U.S:. Deportment ofTransportation Office ot the Secretory ofTransportation



### Mr. Robert J. 

### Fell Maritime Helicopters 3520 F.A.A. Road Homer, Alaska 99603 Dear Mr. Fell: Assistant Secretary • 

### !;q] 

### y 

### i 

### l March 19, 

### 2012 

### !I: I b 1200 New J11rsey Avenuo. SE Was!lin!,l\Of'l, DC 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 Department issued Order 2012-3-7 tentatively finding that VIH Cougar is not aU.S. citizen as defined in 49 U.S.C. §

### 40102(a)(l5) 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 enteringthe docket number, DOT-OST-2012-0022, into the simple search function at the Department's Docket Management System (DMS) website, which is http://www.regulations.gov. Finally, since this matter is pending, I am unable to comment on the merits ofVIH Cougar's submissions. I assure you, however, that the Department will give full consideration to all comments on the record in the docket. As is our nonnal 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 AssistantSecretaryfor Aviation and InternationalAffairs

# maritime Helicopters
February 13, 2012

Ms. Susan Kurland Assistant Secretary ofTransportation for Aviation & International Affairs United States Department ofTransportation 1200NewJersey Avenue, SE Washington, DC 20590 Via email to susan.kurland@dot.gov; susan.l.kurland@dot.gov; faac@dot.gov SUBJECT: VIH Cougar Helicopters, Inc. I Foreign Operators Competing with Americans
Dear Secretary Kurland: Petroleum Helicopters, Inc (PHI) challenged the operations ofVIH Cougar Helicopters, Inc. (VIH Cougar) inthe United States (Alaska, the West Coast, and the GulfofMexico). As a certificated air carrier I concur withthe sentiments expressed in this letter.
In your October 6, 2011 letter to counsel for VIH Cougar Helicopters, Inc, (VIH Cougar) concerning their status as a Part 298 Air Taxi Operator you cited "overwhelming evidence" that VIH Cougar is not in compliance with the requirements ofthe Federal Aviation Act that certificated airline operators be citizens ofthe United States. US air carriers have long maintained and you finally concludedthat although VIH Cougar theoretically complies withthe numerical ownership requirements ofthe statute, it is not under the actual control ofcitizens ofthe United States. Younote four reasons, including: • the agency relationship ofMr. Steeper by Mr. Nourie, • the provision oftechnical and operational services and equipment bythe VIH Group to VIH Cougar,

·._. ..COJlk.act.ual·relat4onships-amoHg·tfle.¥.IH·GToupancl-V:IH Cougar-,-and, ··

• tellingly, information discrepancies providedto the Department. Additionally, VIH Cougar officials have made public statements revealing thatcompany's Canadian ties. Each one ofthese alone would be grounds for a finding onnon-compliance, but together they show a premeditated and willful lack ofcompliance disposition as well as noncitizenship. During the entire period ofthis investigation VIH Cougarhas continuedto compete unfairly with U.S certificated operators. VIH Cougarhas beenthe beneficiary ofits illegal relationship with the VIH Group atthe expense ofU.S. companies. Since October 6, 2011, VIH has continued to do business without any apparent change. 

## lfanything, 

### it is now incentivizedto seek**~q<litional** market share as part ofwhatever restructuring it may offerto the Department. · ·

3520 FAA. Road, Homer, Alaska 99603 Phone (907) 235-7771 • FAX (907) 235-7773 www.maritimehelicopters.comWhile US certificated operators appreciates the Department's very thoroughreview ofthe allegations against VIH Cougar, webelieve thatthe time has come to stop VIH Cougar's, and other foreign entities, lengthy history offlaunting the citizenship requirements and competing unfairly against U.S. citizen operators. 

### As the VIH Group remains in control ofVIH Cougar almost three months afterthe 30-day deadline for compliance included in your October 6, 2011letter, we respectfully request that immediate action be taken to bring an end to this illegal situation. We urge the Departmentto move quickly and openly to end this situation,which has gone on for severalyears. VIH Cougar should not be allowed to continue to engage in unlawful competition that disadvantages U.S. citizen operators as it delays compliance with U.S. law to maximize its ill-gotten gains. VIH Cougar should notbe allowed to continue to operate in the United States unless ithas metthe requirements ofthe Federal Aviation Actthat certificated airline operators be citizens ofthe United States. 

### The Department's recent Notice ofProposed Policy Clarification for the Registration of Aircraft to U.S. Citizen Trustees in Situations Involving Non-U.S. Citizen Trustors and Beneficiaries, FederalRegister Feb 9, 2012 indicates the serious concern the Departmentis showingwith regard to assuring close regulatory oversight ofU.S. registered aircraft and operations. Likewise, inthis matter, the operator has persistently evaded statutory requirements for actual citizen control. 

### Just as the Department is taking action to assure that regulatory oversight on leased US registered aircraft is not avoided through complex ownership instruments, the Department should move to quickly close down VIH Cougar's evasion ofthe statute. We believe thatthere is no public policy thatcanbe served any longer byshielding VIH



# ------ -c;ougar's- citizenshi.p status from the**publlc~-** :Havit'lg mad.e the preliminary fuldings**base<roo-~~--** "overwhelming evidence," 

### we respectfully request thatthe Departmentbringtransparency to any further proceedings in this matter. The Department's informal proceedings may have public policy benefits inenabling operators to arrange their citizenship affairs privately when they are seekingto comply withthe law, butthat does not apply inthis case. Here, VIH Cougar circumvented the law in a calculated manner and did not merely seekto ascertainthe limits of the citizenship requirements. Instead, it established, and long operated under, an egregious scheme which violatedthe citizenship requirements and engaged in deception to do so.

### "

As U.S. citizens, we are entitled to transparency and open government in matters of regulatory compliance. Any efforts by the Department to ensure that VIH Cougar divests and restructures should be open, transparent and public. Respectfully,

RobertJ. Fell Director ofOperations Maritime Helicopters
Cc: Ray LaHood, Secretary ofTransportation via email to robert.letteney@dot.gov Representative Don Young, via email to scott.leathard@mail.house.gov Senator Lisa Murkowski, via email to warren.wright@murkowski.senate.gov Senator Mark Begich, via email to james feldman@begich.senate.gov Governor Sean Parnell, via email to randall.ruaro@alaska.gov; russ.kelly@alaska.gov