August 26, 2014

U.S. Department of Transportation

Office of the Secretary of Transportation

1200 New Jersey Ave., S.E.

Washington, DC 20590

Dear Ms. Remo:

Gem Air has updated financial forecasts to present to the DOT. The updated forecasts are below. 

The changes include revised passenger counts for the first 6 months of commuter operations and 

the resulting impact of this change on the 2014 balance sheet.

Thank you for your time and consideration.

Sincerely,

JoAnn Wolters

CEO

 JoAnn Wolters
Updated 8/26/2014

1 Operating Aircraft: Quest Kodiak 100 9 seats

Nov. - Jan Feb. - April May - July Aug. - Oct. Total

Average Block Length (nm) 145 145 145 145 145

Scheduled Departures 130 130 130 130 520

Scheduled Block Hours 130 130 130 130 520

Projected Completion Factor 99% 99% 99% 99% 99%

Projected Completed Departures 129 129 129 129 515

Projected Completed Block Hours 129 129 129 129 515

Projected Completed Block Miles 18,662 18,662 18,662 18,662 74,646

Projected Passengers 227.5 260 650 585 1,723

Passengers Per Departure 1.8 2.0 5.0 4.5 3.3

Revenue per Passenger $199 $199 $199 $199 $199

Revenue Passenger Miles 32,658 37,323 93,308 83,977 247,265

Available Seat Miles 167,954 167,954 167,954 167,954 671,814

Projected Load Factor 19% 22% 56% 50% 37%

Revenue $ 45,273 $ 51,740 $ 129,350 $ 116,415 $ 342,778

 Expenses

Flight Operations $ 19,500 $ 19,500 $ 19,500 $ 19,500 $ 78,000

Fuel & Oil $ 27,510 $ 27,510 $ 27,510 $ 27,510 $ 110,039

Sales & Marketing $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 20,000

Traffic Servicing $ 4,500 $ 4,500 $ 7,000 $ 6,500 $ 22,500

Insurance $ 4,800 $ 4,800 $ 4,800 $ 4,800 $ 19,200

Maintenance $ 16,900 $ 16,900 $ 16,900 $ 16,900 $ 67,600

Sub-Total $ 78,210 $ 78,210 $ 80,710 $ 80,210 $ 317,339

Indirect* $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 12,000

Total Expenses $ 81,210 $ 81,210 $ 83,710 $ 83,210 $ 329,339

Projected Operating Profit/(Loss) $ (35,937) $ (29,470) $ 45,640 $ 33,205 $ 13,439

Less: 

 Aircraft Lease $ 1,797 $ 1,473 $ (2,282) $ (1,660) $ (672)

 FET $ (3,395) $ (3,881) $ (9,701) $ (8,731) $ (25,708)

 Merchant fees $ (1,358) $ (1,552) $ (3,881) $ (3,492) $ (10,283)

Net Operating Profit/(Loss) $ (38,894) $ (33,429) $ 29,777 $ 19,322 $ (23,225)

Statement prepared on the cash basis

Initial service start-up will not require the hiring/training of additional personnel

SMN-BOI-SMN Commuter

Gem Air LLC

Hangar and office space is owned free and clear by JoAnn Wolters and Daniel Schroeder and is personally 

contributed to the operation

Financial Projections

Commuter Operations Pro-forma Profit and Loss

The above pro-forma data, including load factors, are based upon local knowledge and historical operating data and 

experience when Daniel Schroeder and JoAnn Wolters operated the same commuter route from 2001-2005

November 1, 2014 - October 31, 2015 with Commuter start date November 1, 2014

Scheduled frequency is 5 rounds trips per week year-round

Operating costs are calculated based on the use of a leased 2006 Quest Kodiak 

*Indirect Expenses = Administrative expenses such as legal fees, accounting/bookkeeping fees, and consultant and 

office expenses
Updated 8/26/2014

2014 2013

CURRENT ASSETS

 Cash $ 164,228 $ 8,796

 Inventory $ 67,565 $ 67,565

 Other current assets $ 5,509 $ 5,509

 Total current assets $ 237,302 $ 81,870

PROPERTY AND EQUIPMENT

 Building and improvements $ 103,170 $ 103,170

 Equipment $ 202,141 $ 202,141

 Vehicles $ 28,058 $ 28,058

$ 333,369 $ 333,369

 Less accumulated depreciation $ (308,572) $ (301,669)

 Property and equipment - net $ 24,797 $ 31,700

 TOTAL $ 262,099 $ 113,570

LIABILITIES:

 Accrued liabilities $ 138 $ 138

MEMBERS' EQUITY

 Partner's capital accounts $ 113,432 $ 123,322

 Contributions $ 149,168 $ 33,685

 Net gain (loss) $ (34,448) $ (43,575)

 Total members' equity $ 228,152 $ 113,432

 TOTAL $ 228,290 $ 113,570

Gem Air LLC

SMN-BOI-SMN Commuter

December 31, 2013 AND 2014 Pro-forma Balance Sheet

Required Statement below by JoAnn E. Wolters, CEO of Gem 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 or filing of the material submitted. 

____________________________________ 

JoAnn E. Wolters, CEO 

 JoAnn Wolters