BEFOR E TH E DEPARTMEN T O FTRANSPORTATIO N OFFIC E O FTH E SECRETAR Y WASHINGTON , D.C . •••'OR' ^

Applicatio n of

: CARLSBAD-PALOMA RAIRLINES , INC. , dba : Californi aPacifi c Airline s Fo r acertificat e of

publi c convenienc e an dnecessit y Pursuan t t o 4 9 U.S.C . 4110 2 to engag e i n Schedule d Foreig n Ai r

Transportatio n of

persons , propert y an dcargo . DOCKE T NO . pcT-oST-^o( o _o/z ^

APPLICATIO N O F CARLSBAD-PALOMA RAIRLINES , INC . Communication s wit

h respec t to thi s documen t

shoul db e sen t

to : Margi e Holmstrom , Vic e President-Administratio n Carlsbad-Paloma r

Airlines , Inc . 567 0 E l Camin o Real , Suit e D Carlsbad , C A 9200 8 Telephone : 760-710-040 1 Email : mholmstrom@flycpair.co m

Dated : May 4 , 201 0

An yperso n wh o wishe s t o suppor t o roppos e thi s applicatio n mus t fil e a n answe rwithi n 2 1 day s afte r receip t o f th e applicatio n b yth e Departmen t o f Transportatio n an d serv e tha t answe ro n al l person s serve d wit h thi s application .BEFOR E TH E DEPARTMEN T O FTRANSPORTATIO N OFFIC E O FTH E SECRETAR Y WASHINGTON , D.C .

Applicatio n of

: CARLSBAD-PALOMA RAIRLINES , INC. , dba : Californi aPacifi c Airline s Fo r acertificat e of

publi c convenienc e an dnecessit y Unde r 4 9 U.S.C . 4110 2 t o engag e i n foreig n schedule dai r transportation . DOCKE T NO .

APPLICATIO N O F CARLSBAD-PALOMA RAIRLINES , INC . CARLSBAD-PALOMA RAIRLINES , INC. , submit s thi s applicatio n for acertificat e of

publi c convenienc e an dnecessity authorizin g foreig n schedule dai r transportatio n pursuan t

t o sectio n 4110 2 of Titl e 4 9 o f

th e Unite dState s Cod e ("th e Statute") . I n support

of it s application , CARLSBAD-PALOMA RAIRLINES , INC. , state s th e following : Applican t i s acorporatio n organize do n Jul y 20 , 2009 , unde r th e law s o f

th e Stat e of

California . It s address , telephon e an dfax numbers , an demai l are : 567 0 E l Camin o Real , Suit e D Carlsbad , C A 9200 8 Telephone : 760-710-200 0 Email : mholmstrom@flycpair.co mApplican t

i s acitize n o f

th e Unite dState s a s define di n Sectio n 40102(a)(15 ) o f th e Statute . Th e Chie f

Executiv e Officer

o f th e company i s Theodor e L . "Ted " Vallas , wit h ownershi p interes t i n Carlsbad-Paloma r

Airlines , Inc. , at

100% . It s Director s andke y personne l ar e U.S . citizens . Th e Director s of th e compan y are a s follows : Theodor e L . "Ted " Vallas , Chie f Executiv e Officer Theodor e G . "TG " Vallas , Corporat e Secretar y Theodor e L . "Ted " Vallas , Chie f Financia l Officer Thoma s Morrow , BoardMembe r Honorabl e Victo r

Ramirez , Boar dMembe r Th e applican t

i s newl y forme dan drequest s authorit y t o engag e in foreig n schedule dai r transportatio n of

persons , property , carg o an dmai l a s follows : Th e schedule dairlin e rout e syste mwil l primaril y b e poin t to point , fro mCarlsbad , Californi ato : Cab o Sa n Lucas , Mexico ; utilizin g Embrae r 17 0 aircraf

t wit h 6 8 passenge r sea t capacity . Th e airlin e wil l offe r competitiv e fare s o n al l of it s route s an dwil l positio n itsel f i n th e eye s of

th e consume r

a s bein g alo w fare carrie r i n it s selecte dmarkets . Concurren t

wit h thi s application , Californi aPacifi c Airline s i s filin g aseparat e applicatio n fo r

authorit y to engag e i n interstat e schedule dair transportatio n o f

persons , property , carg o an dmai l to : Oakland , California ; San Jose , California ; Sacramento , California ; Phoenix , Arizona ; La s Vegas , Nevada ; utilizin g thre e Embrae r 17 0 aircraf

t with 6 8 passenge r

sea t capacity . Th e airlin e wil l offe r competitiv e fare s o n al l o f it s route s an dwil l positio n itsel f in th e eye s o f

th e consume r

a s bein g alo w far e carrie r in it s selecte dmarkets . Additiona l informatio n i n suppor t o f th e applicant' s propose dforeig n ai r transportatio n operation s i s include dunde r Servic e Proposal . Informatio n i n suppor t

o f th e applicant' s fitnes s t o conduc t th e propose dair

transportatio n operation s i s containe di n th e section , Financia l Fitness . Currently , applican t

i s seekin g authority t o engag e i n interstat e ai r transportation . Informatio n i n suppor t of th e applicant' s fitnes s t o operat e ha s bee n include dwith tha t applicatio n an di s incorporate dby referenc e here .Th e content s of thi s applicatio n andth e attachment s ar e tru e an dcorrec t t o th e bes t

o f my knowledg e an dbelief . Pursuan t to Titl e 1 8 Unite dState s Cod e Sectio n 1001,1 , Theodor e L . "Ted " Vallas , i n my individua l capacit y an da s th e authorize drepresentativ e o f th e applicant , hav e no t i n an y manne r

knowingl y andwillfull 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 fraudulen t

statemen t

o r knowingl y use dany document s whic h contai n suc h statement s i n connectio n wit h th e preparation , filin g o r prosecutio n o f

th e application . I understan dtha t an 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 fine do r imprisone dno t

mor e tha n fiv e years , or both . Submitte dby , Date:>^/'^3/; 0 Theodor e L . "Ted " Valla s Chie f Executiv e Officer Attachment s [exhibit s an dinformatio n require dunde r Sectio n 204.3 ]CERTIFICAT E O FSERVIC E

1 hereb y certif

y that I hav e o n thi s day serve dth e foregoin g applicatio n for foreig n schedule dai r transportatio n authority b y firs t clas s mail , postag e prepaid , upo n th e person s show n i n th e followin g servic e list . Theodor e L . "Ted " Vallas , Chie f Executiv e Officer 

## 3/^3// 0 Dat e o f Servic e SERVIC E LIS T 1 . Tyron e A . Park , Manage r - Federa l Aviatio n Authority , Fligh t Standard s Distric t

Office , 852 5 Gibb s Drive , Suit e 120 , Sa n Diego , C A 9212 3 2 . U.S . Ai r

Carrier s an dCommute r

Ai r Carrier s servin g Mexic o 3 . La s Cabo s Airport

Authority , Carreter aTranspeninsular , s/ n k m43. 5 Zip . 23420 , Municipi o d e Lo s Cabos , B.C.S . Mexic o