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BEFORE THE
DEPARTMENT OF TRANSPORTATION
WASHINGTON, D.C.
VIA AIRLINES, INC.
Notice of Intent to Resume Commuter Air Service
and Application for Exemption from the 45-day
advance notice requirement of 14 C.F.R. § 204.7
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Docket DOT-OST-2020-0196
[PUBLIC VERSION]
RESPONSE OF VIA AIRLINES, INC.
IN SUPPORT OF ITS APPLICATION TO RESUME COMMUTER AIR SERVICE
Communications with respect to this document should be addressed to:
Robert E. Cohn
Patrick R. Rizzi
HOGAN LOVELLS US LLP
Columbia Square
555 Thirteenth Street, NW
Washington, DC 20004
+1 202 637 4999/5659
Counsel for Via Airlines, Inc.
and Via Acquisitions LLC
December 17, 2020
\\DC - 018909/000022 - 15800298 v1
BEFORE THE
DEPARTMENT OF TRANSPORTATION
WASHINGTON, D.C.
VIA AIRLINES, INC.
Notice of Intent to Resume Commuter Air Service
and Application for Exemption from the 45-day
advance notice requirement of 14 C.F.R. § 204.7
)
)
)
)
)
)
)
Docket DOT-OST-2020-0196
December 17, 2020
RESPONSE OF VIA AIRLINES, INC.
IN SUPPORT OF ITS APPLICATION TO RESUME COMMUTER AIR SERVICE
Via Airlines, Inc. (“Via”) hereby responds to the Department’s request for additional
information regarding Via’s Notice and Application to resume commuter operations, dated
September 30, 2020 (“Notice/Application”). With the information provided below and in the
accompanying exhibits, Via urges the Department to move expeditiously so that Via may
restart operations as soon as possible.
1. Please submit a current OST Form 6410 to [email protected], along with confirmation in this docket of its submission. The insurance information on file for Via is from 2015.
A current OST Form 6410 has been submitted to the AFS-260 email and is
attached hereto as Exhibit VIA-R-1.
2. In support of its financial fitness, Via provided a letter from Mr. Arthur
Amron confirming that Wexford Capital LP, the Manager of Via Acquisitions LLC, controls the bank accounts in the name of Sterling Airways with PNC Bank, NA specifically funded to support Via’s proposal to resume air transportation services. However, the two bank account statements submitted are copies printed off the bank website. We ask that you please provide independent, third-party verification from PNC Bank, NA that contains all pertinent information to enable us to verify funds available to Via.
Response of Via Airlines, Inc.
Page 2
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Independent third-party verification from PNC Bank, NA about the availability of
funds sufficient to meet the Department’s financial fitness threshold is attached hereto as
Exhibit VIA-R-2.
3. Via states in its application that it intends to provide air transportation “at a
number of communities” and does not include any specific markets. Please indicate the markets to be served in the proposed resumption of scheduled passenger service, along with updated financial forecasts to reflect the expenses associated with the proposed services. An updated forecast income statement reflecting the expenses associated with
the proposed services is provided as Exhibit VIA-R-3. The projected operating costs
have increased, but the remaining start-up costs have decreased, since the original
forecast submitted with the initial Notice/Application.
Per the accompanying updated pro-forma forecast income statement, Via’s first
year of operations is projected to have $6,305,869 in operating expenses, which results
in a forecast three-month average of $1,576,467. In addition, Via estimates
approximately $560,000 in unpaid pre-operating and start-up costs remain. Based on
the Department’s financial fitness standard and the updated forecast data, the financial
fitness requirement for Via’s resumption of operations is $2,136,467 (a slight increase of
$43,901 from the requirement estimated in the Notice/Application). As discussed above
in Response to Request for Information No. 2, evidence of sufficient financial resources
to meet the Department’s financial fitness test is provided as Exhibit VIA-R-2.
A description of the markets and routes of Via’s proposed initial services is
provided as Exhibit VIA-R-4 (confidential treatment requested in part).
* * *
Response of Via Airlines, Inc.
Page 3
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A Verification with respect to this Response of Via and accompanying Exhibits is
attached.
* * *
In conclusion, as described in detail in the Notice/Application, this Response, and
the accompanying Exhibits, Via is a U.S. Citizen and is fit, willing, and able to engage in
air transportation and restore critically important air service. Via requests that the
Department permit it to resume scheduled commuter air transportation operations as
soon as possible.
Respectfully submitted,
__________________________________
Robert E. Cohn
Patrick R. Rizzi
HOGAN LOVELLS US LLP
555 Thirteenth Street, NW
Washington, DC 20004
Counsel for
Via Airlines, Inc. and Via Acquisitions LLC
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CERTIFICATE OF SERVICE
I hereby certify that a copy of the foregoing Response of Via Airlines, Inc. has been
served this December 17, 2020, upon each of the following addressees:
[email protected] [email protected] [email protected] [email protected] [email protected]
________________ Patrick Rizzi
V E R I F I C A T I O N
The contents of this Response and the attached Exhibits are true and correct to the best of my knowledge and
belief. Pursuant to Title 18 United States Code section 1001, I, Wayne Heller, in my individual capacity and as
the authorized representative of Via Airlines, have not in any manner knowingly and willfully falsified, concealed
or failed to disclose any material fact or made any false, fictitious, or fraudulent statement or knowingly used any
documents which contain such statements in connection with the preparation, filing or prosecution of this
Response and accompanying Exhibits. I understand that an individual who is found to have violated the provisions
of 18 U.S.C. section 1001 shall be fined or imprisoned not more than five years, or both.
_________________________
Name: Wayne Heller
Ti t le: CEO and Chai rman
Via Air l ines , Inc.
Date: December 16 , 2020
EXHIBIT VIA-R-1
Office of the Secretary of Transportation
The public reporting burden for this collection of information is estimated to average 30 minutes per response. If you wish to comment on the accuracy of the estimate or make suggestions for reducing this burden, please direct your comments to: U.S. Department of Transportation, Office of Aviation Analysis, X-56, . , Washington, D.C. 20590.According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless itdisplays a valid OMB control number.
NOTE: For information on where to file completed copies of this form, see FILING INSTRUCTIONS below.
OMB No. 2106-0030 Expires
U.S. AIR CARRIERS - CERTIFICATE OF INSURANCE
POLICIES OF INSURANCE FOR AIRCRAFT ACCIDENT BODILY INJURY AND PROPERTY DAMAGE LIABILITY
FILING INSTRUCTIONS:
(Please type information, except signatures.)
THIS CERTIFIES THAT: ________________________________________________________________________________ (Name of Insurer)
has issued a policy or policies of Aircraft Liability Insurance to ___________________________________________________
___________________________________________________________________FAA Certificate Number_______________
effective from __________________________ until ten (10) days after written notice from the insurer or carrier of the intent to terminate coverage is received by the Department of Transportation.
NOTE: Part 205 of the Department’s Regulations does not allow for a predetermined termination date, and a certificate showing such a date is unacceptable. ____________________________________________________________________________________________________
. The Insurer (Check One):
is licensed to issue aircraft insurance policies in the United States;
is licensed or approved by the government of _______________________ to issue aircraft insurance policies; or
is an approved surplus line insurer in the State(s) of _________________________
2. The insurer assumes, under the policy or policies listed below, aircraft accident liability insured to minimums at least equal tothe following during operation, maintenance, or use of aircraft in “air transportation” as that term is defined in 49 U.S.C. 40102.(Complete applicable section(s) A, B, or C below):
A. U.S. AIR TAXI OPERATORS (EXCLUDING U.S. COMMUTER AIR CARRIERS) WITH PART 298 AUTHORITY ONLY: The aircraft covered by this policy are SMALL AIRCRAFT (i.e., with 60 or fewer passenger seats or with a maximum payload capacity of 18,000 pounds or less). (Complete separate or combined coverage as appropriate):
Separate Coverages: Minimum Limit
Policy No. Type of Liability Each person Each Occurrence
_________________________
_________________________
$75,000
$75,000total number ofpassenger seatsinstalled in aircraft
_________________________
Bodily Injury Liability (Excluding Passengers)
Passenger Bodily Injury
Property Damage
Combined Coverage: The amount of coverage set forth below is a single limit of liability for each occurrence at least equal to the required
Policy No.__________________________________ Amount of Coverage_________________________________
This policy covers CARGO operations only and excludes passenger liability insurance.
OST Form 6410
B. U.S. COMMUTER AIR CARRIERS OR CERTIFICATED AIR CARRIERS OPERATING SMALL AIRCRAFT The aircraft covered by this policy are SMALL AIRCRAFT (i.e., with 60 or fewer passenger seats or with a maximum payload capacity of 18,000 pounds or less). (Complete separate or combined coverage as appropriate):
Separate Coverages: Minimum Limit
Policy No. Type of Liability Each person Each Occurrence
__________________ Combined Bodily Injury (Excluding Passengers other than cargo attendants) and Property Damage Liability $300,000 $2,000,000
__________________ Passenger Bodily Injury $300,000 $300,000 x 75% of total number of
passenger seatsinstalled in aircraft
Combined Coverage: The amount of coverage set forth below is a single limit of liability for each occurrence at least equal tothe required minimums stated above for bodily injury (excluding passengers), property damage, and passenger bodily injury.
Policy No.__________________________________ Amount of Coverage__________________________
This policy covers CARGO operations only and excludes passenger liability insurance.______________________________________________________________________________________________________________________
C. U.S. CERTIFICATED AIR CARRIERS OPERATING LARGE AIRCRAFTThe aircraft covered by this policy are LARGE AIRCRAFT (i.e., with more than 60 passenger seats or with a maximum payloadcapacity of more than 18,000 pounds). (Complete separate or combined coverage as appropriate):
Separate Coverages: Minimum Limit
Policy No. Type of Liability Each person Each Occurrence
__________________ Combined Bodily Injury (Excluding Passengers other than cargo attendants) and Property Damage Liability $300,000 $20,000,000
__________________ Passenger Bodily Injury $300,000 $300,000 x 75% of total number of
passenger seatsinstalled in aircraft
Combined Coverage: The amount of coverage set forth below is a single limit of liability for each occurrence at least equal tothe required minimums stated above for bodily injury (excluding passengers), property damage, and passenger bodily injury.
Policy No.__________________________________ Amount of Coverage__________________________
This policy covers CARGO operations only and excludes passenger liability insurance.
3. The policy or policies listed in this certificate insure(s) (Check One): Make and Model FAA or Foreign Flag Registration No.
Operations conducted with all aircraft operated by the insured
Operations conducted with the following types of aircraft:
Operations with the following aircraft: (Use additional page if necessary)
4. Each policy listed in this certificate meets or exceeds the requirements in 14 CFR Part 205.
_______________________________________________________________ ___________________________________________________________(Name of Insurer) (Name of Broker, if applicable)
_______________________________________________________________ ___________________________________________________________ (Address) (Address)
_______________________________________________________________ ___________________________________________________________ (City, State, Zip Code) (City, State, Zip Code)
_______________________________________________________________ ___________________________________________________________Contact (person who can verify the effectiveness of the coverage) (Officer or authorized representative)
________________________________/_______________________________ ________________________________/__________________________(Area Code, Phone Number) (Area Code, Fax Number) (Area Code, Phone Number) (Area Code, Fax Number)
________________________________________________________________ ___________________________________________________________ ( )
____________________________________ _
( )
___________________________________________(Date) (Date)
EXHIBIT VIA-R-2
December 16, 2020
Arthur Amron
Partner and General Counsel
Wexford Capital LP
677 Washington Boulevard, Suite 500
Stamford, CT 06901
Verification of Funds: Sterling Airways and Sterling Corporate Services
Dear Mr. Amron:
This letter verifies that the bank accounts in the name of Sterling Airways and Sterling
Corporate Services (SCS) with PNC Bank, N.A., combined have more than $2,250,000 of available
funds on deposit.
Sincerely,
Jason Vohs
Vice President
Commercial Banking Relationship Manager
317-650-2423
EXHIBIT VIA-R-3
CONFIDENTIAL TREATMENT REQUESTED UNDER 14 C.F.R. § 302.12
[Public Version]
EXHIBIT VIA-R-4
EXHIBIT VIA-R-4
CONFIDENTIAL TREATMENT REQUESTED UNDER 14 C.F.R. § 302.12
Via initially plans scheduled service between [REDACTED], on the one hand, and
[REDACTED], on the other hand, with some supplemental charter operations. Via plans to use ERJ-
145 with 50 passenger seats for these services.
