**BEFORE THE**

**DEPARTMENT OF TRANSPORTATION**

**WASHINGTON, D.C.**

[\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}

> )

Essential Air Service at )

)

**PARKERSBURG, WEST VIRGINIA** ) **OST-2005-20734**

> )

Under 49 U.S.C. §41731 *et seq.* )

[\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}

##### GULFSTREAM INTERNATIONAL AIRLINES PROPOSAL 

##### TO PROVIDE SUBSIDIZED AIR SERICE AT 

##### PARKERSBURG, WEST VIRGINIA

Correspondence with regard to this document should be addressed to:

Mickey Bowman

Vice President of Corporate Development

Gulfstream International Airlines

3201 Griffin Road, 4^th^ Floor

Ft. Lauderdale, FL 33312

Telephone: 270-689-2180

Fax: 270-689-2180

E-Mail: mbowman@gulfstreamair.com

Gulfstream International Airlines ("Gulfstream") cordially submits its
proposal to provide subsidized air service to Parkersburg, West
Virginia.

Gulfstream intends to operate these flights under its existing codeshare
agreement with Continental Airlines to its hub in Cleveland, Ohio.
Gulfstream believes that success in Parkersburg is best achieved through
frequency of service. History has shown us that as recently as 2005,
Parkersburg generated 29,342 bi-directional passengers on a schedule
that consisted of 5 roundtrips each weekday with 19 seat, Beech 1900D
equipment. This frequent, reliable service is vital to woo back the core
business passenger.

In compliance with Public Law 100-223, Gulfstream proposes to operate
these flights using Beech 1900D turboprops that are pressurized and
accommodate 19 passengers to the, FAA defined, medium-sized hub at
Cleveland, OH. Two Options are offered.

The proposed service pattern (**Option 1**) features 36 weekly
frequencies between Parkersburg and Cleveland, Ohio. This service would
consist of three non-stop roundtrips each weekday. Weekend service would
feature a single one-stop roundtrip on Saturday and two non-stop
roundtrips on Sunday.

Gulfstream's second service offering (**Option 2**) features 48 weekly
frequencies between Parkersburg and Cleveland, Ohio. This service would
consist of four non-stop roundtrips each weekday. Weekend service would
feature a single one-stop roundtrip on Saturday and three non-stop
roundtrips on Sunday. **[Option 2 is a Contingent Bid predicated on
Gulfstream being chosen as the Essential Air Service provider at
Bradford, PA and Jamestown, NY as the fourth roundtrip is reliant on
that additional aircraft flow.]{.underline}** Details of our bids are
summarized below.

**Option 1**

  ----------------- -------------------- -------------- -----------------
  **Parkersburg,    **-- Cleveland OH,   **36 Legs**    **per Week**
  WV**              Non-Stop**                          

                    **Total Subsidy      **3 RTs each   **\$2,288,987**
                    Required**           Svc Day**      
  ----------------- -------------------- -------------- -----------------

**Option 2**

  ----------------- -------------------- -------------- -----------------
  **Parkersburg,    **-- Cleveland OH,   **48 Legs**    **per Week**
  WV**              Non-Stop**                          

                    **Total Subsidy      **4 RTs each   **\$2,999,854**
                    Required**           Svc Day**      
  ----------------- -------------------- -------------- -----------------

In conclusion, Gulfstream believes that these proposals will provide the
communities of Parkersburg, West Virginia with superior air service. We
feel the communities will benefit from the strength of the Continental
codeshare as well as the integrity of service that has been a hallmark
of the Gulfstream operation. Most importantly, we feel the frequency
levels we offer will stimulate the return of business traffic and
position Parkersburg for future growth.

Respectfully Submitted: June 18, 2008

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Mickey Bowman

Vice President of Corporate Development

Gulfstream International Airlines

**Gulfstream Airlines**

**Sample Flight Schedule**

**Option 1**

FROM TO DEP ARR FLT EQP FREQ STP

STA STA TIME TIME NUM

  -------- -------- -------- -------- -------- -------- -------- --------
  PKB      CLE      0700     0755     7501     BE1      DAILY    0

  PKB      CLE      0955     1050     7502     BE1      X67      0

  PKB      CLE      1335     1430     7503     BE1      X6       0

                                                                 
  -------- -------- -------- -------- -------- -------- -------- --------

FROM TO DEP ARR FLT EQP FREQ STP

STA STA TIME TIME NUM

  -------- -------- -------- -------- -------- -------- -------- --------
  CLE      PKB      0850     0945     7501     BE1      X67      0

  CLE      PKB      1230     1325     7502     BE1      X6       0

  CLE      PKB      1800     1855     7503     BE1      6 ONLY   0

  CLE      PKB      1905     2030     7504     BE1      X6       0
  -------- -------- -------- -------- -------- -------- -------- --------

(Note: This Schedule is for illustrative purposes and may not reflect
the final published product)

**Gulfstream Airlines**

**Sample Flight Schedule**

**Option 2**

FROM TO DEP ARR FLT EQP FREQ STP

STA STA TIME TIME NUM

  -------- -------- -------- -------- -------- -------- -------- --------
  PKB      CLE      0700     0755     7500     BE1      DAILY    0

  PKB      CLE      0955     1050     7501     BE1      X67      0

  PKB      CLE      1335     1430     7502     BE1      X6       0

  PKB      CLE      1905     2000     7503     BE1      X6       0
  -------- -------- -------- -------- -------- -------- -------- --------

FROM TO DEP ARR FLT EQP FREQ STP

STA STA TIME TIME NUM

  -------- -------- -------- -------- -------- -------- -------- --------
  CLE      PKB      0850     0945     7501     BE1      X67      0

  CLE      PKB      1230     1325     7502     BE1      X6       0

  CLE      PKB      1800     1855     7503     BE1      DAILY    0

  CLE      PKB      1905     2000     7504     BE1      X6       0
  -------- -------- -------- -------- -------- -------- -------- --------

(Note: This Schedule is for illustrative purposes and may not reflect
the final published product)

  ---------------------------- ----------- ------- --- ----------------------------
  **GULFSTREAM INTERNATIONAL                           
  AIRLINES**                                           

  **Essential Air Service                              
  Proposal**                                           

  **Parkersburg, West                                  
  Virginia**                                           

  **Option 1**                                         

                                                       

                                                       **[Parkersburg,
                                                       WV]{.underline}**

  Hub Served                                           **Cleveland**

  Number of Roundtrips per                             **3**
  Service Day                                          

                                                       

  **[Operating                                         
  Statistics]{.underline}**                            

  Completion %                                         **97%**

  Annual Adjusted Block Hours                          **1664.52**

  Annual Adjusted Departures                           **1815.84**

  Annual Adjusted ASMs                                 **4,968,138**

  Annual RPMs                                          **1,836,000**

  Projected Load Factor                                **37.0%**

                                                       

  **[Revenue                                           
  Projections]{.underline}**                           

  Enplaned Passengers                                  **12,750**

  Mileage                      (Average as             **144**
                               Operated)               

  Average Fare                                         **\$71.40**

  **Passenger Revenue**                                **\$910,350**

                                                       

  **[Expense                                           
  Projections]{.underline}**                           

  Flight Operations                                    **\$246,005**

  Ownership                                            **\$168,967**

  Maintenance                                          **\$633,569**

  Reservations, Stations &                             **\$1,036,348**
  Administration                                       

  Fuel                                                 **\$957,099**

  Marketing                                            **\$5,000**

  **Total Annual Expenses**                ** **       **\$3,046,988**

                                                       

  Projected Profit / (Loss)                            **(\$2,136,638)**

                                                       

  Profit Element                                       **\$152,349**

                                                       

  **Annual Subsidy Required**                          **\$2,288,987**

                                                       

  Subsidy per Departure                                **\$1,260.57**

  Subsidy per Passenger                                **\$179.53**
  ---------------------------- ----------- ------- --- ----------------------------

  ---------------------------- ----------- ------- --- ----------------------------
  **GULFSTREAM INTERNATIONAL                           
  AIRLINES**                                           

  **Essential Air Service                              
  Proposal**                                           

  **Parkersburg, West                                  
  Virginia**                                           

  **Option 2**                                         

                                                       

                                                       **[Parkersburg,
                                                       WV]{.underline}**

  Hub Served                                           **Cleveland**

  Number of Roundtrips per                             **4**
  Service Day                                          

                                                       

  **[Operating                                         
  Statistics]{.underline}**                            

  Completion %                                         **97%**

  Annual Adjusted Block Hours                          **2219.36**

  Annual Adjusted Departures                           **2421.12**

  Annual Adjusted ASMs                                 **6,624,184**

  Annual RPMs                                          **2,453,760**

  Projected Load Factor                                **37.0%**

                                                       

  **[Revenue                                           
  Projections]{.underline}**                           

  Enplaned Passengers                                  **17,040**

  Mileage                      (Average as             **144**
                               Operated)               

  Average Fare                                         **\$71.40**

  **Passenger Revenue**                                **\$1,216,656**

                                                       

  **[Expense                                           
  Projections]{.underline}**                           

  Flight Operations                                    **\$320,011**

  Ownership                                            **\$306,360**

  Maintenance                                          **\$809,250**

  Reservations, Stations &                             **\$1,298,970**
  Administration                                       

  Fuel                                                 **\$1,276,132**

  Marketing                                            **\$5,000**

  **Total Annual Expenses**                ** **       **\$4,015,723**

                                                       

  Projected Profit / (Loss)                            **(\$2,799,067)**

                                                       

  Profit Element                                       **\$200,786**

                                                       

  **Annual Subsidy Required**                          **\$2,999,854**

                                                       

  Subsidy per Departure                                **\$1,239.04**

  Subsidy per Passenger                                **\$176.05**
  ---------------------------- ----------- ------- --- ----------------------------