Sovereign Air, Inc. 

June 16, 2010 

Dennis J. DeVany, Chief 

EAS & Domestic Analysis Division, X-53 

Office of Aviation Analysis 

Department of Transportation 

1200 New Jersey Ave. SE 

Washington, DC 20590 

Re: Proposal to Provide Essential Air Service 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 Order 2010-6-16, Sovereign Air, Inc. offers the following proposal: 

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Sovereign Air, Inc. (SAl) is planning to use a one 19-seat Beech 1900 aircraft (3 total) for non-stop service 

to Denver on each route from KEARNEY, NEBRASKA, NORTH PLATTE, NEBRASKA, and SCOTTSBLUFF, 

NEBRASKS. 

Our flights will service only the EAS cities and the DEN Hub. Sovereign Air believes that with excellent 

baggage handling, proper schedules, inexpensive pricing, a comfortable-quiet- pressurized aircraft, and 

a recovering economy, the load factors will increase in these markets. SAl will base its aircraft, crews 

and maintenance personnel, banking and purchase fuel for the first aircraft in KEARNEY and the second 

aircraft in NORTH PLATTE and the third aircraft in SCOTTSBLUFF. Sovereign AIR Air will keep most of 

the EAS monies in the local communities. Additional flights will be added as needed to accommodate 

periods of increased demands. 

SAl will have baggage and ticket agreements with the major air carriers in Denver by the start of this EAS 

service. SAl will also have cargo agreements for both domestic and international air freight movements. 

SAl has been HAZMAT approved and will be working in conjunction with hospitals to expedite various 

HAZMAT materials that they need to transport. 

SAl's goal is to work hand-in-hand with the communities to reduce the need for EAS subsidies within the 

next four to six years. 

Sovereign Air is currently in the process of acquiring its Scheduled Service Authority and anticipates 

being able to start this Essential Air Service by September 1, 2010. 

Sovereign Air will be fully integrated into the Global Distribution System (GDS) in conjunction with 

Worldspan. SAl is not tied to just one airline, allowing Sovereign Air better visibility in the various 

reservation systems. Passengers will have a broad range of channels 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 or visit our website to book flights. Passengers can also 

purchase tickets and make reservations at our ticket counters. 

SAl's final schedules will be developed by the City Airport Boards and SAl to reduce layover times in DEN 

and provide the best possible arrival and departure times for the travelling 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 :30p m-1 :40p m 

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 :30a m-7 :20a m 

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 Per Week 

$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 

Com pletion 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 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 

$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 

Com pletion 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 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 

$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 

Com pletion Rate 97% 

Load Factor 54 % 
Customer safety and service are Priority One with SAL Sovereign Air looks forward to providing 

Essential Air Service to North Plate, Scottsbluff and Kearney. 

Sincerely, 

Robert B. Karns, GM 

Sovereign Air, Inc.