# SovereignAir,Inc.
June 16, 2010 DennisJ. DeVany, Chief EAS 

### & Domestic Analysis Division, X-53 Office ofAviation Analysis DepartmentofTransportation 1200 NewJersey Ave. SE Washington, DC 20590 Re: Proposal to Provide Essential AirService at: KEARNEY, NEBRASKA, DOT-OST-1996-1715 NORTH PLATTE, NEBRASKA, DOT-OST-1999-5173 SCOTTSBLUFF, NEBRASKA, DOT-OST-2003-14535
Dear Mr. DeVany: 

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In response to Order2010-6-16, Sovereign Air, Inc. offersthefollowing proposal: :,r-"-:T'-'I"'I, <0, :"",."

Sovereign Air, Inc. (SAl) is planningto use aone 19-seat Beech 1900 aircraft (3 total) for non-stop service to Denveron each route from KEARNEY, NEBRASKA, NORTH PLATTE, NEBRASKA, and SCOTTSBLUFF, NEBRASKS. Ourflights will service onlythe EAS cities and the DEN Hub. Sovereign Air believes thatwith excellent baggage handling, properschedules, inexpensive pricing, acomfortable-quiet- pressurized aircraft, and a recovering economy, the load factorswill increase in these markets. SAl will base its aircraft, crews and maintenance personnel, banking and purchase fuel forthe first aircraft in KEARNEY and the second aircraft in NORTH PLATTE and the third aircraft in SCOTTSBLUFF. Sovereign AIR Airwill keep most of the EAS monies in the local communities. Additional flights will be added as needed to accommodate periods ofincreased demands. SAl will have baggage and ticket agreements with the majorair carriers in Denver by the start ofthis EAS service. SAl will also have cargo agreements for both domesticand international airfreight movements. SAl has been HAZMAT approved and will be working in conjunction with hospitalsto expeditevarious HAZMAT materialsthat they need totransport. SAl's goal is to work hand-in-hand with the communitiesto reduce the need for EAS subsidies within the nextfourto six years. Sovereign Air is currently in the process ofacquiring its Scheduled Service Authority and anticipates being able to startthis Essential AirService by September 1, 2010. Sovereign Airwill be fully integrated intothe Global Distribution System (GDS) in conjunction with Worldspan. SAl is nottied tojust one airline, allowing Sovereign Air bettervisibility in thevarious reservation systems. Passengers will have a broad range ofchannels 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 orvisit ourwebsite to bookflights. Passengers can also purchase tickets and make reservations at ourticket counters. SAl's final schedules will be developed by the City Airport Boards and SAl to reduce layovertimes in DEN and provide the best possible arrival and departure timesforthetravelling public. As such, the following schedules will likely be adjusted:**Kearne~** Schedule

Fit 

### # Freq From TO Dpt-Arr 

### 10 1234567 EAR DEN 6:30am-7:40am 

### 11 1234567 DEN EAR 8:40am-9:50am 

### 20 2356 EAR DEN 1O:30amll:40am 

### 21 2356 DEN EAR 12:30pm-1:40pm 

### 30 1234567 EAR DEN 5:00pm-6:10pm 

### 31 1234567 DEN EAR 8:00pm-9:10pm
Scottsbluff Schedule

Fit

### # Freq From TO Dpt-Arr 

### 101 1234567 BFF DEN 6:30am-7:10am 

### 111 1234567 DEN BFF 8:30am-9:10am 

### 201 2356 BFF DEN 10:30amll:10am 

### 211 2356 DEN BFF 11:30pm-1:10pm 

### 301 1234567 BFF DEN 5:30pm-6:10pm 

### 311 1234567 DEN BFF 8:00pm-8:40pm
North Plate Schedule

Fit 

### # Freq From TO Dpt-Arr 

### 102 1234567 LBF DEN 6:30am-7:20am 

### 112 1234567 DEN LBF 8:50am-9:30am 

### 202 2356 LBF DEN 1O:30am11:10am 

### 212 2356 DEN LBF 12:50pm-1:30pm 

### 302 1234567 LBF DEN 6:00pm-6:40pm 

### 312 1234567 DEN LBF 8:20pm-9:00pm

### 19-5eat Beech 1900 Sovereign Air, Inc. Annual Compensation Requirement for Essential Air Service for North Plate
Aircraft Type Available Seats Per Departure Passengers Per Trip
Block Hours Departures Total Passengers Average Fare
Revenue Passenger Miles Available Seat Miles Passenger Revenue Other Rev. @ 

### .6 of pax. Rev. %

Total Revenue Aircraft and Hull Insurance Fuel and Oil Flying Operations
Other Direct Costs Maintenance

Total Direct Costs Total Indirect Costs 18 Round trips PerWeek

$69 one way 19-seats 19 8.698 1,617 1816 15,795

3,578,357 7,816,881 $1,089,855.00 $65,391.00 $1,155,246.00

$220,000.00 $776,217.83 $316,939.44 $222,444.50 $270,754.48 $272,517.14 $1,858,428.90

$685,626.74
Total Operating Expenses $2,544,055.65 Operating Loss $1,388,809.35 Profit @ 

### 5% $127,202.78 Annual Compensation Requirement $1,516,012.13


### Completion Rate 97% Load Factor 42%

### 19-$eat Beech 1900 Sovereign Air, Inc. Annual Compensation Requirement for Essential Air Service for Scottsbluff BFF- DEN Aircraft Type Available Seats Per Departure Passengers PerTrip Block Hours Departures Total Passengers Average Fare

Revenue Passenger Miles Available Seat Miles Passenger Revenue Other Rev. @ 

### .6 of pax. Rev. %

Total Revenue Aircraft and Hull Insurance Fuel and Oil Flying Operations Other Direct Costs Maintenance

Total Direct Costs Total Indirect Costs $69 one way 19-seat 19 Avg 10.06 1,108 1,816 18,276

2,732,262 5,158,348 $1,261,044.00 $75,662.64 $1,336,706.64

$220,000.00 $531,988.95 $217,271.74 $296,395.42 $221,130.07 $1,488,732.18

$580,732.43
Total Operating Expenses $2,069,464.61 Operating Loss $732,757.97 Profit @ 

### 5% $103,473.23 Annual Compensation Requirement $836,231.20


### Completion Rate 97% Load Factor 42%

### 19-5eat Beech 1900 Sovereign Air, Inc. Annual Compensation Requirement for Essential Air Service for Kearney EAR-DEN Aircraft Type Available Seats Per Departure Passengers PerTrip Block Hours Departures Total Passengers Average Fare

Revenue Passenger Miles Available Seat Miles Passenger Revenue Other Rev. @ 

### .6 of pax. Rev. %

Total Revenue Aircraft and Hull Insurance Fuel and Oil Flying Operations Other Direct Costs Maintenance

Total Direct Costs Total Indirect Costs $79 one way 19-seat 19 Avg 10
..39 2,126 1,816 18,863

5,726,807 10,475,414 $1,490,177.00 $89,410.62 $1,579,587.62

$220,000.00 $1,020,446.72

$416,661.15 $568,537.64 $424,165.69 $2,651,811.20 $1,113,945.15
Total Operating Expenses $3,765,756.35 Operating Loss $2,186,168.73 Profit @ 

### 5% $188,287.82 Annual Compensation Requirement $2,374,456.54


### Completion Rate 97% Load Factor 54%Customer safety and service are Priority One with SAL Sovereign Air looks forward to providing Essential AirService to North Plate, Scottsbluffand Kearney.
Sincerely,

Robert B. Karns, GM Sovereign Air, Inc.