# o "Vr;i[o r 0-iATio: : u s . Deportmen t o f - . • • > l ». • , . , l l'^'
. „ • l 20 0 Ne w jerse yAvenue , S E Transportatio n Washington , D C 2059 0 Offic e O f th e Secretor

y• > . : 8 : ^

-[' • '^) Z o f Transportatio n Apri l 8 , 201 1 B Y FAX : (202 ) 296-117 5 Steffani e J
. Lewi s Th e Internationa l Busines s La w Firm , P C 191 5 Ey e St. , NW , Suit e 50 0 Washington , D C 20006-211 8 Re : Docke t DOT-OST-2007-000 7 Applicatio n o f

Balti aAirlines , Inc
. Sectio n 4110 2 Certificat e Authority Dea r Ms
. Lewis : Thi s respond s t o you r

Marc h 9 , 2011 , reques t

fo r a n extensio n o f

th e tim e i n whic h t o fulfil l th e condition s i n ou r

Final Orde r

2009-3-7 , effectiv e Marc h 9 , 2009 , that require s Balti aAirlines , Inc
. ("Baltia" ) t o commenc e schedule dpassenge r operation s a s acertificate dai r cairie r withi n on e yea r of that date
. Th e effectivenes s o f this authority wa s conditione dupo n Baltia' s fulfillin g anumbe r

of conditions , includin g providin g u s with acop y o f it s Ai r Carrie r Certificat e an dOperation s Specification s fro mth e Federa l Aviatio n Administratio n authorizin g suc h operations
. A s yo u know , sectio n 204. 7 o f ou r rule s (1 4 CF R204.7 ) provides , amon g othe r things , tha

t th e authority grante dt o acompany shal l b e revoke dif th e company doe s no t

commenc e actual flyin g operation s unde r

tha t autliority withi n on e year - o f th e dat e of

th e Department' s determination o f

it s fitness
. W e hav e complete dou r revie w o f

tli e informatio n Balti aprovide dan dhav e conclude dthat additiona l informatio n i s neede dt o determin e if Balti astil l meet s th e Department' s fitnes s criteri aan di

f goo dcaus e exis t

for awaive r fro msectio n 204.7
. Therefore , w e as k that Balti a respon dt o th e attache dinformatio n reques t withi n 1 4 day s o f

th e dat e of

thi s letter , h i addition , pleas e remembe r

tha t Balti ashoul dpromptl y provid e th e Departmen t with any informatio n regardin g change s i

t ma y underg o i n area s affectin g it s fitnes s {i.e. , management , operatin g plan s o r financial condition , complianc e disposition , o r ownership ) whil e it s applicatio n i s unde r revie w b y th e Department
.Than k

you fo r you r cooperatio n i

n thi s matter . I

f yo u hav e any question s regardin g this lette r o r th e requeste dinformation , pleas e feel fre e me a t (202 ) 366-9721
.
Sincerel y

Damo n D
. Walke r Transportatio n Industry Analys t Ai r Carrie r Fitnes s Divisio n

cc : Docke t

DOT-OST-2007-000 7 Mr
. Igo r Dmitrowsky Presiden t & CE O Balti aAi r Lines , Inc
. 63-2 5 Saunder s St. , ST E 7 1 RegoPark , N

Y 1137 4 Mr
. Joh n Krep p F A A FSDO-1 5 Easter n Regio n 99 0 Stewart

Ave. , Suit e 63 0 Garde n City , N

Y 1153 0INFORMATIO N REQUES T BALTI A AIRLINES , INC
. 1
. Pleas e provid e cunen t (witlii n 3 months ) compile dbalanc e sheet s an dincom e statement s for Balti aAirlines
. Th e financia l document s shoul db e accompanie db y explanator y footnote s i n sufficient

detai l t o allo w u s t o replicat e th e mathematic s used , astatemen t a s t o wh o prepare dthem , hi s o r he r qualification s an drelationship , if any , t o th e applicant, an dwhethe r

the y wer e prepare do n a n accma l o r

cas h basis
. 2
. Althoug h Balti aomitte dth e lin e ite mexpens e "aircraf t lease , " fro mit s firs t year operatin g expens e forecas t t o reflec t

it s decisio n t o purchas e a n aircraf t rathe r than leas e a n aircraf t i t doe s no t appear tha t Balti amad e correspondin g entrie s i n it s forecas t

to reflec t expense s associate dit s plan s t o leas e a n aircraft , suc h a s expense s for engin e lease s o r part s support . Balti apreviousl y provide dthat thes e expense s woul dhav e bee n assume db y th e lesso r

unde r it s aircraf

t leas e agreement . Therefor e pleas e provid e a revise dfirs t

year operatin g expens e forecas t t o addres s thi s discrepancy
. Th e forecas t shoul db e accompanie db y explanator y footnote s i n sufficien t

detai l t o allo w u s t o replicat e th e mathematic s used , astatemen t a s t o wh o prepare dthem , hi s o r he r qualification s an drelationship , if any , t o th e applicant, an dwhethe r the y wer e prepare do n a n accrua l o r

cas h basis
. 3
. Balita' s lis t

o f pre-operatin g expense s doe s no t appear t o reflec t

al l o f th e expense s associate dwith it s operatin g plans
. Fo r example , Balti ainitiall y intende dt o ente r int o a n aircraf t leas e agreemen t

wher e th e lesso r

woul dassum e certai n pre-operatin g expense s associate dwit

h readyin g th e aircraf

t for revenu e operations , includin g maintenanc e an d navigationa l upgrades , seat covers , interior , carpeting , firs t clas s seating , painting , engin e deposit s an drents . I

n addition , th e pre-operatin g expens e forecas t doe s no t

contai n a

n enti y for genera l an dadministrativ e cos t that woul db e incurre dprio r

t o initiatin g revenu e operations
. Therefore , pleas e provid e adetaile dpre-operatin g expens e forecas t for th e propose doperation s t o addres s thes e deficiencies
. Suc h lis t shoul ddistinguis h betwee n pre-operatin g expense s that hav e bee n paid , an dthos e whic h remai n t o b e paid
. 4
. Pleas e provid e th e FA A Schedul e o f Event s for

Baltia' s safety certification
. 5
. I n Balita' s initia l applicatio n th e compan y state dtha t i t anticipate draisin g a

n additiona l $3. 0 millio n fro mth e exercis e o f warrants . Wa s th e compan y successfu l i n raisin g th e capita l i t anticipate dfro mth e exercis e o f warrants ? I

n additional , pleas e discus s th e company' s result s o f

it s equity financin g sinc e bein g issue dcertificat e authorit y an dit s future plan s for

raisin g capita l fro mequity financing
. 6
. Pleas e provid e third-part y verificatio n evidencin g tha t eac h o f th e individual s extendin g lines-of-credi t

t o Balti ahav e th e requisit e fund s t o servic e th e lines-of-credit
. I n addition , pleas e verif

y th e tota l line-of-credi t

bein g mad e available , th e amoun t suc h credi t

lin e ha s bee n draw n dow n t o date , any precondition s that mus t b e met before fund s wil l b e advanced , th e term s o f

repayment , an dth e expiration date
.7
. Pleas e updat e th e third-part y verificatio n o f al l cas h deposit. s availabl e t o support Baltia' s propose doperations
. 8
. Pleas e provid e alis t

o f al l curren t

ke y managemen t

pei'somie l an didentif

y th e citizenshi p o f eac h membe r

o f Baltia' s ke y personnel
. 9
. Pleas e provide dupdate dcomplianc e informatio n require db y section s 204. 3 (I) , (m) , (o) , (p) , an d(q ) of

ou r mle s for Balti aan dit s ke y personnel
. 10
. Pleas e accompan y you r respons e t o this reques t

wit h th e certificatio n require db y Titl e 1 8 Unite dState s Cod e Sectio n 1001
.