SECURITIES AND EXCHANGE COMMISSION
Washington DC 20549
FORM 8-K/B
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 11, 1997
Big Sky Transportation Co.
(Exact name of registrant as specified in its charter)
MONTANA 1-7991 81-0387503
(State or other (Commission (IRS Employer
jurisdiction file number) identification
of incorporation) number)
1601 Aviation Place, Billings MT 59105
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (406) 245-9449
___________________________________________________________________________
(Former name or former address, if changed since last report)
Item 4. Changes in Registrant's Certifying Accountant
(a) At its board meeting on February 12, 1997 at the recommendation of the
audit committee, the Board of Directors of Big Sky Transportation Co.
engaged the accounting firm of Charles Bailly & Company P.L.L.P. as
independent accountants for the Registrant for the fiscal year ending
June 30, 1997, subject to approval of shareholders. The firm of KPMG
Peat Marwick LLP, which had been serving as independent accountants for
the registrant, was dismissed at the same board meeting on February 12,
1997.
(b) During the Registrant's two most recent years and subsequent interim
periods through the date of dismissal, there have been no disagreements
with KPMG Peat Marwick LLP on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or
procedure, which disagreements, if not resolved to the satisfaction of
KPMG Peat Marwick LLP, would have caused it to make reference to the
subject matter of the disagreements in connection with its reports.
(c) KPMG Peat Marwick LLP's report on the financial statements for the past
two years contained no adverse opinion or disclaimer of opinion and was
not qualified as to uncertainty, audit scope or accounting principles.
KPMG Peat Marwick LLP's report for the past two fiscal years did contain
an emphasis of a matter paragraph related to the significance of
Essential Air Service subsidies to the Registrant's operations.
(d) The Registrant requested that KPMG Peat Marwick LLP furnish it with a
letter addressed to the Securities and Exchange Commission stating
whether it agrees with the statements made by the Registrant in response
to this item 4 and if not, stating the respects in which it does not
agree. Pursuant to a letter request from the SEC staff dated March 4,
1997, the Registrant has requested that KPMG Peat Marwick LLP furnish a
letter concerning the Registrant's revised disclosure. A copy of KPMG
Peat Marwick LLP's letter to the Securities and Exchange Commission,
dated March 11, 1997, is filed as Exhibit 16, to this Form 8-K/B.
(e) During the two most recent fiscal years and the subsequent interim
periods through the date of dismissal of KPMG Peat Marwick LLP, Charles
Bailly & Company P.L.L.P., the newly appointed independent accountants
of the registrant, has not been consulted regarding; (1) the application
of accounting principles to a specified transaction, either completed or
proposed; (2) the type of audit opinion that might be rendered on the
registrant's financial statements; or (3) any matter that was either the
subject of a disagreement or a reportable event.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BIG SKY TRANSPORTATION CO.
d.b.a BIG SKY AIRLINES
By: /s/ Terry D. Marshall
Terry D. Marshall
President & C.E.O.
Dated: March 11, 1997
EXHIBIT 16
March 5, 1997
Securities and Exchange Commission
Washington DC 20549
Ladies and Gentlemen:
We were previously principal accountants for Big Sky Transportation Co. and,
under the dates of August 23, 1996, except as to the second paragraph of
note 7 and the first paragraph of note 11 to the financial statements which
are as of October 9, 1996, we reported on the financial statements of Big Sky
Transportation Co. as of and for the years ended June 30, 1996 and 1995. On
February 14, 1997, we were notified that our appointment as principal
accountants was terminated. We have read Big Sky Transportation Co.'s
statements included under Item 4 of its 8-K dated February 19, 1997, and we
agree with such statements except that, with respect to:
Item 4(a) - We are not in a posistion to agree or disagree with Big Sky
Transportaiton Co.'s statements that the change was recommended by the
audit committee and approved by the board of directors.
Item 4(e) - We are not in a position to agree or disagree with any of the
statements in Item 4(e).
/s/ KPMG Peat Marwick LLP