U.S. Department of Transportation Office ofthe Secretary OfTransportation December 10, 2012

BYFAX: (202) 296-1175

Steff'anie J. Lewis The International BusinessLaw Firm, PC Counsel for BaltiaAirlines, Inc. 1915 Eye St., NW, Suite 500 Washington, DC 20006-2118

DearMs. Lewis: Re: DocketDOT-OST-2007-0007 ApplicationofBaltiaAirlines, Inc. Section41102 CertificateAuthority 1200 NewJerseyAve., S.E. Washington, DC 20590

As you are aware, by Order2009-3-7, served March 10, 2009, the Department found Baltia Airlines, Inc. ("Baltia"), fit to engage in foreign scheduled passenger operations as a certificated air carrier. The effectiveness ofthis authority was conditioned upon Baltia fulfilling a number ofconditions, including providing us with a copy ofits Air Carrier Certificate and Operations Specifications from the Federal Aviation Administration ("FAA") authorizing such operations. Moreover, pursuant to section 204.7 of our mles (14 CFR204.7) an air carrier must make its authority effective and commence operations for which it was found fit within one year after the date ofsuch a finding or its authority will become donnant and subject to revocation. It is not our policy to grant extensions from the provisions ofsection 204.7 unless an air carrier can establish "good cause" for such action, including demonstrating that the company has the necessary personnel, finances, and other resources necessary to conduct service, and that it is well along in the process for obtaining FAA approval to commence operations

.

.Although we have granted Baltia several waivers from the provisions ofsection 204.7 to permit it additional time to obtain the required FAA authority necessary to commence operations, the air carrierhas not yet fulfilled the conditions imposedby Order 2009-3-7 to have its authority made effective. Furthermore, while we continue to assess the merits of Baltia's most recent request for a waiver from the revocation-for-donnancy provisions of section 204.7, it does not appear that the air carrier is making sufficient progress in obtaining the required FAA authority. In fact, after consulting with the FAA, we learned that per Balita's request, the air carrier's Part 121 certification process was terminated on October 22, 2012. In addition, Bahia's most recent 10-Q report filed with the Secwities and Exchange Commission indicates that the air carrier's cash accounts have significantly decreased since the aircarrier was initially found fit. '

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Based on the circumstances noted above, it does not appear that Baltia is close to commencing operations. However, we are willing to give Baltia an opportunity to address the aforementioned issues and confirm that it has made substantial progress towards obtaining FAA certification. IfBaltia is unable demonstrate its fitness or that ithas made substantial progress with the FAA certification within 30 days ofthe date ofthis letter, we intend to proceed with the revocation ofthe company's certificate authority for reason of dormancy.

Ifyou have any questions regarding this matter, please feel free to contact Damon Walker ofmy staffat (202) 366-9721.

Chie
,Air CarrierFitnessDivision Office ofAviationAnalysis

cc: DocketDOT-OST-2007-0007

Mr. IgorDmitrowsky President & CEO

· BaltiaAirLines, Inc.

63-25 Saunders St., STE 71 Rego Park, NY 11374

Mr. John Krepp FAAFSD0-15 EasternRegion 990 StewartAve., Suite 630 Garden City,NY 11530