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Air West Inc.

Air West Inc. is applying for an E. A. S. grant for scheduled airline service between Show Low, Arizona and Phoenix, Sky Harbor, Arizona. Air West Inc. intends to offer reliable, punctual and comfortable airline service. We intend to maintain a good working relationship with city officials, city staff and the community. We intend to maintain the highest standards in crew training, aircraft maintenance and management.

Our service will begin on or about October 1, 2001 with two round trips per day (early morning and early evening) and increase to four round trip flights as passenger load increases.

Our primary aircraft for this route will be the Cessna 208 Grand Caravan. We have chosen this aircraft for several reasons; it's large, comfortable, has an air conditioned cabin with a wide center isle, it's 99.5 - 99.8 dispatch rate - making it the industry standard for short-haul commuters, its economical operation and reputation of its manufacture for service and availability. Our plan involves a single Grand Caravan at first with a second aircraft being added to the fleet in 90 to 120 days. Our secondary aircraft will include a Beechcraft King Air 200 and a Turbo Commander 690A. The King Air 200 will be on a lease-back arrangement from the city of Show Low. The King Air will be used on "bad weather" days. When the route requires a multiengine aircraft, the Turbo Commander will be used when needed as a "back-up" aircraft.

Applicant is currently engaged in passenger and cargo on demand air taxi. Applicant requests authority to engage in scheduled passenger operations as a commuter and proposes to operate an essential air service program between Phoenix and Show Low, Arizona using a Cessna 208 Caravan. A Beech BE200 King Air and a Gulf Stream Commander 690A are back up aircraft.

By:  Mark Wilkison, 480.396.0688

Air West Inc.

We have completed a cursory review of Air West's application filed in Docket OST-0110692 for authority to operate scheduled passenger service as a commuter air carrier. Upon review, we have determined that Air West's application is materially deficient. Thus, we are unable to continue with the processing of your request until we receive additional information. For example, you need to supply complete resumes and compliance disposition information for all key personnel, along with citizenship of each such person, including the carrier, as required by section 204.3(t). You need to provide balance sheets and income statements for the three most recent calendar or fiscal years as required by section 204.3(k). Air West needs to provide a forecast income statement, broken down by quarters for the first year of operations after commencement of revenue operations as required by section 204.3(t). Documentation to support the forecast should be provided. There may be other material that you have not provided or information that is not complete. Thus, to assist you in this matter, we have included our packet on "How to Become a Commuter Air Carrier." A detailed description of our evidence requirements begins on Page 6. A copy of section 204.3 is included in this information packet. Please review all of this material carefully to insure your application is complete.

By:  James Lawyer

Air West Inc.

By:  James Lawyer

Additional Information of Air West, Inc. in response to request of Office of Aviation Analysis, submitting Financial Statements for the Year Ended December 31, 1998, December 31, 1999 and December 31, 2000.  

By:  Air West

Air West Inc.

In our request, we described what levels of capital we believed would be required for Air West to meet the Department's financial fitness standard. Based on the carrier's first year forecast and preoperating expenses, we determined that Air West would be required to have access to $195,649 to meet the three-month standard and $259,602 to cover preoperating costs for a total of $455,251. To meet the financial fitness test Air West has indicated that it will rely on internal funds, any subsidy that it might received if it is selected to provide the essential air service at issue, as well as bank lines-of­credit for $110,000 and $70,000. Our letter of November 26 requested that Air West provide third-party verification of access to any funding. Although the carrier submitted a letter from First International Bank and Trust indicating access to a $50,000 line-of-credit, it was not clear whether this was in addition to or in lieu of the $110,000 and $70,000 lines-of-credit. Thus, availability and access to these lines-of­credit remain uncertain. Air West should provide third-party verification of access to any funds that it intends to rely upon to meet our financial fitness test. Such verification must be provided by an official of Air West's bank or other financial institution; verification by your accountant is not sufficient.

We hope that Air West's response to this request will provide sufficient information to allow us to make a favorable fitness determination. However, since Air West has indicated that it does not intend to provide scheduled service unless selected to provide essential air service, we do not intend to proceed with a fitness finding of the carrier unless it is selected to provide the essential air service between Show Low and Phoenix, Arizona.

By:  James Lawyer

Air West Inc. has Bank lines of Credit available in the amount of 110,000. and additional lines of credit in the amount of 70,000. I have verified that these credit resources are available and debt free. Our accountant has signed this statement only after reviewing statements from each of the accounts to verify the information. AWl pays off any balances on credit cards monthly and the bank lines of credit have not been used since the October 12 statement was signed. Enclosed is a statement from First International Bank & Trust where we have a line of credit. This is the only bank we do business with that operates on a personal level and makes is possible to acquire a statement such as the one needed on short notice. AWI has the credit need as stated above and we have signed the statement pursuant to Title 18 United States Code, Section 1001.

By:  Air West, Mark Wilkison, 480.396.0688

Air West Inc.

In response to the question regarding FAA's approval of Air West personnel holding positions with entities other than Air West, the documents I referred to are the documents from our FAA Principal Operations Inspector Mirlo (Eddie) Ochoa. These documents approve each person for the positions held. Mr. Ochoa knows our personal and their employment situations other than with Air West. If he thought it would interfere with our operations, I don't think he would have approved the positions.

By:  Air West, Mark Wilkison, 480.396.0688

Air West Inc.

By Order 2002-4-21, issued April 25, 2002, the Department selected another air carrier, Arizona Express Airlines, Inc., to provide the subsidized scheduled air service at Show Low under the Essential Air Service program. As a result of this order, on May 2, the staff contacted Air West to determine whether it wished to continue to pursue its commuter application, and if so, requested that the applicant submit a new service proposal reflecting scheduled passenger service in another market. When no response was received, follow up messages were sent on May 21 and June 7, the latter of which advised the carrier that, if no response was received within seven business days, we would dismiss Air West’s application for commuter authority. More than seven days have now passed, and Air West has not filed an amended application or otherwise contacted us about continuing to pursue its request for commuter authority.

By:  Randall Bennett

Air West, Inc.

By:  DOT, James Lawyer

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