OST 97-2763 / Baltia Air Lines Supplemental / August 6, 1997
Request for Exemption
BALTIA AIR LINES, INC.
from requirements of section 204.7
REQUEST FOR EXEMPTION
SUPPLEMENTAL DOCUMENTATION
Baltia Air Lines, Inc. ("Baltia") hereby submits additional documentation on Global Equities Group, Inc. ("Global"), Baltia's firm commitment underwriter; the IPO market, the Lateko Banka, currently extending a $6 million line of credit; Evergreen Air Center, where maintenance and B747 maintenance training will be held; Anthony Morello, Baltia's Manager of Technical Quality Assurance; Icelandair JFK lease and services; fuel availability at both JFK and St. Petersburg; and prepaid advertising. (Agreement being withheld from the public.)
Global just completed a five million-dollar secondary offering by Cluckcorp International, Inc. ("Cluckcorp") (Attachment 1) and is processing Baltia's Initial Public Offering ("IPO") on a firm commitment basis. Global had also done the firm commitment IPO for Cluckcorp one year ago for $5.75 million with the sale of 1,000,000 shares. (Attachment 1.) Similarly, Baltia's IPO includes 1,000,000 shares for $6.5 million. (An engagement letter filed with the Department 7/25/97.)
By contrast to the dead IPO market in March 1997, when Baltia suspended its best-efforts IPO, the "IPO market is back in business, racking up one-day returns this month approaching last year's headiest days, and raising hopes that the performance of new issues and small caps will continue firming for the rest of the year." The Wall Street Journal, July 28, 1997. (Attachment 1.)
The Thomson Bank Directory, published by Thomson Financial Publishing, the Official Routing Number Registrar for the American Bankers Association, reports that Lateko Banka (Latvian Economic Commercial Bank, Inc.) is the second largest bank in Latvia. It is second only to the Bank of Latvia, the government owned central bank of Latvia. Lateko is wholly privately owned with international correspondents in Copenhagen, Dnepropetrovsk, Frankfurt, Helsinki, Kiev, London, Minsk, Moscow, New York, Paris, Riga, Stockholm, Talinn, Vienna, and Vilnius. (Attachment 2.)
Evergreen Air Center, Inc. ("Evergreen") is one of the most experienced B747 maintenance centers in the world. It has completed more than 45 "C" checks and above for this aircraft. It is experienced in performing Section 41 inspections and repairs, and has an extensive training department. (Attachment 3.) Baltia has arranged to use Evergreen for its heavy maintenance and aircraft maintenance training.
Anthony Murello is a recent addition to Baltia as Manager of Technical Quality Assurance. Mr. Murello brings experience in aviation technical services, including inspection, supervision, teaching, and line maintenance of the B747. (Attachment 4.)
The Icelandair letter affirms previously stated arrangements with Baltia. In addition to currently leasing office space, Baltia will have check-in counters and use of Icelandair's business class lounge. Space is being made available for the storage of ground equipment, for Baltia's line maintenance and service personnel, and for spare parts necessary for aircraft turnaround and line maintenance. Baltia will have access to the use of the baggage handling system. (Attachment 5.)
Texaco and Aero Shannon affirm the availability of fuel for Baltia's flights at both JFK and St. Petersburg. (Attachment 6.)
Conclusion:
As evidenced by the documents submitted in this docket, at this time, Baltia has financing, aircraft, training, maintenance, insurance, passenger and cargo traffic, management, initial prepaid advertisements, and detailed plans by which the company will move from this point to revenue flight operations. An exemption from the Department will enable the Company to commence its FAA certification and its IPO. This point of readiness has been achieved through six years of unceasing effort. Baltia is ready, willing, able and very eager to commence flights between New York and St. Petersburg as the US carrier developing the US - St. Petersburg market with nonstop direct air service.
Respectfully submitted, BALTIA AIR LINES, INC.
Steffanie J. Lewis
THE INTERNATIONAL BUSINESS LAW FIRM P.C.
3511 North Thirteenth Street
Arlington, Virginia 22203
Telephone: 703 522 1198
Facsimile: 703 522 1197
August 6, 1997.