### BEFORE THE **DEP AR**  **TMENT OF**

**T RANSPOR** 

**TAT ION**  **WA SHINGTON, D.C.** 

__________________________________________ ______ ) Essential Air Service at ) ) 

### AL **TOONA, PENNSYL**

**VA NIA**  ) **OST -**  **2002 -**  **11 446**  **JOHNSTOWN, PENNSYL VA**  **NIA ) OST**  **- 2002**  **- 11**  **451** ) Under 49 U.S.C. §41731 et seq. )

__________________________________________ ______) **SIL VER**  **AIR**

**WAY S**  **P ROPOSAL** 

**TO P**  **ROVIDE S**  **UBSIDIZED AIR SER**  **V ICE**  **AT AL**  **TOONA A**  **ND JOHNSTOWN, PENNSYL VA**  **NIA** Correspondence with regard to this document should be addressed to: Mickey Bowman Vic e President Essential Air Service Silver Airways 1100 Lee Wagener Blvd, Suite 201 Ft. Lauderdale, FL 33315 Telephone: 954

- 302

- 5929 Fax: 270

- 689

- 2180 E

- Mail: mbowman@gosilver.com Silve r Airways cordially submits its proposal to provide subsidized air service to the communities of Alto ona and Jo hnstown, Pennsylvania to the hub at Washington’s Dulles International Airport. Silver Airways proposes to operate flights , under its exi sting Un ited Airlines codeshare. At the time of this filing, a definitive agreement to extend Silver Airways existing codeshare to these routes has not been consummated therefore this bid is contingent upon that agreement being finalized . Negotiations are ongoing and we believe resolution should be reached in the next few weeks, well before community comments will be due back to the DOT. Dulles International Airport is a major Unit ed Airlines ’ hub with nearly 300 online daily departures to over 100 cities worldwi de. Other carriers boost the Dulles daily departure average to nearly 390 flights. The bank structure at Dulles is designed to maximize connections and enable a seamless travel experience. Via the United Airlines codeshare passengers will continue to enj oy through ticketing and pricing, online and interline baggage connectivity and exposure throughout the Global Distribution Portals. Additionally passengers would continue to enjoy conveniences such as advanced seat selection and participation in United A irlines’ Frequent Traveler Program. In compliance wit h Public Law 100

- 223, Silver Airways proposes to operate these flights using Saab 340 B + turb oprops that are pressurized and accom modate 34 passeng ers . The 340 B+ features additional amenities such as stand up h eadroom , an active noise cancellation system, and an onboard lavatory. Additionally all Silver Airways flights will operate under full Part 121 regulations and each flight will have a Flight Attendant onboard. One of the hallmarks of the Silve r Airways operation is our ability to provide safe and reliable transportation. To ward this end, Silver Airways intends to utilize its regional maintenance base in DuBois, Pennsylvania. This base, established in the fall of 2008, is staffed by some of our airline’s most seasoned technicians. Additionally Silver Airways plans t o avail itself of a spare aircraft that will be positioned in Dulles as part of this operation . With this spare aircraft we have great flexibility in responding to any operational c hallenges and can assure these communities receive the level of operational performance they desire.On

- line United Domestic Destinations Available Via the Dulles Hub: Allentown, PA; Albuquerque , NM; Albany, NY; Atlanta, GA; Austin, TX; Hartford, CT; Binghamton, NY; Beckley, WV Nashville, TN; Boston, MA; Burlington, VT; Buffalo, NY; Columbia, SC; Charlottesville VA; Charleston, SC; Clarksburg, WV ; Cleveland, OH; Charlotte, NC; Columbus, OH; Color ado Springs, CO; Charleston, WV; Cincinnati , OH; Dayton, OH; Denver, CO; Dallas, TX; Detroit, MI; Newark, NJ; Greensboro, NC; Greenville, SC; Honolulu, HI; White Plains, NY; Huntsville, AL; Houston, TX; Indianapolis, IN; Jacksonville, FL; New York JFK, NY; Las Vegas, NV; Los Angeles, CA; New York LaGuardia, NY; Kansas City, MO; Orlando, FL; Harrisburg, PA; Morgantown, WV; Manchester, NH; Miami, FL; Minneapolis, MN; New Orleans, LA; Oklahoma City, OK; Chicago, IL; Norfolk, VA; Portland, WA; Philadelphia, PA; Phoenix, AZ; Pittsburgh, PA; Pensacola, FL; Providence, RI; Portland, ME; Raleigh Durham, NC; Richmond, VA; Roanoke, VA; Rochester, NY; San Diego, CA; San Antonio, TX; Savannah, GA; State College, PA; Louisville, KY; Seattle, WA; San Francisco, CA; Shenan doah Valley, VA; San Juan, PR; Salt Lake City, UT; Sacramento, CA; St Louis, MO; Syracuse, NY; Tampa, FL; Tulsa, OK, Knoxville, TN. On

- Line United and Star Alliance International Destinations Available Via the Dulles Hub: Accra, Ghana; Amsterdam, Nether lands; Aruba, Aruba; Brussels, Belgium; Paris, France; Cancun, Mexico; Moscow, Russia; Dublin, Ireland; Dubai, Arab Emirates; Rome, Italy; Frankfurt, Germany; Grand Cayman, Cayman Islands; Sao Paulo, Brazil; Geneva, Switzerland; Kuwait City, Kuwait; London , England; Madrid, Spain; Manchester, England; Montego Bay, Jamaica; Mexico City, Mexico; Munich, Germany; Tokyo, Japan; Beijing, China; Punta Cana, Dominican Republic; St Thomas, Virgin Islands; St Croix, Virgin Islands; Ottawa, Canada, Montreal, Canada, Toronto, Canada, Zurich, Switzerland.**Service Option 1 36**  **We ekly freque**  **ncies between Altoona, Johnstown, and Dulles International Airport**  Silver Airways proposes to operate these flights unde r its established codeshare relati onship with United Ai rlines . The timing of these flights would be optimized for connections to and from the United Airlines connecting banks in Dulles

. This service constitutes three weekday roundt rips operating i n a “round robin” fashion. Three total roundtrips would be op erated over the weekend period as well **Silver Airways Sample Flight Schedule**  **Service Option 1 FROM**  **TO DEP**  **ARR FLT**  **EQUIP FREQ**  **STOP STA**  **STA TIME**  **TIME NUM**  **Altoona Dulles**  **5:45 am**  **7:32 am**  **4011 SF3**  **X7 1**  **Altoona Dulles**  **1:53 p**  **m 3:**  **42 pm 4007**  **SF3 Da**  **ily 1**  **Altoona Dulles**  **7:59 pm**  **8:56 pm 4009**  **SF3 X67**  **0 Dulles**  **Altoona 12:26 pm**  **1:26p m**  **4006 SF3**  **Daily 0**  **Dulles Altoona**  **5 :45 pm**  **7:36 pm 4008**  **SF3 X67**  **1 Dulles**  **Altoona 10:02**  **pm 11:59 pm**  **4025 SF3**  **X6 1** 

**----------------------------------------------------- -----------------------------------------------------------------**  **Johnstown Dulles**  **6:32 am**  **7:32 am 4011**  **SF3 X7**  **0 Johnstown**  **Dulles 2:42 p**  **m 3:**  **42 pm 4007**  **SF3 Daily**  **0 Johnstown**  **Dulles 7:08**  **pm 8:56 pm**  **4009 SF3**  **X6 7**  **1 Dulles**  **Johnstown 12:26 pm**  **2:21 p m**  **4 006**  **SF3 Daily**  **1 Dulles**  **Johnstown 5:45 pm**  **6:53 pm**  **4008 SF3**  **X67 0**  **Dulles Johnstown**  **10:02 pm 11:07**  **pm 4025**  **SF3 X6**  **0** (Note: This Schedule is for illustrative purposes and may not reflect the final published product)**Silver Airways Pr oposal:**  (98% Completion Factor Assumed ) Annual Stats & Assumptions Aircraft Type SF3 Departures 3,058 Block Hours 2,456 O&D Passengers 25,000 Load Factor 40% Avg Fare 82 A/C Miles 243,385 RPMs (000) 3,310 ASMs (000) 8,275

Pax Ticket Revenue 2,054,840 Operating Expense Fuel 1,478,562 Crew 662,450 Maintenance 1,616,073 Station 1,091,403 Distribution 288,207 A/C Ownership 341,642 Promotion 24,000 Fixed Overhead 261,500 Total 5,763,835
Operating Loss 3,708,995 5% Profit Margin on Cost 288,192 EAS Subsidy Required **3,997,187** Subsidy / Pax 160In conclusion, Silver Airways believes that this pro posal will pro vide these Pennsylvania communities wit h superior air s ervice options . We feel the passengers will ben efit from seamless, codeshare service to the United Airlines hub in Washington Dulles International Airport. With a renewed focus on schedule reliability, Silver Airways hopes to grow these m arkets. Silver Airways has proven itself as a dependable Essential Air Service provider and brings a commitment to work with these communities to address their travel needs to the relationship. Integrity of service that has been a hallm ark of the Silver Airways operat ion and we look forward to extend ing our brand into the mid

- Atlantic reg ion. Respectfully Submitted: March 14, 2012

______________________ Mickey Bowman Vice Pr esident Essential Air Service Silver Airways