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14 CFR Ch. I (1–1–19 Edition) 

§ 119.37 

(1) A change in any of the persons, or 

the names and addresses of any of the 
persons, submitted to the Adminis-
trator under paragraph (b)(1) or (b)(2) 
of this section; or 

(2) For applicants intending to con-

duct operations under part 121 of this 
chapter, a change in the financial in-
formation submitted to the Adminis-
trator under paragraph (e) of this sec-
tion that occurs while the application 
for the issue is pending before the FAA 
and that would make the applicant’s fi-
nancial situation substantially less fa-
vorable than originally reported. 

(e) Each applicant for the original 

issue of an operating certificate under 
paragraph (a) of this section who in-
tends to conduct operations under part 
121 of this chapter must submit the fol-
lowing 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 credi-
tor’s name and address, a description of 
the liability, and the amount and due 
date of the liability. 

(3) An itemization of claims in litiga-

tion, if any, against the applicant as of 
the date of application showing each 
claimant’s name and address and a de-
scription and the amount of the claim. 

(4) A detailed projection of the pro-

posed operation covering 6 complete 
months after the month in which the 
certificate is expected to be issued in-
cluding— 

(i) Estimated amount and source of 

both operating and nonoperating rev-
enue, including identification of its ex-
isting and anticipated income pro-
ducing contracts and estimated rev-
enue 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 ex-
pected to be issued, including— 

(i) Acquisition of property and equip-

ment (explain); 

(ii) Retirement of debt (explain); 
(iii) Additional working capital (ex-

plain); 

(iv) Operating losses other than de-

preciation 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 certifi-
cate is expected to be issued, from— 

(i) Sale of property or flight equip-

ment (explain); 

(ii) New debt (explain); 
(iii) New equity (explain); 
(iv) Working capital reduction (ex-

plain); 

(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, exclu-
sions, and limitations. 

(8) Any other financial information 

that the Administrator requires to en-
able him or her to determine that the 
applicant has sufficient financial re-
sources to conduct his or her oper-
ations with the degree of safety re-
quired in the public interest. 

(f) Each financial statement con-

taining financial information required 
by paragraph (e) of this section must 
be based on accounts prepared and 
maintained on an accrual basis in ac-
cordance with generally accepted ac-
counting principles applied on a con-
sistent basis, and must contain the 
name and address of the applicant’s 
public accounting firm, if any. Infor-
mation submitted must be signed by an 
officer, owner, or partner of the appli-
cant or certificate holder. 

[Doc. No. 28154, 62 FR 13254, Mar. 19, 1997; 62 
FR 15570, Apr. 1, 1997, as amended by Docket 
FAA–2018–0119, Amdt. 119–19, 83 FR 9172, Mar. 
5, 2018] 

§ 119.37

Contents of an Air Carrier 

Certificate or Operating Certificate. 

The Air Carrier Certificate or Oper-

ating Certificate includes— 

(a) The certificate holder’s name; 

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