U.S. Department ofTransportation Office of the Secretory ofTronsportoticn



### Mr. C. Joy Journeay Alaska Air Carriers Association 2301 MetTil! Field Drive, Suite A.-3 Anchorage. Alaska 99501 DearMr. Journeay: Assistant Secretary

f"'l • IL 

### March 19, 2012 

### !"1 

## ,!\ 

## !!: lb 1200 Now Jersey Avenue. SE Washlng1on, DC 20590



### Thank you 

### fm· your letter cot1ccn1ing 

### the U.S. Department ofTranspmtation's (Department) citizenship investigation of 

### VIH Cougm Helicopters, Inc. 

### (VIH Cougar). On March 12, 2012, the Department issued Order 2012-3-7tentativety tlnding that 

### VIH Cougar 

### is not a U.S. citizen as defined in 49 U.S.C. 

### § 401 02(a)( 15) and proposing to cancel its 

### air taxi authority. fnterested parties aw provided 21 days from the date of its 

### issuance to 

### file objections to the Department's tentative findings. Access to the docket is available by entering the docket number, DOT-OST-2012-0022, into the simple search function at the Department's Docket Management System (OMS) website, which is http://www.regulations.gov. Finally, since .this matter 

### is pending, 

### I am unable to comment on the merits of

### VIH Cougar's submissions. 

### I assure you, however, that the Dc1ntrtment will give 

### full consideration to 

### all comments on the record in the docket.
As 

### is our normal practice, I am placing 

### a copy'ofyour letter and 

### this response 

### in Docket

### DOT~OST-2012-0022 as a contact outside the recm·d ofthis matter. I 

### appreciate your interest in this proceeding. Sincerely yours.



### Susan L. Kurland Assistant Secretary for Aviation and 

### International Affairs

## ALASKAAIR CARRIERS ASSOCIATION 2301 Merrill Field Drive, Suite A·3 Anchorage, Alaska 99501 907·277·0071 907·277·0072 fax Boardof Directors 2011-2012
MikeStedman, President

ALASKA SEAPlANES

SusanHoshaw. VIce President EVERTSAIRALASKA MaryHefty. Secretary

ALASKAAIRliNES DennySeyben. Treasurer PENAIR JerryRock. PastPresident JANSSEN

.CONTRACTING CO. DavidBorder CAlEDONIAN INSURANCEGROUP. INC. DannyDavld$Qn DAVIDSONAVIATION BobHa}dukoVich FRONTIERF£ YING SERVICE. INC. CflrlsMatthews WRIGHT AIRSERVICE MikeMorgan WARBE£0WS AIR VENTURES Wi!lredRyan

RYANAIR Brien Salazar TAQUANAIR JerryWOrtley AIRSURE./NC.
Executive

Director C. JoyJoumeay

ALASKAAIR

CARRIERS ASSOCIATION 12 February 20 12

Ms. Susan L. Kurland Assistant Secretary ofTransportation for Aviation & International Affairs United States Department ofTransportation 1200 NewJersey Avenue, SE Washington, DC 20590 Via email to susan.kurland@dot.gov; susan.l.kurland@dot.goy; and faac@dot.goy 

### SUBJECT:VIH Cougar Helicopters, Inc./ Foreign Operators in the U.S.
Dear Secretary Kurland: Petroleum Helicopters, Inc (PHI) challenged the operations ofVIH Cougar Helicopters, Inc. (VIH Cougar) .in the United States (Alaska, the West Coast, and the GulfofMexico). We represent certificated air carriers and concur with the sentiments expressed in this letter. Since 1966 the Alaska Air Carriers Association (MCA) has represented the interests ofaviation businesses in Alaska. Our 150 members own, operate, and service aircraft. providing for the needs ofthe traveling public through scheduled commuteroperations, aircraft maintenance, flight tours, onMdemand air charters, fuel sales, parts sales, storage, rental, airline servicing, flight training, and emergency medical evacuation. 

### In your October 6, 20

### II letterto counsel forVIH Cougar Helicopters, Inc, (VIH Cougar) concerningtheir status as a Part 298 

### Air Taxi Operator you cited "overwhelming evidence'' thatVIH Cougaris not in compliance with the requirements ofthe Federal Aviation Act that certificated airline operators be citizens ofthe United States. US air carriers have long maintained and you finally concludedthat although VIH Cougar theoretically complies with the numerical ownership requirements ofthe statute, it is not under the actual control ofcitizens ofthe United States.· You note four reasons, including: • the agency relationship ofMr. Steeper by Mr. Nourie, • the provision oftechnical and operational services and equipment by the VIH Group to VIH Cougar, • contractual relationships among the VIH Group and VIH Cougar, and, • tellingly, information discrepancies provided to the Department. Additionally, VIH Cougar officials have made public statements revealing thatcompany's Canadian ties. Each one ofthese alone would be grounds for a finding on nonMcompliance, buttogether they show a premeditated and willful lack ofcompliance disposition as well as nonMcitizenship. During the entire period ofthis investigation VIH Cougar has continued to compete unfairly with U.S certificated operators. VIH Cougar has been the beneficiary ofits illegal relationship with the VIH Group atthe expense ofU.S. companies. Since October 6, 20 II, VIH has continued to do business.

Existi11g ttl**fi1.~ter** aml.mpportastable commercialtll'iatimt imlllslr)'formtfedupon tilepriudples ofs(lfe(ll,profe.f,,imwlism (llttllmtge••it)• 

### M1-120314-00412 February 20 12 USDOT, Canadian Operators in the US Page two

While US certificated operators appreciates the Department's very thorough review ofthe allegations against VIH Cougar, we believe that thetime has come to stop VIH Cougar's, and otherforeign entities, lengthy history offlaunting the citizenship requirements and competing unfairly against U.S. citizen operators

.. As the 

### VIH Group remains in control of

### VIH Cougar almost three months afterthe 30-day deadline for compliance included in your October 6, 20

### II letter, we respectfully request that immediate action be taken to bring an end to this illegal situation. We urge the Departmentto move quickly and openly to end this situation, which has gone on for several years. 

### VIH Cougar should not be allowed to continue to engage in unlawful competition that disadvantages U.S. citizen operators as itdelays compliance with U.S. law to maximize its ill-gotten gains. VIH Cougar should not be allowed to continue to operate in the United States unless it has met the requirements ofthe Federal Aviation Act that certificated airline operators be citizens ofthe United States. The Department's.recent Notice ofProposed Policy Clarification for the Registration of Aircraftto U.S. Citizen Trustees in Situations Involving Non-U.S. Citizen Trustors and Beneficiaries, Federal Register Feb 9, 2012 indicates the serious concern the Department is showingwith regard to assuring close regulatory oversight ofU.S. registered aircraft and operations. Likewise, in this matter, the operator has persistently evaded statutory requirements for actual citizen control. Just as the Department is taking action to assure that regulatory oversighton leased US registered aircraft is not avoided through complex ownership instruments, the Department should move to quickly close down 

### VIH Cougar's evasion ofthe statute. We believe that there is no public policy that can be served any longer by shielding VIH Cougar's citizenship status from the public. Having made the preliminary findings based on "overwhelming evidence," we respectfully request thatthe Department bringtransparency to anyfurther proceedings in this matter. The Department's informal proceedings may have public policy benefits in enabling operators to arrange their citizenship affairs privately when they are seeking to comply with the law, but that does not apply in this case. Here, VIH Cougar circumvented the law in a calculated manner and did not merely seek to ascertain the limits ofthe citizenship requirements. Instead, it established, and long operated under, an egregious scheme which violated the citizenship requirements and engaged in deception to do so. As U.S. citizens, we are entitled to transparency and open government in matters of regulatory compliance. Any efforts bythe Department to ensure that

### VIH Cougardivests and restructures should be open, transparent and public.

# ~ C.joyjourneay, Executive Director for

## J. Michael Stedman, President Cc: Ray LaHood, Secretary ofTransportation via email to robert.letteney@dot.gov Representative Don Young, via email to scott.leathard@mail.hoyse.gov Senator Lisa Murkowski, via email to warren,wright@murkowski.senate.gov Senator Mark Begich, via email tojames feldman@begich.senate.gov · Governor Sean Parnell, via email to randall.ruaro@alaska.gQY; russ.kelly@alaska.gov



### X1-120314-004