# e U.S . Departmen t o f ^ 120 0 Ne w Jerse y Ave. , S.E . Transportatio n ' - •" ' U \ 1 [ . V-^"0,1KI;0^

/ Washington , D C 2059 0 Offic e o f th e Secretar y O f Transportatio n Jun e 2 , 201 0 Mr . Joh n T . Vit o Presiden t Crai g Ai r Center , Inc . 855-1 4 St . John s Bluf

f Rd . Jacksonville , F L 3222 5 Re : Docke t

OST-DOT-2010-000 1 Applicatio n o f

Crai g Ai r

Center , Inc . for 4 9 U.S. C §4173 8 Commute r Authorit y Dear Mr . Vito : W e hav e complete dou r

initia l revie w o f

th e applicatio n file do n Februar y 23 , 2010 , b y Crai g Ai r Center , Inc . ("Craig" ) for th e determinatio n o f

it s fitnes s t o conduc t

commute r ai r transportation . Thi s revie w ha s reveale dth e nee dfor additiona l and/o r

clarifyin g informatio n befor e w e ca n complet e processin g o f Craig' s application . Th e attache dInformatio n Reques t list s th e area s wher e furthe r

and/o r clarificatio n informatio n i s necessary . I as k tha t yo u respon dfull y t o thi s reques t withi n 3 0 day s o f

th e dat e o f

thi s letter . Th e origina l plu s 6 copie s o f you r respons e shoul db e file di n Docke t OST-DOT-2010-0001 . A s i s th e Department' s practice , further processin g o f

Craig' s applicatio n wil l b e deferre d pendin g receip t

o f thi s material . I n addition , pleas e remembe r tha t Crai g shoul dpromptl y provid e th e Departmen t

with an y 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 financia l 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 yo u for you r cooperatio n i n thi s matter . If yo u hav e an y question s regardin g thi s lette r o r th e requeste dinformation , pleas e fee l fre e t o contac t Michae l Pric e o f

m y staf f a t 202-366-9721 . Sincere !

'^aness aR . Balgobi n Actin g Chief

, Ai r Carrie r Fitnes s DivisionEnclosur e

cc : OST-DOT-2010-000 1 Mr . Willia mH . Edward s Orland o Fligh t

Standard s Distric t

Offic e 595 0 Hazeltin e Nationa l Driv e Citade l Internationa l - Suit e 50 0 Orlando , F L 3282 2INFORMATIO N REQUES T Crai g Ai r Center , Inc . GENERA L INFORMATIO N 1 . Pleas e plac e acop y o f Craig' s FA A Pre-applicatio n Statemen t o f Inten t (PASI ) i n th e publi c docke t

o f thi s proceeding , togethe r with informatio n o n an y change s tha t hav e bee n mad e t o thi s filin g sinc e it s origina l submissio n t o th e FAA . Pleas e provid e th e Departmen t

with astatu s update o n an y progres s th e ai r carrie r ha s mad e i n obtainin g it s update dFA A certification . 2 . Crai g state s tha t

it operate s si x (6 ) aircraf

t i n it s charte r

operation , includin g tw o Beechcraf t B190 0 airliners , tw o Beec h B20 0 Kin g Ai r turboprops , an dtw o Lea r jets . Pleas e provid e th e seating/carg o capacit y o f eac h typ e an dmodel o f

aircraf t an dwhethe r

th e aircraf

t ar e o r wil l b e owne do r

leased . Clearl y stat e whic h aircraf t wil l b e use dfor

th e propose dcommute r

operation . 3 . I f th e aircraf

t t o b e use di n th e propose doperatio n ar e currentl y leased , pleas e provid e acop y o f

th e execute dLeas e Agreemen t betwee n Crai g an dth e lesso r outlinin g th e term s an dcondition s o f th e agreement . 4 . Pleas e stat e whethe r Crai g has , o r

proposes , t o establis h maintenanc e o r operation s base s separat e fro mit s corporat e offices . Th e location s o f thos e base s shoul db e indicated . I f th e Crai g intend s t o contrac t out an y maintenance , training , o r

othe r operationa l functions , th e percentag e an dtyp e o f suc h contract s shoul db e indicated . MANAGEMEN T AN D KE Y TECHNICA L PERSONNE L 1 . Pleas e provid e achart showin g th e position s an doperatin g division s withi n th e organizatio n tha t

depict s whic h position s an dfunction s repor t t o whom . 2 . Pleas e provid e an update dresum e for Rober t Feindt , Craig' s Chie f Pilot , indicatin g hi s citizenshi p an daccountin g for th e employmen t

gap betwee n 1995

- 1999 . 3 . Pleas e provid e a

n update dresum e for

Ta dPennybaker , Craig' s Directo r o f Maintenanc e an dChie f

Inspector , indicatin g hi s citizenship . 4 . In it s application , Crai g state s tha t it s shareholder s lis t

i s comprise do f

tw o owners , Joh n T . Vit o an dJame s B . Vito . A resum e wa s not provide dfor

Jame s B . Vito . Pleas e provid e th e Departmen t adetaile dresum e fo r

Mr . Vito . Th e resum e shoul dinclud e th e hi s full name , citizenship , curren t address , an d telephon e numbers , togethe r with adetaile dlistin g o f al l previou s employmen t (both aviatio n an dnon-aviation ) an deducatio n an dtraining . Th e employmen t listin g shoul dinclud e th e nam e o f employer , locatio n (city , state) , typ e o fbusiness , position(s ) held , descriptio n o f responsibilities , an ddate s employed . Further , i f th e employe r

hel dan y aviatio n authority , th e typ e o f authorit y hel d shoul db e noted . An y period s o f unemploymen t

shoul db e accounte dfor . 5 . Fo r Craig' s ke y technica l personne l (Directo r o f Operations , Directo r

o f Maintenance , Directo r

o f Safety , Chie f

Pilot , an dChie f

Inspector) , astatemen t tha t thes e individual s mee t

th e qualification s for

thei r respectiv e position s a s se t fort h i n section s 119.6 5 an d119.6 7 o f th e Federa l Aviatio n Regulation s (1 4 CFR 119.6 5 an d119.67) . FINANCIA L POSITIO N 1 . Pleas e provid e balanc e sheet s an dincom e statement s o f th e applican t

an dal l relevan t corporation s togethe r

with thei r

accompanyin g explanator y footnote s (includin g adescriptio n o f th e company's significan t accountin g policies , suc h a s for depreciation , amortizatio n o f intangibles , overhauls , unearne drevenues , an d cos t capitalization),/o r

th e thre e mos t

recen t calenda r o r fisca l years , an dfo r

a perio dendin g n o mor e tha n thre e month s prio r t o th e dat e o f

filing . Thi s requiremen t

ma y b e me t

b y th e submissio n o f

financia l statements , preferabl y audited , o r

lO K and/o r lO Q report s file dwit h th e Securitie s an dExchang e Commission , if

applicable . a . Th e financia l document s shoul dinclud e astatemen t a s t o wh o prepare d them , 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 with Generall y Accepte d Accountin g Principles . I f a n annua l audit , review , o r compilatio n b y a

n independen t

CP A i s performed , th e nam e an daddres s o f th e firm , an dth e typ e o f service s provide dshoul db e listed . b . An y event s tha

t occurre dafte

r th e preparatio n o f

th e mos t recent financia l statement s tha

t ma y hav e asignificant

impac t on th e financial positio n o r o n th e operation s of

th e applican t

o r an y relevan t corporation . I

f n o suc h event s hav e occurred , provid e astatement t o tha t effect . 2 . Pleas e provid e Craig' s servic e proposa l an daforecas t balanc e shee t

an dprofi t an dlos s statemen t

(broke n dow n b y mont h o r b y quarter ) fo r

th e firs t twelv e full month s o f

actua l fligh t

operation s conducte dunde r th e commute r

authorit y a

t issue . Thes e document s shoul dinclud e anarrativ e 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 h o r accrua l basis . Th e descriptio n shoul db e in sufficient detai l t o allo w th e Department' s staf f t o replicat e th e mathematic s involve dan dt o determin e th e reasonablenes s o f th e forecast .Th e revenu e forecas t shoul dindicate: ' a . Th e propose dmarket s andnumber of dail y flight s i

n eac h market . b . Th e type , model , seating/carg o capacity , an dnumber of th e aircraf

t to b e used . c . Th e number

of passenger s to b e carrie dan dexpecte dloadfactors . d . Th e fare s or

rate s to b e charged , andth e resultin g gros s revenues . e . Th e tota

l number of revenu e bloc k

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

of an y seasona l traffi c peaks . Th e forecas t

expens e dat ashoul dshow : a . Detai l b

y expens e categor

y (direc t an dindirect) , indicatin g ho w th e amount s wer e computed . I

f Crai g propose s to operat e more tha n on e aircraf

t typ e or model , i t shoul dinclud e separate estimate s of expense s fo

r training , maintenance , preparatio n of

manuals , etc. , fo

r eac h aircraf

t typ e o r model . b . Fo r indirec t expenses , i

f Crai g i s engage di

n other aviation-relate doperation s (e.g. , aircraf

t leasin g or

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 other operations , wit

h appropriate explanations . Th e applican t shoul dprepar e aconsolidate dforecas t income statement

fo r th e entir e busines s a s wel l a s separat e forecas t statement s fo r eac h operatin g segment , includin g th e propose dcommuter operation . Pleas e provid e a

n estimate of

th e amount

of capital Crai g wil l nee dto commenc e operation s whic h show s th e basi s of th e estimat e (e.g. , th e amount s fo r pre-operatin g costs , includin g aircraf

t deposit s o r

leases , offic e an dhanga r space , insurance , salaries , training , FA

A an dDepartmen t

certifications , workin g capital , etc.) . Th e estimate s shoul dinclud e anarrativ e explainin g th e basi s fo r th e amount s shown . Pleas e provid e adescriptio n of th e propose dfor

man dsourc e of

capital t o suppor

t th e Craig' s operations . a . Crai g provide dcash , securities , an dpropert y statement s o n behal f

o f th e carrier' s tw o shareholders , Joh n T . Vito an dJame s B . Vito . I f th e resource s o

f a n individual(s ) or

other organization(s ) wil l b e mad e availabl e to Crai g to suppor t it s operations , provid e astatement fro msuc h individual(s ) o r

organization(s ) o

f th e amount

o f suc h availabl e resource s an dth e term s or condition s under

whic h suc h fund s will b e provided . Copie s o f th e personal or

corporate financial 1 If Crai g s o request s unde r

1 4 CF R302.12 , th e Departmen t wil l generall y gran t

confidentia l treatmen t

t o informatio n identifyin g th e specifi c market s t o b e served , propose dfrequenc y o f service , fares , estimate d revenu e passenge r

mile s an davailabl e seat miles , an dprojectedloa dfactor . However , i f th e applican t request s confidentia l treatmen t o f informatio n identifyin g it s propose dmarket s an drelate dtraffi c forecasts , i t mus t provid e fo

r th e publi c recor dabrie f descriptio n o f

th e typ e o f

markets/citie s t o b e serve dan dth e tota l numbe r

o f flight s an drevenu e bloc k hour s t o b e performed .statement s of th e individual(s ) o r

organization(s ) shoul dals o b e provided . Such documentatio n shoul dclearl y establis h th e capabilit y o f th e individual(s ) or organization(s ) to fulfil

l an y financial commitmen t

mad e to or

on behal f

of th e applicant . I

n thi s connection , th e liquidit y of any assets , other

tha n cash , containe di

n thes e document s shoul db e mad e clea r throug h appropriate footnote s (e.g. , th e curren t

market valu e o f stock s an dbond s tha

t ca n b e readil y converte d to cas h shoul db e noted) . Whenever possible , third-part

y verificatio n of

th e asset s andvalue s shoul db e provide d(e.g. , letter s fro mbank s o r

stockbroker s holdin g liqui dassets , or

recent appraisal s of

real assets) . 5 . Pleas e provid e third-part y verificatio n o f al l lines-of-credi t

available , i

f any , t o suppor t Craig' s propose doperations . Thi s verificatio n shoul dinclud e 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 , an y condition s tha t mus t b e me t befor e fund s wil l b e advanced , th e term s o f repayment , an dth e expiratio n date . Further , i f th e line-of-credi t

i s bein g supplie db y an individua l o r organizatio n (othe r

tha n arecognize dfinancial institution ) copie s o f

th e persona l o r

corporat e financia l statement s o f th e individua l o r

organizatio n shoul dals o b e provided . 6 . I f borrowe dcapital o r

aline-of-credi t

i s to b e employed , th e tota l amount , curren t balance , source , security , provision s t o conver t th e deb t to equity , andterm s o

f repaymen t

to th e lender

shoul db e stated . Verificatio n of thi s informatio n fro

mth e lender shoul db e provided . 7 . Pleas e provid e third-part y verificatio n o f al l cas h deposit s availabl e t o support Craig' s propose doperations . CERTIFICATIO N Th e informatio n provide dpursuan t t o thi s Informatio n Reques t shoul db e accompanie d b 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 o f my knowledg e an dbelief. Pursuan t t o Titl e 1 8 Unite dState s Cod e Sectio n 1001 , I [th e individua l signin g th e application , wh o shal l b e aprincipa l owner , senio r

officer , o r

interna l counse l o f

th e applicant] , i n my 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 dwillfull 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 h contai n suc h statement s i n cormectio n wit h th e preparation , filin g o r

prosecutio n o f

th e application . I understan dtha t a n 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 dnot

mor e tha n fiv e years , o r

both .