### May 15, 2012

Dennis J. DeVany Office of Aviation Analysis US Department of Transportation 400 Seventh Street, S.W. Washington, D.C. 20590

SkyWest Airlines' Essential Air Service Proposal for Alpena, MI

Dear Mr. DeVany:

Attached is SkyWest Airlines' proposal for service at Alpena, Michigan. Our proposal is to provide direct service from Alpena to both Minneapolis-St. Paul International Airport (MSP) and Detroit Metropolitan Wayne County Airport (DTW).
SkyWest welcomes the opportunity to serve the Alpena community. Our combination of safe and reliable aircraft, well-timed schedules, and access to one of the world's largest airline networks provides passengers quality air service and will help drive economic growth in the region.



### Delta Air Lines' Network One of the most beneficial aspects of SkyW est's proposal is that it provides Alpena passengers with continued access to Delta Air Lines' global network. Delta is a founding member of the SkyTeam alliance, providing seamless connections aboard 5,400 daily flights and unparalleled access to nearly all parts of the globe.



### Frequency and Schedule As directed by the DOT, we will offer a minimum of 12 round-trip flights per week with daily service to MSP and weekday service to DTW. All flights have been timed to ensure they offer passengers valuable flight schedules that arrive and depart on bank. This means that they have been optimized for maximum connection opportunities in both MSP and DTW, making the service convenient for business and leisure travelers.

With approximately 400 daily departures from MSP and 475 from DTW, Delta operates

more service than any other airline and offers great connections to destinations around the globe.

### Although subject to change, our proposed schedule is as follows:

MSP APN DTW APN 9:00AM I 2:00PM 3:30PM 5:55PM I 1:35AM 1:00PM 4:30PM 6:30PM APN DTW APN MSP

Superior Aircraft 

### Service will be provided using the Canadair Regional Jet 200 (CRJ200) 50-seat turbojet aircraft. SkyWest was recently named the most reliable CRJ200 operator in North America and is one of the largest domestic operators of this reliable, comfortable aircraft type.

All SkyWest CRJ200 aircraft are serviced by one of our highly-trained flight attendants and are equipped with a lavatory to ensure the comfort and convenience of our passengers. Additional details and specifications can be found in the CRJ fact sheet. attached to this document.
Summary 

### SkyWest believes this proposal provides the best overall option for air service in the Alpena community. Given the connectivity at MSP and DTW, the well-timed schedule, and reliable equipment, we expect to see continued growth in the number of passengers utilizing the service. We will also work with community and our airport partners to market the service.
SkyWest is excited about the possible opportunity to provide reliable air service to Alpena, Michigan.

Thank you for your consideration.
Sincerely,

Michael Thompson Vice President- Market Development SkyWest AirlinesSkyWest Airlines Alpena, Ml Essential Air Service Sip 5/15/2012 APN APN MSP DTW TOTALS

Number of round-trips per week 7 5 12

Aircraft type CRJ200 CRJ200 CRJ200

Passenger Revenue Passengers 12,500 10,500 23,000 Average fare $ 89.00 $ 82.00 Revenue $ 1,112,500 $ 861,000 $ 1,973,500

Block Time Trip block time (minutes) 94 59 Total scheduled block time 1,141 511 Total completed block time 98% 1,118 501 1,619

RPMS Passengers 12,500 10,500 Stage length 473 198 5,912,500 2,079,000 7,991,500

ASMs Scheduled departures 728 520 Competed departures 98% 713 510 Stage length**47~** 198 Available Seats 50 50 17,217,200 5,148,000 22,365,200

Revenue $ 1,112,500 $ 861,000 CRJ Direct operating expenses Blk Hr $ 2,301.81 $ 2,572,785 $ 1,153,452 RPM related RPMs $ 0.00341 $ 20,162 $ 7,089 Departure related Departures $ 710.13 $ 506,635 $ 361,882 ASM related ASMs $ 0.00932 $ 160,464 $ 47,979 Total expenses $ 3,260,046 $ 1,570,403 $ 4,830,450

Operating income (loss) $ (2,147,546) $ (709,403) $ (2,856,950)

5% profit margin $ 163,002 $ 78,520 $ 241,522

Annual subsidy requirement 

### $ 2,310,549 

### $ 787,924 $ 3,098,472

SkyWest effective rates per unit Cost per trip $ 4,569 $ 3,082 Cost per passenger $ 261 $ 150 SkyWest cost per block hour $ 2,917. $ 3,134

Effective Subsidy rate per unit Subsidy per trip $ 3,239 $ 1,546 Subsidy per passenger $ 185 $ 75

Load factor 34% 40%

## SkyWest Airlines May 2012
SkyWest Airlines celebrates 40 years of flight in 2012. As 

## a leading air service provider offering global access to millions of people each month, SkyWest partners with the world's largest network carriers including United Airlines, Delta Air Lines, US Airways and Alaska Airlines. With 

### a fleet of 316 aircraft, SkyWest's more than 11,000 aviation professionals operate more than 1, 700 flights each day to 159 destinations throughout North America. SkyWest is known for its industry-leading workforce, exceptional leadership team, and continued solid operational and economic performance. The airline 

### is headquartered in St. George, Utah.

Hubs

Crew domiciles

Maintenance bases

Line stations

Cities currently served

Stations operated

Employees

Average number of daily scheduled departures Chicago O'Hare, Denver, Los Angeles, Minneapolis/St. Paul, Portland, Phoenix, Salt Lake City and San Francisco
Chicago, Colorado Springs, Denver, Fresno, Houston, Los Angeles, Minneapolis/St. Paul, Palm Springs, Phoenix, Portland, Salt Lake City, San Francisco, San Luis Obispo, Seattle and Tucson
Chicago, Colorado Springs, Fresno, Milwaukee, Nashville, Palm Springs, Salt Lake City and Tucson Denver, Houston, Los Angeles, Minneapolis/St. Paul, Phoenix, Portland, San Francisco and Seattle

Total: 159 (39 States, Washington D.C., 5 Canadian Provinces and 3 cities in Mexico) United: 137 Delta: 100 US Airways: 22 Alaska: 7 Shared: 90

SkyWest: 68

11,232 total 9,131 FTEs

United: 1,052 Delta: 545 US Airways: 94Aiaska: 24 Total: 1,715

DEN: 135 IAH: 56 LAX: 137 ORO: 78 POX: 29 PHX: 58 SFO: 154 MSP: 78 SLC:.154

Passengers 24.5 million passengers Carried in 2011
Total revenue 13.6 billion revenue passenger miles* passenger miles flown in 2011 *A Revenue Passenger Mile is equal to one fare-paying passenger flown one mile.

Total aircraft in 316 (All numbers include deliveries and retirements this calendar month) operating fleet
Embraer aircraft: 44 Embraer 120 turboprops
Bombardier aircraft: J..59 CRJ200 aircraft 92 CRJ700 aircraft 21 CRJ900 aircraftPacific8:00UNITEDEXPRESSCentral10:00CONNECTION..........DCUnitedExpress-RegionalJetUnitedExpress-TurboPropDelta-RegionalJetDelta-TurboPropAlaska-RegionalJetUS-RegionalJetSeasonal'YTimeZonesEasternC):1:00USAIRWAYs·EXPRESSSKYWESTAIRLINESROUTEMAPEFFECTIVEMAY2012(updatedmonthly,maynotreflectrecentserviceupdates.)wwmttf'''®WWWW&%W'.C''rr;AtlanticENOON'".......,..L,,_.,_·r;:neJAMAICA-DeltaAlrLines/DeltaConnectionRoute··FutureRouteService-·-RouteservedbyAlaskaAirlines/HorizonAir•DestinationservedbyDeltaIDeltaConnection$DestinationservedbyoneofDelta'sWorldwideCodesharePartners·Timezone(legislatedstandardtimezonesshown.Observedtimemaydiffer.)future.erv•cessubjec::togovemrreotapprooai.SefvL<:ell"l<!yl>eopera:.ecbyoneof:lel:.lscO<lesharep<lf'"..nerauiLnesoroneofDel:a'sConnectLonCamers.Fhgh:sa...subjecttochangewithoutnot.c;e.'

# CRJ200 LR

Number

Number Thrust 50

Two General Electric CF34-381 turbofans 8,729 pounds thrust at takeoff

'**~** .. ,..,.. 

### . . .**~** ..._ .



# .....

Main Entrance 

# J 1 

### 2 3 4 

### 5 

# Fact Sheet for 

# Canadair Regional Jet

6 Maximum takeoff weight (Series zooLR)

Operating weight empty Maximum fuel load Maximum payload



### 7

..... 8 9 10 11 12 13 

# L Emergency Exit 53,000 lbs 30,500 lbs 14,305 lbs 13,500 lbs 24,041 kg 13,835 kg

6,489 kg 6,124 kg