Sovereign Mr, Inc. 

October 12, 2011 

Dennis J. DeVany, Chief 

EAS & Donnestic Analysis Division, X-53 

Office of Aviation Analysis 

Department of Transportation 

1200 New Jersey Ave. SE 

Washington, DC 20590 

Re: Proposal to Provide Essential Air Service at: 

CNISHOLM/HIBBING, MINNESOTA DOT-OST2003-15796 

INTERNATIONAL FALLS, MINNESOTA DOT-OST-2009-0304 

THIEF RIVER FALLS, MINNESOTA DOT-OST-2001-10642 

DEVILS LAKE, NORTH DAKOTA DOT-OST-1997-2785 

JAMESTOWN, NORTH DAKOTA DOT-OST-1997-2785 

FORT DODGE, IOWA DOT-OST-2001-10682 

MASON CITY, IOWA DOT-OST-2001-10684 

IRON MOUNTAIN/KINGSFORD, MICHIGAN DOT-OST-1999-5175 

ESCANABA, MICHIGAN DOT-OST-2003-15128 

'•Jt. 

^ANSPORTAT& 

~-.€KETOPFRAT(ONS 

M OCT f 1 A q: 32 

Dear Mr. DeVany: 

In response to Order,2011-9-5 Sovereign Air, Inc. offers the following proposal: 

Sovereign Air, Inc. (SAI) is planning to use 30 seat dornier 328 jet or a 30 seat Jetstream aircraft for 

service to Minneapolis on each route from (Thief River Falls - International Falls - Chisholm/Hibbing), 

(Devils Lake - Jamestown), (Fort dodge - Mason city) and (Iron Mountain - Escanaba to Chicago). 

Our flights will service only the EAS cities and the MSP and ORD Hubs. Sovereign Air believes that with 

excellent baggage handling, proper schedules, inexpensive pricing, a comfortable-quiet- pressurized 

aircraft, and a recovering economy, the load factors will increase in these markets. Sovereign Air is 

getting into the unique position to help Essential Air Service communities keep their ticket funds at 

home. 

SAI will have baggage and ticket agreements with the major air carriers in MSP and ORD by the start of 

this EAS service. SAI will also have cargo agreements for both domestic and international air freight 

movements. 

SAI has been HAZMAT approved and will be working in conjunction with hospitals to expedite various 

HAZMAT materials that they need to transport. 

SAI's goal is to work hand-in-hand with the communities to reduce the need for EAS subsidies within the 

next four to six years. 

Sovereign Air is currently in the process of acquiring its funding. Scheduled Service Authority and 

anticipates being able to start this Essential Air Service within 90 days. 
Sovereign Air will be fully integrated into the Global Distribution System (GDS) in conjunction with 

Worldspan. SAI is not tied to just one airline, allowing Sovereign Air better visibility in the various 

reservation systems. Passengers will have a broad range of channels through which to purchase tickets, 

including all airline reservation systems and travel agencies, Orbitz, Priceline, Expedia, ect:. Customers 

will be able to call our reservation office or visit our website to book flights. Passengers can also 

purchase tickets and make reservations at our ticket counters. 

SAI's schedules will be developed by the City Airport Boards and SAI to reduce layover times in MSP and 

provide the best possible arrival and departure times for communities. 

Thank You 

Robert B Karns 

VP GM Sovereign Air 
Sovereign Air Inc 

Porposal ti l 

12-Oct-l l 

International Falls-Chisholm/Hibbing 24 Round Trips Per Week 

30 Seat Dornier Jet 

Round-Trips Per Week 

Total Departure Per Year 97% 

24 

2,421 

Aircraft 

Available Seats Per Departure 

Totle Seats Year 

Dornier 328 Jet 

30 

72633.6 

Block Time 

Minutes Per Departure 

Total Block Time Per Year 

45 

1,816 

Revenue 

Passengers 

Average Fare 

Passenger Revenue 

RPMS 

Passengers 

Stage Length 

ASMS 

Scheduled Departures 

Completed Departures 

Stage Length 

Seats Available 

65,000 

$110 

$7,150,000 

55000 

340 

22,100,000 

2496 

2421 

340 

32 

25,518,605 

Passenger Revenue 

Outher Revenue @ .03 of pax rev. % 

Total Revenue 

$7,150,000 

S214.500 

$7,364,500 

Direct Operating Expenses 

Indirect Expenses 

Aircraft Purchase 

Preparation Expenses 

Initial Expenses 

Reservation and Marketing 

Total Expenses 

BIk Hrs 

Per Pas 

$3,100 

S6 

$5,629,104 

$1,434,678 

$2,500,000 

$685,776 

$350,000 

$390.000 

$10,989,558 

Operating Loss 

5% Profit 

Subsidy Required 

$3,625,058 

$549,478 

$4,174,536 

Load Factor 

NOTE: This proi»sal covers the total expense required to initiate scheduled air service, purchase the aircraft and be debt 

free and subsidy free at the end of 2 years operations. Aircraft commited to your service only. At no extra expense 

^ the flights can make a ORD connection v.nth a stop at St. Clare M N enroute to MPS. Will have more than one 

interline code share airline. Can be fully EAS operational with in 90 days or less after funding completed. 

0.89 

XXXXXXX 
Sovereign Air Inc 

Porposal t*2 

12-Oct-l l 

International Falls-Chisholm/Hibbing 24 Round Trips Per Week 

30 Seat Jetstream 41 Turboprop Aircraft 

Round-Trips Per Week 

Total Departure Per Year 97% 

24 

2,421 

Aircraft 

Available Seats Per Departure 

Totle Seats Year 

Block Time 

Minutes Per Departure 

Total Block Time Per Year 

Jetstream 41 

30 

72633.6 

55 

2,219 

Revenue 

Passengers 

Average Fare 

Passenger Revenue 

RPMS 

Passengers 

Stage Length 

ASMS 

Scheduled Departures 

Completed Departures 

Stage Length 

Seats Available 

65,000 

SllO 

$7,150,000 

65000 

340 

22,100,000 

2496 

2421 

340 

33 

25,518,605 

Passenger Revenue 

Outher Revenue (B) .03 of pax rev. % 

Total Revenue 

Direct Operating Expenses 

Indirect Expenses 

Aircraft Purchase 

Preparation Expenses 

Initial Expenses 

Reservation and Marketing 

Total Expenses 

BIk Hrs 

Per Pas 

$2,875 

S6 

$7,150,000 

$214,500 

$7,364,500 

$6,380,660 

51,434,678 

51,300,000 

$685,776 

$350,000 

$390.000 

$10,541,114 

Operating Loss 

5% Profit 

Subsidy Required 

$3,176,614 

$527,056 

$3,703,670 

Load Factor 

NOTE; This proposal covers the total expense required to initiate scheduled air service, purchase the aircraft and he debt 

free and subsidy free at the end of 2 years operations. Aircraft commited to your service only. At no extra expense 

the flights can make a ORD connection with a stop at St. Clare M N enroute to MPS. Will have more than one 

interline code share airline. Schedule set to meet communities needs. 

Can be fully EAS operational with in 90 days or less after funding completed. 

XXXXXXX 

0.89 
l^j,jj(^-^^ 

Sovereign Air Inc 

Porposal #1 

12-Oct-ll 

Thief River Falls With Stops or Connectiorvs at Either 

International Falls or Chisholm/Hlbbing to Minneapolis 

14 Round Trips Per Week. 30 Seat Jetstream 41 Turboprop Aircraft. 

Round-Trips Per Week 

Total Departure Per Year 97% 

14 

1,412 

Aircraft 

Available Seats Per Departure 

Totle Seats Year 

Jetstream 41 

30 

42369.6 

Block Time 

Minutes Per Departure 

Total Block Time Per Year 

30 

706 

Revenue 

Passengers 

Average Fare 

Passenger Revenue 

RPMS 

Passengers 

Stage Length 

ASMS 

Scheduled Departures 

Completed Departures 

Stage Length 

Seats Available 

5,000 

$135 

$675,000 

5000 

455 

2,275.000 

14S6 

1412 

455 

30 

19,920,774 

Passenger Revenue 

Outher Revenue (S .03 of pax rev. 

Total Revenue 

Direct Operating Expenses 

Indirect Expenses 

Aircraft lease/Purchase 

Preparation Expenses 

Initial Expenses 

Reservation and Marketing 

Total Expenses 

BIk Hrs 

Per Pas 

S2,875 

$6 

$675,000 

$20,250 

$695,250 

$2,030,210 

$234,760 

$24,000 

$6,000 

$13,540 

$30.000 

$2,338,510 

Operating Loss 

5% Profit 

Subsidy Required 

$1,643,260 

$116,926 

$1,760,186 

Load Factor 

NOTE: This proposal covers the total expense required to initiate scheduled air service, purchase the aircraft and be debt 

free and subsidy free at the end of 4 years operations. Aircraft commited to TVF service only. At no extra expense 

the flights can make a ORD connection with a stop at St. Clare MN enroute to MPS. Will have more than one 

interline code share airline. Schedule set to meet communities needs. This aircraft is back up to the INL-HIB-MSP EAS. 

This flight changes aircraft at INL or HIB. Can be fully EAS operational with In 90 days or less after funding completed. 

In order to be EAS free TVF must be tied with INL-NIB-MSP 

0.12 
Sovereign Air Inc 

Porposal Hi 

12-Oct-l l 

Devils Lake-Jamestown to Minneapolis 12 Round Trips Per Week 

30 Seat Dornier Jet 

Round-Trips Per Week 

Total Departure Per Year 97% 

14 

1,412 

Aircraft 

Available Seats Per Departure 

Totle Seats Year 

Dornier 328 Jet 

30 

42369.6 

Block Time 

Minutes Per Departure 

Total Block Time Per Year 

50 

1,177 

Revenue 

Passengers 

Average Fare 

Passenger Revenue 

21,000 

$149 

$3,129,000 

RPMS 

Passengers 

Stage Length 

ASMS 

Scheduled Departures 

Completed Departures 

Stage Length 

Seats Available 

21000 

320 

6,720,000 

1456 

1412 

320 

30 

14,010,214 

Passenger Revenue 

Outher Revenue @ .03 of pax rev. % 

Total Revenue 

Direct Operating Expenses 

Indirect Expenses 

Aircraft Purchase 

Preparation Expenses 

Initial Expenses 

Reservation and Marketing 

Total Expenses 

BIk Hrs 

Per Pas 

$3,100 

S5 

$3,129,000 

$93,870 

$3,222,870 

$3,648,493 

$434,678 

$2,250,000 

S68S,776 

$350,000 

5105.000 

$7,473,947 

Operating Loss 

S% Profit 

Subsidy Required 

Subsidy Required if INL-HIB-MSP proposal ti l is selected required subsidy is 

$4,251,077 

5373,697 

$4,624,775 

$3,456,750 

Load Factor 

NOTE: This proposal covers the total expense required to initiate scheduled air service, purchase the aircraft and be debt 

free and subsidy free at the end of 2 years operations. Aircraft commited to your service only. At no extra expense 

the flights can make a ORD conneaion with a stop at St. Clare MN enroute to MPS. Will have more than one 

interline code share airline. Can l>e fully EAS operational with in 90 days or less after funding completed. 

0.50 

XXXXXXX 
Sovereign Air Inc 

Porposal S2 

12-Oct-n 

Devils Lake-Jamestown to Minneapolis 12 Round Trips Per Week 

30 Seat Jetstream 41 

Round-Trips Per Week 

Total Departure Per Year 97% 

14 

1,412 

Aircraft 

Available Seats Per Departure 

Totle Seats Year 

Jeistream 41 

30 

42369.5 

Block Time 

Minutes Per Departure 

Total Block Time Per Year 

75 

1,765 

Revenue 

Passengers 

Average Fare 

Passenger Revenue 

21,000 

$149 

$3,129,000 

RPMS 

Passengers 

Stage Length 

ASMS 

Scheduled Departures 

Completed Departures 

Stage Length 

Seats Available 

21000 

320 

6,720,000 

1456 

1412 

320 

30 

14,010,214 

Passenger Revenue 

Outher Revenue @ .03 of pax rev. % 

Total Revenue 

$3,129,000 

S93.870 

$3,222,870 

Direct Operating Expenses 

Indirect Expenses 

Aircraft Purchase 

Preparation Expenses 

Initial Expenses 

Reservation and Marketing 

Total Expenses 

BIk Hrs 

Per Pas 

$2,340 

S5 

$4,131,036 

S434.678 

$1,235,000 

$285,776 

$350,000 

SlOS.OOO 

$6,541,490 

Operating Loss 

S% Profit 

Subsidy Required 

Subsidy Required if INL-HIB-MSP proposal »2 is selected required subsidy is 

$3,318,620 

$327,075 

$3,645,695 

$3,256,750 

Load Factor 

NOTE: This proposal covers the total expense required to initiate scheduled air service, purchase the aircraft and be debt 

free and subsidy free at the end of 2 years operations. Aircraft commited to your service only. At no extra expense 

the flights can make a ORD connection with a stop at St. Clare M N enroute to MPS. Will have more than one 

interline code share airline. Can be fully EAS operational v/ith in 90 days or less after funding completed. 

0.50 
Sovereign Air Inc 

Porposal #1 

12-Oct-l l 

Fort Dodge-Mason City to Minneapolis 19 Round Trips Per Week 

30 Seat Dornier Jet 

Round-Trips Per Week 

Total Departure Per Year 97% 

19 

1,917 

Aircraft 

Available Seats Per Departure 

Totle Seats Year 

Dornier 328 Jet 

30 

57501.6 

Block Time 

Minutes Per Departure 

Total Block Time Per Year 

30 

958 

Revenue 

Passengers 

Average Fare 

Passenger Revenue 

50,000 

599 

$4,950,000 

RPMS 

Passengers 

Stage Length 

ASMS 

Scheduled Departures 

Completed Departures 

Stage Length 

Seats Available 

50000 

156 

7,800,000 

1976 

1917 

157 

30 

9,328,676 

Passenger Revenue 

Outher Revenue (S) .03 of pax rev. % 

Total Revenue 

$4,950,000 

$148.500 

$5,098,500 

Direct Operating Expenses 

Indirect Expenses 

Aircraft Purchase 

Preparation Expenses 

Initial Expenses 

Reservation and Marketing 

Total Expenses 

BIk Hrs 

Per Pas 

$3,600 

S5 

$3,450,096 

$434,678 

$2,500,000 . 

$885,776 

$1,179,300 

S2S0.000 

$8,699,850 

Operating Loss 

5% Profit 

53,601,350 

$434,993 

Subsidy Required FOD $2,843,546 

SubsiSy Required if INL-HIB-MSP proposal #1 is selected required subsidy is 

MCW $1,032,864 $4,035,343 

$3,455,123 

Load Factor 

NOTE: This proposal covers the total expense required to initiate scheduled air service, purchase the aircraft and be debt 

free and subsidy free at the end of 2 years operations. Aircraft commited to your service only. At no extra expense 

the flights can make a ORD connection with a stop at St. Clare M N enroute to MPS. Will have more than one 

interline code share airline. Can be fully operational with in 90 days or less after funding completed 

0.87 
XXXXXXX 

Sovereign Air Inc 

Porposal HI 

12-Oct-l l 

Fort Dodge-Mason City to Minneapolis 19 Round Trips Per Week 

30 Seat Jetstream 41 

Round-Trips Per Week 

Total Departure Per Year 97% 

19 

1.917 

Aircraft 

Available Seats Per Departure 

Totle Seats Year 

Jetstream 41 

30 

57501.6 

Block Time 

Minutes Per Departure 

Total Block Time Per Year 

30 

958 

Revenue 

Passengers 

Average Fare 

Passenger Revenue 

50,000 

$99 

$4,9S0,000 

RPMS 

Passengers 

Stage Length 

ASMS 

Scheduled Departures 

Completed Departures 

Stage Length 

Seats Available 

50000 

156 

7,800,000 

1976 

1917 

157 

30 

9,328,676 

Passenger Revenue 

Outher Revenue @ .03 of pax rev. % 

Total Revenue 

$4,950,000 

S148.500 

$5,098,500 

Direct Operating Expenses 

Indirect Expenses 

Aircraft Purchase 

Preparation Expenses 

Initial Expenses 

Reservation and Marketing 

Total Expenses 

BIk Hrs 

Per Pas 

$3,000 

$5 

$2,875,080 

$1,230,080 

$1,500,000 

$1,003,784 

$1,179,300 

$250.000 

$8,038,244 

Operating Loss 

5% Profit 

52,939,744 

$401,912 

Subsidy Required FOD $2,308,792 

Subsidy Required if INL-HIB-MSP proposal HI is selected required subsidy is 

MCW $1,032,864 $3,341,656 

$3,155,123 

Load Enactor 

NOTE: This proposal covers the total expense required to initiate scheduled air service, purchase the aircraft and be debt 

free and subsidy free at the end of 2 years operations. Aircraft commited to your service only. At no extra expense 

the flights can make a ORD connection with a stop at St. Clare M N enroute to MPS. Will have more than one 

interline code share airline. Can be fully EAS operational with in 90 days or less after funding completed. 

0.87 

7 

/ 
H i U-* ^'-^A eo-"^*^ 

Sovereign Air Inc 

Porposal 01 

12-Oct-ll 

Iron Mountain-Escanaba to Chicago (ORD) 19 Round Trips Per Week 

30 Seat Domier Jet 

Round-Trips Per Week 

Total Departure Per Year 9796 

19 

1,917 

Aircraft 

Available Seats Per Departure 

Totle Seats Year 

Block Time 

Minutes Per Departure 

Total Block Time Per Year 

Domier 328 Jet 

30 

57501.6 

50 

1,597 

Revenue 

Passengers 

Average Fare 

Passenger Revenue 

RPMS 

Passengers 

Stage Length 

ASMS 

Scheduled Departures 

Completed Departures 

Stage Length 

Seats Available 

50,000 

$99 

$4,950,000 

50000 

273 

13,650,000 

1976 

1917 

273 

30 

16,221,201 

Passenger Revenue 

Outher Revenue @ .03 of pax rev. % 

Total Revenue 

Direct Operating Expenses 

Indirect Expenses 

Aircraft Purchase 

Preparation Expenses 

Initial Expenses 

Reservation and Marketing 

Total Expenses 

BIk Hrs 

Per Pas 

$3,300 

$5 

$4,950,000 

$148,500 

$5,098,500 

$5,270,980 

$434,678 

$2,000,000 

$385,776 

$179,300 

$250,000 

$8,520,734 

Operating Loss 

5% Profit 

Subsidy Required IMT $1,924,135 ESC $1,924,135 

$3,422,234 

$426,037 

$3,848,271 

Load factor 

NOTE: This proposal covers Che total expense required to initiate scheduled air service, purchase the aircraft and be debt 

free and subsidy free at ttie end of 2 years operations. Aircraft commited to your service only. 

Will have more than one interline code share airline. Can be fully operational with in 90 days or less after 

funding completed. 

0.87 
^riZ^I 1^U:JCJ2/CWF-« 

XXXXXXX 

Sovereign Air Inc 

Porposal #2 

12-Oct-ll 

Iron Mountain-Escanaba to Chicago (ORD) 19 Round Trips Per Week 

30 Seat Jetstream 41 

Round-Trips Per Week 

Total Departure Per Year 97% 

19 

1,917 

Aircraft 

Available Seats Per Departure 

Totle Seats Year 

Jetstream 41 

30 

57501.6 

Block Time 

Minutes Per Departure 

Total Block Time Per Year 

55 

1,757 

Revenue 

Passengers 

Average Fare 

Passenger Revenue 

50,000 

S99 

54,950,000 

RPMS 

Passengers 

Stage Length 

ASMS 

Schedijied Departures 

Completed Departures 

Stage Length 

Seats Available 

50000 

273 

13,650,000 

• 1976 

1917 

273 

30 

16,221,201 

Passenger Revenue 

Outher Revenue @) .03 of pax rev. % 

Total Revenue 

Direct Operating Expenses 

Indirect Expenses 

Aircraft Purchase 

Preparation Expenses 

Initial Expenses 

Reservation and Marlteting 

Total Expenses 

BIk Hrs 

Per Pas 

$2,250 

$5 

$4,950,000 

$148.500 

$5,098,500 

$3,953,235 

$543,000 

$1,250,000 

$563,900 • 

$548,907 . 

$250.000 

$7,109,042 

Operating Loss 

5% Profit •] 

Subsidy Required IMT $1,182,997 ESC $1,182,997 

$2,010,542 

$355,452 

S2,365;994 

Load Factor ' ' 

NOTE: This proposal covers the total expense required to initiate scheduled air service, purchase the aircraft and be debt 

free and subsidy free at the end of 2 years operations. Aircraft commited to your service only. 

Will have more than one interline code share airline. Can be fully operational with in 90 days or less after 

funding completed. 

0.87 

X