# u.s. Department of Transportation

Office of the Secretary 

### ofTransportation



## Mr. James W. Acher Northern Pioneer Helicopters P

## .0. Box 520670 Big Lake, Alaska 99652

Dear Mr. Acher: Assistant Secretary



## March 19, 2012 i£ 

## \Y**~** 

## l !\ 

## 11: 

## l b 1200 New JENSey Avenue, SE Wash!ngto,n, OC 20590



## 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 Departme11t 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 findings. 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 Manageme11t System (OMS) website, which is 

## http://www.regulations.gov.

Finally, since this matter is pending, I 

## arn unable to comment on the merits ofVIH Cougar's submissions. 

## 1assure you, however, 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.

Sincerely yours,

Susan L. Kurland Assistant Secretary for 

## Aviation and International AffairsMs. 

### Susan Kurlnnd

Al!sistarit

## S~retary ofTrnnsportation for

## Aviation~ lmemat1onal Affairs United Statll&

### D~parttu~nt of' Transportation 

### 120() New Jersey Aventle, SE Washington, DC 2QS90

Via email to

# ~~d.QL~;**w~.n,!.J\c~!rl!!ru!!i~cil!t!.l~J: !I!~~!!J~u:** 
SUB.Jii:C't': VUi Cougar

# H~INopters, r nc. I 

### Fbtelan Operl!tors Competing with Americans Dear Secretary Kurland:

Petroleum Helicopters, lttc (PHl) cbaHenged thli operations ofVIH Cougat· Heliooptet-s; lnc. 

### (VIR Cougar) in 

### the Unitlid States 

### (Alaska, 1he West Coast, and the 

### Clult' ofMexico). As 

### a cef1iflcated air carrier I concur with .the sentiments

## cxrm~ssed ln this letter.

In your

# Octob~r 6, 20JJ lt!ttcr to counsel. far VUI C9ug11r Helicopters, Itu:, (VIH. Cougar} cot!ceroJng their S:fatus as a Part 298 Air Taxi Operator YOil citlld

## "~Vttwhebning evidence" that Vlf{ Cougar ls not in cotnplis.nee with' th'e

# requir"n~nt~~ oftfie Federal Aviation Aet tfiat certificated 11irline operntorsbe citizen*" of the Onitlld States.

US air carriers have long maintained and yt;>u fitiaHy concluded

# ~hat although VIH Ctwgar theoretically complies with the numerical ownership tt:q\lirements ofthumtute, it is not undel' the actual control 

### of citizens 

### ot' the United States. You note tbut reas!>ns, lncludlng:

• the agency relntionship .ofMr. Steeper 

### by M'r. Nourie,

• the provis)on ofteehnieal rutd operational services 

### and equipment by the VIH Clrottp to VfH Cougar,

• comractunJ relationships among tbe VIH Gt·oup am! VJH Cougar, and,



### • tellingly; infOrmation

### discrcp~~ncies provided lo the Oe:partment. Additie>t'llllly, VIH Cougar ol'licials h:ave made public: staternerit.<rl'l:ivealiug that company's Cntradianties. Ea¢h one ofthese alone Would be grounds for a tlilding on 

### non-comp.Uance,,but together they show a

## pt~meditated and 

### willt'ttl lack 

### <>fcompllcmcc

## disf)<)~ition !IS welhs nun· citi<:enshlp.

Outing the entire 

### period ofthis investigation V!H 

### Cougar has 

### contintllldto COJ!1pe!e upfairly with U.S certificated operators. VJH

# Cou~ar has been the be.neftciaty ofilS'

# illegal':rcl;uioo:~hlp Wit!1 the VIH Oroup at the ex:pcn11e MU,s. cO'mpanles. Sitwe October 6, 2011, VlH has continued to do business without any .aj)plwem change. Ifanything, it is now

# incenlivl~ed to suek additional rnarkel share as part ofwhatever testructuring it may ot'fet• to the DlilP«rtrnent

While US ¢ertiticatcd operators appreciate$ the Oepartment's very thorougn review ofthe allegations against VIH Cuugar, we believe

# thau~ time has c.ome to

# s~ojlVIH Coujat·'s, und other foreign entities, 

### lengthy

## bi:~tory**offlatimin~;~** the 

### eitl:Z:enship l'equireJtlems

## andcCif!:l,~tlllg unmirlyaaaJnstU.S. ci!lzen OJ)tta!Ots. As the 

## vra

# Grm~pl'crilains itt !!l)ntfol of\"Ill

# ;Cot~.l!r**afm~;~st tll:rt~c**  nw.ntbs .after the 30-day deadline 

### fe»· compliance tnebtded 

## in your

# Oet~>beru, 2611 letter, we 

### restxtcttul1y reque$t that 

### lmmediltte action be. 

### take11 tobri.itg un end to lbl$ illopl situation,We urge tl\¢ Departrn

.. mt to tllUYc quickly and openly to end tl!isllitucQti<ln, 

### .wldeh lulsgone



### on tor several yean

.. 

### VtH Cougar shou.ld. not 

### be allowed to**ccintinut~** 

### to ei.t.llgt in nnlaw.ful C!'lltfj)etltlon thai. dislldvantages 

### u.s. eldzcn 

### operlltO!'S 118 itdtlll)'ll (lOlllplill!leewith 

### U.S.Ia:W

m m11xindte Us ill-gotten glllns. V IH Cmtgar sheul!i not be**alloWt~d** to ooritinue to**o~ate** 

### ill the United States unless .it has met the requirements ofthe Pederal AviationAl:lt that eei'tiliooted · airline operators be citizens ofthe United States.



### The Oepartment'\1 recent Notice**of.P••opot~ed** Policy Clarification fur tt1e 

### Regi11ctradon 

## ot Aircraft to 

## u.s. Citizen**Tru~teell** 

### in Situati()lllllnvoJv.ing 

## Non-u.s; Cltlzenl'ru!ltnrs !tnd**B«tneftclari~!ll,** 

### Fech!t"ld**R«~'li~e•·** 

### Feb 91

### .:10\2 indicates**th~** &,crli>U&**c.,~~~** the:**~artment** Is**shuwin~J** 

### wltb regard to 

### nssuring tdosc 

### regulatory oversight of

### U.S.**retls~red** 

### !llrtraft and O\l(lriltlons, ·


### Likewise; inthis 

### matter, the operatot• has 

### persistently evaded statutOl)' requirements 

### for netual citizen eontrol. Just as the Dcpartrl\ent is taking aefion 

### .to ll.S&ure**tli~tt** r4gnliltoty ove.rsight

o.n tensed US regtstend aircraft is not avoided**tllnru~}t compl~** **D\\'U~W&hl~ lns~!J!.ents** 

### 1 the Depnrtlll®t.sbould move 

### to q\llcldy close down 

### vtUCouinr 1

# s llva.llion ohbe 

### statute.

We believe !hat there is l1o public policy that can be served any longer by shleldlni;VIH**Co~ar's** 

### citizenship s!atus from the 

### pul:tiic. Having made the**p~l!mi~rY f,i.1\d~** 

### based on

. "overwhelming: evidence," we respectfully rctjUCS.t that the Deptrtment**brlnl.thfrlll~reney** tQ any furtlter proeeedingtdn tb!S matter. The Departmeru's**illitrmal,p~oeeedin~t\1ay ht\v~**  

### public policy**bt~neflts** in enabtlni 

### openttors to armnge 

### their citizenship**iff~irs** 

### ptivarely wt1en · they are**sel!l~ihg** to comply With the law, bu\ thatdoes not llpplyln thiu:!lSe. Here, VIH Cougar 

### circumvented the law ln a calculated manner !l)ld did not 

### tnerely seek to 

### ascert!lhl the.limi!s of the cltizensbip requirements. lnstead, it establisncd, and. h::mg**Q.P~ted** unoer, an egregious scheme 

### which viulnted the citlt,<msllip requiretiients 

### and enpgl'l!.'lln tkceptlor lo 00 $o.



### As U.$. 

### eltlllebs, we arnntitled t6 tran$parency Hnd ()pen**guvl!.rnnt!;lntillm!f~tet;s** 6f regulatory eompllan'Ce. Any effnrts by tl1e l>epll:l'tmhiU to !Insure 

### that**VlQ.(:~uga.r div~sts**  •and mtl'ttctures should be (rpen, trnnsparent and pnblle.