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Decembe r

14 , 201 1 Ml- . Clayto n I . Gambe r Presiden t / Directo r o f Maintenanc e Twi n Ai r Calyps o Limited , Inc . 70 0 S.W . 34 * Street , Suit e 10 0 Ft . Lauderdale , F L 3331 5 Re : Docke t DOT-OST-2011-0143 , Applicatio n o f Twi n Ai r Calyps o Limited , Inc. , for Commute r

Ai r Carrie r authority Dear Mr . Gamber : W e hav e complete dou r

revie w of

th e additiona l informatio n file di n Docke t DOT-OST-2011-0143 b y Twi n Ai r

Calyps o Limited , Inc . ("Twi n Ai r Calypso" ) o n Octobe r

20 , 2011 , i n respons e t o ou r lette r date dSeptembe r

16 , 2011 . Thi s revie w ha s reveale dth e nee dfor additiona l and/o r

clarifyin g informatio n regardin g Twi n Ai r Calyps o an dAvStar

Aviatio n Group , Inc . ("AvSta r Aviation" ) befor e w e ca n complet e ou r revie w o f

Twi n Ai r Calypso' s fitness . Th e attache dInformatio n Reques t list s th e area s wher e furthe r informatio n and/o r

clarificatio n i s necessary . I as k

tha t yo u respon dfully t o thi s reques t withi n 3 0 day s o f

th e dat e o f

thi s letter . In addition , pleas e remember that Twi n Ai r

Calyps o shoul dpromptl y provid e th e Departmen t with an y informatio n regardin g change s i t ma y underg o i n area s affectin g it s fitnes s (Le. , management , operatin g plan s o r

financial condition , complianc e disposition , o r ownership ) whil e it s applicatio n i s unde r revie w b y th e Department . A s i s th e Department' s practice , further processin g o f

Twi n Ai r Calypso' s applicatio n wil l b e deferre dpendin g receip t o f thi s material . Than k yo u for you r cooperatio n i n thi s matter . I f yo u hav e an y questions , pleas e fee l fre e t o contac t Alet aBes t

o f my staf f at (202 ) 366-972 1 o r

viaemai l at

aleta.best@dot.gov . Sincerely , jf n J . Remo , Chie f Ai r Carrie r Fitnes s Divisio ncc : Docke t DOT-OST-2011-0143 Mr . Sergi o Lope z South Florid aFligh t

Standard s Distric t

Offic e 1 9 289 5 S W 145 * Avenu e Miramar,F L 3302 7 Mr . Ken t Georg e Airport Directo r Fort Lauderdal e - Hollywoo dInternationa l Airpor t 10 0 Aviatio n Boulevar d Fort Lauderdale , F L 3331 5INFORMATIO N REQUES T FO RTWI N AI RCALYPS O LIMITED , INC .

GENERA L INFORMATIO N 1 . O n Septembe r

16 , 2011 , w e aske dyo u t o provid e informatio n o n th e pendin g actio n fro mth e FA A regardin g apossibl e FA RPart 135.29 9 checkrid e violatio n agains t Twi n Ai r Calypso' s pilo t

Kenneth Kronheim . W e als o aske dtha t yo u includ e informatio n regardin g an y civi l penaltie s impose dan dan y step s th e ai r carrie r ha s undergon e t o preven t asimilar violatio n fro mhappenin g i n th e future . a . In you r

reply , date dOctobe r

20 , 2011 , yo u state dthat th e FA A actio n "ha s bee n settle dwithou t

an admissio n o f

guil t o n th e part

o f Twi n Ai r

Calypso. " Pleas e describ e di e term s o f

th e settlement , includin g an y civi l penalties , an dth e date(s ) o f th e associate dactions . b . Pleas e provid e informatio n regardin g an y step s Twi n Ai r Calyps o ha s undertake n t o preven t

asimilar

violatio n o r

allegatio n o f

violatio n fro m happenin g i n th e future . 2 . I n you r

reply , date dOctobe r

20 , 2011 , yo u identifie dsi x pilot s an dseve n mechanic s an dprovide dth e citizenshi p statu s o f each . Yo u als o provide da n organizationa l chart showin g pilot s an dmechanics . a . Severa l liste demployee s hol dsevera l positions . Fo r example , Clayto n Gambe r i s th e President , di e Directo r o f Maintenance , an don e o f th e mechanics . Arthu r Stevenso n i s both Directo r o f Operation s an don e o f

th e pilots . Pleas e provid e a lis t o f al l employee s wh o hol dmor e tha n on e positio n withi n Twi n A k Calypso , includin g Mr . Gambe r

an dMr . Stevenson . Th e lis t shoul dinclud e eac h employee' s (a ) name , (b ) curren t positions , an d(c ) citizenship . b . Ho w man y tota l employees, includin g th e Mr . Gamber , Mr . Stevenson , Mr . Homa , th e four

othe r pilots , an dth e si x othe r mechanics , doe s Twi n Ai r Calyps o have ? Pleas e coun t individual s an dno t

position s (i.e. , Mr . Gambe r i s considere don e employee) . 3 . O n Septembe r

16 , 2011 , w e aske daserie s o f question s t o clarif

y th e aircraf

t t o b e use d b y Twi n Ai r

Calyps o i n it s charte r

operation s an dpropose dschedule doperations . I n you r reply , date dOctobe r

20 , 2011 , yo u state dtha t you r origina l applicatio n include d OS T Form450 7 listin g four aircraft . Yo u als o note dthat th e decisio n ha dbee n mad e no t t o refurbis h thre e o f

th e aircraf

t owne db y Aircraf

t Charter , LL C bu t

tha t th e onl y tw o aircraf

t undergoin g variou s level s o f inspectio n /

refurbishmen t

ar e owne db y Aircraf t Charters , LLC . However , yo u als o state dthat four o f th e five aircraf

t tha t wil l b e use db y Twi n Ai r

Calyps o for

schedule dservic e ar e owne db y Aircraf t Charters , LL C an dthat

on e aircraf

t i s undergoin g maintenanc e require db y FA RPart 135 . In addition , AvStar

Aviation' s Jun e 30 , 201 1 10- Q indicate s that "onl y thre e o f

th e Ai r Carrie r Subsidiary' s [Twi n Ai r

Calypso's ] lease daircraf t ar e flying , a s five o f

thes eaircraf t ar e currentl y dow n for

routin e maintenanc e an drefurbishing . However , w e wil l nee dt o rais e abou t

$350,00 0 t o complet e thi s maintenanc e an drefurbishing . Ou r goa l i s t o rais e thi s amount , an dcomplet e th e maintenanc e an drefurbishing , s o that al l eigh t planes wil l b e phase dint o operation . Althoug h w e ar e no w seekin g t o rais e thi s amount , w e hav e n o assuranc e that w e wil l b e abl e t o d o so . W e ar e strivin g t o ge t al l eigh t aircraf t operational... " Fo r clarificatio n purposes , pleas e answe r th e followin g question s abou t al l aircraf

t currentl y lease do r

owne d(a ) b y Twi n Ai r

Calyps o and/o r

(b ) b y AvStar

Aviatio n o n behal f o f Twi n Ai r Calypso . a . Fo r eac h aircraft , lis t

(a ) it s type , (b ) it s FA A registratio n number , (c ) th e numbe r o f seats , (d ) it s intende dus e (charte r only , schedule donly , combination) , (e ) it s owner , (f ) th e citizenshi p o f

it s owner , (g ) th e leas e holde r (Twi n Ai r

Calyps o o r

AvStar Aviation ) an d(h ) it s curren t statu s (active , "groun dinsurance" , inactive) . b . Fo r eac h aircraf

t designate da s "groun dinsurance, " provid e aprojecte ddat e for whic h that

aircraf t wil l ente r

servic e for

Twi n Ai r

Calypso . c . Fo r eac h aircraf

t designate da s "inactive, " provid e aprojecte ddat e for whic h that aircraf t wil l ente r

servic e for

Twi n Ai r

Calypso . d . Whil e Twi n Ai r

Calypso' s respons e o f

Octobe r 20 , 2011 , indicate s that

"fund s ar e bein g generate dfro mcurren t operation s t o [refurbis h th e aircraf t require d fo r propose doperations], " AvStar Aviation' s Jun e 30 , 201 1 10- Q note s that AvStar Aviation' s ne t

incom e for

th e firs t hal f o f 201 1 wa s $939 . Fo r

eac h non activ e aircraf

t currentl y undergoin g refurbishin g o r maintenance , o r

schedule d for refurbishin g o r

maintenance , pleas e indicat e th e specifi c sourc e o f fund s for th e refurbishin g o r

maintenance . CORPORAT E STRUCTUR E AN D OWNERSffl P 1 . O n Septembe r

16 , 2011 , w e aske dyo u t o provid e alis t o f al l person s (individual s o r organizations) that

ow n o r contro l apercen t

o f th e stoc k

o f AvStar Aviation , indicatin g th e numbe r

o f votin g share s an dth e correspondin g percentag e o f th e tota l share s outstandin g that

ar e hel db y each , alon g with thei r address , citizenship , an d principa l business . I n you r Octobe r 20 , 201 1 reply , yo u note dthat "thi s questio n was late r clarifie dt o onl y includ e al l curren t

stockholder s with a10 % o r greate r ownershi p o f

outstandin g shares. " Thi s interpretatio n i s no t entirel y correct , a s evidence db y aserie s o f emai l message s (se e Appendi x 1) . O n Septembe r 21 , 2011 , yo u aske du s t o "[p]leas e clarif y poin t #4 unde r 'Corporat e Structur e an dOwnership' . A s apublicall y trade dcompan y AvStar ha s ove r

50 0 shareholders , what i s th e threshol dpercentag e o f stoc k ownershi p that

yo u requir e th e additiona l information ? In 4 a . yo u us e 10 % a s a threshol dfo

r corporations , i s thi s th e sam e for individuals? " W e replied , als o o nSeptembe r 21 , 2011 , an dinforme dyo u tha t "Questio n # 4 unde r

th e heade r "Corporat e Structur e an dOwnership " ask s for informatio n for

stockholder s o f

AvStar Aviatio n Group , Inc . (AvStar) . Pleas e provid e thi s information , includin g informatio n requeste di n subpart s a , b , c , an dd , for eac h individua l o r

entity holdin g at

leas t five (5 ) percen t

o f AvStar' s shares. " W e recogniz e ther e i s som e confusio n betwee n th e wordin g o f origina l questio n # 4 an demai l response . Therefore , w e ar e restatin g ou r reques t for thi s information , a s wel l a s includin g necessary additiona l questions , an das k yo u t o complet e eac h part , a s noted . Th e informatio n provide dabou t specifi c stockholder s shoul db e curren t a s o f Septembe r

30,2011 . a . Th e followin g question s appl y t o AvSta r Aviation : 1 . Discus s an y measure s taken , if any , an dreflecte di n th e corporat e governanc e documents , tha t woul dpreven t

aforeig n perso n o r

foreig n entity fro mexceedin g th e statutory limitatio n concernin g th e percentag e o f votin g interes t

permitte dt o b e hel db y foreig n person s o r entities . Fo r instance , doe s AvStar

Aviatio n hav e aforeig n stoc k registry ? 2 . Provid e adetaile ddescription , o f eac h clas s o r

serie s o f stoc k issue db y AvStar Aviation . Suc h descriptio n shoul dinclude : th e numbe r o f share s outstandin g b y clas s o r

series , convertibilit y int o othe r classe s o r

serie s o f stock , representatio n o n th e boardo f directors , votin g rights , entitlemen t t o dividend , consequence s o f failur e t o pa y suc h dividends , an dliquidatio n preferences . b . Th e followin g question s appl y t o al l person s (individual s o r organizations ) tha t ow n o r contro l Hv e (5 ) percen t o r mor e o r

hol doption s t o acquir e aHv e percen t o r greate r interes t i n AvStar

Aviatio n o r

th e votin g stoc k

o f AvStar Aviation : 1 . Pleas e provid e alis t

o f al l person s (individual s o r organizations ) tha t

ow n o r contro l fiv e (5 ) percen t o r mor e o f th e stoc k

o f AvStar Aviation , indicatin g th e numbe r

o f votin g share s an dth e correspondin g percentag e o f th e tota l share s outstandin g that ar e hel db y each , alon g with thei r address , citizenship , an dprincipa l business . 2 . I f an y o f thes e name dstockholder s i s an organization , provid e th e name , address , citizenship , an dprincipa l busines s o f th e individual s wh o ow n o r contro l a t leas t fiv e (5 ) percen t

o f th e stoc k

o f tha t organization . I

f ther e Sectio n 4 9 U.S.C . 40102(a)(15 ) define s "citize n o f th e Unite dStates " a s (A ) a n individual wh o i s a citize n o f th e Unite dStates ; (B ) apartnershi p eac h o f whos e partner s i s a n individua l wh o i s acitize n o f th e Unite dState s (C ) acorporatio n o r associatio n organize dunde r th e law s o f

th e Unite dState s o r

a State , th e Distric t

o f Columbia , o r

aterritory o r

possessio n o f

th e Unite dStates , o f

whic h th e presiden t an da t leas t two-third s o f

th e boar do f

director s an dothe r

managin g officer s are citizen s o f th e Unite d States , whic h i s under

th e actual contro l o f

citizen s o f

th e Unite dState s an di n whic h a

t leas t 7 5 percen t o f th e votin g interes t

i s owne do r

controlle db y person s tha t are citizen s o f

th e Unite dStates .ar e several layer s of ownershi p b y companie s (e.g. , holdin g o r paren t companies) , informatio n o n th e stoc k ownershi p shoul db e provide dfor eac h laye r unti l th e ultimat e individua l shareholder s are reached . 3 . Identif y th e stat e o r

othe r law s unde r

whic h any corporation s o r partnership s liste di n l.b. l ar e organized . 4 . I f th e applicant' s stoc k

i s hel db y someon e fo r

th e benefi t

o r accoun t o f a thir dparty , giv e th e name , citizenship , an dprincipa l busines s o f tha t perso n o r organization . 5 . I f an y o f thes e person s ar e relate db y bloo do r marriag e o r

hav e ha dan y financial interes t

in , o r serv e o r hav e serve da s an office

r o r directo r o f an y othe r ai r carrier , commo n carrier , o r perso n substantiall y engage di n th e busines s o f

aeronautic s o r

persons whos e principa l busines s (i n purpos e o r fact ) i s th e holdin g o f

stoc k i n o r contro l o f

an y aviation-relate dentity , that relationshi p shoul db e described . c . Th e followin g question s appl y t o al l person s (individual s o r organizations) , regardles s o f

th e numbe r

o r percen t o f share s o f

AvSta r Aviatio n stoc k

tha t ar e currentl y hel do r

woul db e hel dfollowin g exercis e o f th e option : 1 . Lis t eac h perso n that

hold s an optio n t o conver t (a ) deb t o f Twi n Ai r Calyps o o r

AvStar Aviatio n t o equit y i n AvStar Aviatio n o r

(b ) on e typ e o f AvStar Aviatio n stoc k

t o anothe r

typ e o f AvStar Aviatio n stock . 2 . Describ e th e circumstance s unde r whic h th e conversio n coul doccur , th e applicabl e conversio n rate(s) , th e curren t numbe r (an dpercen t

o f total ) share s held , an dth e potential numbe r (an dpercen t

o f total ) o f eac h typ e o f stoc k that woul db e owne di

f th e conversio n occurred. O n Septembe r

16 , 2011 , w e aske dyo u t o identif y thos e individuals , an dth e citizenshi p o f

each , wh o manag e an doverse e th e busines s operation s o f AvStar Aviation . I

n you r Octobe r 20 , 201 1 response , yo u identifie dsi x (6 ) mdividuals : Clayto n Gambe r

(AvSta r President/CEO/Directo r an dPresident/Directo r

ofMantec a fo r Twi n Ai r Calypso) , Henry Shull e (AvSta r Vic e President/Secretary/Directo r an d Secretary/Directo r

fo r Twi n Ai r Calypso) , Robert

Wilso n (AvSta

r Vic e President/Chie f

Financia l Officer) , an dthre e additional AvStar Director s (Russel l Ivy , Stephe n Wood, an dJame s Short) . a . Pleas e identif

y th e shar e o f

votin g stoc k

owne db y eac h o f

th e si x individuals , name dabove , an db y Mr . Stevenso n an dMr . Homa . b . Pleas e describ e an y curren t involvemen t

o r interest s (ownershi p o r managemen t

o r employment ) hel di n an y othe r aviatio n busines s b y an y membe r o f th e Boar do f

Director s o f

AvStar Aviation , th e senio r managemen t

teamo f AvStar Aviation , an dth e senio r managemen t

tea m (Mr . Gamber , Mr . Stevenson , an dMr . Homa ) o f Twi n Ai r Calypso .c . Pleas e provid e th e citizenshi p o f Robert Wilso n (AvStar

Vic e President/Chie f

Financia l Officer) . OPERATIN G PLA N 1 . O n pag e 1 1 o f

it s application . Twi n Ai r Calyps o describe s it s busines s marketin g philosoph y regardin g Cuba . O n Septembe r 16 , 2011 , w e aske dyo u t o explai n Twi n Ai r Calypso' s plans , i

f any , t o offe

r schedule dservic e fro man y U.S . airport t o Cuba , includin g whethe r

th e applican t

inten dt o provid e servic e t o Cub awithi n th e nex t 1 2 months . In you r

Octobe r 20 , 2011 , reply , yo u note dthat "Twi n Ai r

Calyps o wil l b e abl e t o offer

thi s servic e [ad-ho c charte r servic e t o Cub afro mth e approve dFlorid a airports ] i f O FA C (Offic e of

Foreig n Asset s Control ) approva l t o operat e suc h flights i s received . I n it s Jun e 30 , 201 1 10-Q , AvStar Aviatio n note s that

i t applie dt o O FA C "[o] n Augus t

10 , 201 1 .. . for

authority t o becom e aCarrie r Servic e Provider , Trave l Servic e Provide r

an dRemittanc e Agen t

fo r servic e t o Cuba . W e expec t thi s authority t o b e issue db y th e en do f 2011. " a . Wha t i s th e statu s o f

thi s application ? b . Wil l Twi n Ai r

Calyps o requir e resource s i n additio n t o thos e specificall y assigne dt o th e service s describe di n thi s applicatio n t o offe r thos e flights? FINANCIA L POSITIO N A n applican t

for commute r

authority i s expecte dt o b e prepare dt o full y prosecut e it s applicatio n a

t th e tim e it

i s filed. Wit

h respec t t o financial fitaess , th e applican t i s require d t o provid e curren t

financial data, ^ an dthre e year s o f histori c financial data , togethe r with a detaile dforecas t

o f it s pre-operatin g cost s an dapro-form aforecas t profi t an dlos s statemen t reflectin g al l revenue s an dexpense s th e applican t expect s t o earn/incur

diurin g it s firs t yea r o f schedule doperations . In addition , th e company mus t demonstrat e that

it ha s obtaine dal l o f

th e fundin g neede dt o mee t ou r financia l fitness tes t

or , a t aminimum , that

i t ha s areasonabl e pla n for

doin g so . Therefore , pleas e provid e th e followin g information : 1 . Becaus e Twi n Ai r

Calyps o i s awholl y owne dsubsidiary o f AvStar Aviation , o n Septembe r

16 , 2011 , w e aske dyo u t o provid e balanc e sheet s an dincom e statements , for (a ) calendar

year 201 0 an d(b ) Januar y 1 , 201 1 throug h Augus t 30 , 2011 , togethe r with thei r

accompanyin g explanatory footnotes , fo r eac h company . Unaudite d/ unreviewe ddocument s wil l b e accepte dwith an accompanyin g statemen t o f accuracy . Whil e you r

Octobe r 20 , 2011 , submissio n provide dthi s informatio n fo r AvStar Aviatio n throug h it s For m10-Q , yo u provide d201 1 informatio n onl y for Twi n Ai r Calypso . Yo u als o note dthat Twi n Ai r Calyps o bega n it s operation s i n Apri l 2010 .

" Th e balanc e shee t

andincomestatemen t

supplie dmus t

b e fo r aperio dendin g no more than thre e month s prio r t o th e dat e o f

filing .a . Pleas e submi t balanc e sheet s an dincom e statement s for Twi n Ai r

Calyps o for both (a ) th e perio do f

Apri l 201 0 throug h Decembe r 201 0 an d(b ) th e perio d o f Januar y 1 , 201 1 throug h Septembe r 30 , 2011 . 2 . O n Septembe r

16 , 2011 , w e aske dyo u t o provid e adetaile dpre-operatin g cos t forecast . Thi s forecas t

shoul dinclud e al l costs , includin g fuel , insurance , aircraf t leas e deposits , aircraf

t refurbishin g expenses , lega l fees , etc . Sufficient detai l shoul db e provide dt o allo w u s t o replicat e th e mathematic s used . W e als o note dthat i f Twi n Ai r Calyps o believe s that

non e o f

thes e expense s wil l b e incurre dprio r t o it s commencemen t

o f commute r

flight operations , it

shoul dstat e i n detai l th e reason s wh y th e Departmen t

shoul dconside r

thi s forecas t

reasonable . I n your

Octobe r 20 , 201 1 submission , yo u state dthat Twi n Ai r

Calyps o "anticipate[d ] n o pre-operatin g cost s beyon drequiremen t

o f curren t operations. " W e not e that

ther e ar e cost s associate dwith goin g fro mon-deman dt o schedule d service. Whil e thes e pre-operatin g cost s ma y b e covere db y existin g operation s - an d therefor e woul dno t

b e include di n ou r

financial fitnes s tes t

- ai r carrier s shoul d identif y thes e costs . a . Fo r example , wha t

ar e th e cost s associate dwith bringin g Twi n Ai r Calypso' s on-deman dOperation s Specification s t o schedule dOperation s Specifications ? b . Similarly , i n you r

Octobe r 20 , 201 1 response , yo u state dthat "[o]nl y on e o f th e tw o aircraf

t currentl y i n refurbishmen t i s neede dfor

th e propose d operation s i n thi s filing . Fund s ar e bein g generate dfromcurren t operation s t o accomplis h th e require dwork. " I f thi s refurbishmen t

i s require da s part

o f Twi n Ai r Calypso' s pre-operatin g work , i t shoul db e include da s part o f th e pre-operatin g cos t

forecast . Pleas e specif y eac h aircraf

t (typ e an dFA A registratio n number ) an dth e cost s associate dwith eac h aircraft . c . You r statemen t

shoul daddres s i n detai l ho w an dt o what exten t an y pre operatin g expense s expressl y associate dwith th e service s include di n thi s applicatio n hav e bee n o r

wil l covered . 3 . In it s application . Twi n Ai r Calyps o provide dfirst-yea r expenses . O n Septembe r 1 6 201 1 w e conclude dthat

thos e expense s se t

fort h o n pag e 2 5 di dnot

appea r t o hav e pro-rate dal l expense s betwee n Twi n Ai r Calypso' s curren t

on-deman doperation s an d it s propose dschedule dpassenge r operations . Base do n this , w e wer e unabl e t o determin e whethe r

Twi n Ai r

Calypso' s first-year

expens e forecas t

i s reasonable . W e tiien aske dTwi n Ai r

Calyps o t o provid e arevise dprofi t an dlos s statemen t

specificall y broke n dow n b y month o r b y quarter , an dthat , at

aminimum , allocate s th e indirec t expense s o n arationa l basi s betwee n it s propose dschedule dpassenge r operation s an d it s othe r operations , alon g wit

h appropriat e explanations . Th e financial informatio n provide do n Octobe r

20 , 2011 , i s no t

sufficientl y detaile dt o allo w u s t o evaluat e thi s forecast . Pleas e submi t

revise dforecasts , broke n dow n b y month , whic h mee t th e followin g criteria :a . Th e 'Projecte dProfi t an dLos^ ' statement s fo

r ne w schedule dservice , charte r (cuiTent) operations , an dcombine doperation s shoul dinclud e th e sam e categorie s use di n Twi n Ai r Calypso's'Profi t

an dLos^ ' statemen t

a s o f Jun e 30 , 201 1 an dfollo w asimilar format . Specifically , both revenu e an dexpense s shoul db e broke n int o sub-categories , includin g but no t limite dt o (a ) type s o f revenue , (b ) type s o f

aircraf t costs , (c ) type s o f

statio n costs , an d(d ) type s o f transien t fees . Pleas e se e th e exampl e statemen t show n i n Appendi x 2 . b . Th e different

calculatio n method s shoul dals o us e th e sam e revenu e an d expens e t5^es . Fo r

example , 'Financia l an dRout e Analysi s Metho dT show s 'Aircraf t Costs|"Transien t

Costs)'and'Operatin g Expense^'while'Financia l an d Route Analysi s Metho d2'shows'Fligh t Cost^'and'Dperatin g Expensd' . 4 . You r

Octobe r 20 , 201 1 respons e include dAvStar Aviation' s Jun e 30 , 201 1 10-Q , whic h state dthat"[s]inc e it s inception , [AvStar Aviation ] ha s suffere drecurrin g losse s fro moperation s an dha s bee n dependen t o n existin g stockholder s an dne w investor s t o provid e cas h resource s t o sustai n it s operations! ' Thi s report als o note s that"[flo r th e si x month s endin g Jun e 30 , 201 1 th e operatin g entitie s o f Twi n Ai r Calyps o Limite dan dTwi n Ai r Calyps o Service s generate dane t profi t o f approximatel y $29,000.00 . Th e consolidate dlos s wa s generate dfro mexpense s o f th e no n performin g oi l an dga s lease s an dinteres t fro mlegac y debt . Thes e condition s rais e substantia l doub t abou t ou r ability t o continu e a s agoin g concern! ' Pleas e explai n th e impac t o f AvStar Aviation' s continuin g losse s o n th e financial resource s availabl e t o Twi n Ai r Calyps o for

it s schedule dservic e operations . Note : Unti l w e ar e abl e t o determin e tha t th e pre-operatin g an dfirst-yea r forecast s provide dar e reasonable , w e carmo t determin e wha t

leve l o f fundin g Twi n Ai r

Calyps o wil l requir e t o mee t

th e Department s financial fitnes s standard . COMPLIANC E DISPOSITIO N Th e informatio n provide dpursuan t t o thi s Informatio n Reques t shoul db e accompanie d b y th e followin g certification : Th e content s o f

thi s applicatio n an dth e attache dexhibit (s ) ar e tru e an dcorrec t

t o th e bes t o f my knowledg e an dbelief. Pursuan t t o Titl e 1 8 Unite dState s Cod e Sectio n 1001 , I [th e individua l signin g th e application , wh o shal l b e aprincipa l owner , senio r

officer , o r

interna l counse l o f

th e applicant] , i n my individua l capacity an da s th e authorize drepresentative o f th e applicant , hav e no t

i n an y manne r knowingl y an dwillfull y falsified , conceale do r faile dt o disclos e an y materia l fac t

o r mad e an y false , fictitious , o r fraudulent

statemen t

o r knowingl y use dan y document s whic h contai n suc h statement s i n connectio n with th e preparation , filin g o r

prosecutio n o f

th e application . I understan dtha t a n individua l wh o i s foun dt o hav e violate dth e provision s o f 1 8 U.S. C sectio n 100 1 shal l b e finedo r

imprisone dnot

mor e tha n fiv e years , o r

both .

### APPENDIX 1 - Emai l From : Best . Alet a (OST t To : Clayto n Gambe r Cc : Remo . Laur a (OST ^ Subject : RE : Twi n Ai rCalyps o Limited , Inc . DOT-OST-2011-014 3 Date : Wednesday , Septembe r21 , 201 1 12:31:1 5 P M Good afternoon , Mr . Gamber , Than k yo u fo ryou rquestio n regardin g th e Department s letter , date d Septembe r16 , 2011 , i n whic h w e requeste d additiona l informatio n i n orde rt o proces s Twi n Ai rCalyps o Limited , Inc. s applicatio n fo rCommute rAi rCarrie rauthority . Questio n # 4 unde rth e heade rCorporat e Structur e an d Ownershi p aslc s fo rinformatio n fo r stoclcholder

s o f AvSta rAviatio n Group , Inc . (AvStar) . Please provid e thi s information , includin g informatio n requeste d i n subpart s a , b , c , an d d , fo reac h individua l o rentit yholdin g a t leas t fiv e (5 ) percen t o f AvStar

s shares . Sincerely , Alet a Best Origina l Messag e From : Clayto n Gambe r rmailto:claytonaamber(amsn.com ] Sent : We d 9/21/201 1 8:4 0 A

M To : Best , Alet a (OST) Subject : Twi n Ai rCalyps o Limited , Inc . DOT-OST-2011-014 3 Good Morning , I have reviewe d th e Department' s lette ro f Septembe r16 , 201 1 regardin g th e nee d fo r additiona l information . Please clarifypoin t # 4 unde r"Corporat e Structur e an d Ownership" . A s a publicall ytrade d compan yAvSta rhas ove r50 0 shareholders , wha t i s th e threshol d percentag e o f stoc k ownershi p tha t yo u requir e th e additiona l information ? I n 4 a . yo u us e 10 % a s a threshol d fo rcorporations , i s thi s th e sam e fo rindividuals ? Clayto n Gambe r President/Directo ro f Maintenanc ee < u S < u 

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