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Salmon Air

http://www.salmonair.com/


Order 2001-9-6 Issued September 13, 2001
Served September 13, 2001
Consent Order Violations of 49 U.S.C. $ 41712 and 14 CFR Part 399


OST-2000-8059

September 11, 2008

Re: Additional Information Response

We are ready to come to you again for our fitness review so that Gem Air LLC d/b/a Salmon Air may again begin commuter carrier service to Salmon, Idaho and as well other small communities in the region. Set forth below is the information you requested by your e-mail dated December 20, 2007 to update the Department's records concerning Salmon Air. This submission supplements the submission I made on behalf of Salmon Air on January 21, 2008.

By way of background, in July 2005 Mountain Bird, Inc. d/b/a Salmon Air was sold to four individuals. However, in December 2007 the stock of the company was taken back by Inyself and Daniel L. Schroeder, the original sellers of Mountain Bird, Inc. Subsequently, Mountain Bird., Inc. was merged into a newly established entity, Gem Air, LLC d/b/a Salmon Air. The FAA has issued an Air Carrier Certificate to Gem Air, LLC d/b/a Salmon Air (certificate number GAJA077E) and the carrier has been engaging in on-demand air taxi services under its FAA certificate and DOT Part 298 Registration.

  1. Ownership Information
  2. Calendar Year 2007 Balance Sheet
  3. Key Management Personnel
  4. Current Operations
  5. Flight Disruptions

By: Salmon Air, JoAnn Wolters, 208-756-6211



OST-2000-8059 - Commuter Air Carrier Authority

October 9, 2008

Motion for Confidential Treatment

The Department is undertaking in the above-referenced Docket a review of the continued fitness of Salmon Air in connection with the carrier's request to recommence commuter air carrier operations. In further support of this review, Salmon Air is filing with the Department an income and expense forecast for its combined air taxi and proposed commuter air carrier operations for the 2009 calendar year. This financial information is enclosed in the attached sealed envelope and is the subject of this Motion.

Counsel: Silverberg Goldman, Robert Silverberg, 202-944-3300



OST-2000-8059 - Commuter Air Carrier Authority

October 9, 2008

Re: Updated Fitness Information

The purpose of this letter is to provide the Department of Transportation with a first‑year economic forecast in connection with the request of Gem Air LLC d/b/a Salmon Air to recommence commuter air carrier operations. This submission supplements the information submitted to the Department by Salmon Air on September 11, 2008 and January 21, 2008, which provided DOT with updated fitness information in support of this request. 

Based on demand, Salmon Air currently provides on-demand air taxi operations between Boise, McCall and Salmon, Idaho three to four times a week on a roundtrip basis with a flexible time schedule. Salmon Air provides its on-demand air taxi operations with its Britten Norman Islander, Piper Chieftains and Cessna aircraft. 

Salmon Air desires to enhance its service by publishing a flight schedule with five roundtrip flights per week between BOI, MYL and SMN. Salmon Air's intent to publish a flight schedule is in direct response to local, business, and leisure customers who have shown a strong interest in the provision of scheduled operations by Salmon Air.

Counsel: Silverberg Goldman, Robert Silverberg, 202-944-3300



OST-2000-8059 - Resume Commuter Air Carrier Operations

November 20, 2008

Re: Ruling on Confidential Treatment and Information Request

Absent a clear and justifiable reason for doing so, it is not the Department's practice to withhold from public disclosure information regarding an application, such as an applicant's current or historical financial condition, pre‑operating cost forecasts, proposed operating plans, first‑year operating cost forecasts, and forecast balance sheets. Salmon Air's income and expense forecast for 2009 is of the type and scope the Department typically requires to be part of the public domain in its fitness process and Salmon Air has provided no information that persuades us to grant confidentiality to such information. However, we recognize that the 2009 forecast income and expenses statement does contain some information for which we have typically granted confidential treatment, such as revenue and net income/loss projections. Therefore, we will grant confidential treatment to those portions of that forecast.

As is the Department's practice, further processing of salmons Air's request will be deferred pending receipt of the material requested in the attached Information Request. In addition, please remember that Salmon Air should promptly provide the Department with any information regarding changes it may undergo in areas affecting its fitness (i.e., management, operating plans or financial condition, compliance disposition, or ownership) while its application is under review by the Department.

By: Vanessa Balgobin



OST-2000-8059 - Commuter Air Carrier Authority


June 3, 2009

Re: DOT Request for Additional Information

We have recently undertaken a preliminary continuing fitness review of Gem Air, LLC d/b/a Salmon Air. This review is part of an initiative by the U.S. Department of Transportation under our responsibility in 49 U.S.C. 41110(e) to periodically assess changes in ownership, management, financial condition, and operations that may affect an air carrier's continuing fitness since its initial DOT authorization or last fitness review. According to our records, we have not conducted a comprehensive fitness review of the company since June 2005.

Thank you for your cooperation in this matter. We would appreciate you responding within 30 days of the date of this letter.

By: Lauralyn Remo


July 15, 2009

Re: Additional Information Response

As an initial matter, the undersigned counsel for Gem Air hereby advises the Department that Gem Air no longer seeks to recommence commuter air carrier operations pursuant to its Commuter Air Carrier Authorization (Order 2002-7-9) as had been requested previously by the carrier. Gem Air, however, intends to continue to conduct non-scheduled passenger operations as an air taxi operator pursuant to Part 298 of the Department's Regulations. Accordingly, since Gem Air's operations will be limited to Part 298 air taxi operations, there is no need for the Department to conduct a fitness review of Gem Air as would have been the case if the carrier was seeking to recommence scheduled commuter air carrier operations.

In addition, as the Department may be aware, Gem Air recently entered into an Asset Purchase Agreement with McCall Aviation, Inc. which holds its own Commuter Air Carrier Authorization, See Order 2009-4-10 in Docket OST-2007-28657. Pursuant to the Asset Purchase Agreement, McCall acquired from Gem Air virtually all of the intangible assets (and certain of the tangible assets) that Gem Air used to conduct its air transportation and aviation services under the "Salmon Air" trade name. For example, McCall acquired from Gem Air all rights in the "Salmon Air" trade name, a service desk lease at the Boise Airport, customer contracts and accounts, marketing materials, spare aircraft parts inventory, etc However, Gem Air, which continues to be owned in equal 50% interests by Ms. JoAnn Wolters and Mr. Daniel Schroeder, has not undergone a substantial change in ownership as suggested in the Department's June 3rd letter.

Counsel: Silverberg Goldman, Robert Silverberg



Order 2009-7-18
OST-2000-8059 - Commuter Air Carrier Authority

Issued and Served July 23, 2009

Order Revoking Commuter Air Carrier Authorization

On September 11, 2008, Salmon Air submitted updated fitness information and requested that the Department find the air carrier fit to resume scheduled passenger service as a commuter air carrier. In that filing, Salmon Air informed the Department that it had undergone an ownership change, and that it was now owned by Gem Air, LLC d/b/a Salmon Air. Although Salmon Air supplemented its request to resume operations on October 9 and December 4, 2008, the company did not provide all of the information necessary for the Department to find it fit.

On July 15, 2009, Salmon Air informed the Department that it no longer had plans to recommence commuter air carrier operations. The company indicated that it intends to conduct operations as an air taxi operator under 14 CFR Part 298.

By this order, we revoke the commuter air carrier authorization issued to Mountain Bird, Inc. d/b/a Salmon Air for reason of dormancy.

By: Todd Homan


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