The US Federal Aviation Administration (FAA) has restarted carrier California Pacific Airlines' part 121 certification process, after suspending its review of the application due to sequester related budget cuts.
The Carlsbad, California-based start-up carrier says that the FAA restarted its review on 7 June after stopping the process in early May due to the federal government's across the board budget cuts, in a letter to the US Department of Transportation (DOT) dated 24 June and released by the agency today.
Part 121 certification is required for the airline to begin commercial operations in the USA.
Theodore Vallas, chairman of California Pacific, says in the letter that the airline is developing a timeline to compete certification and start operations by the end of the year.
The carrier received operating authority from the DOT in August 2011.
This is not the first 121 certification setback for California Pacific. The FAA's San Diego flight standards district office suspended its previous application on 20 November 2012. The airline appealed this move and a new application and review process was commenced with the FAA's Los Angeles flight standards office this past March.
Stephens will help California Pacific raise at least $5 million in capital during the next three to four months, wrote Michael Miller, a New York-based managing director of the investment bank, in a letter to Vallas dated 11 June that was included in the DOT filing. The amount would only cover costs during the certification process while a larger amount could be raised to cover additional start-up costs.
The carrier engaged Stephens to help it raise funds in September 2012.
California Pacific reported $3.18 million in assets at the end of May, with $1.85 million in liquid current assets.