14 CFR 119.36 - Additional certificate application requirements for commercial operators.
(a) Each applicant for the original issue of an operating certificate for the purpose of conducting intrastate common carriage operations under part 121 or part 135 of this chapter must submit an application in a form and manner prescribed by the Administrator to the Flight Standards District Office in whose area the applicant proposes to establish or has established his or her principal base of operations.
(b) Each application submitted under paragraph (a) of this section must contain a signed statement showing the following:
(1) For corporate applicants:
(i) The name and address of each stockholder who owns 5 percent or more of the total voting stock of the corporation, and if that stockholder is not the sole beneficial owner of the stock, the name and address of each beneficial owner. An individual is considered to own the stock owned, directly or indirectly, by or for his or her spouse, children, grandchildren, or parents.
(2) For non-corporate applicants:
(i) The name and address of each person having a financial interest therein and the nature and extent of that interest.
(c) In addition, each applicant for the original issue of an operating certificate under paragraph (a) of this section must submit with the application a signed statement showing -
(1) The nature and scope of its intended operation, including the name and address of each person, if any, with whom the applicant has a contract to provide services as a commercial operator and the scope, nature, date, and duration of each of those contracts; and
(1) A change in any of the persons, or the names and addresses of any of the persons, submitted to the Administrator under paragraph (b)(1) or (b)(2) of this section; or
(2) For applicants intending to conduct operations under part 121 of this chapter, a change in the financial information submitted to the Administrator under paragraph (e) of this section that occurs while the application for the issue is pending before the FAA and that would make the applicant's financial situation substantially less favorable than originally reported.
(e) Each applicant for the original issue of an operating certificate under paragraph (a) of this section who intends to conduct operations under part 121 of this chapter must submit the following financial information:
(1) A balance sheet that shows assets, liabilities, and net worth, as of a date not more than 60 days before the date of application.
(2) An itemization of liabilities more than 60 days past due on the balance sheet date, if any, showing each creditor's name and address, a description of the liability, and the amount and due date of the liability.
(3) An itemization of claims in litigation, if any, against the applicant as of the date of application showing each claimant's name and address and a description and the amount of the claim.
(4) A detailed projection of the proposed operation covering 6 complete months after the month in which the certificate is expected to be issued including -
(i) Estimated amount and source of both operating and nonoperating revenue, including identification of its existing and anticipated income producing contracts and estimated revenue per mile or hour of operation by aircraft type;
(ii) Estimated amount of operating and nonoperating expenses by expense objective classification; and
(iii) Estimated net profit or loss for the period.
(5) An estimate of the cash that will be needed for the proposed operations during the first 6 months after the month in which the certificate is expected to be issued, including -
(i) Acquisition of property and equipment (explain);
(ii) Retirement of debt (explain);
(iii) Additional working capital (explain);
(iv) Operating losses other than depreciation and amortization (explain); and
(v) Other (explain).
(6) An estimate of the cash that will be available during the first 6 months after the month in which the certificate is expected to be issued, from -
(i) Sale of property or flight equipment (explain);
(ii) New debt (explain);
(iii) New equity (explain);
(iv) Working capital reduction (explain);
(v) Operations (profits) (explain);
(vi) Depreciation and amortization (explain); and
(vii) Other (explain).
(7) A schedule of insurance coverage in effect on the balance sheet date showing insurance companies; policy numbers; types, amounts, and period of coverage; and special conditions, exclusions, and limitations.
(8) Any other financial information that the Administrator requires to enable him or her to determine that the applicant has sufficient financial resources to conduct his or her operations with the degree of safety required in the public interest.
(f) Each financial statement containing financial information required by paragraph (e) of this section must be based on accounts prepared and maintained on an accrual basis in accordance with generally accepted accounting principles applied on a consistent basis, and must contain the name and address of the applicant's public accounting firm, if any. Information submitted must be signed by an officer, owner, or partner of the applicant or certificate holder.
Title 14 published on 03-May-2017 03:58
The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 14 CFR Part 119 after this date.