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OST-2014-0020 - Gem Air - Salmon, ID-Boise, ID Commuter Authority

http://airlineinfo.com/ostcarrier/mccall.html - McCall Aviation

http://gemairflights.com

 

 


Gem Air, LLC

OST-2014-0020 - Commuter Air Carrier Authority - Salmon-Boise

January 18, 2014

Application for Commuter Authority - Bookmarked

Applicant requests authority to engage in scheduled passenger operations as a commuter and proposes to operate:

Scheduled service between Salmon, ID and Boise, ID. Service frequency will be 2 round trips 6 days a week from June through August and 5 rounds trips 3 days a week September through May. Service will be provided using a 9-passenger Quest Kodiak 100.

Applicant is currently under a "non-compete" agreement with McCall Aviation until May 2014 and is engaged in on-demand contract flying for McCall Aviation.

By: Gem Air, JoAnn Wolters, 208-993-0178


 

April 11, 2014

DOT Request for Additional Information

We have completed our initial review of the information you filed on February 12, 2014, on behalf of Gem Air, LLC for the determination of its fitness to conduct commuter operations. We have determined that we will need the following additional information and/or clarifying information before we may complete our review:

  • Ownership
  • Management
  • Financial Position
  • Operations

By: Lauralyn Remo


 

April 18, 2014

Response to Additional Information Request

  • Management
  • Financial Position
  • Operations

By: Gem Air, JoAnn Wolters





April 29, 2014

DOT Request for Further Additional Information

I couldn't find the corrected resume for Dan Schroeder in the document that you sent on April 18, 2014. Please send the resume with corrected dates that he served as Director of Operations and Chief Pilot for Gem Air.

I also need account information from the Capital One 360 account on company/bank letterhead. The Department does not accept online statements to verify account information.

Additionally, what is the core business of W&S Enterprises LLC and what is their relationship with Gem Air?

Will the financial forecast you provided for the proposed commuter operations remain applicable for any 12-month period?

By: Barbara Snoden





May 1, 2014

Additional Information Response

Per your request in your letter dated April29, 2014, we respectfully submit the following information:

  • Resume for Dan Schroeder showing the correct dates he served as Director of Operations and Chief Pilot for Gem Air.
  • Capital One 360 account on company /bank letterhead.
  • Core business of W&S Enterprises LLC is real estate including hangars, commercial, and multi family property. W&S Enterprises does own the building in Salmon that Gem Air occupies for its offices and hangar. Both companies are owned solely by JoAnn Wolters and Dan Schroeder.
  • The pro-forma statement that was attached to Gem Air's response to the DOT's request for further information is valid for the dates listed, May 1, 2014 through April 30, 2015. The commuter pro-forma statement that was included on page 15 of the official application for commuter authority is valid for any 12 month period once the proposed commuter route has matured, approximately 12 months after commuter services begin.

By: Gem Air, JoAnn Wolters, 208-993-0178


 

July 30, 2014

DOT Request for Additional Information

We have reviewed the financial information you submitted including the pre-operating and first-year expense forecasts, and it does not appear that Gem Air has sufficient funds in its name to meet the Department's fitness test. While account information for Spirit Air and W&S Enterprises, LLC was provided, these accounts are in their company names and no information was provided that supports their intent to fund Gem Air. Therefore, if Gem Air intends to rely on Spirit Air and W &S' funds, the Department will need to review their financial positions. Balance sheets and income statements of Spirit Air and W&S, Gem Air's relevant corporation, together with their accompanying explanatory footnotes must be submitted along with letters stating that Spirit Air and W &S will provide financial support to Gem Air. Additionally, in order for us to continue our review, we ask that you provide an income statement and balance sheet ending June 30, 2014, and a current letter from Washington Federal Bank confirming funds available to Gem Air ending that same date.

By: Lauralyn Remo




August 4, 2014

Additional Information Response

Amendments and Updates to Application:

Gem Air was planning to begin on-demand air service May 1, 2014 but did not begin on-demand air service until June 12th, 2014.

Changing proposed frequency of service:

  • Gem Air is amending the proposed frequency of service from 5 round trips/week from September through May and 12 round trips/week from June through August to: 5 round trips/week year-round.
  • Updated financial statements that reflect the change to 5 round trips/week are attached.

Gem Air will not rely on Spirit Air or W&S for financial assistance. Please see updated attached financial information showing Gem Air has sufficient funds in its name to meet the Department’s fitness test.

Gem Air will lease the Quest Kodiak for its operations. Please find lease agreement attached.

Please see attached updated commuter operations pro forma, on-demand operations pro-forma, and consolidated pro-forma financial statements reflecting the most up to date projections including above amendments and following changes:

  • Commuter start date changed to November 1, 2014
  • Startup costs of $28,000, shown in Gem Air’s “SMN-BOI-SMN Commuter 2015 Pro-forma Profit and Loss” have already been incurred and no further foreseeable startup costs exist. Therefore, these expenses have been omitted from the pro-forma statements.
By: Gem Air, JoAnn Wolters




August 15, 2014

DOT Request for Additional Information

We are reviewing your amended financial information and notice that the totals on your 8/3/2014 spread sheet are way off. It looks like only the last two columns are adding correctly in the "total" column. Therefore, your forecast first year operating expenses are off ... at least for the on-demand operations. Also, can you please identify/specify the indirect expenses (above total expenses line)on the commuter operations forecast spreadsheet. In addition, please format your consolidated expense sheet using the same expense lines as the other two reports.

Please submit an updated resume indicating that you are 50% owner of Spirit.

By: Barbara Snoden, 202-366-4834


 

August 26, 2014

Response to Additional Information Request

Gem Air has updated financial forecasts to present to the DOT. The updated forecasts are below. The changes include revised passenger counts for the first 6 months of commuter operations and the resulting impact of this change on the 2014 balance sheet.

By: JoAnn Wolters


 

Order 2014-10-25
OST-2014-0020
- Commuter Air Carrier Authority - Salmon-Boise

Issued and Served October 29, 2014

Order to Show Cause Proposing Issuance of Commuter Air Carrier Authority

We direct all interested persons to show cause why we should not issue an order finding that Gem Air, LLC is fit, willing, and able under 49 USC§ 41738 to provide scheduled passenger service as a commuter air carrier using small aircraft pursuant to Part 135 of the Federal Aviation Regulations.

We will give interested persons 14 days following the service date of this order to show cause why the tentative findings and conclusions set forth here should not be made final; answers to objections will be due within 7 days thereafter.

By: Susan Kurland


 

June 24, 2014

Additional Information Response

By: Gem Air


 


November 25, 2014

DOT Request for Additional Information

Can you please submit a statement noting Mr. Delong's citizenship and his compliance disposition in regards to Section 204.3?

By: Barbara Snoden, 202-366-4834




November 25, 2014

Additional Information Response

This statement is to certify that Stan DeLong, Gem Air, LLC’s Chief Pilot, is a US Citizen and is in compliance with section 14 CFR Part 204.3.

By: Gem Air, JoAnn Wolters


 

Order 2014-12-5
OST-2014-0020
- Commuter Air Carrier Authority - Salmon-Boise

Issued and Served December 4, 2014

Final Order

By Order 2014-10-25, issued October 29, 2014, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions that Gem Air, LLC is fit, willing, and able to provide scheduled passenger service as a commuter air carrier using small aircraft pursuant to Part 135 of the Federal Aviation Regulations. Interested persons were given 14 days to file objections to the order.

No objections to the show cause order were received.

By: Susan Kurland


 

December 9, 2014

Additional Information Response

Of the estimated $28,000 of pre-operating expenses, $0.00 remains, and Gem Air has no additions
or revisions to the original estimate.

Please find the following documents attached: OST form 6410, Gem Air, LLC’s Air Carrier
Certificate, Operations Specifications authorizing scheduled service from FAA, and 3rd party
verification of funds.

By: Gem Air, JoAnn Wolters


 

Order 2015-6-3
OST-2014-0020
- Commuter Air Carrier Authority - Salmon-Boise

Issued and Served June 3, 2015

Order Confirming Oral Action an Issuing Effective Commuter Authorization

By this order, we (1) confirm our oral action of December 16, 2014, making the authority of Gem Air, LLC effective on that date, and (2) reissue Gem Air’s commuter air carrier authorization to reflect its effective date.

We reissue the Commuter Air Carrier Authorization issued to Gem Air, LLC by Order 2014-12-5, in the attached form to reflect its effective date.

By: Todd Homan


 

October 29, 2015

Request for Extension of Commuter Start Date

Gem Air respectfully requests that the Department waive condition 8 of the certificate issued to it by Order 2015-­6-­3 and § 204.7(a) of Title 14 so as to extend, through March 31, 2016, the time within which Gem Air must commence actual flight operations in order to maintain its commuter authority.

Gem Air was granted commuter authority December 16, 2014. As of today, Gem Air has not begun scheduled operations under this commuter authority. We are aware that our commuter authority may be revoked if we do not use it within 1 year of it being awarded. Gem Air plans to begin operations under this commuter authority beginning on or before March 1, 2016. The purpose of this letter is to request an extension to the start date deadline from December 2015 to March 2016.

Gem Air has an agreement with the community of Salmon, ID to begin operating scheduled commuter service between Salmon and Boise, ID starting on or before March 1, 2016. This service is supported by a 3-­year revenue guarantee grant to Lemhi County from the DOT SCASD Program, and is the primary reason Gem Air applied for commuter authority in the first place.

Our resources, including planes and pilots, are currently obligated to peak season, high volume freight routes through the end of 2015 and into early 2016. For the commuter to be successful, we need to be able to devote more of our organizational resources to a strong start. In order to do that, we feel it is necessary to wait until early 2016.

Therefore, Gem Air requests an extension to the commuter start date deadline. We request that it be extended from December 2015 to March 2016, in order to coincide with our start deadline for the SCASD-­supported Salmon to Boise service.

By: Gem Air, JoAnn Wolters


 

November 4, 2015

Grant of Request for Extension of Commuter Start Date

By letter dated October 29, 2015, Gem Air requested an extension of the revocation-for-dormancy date. In support of its request, the air carrier states that all of its resources, including aircraft and pilots, are obligated to operations transporting freight during the heavy-volume, peak holiday season running from the end of 2015 into early 2016. Gem Air plans to begin scheduled commuter air service between Salmon and Boise, Idaho on or before March 1, 2016.

Under these circumstances, we have decided to grant Gem Air's request for a waiver from § 204.7(a). This waiver will expire on March 31, 2016.

By: Lauralyn Remo

 

 


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