••R-\RTMENTOF 

. "'iSPORWIOM 

BEFORE THE ••': ['PcRAliONS 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. '' :'.H-~ ^ 'SI Q-

) 

Essential Air Service at ) 

) 

KINGMAN, ARIZONA ) OST-1996-1899 

PAGE, ARIZONA ) OST-1997-2694 ^ 

PRESCOTT, ARIZONA ) OST-1996-1899^ 

SHOW LOW, ARIZONA ) OST-1998-4409 ^ 

CARLSBAD, NEW MEXICO ) OST-2002-12802 ^ 

CLOVIS, NEW MEXICO ) OST-1996-1902 -

SILVER CITY, NEW MEXICO ) OST-1996-1903^ 

) 

Under 49 U.S.C. §41731 etseq. ) 

GULFSTREAM INTERNATIONAL AIRLINES PROPOSAL 

TO PROVIDE SUBSIDIZED AIR SERICE AT 

KINGMAN. ARIZONA; PAGE. ARIZONA; PRESCOTT. ARIZONA; SHOW 

LOW. ARIZONA; CARLSBAD. NEW MEXICO; CLOVIS. NEW MEXICO AND 

SILVER CITY. NEW MEXICO 

Correspondence with regard to this document should be addressed to: 

Mickey Bowman 

Vice President of Corporate Development 

Gulfstream International Airlines 

3201 Griffin Road, 4^^ 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 proposals to provide subsidized air 

service to the cites of Kingman, AZ; Page, AZ; Prescott, AZ; Show Low, AZ; Carlsbad, NM; Clovis, NM 

and Silver City, NM. Gulfstream hereby offers two options for service. 

Under Option 1, Gulfstream proposes to operate flights under its independent Gulfstream International 

Airlines identity to the hub airports of Phoenix, Arizona and Albuquerque, NM. Gulfstream has 

maintained interline ticketing and baggage agreements with most legacy carriers and will schedule its 

flights to maximize connecting opportunities. Gulfstream contends that reasonable local fares will 

stimulate demand and the variety of destinations available from both Albuquerque and Phoenix will allow 

these markets to grow. Gulfstream flights will be available for sale through all major reservation portals 

and we will maintain our own web based booking site as well as a reservation call center. 
In compliance with Public Law 100-223, Gulfstream proposes to operate these flights using Beech 1900D 

turboprops that are pressurized and accommodate 19 passengers. The 1900D features stand up headroom 

with ample cargo capacity to accommodate even bulky military duffle bags. 

One of the hallmarks of the Gulfstream operation is our ability to provide safe and reliable transportation. 

Toward this end, Gulfstream will establish a regional maintenance base in the Southwest region in support 

of these flights. This move will add roughly 20 technical support jobs to the local economy. Additionally 

this proposal includes an aircraft that would be a dedicated spare. With this spare located in Phoenix, we 

would have great flexibility in responding to any operational challenges and assures these communities 

receive the level of operational performance they deserve. Gulfstream is committed to building its 

presence in the southwest and the establishment of these basic bits of infrastructure will provide a solid and 

reliable base for the fiiture. 

Service Option 1 All or nothing proposal to all seven aforementioned cities consisting of: 

24 Weekly frequencies between Kingman, AZ and Phoenix, AZ (all one-stop via Prescott, AZ) 

36 Weekly frequencies between Page, AZ and Phoenix, AZ 

36 Weekly frequencies between Prescott, AZ and Phoenix, AZ 

36 Weekly frequencies between Show Low, AZ and Phoenix, AZ 

24 Weekly frequencies between Carlsbad, NM and Albuquerque, NM 

36 Weekly frequencies between Clovis, NM and Albuquerque, NM 

12 Weekly frequencies between Silver City, NM and Albuquerque, NM 

12 Weekly frequencies between Silver City, NM and Phoenix, AZ 

Gulfstream proposes to operate these flights under it own independent marketing identity. The timing of 

these flights will be optimized for connections to and from other airline flights at both Albuquerque and 

Phoenix Gulfstream proposes to encourage connecting traffic by using a simplified local fee structure 

whereby passengers connecting to or from other airline flights would pay only the low, local fare in 

addition to the low fares afready a feature at both Albuquerque and Phoenix. The basic service pattern 

would consist of three roundtrips each service day from Page, Prescott and Show Low to Phoenix as well as 

two roundtrips each service day from Kingman to Phoenix operating one-stop via Prescott. Gulfstream 

feels that access to the state capitol in Phoenix v^all provide the stimulus needed to increase Kingman 

ridership to the point that service viability will no longer be an issue. 

For the New Mexico cities the basic service pattern would consist of two roundtrips to Albuquerque each 

service day for Carlsbad and three roundtrips each service day for Clovis to Albuquerque. Silver City is 

unique in that a single roundtrip would operate each service day to Albuquerque and a single roundtrip 

would also operate each service day to Phoenix. Silver City functions as a logistical bridge that ties the 

Phoenix and Albuquerque operations together. The city benefits in that it will have the ability to offer two 

distinct destinations each service day. 

Service Option 1 

FROM 

STA 

KINGMAN 

KINGMAN 

KINGMAN 

PHOENIX 

PHOENIX 

PHOENIX 

Gulfstream Airlines 

Sample Flight Schedule 

TO 

STA 

PHOENIX 

PHOENIX 

PHOENIX 

KINGMAN 

KINGMAN 

KINGMAN 

DEP 

TIME 

0610 

1045 

1715 

0900 

1530 

1935 

ARR 

TIME 

0740 

1215 

1845 

1030 

1700 

2205 

FLT 

NUM 

2601 

2602 

2603 

2602 

2604 

2606 

EQUIP FREQ STOP 

BEl 

BEl 

BEl 

BEl 

BEl 

BEl 

X67 1 

67 Only 1 

X67 1 

6 Only 1 

X67 1 

X6 1 
FROM 

STA 

TO 

STA 

DEP ARR FLT EQUIP FREQ STOP 

TIME TIME NUM 

PAGE 

PAGE 

PAGE 

PHOENIX 

PHOENIX 

PHOENIX 

PHOENIX 

PHOENIX 0630 0745 2501 BEl 

PHOENIX 1200 1315 2502 BEl 

PHOENIX 1515 1630 2503 BEl 

PAGE 1030 1145 2502 BEl 

PAGE 1345 1500 2503 BEl 

PAGE 1530 1645 2503 BEl 

PAGE 1930 2045 2504 BEl 

X7 

X6 

X6 

X67 

X6 

6 Only 

X6 

0 

0 

0 

0 

0 

0 

0 

FROM 

STA 

TO 

STA 

DEP ARR FLT EQUIP FREQ STOP 

TIME TIME NUM 

PRESCOTT 

PRESCOTT 

PRESCOTT 

PHOENIX 

PHOENIX 

PHOENIX 

PHOENIX 0700 0740 2601 BEl 

PHOENIX 1135 1215 2602 BEl 

PHOENIX 1805 1845 2603 BEl 

PRESCOTT 0900 0940 2602 BEl 

PRESCOTT 1530 1610 2604 BEl 

PRESCOTT 1935 2015 2606 BEl 

X67 

Daily 

X6 

X7 

X6 

X6 

0 

0 

0 

0 

0 

0 

FROM 

STA 

TO 

STA 

DEP ARR FLT EQUIP FREQ STOP 

TIME TIME NUM 

SHOW LOW 

SHOW LOW 

SHOW LOW 

PHOENIX 0915 1000 2702 BEl X67 0 

PHOENIX 1400 1445 2704 BEl Daily 0 

PHOENIX 1800 1845 2706 BEl X6 0 

PHOENIX 

PHOENIX 

PHOENIX 

SHOW LOW 0815 0900 2701 BEl X67 0 

SHOW LOW 1300 1345 2703 BEl Daily 0 

SHOW LOW 1700 1745 2705 BEl X6 0 

FROM 

STA 

TO 

STA 

DEP ARR FLT EQUIP FREQ STOP 

TIME TIME NUM 

CARLSBAD ALBUQUERQUE 

CARLSBAD ALBUQUERQUE 

ALBUQUERQUE 

ALBUQUERQUE 

CARLSBAD 

CARLSBAD 

0600 

1230 

1100 

1730 

0715 

1345 

1215 

1845 

2801 

2803 

2802 

2804 

BEl 

BEl 

BEl 

BEl 

X7 

X6 

X7 

X6 

0 

0 

0 

0 

FROM 

STA 

TO 

STA 

DEP ARR FLT EQUIP FREQ STOP 

TIME TIME NUM 

CLOVIS 

CLOVIS 

CLOVIS 

ALBUQUERQUE 

ALBUQUERQUE 

ALBUQUERQUE 

0600 

0925 

1600 

0705 

1030 

1705 

2901 

2903 

2905 

BEl 

BEl 

BEl 

X7 

X7 

X6 

0 

0 

0 
ALBUQUERQUE CLOVIS 

ALBUQUERQUE CLOVIS 

ALBUQUERQUE CLOVIS 

0800 

1430 

1725 

0905 

1535 

1830 

2802 

2804 

2804 

BEl 

BEl 

BEl 

X7 

X6 

X6 

0 

0 

0 

FROM 

STA 

TO 

STA 

DEP ARR FLT EQUIP FREQ STOP 

TIME TIME NUM 

SILVER CITY ALBUQUERQUE 1600 1655 2907 BEl X6 0 

ALBUQUERQUE SILVER CITY 0735 0830 2906 BEl X7 0 

FROM 

STA 

SILVER CITY 

PHOENIX 

TO 

STA 

DEP ARR FLT EQUIP FREQ STOP 

TIME TIME NUM 

PHOENIX 0845 1000 2906 BEl X7 0 

SILVER CITY 1430 1545 2907 BEl X6 0 

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

Essential Air Service Proposal To Provide Servcie a(: 

Kingman, Page, Prescott, Show Low, Arizona and 

Carlsbad, Clovis and Silver City, New Mexico 

Option 1 

Hub Served 

Number of Roundtrips per Service 

Day 

Operating Statistics 

Assumed Completion % 

Annual Adjusted Block Hours 

Annual Adjusted Departures 

Annual Adjusted ASMs 

Annua! RPMs 

Projected Load Factor 

Option 1 Option 1 

Prescott 

Phoenii 

3 

Non-Stop 

(I8rt/week) 

98% 

1,226.40 

1,839.61 

3,040,867 

1,367,683 

45.0% 

Kingman 

Phoenix 

2 

One Stop 

Via PRC 

(12rt/weck) 

98% 

715.40 

1,226.40 

2,236,960 

307,247 

13.7% 

Pa£e 

Phoenix 

3 

Non-stop 

(18rt/wcck) 

98% 

2,299.51 

1,839.61 

8,493,456 

2,890,242 

34.0% 

Option 1 

Show Low 

Phoenix 

3 

Non-Stop 

(18rt/weck) 

98% 

1,379.70 

1,839.61 

4,508,872 

1,224,231 

27.2% 

Option I 

Carlsbad 

Albuquerque 

2 

Non-Stop 

(12rt/wcck) 

98% 

0.98 

1.226.40 

5.359,383 

1,411,004 

26.3% 

Revenue Projections 

Enplaned Passengers 

Mileage (Average as Operated) 

Average Fare 

Passenger Revenue 

12,520 

87 

$ 

46.25 

S 

579,050 

3,200 

96 

$ 

91.58 

293,085 

11.894 

243 

S 

91.58 

9,490 

129 

S 

46.25 

S 

438,920 

6,135 

230 

S 

91,58 

561,794 

Expense Proieetions 

Flight Operations 

Ownership 

Maintenance 

Reservations, Stations & 

Administration 

Fuel 

Marketing 

Total Annual Expenses 

5186,591 

$148,135 

S371,690 

SI,049,579 

S515,089 

$6,000 

$108,845 

$82,461 

$247,794 

$140,152 

5300,469 

56.000 

$2,277,085 $885,720 

5349,859 

$265,052 

$892,057 

$919,577 

5965,793 

$6,000 

$3,398,337 

5209,915 

5152,257 

$468,330 

$799,498 

$579,476 

56,000 

$2,215,476 

$217,690 

$197,188 

$545,146 

5634.054 

5600,938 

$6,000 

52,201,015 

Projected Profit / (Loss) 

Profit Element 

($1,698,035) ($592,635) 

$113,854 544,286 

($2,309,144) 

5169,917 

($1,776,556) 

$110,774 

($1,639,221) 

SllO.OSl 

Annual Subiidy Required $MI1^S9 $636,921 $W79,060 $1,887,330 $1,749,272 

Subsidy per Departure 

Subsidy per Passenger 

5984.93 

$144.72 

$519.34 

$199.01 

$1,347.60 

5208.43 

51,025.94 

$198.87 

51,426.34 

$285.14 
option 1 Option 1 Option 1 Option 1 

Hub Served 

Numbcrof Roundtrips per Service Day 

Operating Statistics 

Assumed Completion % 

Annual Adjusted Block Hours 

Annual Adjusted Departures 

Annual Adjusted ASMs 

Annual RPMs 

Projected Load Factor 

Clovis 

Albuquerque 

3 

Non-stop 

(18rt/week) 

98% 

1.992.91 

1.839.61 

7.165.262 

872.644 

12.2% 

Silver City 

Albuquerque 

1 

Non-stop 

(6rt/wcck) 

. 98% 

562.10 

613.20 

2.190,356 

294.220 

13.4% 

Silver Cilv 

Phoenix 

1 

Non-Stop 

(6rt/wcck) 

98% 

715.40 

613.20 

2,679.691 

374,348 

14.0% 

System Total 

Southwest 

98'/. 

SS91M 

11,037.63 

35,67434734 

8,741,619.02 

24.5% 

Revenue Proieetions 

Enplaned Passengers 

Mileage (Average as Operated) 

Average Fare 

Passenger Revenue 

4,257 

205 

S 

91.58 

389,816 

1,565 

188 

5 

91.58 

5 

143,315 

1,628 

230 

5 

91.58 

149.047 

50,689 

170 

7149 

$ 3,644,221 

Expense Proieetions 

Flight Operations 

Ownership 

Maintenance 

Reservations, Stations & Administration 

Fuel 

Marketing 

Total Annual Expenses 

Projected Profit / (Loss) 

Profit Element 

Annual Subildy Required 

Subsidy per Departure 

Subsidy per Passenger 

$303,211 

5274,655 

5743,381 

5738,531 

5837,020 

$6,000 

52,902,798 

(52,512,982) 

5145,140 

$2,658,122 

$1,444.94 

$624.44 

585,521 

577,467 

5198,235 

5275,346 

$236,083 

53.000 

5875,651 

(5732,336) 

543,783 

$776,119 

51,265.68 

5495.92 

5108.845 

598,594 

$272,573 

5285,860 

5300,469 

$3,000 

51,069,341 

($920,293) 

553,467 

$973,760 

51.587.99 

5598.28 

$ 1,570,476 

S 1,295308 

$ 3,739a0« 

$ 4342,597 

I 4335,336 

$ 42,000 

$ 15325,423 

$(12,181,202) 

$ 79U71 

$ 12,972,473 

$1,175J0 

$255.92 
Service Option 2 All or nothing proposal for the Four Arizona cities ONLY: 

24 Weekly frequencies between Kingman, AZ and Phoenix, AZ (all one-stop via Prescott, AZ) 

36 Weekly frequencies between Page, AZ and Phoenix, AZ 

36 Weekly frequencies between Prescott, AZ and Phoenix, AZ 

36 Weekly frequencies between Show Low, AZ and Phoenix, AZ 

Gulfstream proposes to operate these flights under it own independent marketing identity. The timing of 

these flights wiH be optimized for connections to and from other airline flights at Phoenix Gulfstream 

proposes to encourage connecting traffic by using a simplified local fee structure whereby passengers 

connecting to or from other airline flights would pay only the low, local fare in addition to the low fares 

already a feature at Phoenix. The basic service pattern would consist of three roundtrips each service day 

from Page, Prescott and Show Low to Phoenix as well as two roundtrips each service day from Kingman to 

Phoenix operating one-stop via Prescott. Gulfstream feels that access to the state capitol in Phoenix will 

provide the stimulus needed to increase Kingman ridership to the point that service viability will no longer 

be an issue. 

Gulfstream Airlines 

Sample Flight Schedule 

Service Option 1 

FROM 

STA 

TO 

STA 

DEP 

TIME 

ARR 

TIME 

FLT 

NUM 

EQUIP FREQ STOP 

KINGMAN 

KINGMAN 

KINGMAN 

PHOENIX 0610 0740 2601 BEl X67 1 

PHOENIX 1045 1215 2602 BEl 67 Only 1 

PHOENIX 1715 1845 2603 BEl X67 1 

PHOENIX 

PHOENIX 

PHOENIX 

KINGMAN 0900 1030 2602 BEl 6 Only 1 

KINGMAN 1530 1700 2604 BEl X67 1 

KINGMAN 1935 2205 2606 BEl X6 1 

FROM 

STA 

TO 

STA 

DEP ARR FLT EQUIP FREQ STOP 

TIME TIME NUM 

PAGE 

PAGE 

PAGE 

PHOENIX 

PHOENIX 

PHOENIX 

PHOENIX 

PHOENIX 0630 0745 2501 BEl 

PHOENIX 1200 1315 2502 BEl 

PHOENIX 1515 1630 2503 BEl 

PAGE 1030 1145 2502 BEl 

PAGE 1345 1500 2503 BEl 

PAGE 1530 1645 2503 BEl 

PAGE 1930 2045 2504 BEl 

X7 

X6 

X6 

X67 

X6 

6 Only 

X6 

0 

0 

0 

0 

0 

0 

0 

FROM 

STA 

TO 

STA 

DEP ARR FLT EQUIP FREQ STOP 

TIME TIME NUM 

PRESCOTT 

PRESCOTT 

PRESCOTT 

PHOENIX 

PHOENIX 

PHOENIX 

PHOENIX 0700 0740 2601 BEl 

PHOENIX 1135 1215 2602 BEl 

PHOENIX 1805 1845 2603 BEl 

PRESCOTT 0900 0940 2602 BEl 

PRESCOTT 1530 1610 2604 BEl 

PRESCOTT 1935 2015 2606 BEl 

X67 

Daily 

X6 

X7 

X6 

X6 

0 

0 

0 

0 

0 

0 
FROM 

STA 

TO 

STA 

DEP ARR FLT EQUIP FREQ STOP 

TIME TIME NUM 

SHOW LOW 

SHOW LOW 

SHOW LOW 

PHOENIX 

PHOENIX 

PHOENIX 

0915 

1400 

1800 

1000 

1445 

1845 

2702 BEl 

2704 BEl 

2706 BEl 

X67 0 

Daily 0 

X6 0 

PHOENIX 

PHOENIX 

PHOENIX 

SHOW LOW 

SHOW LOW 

SHOW LOW 

0815 

1300 

1700 

0900 

1345 

1745 

2701 BEl 

2703 BEl 

2705 BEl 

X67 0 

Daily 0 

X6 0 
GULFSTREAM INTERNATIONAL AIRLINES 

Essential Air Service Proposal To Provide Servcie at: 

Kingman, Page, Prescott and Show Low, Arizona 

Hub Served 

Number of Roundtrips per Service 

Day 

Operating Statistics 

Assumed Completion % 

Annual Adjusted Block Hours 

Annual Adjusted Departures 

Annual Adjusted ASMs 

Annual RPMs 

Projected Load Factor 

Option 2 

Preseott 

Phoenix 

3 

Non-stop 

(ISrt/wcck) 

98% 

1,226.40 

1.839.61 

3,040,867 

1.386.820 

45.6% 

Option 2 

Kingman 

Phoenix 

2 

One stop 

Via PRC 

(12rt/wee 

k) 

98%o 

715.40 

1.226.40 

2,236,960 

328.365 

14.7% 

Option 2 

Page 

Phoenix 

3 

Non-Stop 

(18rt/week) 

98% 

2.299.51 

1,839.61 

8,493,456 

2,890,242 

34.0% 

Option 1 

Glendivc 

Billings 

One Stop 

Via MLS 

(12rt/wee 

k) 

Option 2 

Show Low 

Phoenix 

3 

Non-stop 

(18rt/week 

) 

98% 

1,379.70 

1,839.61 

4,508,872 

1.296.425 

28.8% 

OptioD 2 

Svrtem 

Total 

Phoenix 

98% 

5,621.02 

6,745.22 

18,280,155 

5,901,852 

32.3% 

Revenue Projections 

Enplaned Passengers 

Mileage (Average as Operated) 

Average Fare 

Passenger Revenue 

12,520 

87 

S 

46.25 

S 

579,050 

3.420 

96 

S 

91.58 

S 

313.229 

11.894 

243 

S 

91.58 

S 

1,089,193 

10,050 

129 

S 

46.25 

S 

464,803 

37,884 

143 

S 

64.57 

S 

2,446,275 

Expense Proieetions 

Flight Operations 

Ownership 

Maintenance 

Reservations, Stations & 

Administration 

Fuel 

Marketing 

Total Annual Expenses 

SI 62,532 

5148,135 

S472.279 

$6,000 

S94,810 

S82,461 

5314,853 

$1,069,098 $147,565 

5515,089 $300,469 

$6,000 

$2,373,133 $946,158 

$304,747 

$265,052 

$1,133,469 

5945,084 

5965,793 

$6,000 

$3,620,145 

$182,848 

$152,257 

$595,071 

5831,409 

5579,476 

$6,000 

$2,347,062 

S 

744,938 

S 

647,904 

S 

2,515,672 

S 

2,993,156 

S 

2,360,826 

S 

24,000 

S 

9;j86,498 

Projected Profit / (Loss) 

(51,794,08 (5632,929 

3) ) 

($2,530,952 

) 

($1,882,25 

9) (6,840,222) 

Profit Element 5118,657 547,308 5181,007 5117,353 464,325 

AooBiI Subridy Required »,912,73» S6ma36 $2,711,959 $1,999,612 7,3(M4>47 

Subsidy per Departure 

Subsidy per Passenger 

$1,039.76 

$152.77 

5554.66 

$198.87 

$1,474.21 

5228.01 

$1,086.98 

$198.97 

51,082.92 

sm.8i 
In conclusion, Gulfstream believes this set of proposals will provide these southwestern cities with 

superior air service options. We feel the passengers uall benefit from the fact that both Albuquerque and 

Phoenix are primary logistical and business centers with Phoenix serving as a hub for a major legacy 

carrier. Gulfstream will provide this service on stand up, pressurized airliners and the infrastructure we will 

establish in support of this operation will add jobs to the local economy. Additionally the integrity of 

service that has been a hallmark of the Gulfstream operation will assure both dependability and reliability 

to the traveling public and result in increased ridership and passenger satisfaction. 

Respectftilly Submitted: January 6, 2011 

Mickey Bowman 

Vice President of Corporate Development 

Gulfstream International Airlines