U.S. Department of Transportation Office ofthe Secretary OfTransportation

November 9, 2012

Mr. John Swasey President ExecAir, Inc. ofNaples 160 13th StreetNW Naples, FL 34120 DearMr. Swasey: •· .- I**~;** 1 :: L .. ' .-:**~ !'-,..··1.·~~-~**  i!\; ·(

. .'j'·. 1200 NewJerseyAve., S.E. Washington, DC 20590

This letter is in reference to the amended application of Exec Air, Inc. of Naples (''ExecAir") filed in Docket DOT-OST-2007-27815 on July 6, 2011, for commuter air carrier authority. We have completed our review ofthe information Exec Airhas filed in support of its request for commuter authority. This review has revealed the need for additional and/or clarifying information before we can complete processing Exec Air's application. We note that some ofthis information was previously requested, and has not been satisfactorily answered.
.While the Department does closely work with applicants through the application process, it is not our policy to keep incomplete applications open indefinitely. The attached Information Request lists the areas where further and/or clarification information is necessary. I ask that you respond fully to this request within 30 days ofthe date ofthis letter, that is, December 10, 2012. You may upload your response via the web atwww.regulations.gov, or you may mail your response to U.S. Department of Transportation Dockets, West Building, GroundFloor, (M-30, Room Wl2-140), 1200New Jersey Avenue SE, Washington, D.C. 20590. In either case, yourresponse should befiled in DocketDOT-OST-2007-27815. As is the Depatiment's practice, further processing of Exec Air's application will be deferred pending receipt of this material. In addition, please remember that Exec Air should promptly provide the Department with any information regarding changes it may undergo in areas affecting its fitness 

### (i.e., management, operating plans or financial condition, compliance disposition, or ownership) while its application is under review by the Department. Ifyou have any questions regarding this letter, please feel free to contact Katy O'Toole of my staffat (202)-366-9721 or Catherine.O'Toole@dot.gov.Chief: AirCarrierFitness Division OfficeofAviationAnalysis

cc: DocketDOT-OST-2007-27815 Mr. Sergio Lopez, FAA Mr. FelixMolina, FAA POI for Exec Air, Inc. 2Please providethefollowing: 

## Information Request Exec Air, Inc. ofNaples

1. The balance sheet Exec Air last provided was dated December 2007. A copy ofExec Air's balance sheet, current'towithin 3months ofthe date ofthis letteris required. 2. Income Statements for Exec Air for thepastthree calendarorfiscal years. Please do not provide U.S. IncomeTax statements. 3. Pursuant to 204.3(t)(l) : a forecast balance sheet for the first normal year ending after the initiallyproposed operations have been incorporated. 4. A statement identifying the person who has prepared the financial statements and a summaryofthe individual's qualifications for preparing such statements. 5. A statement as to whether the balance sheet and income statements were prepared in accordancewith GenerallyAcceptedAccounting Principles. 6. A list of pre-operating costs, such as legal fees, deposits, and Federal Aviation Administration (FAA) certification fees. 7. Third-party verification, such as a letter from a bank, ofthe cash that Exec Air has on depositwith its financial institution(s). 8. A detailed description ofthe plans Exec Air has, ifany, to acquire additional capital to meetthe Department's financial fitness requirements. 9. Exhibit 9, which is a letter to the FAA regarding Exec Air's intent to operate, is unclear. Pleaseprovide a copy ofthe Pre-Application Statementoflntentthat ExecAir has filed with the FAA for commuter air carrier operations that clearly outlines Exec Air'splanned commuter operation including day ofweek andtime ofdayinformation.
Pleaseaddress the following questions: 10. With respect to its forecast expenses, Exec Air prepared a summary of its projected "Corporate Headquarters" expenses. These projections show Exec Air's ChiefPilot and its Director ofMaintenance earning a wage of$1.44 perhour. Also, the projection shows the Director ofOperations earning a wage of$5.77 per hour. These wages are significantly below the Floridaminimum wage rate of$7.31 per hour. In its December 2011 response to this question, Exec Air noted that these employees also draw2 additional pay when flying or maintaining aircraft. Please account for this additional pay and providerevised projections ifnecessary. 1 11. The expenses for employee taxes and benefits appear to apply only to the three individuals that Exec Air intends to hire and not to the Chief Pilot, Director of Maintenance, and Director ofOperations. Please explain how Exec Air accounts for employeetaxes and benefits for these above-mentioned employees. 12. Accordingto Exec Air'sMonthly Cost Analysis, the company expects to incurvariable aircraft costs of$400 permonth. In Exec Air's December 2011 response, this question does not appearto have been answered. Please state what is included in these variable costs and describe the underlying assumptions used as a basis for determining this amount. 13. Some ofthe mathematical calculations for Exhibit 6 are not readily understandable. Please provide this data in spreadsheet format in order for the Department to fully analyze it. 14. In our request for information to Exec Air in September 2011, we noted that in the Monthly Cash Analysis, the air carrier's list ofprojected airport fees indicated that it does not expect to incur any "GPU/station rental" expenses and asked for an explanation. In Exec Air's response, it appears that that information is now deleted. Please explain how Exec Air intends to provideground powerfor its aircraft. 15. Exec Air's financial projections to do not vary, that is, increase or decrease, from month to month. Generally, air carriers experience f1uctuating monthly expenses depending on when the company expects to incur various expenses such as aircraft maintenance, employee training, or insurance payments. Likewise, air carrier revenues generallyfluctuate with changes in demand periods. Please explain why Exec Air does not expect its monthlyrevenues and expensesto fluctuate. 16. In evaluating anew entrant applicants' financial fitness, the Department generally asks that those applicants have resources sufficient to cover all pre-operating costs and any negative working capital balance, plus a working capital reserve equal to the operating costs that would be incurred in three months ofnonnal commuter operations. Exec Air's total first year projected expenses as stated in Exhibit 6, page 6 of7, indicates total operating expenses of $154,284. To meet the Department's financial fitness requirement, Exec Air would have to show that it has access to capital equal to 3 months of normalized operations which would be $ 38,571. Please discuss Exec Air'splans for satisfying the Department's capital requirements.

IfExec Air is exempt fi·om the Floridaminimum wage rate, please provided a detailed explanation ofthebasis ofthe exemption.