### LLC



## August 20, 2014 U
.S
.Department ofTransportation Office ofthe Secretary ofTransportation 1200 New Jersey Ave., S
.E.

**Washington**

**~** 

## DC 20590 DearMs. 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 belowby JoAnn E. Wolters, CEO ofGem 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 orfiting of thematerial submitted

### Daniel L. Schroeder, Secretaryffreasurer and DirectorofOperations andCbiefPilot.



## • • • 

## • • •
• • • • • 

## • • •

TT PIC MEL SEL 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 Annyoperations & 

### Intelligence 1969-1971 Vietnam Honorable Dtscharge -E-5 Central Office Equipment Man Telephone Co.• Culver Cit) CA
. froml971-1973 AngelFireCorp.Sawmill,EagleNest,

### NM

.1 fJ73-1977 Student -Emery School ofAviation, Greeley, CO 1977-1978 Instructor-Emery School ofAviation, Greeley. CO 1978-1980 1981-2006 50% Owner ofMountain Bird INC 

### d/b/a Salmon Atr 1981-2006 SaJmon Air Pilot, Director ofOperations, Check Airman All Checks 2000- Present 50% Owner ofSpritAir INC 2007-Present 50% Owner ofGem Air, LLC 2007-Present. D•rector ofOperations/ChiefPilot, 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.690Hours 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 17,8008f.2012014 Gem AirllC

**SMN-BO~SMN** Commuter December 31, 2013 AND 2014 Pro-fonna Balance Sheet 2014 2013 OJRRENTASS£TS



### cash 

### $ 164,228 

### $ 8,796 Inventory 

### $ 67,565 

### $ 67,565 Othercurrent assets 

### $ 5,509 

### $ 5,509

Total current assets 

### $ 737,302 

### $ 81,870 

### PROPERTYAND EQUIPMENT

Bulldl,._ and Improvements 

### $ 103,170 

### $ 103,170 Equipment 

### $ 202,141 

### $ 202,141 Vehldes 

### $ 28,058 

### $ 28,058 

### $ 333,369 

### $ 333,369 Less acwmulateddepredation 

### $ {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'scapital accounts 

### $ 113,432 

### $ 173,322 Contrfbutlons 

### $ 149,168 

### $ 33,685 Netgain (loss) 

### $ (639) 

### $ (43,575)

Total members' equity 

### $ 261,961 

### $ 113,432

TOTAL 

### $ 262,ot9 

### $ 113,S70Prepared 8,/20/2014 Gam Air U..C SMN-BOJ.SMN Commuter Commuter Operations Pro-forma Profrt and Lon

**November~** 201.4- October

**3~** 2015wlth Commuterstart d.te

**November~** 2014 1 Opemlng Aircraft· Qu

.. t Kodiak 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 parweak year-roundPrepared 

### 8/ { 20 2014 Gem Air U.C

**SMN-BO~SMN** Commuter On-Demand Flying Pro-forma Profrt and Loss November 1, 2014 • October31
. 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 commuterstart

### dateNovember 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