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 of Transportation's (Department) 

citizenship investigation of VIH 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. 1 assure 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 of your letter and this response in Docket 

DOT-OST-2012-0022 as a contact outside the record of this matter. I appreciate your interest in 

this proceeding. 

Sincerely yours, 

Susan L. Kurland 

Assistant Secretary for 

Aviation and International Affairs 
Ms. 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' of Mexico). 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~~ of tfie 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, 

• VfH the provis)on Cougar, ofteehnieal rutd operational services and equipment by the VIH Clrottp to 

• 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 

Cntradian ties. Ea¢h one of these alone Would be grounds for a tlilding on non-comp.Uance,,but 

together they show a pt~meditated and willt'ttl lack <>f compllcmcc disf)<)~ition !IS welhs nun· citi<:enshlp. 

Outing the entire period of this investigation V!H Cougar has contintllldto COJ!1pe!e upfairly with 

U.S certificated operators. VJH Cou~ar has been the be.neftciaty of ilS' 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. If anything, it is now incenlivl~ed to suek additional 

rnarkel share as part of whatever 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~>ber u, 

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 of the Pederal AviationAl:lt that eei'tiliooted · airline operators be citizens of the 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; in this 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!.ents1 the Depnrtlll®t.sbould move to q\llcldy close down vtUCouinr1

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\ that does 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.