LLC 

August 20, 2014 

U.S. Department of Transportation 

Office of the Secretary of Transportation 

1200 New Jersey Ave., S.E. 

Washington~ DC 20590 

Dear Ms. Remo: 

Gem Air, UC 

31 Hamner Drive Salmon, 10 83467 

(208) 756-7382 flying@gemairflights.com 

Below please find responses to your request for additional infonnation including: 

• Updated bio for Dan Schroeder 

• Amended/Updated pro-forma financials and balance sheet 

Additionally, the 'indirect' expenses that have been questioned include admmistrative expenses 

such as legal fees, accounting/bookkeeping fees, and consultant and office expenses. 

Thank you for your time and consideration. 

Sincerely, 
Required Statement below by JoAnn E. Wolters, CEO of Gem Air LLC 

Pursuant to Title 18 United States Code Section 1001, the information provided in 

this letter is true and correct and the aforementioned individual has not 

knowingly and willingly falsified, concealed or failed to disclose any material 

fact or made any false, fictitious, or fraudulent statement in connection with the 

preparation or fit ing of the material submitted 
Daniel L. Schroeder, Secretaryffreasurer and Director of Operations and CbiefPilot. 

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Night 

Graduated Lennox High School in 1966 

Worked at Bob's Automotive while attending El Camino Jr. College through 1967 

Central Office Eqwpment Man Telephone Co .. Culver Ctty. CA. from 1968-1969 

Anny operations & Intelligence 1969-1971 

Vietnam Honorable Dtscharge -E-5 

Central Office Equipment Man Telephone Co .• Culver Cit) CA. froml971-1973 

Angel Fire Corp. Sawmill,EagleNest, NM. 1 fJ73-1977 

Student -Emery School of Aviation, Greeley, CO 1977-1978 

Instructor -Emery School of Aviation, Greeley. CO 1978-1980 

1981-2006 50% Owner of Mountain Bird INC d/b/a Salmon Atr 

1981-2006 SaJmon Air Pilot, Director of Operations, Check Airman All Checks 

2000- Present 50% Owner of Sprit Air INC 

2007-Present 50% Owner of Gem Air, LLC 

2007-Present. D•rector of Operations/Chief Pilot, Check Ainnan All Checks GEM AIR. LLC 

2009-2013 Pilot. Check Ainnan AJl Checks. Training Captain McCall Aviation 

FAA Certificate :; 348-36-8108 

Commerc1al. Instrument, CFl- 1979 

Fljaht Time 

2 J .690 Hours 

21,440 

10.500 

11 ,000 

l,SOO 

Ratings 

A TP - March 1997 

Gold Seal Fhght Instructor CFJJ 

MEl. Ground instructor Instrument 

and Advanced 

Act. Instrument 

Hood 

2,100 

150 

Simulator 

x-country 

155 

17,800 
8f.2012014 

Gem AirllC 

SMN-BO~SMN Commuter 

December 31, 2013 AND 2014 Pro-fonna Balance Sheet 

2014 2013 

OJRRENT ASS£TS 

cash $ 164,228 $ 8,796 

Inventory $ 67,565 $ 67,565 

Other current assets $ 5,509 $ 5,509 

Total current assets $ 737,302 $ 81,870 

PROPERTY AND EQUIPMENT 

Bulldl,._ and Improvements $ 103,170 $ 103,170 

Equipment $ 202,141 $ 202,141 

Vehldes $ 28,058 $ 28,058 

$ 333,369 $ 333,369 

Less acwmulated depredation $ {308,572) $ (301,669) 

Property and equipment- net $ 24,797 $ 31,700 

TOTAL $ 262.091 $ 1.13.570 

UABitmES: 

Acaued liabilities $ 138 $ 138 

MEMBERS' EQUJlY 

Partner's capital accounts $ 113,432 $ 173,322 

Contrfbutlons $ 149,168 $ 33,685 

Net gain (loss) $ (639) $ (43,575) 

Total members' equity $ 261,961 $ 113,432 

TOTAL $ 262,ot9 $ 113,S70 
Prepared 8,/20/2014 

Gam Air U..C 

SMN-BOJ.SMN Commuter 

Commuter Operations Pro-forma Profrt and Lon 

November~ 201.4- October 3~ 2015wlth Commuter start d.te November~ 2014 

1 Opemlng Aircraft· Qu .. tKodiak 100 9 seats 

Nov.- Jan Feb. - April May-July Aug -Oct. Total 

Average Block Length (nm) 145 145 145 145 145 

Scheduled Departur .. 130 130 130 130 520 

Scheduled Block Hours 130 130 130 130 520 

Projected Completion Factor 99% 99% 99% 99% 99% 

Projected Completed Departures 129 125 125 125 515 

Projected Completed Block Hours 129 129 129 129 615 

Projected Completed Block Milea 18,662 18,662 18,662 18.662 74,&46 

Projected Pa .. engers 455 456 650 686 2,145 

Passengers Per Departure 3.5 3 .5 50 4.5 4.1 

Revenue par Passenger $199 $199 $199 $199 $199 

Ravanue Paaaengar Milas 65,315 65,316 93,308 83$77 307,915 

Available Seat Milea 167~ 167,$4 167,964 167,964 671,814 

Projected Load Factor 3S% 3S% 66% 50% 46% 

Fln•nd•l ProjectloM 

Revanue s 90,545 s 90,545 s 129,350 s 116,415 s 426,855 

Expensea 

Flight Oporatlona s 19,500 s 19,600 s 19,600 s 19.500 ' 78,000 

Fuel & Otl $ 27,510 s 27,510 s 27,510 $ 27.510 s 110.039 

Salaa & Marketing s 6,000 $ 6,000 $ 6,000 s 6,000 $ 20,000 

Trllffic Servtcing $ 4.600 s 4.600 $ 7,000 $ 6.600 s 22,600 

lnaurance s 4,800 $ 4 ,800 ' 4 ,800 ' 4.800 ' 19.200 

Maintenance s 16,900 s 16.SOO s 16.SOO s 16.SOO s 67.600 

Sub-Total s 78.210 s 78.210 $ 80,710 $ 80.210 $ 317 ,33S 

Indirect• $ 3,000 s 3,000 s 3,000 s 3,000 $ 12,000 

Total Expanaae $ 81.210 s 81.210 s 83,710 s 83.210 $ 329,33S 

Projected Operating Profrti(Loea) $ 9,335 $ 9,336 s 45,640 $ 33,206 $ 97.517 

Leas: 

Aircraft Lea .. $ (467) $ (.467) $ (2.282) $ (1.660) s (4.876) 

FET s (6,791) s (6,"791) s (9,701) s {8 ,731) s (32,014) 

Merchant feae s (2,716) s (2.716) ' (3,881) $ (3,492) $ (12,806) 

Net Operating Proflt/(Loaa) s (63S) $ (639) • 29,777 s 19,322 s 47,821 

Statement prepared on the caeh beals 

'"1ndtract Expaneas = Administrative expenses such as legal fees accounting/bookkeeping fees, and consultant and 

office expanses 

The above pro-forma data, including load factors, are baaed upon local knowledge and historical opeming data and 

experience when Dental Schroeder and JoAnn WoHera operated the same commuter route from 2001-2006 

Initial aervtce ltart-up will not require the hiring/training of additional personnel 

Operating coeta are calculated baeed on the use of a leased 2006 Quest Kodiak 

Hangar end of'fice apece ie owned free and clear by JoAnn Wolters and Daniel Schroeder and Ia personally 

contributed to the operation 

Scheduled freg_uencl is 5 rounds trips par weak year-round 
Prepare d 8/ 20 { 2014 

Gem Air U.C 

SMN-BO~SMN Commuter 

On-Demand Flying Pro-forma Profrt and Loss 

November 1 , 2014 • October 31 . 2015 

2 Operating Aircraft: Quest Kodiak 100 9 seats 

Piper Seneca PA-~ 200T 5 seats 

Nov.- Jan Feb.· April May - July Aug. - Oct. Total 

Projected Completed Block Hours 

Kodiak 10 10 15 15 50 

Seneca 5 5 5 5 20 

Total 15 15 20 20 70 

Projected Completed Block Miles 

Kodiak 1,600 1.600 2,400 2.400 8,000 

Seneca 800 800 800 800 3,200 

Total 2,400 2,400 3,200 3.200 11.200 

Average Revenue/hour 

Kodiak $ 975 $ 975 s 975 s 975 $ 975 

Seneca $ 550 s 550 s 550 s 550 s 550 

Revenue 

Kodiak s 9,750 $ 9,750 s U ,625 s 14,625 $ .48,750 

Seneca $ 2,750 $ 2.750 $ 2,750 $ 2,750 $ 11,000 

Total On-Demand Revenue $ 12,500 $ 12,500 $ 17,375 $ 17,375 $ 59,750 

Flight Operations $ 1,200 $ 1,200 $ 1,600 $ 1,600 $ 5,600 

Fuel & Oil $ 2.623 $ 2,623 s 3.636 s 3,636 $ 12,517 

Sales & Marketing s - s - $ - $ . $ . 

Traffic Servicing s . s . $ . $ . s . 

Insurance s 1,200 $ 1,200 $ 1,200 $ 1,200 $ 4,800 

Maintenance $ 1 ,:D) $ 1,300 $ 1,800 s 1,800 s 6,200 

Sub-Total $ 6,323 $ 6,323 s 8,236 s 8,236 s 29.117 

Indirect $ . s . $ - s - $ . 

Total Expenses $ 6,323 $ 6,323 s 8,236 $ 8,236 $ 29,117 

Projected Operating Profrt/(loss) $ 6,1n s s.1n $ 9,140 s 9,140 s 30,633 

less: 

Aircraft Lease s (525) $ (625) $ (869) $ (869) $ (2,988) 

FET $ (731) s (731) $ (1,097) $ (1 ,097) s (3,656) 

Merchant fees $ (375) s (376) s (521) $ (521) s (1.7931 

Net Operating Profrt/(Loss) $ 4,446 $ 4,«6 s 6,653 $ 6 ,653 $ 22,197 

Statement prepared on the cash basis 
Prepared 8/2!J/2014 

Gem Air LlC 

On-Demand and Commuter Operations 

Consolodated Pro-fonna Profit and LDss 

November 1. 2014-0c:tober31. 201Swlth commuter start date November 1, 2014 

Nov.- Jan Feb.- April May-July Aug.- Oct. Total 

INCOME 

On-Demand s 12,500 s 12,500 s 17 ;375 s 17 ;375 s 59,750 

Commuter s 90,645 s 90,&45 s 129,360 $ 116,-415 $ .426,865 

Total s 103~ s 103,0-45 s 146,725 s 133,790 s .486,605 

EXPENSES 

Flight Operation• $ 20,700 $ 20,700 $ 21,100 $ 21,100 s 83.600 

Fuel & Oil s ~.133 s ~.133 s 31 ,145 s 31 ,145 s 122,556 

Sales & Mart<eting s 5,000 s 5,000 $ 5.000 s 5,000 s 20,000 

Traffic Servicing s 4.500 s 4,500 s 7.000 s 6,500 s 22,600 

Insurance s 6,000 s 6,000 s 6,000 s 6 ,000 s 2o4,000 

Maintenance $ 18,200 s 18,200 s 18,700 s 18,700 s 73,8Xl 

Sub-Total s 84,533 s 84,533 s 88,9.45 s ee . .us s 346,.456 

Indirect• s 3.000 s 3 ,000 $ 3.000 s 3,000 $ 12,000 

Total Expenses s 87$33 s 87$33 s 91,9.45 $ 91,445 s 358,.456 

Projected Operating Profit/(loaa) $ 15,512 s 15,512 s 5.4,780 s -42,3.45 s 128,150 

Leas: 

Aircnrft Ltaae s (1.()92) s (1 ,092) $ (3,161) $ (2,629) s (1,863) 

FET $ (T .622) s (T .622) s (10,1'98) s (9,828) $ (36,670) 

Merchant fees $ (3,()91) s (3,091) s (o4,402) s (o4 ,014\ s (1-4,598' 

Net Operating Profltl(loaa} {S 3,£JJ71 s 3,PJJ7 I s 36,429) s '15,f5/4 s 70,018 

Statement prepared on the cash basis