BEFORE THE

UNITED STATES DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Essential Air Service at

BECKLEY, WEST VIRGINIA

JAMESTOWN, NEW YORK

Under 49 U.S.C. 941731 et seq.

DOT-OST-1997-2761

DOT-OST-2003-14950

CITY LINK AIR. INC. (CLA) PROPOSAL TO PROVIDE SUBSIDIZED AIR SERVICE

AT BECKLEY <BKW). WEST VIRGINIA AND JAMESTOWN (JHW). NY

Please address all correspondence to: City Link Air, Inc. it:

Telephone: (866) 435-9252 Attn: Joshua G. Newsteder, CEO .

Fax: (888) 259-6008 11890 Hidden Hills Drive'

E-Mail: josh@citylinkair.com Jacksonville, FL 32225-1656 City Link Air

@ Redefining Air 1h:Ivei

CLA submits this proposal (140527-7) to provide subsidized air service from Pennsylvania's Pittsburgh

International Airport (PIT) to the communities of Beckley (BKW), West Virginia and Jamestown (JHW),

New York.

In compliance with Public Law 100-223, CLA proposes to operate these flights using pressurized, multiengine, turbine powered aircraft piloted by two fully qualified pilots. Aircraft will be equipped, and pilots

will be trained to fly to the lowest instrument approach minimums at every airport served. This allows on

time arrivals at the lowest, legal weather limits for any runway CLA can use.

With an average of 160 daily departures, PIT is the ideal hub to connect Beckley passengers to 37 non

stops and hundreds of connecting opportunities worldwide. The convenience and proximity of non-stop

flights to Beckley enable CLA to meet connecting schedules without the problems endemic to other,

super-saturated hubs. Specifically, there are no restrictions on slots and gates. Flow control into

Pittsburgh is rarely a problem.

Planned non-stop service from: BKW to PIT takes 71 minutes, JHW to PIT 52 minutes

This proposed service provides the best opportunity to quickly fly to/from PIT while simultaneously

refining robust connection opportunities.

Working closely with the Allegheny County Airport Authority (ACAA), CLA has arranged gate services

closest to the center of all four concourses (gates D-77 or C-52). This provides the shortest walking time

for passengers to all connecting flights while minimizing bag transfer times.

Competitively priced, short trips will realize a more leisurely and un-rushed experience, ultimately

resulting in lower overall costs and shorter travel times in most markets.

140527-7 CLA EAS PIT BKW JHW Page 1
Customer Advocacy

Each EAS community served will have a dedicated CLA station manager whose primary job after safety

will be customer advocacy. It is imperative that our single most important touch point with passengers is

a full time employee with their best interests in mind.

This employee will be a locally recommended, community minded advocate that continuously engages all

civic interests for CLA. This station manager will ensure CLA always provides the best possible air

service.

Service Maps for this Proposal

,.

(PIT)PIllS h

•

Although CLA's planned aircraft are not equipped with an onboard lavatory it should be noted that the

longest planned flight for this market is 71 minutes. CLA will initially operate under FAA scheduled

commuter rules (Part 135) as it continues to pursue full, Part 121 certification. During this period CLA

will use nine seat configured Beech 200/300s.

Other Destinations

CLA is currently working with the port authorities of Charlotte Douglas International Airport (CLT) and

Washington's Dulles International Airport (lAD) to determine costs and availability of gates and services

at these hubs. CLA Management will keep each interested community up-to-date on the development of

service to these airports.

Ticket Prices

Prices shown are the maximum price - As a stand alone bid CLA has to ensure it can responsibly provide

the proposed level of service if awarded these two EAS contracts. Additional EAS contract awards will

achieve economies of scale. CLA will pass on these multi-contract savings to reduce ticket prices.

140527-7 CLA EAS PITBKW JHW Page 2
Essential Air Service

Planned Aircraft for FAA 121 Operations

8eechcra(t 1900D - Two Pilots

19 Seat, Two £ngines, Pressurized Turboprop

Proposal Speed: 230 mph (200 Knots)

Top speed: 328 mph (285 Knots)

Max. Altitude: 25,000 Feet

~------=-=-~----=-~--~-------~---~-----------~--------=~--~lCabin Interior

----------. ~

~~

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140527-7 CLA EAS PIT BKW JHW Page 3
Essentia' Air Service

'nitia' Aircraft for FAA '35 Operations

Beechcraft 200/300 - Two Pilots

9 Seat, Two Engines, Pressurized Turboprop

Proposal Speed: 230 mph (200 Knots)

Top speed: 328 mph (28S Knots)

Max. Altitude: 31,000 feet

r

I Beeehcraft's 200 and 300 both share the

same cabin size. customer experience will be

I the same. Whether fiying the 200/300 or

I Beech 1900, performance is similar.

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Cabin Interior

With nine seats every passenger enjoys 33 inches of

legroom (2 inches more than a coach seat on larger jets).

Every passenger is afforded 112 pounds of luggage.

Exterior Luggage

60 cubic feet of underbelly storage accommodates TSA

checked bags. This easily carries up to six golf bags.

1"

i,

CLA intends to provide this service as an FAA part 121

airline. Its current certification (FAA Part 135) prohibits

using the 19 seat Beech 1900. Therefore, CLA will use

Beechcraft 200/300s configured with nine seats

(pictured here) until full FAA 121 certification is

achieved.

Once 121 certification is achieved, CLA will match each

market with the most efficient aircraft.

CLA will alwavs fly these markets with two pilots.

---~~

140527.7 eLA EAS PIT BKW JHW Page 4
Schedules

CLA's schedules will be optimized to achieve the best connection opportunities in Pittsburgh. Planned

weekday roundtrips are shown. One day of similar roundtrips will also be offered over the weekend,

usually split between Saturday morning and Sunday evening.

Planned typical Monday-Saturday / Sunday Flight Schedule for BKW

From To Dep. Arr. Stops Price

Beckley Pittsburgh 5:45AM 6:56AM Non-Stop $100.00

Beckley Pittsburgh 1I:52AM 1:04 PM Non-Stop "

Beckley Pittsburgh 6:00PM 7:12 PM Non-Stop "

From To Dep. Arr. Stops

Pittsburgh Beckley 10:11 AM 11:22AM Non-Stop $100.00

Pittsburgh Beckley 4:19 PM 5:30 PM Non-Stop "

Pittsburgh Beckley 10:27PM 11:38 PM Non-Stop "

From To Dep. Arr. Stops Price

Jamestown Pittsburgh 8:48AM 9:41AM Non-Stop $75.00

Jamestown Pittsburgh 2:56 PM 3:49PM Non-Stop "

Jamestown Pittsburgh 9:04PM 9:57 PM Non-Stop "

From To Dep. Arr. Stops

Pittsburgh Jamestown 7:26AM 8:18AM Non-Stop $75.00

Pittsburgh Jamestown 1:34 PM 2:26PM Non-Stop "

Pittsburgh Jamestown 7:42PM 8:34PM Non-Stop "

Schedules shown are planned and may change to better serve the community/maximize best connections.

CLA will work with its local station manager/customer advocate and each community to determine the

best schedules that fit into the economics of our business model.

Making Connections

CLA is aggressively pursuing interline and codeshare agreements and is confident that one or more will

be in place with the dominant carrier(s) when service begins. It is our intention to provide the customer

with a seamless, transparent travel experience to and through Pittsburgh.

Meeting early morning and late evening connection banks upholds the true spirit of the EAS program.

Our schedule identifies the maximum number of one-stop travel options from BKW and JHW while

providing the communities with safe, reliable, and reasonably priced service that fits within the

economics of our model.

Dispatch Reliability

The America made Beechcraft each have an excellent record of dispatch reliability. The ubiquity of parts

and maintenance allow for a planned 98% dispatch reliability.

CLA will have a pre-positioned, ready spare aircraft located at its maintenance base in Clarksburg, West

Virginia. Scheduled travel time from Clarksburg to BKW is 30 minutes and 53 minutes to JHw.

Depending on EAS contracts awarded this "banked" aircraft may be pre-positioned in Pittsburgh.

Five full crews per aircraft will allow CLA to meet all FAA mandates for schedules, rest, training and

standby. No crews will ever exceed schedule restrictions (FAR part 117, etc.)

No pilots will ever fly a late night flight prior to an early morning flight.

140527-7 CLAEAS PIT BKW JHW Page 5
Annual Financial & Operational Metric Summary

Aircraft Type

Departures

Block Hours

a & D Passengers

Average Load Factor

Average One Way Fare.

Statute Miles Flown

Revenue Passenger Miles (000)

Available Seat Miles (000)

Annual Revenue

Gross Ticket Revenue

ePE & Fees (PFC, 911, FET, & SF)

Net Ticket Revcnue

Annual Expenses.

Distribution (GDS, OTA, CC)

Fuel & Consumables

Personnel

Maint. & Maint. Reserves

Station Fees & Rents

Aircraft Rents

Marketing

Other Fixed and Variable Overhead

Total Annual Expenses

Profit (loss)

5% Margin on Cost

Required EAS Subsidy

Required EAS Subsidy per Pax I

Respectfully Submitted: May 27, 2014

Joshua G. Newsteder

Chief Executive Officer

City Link Air, Inc.

Beechcraft 200/300

3,756

3,880

15,024

44% (-4 Seats)

$ 87.50

633,681

2,535

5,703

$ 1,314,600

$ 484,712

$ . 829,888

$ 111,225

$ 1,702,174

$ 836,775

$ 1,306,079

$ 383,057

$ 295,282

$ 160,000

$ 225,000

$ 5,020,193

$ (4,190,305)

$ 251,010

$ 4,441,314

$ 296

IAlthough this value exceeds the maximum of $200 per historic enplaned passenger please note that the required EAS

subsidy of$4,441 ,314 is $1 J ,452 less than current subsidies to these communities. If enplaned passengers were to

increase by just two, the required subsidy would fall under the $200 limit. CLA management believes that reliable and

competitively priced service cim achieve these enplanements. .

140527-7 CLA EAS PIT BKW JHW Page 6