(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.
(ii) The name and address of each director and each officer and each
person employed or who will be employed in a management position described
in §§119.65 and 119.69, as applicable.
(iii) The name and address of each person directly or indirectly
controlling or controlled by the applicant and each person under direct or
indirect control with the applicant.
(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.
(ii) The name and address of each person employed or who will be
employed in a management position described in §§119.65 and 119.69, as
applicable.
(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
(2) For applicants intending to conduct operations under part 121 of
this chapter, the financial information listed in paragraph (e) of this
section.
(d) Each applicant for, or holder of, a certificate issued under
paragraph (a) of this section, shall notify the Administrator within 10
days after --
(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.