January 13, 2017
US DOT OST
Shabu Thomas
Transportation Industry Analyst
Air Carrier Fitness Division
Re: Docket DOT-OST-2016-0120
Application of Advanced Air, LLC for Commuter Authority
Dear Mr. Thomas,
In response to your letter send on December 15th 2016 please find our response below.
Please find details on the four Trusts with Beneficiaries and their citizenship.
All owners in Advanced Air, LLC are US citizens.
1.) John A Morales and Marie W. Morales are Trustees of the Morales Family Trust Established August
1998 – both of which are US Citizens.
Beneficiaries (1) the Surviving spouse and then (2) The Then acting Trustee.
Successor Trustees are (1) David R. Wehrly, then (2) Richard L. Westphal – both whom are Citizens of The
United States.
2.) Gregory L. Geiser and Nancy D. Geiser are Trustees of the Geiser’s Family Trust both of which are
US Citizens
The beneficiaries of the Trust are Hannah Geiser and Kelly Geiser. Both whom are citizens of the United
States
3.) David R. Wehrly and Lisa M. Ishizaki-Wehrly are Trustees of The Wehrly Family Trust Both of which
are US Citizens
The beneficiaries of the Trust are Christian R Wehrly, Spencer D Wherly, and Katherine M. Wherly whom
all are Citizens of the United States.
4.) Darin Puhl is the Trustees of the Darin Puhl Family Separate Property Trust whom is a Citizens of
The united States
The beneficiaries of the Trust are Griffen Puhl and Maggie Puhl. Both whom are citizens of the United
States
Operations and Financial Additional Information
Letter sent 12/15/2016 question number one under Operations and Financial Information references
Exhibit 3 in the first application submitted on May 28th 2016. On October 10th 2016 Advanced Air sent a
response for additional information that included on page two an outline of flights between KHHR and
KLAS showing five flights per week. Advanced Air is only seeking scheduled authority on the Las Vegas
routes at this time. The outline shows with five flights per week that’s 260 Legs per year in each
direction, 52 week multiplied by 5 legs per week totals 260. We outlined the cost from HHR-LAS and
LAS-HHR having a direct operating cost of $1,000.00 per hour. The total per segment comes to
$260,000.00 per year combining both segments HHR to LAS = $260,000.00 and LAS-HHR = $260,000.00
the annual total cost is $520,000.00 per year. We then added in an indirect cost for an additional Flight
coordinator at $55,000.00 per year bringing the annual total to $575,000.00 when broken down per
quarter it equals $143,750.00 or $47,916.67 Per month.
The flights operated by Advanced Air on behalf of JetSmarter are all marketed and held out by
JetSmarter, as the Public Charter Operator, in accordance with the provisions of Part 380 of the
Department’s regulations. Further, in accordance with Section 380.30(a), Advances Air, as the direct air
carrier, is referenced by name in all solicitation material for the JetSmarter/Advance Air Program. The
intention of this application is to operate under scheduled authority with 5 scheduled flights on this
route per week.
Cost outline to further justify the $1,000.00 per hour direct operating cost.
Operating Cost for the King Air 350 using actual numbers from 2016 in Advanced Air operations.
Average Fuel Burn per Hour 120.07 gallons per hour
Average Price of fuel per Gallon $3.13
Total cost of fuel per hour King Air 350 $375.81
Engine Overhaul reserves $222.00 per hour
Maintenance cost $165.00
Total $762.81 Direct Operating Cost
Fixed Cost to Include Loan payments including interest and principal, Insurance, Hangar, Property Tax,
Chart Service, Computerized Maintenance Program.
Total $671.50 Fixed Cost per hour
Combining direct operating cost per hour and fixed cost per hour The Total Operating Cost per hour is
$1,434.31.
The above numbers are the averages of the two company owned Aircraft with a combined annual use of
950.6 hours. Advanced Air Purchased N395MB the first Company owned Aircraft in October 2014 and
the second Company owned Aircraft N395AV the last quarter of 2015 with N395AV entering into service
in May of 2016. With a full 12 months of operating both aircraft the total cost per hour will be reduced
in 2017 due to fixed cost spread out over more flight hours on N395AV. Pilot Salaries are not included in
this outliner and no additional pilots are needed for these operations. On the P&L’s provided Pilot cost
with benefits are included.
Adding additional Flight to and from Last Vegas only increase Direct Operating Cost all Fixed Cost are
accounted for and will not increase with these operations. Direct Operating Cost of $762.81 is what we
have determined the cost will be using true numbers from 2016 operations. In our October 10th 2016
response we outlined a cost of $1,000.00 per hour this is a rounder number to the high side. This
outline I believe shows in detail that operating 5 flights to and from Las Vegas for Advanced Air will be at
a cost of $47,916.67 Per month and this is a very conservative number and included adding an
additional flight coordinator at an annual salary of $55,000.00.
Many items were listed in the Operations and Financial Information section below is a breakdown of
each item and how they apply to the Advanced Air operation for this Scheduled Authority request.
1.) Advertisement: Advanced Air has no Advertisement cost for these routes. The flights are
operated by Advanced Air on behalf of JetSmarter and they are all marketed and held out by
JetSmarter, as a public charter Operator, in accordance with the provisions of part 380 of the
department’s regulations. Further, in accordance with section 380.30(a), Advanced Air, as the
direct air carrier, is referenced by name in all solicitation material for the JetSmarter/Advanced
Air program.
2.) Aircraft Equipment Services: If this is related to Ground Power units, Lav services, etc. Advanced
Air has no charge for these items. Jet Center Los Angeles the FBO at KHHR is owned by
Advanced Air, LLC. The FBO is Advanced Air, LLC DBA Jet Center Los Angeles no additional fees
apply. In Las Vegas the fuel purchased on each flight waives any of these fees.
3.) Landing and Parking: Same with Aircraft Equipment Services above. . Advanced Air has no
charge for these items. Jet Center Los Angeles the FBO at KHHR is owned by Advanced Air, LLC.
The FBO is Advanced Air, LLC DBA Jet Center Los Angeles no additional fees apply. In Las Vegas
the fuel purchased on each flight waives any of these fees.
4.) Aircraft Insurance is in the P&L for the Advanced Air owned Aircraft, this is not increasing for
these flights. I have included a detailed operating cost above and this is accounted in fixed cost.
And will not increase for these operations.
5.) Hangar is paid in KHHR only. Already a current operating cost and included in the fixed cost
outline above and will not increase for these operations.
6.) Training is already a current operating cost and will not increase for these operations.
7.) Pre-Operating Expenses: We have no pre-Operating expenses Advanced Air is an established
aircraft charter operator and increasing flights between KHHR-KLAS-KHHR will only have an
increase on direct operating cost of the aircraft.
8.) Employee salary. Already a current operating cost and will not increase for these operations. To
be conservative we did add the cost to add one additional scheduler in the outline above.
9.) Employee Benefits: Already a current operating cost and will not increase for these operations.
10.)Legal Fees: Already a current operating cost and will not increase for these operations.
11.)Utilities: Already a current operating cost and will not increase for these operations.
P&L Detailed Expense categories
1.) I have included a detailed P&L December YTD 2013, 2014, 2015 and November 2016 along with
a Balance sheet for 2013.
Relationship between Advanced Air has with SurfAir and JetSmarter
1.) Advanced Air is no longer operating flight for SurfAir. With regard to Jet Smarter, as per the
public charter prospectuses approved by the Department on September 7, 2015 and May 19,
2016, as amended, the flights operated by Advanced Air on behalf of JetSmarter are all
marketed and held out by JetSmarter, as the Public Charter Operator, in accordance with the
provisions of Part 380 of the Department’s regulations. Further, in accordance with Section
380.30(a), Advances Air, as the direct air carrier, is referenced by name in all solicitation
material for the JetSmarter/Advance Air Program.
Response to letter sent on December 28th, 2016.
a.) Advanced Air, LLC certificate number 19AA699L is based at Hawthorne Airport (KHHR).
Advanced Air, LLC is the owner of Jet Center Los Angeles. Same entity Advanced Air, LLC DBA Jet
Center Los Angeles. Jet Center Los Angeles is the full service FBO at the Hawthorne Airport.
b.) Advanced Air Management is not associated with Advanced Air, LLC two different companies
with no relation to each other.
c.) Advanced Air, LLC owns no other shares of stock or control of any air carrier, common carrier, or
person substantially engaged in the business of aeronautics other than certificate number
19AA699L the certificate in this application.
d.) List of Key Personal All US Citizens
a. President Levi R. Stockton
b. Executive Vice President Donny Sandusky
c. Vice President of Flight Operations Michael Wootton
d. Director Of Operations Patrick Carey
e. Director of Maintenance Christopher Miller
f. Director of Safety Janise Lambert
g. Director of Training Robin McCall
h. Chief Financial Officer Thomas Lovell
e.) Time Divided between the company (ies) and Advanced Air.
a. Levi Stockton’s time is 100% dictated to Advanced Air and the resume provided does not
reflect any other positions with any other companies.
b. Patrick Carey is the Director of Operations for Advanced Air and that position is his
primary position and priority. Mr. Carey also is a partner of the flight school on the
Hawthorn Airport Beach Cities Aviation Academy and he is a FAA approved Designated
Pilot Examiner. He flies for Advanced Air 10 days a month doing company check rides
and flying trips and works in the office to maintain the duties required of the Director of
Operations in addition he is on call 24/7 when not on crew rest.
f.)
g.)
h.)
i.)
c. Christopher Miller owns Security Aviation the 145 repair station that does all the
maintenance for Advanced Air. Mr. Miller is in the office 6 days a week with Advanced
Air as priority number one and on call 24/7.
No actions or outstanding judgements for more than $5,000 against any relevant corporation,
key personnel employed (or to be employed) by any relevant corporation, or person having a
substantial interest in any relevant corporation, and the total amount owned by each on such
judgements.
No pending investigations, enforcement actions, and formal complaints filed by the
Department, including the FAA, involving the applicant or any relevant corporation, any
personnel employed (or to be employed) by any relevant corporation or person having a
substantial interest in any relevant corporation, regarding compliance with the Statute or orders
issued pursuant to the Statute, and any corrective actions taken.
No charges of unfair or deceptive or anticompetitive or antitrust violation, brought against any
relevant corporation or person having a substantial interest in any relevant corporation, or
member of the key personnel employed (or to be employed) by any relevant corporation in the
past 10 years. Such descriptions shall include the disposition or current status of each such
proceeding.
No aircraft accidents or incidents (as defined in the National Transportation Safety Board
Regulations, 49 CFR 830.2) experienced by the applicant, its personnel, or any relevant
corporation, which occurred either during the year preceding the date of application or at any
time in the past and which remain under investigation by the FAA, the NTSB, or by the company
itself.
Sincerely,
Levi Stockton
CEO
Advanced Air, LLC
The contents of this application 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, Levi Stockton, in my
individual capacity and as the authorized representative of the applicant, 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 the application. I understand that an individual
who is found to have violated the provision of 18 U.S.C. section 1001 shall be fined or imprisoned not
more than five years, or both.
______________________________________
Levi Stockton
CEO
Advanced Air, LLC
SERVICE LIST
LAS: McCarran International Airport
Clark County Department of Aviation
Clark County
PO BOX 11005
Las Vegas, NV 89111
HHR: Hawthorne Municipal Airport
City of Hawthorne
City Hall
4455 W 126 St.
Hawthorne, CA 90250
OAK: Oakland International Airport
Port of Oakland
530 Water St.
Oakland, CA 94607
LAX FSDO
15000 Aviation Blvd Suite 2000
Lawndale, CA 90261