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LAW OFFICE OF JOHN MIETUS, LLC
6400 GOLDSBORO ROAD, SUITE 215 BETHESDA, MD 20817-5826
JOHN R. MIETUS, JR.
(202) 747-5212 [email protected]
April 7, 2016
BY ELECTRONIC MAIL Ms. Lauralyn J. Remo Chief, Air Carrier Fitness Division Office of Aviation Analysis Department of Transportation 1200 New Jersey Avenue, SE Washington DC 20590 Re: Rectrix Aviation, Inc., Docket OST-2016-0015 Application for a Commuter Air Carrier Authorization Dear Ms. Remo: Rectrix Aviation, Inc. (“Rectrix”) is pleased to supplement its application to respond to the questions posed by your letter of March 9, 2016. Those questions are reprinted below with Rectrix’s responses. Confidential business information, for which the accompanying Motion seeks confidential treatment under Rule 12, has been redacted from the forecast income statements in Exhibit 18.
1. [Provide] detail on Rectrix's current air taxi operations. Please state the number of flight hours operated in calendar year 2015 and identify the major markets in which Rectrix conducts air taxi operations, including a summary of the average number of flights per month in each market. Also, please summarize any other aviation services or business activities Rectrix may currently conduct, such as the percentage of operations dedicated to Part 91 operations.
Rectrix operated seven aircraft under Federal Aviation Regulations Part 135 in calendar year 2015 for a total of 1928.5 hours. Just over three-quarters of Rectrix’s Part 135 operations (79%) are within the United States and 12% in the Caribbean (except the Bahamas, constituting an additional 3%). The remaining international flights operate to Canada (2%), Mexico (2%), Central America (1%), and Europe (1%). Rectrix also flew repositioning flights totaling 519.1 hours in support of Part 91 and Part 135 operations.
Rectrix Aviation, Inc. April 7, 2016
Page 2
About one-third of Rectrix operations have been dedicated to the support of Part 91 operations in which owners employ aircraft managed by Rectrix. Last year 1122.8 hours were flown in Rectrix-managed aircraft. Other Rectrix activities include aircraft brokerage and charity flights.
2. Provide a complete copy of Rectrix's current approved OST Form 4507.
Rectrix’s latest air taxi registration, dated August 12, 2015, is attached as Exhibit 12.
3. Provide the status of the applicant's commuter operations certification with the Federal
Aviation Administration ("FAA"). Rectrix has submitted its Pre-Application Statement of Intent to the FAA and has been working with the FAA to update the Rectrix training program. It expects to submit revision #10 to its General Operations Manual, which will address commuter operations, to the FAA for review in the near future.
4. Please state the estimated percentage of maintenance, training, or other operational
functions that Rectrix will contract out. Also, please identify the corporate position that will be responsible for overseeing the contracts, along with the name, background, and credentials of the individual selected for this position. Rectrix should also indicate to whom on the corporate structure this position will report, how the oversight will be accomplished, and whether the position is part-time or full-time.
Rectrix estimates that 90% of its maintenance and 50% of its training is contracted out to third-party providers. Primary oversight responsibility for these functions rests with Rectrix’s full-time Directors of Maintenance and Operations, respectively, who report to a new Chief Executive Officer, Paul Foley, whose appointment is discussed below.
5. Has Rectrix taken possession of the King Air 350i aircraft it intends to operate in scheduled passenger service? If so, who is the lessor? If not, when does the air carrier intend to take possession of the aircraft?
On March 31, 2016 Rectrix purchased one King Air 350i, serial number FA-84, using secured financing from Florida Community Bank, N.A. (FCB), which has financed four aircraft in Rectrix’s charter operations (Exhibit 1, page 3). Rectrix may substitute a new registration number for the current N477AE. FCB has also approved and funded secured financing for the second aircraft, which Rectrix hopes to identify shortly.
Rectrix Aviation, Inc. April 7, 2016
Page 3
6. Please provide a sworn affidavit stating that each aircraft owned or leased has been certified by the FAA and currently complies with all FAA safety standards.
The fleet affidavit is attached as Exhibit 13. 7. Please provide a list of Rectrix Commercial Aviation Services, Inc.'s ("RCAS") subsidiaries, along with a description of each subsidiary's principal business and relation to the applicant. If any of the subsidiaries are engaged in the business of aeronautics, please so state.
Exhibit 14 contains an organization chart of RCAS and its subsidiaries. Rectrix Administrative Services, Inc. provides employee services to all of the companies. Rectrix Aerodrome Centers, Inc. recognizes separate divisions for its fixed-base operations at Sarasota-Bradenton (Florida) and in Massachusetts at Barnstable/Hyannis (including FBO Air Cape Cod), Worcester Regional, and Westfield-Barnes Regional Airports. AirFlyte, Inc. provides Part 145 repair station services in Sarasota and in Bedford and Worcester, Massachusetts.
MANAGEMENT AND KEY TECHNICAL PERSONNEL
Mr. Cawley is the Chief Executive Officer, Treasurer, and Secretary of RCAS and all of its subsidiaries except Rectrix, where he is Treasurer and Secretary. Rectrix recently named a new Chief Executive Officer, Paul Foley, a long-time airline executive who was most recently Executive Vice President & Chief Operating Officer of Mesa Air Group. Mr. Foley’s resume is attached as Exhibit 15, and he has no information to report of the types described in sections 204.3(l-q) of the Department’s Rules. Ms. Watts is the President of RCAS and all of its subsidiaries, including Rectrix.
FINANCIAL POSITION AND OPERATING PLANS Rectrix provided consolidated current and historical financial statements of its parent company and not itself. In addition, Rectrix did not present a pre-operating cost forecast. Further, the applicant did not provide detailed information on how it intends to fund its proposed scheduled operations. Therefore, please provide the following information for Rectrix: 1. A current (within 3 months) balance sheet and income statement, together with their accompanying explanatory footnotes. 2. Balance sheets and income statements, together with their accompanying explanatory footnotes, for calendar years 2012, 2013, and 2014.
Rectrix Aviation, Inc. April 7, 2016
Page 4
Attached as Exhibit 16 are Rectrix-only financial reports that were derived from RCAS consolidated financials, like those previously filed with the Department.
3. A detailed pre-operating cost forecast. Sufficient detail should be provided to allow us to replicate the mathematics used.
The pre-operating forecast was included as a note to Exhibit 9 and is reproduced separately as Exhibit 17.
4. A consolidated forecast income statement for the entire business, as well as separate forecast statements for Rectrix's air taxi and proposed commuter operations. The forecasts should include, for each month, the number of flights operated, the number and type of aircraft in use, and the number of block hours operated, and that, at a minimum, allocates the indirect expenses on a rational basis between its proposed commuter operations and its other operations, as well as any other explanatory information required to explain how the costs have been derived.
Forecast income statements for the first full year of combined charter/management and commuter operations are attached as Exhibit 18.
5. Please provide third-party verification of all lines-of-credit available to support Rectrix's proposed operations. This verification should include the total line-of-credit being made available, the amount such credit line has been drawn down to date, any conditions that must be met before funds will be advanced, the terms of repayment, and the expiration date. Further, if the line-of-credit is being supplied by an individual or organization (other than a recognized financial institution) copies of the personal or corporate financial statements of the individual or organization should also be provided.
Rectrix will provide this information shortly.
Rectrix AviationExhibit 12(3 pages)
Rectrix AviationExhibit 13(1 page)
Rectrix AviationExhibit 14 (1 page)
Rectrix Aviation Exhibit 15 Page 1 of 2
PAUL FOLEY RESUME
EXPERIENCE:
Chief Executive Officer Rectrix Aviation, Inc., Concord, MA March 2016 -- Present
Executive Vice President & Chief Operating Officer Mesa Air Group, Phoenix, AZ October 2008 – March 2016
Member Board of Advisors Fareportal Inc., New York, NY March 2014 – Present
Chairman of the Board & CEO Big Sky Airlines, Billings, MT October 2007 – September 2008
Chairman of the Board The Courage Center, Golden Valley, MN November 2003 – September 2008
President, CEO & CFO MAIR Holdings, Minneapolis, MN September 1999 – September 2008 Publicly (NASDAQ) traded holding company which owned Mesaba Airlines and Big Sky Airlines
Board Member Zomax Inc., Plymouth, MN May 2005 – July 2007 Member of Audit, Compensation and Executive Committees, Chairman of the Compensation Committee
President & CEO Mesaba Airlines, Minneapolis, MN September 1999 – April 2007
Rectrix Aviation Exhibit 15 Page 2 of 2
Chairman of the Board Regional Airline Association, Washington, DC April 2003 – March 2005
Vice President Operations Atlas Air, New York, NY and Golden, CO December 1996 – September 1999
Senior Vice President - Operations LSG Sky Chefs, Arlington, TX January 1992 – December 1996
President Continental Airlines (Chelsea Catering Corporation), Houston, TX February 1989 – December 1991
Regional Vice President Concessionaire - A Delaware North Company, Grand Prairie, TX July 1987 – February 1989
Multiple positions from Management Trainee to Regional Vice President American Airlines - Sky Chefs, Arlington, TX June 1974 - July 1987
EDUCATION:
M.B.A., Southern Methodist University, Dallas, TX B.S., Cornell University, Ithaca, NY
Rectrix Aviation, Inc. Profit & Loss
Years Ending 2012, 2013, 2014 and 2015
Page 1 of 1
2012 2013 2014 2015
Ordinary Income/Expense
Income
Accounting Fee - Managed A/C 6,875.00 7,500.00 12,500.00 15,000.00
Total Charter 5,803,329.93 6,279,453.97 8,334,018.69 10,537,808.95
Total Maintenance 112,964.76 99,422.39 66,195.68 31,138.00
Management Fee 73,000.00 81,000.00 125,036.00 199,209.99
Recoverable Expenses - Mng A/C 851,813.17 763,454.40 3,613,004.90 3,505,728.17
Total Income 6,847,982.86 7,230,830.76 12,150,755.27 14,288,885.11
Cost of Goods Sold
Aircraft Lease Costs 210,000.00 0.00 0.00 0.00
Brokered Charter 1,612,203.33 1,141,264.68 3,326,167.18 2,093,106.66
Catering/Supplies 50,871.89 29,118.90 43,910.87 46,344.07
Total Crew RON Costs 175,392.96 318,489.58 496,525.34 734,637.08
Engine & APU Maintenance 128,205.99 0.00 0.00 0.00
Total Fuel 1,581,049.22 1,683,460.99 2,820,222.13 3,116,799.64
Total Landing, Parking, FBO Fees 244,430.49 291,691.38 540,245.44 778,956.77
Total COGS 4,002,153.88 3,464,025.53 7,227,070.96 6,769,844.22
Gross Profit 2,845,828.98 3,766,805.23 4,923,684.31 7,519,040.89
Expense
Advertising & Marketing 6,140.00 1,039.52 28,754.14 6,461.37
Aircraft Detailing 10,385.49 20,251.11 14,788.74 38,359.84
Amortization Closing Costs Lear 0.00 0.00 5,358.94 0.00
Amortization Expense 0.00 750.00 1,565.92 0.00
Total Bank Charges 7,788.47 2,556.66 4,041.78 2,081.42
Certificate amortization 31,478.00 63,664.00 65,269.22 10,746.00
Conferences/Meetings 196.22 2,288.59 0.00 0.00
Contributions 13,000.00 13,250.00 12,500.00 14,103.30
Depreciation Expense 38,003.00 3,112,323.00 1,675,318.28 0.00
Dues & Subscriptions 36,317.96 113,731.85 142,050.47 942,889.37
Fees Paid 38,564.78 19,706.60 29,850.65 28,862.60
Total Insurance 84,551.30 131,292.63 101,279.88 127,639.90
Interest Expense 109,000.00 285,542.68 379,963.59 799,759.75
Miscellaneous 1,668.79 22,674.34 19,845.57 -8,170.03
Total Office Supplies 7,879.45 7,779.10 4,522.26 6,010.55
Total Outside Services 76,178.70 48,680.14 90,045.59 90,173.30
Total Professional Fees 15,353.43 45,242.29 58,296.55 42,764.34
Total Rent 91,013.69 48,749.58 137,137.23 122,022.37
Repairs & Maintenance 531,920.67 801,883.16 1,851,952.89 838,833.08
Total Salary/Wages & Benefits 1,129,000.33 1,169,724.00 1,593,064.73 2,254,939.97
Software 18,846.00 2,280.00 2,029.99 0.00
Total Supplies 18,979.57 9,544.01 26,263.59 26,568.85
Taxes Paid 4,149.64 0.00 0.00 0.00
Total Training 251,795.03 184,930.70 417,745.04 276,453.79
Total Travel & Ent 78,939.97 12,508.95 18,014.92 13,213.59
Uniforms 6,061.37 5,985.43 3,225.80 6,497.06
Total Utilities 10,733.04 6,003.77 3,069.93 354.61
Total Expense 2,617,944.90 6,132,382.11 6,685,955.70 5,640,565.03
Net Ordinary Income 227,884.08 -2,365,576.88 -1,762,271.39 1,878,475.86
Other Income/Expense
Other Income
Interest Income 0.00 539.98 0.00 0.00
Total Other Income 0.00 539.98 0.00 0.00
Net Other Income 0.00 539.98 0.00 0.00
Net Income 227,884.08 -2,365,036.90 -1,762,271.39 1,878,475.86
Add BackAmortization 31,478.00 64,414.00 72,194.08 10,746.00Depreciation 38,003.00 3,112,323.00 1,675,318.28 0.00Interest 109,000.00 285,542.68 379,963.59 799,759.75EBITDA 406,365.08 1,097,242.78 365,204.56 2,688,981.61
1) Depreciation expense and amortization expenses booked in December during audit which is not complete for 2015.
2)Dues and Subscriptions increase in 2015 from 2014 represents enrollment in Honeywell MSP for three purchased and managed aircraft for Charter.
Rectrix AviationExhibit 16(3 pages)
Rectrix Aviation, Inc. Profit & Loss
January 2016
Page 1 of 1
Jan 16
Ordinary Income/Expense
Income
Accounting Fee - Managed A/C 1,250.00
Charter
Charter Rectrix/Managed 1,285,847.18
Landing/Parking/Ramp/FBO Fees 46,030.50
Total Charter 1,331,877.68
Management Fee 20,760.00
Recoverable Expenses - Mng A/C 265,722.43
Services 1,016.74
Total Income 1,620,626.85
Cost of Goods Sold
Brokered Charter 229,209.01
Catering/Supplies 4,341.16
Total Crew RON Costs 76,832.03
Total Fuel 260,123.72
Total Landing, Parking, FBO Fees 34,394.11
Other Fees/Expenses 1,298.00
Total COGS 606,198.03
Gross Profit 1,014,428.82
Expense
Advertising & Marketing 287.19
Aircraft Detailing 3,254.00
Total Bank Charges 145.44
Certificate amortization 895.50
Contributions 2,373.87
Dues & Subscriptions 125,928.64
Fees Paid 3,032.54
Total Insurance 18,340.41
Interest Expense - Lear 45XR 67,206.00
Miscellaneous 943.37
Office Supplies 673.51
Total Outside Services 7,865.18
Total Professional Fees 10,550.75
Total Rent 10,000.00
Repairs & Maintenance 269,405.38
Total Salary/Wages & Benefits 186,822.92
Total Supplies 1,309.71
Training 92,196.00
Total Travel & Ent 157.30
Uniforms 412.50
Total Utilities 92.00
Total Expense 801,892.21
Net Ordinary Income 212,536.61
Net Income 212,536.61
Rec
trix
Avi
atio
nB
alan
ce S
heet
Cal
enda
r Yea
rs' E
nded
Dec
embe
r 31,
2012
2013
2014
2015
Cur
rent
Ass
ets
Cas
h92
,896
$
(34,
963)
$
4,
674,
716
$
22
3,77
6$
Acc
ount
Rec
eiva
bles
415,
058
$
32
9,50
3$
542,
617
$
447,
066
$
Pre
paid
Exp
ense
s23
,757
$
49,0
82$
92
,339
$
238,
743
$
Tot
al C
urre
nt A
sset
s53
1,71
1$
34
3,62
1$
5,
309,
672
$
909,
585
$
Fixe
d A
sset
s A
ircra
ft-
$
5,91
4,94
6$
24
,498
,069
$
32
,064
,256
$ E
quip
men
t16
5,44
3$
16
5,44
3$
1,
217,
389
$
1,25
6,94
6$
F
urni
ture
40,4
01$
58
,616
$
51,1
10$
4,
810
$
Fix
ed A
sset
s, g
ross
205,
845
$
6,
139,
005
$
25,7
66,5
68$
33,3
26,0
12$
Acc
umul
ated
Dep
reci
atio
n(9
2,06
2)$
(3,2
05,1
35)
$
(2,6
55,9
82)
$
(2
,653
,415
)$
F
ixed
Ass
ets,
net
113,
783
$
2,
933,
870
$
23,1
10,5
86$
30,6
72,5
97$
Inta
ngbl
e A
sset
s, n
et1,
409,
903
$
1,57
2,60
8$
1,
691,
165
$
2,
369,
950
$
Oth
er C
urre
nt A
sset
s39
9,30
0$
737,
300
$
20
4,08
3$
16
,800
$
Tota
l Ass
ets
2,45
4,69
6$
5,
587,
399
$
30,3
15,5
06$
33,9
68,9
32$
Liab
ilitie
s &
Equ
ities
Cur
rent
Lia
bilit
ies
Acc
ount
s P
ayab
le1,
051,
049
$
1,01
3,64
9$
1,
073,
060
$
79
7,44
4$
Cus
tom
er D
epos
its34
8,46
2$
219,
236
$
16
2,83
0$
37
7,74
0$
O
ther
Res
erve
s &
Acc
rual
s51
,354
$
276,
310
$
27
9,02
4$
40
,454
$
Cur
rent
Por
tion
of L
ong
term
Deb
t-
$
-
$
2,08
9,27
8$
2,08
9,27
8$
To
tal C
urre
nt L
iabi
litie
s1,
450,
866
$
1,50
9,19
5$
3,
604,
191
$
3,
304,
916
$
Long
term
Deb
t-
$
4,84
7,29
5$
21
,237
,019
$
19
,428
,868
$
Equ
ityIn
vest
men
t fro
m P
aren
t3,
815,
108
$
2,54
8,24
4$
8,
353,
125
$
12
,676
,725
$ R
etai
ned
Ear
ning
s(3
,039
,161
)$
(952
,298
)$
(1,1
16,5
57)
$
(3
,320
,053
)$
N
et In
com
e22
7,88
4$
(2,3
65,0
37)
$
(1,7
62,2
71)
$
1,
878,
476
$
Tota
l Equ
ity1,
003,
831
$
(769
,091
)$
5,47
4,29
7$
11,2
35,1
48$
Tota
l Lia
bilit
ies
& E
quity
2,45
4,69
6$
5,
587,
399
$
30,3
15,5
07$
33,9
68,9
32$
1)Ca
sh b
alan
ce in
201
4 re
pres
ents
tim
ing
of b
ank
borr
owin
gs a
nd t
he c
losi
ng o
f ai
rcra
ft p
urch
ased
in 2
015.
2)Si
x ai
rcra
ft p
urch
ased
for
cha
rter
dur
ing
2013
-201
5.
3)D
epre
ciat
ion
book
ed in
Dec
embe
r at
aud
it w
hich
is n
ot c
ompl
ete
for
2015
.
4)Cu
rren
t po
rtio
n of
long
ter
m d
ebt
adju
sted
at
Dec
embe
r 31
at
audi
t w
hich
is n
ot c
ompl
ete
for
2015
.
Rectrix Aviation Exhibit 17
(1 page)
PRE-OPERATING EXPENSES
Rectrix estimates $617,000 will be required to commence commuter operations. This will include aircraft deposits, ground service equipment, salaries (before operations commence) and initial pilot training.
Aircraft Deposits $200,000 Ground Equipment 100,000 First Quarter Insurance 12,000 Salaries 150,000 Training 105,000 Contingency 50,000
Rectrix will, of course, rely on many of the assets, real estate, and human resources employed in its charter and fixed base operations to support commuter service. For example, the allocation of existing Part 119 management personnel has been increased for the initial three months of operations and allows for a 25% allocation between the charter/management and proposed commuter operations. Rectrix will use office and hangar space at its current facilities, and at both airports to be served initially, Rectrix already provides under wing service to commercial carriers and has ground service equipment in place.
Rectrix AviationExhibit 18(3 pages)
REC
TRIX
AVI
ATIO
N, I
NC
.C
OM
MU
TER
AU
THO
RIT
Y O
PE
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PR
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Mon
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th 3
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th 4
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th 5
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th 6
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th 7
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onth
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onth
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TOTA
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UM
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RIC
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OSS
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E
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ECT
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NSE
SC
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ES
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9,47
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00$
9,27
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$
9,
679.
50$
9,31
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$
9,
274.
50$
9,31
5.00
$
9,
477.
00$
9,47
7.00
$
8,
586.
00$
111,
982.
50$
P
FCs
10,4
86$
9,
872
$
10,2
67$
10
,091
$
10,0
47$
10
,486
$
10,0
91$
10
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$
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10
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$
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9,
302
$
121,
314
$
LAN
DIN
G F
EE
S19
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$
18,0
00$
18
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$
18,4
00$
18
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$
19,1
20$
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$
18,3
20$
18
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$
18,7
20$
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$
16,9
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22
1,20
0$
FU
EL
41,4
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39
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$
40,6
15$
39
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$
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41
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$
39,9
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$
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$
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$
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$
MA
INTE
NA
NC
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ES
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T H
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$
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$
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$
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$
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20$
64
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$
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20$
65
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$
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60$
77
4,20
0$
TO
TAL
DIR
ECT
EXPE
NSE
S14
7,68
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139,
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$
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4,59
9$
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$
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9$
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$
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2,12
7$
141,
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$
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$
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004
$
1,
708,
612
$
IND
IREC
T EX
PEN
SES
Airc
raft
40,0
00$
40
,000
$
40,0
00$
40
,000
$
40,0
00$
40
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$
40,0
00$
40
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$
40,0
00$
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$
40,0
00$
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$
480,
000
$
Airc
raft
Cle
anin
g50
0$
500
$
50
0$
500
$
50
0$
500
$
50
0$
500
$
50
0$
500
$
50
0$
500
$
6,
000
$
In
sura
nce:
H
ull &
Lia
bilit
y4,
014.
17$
4,01
4$
4,
014
$
4,01
4$
4,
014
$
4,01
4$
4,
014
$
4,01
4$
4,
014
$
4,01
4$
4,
014
$
4,01
4$
48
,170
$
M
edic
al/D
enta
l14
,274
$
14,2
74$
14
,274
$
12,3
37$
12
,337
$
12,3
37$
12
,337
$
12,3
37$
12
,337
$
12,3
37$
12
,337
$
12,3
37$
15
3,85
4$
W
orke
r's C
omp.
1,61
0$
1,
610
$
1,61
0$
1,
610
$
1,61
0$
1,
610
$
1,61
0$
1,
610
$
1,61
0$
1,
610
$
1,61
0$
1,
610
$
19,3
20$
Tota
l Ins
uran
ce19
,899
$
19,8
98$
19
,898
$
17,9
61$
17
,961
$
17,9
61$
17
,961
$
17,9
61$
17
,961
$
17,9
61$
17
,961
$
17,9
61$
22
1,34
4$
Mis
cella
neou
s/C
ontin
genc
yM
arke
ting
P/R
3,00
0$
1,
500
$
1,50
0$
30
0$
300
$
30
0$
300
$
30
0$
300
$
30
0$
1,50
0$
1,
500
$
11,1
00$
Offi
ce S
uppl
ies
300
$
30
0$
300
$
30
0$
300
$
30
0$
300
$
30
0$
300
$
30
0$
300
$
30
0$
3,60
0$
Out
side
Ser
vice
s1,
000
$
1,00
0$
1,
000
$
1,00
0$
1,
000
$
1,00
0$
1,
000
$
1,00
0$
1,
000
$
1,00
0$
1,
000
$
1,00
0$
12
,000
$
P
ayro
ll Ta
xes
9,04
0$
9,
040
$
9,04
0$
7,
813
$
7,81
3$
7,
813
$
7,81
3$
7,
813
$
7,81
3$
7,
813
$
7,81
3$
7,
813
$
97,4
41$
Pro
fess
iona
l Fee
s:
Com
pute
r Ser
vice
s10
0$
100
$
10
0$
100
$
10
0$
100
$
10
0$
100
$
10
0$
100
$
10
0$
100
$
1,
200
$
C
onsu
ltant
/Leg
al50
0$
500
$
50
0$
500
$
50
0$
500
$
50
0$
500
$
50
0$
500
$
50
0$
500
$
6,
000
$
To
tal P
rofe
ssio
nal S
ervi
ces
600
$
60
0$
600
$
60
0$
600
$
60
0$
600
$
60
0$
600
$
60
0$
600
$
60
0$
7,20
0$
Ren
t (Te
rmin
al S
tatio
ns)
7,00
0$
7,
000
$
7,00
0$
7,
000
$
7,00
0$
7,
000
$
7,00
0$
7,
000
$
7,00
0$
7,
000
$
7,00
0$
7,
000
$
84,0
00$
Sal
arie
s an
d W
ages
: E
mpl
oyee
s Cor
pora
te O
verh
ead
12,5
00$
12
,500
$
12,5
00$
6,
250
$
6,25
0$
6,
250
$
6,25
0$
6,
250
$
6,25
0$
6,
250
$
6,25
0$
6,
250
$
93,7
50$
DO
Allo
catio
n5,
000
$
5,00
0$
5,
000
$
2,50
0$
2,
500
$
2,50
0$
2,
500
$
2,50
0$
2,
500
$
2,50
0$
2,
500
$
2,50
0$
37
, 500
$
D
OM
Allo
catio
n5,
000
$
5,00
0$
5,
000
$
2,50
0$
2,
500
$
2,50
0$
2,
500
$
2,50
0$
2,
500
$
2,50
0$
2,
500
$
2,50
0$
37
,500
$
C
hief
Pilo
t Allo
catio
n3,
334
$
3,33
4$
3,
334
$
1,66
7$
1,
667
$
1,66
7$
1,
667
$
1,66
7$
1,
667
$
1,66
7$
1,
667
$
1,66
7$
25
,005
$
P
ilots
(7)
21,2
50$
21
,250
$
21,2
50$
21
,250
$
21,2
50$
21
,250
$
21,2
50$
21
,250
$
21,2
50$
21
,250
$
21,2
50$
21
,250
$
255,
000
$
A&
P
5,62
5$
5,
625
$
5,62
5$
5,
625
$
5,62
5$
5,
625
$
5,62
5$
5,
625
$
5,62
5$
5,
625
$
5,62
5$
5,
625
$
67,5
00$
Res
erva
tions
/Flig
ht F
ollo
win
g (2
)5,
833
$
5,83
3$
5,
833
$
5,83
3$
5,
833
$
5,83
3$
5,
833
$
5,83
3$
5,
833
$
5,83
3$
5,
833
$
5,83
3$
70
,000
$
S
tatio
n M
anag
ers
(2)
7,50
0$
7,
500
$
7,50
0$
7,
500
$
7,50
0$
7,
500
$
7,50
0$
7,
500
$
7,50
0$
7,
500
$
7,50
0$
7,
500
$
90,0
00$
Tick
et A
gent
s (6
)12
,480
$
12,4
80$
12
,480
$
12,4
80$
12
,480
$
12,4
80$
12
,480
$
12,4
80$
12
,480
$
12,4
80$
12
,480
$
12,4
80$
14
9,76
0$
R
amp
Age
nts
(8)
16,6
40$
16
,640
$
16,6
40$
16
,640
$
16,6
40$
16
,640
$
16,6
40$
16
,640
$
16,6
40$
16
,640
$
16,6
40$
16
,640
$
199,
680
$
Tota
l Sal
arie
s an
d W
ages
95,1
62$
95
,162
$
95,1
62$
82
,245
$
82,2
45$
82
,245
$
82,2
45$
82
,245
$
82,2
45$
82
,245
$
82,2
45$
82
,245
$
1,02
5,69
5$
Sup
plie
s20
0$
200
$
20
0$
200
$
20
0$
200
$
20
0$
200
$
20
0$
200
$
20
0$
200
$
2,
400
$
Tr
aini
ng10
,208
.33
$
10,2
08.3
3$
10
,208
.33
$
10,2
08.3
3$
10
,208
.33
$
10,2
08.3
3$
10
,208
.33
$
10,2
08.3
3$
10
,208
.33
$
10,2
08.3
3$
10
,208
.33
$
10,2
08.3
3$
12
2,50
0$
U
nifo
rms
250
$
25
0$
250
$
25
0$
250
$
25
0$
250
$
25
0$
250
$
25
0$
250
$
25
0$
3,00
0$
Util
ities
-$
-
$
-$
-
$
-$
-
$
-$
-
$
-$
-
$
-$
-
$
-$
To
tal I
ndire
ct E
xpen
ses
187,
260
$
18
5,75
9$
185,
759
$
16
8,47
8$
168,
478
$
16
8,47
8$
168,
478
$
16
8,47
8$
168,
478
$
16
8,47
8$
169,
678
$
16
9,67
8$
2,07
7,47
9$
Tota
l Dire
ct a
nd In
dire
ct C
osts
334,
948
$
32
4,79
6$
330,
358
$
31
0,60
4$
309,
986
$
31
6,16
6$
310,
604
$
30
9,98
6$
310,
604
$
31
3,07
6$
314,
276
$
30
0,68
1$
3,78
6,09
2$
Net
Inco
me
693,
208
$
Rec
trix
Avi
atio
n, In
c.C
onso
lidat
ed C
hart
er 1
35 a
nd C
omm
uter
Ope
ratio
ns
Firs
t Tw
elve
Mon
ths
of O
pera
tions
MO
NTH
1M
ON
TH 2
MO
NTH
3M
ON
TH 4
MO
NTH
5M
ON
TH 6
MO
NTH
7M
ON
TH 8
MO
NTH
9M
ON
TH 1
0M
ON
TH 1
1M
ON
TH 1
2TO
TAL
Rev
enue
Cha
rter R
even
ueAd
d-on
's (1
0%)
Tota
l Cha
rter R
even
ueO
ther
Rev
enue
(Cha
rter A
ir Ta
xi O
pera
tions
) M
anag
emen
t Fee
A
dmin
istra
tive
Fee
Han
ger R
ent
Rec
over
able
Exp
ense
s T
otal
Oth
er R
even
ueG
ross
Com
mut
er T
icke
t Rev
enue
Tota
l Rev
enue
Dire
ct E
xpen
ses
Cos
t of F
uel (
$4.6
5/ga
llon
blen
d) -
(Cha
rter)
425,
228
$
425,
228
$
425,
228
$
425,
228
$
425,
228
$
425,
228
$
425,
228
$
425,
228
$
425,
228
$
425,
228
$
425,
228
$
425,
228
$
5,10
2,74
0$
C
ost o
f Fue
l - ($
1.92
/gal
lon)
- (C
omm
uter
)41
,483
$
39
,053
$
40
,615
$
39
,921
$
39
,747
$
41
,483
$
39
,921
$
39
,747
$
39
,921
$
40
,615
$
40
,615
$
36
,796
$
47
9,91
7$
Mai
nten
ance
-(C
harte
r Fle
et) -
($8
00 F
light
hou
r/Cha
l; $
202,
991
$
202,
991
$
202,
991
$
202,
991
$
202,
991
$
202,
991
$
202,
991
$
202,
991
$
202,
991
$
202,
991
$
202,
991
$
202,
991
$
2,43
5,89
0$
M
X R
eser
ves
(Com
mut
er) K
ing
Air's
66
,920
$
63
,000
$
65
,520
$
64
,400
$
64
,120
$
66
,920
$
64
,400
$
64
,120
$
64
,400
$
65
,520
$
65
,520
$
59
,360
$
77
4,20
0$
Brok
erag
e C
osts
- (C
harte
r Ope
ratio
ns) (
85%
)40
,917
$
40
,917
$
40
,917
$
40
,917
$
40
,917
$
40
,917
$
40
,917
$
40
,917
$
40
,917
$
40
,917
$
40
,917
$
40
,917
$
49
1,00
0$
Add-
on's
- (C
harte
r) (9
0%)
114,
192
$
114,
192
$
114,
192
$
114,
192
$
114,
192
$
114,
192
$
114,
192
$
114,
192
$
114,
192
$
114,
192
$
114,
192
$
114,
192
$
1,37
0,30
0$
La
ndin
g Fe
es -
(Com
mut
er )-
Kin
g Ai
r's19
,120
$
18
,000
$
18
,720
$
18
,400
$
18
,320
$
19
,120
$
18
,400
$
18
,320
$
18
,400
$
18
,720
$
18
,720
$
16
,960
$
22
1,20
0$
PFC
's -
(Com
mut
er)
10,4
86$
9,87
2$
10
,267
$
10
,091
$
10
,047
$
10
,486
$
10
,091
$
10
,047
$
10
,091
$
10
,267
$
10
,267
$
9,
302
$
121,
314
$
C
redi
t Car
d Fe
es -
(Com
mut
er)
9,68
0$
9,
113
$
9,47
7$
9,31
5$
9,
275
$
9,68
0$
9,
315
$
9,27
5$
9,
315
$
9,47
7$
9,
477
$
8,58
6$
11
1,98
5$
Tota
l Dire
ct E
xpen
ses
931,
017
$
922,
366
$
927,
927
$
925,
455
$
924,
837
$
931,
017
$
925,
455
$
924,
837
$
925,
455
$
927,
927
$
927,
927
$
914,
332
$
11,1
08,5
46$
Fixe
d C
osts
:Ai
rcra
ft - (
Com
mut
er) (
King
Air)
40
,000
$
40
,000
$
40
,000
$
40
,000
$
40
,000
$
40
,000
$
40
,000
$
40
,000
$
40
,000
$
40
,000
$
40
,000
$
40
,000
$
48
0,00
0$
Airc
raft
Cle
anin
g (C
harte
r)2,
000
$
2,00
0$
2,
000
$
2,
000
$
2,00
0$
2,
000
$
2,00
0$
2,
000
$
2,00
0$
2,
000
$
2,00
0$
2,
000
$
24,0
00$
Ai
rcra
ft C
lean
ing
(Com
mut
er)
500
$
50
0$
500
$
500
$
50
0$
500
$
50
0$
500
$
50
0$
500
$
50
0$
500
$
6,
000
$
Sala
ries/
Bene
fits)
: C
orpo
rate
Ove
rhea
d 16
,667
$
16
,667
$
16
,667
$
16
,667
$
16
,667
$
16
,667
$
16
,667
$
16
,667
$
16
,667
$
16
,667
$
16
,667
$
16
,667
$
20
0,00
4$
Cor
pora
te O
verh
ead
Allo
catio
n(C
omm
uter
)12
,500
$
12
,500
$
12
,500
$
6,
250
$
6,25
0$
6,
250
$
6,25
0$
6,
250
$
6,25
0$
6,
250
$
6,25
0$
6,
250
$
93,7
50$
P
ilots
2.5
per
airc
raft
(Cha
rter)
169,
250
$
169,
250
$
169,
250
$
169,
250
$
169,
250
$
169,
250
$
169,
250
$
169,
250
$
169,
250
$
169,
250
$
169,
250
$
169,
250
$
2,03
1,00
0$
P
ilots
(Com
mut
er O
ps)
21,2
50$
21,2
50$
21,2
50$
21,2
50$
21,2
50$
21,2
50$
21,2
50$
21,2
50$
21,2
50$
21,2
50$
21,2
50$
21,2
50$
255,
000
$
A
&P M
echa
nic
(Com
mut
er O
ps)
5,62
5$
5,
625
$
5,62
5$
5,62
5$
5,
625
$
5,62
5$
5,
625
$
5,62
5$
5,
625
$
5,62
5$
5,
625
$
5,62
5$
67
,500
$
Res
erva
tions
/Flig
ht F
ollo
win
g (C
omm
uter
Ops
)5,
833
$
5,83
3$
5,
833
$
5,
833
$
5,83
3$
5,
833
$
5,83
3$
5,
833
$
5,83
3$
5,
833
$
5,83
3$
5,
833
$
69,9
96$
S
tatio
n M
anag
ers
- 2 (C
omm
uter
Ops
)7,
500
$
7,50
0$
7,
500
$
7,
500
$
7,50
0$
7,
500
$
7,50
0$
7,
500
$
7,50
0$
7,
500
$
7,50
0$
7,
500
$
90,0
00$
T
icke
t Age
nts
(6 -C
omm
uter
Ops
)12
,480
$
12
,480
$
12
,480
$
12
,480
$
12
,480
$
12
,480
$
12
,480
$
12
,480
$
12
,480
$
12
,480
$
12
,480
$
12
,480
$
14
9,76
0$
Ram
p Ag
ents
(8 -
Com
mut
er O
ps)
16,6
40$
16,6
40$
16,6
40$
16,6
40$
16,6
40$
16,6
40$
16,6
40$
16,6
40$
16,6
40$
16,6
40$
16,6
40$
16,6
40$
199,
680
$
M
edic
al
39,3
14$
39,3
14$
39,3
14$
39,3
14$
39,3
14$
39,3
14$
39,3
14$
39,3
14$
39,3
14$
39,3
14$
39,3
14$
39,3
14$
471,
768
$
P
ayro
ll Ta
xes
(25%
Gro
ss)
66,9
36$
66,9
36$
66,9
36$
65,3
74$
65,3
74$
65,3
74$
65,3
74$
65,3
74$
65,3
74$
65,3
74$
65,3
74$
65,3
74$
789,
173
$
W
orke
r's C
omp.
($7.
00/$
1,00
0)2,
795
$
2,79
5$
2,
795
$
2,
795
$
2,79
5$
2,
795
$
2,79
5$
2,
795
$
2,79
5$
2,
795
$
2,79
5$
2,
795
$
33,5
37$
S
alar
ies/
Bene
fits
376,
790
$
376,
790
$
376,
790
$
368,
978
$
368,
978
$
368,
978
$
368,
978
$
368,
978
$
368,
978
$
368,
978
$
368,
978
$
368,
978
$
4,45
1,16
8$
Trai
ning
(Cha
rter)
33,1
83$
33,1
83$
33,1
83$
33,1
83$
33,1
83$
33,1
83$
33,1
83$
33,1
83$
33,1
83$
33,1
83$
33,1
83$
33,1
83$
398,
200
$
Tr
aini
ng (C
omm
uter
)10
,208
$
10
,208
$
10
,208
$
10
,208
$
10
,208
$
10
,208
$
10
,208
$
10
,208
$
10
,208
$
10
,208
$
10
,208
$
10
,208
$
12
2,49
6$
Pilo
t Exp
ense
s ($
500/
trip)
(Cha
rter)
129,
729
$
129,
729
$
129,
729
$
129,
729
$
129,
729
$
129,
729
$
129,
729
$
129,
729
$
129,
729
$
129,
729
$
129,
729
$
129,
729
$
1,55
6,75
0$
H
ull &
Lia
bilit
y In
s. (C
harte
r)20
,833
$
20
,833
$
20
,833
$
20
,833
$
20
,833
$
20
,833
$
20
,833
$
20
,833
$
20
,833
$
20
,833
$
20
,833
$
20
,833
$
25
0,00
0$
Hul
l & L
iabi
lity
Ins.
(Com
mut
er)
4,01
4$
4,
014
$
4,01
4$
4,01
4$
4,
014
$
4,01
4$
4,
014
$
4,01
4$
4,
014
$
4,01
4$
4,
014
$
4,01
4$
48
,168
$
Han
gar (
$5,0
00/m
o) (C
harte
r)42
,800
$
42
,800
$
42
,800
$
42
,800
$
42
,800
$
42
,800
$
42
,800
$
42
,800
$
42
,800
$
42
,800
$
42
,800
$
42
,800
$
51
3,60
0$
Mar
ketin
g/PR
(Cha
rter)
1,04
2$
1,
042
$
1,04
2$
1,04
2$
1,
042
$
1,04
2$
1,
042
$
1,04
2$
1,
042
$
1,04
2$
1,
042
$
1,04
2$
12
,500
$
Mar
ketin
g/PR
(Com
mut
er)
3,00
0$
1,
500
$
1,50
0$
300
$
30
0$
300
$
30
0$
300
$
30
0$
300
$
1,
500
$
1,50
0$
11
,100
$
Offi
ce S
uppl
ies
(Cha
rter)
500
$
50
0$
500
$
500
$
50
0$
500
$
50
0$
500
$
50
0$
500
$
50
0$
500
$
6,
000
$
Offi
ce S
uppl
ies
(Com
mut
er)
300
$
30
0$
300
$
300
$
30
0$
300
$
30
0$
300
$
30
0$
300
$
30
0$
300
$
3,
600
$
Out
side
Ser
vice
s (IT
/Due
s/Su
bs) -
(Cha
rter)
14,6
83$
14,6
83$
14,6
83$
14,6
83$
14,6
83$
14,6
83$
14,6
83$
14,6
83$
14,6
83$
14,6
83$
14,6
83$
14,6
83$
176,
200
$
O
utsi
de S
ervi
ces
(IT/D
ues/
Subs
) -(C
omm
uter
)1,
000
$
1,00
0$
1,
000
$
1,
000
$
1,00
0$
1,
000
$
1,00
0$
1,
000
$
1,00
0$
1,
000
$
1,00
0$
1,
000
$
12,0
00$
Pr
ofes
sion
al S
ervi
ces
(Cha
ter)
1,00
0$
1,
000
$
1,00
0$
1,00
0$
1,
000
$
1,00
0$
1,
000
$
1,00
0$
1,
000
$
1,00
0$
1,
000
$
1,00
0$
12
,000
$
Prof
essi
onal
Ser
vice
s (C
omm
uter
)60
0$
600
$
60
0$
60
0$
600
$
60
0$
600
$
60
0$
600
$
60
0$
600
$
60
0$
7,20
0$
Su
pplie
s (C
harte
r)10
,583
$
10
,583
$
10
,583
$
10
,583
$
10
,583
$
10
,583
$
10
,583
$
10
,583
$
10
,583
$
10
,583
$
10
,583
$
10
,583
$
12
7,00
0$
Supp
lies
(Com
mut
er)
200
$
20
0$
200
$
200
$
20
0$
200
$
20
0$
200
$
20
0$
200
$
20
0$
200
$
2,
400
$
Uni
form
s (C
harte
r)1,
500
$
1,50
0$
1,
500
$
1,
500
$
1,50
0$
1,
500
$
1,50
0$
1,
500
$
1,50
0$
1,
500
$
1,50
0$
1,
500
$
18,0
00$
U
nifo
rms
(Com
mut
er)
250
$
25
0$
250
$
250
$
25
0$
250
$
25
0$
250
$
25
0$
250
$
25
0$
250
$
3,
000
$
Util
ities
(Cha
rter)
2,33
3$
2,
333
$
2,33
3$
2,33
3$
2,
333
$
2,33
3$
2,
333
$
2,33
3$
2,
333
$
2,33
3$
2,
333
$
2,33
3$
28
,000
$
Ren
t (Te
rmin
al S
tatio
ns) -
(Com
mut
er)
7,00
0$
7,
000
$
7,00
0$
7,00
0$
7,
000
$
7,00
0$
7,
000
$
7,00
0$
7,
000
$
7,00
0$
7,
000
$
7,00
0$
84
,000
$
Sche
dule
rs (s
alar
y/in
cent
ives
/bac
k of
fice)
- (C
harte
r)26
,250
$
26
,250
$
26
,250
$
26
,250
$
26
,250
$
26
,250
$
26
,250
$
26
,250
$
26
,250
$
26
,250
$
26
,250
$
26
,250
$
31
5,00
0$
Con
tinge
ncy
63,3
33$
63,3
33$
63,3
33$
63,3
33$
63,3
33$
63,3
33$
63,3
33$
63,3
33$
63,3
33$
63,3
33$
63,3
33$
63,3
33$
760,
000
$
To
tal F
ixed
Expe
nses
793,
633
$
792,
133
$
792,
133
$
783,
120
$
783,
120
$
783,
120
$
783,
120
$
783,
120
$
783,
120
$
783,
120
$
784,
320
$
784,
320
$
9,42
8,38
2$
Tota
l Exp
ense
s1,
724,
649
$ 1,
714,
498
$ 1,
720,
059
$ 1,
708,
575
$ 1,
707,
957
$ 1,
714,
137
$ 1,
708,
575
$ 1,
707,
957
$ 1,
708,
575
$ 1,
711,
047
$ 1,
712,
247
$ 1,
698,
652
$ 20
,536
,928
$
Prof
it/(L
oss)
--be
fore
leas
e co
sts
Inte
rest
Exp
ense
69,1
67$
69,1
67$
69,1
67$
69,1
67$
69,1
67$
69,1
67$
69,1
67$
69,1
67$
69,1
67$
69,1
67$
69,1
67$
69,1
67$
830,
000
$
Prof
it/(L
oss)
4,
233,
942
$
Rectrix AviationExhibit 19(1 page)