### 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 

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## Thank you for your letter concerning the U.S. Department ofTransportation's (Department) citizenship investigation ofVIH 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 ofits 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 ofVIH 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 ofyour letter and this response in Docket DOT-OST-2012-0022 as a contact outside the record ofthis matter. I appreciate your interest in this proceeding.



## . X1.120315-001 Sincerely yours,**'** 

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Susan L
. Kurland Assistant Secretary for Aviation and International AffairsMs. Susan Kurland Assistant Secretary ofTransportation for Aviation & International Affairs United States Department ofTransportation 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 ofVIH Cougar Helicopters, Inc
. (VlH Cougar) in the United State:> (Alaska

. the West Coast. and the GulfofMexico). As u certificated air carrier Iconcur 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 ofthe 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~**  ofthe statute, 

### it is not under 

### the actual 

### control ofcitizen!'\ 

### ofthe United States. You note four 

### reasons. including: • the agency relationship of

### Mr
. Steeper by Mr. Nourie, • the provision oftechnical 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 ofthese alone would be grounds for a flnding on non-complinncc, but together 

### they show a premeditated and willful lack ofcompliance disposition as well as non· citizenship. During the entire ptriod ofthis investigation VIH Cougar has continued to compete unfairly with U
.Scc:nilicated operators
. VfH Cougar hns been the**~neticiary** ofits 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 ofwhatever restructuring it may otTer to the Dcpurunent. While US certificated operators appreciates the**Depanment·~** very thorough review ofthe 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 ofVIH 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 ofthe 

### 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 

### orU.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**