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8-K - FORM 8-K AVSTAR AVIATION GROUP, INC. 3/5/2012 - AvStar Aviation Group, Inc.form8k.txt

HOUSTON, Feb. 27, 2012 /PRNewswire/ -- AvStar Aviation Group, Inc. (AvStar)
(OTCQB: AAVG.OB - News) today released the following company activity update.
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DOT Commuter Authority -
A competitor of Twin Air Calypso Limited lodged a complaint with the FAA, which
was forwarded to the DOT, alleging that we were exceeding our "on-demand"
authority regarding the number of times we flew to the destinations of Marsh
Harbour and Treasure Cay on the island of Abaco. The validity of the allegation
hinged on what constitutes a "published schedule". We contend our interpretation
of the FAA and DOT "published schedule" provision is in compliance with FAA and
DOT regulations. As our discussions and correspondence developed with the DOT
representatives it became evident that the Commuter Authority could not move
forward until this issue was resolved. To resolve the issue we elected to accept
a "Consent Order" and mitigated fine rather than expend legal fees to defend our
position and further delay the commuter authority approval. The company will
have to pay a $70,000 fine, $35,000 is payable over a 7 month period. Barring
further violations, the remainder will be waived after a one year period. The
"Consent Order" we accepted will be published in the DOT docket within the next
few days. As in the past we will respond immediately should there be any request
for additional information regarding our commuter authority application. With
the FAA/DOT issue resolved it is felt that an answer from the DOT will be
forthcoming.

Cuba Authority -
According to OFAC, our Cuba Authority application is in the final stages of the
approval process. We have not been asked for additional information and are not
aware of anything that would prevent our being approved for this authority.

Berry Aviation Alliance -

Twin Air Calypso and Berry Aviation are eager to formalize their alliance.
Logistical matters are being discussed and further details will be released as
they become available.

Revenues -
Our 2011 Twin Air Calypso Limited, Inc. revenues were over $2,200,000, which was
a 35% increase over 2010. Details will be contained within the upcoming 10K.
Currently, the 2012 revenues are on pace to equal 2011.

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/CEO
Phone: 713-965-7582
http://www.avstarinc.com
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cgamber(at)avstarinc(dot)co