U.S. Department 

of Transportation 

Office of the Secretary 

of Transportation 

Mr. James W. Acher 

Northern Pioneer Helicopters 

P.O. Box 520670 

Big Lake, Alaska 99652 

Dear Mr. Acl1er: 

Assistant Secretary 

~larch 19, 2012 

: ·._ -- _-: !. ;\ T C;F 

: :~ iT ::,i : ;y,j 1200 New Jersey Avenue. SE ._. .. - . ' . ' : --' ' 

• .. :··,::; ..:~: ;'.i :r ;. •.: Wash.ngton. DC 20590 · ·' ---' ..... ; ... : I! 1! ... ./. , .,_. 

. . ., . ' ,·· . ., . . '. 0 ) i .• ~ . . i / {_ --- ~-~. . _} 

Thank you for your letter concerning the U.S. Department of Transportation's (Department) 

citizenship investigation of VIH Cougar Helicopters, Inc. (VIH Cougar). 

On March 12,2012. the Department issued Order 2012-3-7 tentatively finding that VIH Cougar 

is not a U.S. citizen as defined in 49 U.S.C. § 40102(a)( 15) and proposing to cancel its air taxi 

authority. Interested parties are provided 21 days from the date of its issuance to file objections 

to the Department's tentative tindings. 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 

ivfanagement System (OMS) website, which is http://w\vw.regulations.gov. 

Finally, since this matter is pending, I am unable to comment on the merits of VIH Cougar's 

submissions. I assure you. how·ever. that the Department will give full consideration to all 

comments on the record in the docket. 

As is our normal practice, I am placing a copy of your letter and this response in Docket 

DOT-OST-2012-0022 as a contact outside the record of this matter. I appreciate your interest in 

this proceeding. 

. X1.120315-001 

Sincerely yours, 

' 

\ ;// ) 

~it~~r~ Susan L. Kurland 

Assistant Secretary for 

Aviation and International Affairs 
Ms. Susan Kurland 

Assistant Secretary of Transportation for Aviation & International Affairs 

United States Department of Transportation 

1200 New Jersey Av\!nue, SE 

Washington. DC 20590 

Via email to ~!!l!l!!lJWrl!!n!,ltu)d.Qt~; lli.."i'O.l.kurlanslf4NQ.t.JW.Y: (a;!!.>"Oldo!.lliD: 

SUBJECT: VIH Cougar Helicopters, Inc./ Foreign Operalon Competing with AmericaJU 

Dear Secretary Kurland: 

Petroleum Helicopters. Inc (PH l) challenged tht Op.!rations of VIH Cougar Helicopters, Inc. 

(VlH Cougar) in the United State:> (Alaska. the West Coast. and the Gulf of Mexico). As u 

certificated air carrier I concur with the sentiments expressed in thi~ letter. 

ln your October 6, 201 J letter lo counsel for VIH Coug11r Hellcoptns, Inc, (VIH Cougar) 

concerning their status u a Part 298 Air Taxi Operator you cited "overwhelming 

evidence" that VIH Cougar is not in compliance with the requirements of the Federal 

Aviation Act that eutificated airline operators be chi7.ens of the United States. 

US air carriers have long m11intnined and you finally concluded that although VIH Cougar 

thc:o~tically complies with the numerical ownc:r~hip requirement~ of the statute, it is not under 

the actual control of citizen!'\ of the United States. You note four reasons . including: 

• the agency relationship of Mr. Steeper by Mr. Nourie, 

• the provision of technical and oper11tional services and equipment by the V!H Group to 

VIH Cougnr. 

• contractual relationships among the VHI Group and VIH Cougar, and. 

• tellingly, information discrepnncics provided to the Department. 

Additionally, VIH Cougar officials have made public statement~ revellling that company'~ 

Canadian ties. Each one of these alone would be grounds for a flnding on non-complinncc, but 

together they show a premeditated and willful lack of compliance disposition as well as non· 

citizenship. 

During the entire ptriod of this investigation VIH Cougar has continued to compete unfairly with 

U.S cc:nilicated operators. VfH Cougar hns been the ~neticiary of its illegal relationship with 

the VlH Group at the eKpcnse of U.S. companies. Since October 6, 2011, V!H has continued to 

do business without any apparent change. rr anythin!\. it is now incc:ntivited to seek additional 

mr.vkc:t 3hare as part of whatever restructuring it may otTer to the Dcpurunent. 

While US certificated operators appreciates the Depanment·~ very thorough review of the 

allegations against YIH Cougar, we believe that the time has come to stop VlH Cougar's, und 

other foreil!l' entities. lengthy hi:story of naunting the citizenship requirements and comptting 

unfairly against U.S. citizen operators. As the VIH Group rcm11ins in control of VIH Cougu 

almost three month~ after th~ 30-day dtadlinc for compliance included In your October 6, 

2011 letter, we respectfully request thllt immediate ~o~ction be taken to bring lln end to this 

illccal situation. 
We urge the Oep.rtment to mo,·c quickly and openly to end this situation, which bas cone 

on f'or several years. VIH Cougar should not be allowed to continue to engage in unlaw(ul 

competition that disadvant11gcs U.S. citU.~n operAtors 1u it dch•y~ compliance with U.S. law 

to maximize its ill-gotten gains. VIH Cougar should not be allowc:d to continue to operate in the 

United States unless it has met the requirentl!nl! of the Federal Aviation Act that ceniticated 

airline operators be citizens of the United States. 

The Department's recent Notice or Proposed Policy Clarification ror the Rc:giatratlon or 

Aircraft to U.S. Citizen Trustees in Situations Involving Non-U.S. Citizen Trustors and 

lanefidartes, Federal Retister Feb 9, 2012 indicates the •crlous concern tbe Department Is 

showing with reand to assuring clolle regulAtory oversight or U.S. registered aircraft and 

opentlons. 

Likewise, in this matter. the operator has persi~tently evaded statutory requirements for actual 

citizen control. Just as the Oep11rtment is taking action to 11Ssure that regulatory oversight 

on luted US registered aircrart i• not avoided through complex ownership Instruments, 

the Department should move to quickly close down VIH Cougar's evasion or the statute. 

We believe that there is no public policy that can be served any longer by shielding VIH 

Cougar's citizenship statu:; from the public. Having made the preliminary findings based on 

"overwhelming evidence." we respectfully request that the Department brio& transparency 

to any further proceedings in this matter. The Department's informal proceedings may have 

public policy benefits in enabling operators to arrange their citizenship atTain 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 of 

the citizenship requirements. Instead, it established, and long operated under, an egregious 

scheme which violated the cilizenship requirements und engaged in deception to do so . 

iU U.S. citizens, we are entitled to transparency and open government in mailers of 

regulatory compliance. Any ~rrurts by the Department to ensure that VIH Cougar divests 

and restructures should be open, transparent and public. 

Cc: Ray LaHood, Sc.:rctary ofTrunsponation ,·ia email to ll>l"J.~t.lellcney'iiluol.i:9V 

Representative Don Young. vin email to swtt.lcalhardrwmail..bQ.I!.KJ!.2Y 

Senator Lisa Murkowski, via email to wnrrcn.wri&ht@murkoWlikj.senate,gov 

Senator Mark Begich, via email to i<~mes li::luman@bc!!.ieb.S!.:natc,gov 

Governor Sean Parnell, via email to rangaii.[U!lro@alaska.g.o_y; rus~.kdly@alaska.gov