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Thursday, 07/21/2011 9:49:43 AM

Thursday, July 21, 2011 9:49:43 AM

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AvStar Aviation Group, Inc. Announces Submission of Commuter Authority Application

HOUSTON, July 21, 2011 /PRNewswire via COMTEX/ -- AvStar Aviation Group, Inc. (AvStar) (OTCBB: AAVG) today announced that its wholly owned subsidiary Twin Air Calypso Limited, Inc (TACL). has completed its Commuter Authority application and will forward it to the Department of Transportation (DOT) today. The commuter authority will allow TACL to increase flight frequency to its destinations, publish a schedule through traditional airline venues such as the Official Airline Guide, and offer tickets through online services. With approval, TACL will have the authorities that allow for the possibility of "code sharing" arrangements, and interline agreements with major airlines. The application posting and the approval process can be monitored on the DOT Docket System. The company has requested approval for Commuter Authority operations to commence on December 1, 2011. It is projected that with the Commuter Authority status, first year annual revenue will be approximately 3.5 million dollars. More detailed financial information is contained within the DOT filing.
In other news:

The company expects another aircraft will be returned to service by the first week of September 2011. With this aircraft, the company will have five aircraft available for service.

Alliances with two area operators are being pursued. These alliances if entered into will add reserve aircraft to the company's service fleet. Further details are to be announced.

"With the filing of our Commuter Authority application we now have in progress all parts required for beginning our next stage of growth. We are continuing to increase our fleet; another aircraft is projected to be in service by early September and we are pursuing alliances with two additional operators for additional reserve aircraft. A new facility, additional aircraft, additional personnel, development of a customized reservation/management system and now the filing, all sets up the 2011 holiday season and beyond to be an unprecedented period in the 50-year heritage of our service to the Bahamas", said Clayton Gamber, CEO of AvStar Aviation Group, Inc.

Forward-Looking Statements: Certain statements contained in this release issued by AvStar Aviation Group, Inc. (the "Company") that are not historical facts are "forward-looking" statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, and because such statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are statements regarding the intent, belief, or current expectations, estimates, or projections of the Company, its directors, or its officers about the Company and the industry in which it operates and are based on assumptions made by management. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that the anticipated results will occur. When issued in this report, the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and similar expressions are generally intended to identify forward-looking statements.

Contact:Clayton I. Gamber Jr.President/CEOPhone: 713-965-7582http://www.avstarinc.comcgamber(at)avstarinc(dot)com