Essential Air Service at 

Pendleton, OR 

under 49 us e 41731 etseq. 

Docket OST 2004-19934 

RENEWED PROPOSAL TO PROVIDE ESSENTIAL AIR SERVICE 

AT 

PENDLETON, OR 

DOCKET 

ALASKA JUNEAU AERONAUTICS, INC. 

D/B/A 

SEAPORT AIRLINES 

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OST 2004-19934 
SEA PORT 

rA I R L I N E S 

Proposal to Renew Essential Air Service 

Pursuant to Order 2009-4-8, Alaska Juneau Aeronautics, Inc. d/b/a SeaPort Airlines respectfully 

submits this renewal proposal to provide subsidized essential air service to the communities and 

residents of Eastern Oregon. SeaPort Airlines holds a certificate of public convenience and 

necessity authorizing, and finding SeaPort fit to engage in, scheduled interstate air transportation 

of persons, property, and mail, and has been doing so for the past 27 years. Our company's 

foundation is built on service to rural communities. Both SeaPort Airlines and its sister company 

Wings of Alaska currently operate routes under the Essential Air Service program, as well as unsubsidized operations on established competitive routes. 

SeaPort Airlines: The Right-Size for Pendleton 

SeaPort Airlines proposes to continue the operation of three direct round trips per day between 

Pendleton and the hub of Portland. This service level will offer more than enough inventory to 

provide for the traffic of the last couple years, while keeping capacity "right-sized" and avoiding 

an unnecessary flooding of empty seats and resulting higher operating costs. 

hi addition, we will sustain a schedule to maximize traffic flow with flights morning, midday, 

and evening. SeaPort believes that traffic will continue to increase in the coming years as the 

speed and convenience of our service continues to become more familiar to the residents of these 

communities. 

We are therefore able to continue to offer these communities the best possible fit with: 

• Comfortable, fast, and pressurized Pilatus PC-12 aircraft 

• Convenient schedules 

• Affordable fares 

• A reasonable and sustainable subsidy request 

Our Aircraft 

SeaPort Airlines operates several Pilatus PC-12 aircraft. The PC-12 is a Swiss-built, pressurized 

turboprop aircraft typically found in corporate aviation, but utilized by SeaPort Airlines in a 

nine-seat commuter configuration. The world's best-selling turbine business aircraft, and still in 

production today, the PC-12 can shuttle you with comfort and speed with no "middle" seats. 

Pilatus is a world market leader in the manufacturing of turboprop aircraft and is the only Swiss 

company to develop, produce, and sell aircraft and training systems all over the world. 

Our competitors offer aircraft that are unpressurized, have spotty records in operation in the 

weather that is prevalent in the Pacific Northwest, and in some cases, been out of production for 

40 years. 
Efficiency and Reach 

SeaPort Airlines is already fully integrated into (Global Distribution System) CDS so that 

passengers will have multiple channels from which to purchase tickets, including all of the 

familiar branded GDS portals. Customers will be able to call our central reservations office, 

book online at www.seaportairlines.com, or purchase from travel agents. A number of online 

travel agencies and meta-search engines, such as Expedia and Kayak, are currently able to carry 

SeaPort inventory. SeaPort continues to expand its presence on additional online travel agency 

sites. Passengers are always welcome to simply walk up to the counter if they so desire. SeaPort 

has also entered into an interline passenger agreement with US Airways, giving passengers even 

further choice and convenience. 

History of Serving Essential Air Service Communities 

SeaPort Airlines currently delivers Essential Air Service to seven communities: Excursion hilet, 

AK, Pendleton, OR, Jonesboro, AR, El Dorado, AR, Hot Springs, AR, Harrison, AR, and Salina, 

KS. Additionally, SeaPort serves Newport, OR and Astoria, OR under a combined state and 

federal grant program. 

hi every case, we have maintained fares either at or below that which we outlined in our bid, in 

comparison to so many other airlines placing bids with unreasonable fares that are never realized 

by the traveling public. 

SeaPort's Current Plan 

SeaPort Airlines emphasizes customer service and convenience, and in so doing our platform is 

reminiscent of commercial air service of the past in that our passengers only need to arrive 20 

minutes prior to departure from any of our terminals. 

In Portland, SeaPort uses its own private terminal as a hub for this operation with valet parking. 

From this terminal we will continue to provide complimentary shuttle van service to and from 

Portland's main terminal for those passengers needing to connect to, or returning from, more 

distant destinations. This model has thus far proven itself well at our hub in Portland, OR, and is 

as convenient as the typical gate change—only with this option the passenger receives a 

complementary shuttle ride. 

Further, a no-TSA model will continue to offer the communities tremendous appeal for quick 

trips to and from Portland and other potential major market connections to be served by SeaPort. 

Finally, a no-TSA model will continue to have the greatest potential to draw business and leisure 

traffic from Portland that would otherwise travel by highway if a traditional TSA-restricted 

airline was the only flight option. 
History of Serving Pendleton, Oregon 

For nearly two years, SeaPort Airlines has had the pleasure of providing Pendleton, Oregon with 

a unique air service unlike anything in the industry. Ease, convenience, and customer service 

have accompanied every flight, and at an affordable rate. SeaPort has provided the comfort of 

private air travel on a scheduled commuter service, and the response has been overwhelmingly 

positive. SeaPort has been extremely pleased with its successful service to Eastern Oregon as it 

steadily develops into an increasingly sustainable route, investing not only in the air service, but 

in the community itself. 

General operations and scheduled flights. In the last eight months, SeaPort Airlines has 

maintained a completion rate of 100% for Pendleton flights. Flights were only cancelled or 

delayed due to extreme fog, when visibility was below the legal limits. SeaPort's history of 

minimizing controllable cancellations and delays has been industry leading. 

Customer service. SeaPort Airlines services have been well received by the Eastern Oregon 

region and surrounding areas. The SeaPort customer service philosophy has been integral to the 

success of the service to Pendleton, highlighting that each passenger is an individual, and each 

should have their needs addressed accordingly. Our customer service agents, flight crew, and 

other staff are not only trained to be knowledgeable and attentive, but are selected for their 

friendly qualifies and abilities to express consideration for the needs of our clients. SeaPort 

passengers are asked to participate in our survey program upon completion of their flying 

experience, and comments such as the following have been recorded and are not uncommon: 

• "Friendly and personal service. Amazingly smooth take-off and landing. It was great!" 

• "Great service! Love check-in time!" 

• "Very fast and efficient service. Wonderful staff! My first time with SeaPort, and I plan 

to return!" 

• "Very friendly staff, excellent service. Thank you, SeaPort." 

• "Wonderful, personable employees!" 

• "Wonderful, informative staff." 

• "Very friendly and helpful." 

• "Friendly crew and super convenient." 

• "Very good experience!" 

Marketing and public relations. Although the quality of customer attention the airline provides 

markets itself, SeaPort Airlines has made enormous efforts to reach Pendleton and surrounding 

communifies by ufilizing a number of marketing channels, aimed at both building and 

maintaining a strong cliental base. 

Advertising. Print and internet banner advertising has been facilitated through the East 

Oregonian, Walla Walla Union-Bulletin, La Grande Observer, Hermiston Herald, and the 

Wallow County Chieftain. Tourist guides, such as the Eastern Oregon Visitor Guide, Walla 

Walla Union-Bulletin Vistitor's Guide and Wallow County Cheiftain Visitor's Guide contain 

SeaPort advertisements. Potential clients have been targeted via locally broadcasted radio station 

advertisements, such as those produced by Capps Broadcasting and Pacific Empire Radio. The 

Pendleton Chamber of Commerce has been supported and employed as a means to reach out via 
chamber newsletters and website. Outdoor advertising, including billboards on 1-84 near 

Pendleton, Boardman, and La Grande, has been implemented. A number of TV commercials 

have been produced and aired on television, utilizing KOIN, KATU, CSNN, CNBC, CNN, 

FSNW, FXNC and GOLF. Hermiston and Pendleton Theatre screen advertisements were at one 

time implemented as well. 

Promotions. Promotions such as the SeaPort Airlines "First Time Flyer" fare between Portland 

and Pendleton have increased passenger loads, giving both inbound and outbound passengers the 

opportunity to try our airline with little impact on their pocketbooks. However, our loyal flyers 

are continuously enticed to use our services with our "No-BS Frequent Flyer" card, awarding 

clients a free flight with every twenty one-way trips. "Early Bird" fares have been established to 

encourage our clients to book reservations well in advance, as well as to encourage ridership on 

less popular flights. For corporate travel, we have a tiered Value Account system that makes 

purchasing fares for business travel simple, traceable, and rewarding. A number of promotions 

have been executed for charter services to specific events, such as PACIO football and the 

Yakima Fresh Hops Festival. 

Internet and social media. With an established website, and the institution of booking capabilities 

on online travel agency sites and meta-search engines, a number of possibilities have presented 

themselves for marketing the Pendleton route globally. 

SeaPort Airlines now has a dedicated Facebook and Twitter account, with a solid following of 

clients and non-clients that are endced to participate through round-trip ticket contest giveaways. 

Social media has been a great tool for promoting events. 

Community Outreach and Service. SeaPort Airlines has supported events rooted in the 

Pendleton community. An aircraft was recently dedicated for the Centennial Pendleton RoundUp, declaring the "Spirit of Pendleton" by branding it with the Round-Up logo. Further support 

has been exhibited with sponsorship of the rodeo's "Tough Enough to Wear Pink" event as well 

as participation in past Round-Up activities. Three additional round-trips were added to the 

schedule to facilitate additional travel to Pendleton for the Round-Up event. Round-trip ticket 

vouchers have been donated on a regular basis to fundraise for events and auctions, such as those 

held by St. Anthony's Hospital. SeaPort has recently worked with Umafilla County in promoting 

the community and its air service at the Oregon State Fair. SeaPort has been a sponsor for events 

like the Yoga Round-Up as well, providing both advertisements in our in-flight magazine and 

round-trip ticket donafions. 

SeaPort has hosted open house events at the airport terminal, providing Eastern Oregon with an 

opportunity to get to know the airline, our philosophy, and our employees. 

A Boy Scout Aviafion Badge program, lead by SeaPort's assistant chief pilot, was implemented 

in support of local Boy Scout efforts. Currently, SeaPort is developing a Community Non-Profit 

Partnership Program with the goal of aiding local non-profits in their work. SeaPort donates 

annually to an aeronautical competition hosted at the airport in Pendleton. 
Passenger Loads and Sustainability Potential 

SeaPort Airlines has witnessed excellent growth in ridership since it began service to Pendleton 

in December 2009. Between February 2010 and June 2010 alone, we have seen a 20-25% 

increase in passenger numbers enplaning and deplaning in Pendleton. With the implementation 

of a "First Time Flyer" promotion in July 2010, SeaPort witnessed a 12-14% increase in tickets 

issued in the following month between Pendleton and Portland. The increase in passenger loads 

contributes to lowering costs and exhibits SeaPort's trending towards sustainable air service. 

This is most notably evidenced by a reduced subsidy request for the next two years as compared 

to the period we are now completing. 

SeaPort welcomes this opportunity to once again be chosen to provide essential air service at 

Pendleton, Oregon for the next two-year period. We bring a fresh approach, and believe we have 

presented a proposal that will meet the EAS needs of the communities at reasonable subsidy 

levels substantially less than our initial proposal. Thank you for your consideration. 

Respectfully submitted, 

Robert L. McKinney 

President 

Alaska Juneau Aeronautics, Inc. d^/a 

SeaPort Airlines 

Wings of Alaska 

Enclosures 

Correspondence regarding this proposal should be directed to: 

Rob McKinney 

President 

SeaPort Airlines 

7505 NE Airport Way 

Portland, OR 97218 

(971)340-1710 

www.scaportairlincs.com 
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