary. I ask that you respond fully to this request within 30 days 

of the date of this letter. You may upload your response via the web at www.regulations.gov, or you 

may mail your response to U.S. Department of Transportation Dockets, West Building, Ground Floor, 

(M-30, Room W12-140), 1200 New Jersey Avenue SE, Washington, D.C. 20590. In either case, your 

response should be filed in Docket DOT-OST-2014-0192. 

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

receipt of this material. In addition, please remember that Monarch 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. 

Thank you for your cooperation in this matter. If you have any questions regarding this letter or the 

requested information, please feel free to contact Shabu Thomas of my staff at (202) 366-9721 or 

shabu. thomas@dot.gov. 

A_.......-""' ~tuY\1 J. Remo 

Chiei,:Ait "· Carrier Fitness Division 

Office of Aviation Analysis 

cc: Docket DOT-OST-2014-0192 

Mr. Cameron Baker 

POI for Menagerie Enterprises, Inc. d/b/a Monarch Air 

FAA 
Information Request 

General Information 

1. In its application, Monarch states that it has various related companies, including 

Trey Aviation, LLC; Trey Aviation, Inc., and Menagerie Aircraft Management LLC. Is 

there a parent company that manages and oversees the activities of all these companies? 

If so, please provide an organizational chart illustrating the relationships. 

Operations and Financial Information 

1. Please provide a detailed description of Rise's business. The description should 

include the answers to the following questions: 

a. Does Rise engage in activities other than providing air transportation for its 

members? 

b. How many members does Rise have and how many does it anticipate will 

participate in the air transportation portion of its business? 

c. What is the total cost of membership; are there initial sign-up costs, annual 

membership dues, and monthly fees? 

d. Does Monarch receive any portion or percentage of the membership fees 

collected? If so, what is the percentage of the total cost of membership 

received? 

2. Please provide the Department with a copy of the agreement between Monarch and 

Rise. 

3. Please provide a description of the proposed form and source of capital to support 

the acquisition of the three King Air 350 aircraft Monarch proposes to use in its 

commuter operations. Ifthe resources of an individual(s) or other organization(s) will be 

made available to Monarch to support its operations, provide a statement from such 

individual(s) or organization(s) of the amount of such available resources and terms and 

conditions under which such funds will be provided. If borrowed capital or a line-ofcredit is to be employed, the total amount, current balance, source, security, payment 

schedule, provisions to convert the debt to equity, and terms of repayment to the lender 

should be stated. Identify the participants in each arrangement and supply their 

commitments, citizenship, and any relationship with any acquiring shareholders or 

affiliates. In addition, copies of the funding agreements should be submitted. 

4. Please provide third-party verification from a recognized financial institution for all 

funds currently (within 3 months of the date of the application filed) on deposit in 

Monarch's name. 

5. Please provide a consolidated forecast balance sheet and profit and loss statement 

(broken down by month) for the first twelve full months for the entire business as well as 
2 

separate forecast statements for each operating segment, including the proposed 

commuter operations. These documents should include ample notes explaining the basis 

of computation of the amounts shown. The expense data should show: 

a. Detail of expense category (direct and indirect), indicating how the amounts 

were computed. If proposing to operate more than one aircraft type or model, 

the forecast should include separate estimates of expenses for training, 

maintenance, preparation of manuals, etc., for each aircraft type or model. 

b. For indirect expenses, since Monarch is engaged in other aviation-related 

operations (aircraft leasing, repair station, etc.,), expenses should be allocated 

on a rational basis between proposed commuter operations and other operation, 

with appropriate explanations. 

c. If aircraft or other facilities are to be required to conduct the proposed services, 

a description of the plans for obtaining and financing those items should be 

provided. 

6. Please provide an estimate of the amount of capital Monarch will need to 

commence operations. Please include the basis of the estimate (e.g., the amounts for preoperating costs, including aircraft deposits, or leases, office and hangar space, insurance, 

salaries, training, FAA and Department certifications, working capital, etc.). 

Certification 

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.