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. Departmen t o f 120 0 Ne wjerse yAvenue , S E Transportatio n >i , Washington , D C 2059 0 Off ic e O f th e Secretar

y o f Transportatio n February 23 , 201 0 Ms
. Eilee n M
. Gleime r Mr
. Geral dF
. Murph y Crowel l & Morin g LL P 100 1 Pennsylvani aAvenue , NW Washington , D C 20004-259 5
Re : Docke t

DOT-OST-2009-011 6 Applicatio n o f

Ke y Lim e Ai r

Corporatio n for Sectio n 4173 8 Commute r Ai r Carrie r Authorizatio n Dear Ms
. Gleime r

an dMr
. Murphy : B y lette r date dJanuar y 5 , 2010 , th e Departmen t informe dyo u tha t

Key Lim e Ai r

Corporatio n ("Ke y Lime" ) ha dnot

ye t responde dfull y t o th e Department' s Jun e 29 , 2009 , Reques t for Additiona l Information
. Tha t lette r containe da

n Informatio n Request , whic hliste dth e area s wher e further

and/o r clarifyin g informatio n was stil l neede di n orde r for u s t o fully prosecut e Ke y Lime' s application
. I n tha t letter , w e aske dthat

yo u respon dfully , i n Docke t DOT-OST

2009-0116 , withi n 3 0 days , o r b y February 4 , 2010
. T o ou r knowledge , n o suc hfilin g ha s bee n submitte dt o th e docket
. Shoul dKe y Lim e not

respon dfully t o ou r

Informatio n Request , cop y attached , b y Marc h 5 , 2010 , w e inten dt o dismis s Ke y Lime' s applicatio n for failur e t o prosecut e it s application
. Than k yo u for you r cooperatio n i n thi s matter . I f yo u hav e an y question s regardin g thi s lette r o r th e Informatio n Request , pleas e fee l fre e t o contac t Scott Faul k o f my staf f at 202-366-9967
. Sincerely ,
^auraljiffT r Rem o Chief , Ai r Carrie r Fitnes s Divisio n Offic e o f Aviatio n Analysi s Enclosur ecc : Docke t DOT-OST-2009-011 6 Clif f Honeycutt Presiden t Key Lim e Ai r

Corporatio n 1325 2 E
. Contro l Towe r

Roa d Englewood , C O 8011 2 Christophe r

Lan g PO I for Ke y Lim e Ai r

Corporatio n FA A Denve r

FSDO-0 3 2680 5 Eas t

68t hAve
. Denver , C O 8024 9INFORMATIO N REQUES T Ke y Lim e Ai r

Corporatio n GENERA LINFORMATIO N 1
. Th e applicatio n submitte do n behal f of Ke y Lim e state s tha t

th e ai r carrie r i s in th e proces s o f

obtainin g aPar t

12 1 certificat e fro mth e FAA
. Pleas e provid e th e Departmen t withastatu s updat e o n an y progres s th e ai r carrie r ha s mad e i n obtainin g thi s certification
. MANAGEMEN T AN D KE Y TECHNICA LPERSONNE L 1
. Pleas e provid e aresum e fo r Mr
. Danie l J
. Bauer
. Th e resum e shoul dinclud e Mr
. Bauer' s full name , citizenship , curren t address , an dtelephon e numbers , togethe r withadetaile d listin g o f al l previou s employmen t (bothaviatio n an dnon-aviation ) an deducatio n an d training
. Th e employmen t listin g shoul dinclud e th e nam e o f employer , locatio n (city , state) , typ e o f

business , position(s ) held , descriptio n of responsibilities , an ddate s employed
. Further , if

th e employe r

hel dan y aviatio n authority , th e typ e o f authorit y hel d shoul db e noted
. FINANCIA LPOSITIO N 1
. Pleas e provid e acop y o f Key Lime' s curren t

(withi n 3 months ) balanc e shee t an dincom e statement , a s wel l a s balanc e sheet s an dincom e statement s for calendar year s 2006 , 2007 , an d2008
. Th e financia l document s shoul db e accompanie db y explanatory footnotes
. In addition , th e financia l document s shoul dinclud e astatemen t a s t o wh o prepare dthem , hi s o r he r qualification s an drelationship , i f any , t o th e applicant , an dwhethe r the y wer e prepare di n accordanc e withGenerall y Accepte dAccountin g Principles
. I f an annual audit , review , o r

compilatio n b y a

n independen t

CP A i s performed , th e nam e an daddres s of th e firm , an dtyp e o f

service s provide dshoul db e listed
. 2
. Pleas e provid e third-part y verificatio n o f al l lines-of-credi t

availabl e t o support

Ke y Lime' s propose doperations
. Thi s verificatio n shoul dinclud e th e total line-of-credi t bein g mad e available , th e amoun t suc hcredi t

lin e ha s bee n draw n dow n t o date , any condition s that

mus t b e me t befor e fund s wil l b e advanced , th e term s o f repayment , an d th e expiratio n date
. Further , i f th e line-of-credi t

i s bein g supplie db y a

n individua l o r organizatio n (othe r

tha n arecognize dfinancia l institution) , copies of th e persona l o r corporat e financial statement s o f th e individua l o r

organizatio n shoul dals o b e provided
. 3
. Pleas e provid e third-part y verificatio n o f al l cas hdeposit s availabl e t o support Key Lime' s propose doperations
. 4
. Pleas e provid e adetaile dpre-operatin g cos t forecast
. Thi s forecas t shoul dinclud e al l cost s directl y associate dwithKe y Lime' s mov e fro mPart 13 5 authorit y t o Part 12 1 authority , includin g aircraf t leas e expense , training , fuel , salaries , gates an dhangar space , insurance , preparatio n o f FA A manuals , FA A provin g runs , etc . Sufficient detai lshoul db e provide dt o allo w u s t o replicat e th e mathematic s used
. I f Ke y Lim e believe s that non e o f thes e expense s wil l b e incurre dprio r t o it s commencemen t

o f revenu e flight operations , i t

shoul dstat e i n detai l th e reason s wh y th e Departmen t shoul dconside r

thi s forecas t reasonable
. 5
. Pleas e provid e aforecas t balanc e shee t

an dprofi t

an dlos s statemen t

(broke n dow n b y moilth"0r b y quarter ) fo r

th e firs t twelv e full month s o f

actua l fligh t

operation s conducte d unde r th e commute r

authorit y at

issue
. Thes e document s shoul dinclud e ampl e note s explainin g th e basi s fo r

th e amount s show n an dwhethe r th e statement s wer e prepare do n acas ho r accrua l basis
. Th e descriptio n shoul db e i n sufficien t detai l t o replicat e th e mathematic s involve dan dt o determin e th e reasonablenes s o f th e forecast
. a . Th e revenu e forecas t

shoul dinclud e th e following : i
. Fare s o r

rate s t o b e charged , an dth e resultin g gros s revenues ; an d ii
. Th e tota l numbe r

o f revenu e bloc k

hour s an drevenu e mile s expecte dt o b e flown , an dth e exten t

o f an y seasona l traffi c peaks
. b
. Th e expens e dat ashoul dinclud e th e following : i
. Detai l b y expens e categor y (direc t an dindirect) , indicatin g ho w th e amount s wer e computed
. Ke y Lim e shoul dinclud e separat e estimate s o f expense s for

training , maintenance , preparatio n o f manuals , etc. , for

eac h aircraf t typ e o r model ; an d ii
. Fo r indirec t expenses , if

Key Lim e i s engage di n othe r aviation-related , operation s (e.g. , aircraf

t leasin g o r

repai r station) , expense s shoul db e allocate do n arationa l basi s betwee n th e propose dcommute r operation s an dth e othe r

operations , withappropriat e explanations
. Ke y Lim e shoul d prepar e aconsolidate dforecas t incom e statemen t

for th e entir e busines s a s wel l a s separat e forecas t

statement s fo r

eac hoperatin g segment , includin g th e propose dcommute r

operation
. 6
. Pleas e provid e statement s whic hinclud e adescriptio n o f th e following : a . An y lien s o r

encumbrance s agains t

an y o f th e applicant' s o r

an y relevan t corporation' s assets , includin g thos e pledge da s collatera l for an y outstandin g obligations ; b
. An y majo r

commitment s int o whic hth e applican t o r an y relevan t

corporatio n ha s entere ddurin g th e pas t

6 months , o r

propose s t o ente r

int o durin g th e nex t 6 months , includin g ban k o r othe r institutiona l financing , privat e financing , issuanc e o f

bond s o r stoc k i n th e applicant , o r

majo r contract s t o performservices ; c . An y transaction s i n whic hth e applican t o r an y relevan t

corporatio n sol do r exchange dan y majo r

asset s (aircraft , land , buildings , etc. ) durin g th e pas t 6 months , o r

plan s t o sel l o r

exchang e withi n th e nex t 6 months , includin g ho w an y fund s realize dfro mthos e transaction s were , o r ar e intende dt o be , used ; d
. An y liabilitie s o f

th e applican t

o r an y relevan t

corporatio n that

ar e mor e tha n 6 0 day s pas t

du e at th e tim e of

th e application , includin g th e amoun t an dth e circumstance s unde r

whic hthe y ar e pas t

du e an dwil l b e paid ;e . An y contingen t liabilitie s tha t

ma y hav e a

n effec t o n th e applicant' s o r

an y relevan t corporation' s financia l positio n (e.g. , lawsuits , pendin g judgments) , includin g plan s t o mee t

thos e obligations ; an d f
. An y event s tha t

occurre dafter

th e preparatio n o f

th e mos t

recen t financial statement s that

ma y hav e asignifican t

impac t o n th e financial positio n o r o n th e operation s o f

th e applican t

o r an y relevan t

corporation
. I f n o suc hevent s hav e occurred , provid e astatemen t t o tha t effect
. Note : Unti l w e ar e abl e t o determin e that th e pre-operatin g an dfirst-year forecast s provide d ar e reasonable , w e canno t determin e what

leve l of fundin g Ke y Lim e wil l requir e t o mee t th e Department' s financia l fitnes s standard
. In addition , shoul dth e company' s curren t financial statement s (t o b e provide di n respons e t o thi s informatio n request ) als o show s anegativ e wordin g capita l position , th e amoun t of thi s defici t

woul db e adde dt o th e amoun t neede d unde r ou r standeir dfinancia l fitness ' criteri at o determin e Ke y Lime' s tota l fundin g requirement
. Absen t areasonabl e operatin g forecas t an dverificatio n o f

availabl e financia l resource s sufficient t o mee t th e Department' s financial fitnes s requirement , Ke y Lime' s applicatio n i s seriousl y deficient
. Therefore , unles s Key Lim e i s abl e t o demonstrat e th e reasonablenes s of it s forecast s an dprovide s th e require dhistori c an dforecas t financia l statement s i n sufficient detai l for u s t o evaluat e it s financia l fitnes s an dadequatel y substantiate s tha t i t wil l hav e fundin g sufficien t

t o mee t ou r fitnes s criteria , w e wil l dismis s it s applicatio n a s incomplete
. COMPLIANC EDISPOSITIO N Th e informatio n provide dpursuan t t o thi s Informatio n Reques t shoul db e accompanie db y th e followin g certification : Th e content s o f

thi s applicatio n an dth e attache dexhibi t (s ) ar e tru e an dcorrec t t o th e bes t of my knowledg e an dbelief
. Pursuan t t o Titl e 1 8 Unite dState s Cod e Sectio n 1001, 1 [th e individua l signin g th e application , wh o shal l b e aprincipa l owner , senio r ojficer , o r

interna l counse l o f

th e applicant] , i n m y individua l capacit y an da s th e authorize drepresentativ e o f th e applicant , hav e no t i n an y manne r

knowingl y an d willfull y falsified , conceale do r faile dt o disclos e an y materia l fac t o r mad e an y false , fictitious , o r

fraudulen t

statemen t

o r knowingl y use dan y document s whic hcontai n suc h statement s i n connectio n withth e preparation , filin g o r prosecutio n of

th e application
. I understan dtha t

an individua l wh o i s foun dt o hav e violate dth e provision s o f 1 8 U.S. C sectio n 100 1 shal l b e fine do r imprisone dno t

mor e than fiv e years , o r

both
.

' Funds sufficien

t t o cove r al l pre-operating cost s plu s one-fourt ho f the operating expense s tha

t the applican

t wil l incu r during its first

yea r o f commute r operations
.