Baltia Air Lines Inc. (fka BLTA)

[mysterymeat]

First you do a Google search for: DOT requirements to transfer airline certificates.

Click the link for: U.S. Air Carriers | US Department of Transportation
https://www.transportation.gov/policy/aviation-policy/licensing/US-carriers
Transfer of Authority

Certificates are not transferable without prior Department approval. Applications for transfer of certificate authority should be filed jointly by the transferor and the transferee with the Department’s Dockets Section at least three months in advance of the proposed effective date of the transfer. Additional time would be required if objections are filed or complex or unusual issues are raised by the application. Applicable filing fees, to be paid via www.pay.gov, are $290 (interstate authority) and $255 (foreign authority). Under section 41105 of the Statute, in order to approve a transfer, the Department must find that the proposed transfer is “consistent with the public interest,” that is, that the transferee is fit to conduct the proposed operations.

The Department must also analyze the effects of the transfer on (1) the viability of each air carrier involved in the transfer, (2) competition in the domestic airline industry, and (3) the trade position of the United States in the international air transportation market. Applicants for a certificate transfer should describe the circumstances of the transfer, attach evidence supporting the fitness of the transferee as set forth in section 204.3, and provide sufficient information to enable the Department to analyze the effects of the transfer as noted above. In addition, a balance sheet for the air carrier immediately prior to and immediately following the projected closing date of the transfer, as well as copies of all agreements between the transferor and transferee, should be filed.

Now you got to find section 204.3
Luckily they made this real easy and provided links for it and a how to guide.

Start with the: How to Become a Certificated Air Carrier
There you will find another link for the pdf file https://www.transportation.gov/sites/dot.gov/files/docs/Certificated_Packet_2012_final.pdf

Scroll past the management section that Baltia didn't meet, down to page 17 under: Financial Position and Operating Plans you will find:
Data Required
The following financial information about the applicant should be provided:
1. Balance sheets and income statements of the applicant and all relevant corporations, together with their accompanying explanatory footnotes (including a description of the company's significant accounting policies, such as for depreciation, amortization of intangibles, overhauls, unearned revenues, and cost capitalization), for the three most recent calendar or fiscal years, and for a period ending no more than three months prior to the date of filing(Baltia did not have this available). This requirement may be met by the submission of financial statements, preferably audited, or 10K and/or 10Q reports filed with the Securities and Exchange Commission.

a. The financial documents should include a statement as to who prepared them, his or her qualifications and relationship, if any, to the applicant, and whether they were prepared in accordance with Generally Accepted Accounting Principles.
b. If an annual audit, review, or compilation by an independent CPA is performed, the name and address of the firm, and type of services provided should be listed.
2. Statements which include a description of the following:
a. Any liens or encumbrances against any of the applicant's or any relevant corporation’s assets, including those pledged as collateral for any outstanding obligations.
b. Any major commitments into which the applicant or any relevant corporation has entered during the past 6 months, or proposes to enter into during the next 6 months, including bank or other institutional financing, private financing, issuance of bonds or stock in the applicant, or major contracts to perform services.
c. Any transactions in which the applicant or any relevant corporation sold or exchanged any major assets (aircraft, land, buildings, etc.) during the past 6 months, or plans to sell or exchange within the next 6 months, including how any funds realized from those transactions were, or are intended to be, used.
d. Any liabilities of the applicant or any relevant corporation that are more than 60 days past due at the time of the application, including the amount and the circumstances under which they are past due and will be paid.
e. Any contingent liabilities that may have an effect on the applicant's or any relevant corporation’s financial posture (e.g., lawsuits, pending judgments), including plans to meet those obligations.
f. Any events that occurred after the preparation of the most recent financial statements that may have a significant impact on the financial position or on the operations of the applicant or any relevant corporation. If no such events have occurred, provide a statement to that effect.

There is another link for: CFR 14 Parts 200-1199 that will take you to Title 14 Aeronautics and Space Parts 200 to 1199 pdf. CFR-2012-title14-vol4 Part 200 DOT.pdf
Part 204 starts on page 10 and 204.3 Subpart B—Filing Requirements starts on page 12.

Baltia knew they did not have 3 years of current filings when they submitted their request to transfer Songbird's certificate.

When the Logistic Air problem came up in early July they should have terminated the LOI with Aerline while the $1,000,000.00 Purchase Deposit was still refundable.