### . .tPARTMEN TO F ^-ANSPORTATIO N -'OKE TOPERATION S I ! np T 

### iC Tn A<=\

: 3 3 

# Ai rGhoic e O n Multi-Aer o Inc . d/b/ a Ai rChoic e On e Proposalt o Provid e Essieritiii J Ai rServic e a t Watertown , Sout h Dakot a Docke t DOT-OST-2001-1064 4

Direc t Inquirie s Regardin g thi s Proposalto :

Shan e Storz , CE O Ai rChoic e On e Airline s 1230 0 Ol d Tesso n Rosd , Suit e 20 0 F, Sain t Louis , M O 6312 8 Phone : (366 ) 435-984 7 Fax : (314 ) 843-352 7 E-mail : 3hane@airchoiceone.cc m

### DEPARTMEN TO F , iANSPORTATIO N OGKE TOFERATiON S 

## zji ! 

## c n i 1 A^n 3 

# Ai rChoic e On e
Ai rChoic e On e i s awar e o fth e man ychallenge s facin g th e Watertown , Sout h Dakot a community . W e understan d th e effort s o fa dedicate d ai rcarrie rar e critica l t o havin g schedule d airlin e servic e i n th e future . Ai rChoic e On e i s tha t ai rcarrie ran d w e believ e th e strateg youtline d i n ou rproposa l wil l support an d complemen t airport developmen t efforts . W e hav e prove n ou rstrateg ywork s wit h othe rEA S communitie s an d w e ar e committe d t o deliverin g thes e sam e result s fo rWatertown . Ou rproposa l wil l giv e th e bes t acces s t o th e nationa l transportatio n syste m fo rth e communit yat reasonabl e price s an d mayb e considere d a s a n individua l offering . Ou rproposa l allocate s substantia l resource s t o support marketin g efforts . Ou r achievement s i n ou rothe rEA S market s demonstrat e tha t ou rmarketin g strategie s ar e successful . Throug h on-sit e communit youtreach , community-specifi cadvertising , consisten t fligh t schedules , an d outstandin g custome rservic e w e wil l quickl ybuil d consume rrecognitio n i n th e communit yensurin g retentio n o fcurren t passenge r momentu m whil e als o workin g t o increas e demand . W e commi t t o providin g yo u wit h outstandin g servic e an d wil l continu e workin g wit h yo u throughou t ou rter m t o provid e th e next leve l o fai rservic e tha t wil l brin g u s al l success . !0/!2/201 1

# 1

Ai rChoic e On e ^•i- ' :y^;/f.'^'«:-''' :



### Ai rChoic e On e wil l tea m wit h you rloca l airport t o rais e awarenes s abou t you r communities ' ai rservic e an d increas e enplanements . •LOCA L AIRPOR TINITIATIVE S •Provid e Groun d Handlihg : . --rii,-:^^-' ' l'-; ' " •Provid e Financia l Suppor t Throug h Discounte d Fue l Costs , Landin g Fees , an d Renta l Agreement s •Provid e Telephon e an d Interne t Servic e •Educat e th e Communit yabou t th e EA S Progra m an d Ai rChoic e One' s Servic e •Draf t an d Distribut e Pres s Release s •Communit yInvolvemen t •Participat e i n T V an d Radi o Coverag e •Distribut e Informatio n Pertainin g t o Ai rChoic e On e a t Loca l Busines s Event s •Hig h Visibilit yPresenc e o n Cit yWebsite(s ) an d Electroni cSignag e

lQ/i:/201 1

# Ai rChoic e On e !l^aiRk^ii©i^ji0t i araiegpttRS f

'ift-.-'^f'- ^

5 .-s 

### Ai rChoic e On e wil l tea m wit h you rchose n destinatio n airport t o promot e touris m opportunitie s an d encourag e ai rtrave l t o you rcommunity , again , increasin g enplanements .
•MINNEAPOLIS-ST.PAU L INTERNATIONA L AIRPOR T(MSP ) INITIATIVE S •EA S Communitie s Receiving . Reliabl e Servic e t o Hub'Airport s Hav e Benefite d Fro m a Stead y Increas e i n Ridershi p •Marke t Vacatio n Package s t o MS P an d Beyon d an d t o Loca l Communitie s Fro m MS P •Ai rChoic e On e Flight s wil l b e Service d b yDelt a Groun d Service s (DGS )

io/;:/20i i

# Ai rChoic e On e

Ai rChoic e On e i s dedicate d t o workin g wit h you rcommunit y t o reinvigorat e th e servic e a t you rairpor t an d sustai n growt h tha t wil l launc h u s int o th e future .
•WE^iiR E YOU R NEJGHBOR S •Corporat e Headquarter s i n Midwes t •Increas e Loca l Caree rOpportunitie s •W E AR E I N YOU R COMMUNIT Y •Routin e On-Sit e Sale s Visit s •Chambe ro fCommerc e Participatio n an d Membershi p •Airpor t Affiliat e Participatio n •STRON G PUBLI C RELATION S AN D MEDI AOUTREAC H •Busines s Incentiv e Program s •Trave l Agen t Discount s •Busines s t o Busines s Communicatio n •Attendanc e a t Publi cEvent s •W E KEE P YO U INFORME D •Monthl yAirpor t Boar d Update s
10/12/201 1^



# Ai rChoic e On e 

# Sswr^lliilitsiiiaijli^isiiteK? : Ai rChoic e On e reinvest s i n ou rserve d communities . fev •TRADITIONA L MEDI A •Radio-Tal k

Shows/Commercial s •T V Commercial s an d E^^t^p.y.erage r •Print-Newspaper/Magazines""'*- ' •... .

. •Billboard s •We b Base d

- E-Blasts - Constan t Contac t

- Monthl yE-Mai l Promotion s

- Cit yRepresentatio n o n Ou rWebsit e •SOCIA L MEDI A •Twitter , Facebook , Linl<e d I n . , ..,.-.^.-,. . - '..... " , .. ' .,.-...,...•.• . •INTERACTIV E MEDI A •Contest s •Yo u TubeA/ideo s •EVENT S AN D SPONSORSHIP S •Loca l Charitabl e Suppor t - Marc h o fDimes , Make-A-Wis h Foundation , Re d Cross , etc . •Business/Communit ySuppor t - Gol fTournaments , Busines s Luncheons , Ai rShows , etc . •COMMUNIT YTICKE TOFFIC E 10/12/201 1*^y^ : 

# Ai rChoic e On e 

# Reliabi : iSy^:0r6»/t h Airlin e Completio n Ratio s 10 5
O S C O 10 0 9 5 Q i 9 0 Q . 

### E o u 8 5 8 0 7 5

Work s Cited : T-lO O Segmen t Repor t DO T201 0 Cjlenda rYea r

Am . Gr . Lake s Sea Port Ai r Eagl e Choic e



### Airlin e CONSISTEN TSERVIC E I S KE Y •Prove n Succes s i n Othe rEA S Market s •Build s Passenge rConfidenc e i n Carrie r

~ •Dedicate d Aircraf t fo ryou rAirport -102 % Flight-Completio n Rati o a s Reporte d b yDO TY R 201 0

- Spar e Aircraf t Availabilit y 

### AI R CHOIC E ONE' S REVENU E INCREASE D B YOVE R 20 % Y E 201 0 VS . 200 9

10/J2/2O1 1^



# Ai rChoic e On e

VISIBILIT Y •Globa l Distributio n System s -Sabre , Apollo , Worldspan , Travelport , Amadeus , etc . •Consume rSite s -Expedia , Travelocity , Priceline , Orbitz , etc . •We b base d bookin g -wvwv.airchoiceone.co m •Cal l Cente r -Ope n 7 Day s a Wee k CONNECTIVIT Y •Unite d Airline s Agreemen t •Additiona l Legac yAgreement s Pendin g 

## bnc^ini i ff;H;'.v-:'*-^' . •'^•••/7^-••'"--•

__, . , _^ . Departin g nightfra m Burlington , l A(BRL)i o Ne wYor k City . N Y(LGA ) Wad . Ju l 20 , 201 1 - Wid . Ju l 27 . 201 1 fo r1 .idul l i >!• '

A n r.iv.ini : On. > S29 6 T;ia l 532 6 ,
•• - '-'->- . J- l •!. . S29 6 S33 0 T3!i|.i;-2 S To;i1S36 7

Ste p 1 : Selec t a Oepartin ; Fligh t Froi n S t Louis , M O t o Burlington , l A ;3U!i>;ii.=:!tf;;,iu | :U = 

### $60 : Lowes t Fi n SutTunir v i0/12/201 1 55 0

# Ai rChoic e On e
Ai rChoic e On e offer s th e righ t pric e fo rth e righ t ticke t a t th e righ t time . \A/e,tak e al l thing s int o consideratio n an d ente rth e marke t wit h lo wfares . 'W e wor k har d t o establis h a winnin g pric e poin t throug h targete d marke t analysis . W e believ e consisten t pricin g build s consume r confidence .
•BUILDIN G & SUSTAININ G RIDERSHI P THROUG H PRIC E •Introductor yFare s Pea k Interes t an d Drive Passenger s t o Ai rChoic e On e an d You rAirpor t •On-Goin g Affordabl e Fare s = Ful l Planes ! •Ful l Plane s Establis h th e Custome r Bas e Neede d t o Reduc e Futur e Subsid yRequirement s Ai rChoic e On e Ridershi p Growt h EA S Market s 2010-2011 * 3,00 0 S 2 2,50 0 < u S 2,00 0 I 1,50 0 : 2 1,00 0 50 0 0 H201 0 EJ20 n I
Mont h o fServic e
'Numbers Reflec

t O & D !0/!J/201 1

# 1

Ai rChoic e On e AI R CHOIC E ON E WIL L BUIL D O N MINNEAPOLIS-STPAU L INTERNATIONAL' S MOMENTUM !

I0/J2/201 1

# 1

Ai rChoic e On e

OPTIO N 1 , 2 YEA R SERVIC E - MS P SERVIC E CESSN AGRAN D CARAVA N •- - Watertown , Sout h Dakot a - Minneapolis-St . Pau l Internationa l Airpor t Cessn a Gran d Carava n 3 6 Roun d Trip s Pe rWee k

! 0/12/201 1" ^



# Ai rChoic e On e r > i ^ l^atertowhy?Si(3uth:Dakbtai^'Gessna^GrahdiGar a •;>.:.r-. ; W.-v^^

^ ;.;K^iOptibh>a:f:-2^apSer?vic e -.^^.v^Ji V ^^H-".^-VI 1 

### g36<fIota|yRGijnd.fr i pslP^V ^ Watertown , Sout h Dakot a - Minneapolis-St . Pau l Internationa l Airpor t - Carava n Operatio n Revenue s ATY-MS P Revenue s $1,390,40 0 Othe rRevenue s 13,90 4 Tota l Operatin g Revenue s $1,404,30 4 Direc t Operatin g Expense s Flyin g Operation s Fue l an d Oi l Maintenanc e Aircraf t Lease s Tota l Direc t rMarketin g Ij^:-^ ^ Indirec t Tota l Operatin g Expense s Operatin g Los s Profi t Elemen t (5 % tota l Ope n Exp. ; Compensatio n Require d Compensatio n pe rPA X Compensatio n pe rDepartur e 10/12/201 1 $ 618,10 6 1,100,22 8 885,95 1 425.00 0 $3,029,28 5 803.03 0 $3,892,31 5 $2,488,01 1 194.61 6 $2,682,62 7 $15 2 $72 9 # Passengers : Averag e Fare : Departures : Bloc k Hours : Revenu e Passenge rMiles : Availabl e Seat Miles : 17,60 0 $79.0 0 3,67 9 4.12 1 3,379.20 0 6,340.23 9 Representativ e Schedul e Departur e ATY@S:OOAM a MS P @ 6:3 5 A M C I ATY@8:25AMC T MSP(S ) 10:0 0 A M C

T AT Y(5 ) 11:5 0 A M a MSP @ 1:2 5 PMC T MS P @ 12:0 0 PMC T ATY@ 1:3 5 P M C

T ATY(5)3:1 5 PMC T MS P @ 4:5 0 P M C

T ATY@ 6:4 0 P M C

T MS P @ 9:0 0 P M C

T . Arriva l MS P (5 ) 6:0 5 A M C

T AT Y(5)7:4 0 A M C

T MS P @ 9:3 0 A M C

T AT Y@ 11:0 5 A M a MS P (5 ) 12:5 5 P M C

T AT Y(5 ) 2:3 0 PMC T AT Y@ 1:0 5 P M a MS P @ 2:4 0 P M C

T MS P @ 4:2 0 PMC T AT Y(S ) 5:5 5 P M C

T MS P (S ) 7:4 5 P M C

T AT Y@ 10:0 5 P M a

### Prove n Enplanemen t Increase s i n EA S Market s Successfu l Pricin g Strateg y Demonstrate d Growt h i n Communit ySuppor t Prove n Reliabilit y Outstandin g Completio n Rati o Grea t Hu b Connectivit y Successfu l Marketin g an d Publi cRelation s Outreac h Rais e Awarenes s Abou t Loca l Ai rServic e W e Cate rt o Communit yan d Busines s Need s

10/!2,'201 1