## Before th e Unite d State s Departmen t o fTransportatio n Augus t 16,201 1

Proposa l t o Provid e Essentia l Ai rServic e a t Vernal , Uta h Moab , Uta h Unde r4 9 U.S.C

. 4173 1 e t seq
. Docke t GST-1997-270 6 Docke t OST-1997-282 7

o e n 

# SeaPor t Airlines , Inc

. Proposa l t o Provid e Essentia l Ai rServic e a t Moab , Uta h an d Vernal , Uta h

B yOrde r2011-7-3 , th e Departmen t requeste d proposal s fo rEssentia l Ai rServic e at Verna l an d Moab , Uta h du e o n Augus t 16 , 2011

. Pursuan t t o tha t Order , SeaPor t respectfull ysubmit s thi s timel yproposa l t o provid e subsidize d essentia l ai rservic e t o th e communitie s ofVerna l an d Moab , Uta h fo ra tw o yea rter m beginnin g Januar y1 , 2012

. Correspondenc e regardin g thi s proposa l shoul d b e directe d to ;
Timoth ySiebe r Vic e Presiden t - Strateg y& Corporat e Developmen t

SeaPor t Airlines , Inc

. 750 5 N E Airpor

t Way Portland , O R 9721 8 (971)340-171 6 tsieber(5)seaDortair.co m

# SEA4^PDR T

r A( R L i N E S


# SeaPor t Airlines : Focuse d O n Servin g Smal l Connmunitie s Compan yOvervie w SeaPor t Airlines , Inc

. i s a FA

Acertifie d schedule d airlin e wit h nearl y2 9 year s o fexperienc e i n commercia l aviation

. Ou rcompany' s foundatio n i s buil t o n efficien t an d reliabl e servic e t o rura l communities

. Bot h SeaPor t Airlines , an d ou rsiste rbran d Wing s o fAlaska , currentl yoperat e servic e unde rth e Essentia l Ai rServic e program , a s wel l a s unsubsidize d routes. ^ SeaPort' s approximatel y20 0 professional s operat e a n averag e o f10 0 dail ydeparture s t o 2 0 citie s i n nin e state s wit h a busines s tha t i s focuse d o n providin g servic e t o smalle rcommunities

. Thi s i s i n shar p contras t t o th e strategie s ofth e mega-airlin e brands , whic h n o longe rhav e th e operationa l o reconomi ccapability , o rstrategi cdesire , t o serv e rura l America

. Las t month' s announcemen t byDelt a Ai rLine s t o ceas e servic e at ove rtw o doze n suc h communitie s i s jus t th e lates t suc h example

. SeaPor t delivers Essentia l Ai rServic e t o seve n communities : Excursio n Inlet , Alaska ; Pendleton , Oregon ; Jonesboro , E l Dorado , Hot Springs , an d Harrison , Arkansas ; an d Salina , Kansas

. I n eac h o fthes e cases , afte raward o fth e EAS contract b yU S DOT , w e hav e starte d o n time , o n budget , an d wit h fare s eithe ra t o rbelo wthos e outline d i n ou rproposal

. W e woul d not e tha t thi s stand s i n star k contras t t o s o man yothe rairline s tha t plac e bid s wit h unreasonabl e fare s tha t are neve rrealize d byth e travelin g public , delayth e star t o fservice , o r d o not launc h servic e tha t ha s bee n awarde d b yth e Department

. Aircraft SeaPor t Airline s operate s a flee t ofPilatu s PC-1 2 aircraft configure d fo r9-passengers an d tw o pilots

. Manufacture d i n Switzerland , th e PC-1 2 offers ai rconditioned , pressurize d comfor t wit h eac h sea t bein g bot h a windo wan d aisle. ^ Thi s aircraft operate s at a cruisin g spee d faste rtha n an yothe r9-passenge raircraft currentl yi n th e EA S progra m (i.e. , Cessn a 40 2 an d Cessn a Caravan ) an d comparabl e t o large rturbopro p aircraft , suc h a s th e Embrae r12 0 Brasili a an d Saa b 340

. Th e oversize d carg o doo ro n th e PC-1 2 ensure s pi e o n smalle r"bell ypods " an d win g lockers

. W e believ e thi s woul d b e part i nt yo froo m fo rcustome rbaggag e an d i s a stron g contras t t o othe r9-passenge raircraft tha t rel yo n win g lockers an d bell ypods

. Thi s wil l b e particularl y valuabl e at Moab , wher e biking , hiking , an d climbin g represen t a significan t percentag e o fth e

^ Wing s o fAlask a i s th e premie rairlin e servin g Southeas t Alaska

. Providin g schedule d passenge rservice , fas t freigh t an d charte rservic e betwee n Junea u an d Skagway , Haines , Hoonah , Gustavus , an d weekl yflights t o Excursio n Inlet

. Wing s ofAlask a gre wI n reputatio n an d size , becomin g on e o f th e mos t successfu l regiona l ai r carriers i n Alaska , no wcomprise d ofa flee t of seve n Cessn a 207' s an d Gran d Caravans

. Wing s of Alask a presentl y operate s a n averag e o f3 8 dail yschedule d flight s t o si xSoutheas t citie s i n Alaska

.
^ Give n th e high-altitud e ofth e airport s involve d i n bot h docket s th e requirement s of 4 9 US C Sec

. 4173 2 (6 ) ma y apply , i n whic h cas e SeaPor t I s full ycompliant

. Briefly , thi s paragrap h states : "Servic e provide d bypressurize d aircraft whe n th e servic e i s provide d byaircraft tha t regularl yfl yabov e 8,00 0 fee t i n altitude. "
OST-1997-270 6 & OST-1997-282 7 Pan g I 2 Augus t 16 , 201 1

# SEA+^PDR T

r AI R L I N E S
inboun d touris m market

. Equall ya s important , SeaPor t doe s not charg e fo rth e firs t checke d bag

.

Utilizin g th e PC-12 , SeaPor t i s abl e t o "righ t capacity " i n smal l communitie s suc h a s Moa b an d Verna l wit h a n optima l servic e patter n an d frequencyleve l tha t minimize s traffi cleakage , whic h enable s u s t o offe rreasonabl e far e levels , an d reduce s th e economi cburde n o n th e Department

. Pricin o Mode l Generally , SeaPor

t Airline s employ s a simplifie d pricin g strateg yofal l fare s bein g one-waywit h varyin g level s o fadvanc e purchas e an d capacitycontrols. ^ Th e objectiv e o fthi s strateg yi s t o offe ra communityattractiv e fare s whil e a t th e sam e tim e minimizin g require d level s o fsubsid y fro m th e Departmen t which , i n turn , help s th e communitymaintai n it s eligibilityfo rparticipatio n i n th e Essentia l Ai rServic e program
. Consisten t wit h thi s model , SeaPor t charge s reasonabl e fee s fo rticke t change s ($3 5 v$100 + o n mos t majo rairlines) , pe t travel , an d unaccompanie d minors.' * Thes e fe e level s ar e reflectiv e o fSeaPort' s philosoph yofbuildin g custome rloyaltythroug h qualityservic e a t reasonabl e price s rathe rtha n opportunisticall y"nicke l an d diming " passengers at ever ypossibl e turn

. Marketin g & Publi cRelation s Strateg y SeaPor t intend s t o implemen t a comprehensiv e marketin g an d publi crelation s strateg yaime d at introducin g th e bran d an d servic e mode l t o th e communityan d promotin g increase d ridershi p levels

. Amon g th e marketin g activitie s tha t SeaPor t ha s implemente d o rpresentl yi s rollin g ou t o n a systemwid e basis , an d whic h wil l b e applie d at bot h Verna l an d Moab , are th e following :

• Loca l Even t Marketing

. Recognizin g tha t visibl e participatio n i n loca l event s ha s bee n successfu l fo rbot h legac yan d low-cos t airlines , SeaPor t ha s implemente d a simila rstrateg y i n al l o fit s communities

. Thes e have range d fro m SeaPor t Airline s communityeg g hunts , t o presentin g at busines s expos , t o hostin g "afte rhours " event s at loca l Chambe ro f Commerc e meetings

. I n addition , SeaPor t ofte n make s "i n kind " donation s o fticket s fo rus e byloca l charities , eithe rfo rthei row n busines s need s o ra s a fundraisin g too l (i.e. , raffles , silen t auctions , etc.)

.

3 Fro m tim e t o tim e SeaPor t wil l offe rfare s outsid e o fthi s basi cmodel , howeve rthes e ar e typicall ypromotiona l fare s wit h additiona l saving s t o passengers
.

* Pet s o n SeaPor

t Airline s trave l i n a baggag e compartmen t tha t i s directl ybehin d th e passenge rcabi n an d whic h ensure s thes e four-legge d customers enjo yth e sam e pressurized , ai rconditioned , an d heate d environmenta l comfor t a s ou rhuma n customers

. OST-1997-270 6 & OST-1997-282 7 p , o Augus t 16 , 201 1 ^ '

# SEA^PDR T

r AI R L I N E S 

# Sampl e SeaPor

t Airline s Advertisin g

/SJEX^^WZTO M

OST-1997-270 6 & OST-1997-282 7 Augus t 16 , 201 1 Pag e | 4

# SEA.|^PDR T

r AI R L I N E S

• Website

. Th e majorityofSeaPort' s passengers boo k throug h th e Company' s websit e (www.SeaPortAir.com ) whic h i s currentl yundergoin g a redesig n t o improv e use rnavigatio n an d facilitat e a n easie rbookin g process
.

• Socia l Media

. Beginnin g i n 2010 , SeaPor t Airline s ha s manage d a successfu l socia l medi a campaign , allowin g th e Compan yt o dynamicall yengag e it s custome rbas e i n a two-way conversatio n throug h site s suc h a s Facebook , Twitter , Foursquar e & Linkedln

. W e have foun d socia l medi a t o b e a n excellen t too l fo rgeneratin g passenge rreferral s an d informatio n sharin g i n ou rcommunities , an d expect simila rresult s i n th e tw o Uta h communitie s i n thi s proposal

.

• FlyerFle xCustome rRewards

. Durin g 2011 , SeaPor t launche d a newan d improve d custome rloyaltyprogra m calle d "FlyerFlex. " Thi s progra m provide s th e followin g benefits :

- Fre e flight s

- Fe e waiver s

- Bonu s point s

- Gift membership s

- Personalize d card s o rba g tag s SeaPor t anticipate s unveilin g phas e tw o o fth e FlyerFle xprogra m b yth e en d o f2 0 201 2 t o includ e a wide rchoic e o ftrave l rewards

. I t i s importan t t o not e tha t althoug h thi s progra m i s relativel ynew , earl yindicators are tha t th e objective s o fgeneratin g newan d repeat busines s ar e bein g achieved

.

• Valu e Accounts

. SeaPor t wil l offe rit s Valu e Accoun t at Verna l an d Moab , a progra m tha t encourage s businesse s t o make a long-ter m investmen t i n loca l ai rservic e b yofferin g a varietyo fbenefit s an d savings , includin g 5%-15 % reduction s of fpublishe d fares

. I t i s importan t t o not e tha t unlik e corporat e trave l program s o f majo rairline s tha t ar e not designe d t o effectivel yserv e smal l businesse s i n rura l communities , SeaPort' s Valu e Account s ca n provid e saving s t o a compan yo fvirtuall yan ysiz e an d ca n b e use d b yan y employe e o fa company , no t jus t specifi cemployee s name d o n a sale s contract

.

• Destinatio n Pacl<aging

. SeaPor t ha s recentl yadde d th e capabilityt o creat e trave l package s wit h othe rloca l businesse s an d plan s are bein g formulate d t o offe rpackage s wit h hotels , spas , an d attraction s i n eac h communityserved

. Thi s wil l b e include d i n th e rol l ou t o fth e "ne wan d improved " www.SeaPortAir.com , reference d above

. W e intende d t o includ e thi s i n bot h markets , wit h particula remphasi s o n Moa b a s th e gatewayt o Arche s Nationa l Par k an d Canyonland s Nationa l Park

. Distributio n Strateq v SeaPor t ha s investe d heavil yi n improvin g ou rinventor ydistributio n abilities

. W e ar e nowi n al l five majo rgloba l distributio n system s an d have distributio n o n al l majo ronlin e trave l agencie s an d meta-searchers includin g Orbitz , Travelocity , Expedia , Kayak.com , an d CheapoAir.com

. SeaPor t ha s a n interlin e ticketing agreemen t wit h U S Airway s an d i s workin g o n securin g additiona l agreements

.

OST-1997-270 6 & OST-1997-282 7 p , r August16,201 1 ^ ^

# SEA^^PDR T

r AI R L I N E S


# Communit y& Custome rFeedbac k

Whil e SeaPor

t Airline s ha s outline d abov e wh yw e believ e ou rairtin e i s wel l positione d t o ensur e tha t reliabl e an d reasonabl yprice d ai rtransportatio n continue s t o playa vita l rol e i n th e loca l econom yan d qualityo flif e i n bot h o fthes e communities , th e stronges t proo f reside s i n th e accolade s w e receive

. Belo wi s jus t a smal l sampl e o fth e comment s SeaPor t ha s receive d fro m ou rcustomers an d communitypartners :
"Easter n Orego n Regiona l Airport a t Pendleto n ha d bee n strugglin g sinc e schedul e change s followin g 9/1 1 serve d b ya carrie rflyin g 3 7 sea t aircraft

. Lo w passenge rcoun t attribute d t o poo rschedule , whic h the n contribute d t o poore r passenge rcount

. Th e carrier' s solutio n wa s t o brin g i n large raircraf t an d fl yt o a differen t hub

. Th e Airport an d communitybalke d a t thi s suggestio n an d wen t i n searc h o falternatives

. Th e solutio n foun d throug h th e EA S proces s wa s SeaPor t Ai rflyin g a 9 passenge rPilatus

. Th e passenger s hav e welcome d th e ne w service , muc h bette rschedule , an d ar e elate d wit h "n o securit ycheck " an d stan d b ytime

. Passengers toda ywil l say , " I lov e th e service" , "great custome rservice" , an d "I' m sur e gla d I finall ytrie d it , caus e I'l l b e back"

. I n ou rparticula rmarket , th e 9 passenge raircraf t i s perfect , an d SeaPort Ai r provide s th e schedule , th e professionalism , an d custome rservic e w e nee d an d desire. "

- Larr yDalrympl e Airport Manage r Pendleto n Regiona l Airport

" I hav e neve rha d suc h a positiv e experienc e connecte d wit h an yairline

. I rea d abou t Seapor

t Ai rlas t Octobe rwhe n the yopene d th e Mid-Sout h Route , bu t didn' t hav e th e chanc e t o fl yunti l March

. Usuall yth e drea d o fth e proces s come s the n yo u jus t gri n an d bea rit ; however , wit h SeaPor t Ai rI coul d arriv e 1 5 minute s early

. Th e hassl e fre e n o TS Ai s wonderfu l an d mad e m e fee l special

. I hav e flow n twic e i n th e las t 2 month s an d th e custome rservic e fro m start t o finis h i s outstanding

. I wil l b e a regula rcustome ran d hav e alread yrecommende d th e airlin e t o severa l associates

. Than k you , SeaPor

t Air , fo rmakin g m e fee l lik e a queen! "

- Catherin e Marti n Custome r(fe wfro m Memphi s t o Harrison )

"Fo rtw o decade s I hav e bee n pickin g m ymothe ru p a t th e airport an d fo rtw o decade s I hav e bee n me t wit h th e defeated , hang-do g loo k tha t th e ordea l o fai r trave l ha s give n he n I gues s i t prett ymuc h doe s i t t o al l o fus , bu t (a s sh e i s wel l int o he r80's ) I worr

yabou t th e tol l i t take s o n he rmor e an d mor e lately

.
OST-1997-270 6 & OST-1997-282 7 p-a - | R Augus t 16 , 201 1 ^ '

# MmR' \

r AI R L I N E S
Whe n I picke d he ru p toda yfro m he rSeaPor t fligh t K5232 5 fro m Dalla s an d sa w sh e wa s smiling , yo u coul d hav e knocke d m e ove rwit h a feather ! Sh e couldn' t sto p ravin g abou t ho wpleasan t th e fligh t was
. Le t m e b e clea rM ymothe ri s a tough-as-nail s Mid-wester n Yanke e fro m th e ol d schoo l wh o ha s bee n aroun d th e worl d a coupl e o ftime s sinc e th e lat e 1940's

. Sh e doesn' t besto widl e prais e an d sh e seldo m raves
. Sinc e i t wa s a 9-seate rplan e tha t ha d t o sto p fo ra bathroo m break , I ca n onl y conclud e tha t i t wa s th e abov e averag e servic e sh e receive d fro m you rstaff

. She , i n fact , sai d a s much

. Fro m th e ticke t counte ri n Dalla s t o th e rid e sh e go t t o th e mai n termina l i n Memphi s sh e wa s impressed

. Sh e eve n like d th e way sh e wa s aske d t o tur n of fhe rmobil e phon e an d th e hel p sh e wa s give n doin g s o (she' s no t a bi g techie)

. I' m i n th e servic e industr ymysel fan d I kno who wofte n complaint s com e through

. I jus t wan t t o b e sur e t o le t yo u kno who wwel l everyon e di d o n thi s flight

. I n th e future , I wil l loo k t o SeaPor

t firs t fo rm ytrave l need s an d wil l sprea d th e goo d wor d t o m yfriends

. Asmil e an d a kin d wor d g o a lon g wayy'all

. Than k yo u fo rgettin g thi s on e s o right. "

- Mar k Davi s Peterso n Custome r(fle wfro m Dalla s t o Memphis )

" I wan t t o le t yo u kno wtha t Alan , th e owner , an d I were stuc k i n th e horrendou s traffi cgettin g t o th e airport

. You rpeopl e calle d t o se e where we were at

. Calle d a fe wtime s t o tr

yan d ge t u s ou t o fth e ja m - whic h wa s impossible , we were to o fare fro m th e Gatewa yan d we alread yha d bee n o n th e roa d 1 ! 4 hours

. Di d manag e t o brea k

fre e takin g 102 ( I think) an d calle d clos e t o th e Embass yt o le t the m kno wwe were jus t a minut e awa yan d the yhel d th e plan e fo rus! ! Amazin g an d kudo s t o you rteam! ! I hav e bee n tellin g everyon e o fth e stella rcustome r servic e an d yo u wil l b e ou rfligh t o fchoic e goin g forward. "

- Joann e Boswort h Custome r(fle wfro m Portland )

"Two hours befor e th e fligh t I booke d m yticke t t o Memphi s fro m Ho t Springs

. Wow ! What a surprise ; i t wa s simple , convenient , grea t price , an d impeccabl e service

. I t fa rexceede d m yexpectation s an d I wil l b e flyin g t o Memphi s o n SeaPor t Airline s instea d o fdrivin g fro m no won
. Th e custome rservic e wa s fabulous! "

- Rut h An n Smit h Custome r(fle wfro m Ho t Sphng s t o Memphis )

OST-1997-270 6 & OST-1997-282 7 Paq e i 7 Augus t 16 , 201 1

# SEA4^PDR T

r AI R L I N E S


# Service Proposa l

Servic e Patter n SeaPor t Airline s i s offerin g thre e proposal s fo rconsideratio n b yth e communitie s o fMoa b an d Verna l tha t includ e nonsto p servic e exclusivel yt o Sal t Lake Cityo rservic e t o bot h Sal t Lake Cit yan d Denver

. 

# SeaPort Airline s Proposa l Servic e Patter n Option s Moa b an d Vernal , LI T

Th e propose d servic e pattern s tak e int o consideratio n th e nee d t o acces s Sal t Lake Citywhic h function s a s th e economic , governmental , an d cultura l cente rfo rth e Stat e o fUtah , bu t als o th e nee d fo rthos e communitie s t o hav e connectivitywit h th e res t o fth e nation

. I n th e cas e ofVernal , acces s t o Denve rwoul d specificall ybenefi t th e oi l & ga s industry , bu t als o provid e stronge reastboun d connectivitytha n wha t i s availabl e at SLC

. I n th e cas e o fMoab , SL C provide s goo d connectivityt o th e wester n Unite d State s wher e th e majorityo finboun d visitors originate , ye t woul d b e supplemente d b ygoo d eastboun d connectivityvi a DEN

.

OST-1997-270 6 & OST-1997-282 7 Augus t 16 , 201 1 Page| 8

# SEA+^'PDR T

r AI R L I N E S

Bot h Denve ran d Sal t Lake Cityca n provid e connection s to/fro m low-far e carriers , includin g Southwest , Frontier , an d JetBlue. ^ As note d above , SeaPor t Airline s i s offerin g thre e servic e option s fo rconsideratio n byth e communitie s ofMoa b an d Vernal :

• Optio n #1:1 8 weekl yroun d trip s t o Sal t Lake City

• Optio n #2 : 1 1 weekl yroun d trip s t o Denve ran d 7 weekl yroun d trip s t o Sal t Lake City

• Optio n #3 : 7 weekl yroun d trip s t o Denve ran d 1 1 weekl yroun d trip s t o Sal t Lake City Eac h optio n i s presente d t o eac h communityo n a "stan d alone " basis

. Ther e i s n o requiremen t tha t SeaPort b e awarde d servic e i n bot h Moa b an d Vernal , o rtha t th e communitie s selec t th e sam e o ran yspecifi ccombinatio n o fservic e options

. Projecte d revenu e an d operatin g expense s tha t for m th e economi cbasi s o fthi s proposa l ar e summarize d o n th e tabl e o n th e nex t pag e fo ra tw o yea rperio d beginnin g o n Januar y1 , 2012

. Projection s ar e base d o n th e assumptio n o fone-wayfare s a s lowa s $5 9 betwee n Verna l an d Sal t Lake Cit

yan d a s lowa s $12 9 betwee n Verna l an d Denver , inclusiv e ofal l taxe s an d fees

. Fro m Moab , fare s a s lowa s $6 9 one-wayt o Sal t Lake Cityan d $12 9 t o Denve rar e estimated , inclusiv e o fal l taxe s an d fees

. Th e proposal s containe d herei n ar e base d o n th e assumptio n ofa tw o yea rter m beginnin g Januar y1 , 2012

. Notwithstandin g th e ris k o fcos t inflatio n i n comin g years (particularl yrelate d t o fuel ) tha t coul d possibl youtstri p traffi cgrov\rt h an d reasonabl e far e increases , SeaPor t i s offerin g th e Departmen t th e optio n t o contract th e propose d annua l subsid yfo ra fou ryea rperio d at n o increas e i n annua l subsidy

. W e believ e thi s offe rprovide s th e communitywit h th e assuranc e o f stabl e ai rservic e fo ra n extende d perio d an d reduce s th e administrativ e burde n o n bot h th e Departmen t an d ourselves

. Respectfull ysubmitted

.

Timoth ySiebe r Vic e Presiden t - Strateg y& Corporat e Developmen t SeaPor t Airlines , Inc

.

' Whil e SeaPor

t Airline s (alon g wit h ever yothe rU.S

. base d airline ) doe s no t have a n interlin e ticketin g an d baggag e agreemen t wit h Southwes t Airlines , Interne t savv yconsumers figure d ou t lon g ag o howt o buil d "en d t o end " connectin g itinerarie s wit h thi s carrier , a s wel l a s others

. Thi s ha s bee n validate d i n a numbe ro f ou rothe rEA S market s tha t ar e linke d wit h airport s serve d bySouthwes t (a s wel l a s othe rlow-far e airlines)

. OST-1997-270 6 & OST-1997-282 7 Pag e | 9 Augus t 16 , 201 1

# SEA^'-PDR T

r AI R L I N E S 

### SeaPor t Airlines , Inc

. Docke t DOT-OST-1997-270 6 Verna l - Sal t Lak e Cit y Mon-Fri : 3 R T Sat : 1 R T Sun : 2 R T ratin g Projection s Averag e Secto rLengt h (sm ) Schedule d Departure s Schedule d Bloc k

Hour s Projecte d Completio n Facto r Projecte d Complete d Departure s Projecte d Complete d Bloc k Hour s Passenge rProjection s Projecte d Passenger

s Projecte d Averag e Far

e Revenu e Passenge rMile s (RPMs ) Availabl e Sea

t Mile s (ASMs ) Projecte d Load Facto r Financia l Projection s Revenues Passenge rTicke t Revenues Ancillar yRewsnue

s Tota l Expense s Fligh t Operation s Aircraf t Ownership/Leas e Fue l & Oi l Traffi cServicin g Insurance Maintenance Sub-Tota l - Direc

t Indirec t Tota l Expense s Projecte d Operatin g Profit/(Loss ) Subsid yCalculation s Operatin g Los s Economi cRetur n @ 5% Require d Subsid y Optio n 1 132 1,87 2 1,497. 6 97.5 % 1,825 1,460. 2
8,00 0 $ 89.0 0 1,056,00 0 2,168,33 8 48.7 %

$712,00 0 $18,632 $730,632 $170,83 9 $277,43 0 $594,28 5 $100,87 6 $29,20 3 $335,83 7 $1,508,47 0 $678,81 2 $2,187,28 2 ($1,456,650 ) $1,456,65 0 $109,364 $1,566,01 5

OST-1997-270 6 & OST-1997-282 7 Pan g | 1 0 Augus t 16 , 201 1 ^ '

# SEAH^PDR T

r AI R L I N E S 

### SeaPor t Airlines

. Inc

. Docke t DOT-OST-1997-270 6 Verna l - Denve r Mon-Fri : 2 R

T Sun : 1 R T Verna l - Sal t Lake City Mon-Fri : 1 R

T Sat : 1 R T Sun : 1 R T Operatin g Projection s Optio n 2

Averag e Secto rLengt h (sm ) Schedule d Departure s Schedule d Bloc k

Hours Projecte d Completio n Facto r Projecte d Complete d Departure s Projecte d Complete d Bloc k Hours Passenge rProjection s Projecte d Passenger s Projecte d Averag e Far e Revenu e Passenge rMile s (RPMs ) Availabl e Sea t Mile s (ASMs ) Projecte d Loa d Facto r Financia l Projection s Revenue s Passenge rTicke t Revenue s Ancillar yRevenue s Tota l Expense s Fligh t Operation s Aircraf t Ownership/Leas e Fue l & Oi l Trafli cSerwcin g Insuranc e Maintenanc e Sub-Tota l - Direc t Indirect Tota l Expense s Projecte d Operatin g Profit/(Loss ) Subsid yCalculation s Operatin g Los s Economi cRetur n @ 5 % Require d Subsid y 21 7 1,87 2 2,210. 7 97.5 % 1,82 5 2,155. 4
9,35 0 $ 146.7 3 2,025,83 3 3,559,14 0 56.9 %

$1,371,90 0 $35,91 9 $1,407,81 9 $245,87 7 $399,28 8 $855,31 7 $194,37 3 $42,03 0 $483,34 8 $2,220,23 4 $888,09 4 $3,108,32 7 ($1,700,509 )
$1,700,50 9 $155,41 6 $1,855,92 5

OST-1997-270 6 & OST-1997-282 7 Augus t 16 , 201 1 Page | 1 1

# SEAH^PDR T

r AI R L I N E 5 

### SeaPor t Airlines

. Inc

. Docke t DOT-OST-1997-270 6 Verna l - Sal t Lake City Mon-Fri : 2 R

T Sun : 1 R T Verna l - Denve r Mon-Fri : 1 R

T Sat : 1 R T Sun : 1 R T Operatin g Projection s Optio n 3

Averag e Secto rLengt h (sm ) Schedule d Departure s Schedule d Bloc k

Hour s Projecte d Completio n Facto r Projecte d Complete d Departure s Projecte d Complete d Bloc k Hour s Passenge rProjection s Projecte d Passenger s Projecte d Averag e Far e Revenu e Passenge rMile s (RPMs ) Availabl e Sea t Mile s (ASMs ) Projecte d Loa d Facto r Financia l Projection s Revenue s Passenge rTicke t Revenue s Ancillar yRevenue s Tota l Expense s Fligh t Operation s Aircraf t Ownership/Leas e Fue l & Oi l Traffi cServicin g Insuranc e Maintenanc e Sub-Tota l - Direc t Indirec t Tota l Expense s Projecte d Operatin g Profit/(Loss ) Subsid yCalculation s Operatin g Los s Economi cRetur n @ 5 % Require d Subsid y 17 4 1,87 2 1,965. 3 97.5 % 1,82 5 1,916. 2
8,55 0 $ 116.3 4 1,490,55 0 2,863,73 9 52.0 %

$994,70 0 $26,04 7 $1,020,74 7
$218,59 1 $354,97 6 $760,39 6 $140,93 1 $37,36 6 $429,70 8 $1,941,96 8 $650,55 9 $2,592,52 7 ($1,571,780 )
$1,571,78 0 $129,62 6 $1,701,40 7

OST-1997-270 6 & OST-1997-282 7 Augus t 16 , 201 1 Page|1 2

# SEA^PDR T

r AI R L I N E S 

### SeaPor t Airlines

. Inc

. Docke t DOT-OST-1997-282 7 Moa b - Sal t Lake City Mon-Fri : 3 R

T Sat : 1 R T Sun : 2 R T Operatin g Projection s Optio n 1

Secto rLengt h (sm ) Schedule d Departure s Schedule d Bloc k

Hour s Projecte d Completio n Facto r Projecte d Complete d Departure s Projecte d Complete d Bloc k Hour s Passenge rProjection s Projecte d Passengers Projecte d Averag e Far

e Revenu e Passenge rMile s (RPMs ) Availabl e Seat Mile s (ASMs ) Projecte d Loa d Facto r Financia l Projection s Revenues Passenge rTicke t Revenue s AncillaryRevenue s Tota l Expense s Fligh t operation s Aircraft Ownership/Leas e Fue l & Oi l Traffi cServicin g Insuranc e Maintenanc e Sub-Tota l - Direct Indirec t Tota l Expense s Projecte d Operatin g Profit/(Loss ) Subsid yCalculation s Operatin g Los s Economi cRetur n @ 5 % Require d Subsid y 184 1,87 2 1,872. 0 97.5 % 1,82 5 1,825. 2
6,00 0 $ 92.5 0 1,104,00 0 3,022,53 1 36.5 %

$555,00 0 $14,52 3 $569,52 3
$213,54 8 $346,78 8 $742,85 6 $78,63 2 $36,50 4 $41-9,796 $1,838,12 5 $680,10 6 $2,518,23 2 ($1,948,708 ) $1,948,70 8 $125,91 2 $2,074,62 0

OST-1997-270 6 & OST-1997-282 7 Augus t 16 , 201 1 Pag e I 1 3

# SEA4^PDR T

r AI R L I N E S 

### SeaPor t Airlines

. Inc

. Docke t DOT-OST-1997-282 7 Moa b - Denve r Mon-Fri : 2 R T Sun : 1 R T Moa b - Sal t Lak e Cit y Mon-Fri : 1 R T Sat : 1 R T Sun : 1 R T Operatin g Projection s Optio n 2

Secto rLengt h (sm ) Schedule d Departure s Schedule d Bloc k

Hour s Projecte d Completio n Facto r Projecte d Complete d Departure s Projecte d Complete d Bloc k Hour s Passenge rProjection s Projecte d Passenger s Projecte d Averag e Far e Revenu e Passenge rMile s (RPMs ) Availabl e Sea t Mile s (ASMs ) Projecte d Loa d Facto r Financia l Projection s Revenue s Passenge rTicke t Revenue s Ancillar yRevenue s Tota l Expense s Fligh t Operation s Aircraf t Ownership/Leas e Fue l & Oi l Trafli cServicin g Insuranc e Maintenanc e Sub-Tota l - Direc t Indirec t Tota l Expense s Projecte d Operatin g Profit/(Loss ) Subsid yCalculation s Operatin g Los s Economi cRetur n @ 5 % Require d Subsid y 25 0 1,87 2 2,386. 8 97.5 % 1,82 5 2,327. 1
6,90 0 $ 123.4 1 1,725,00 0 4,106,70 0 42.0 %

$851,55 0 $22,26 1 $873,81 1
$272,27 4 $442,15 5 $947,14 2 $120,64 5 $46,54 3 $535,24 0 $2,363,99 8 $638,27 9 $3,002,27 7 ($2,128,466 )
$2,128,46 6 $150,11 4 $2,278,58 0

OST-1997-270 6 & OST-1997-282 7 Augus t 16 , 201 1 Page11 4

# SEA.j^PDR T

r AI R L I N E S 

### SeaPor t Airlines , inc

. Docke t DOT-OST-1997-282 7 Moa b - Sal t Lak e Cit y Mon-Fri : 2 R T Sun : 1 R T Moa b - Denve r Mon-Fri : 1 R T Sat : 1 R T Sun : 1 R T Operatin g Projection s Optio n 3

Secto rLengt h (sm ) Schedule d Departure s Schedule d Bloc k

Hour s Projecte d Completio n Facto r Projecte d Complete d Departure s Projecte d Complete d Bloc k Hour s Passenge rProjection s Projecte d Passenger s Projecte d Averag e Far e Revenu e Passenge rMile s (RPMs ) Availabl e Sea t Mile s (ASMs ) Projecte d Loa d Facto r Financia l Projection s Revenue s Passenge rTicke t Revenue s Ancillar yRevenue s Tota l Expense s Fligh t Operation s Aircial l Ownership/Leas e Fue l & Oi l Traffi cServicin g Insuranc e Maintenanc e Sub-Tota l - Direc t Indirec t Tota l Expense s Projecte d Operatin g Profit/(Loss ) Subsid yCalculation s Operatin g Los s Economi cRetur n @ 5 % Require d Subsid y

OST-1997-270 6 & OST-1997-282 7 Augus t 16 , 201 1 21 7 1,87 2 2,152. 8 97.5 % 1,82 5 2,099. 0
6,20 0 $ 109.7 0 1,345,40 0 3,564,61 6 37.7 %

$680,15 0 $17,78 7 $697,93 7

$245,58 1 $398,80 6 $854,28 5 $96,36 2 $41,98 0 $482,76 5 $2,119,77 9 $638,05 3 $2,757,83 2 ($2,059,895 )
$2,059,89 5 $137,89 2 $2,197,78 7

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