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August 7, 2012 

Re:Docket DOT -OST -2010-0126 

Carlsbad-Palomar Airlines Inc dba California Pacific Airlines 

Certificate of public convenience and necessity 

DOT, 

Carlsbad Palomar Airlines' grant of authority expires on August 25, 201 2. This letter is requesting 

extending that authority to allow us to complete our 121 certification with the FAA 

We continue to move forward in our 121 application. Below are events and milestones that will give you a 

clear idea of where we are in the process and the approximate additional time we require. 

On September 9. 2011 we successfully completed our formal application meeting with the local 

FSDO and our application was accepted. 

One of the requirements to move to Gate 2, design assessment, was the purchase or lease of an 

aircraft. The lease for our first aircraft was signed on Oct 15, 2011 and we entered into Gate 2, 

design assessment. 

On November 28, 2012 we received a letter from our FSDO raising questions about the 

EM8170's ability to perform safely at Carlsbad Palomar airport. Our 121 application was put on 

hold until this matter was resolved. Following a presentation by our management team to the 

Western Region the aircraft was deemed able to perform. This delayed our application by nearly 

3 months and prevented us from local stock sales and or moving forward with the institutional· 

raise during this period 

On Feb 7,2012 our manuals sets were delivered to the FSDO. 

On May 4, 2012 we received our first pass back from the FSDO with initial comments on our 

manuals. 

• We will be sending Rev 8 or our updated manuals to the FSDO by August 4, 2012. We expect 

them to take up to 90 days for their next review. 

On July 6, 2012 our first aircraft was delivered to Palomar airport with press and well wishers 

present. There is great anticipation by this community for our airline, both for the jobs it creates 

and for the traveling options it presents. The aircraft presence at the airport will benefit the sale 

of stock both locally and with our $30-50 million fund raising efforts with institutional investors. 

We expect to move to Gate 3, performance assessment, before the end of the year. 

Other relevant issues: 

We have had some changes in personnel, but continued to have the critical 119 positions filled. 

We will be sending updated information on the people in place in a separate document. 

Nearly $1Om dollars have been invested in the airline to this point. We continue our fund raising 

and have sufficient funds to complete the certification process with a 2 aircraft operation. 

We respectfully request that the grant of authority be extended to allow us to finish the 121 certification 

process. 
We are requesting confidential treatment for the items listed below. They contain relevant facts about our 

business plan and financial condition. For competitive reasons we do not want details about our business 

plan to be made public. For privacy reasons we do not want bank records, lease negotiations and other 

financial information to be released to the general public. Below are the exhibits to be considered for 

confidential treatment under 302.12: 

1 . First year operating forecast 

2. Operating expenses paid to date and forecasted to first day of service. 

3. Audited financials through 2011 and year-to-date P&L for 2012. 

4. Third party validation of cash balances. 

5. Status of fund raising efforts. 

6. Verification of aircraft leases 

7. Negotiations for aircraft #2 

8. Negotiations for aircraft #3&4 

9. Statement and supplement of financial information 

10. Approval from Torrey Pines Bank for $1,000,000 line of credit. 

11. Updated private placement memorandum and subscription booklet 

The above exhibits are contained in the binder requesting confidential treatment. 

The contents of this application and the attached exhibit (s) are true and correct to the best of my 

knowledge and belief. Pursuant to Title 18 United States Code Section 1001, I [the individual signing the 

application, who shall be a principal owner, senior officer, or internal counsel of the applicant]. in my 

individual capacity and as the authorized representative of the applicant, have not in any manner 

knowingly and willfully falsified, concealed or failed to disclose any material fact or made any false, 

fictitious, or fraudulent statement or knowingly used any documents which contain such statements in 

connection with the preparation, filing or prosecution of the application. I understand that an individual 

who is found to have violated the provisions of 18 U.S.C section 1001 shall be fined or imprisoned not 

more than five years, or both. 

Theodore L. Vallas 

CEO 

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