MARCH 9TH, 2016

N. County Readies to Launch Regional Airline from Palomar

Carlsbad, California ­­ T he stars are aligning once again to see the launch of a new regional airline serving North San Diego County and surrounding areas. California Pacific Airlines, whose planned startup in mid­2013 met with an unforeseen budget sequestration of the Federal Aviation Administration (FAA), is now back on track and forging ahead toward certification by the regulatory agency.

Working with the FAA Certificate Management Office in Phoenix, Arizona, CP Air’s formal application, including its Department of Transportation (DOT) Final Order, has been reactivated and moving steadily through phased approval assessments. The detailed process is expected to culminate in an Operating Certificate in about four months’ time.

According to Ted Vallas, CP Air Founder and Chairman, the company has been able to maintain its fitness to engage in scheduled air transportation of persons, property and mail since August 2011 when its business plan received preliminary approval by the regulatory authorities. “All along, we continued to invest in the airline, despite difficulties that proved beyond our control. The [North County] community must know that we never abandoned our plans to bring a quality air service to the region. We’ve kept our position with the FAA, DOT, our investors, and County Airports and are now moving forward,” he adds.

The airline will initially utilize three 30­seat ERJ­135 twinjets manufactured by Brazil’s Embraer to jump start its operations from McClellan–Palomar Airport. Once established and certified as a FAR Part 121 carrier, CP Air will integrate the larger, 70­seat EMB­170 into its fleet that is projected to grow to 20 aircraft in three to four years. At that point, the airline’s expanded route network will comprise 25 domestic and international destinations, including Houston, Vancouver and Acapulco.

CP Air’s vision for successfully launching and sustaining its operations is based on multi­source funding from local investors, the U.S. government­administered EB­5 Immigrant Investor Program, bank loans and venture capital from the renowned investment banker, Stephens, Inc. The latter could by itself raise $70 million to $100 million for the airline.

Economic Impact
At a time when good­paying jobs, especially in Southern California’s shrinking commercial aerospace and transportation sectors, are becoming scarcer, CP Air will usher in significant employment opportunities for its furloughed personnel and many others in the workforce. “Over 500 direct new jobs are expected to be created within the first two years of operation,” says Vallas. Further, the hotel industry, with numerous five­star properties in North County, will be a major beneficiary of CP Air that will cater mainly to leisure and business travelers. Economic development experts agree that a vibrant regional airline based in Carlsbad will have unquestionable commercial and reputational benefits for San Diego County and the state of California as a whole.

In about two weeks, CP Air will invite key media, business and community representatives to a P RESS CONFERENCE f or a more detailed update. Please stay tuned and in touch.

About California Pacific Airlines
CP Air is an up­and­coming scheduled air service provider offering point­to­point Regional Jet access to rapidly growing North San Diego County and adjacent areas. The Carlsbad, California­based airline is nearing final FAA approval to start its Phase 1 operations to link McClellan–Palomar Airport (CRQ) to six popular destinations in California, Arizona, Nevada and Mexico. Utilizing well­appointed Embraer ERJ­135 twinjet aircraft, CP Air will bring long­awaited non­stop daily flights to business and leisure travelers in numerous underserved communities. CP Air’s service will combine cabin comfort, convenient airport connections, and economical fares. More information about the new airline will soon be available on our website now under construction.