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Air Choice One

~

Multi-Aero Inc.

d/b/a

Air Choice One

.>tP~lniENT OF

, ... lhJ,~PQ.RTATION

... hA\tl Oi-ERATJO;';)

l:lq JUN- 3 P 2: 03

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Proposal to Provide Essential Air Service at

Fort Dodge, Iowa

Docket DOT-OST-2001-10682

Mason City, Iowa .

Docket DOT-OST-2001-10684

June 2, 2014

Direct Inquiries Regarding this Proposal to:

Shane Storz, CEO

Air Choice One Airlines

12300 Old Tesson Road, Suite 200 F, Saint Louis, MO 63128

Phone: (866) 435-9847 Fax: (314) 843-8527 E-mail: shane@airchoiceone.com
Air Choice One ....-:

The position Fort Dodge and Mason City currently find themselves in we have faced before as a true partner

with another EAS community. Jonesboro. Arkansas. We are prepared to step up to the challenge in your

communities. Great new hubs and attractive fares will create excitement and draw customers back to your

airports. The Cessna Grand Caravan has the comfortable. spacious, well-appointed cabin needed to attract

and retain travelers and it is right-sized for this rebuilding period. Reliable schedules and outstanding customer

service will generate the customer loyalty and repeat business that is our common goal and puts us on the path

to success.

Air Choice One has shown our commitment to serving Fort Dodge and Mason City throughout the proposal

process which began in early 2014. Looking beyond this current period, our commitment extends even further

to pursuits of previous EAS contracts. In those previous pursuits Fort Dodge and Mason City have elected to

go in another direction, selecting other carriers. Those less determined might have given up; however, Air

Choice One has remained focused on Fort Dodge and Mason City. We believe we are the right carrier for

these cities and we are committed to doing right by these cities. We look forward to becoining your EAS

partner!

06/02/2014
Air Choice One

~

AVERAGE ENPLANEMENTS: At the

2011 RFP, Jonesboro was averaging

.1.5enplanements per day. For the

year ending March, 2013 Jonesboro

averaged 16.5 daily enplanements

exceeding the DOT minimum of 10

per day by 65%.

By improving service reliability,

introducing each community to a new

hub, offering VIP travel at a

reasonable price, and implementation

of an aggressive marketing plan we

believe we will achieve similar results

in the communities of Fort Dodge and

Mason City.

Jonesboro Total Passenger Maturation

DOT Fiscal Year

l~OOO

10,000 /

9,000

8,000

• 7.000 •

i!'

MOO J 5,000

4,000,

3,000

2,000

1,000

0

FY1~11 FY11-12 FY12.13

Fiscal Year

IIAIrOlolct' one

iii PrevIou, CIIMfII'

AVERAGE PER PASSENGER SUBSIDY: Also in the 2011 RFP, Jonesboro's average per passenger subsidy for the 12

months ended January, 2011, was $840. For the period ending September, 2013, the average had been reduced to $177

representing an enormous improvement.

Fort Dodge and Mason City have both reported year over year declines in most recent enplanement numbers. Air Choice

One believes there is untapped potential.

06/02/2014
Air Choice One

ST. LOUIS LAMBERT INTERNATIONAL

GREAT CONNECTIONS TO LOW PRICE CARRIERS!

06/02/2014

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CHICAGO O'HARE INTERNATIONAL AIRPORT

ENDLESSDOMESTIC AND INTERNATIONAL CONNECTIONS!

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Air Choice One

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Exceptional Cargo Space

06/02/2014

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Proven Reliability

-Air Choice One is open 10discussions related to Interior configurations and will do our best to accommodate preferences whenever possible.
Air Choice One

•••••

Market Growth StrategyMarketing Investment

FLIGHTS TO

Air Choice One reinvests in our served communities and will grow ridership

• TRADITIONAL MEDIA

• Radio-Talk Shows/Commercials

• TV Commercials and Event Coverage

• Print-Newspaper/Magazines

• Billboards

• Web Based

- E-Blasts

- Monthly E-Mail Promotions

- City Representation on Our Website

• SOCIAL MEDIA

• Twitter, Facebook, Linked In

• INTERACTIVE MEDIA

• Contests

• You TubeNideos

• EVENTS AND SPONSORSHIPS

• Charitable Support to Resident Organizations and Local Chapters of National Non-Profit Organizations

• Business/Community Support through Golf Tournaments, Business Luncheons, Air Shows, etc .

• COMMUNITY TICKET OFFICE

t'

06/02/2014
Air Choice One offers the right price for the right ticket at the right time and offers many convenient ways to book your travel through

our website, toll.free calling, local travel agencies, and online booking sites.

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• BUILDING & SUSTAINING RIDERSHIP

THROUGH PRICE

• We work hard to establish a winning

price point through targeted market

analysis. We take all factors into

consideration and enter the market with

low fares.

• Introductory Fares Peak Interest and

Drive Passengers to Air Choice One

and Your Airport

• On-Going Affordable Fares = Full

Planes!

• We believe consistent pricing builds

consumer confidence

select YOtlf departure to Chicago ~. Mit t1

-- -

• CONVENIENT OPTIONS MAKE BOOKING

TRAVEL A SNAPI

• www.airchoiceone.com

• Call us at 1-866-I-FL Y-VIP

• Visit your local Travel Agent

• Find us on Travelocity, Expedia,

Priceline, Kayak and more

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06/02/2014
Air Choice One ••••...--

Options Index

Combined Service -

Fort Dodge & Mason City/ Iowa

OPTION C1* - COMBINED SERVICE, 2 YEAR SERVICEOR 4 YEAR DISCOUNTED SERVICE- STL/ORD

CESSNAGRAND CARAVAN OR PIPER NAVAJO

Fort Dodge, Iowa

Cessna Grand Caravan or Piper Navajo

Cessna Grand Caravan or Piper Navajo

Cessna Grand Caravan or Piper Navajo

FOD-STL

Mason City, Iowa - Dual Hub

MCW--ORD

MCW - FOD - STL

18 Round Trips Per Week

18 Round Trips Per Week

6 Round Trips Per Week

OPTION C2* - COMBINED SERVICE,2 YEAR SERVICEOR 4 YEAR DISCOUNTED SERVICE- DUAL HUB - STL & ORO

CESSNA GRAND CARAVAN OR PIPER NAVAJO

Fort Dodge, Iowa - Dual Hub

Cessna Grand Caravan or Piper Navajo

Cessna Grand Caravan or Piper Navajo

Cessna Grand Caravan or Piper Navajo

Cessna Grand Caravan or Piper Navajo

FOD-STL

FOD - MCW - ORD

Mason City, Iowa - Dual Hub

MCW--ORD

MCW - FOD - STL

18 Round Trips Per Week

6 Round Trips Per Week

18 Round Trips Per Week

6 Round Trips Per Week

06/02/2014 *Requires selection by both communities. Optional 4 Year Service Discounted in Years 3-4.
Air Choice One

Combined Service - Fort Dodge & Mason City, Iowa -

Cessna Grand Caravan or Piper Navajo

'Option 0:

2 Year Service or 4 Year Discounted Service (Discounted in Years 3-4)

FOD/18 & MCW/24 Total Round Trips Per Week - Based on 97% Completion Rate

Combined Service - FOD/MCW - St. Louis/Chicago O'Hare International Airports - Caravan or Navajo

Operation Revenues

FOD-5TL/MCW-ORD/MCW-FOD-5TL Revenues

Other Revenues

Total Operating Revenues

$1,149,800

a

$1,149,800

# Passengers:

Average Fare MeW-ORD or FOD-STl:

Average Fare MCW-FOD-STl:

Departures:

Block Hours:

Revenue Passenger Miles:

Available Seat Miles:

16.200

$69.00

$79.00

3.426

5,756

4,167,000

7,694,319

Direct Operating Expenses

Flying Operations

Fuel and Oil

Maintenance

Aircraft Leases

Total Direct

Marketing

Indirect

Total Operating Expenses

Operating Loss

Profit Element (5% total Oper. Exp.)

Compensation Required

Compensation per PAX

Compensation per Departure

06/02/2014

$ 974,430

1,929,234

1,686,063 ,.,

1.111,000

$5,700,727

100,000

1.904,646

$7,705,373

$6,555,573

385,268

$6,940,841

$428

$2,026

Departure Arrival

FaD 6:00AM STl8:00AM

STL9:00AM FaD 11:00 AM

FOD4:S0 PM STL6:50 PM

STL 7:10 PM FOD9:1O PM

~

"5 STl6:00AM FOD 8:00AM ."~~

V>

u FOD 8:20 AM MCW8:50AM

~

~ MCW 9:10 AM FOD9:40AM

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c

~ FaD lO:ODAM STl12:00 PM

•

~~~ MCW5:30AM ORO 7:15 AM

~

ORO 7:45 AM MCW9:30AM

MCWll:00AM ORO 12:45 PM

ORO 1:15 PM MCW 3:00 PM

MeW 4:00 PM ORO 5:45 PM

ORO 6:15 PM MCW8:00PM

"Requires selection by both communities
Air Choice One

~--

Combined Service - Fort Dodge & Mason City, Iowa -

Cessna Grand Caravan or Piper Navajo

'Option C2:

2 Year Service or 4 Year Discounted Service (Discounted in Years 3-4)

FOD/24 & MCW/24 Total Round Trips Per Week - Based on 97% Completion Rate

Combined Service - Dual Hub - FaD & MCW - St. Louis & Chicago O'Hare International Airports - Caravan or Navajo

15,000

$69.00

$79.00

3,296

6,006

3,390,000

6,566,077

# Passengers:

Average Fare MCW-ORD or FOD-STL:

Average Fare MCW-FOD-STL or FOD-MCW-ORD:

Departures:

Block Hours:

Revenue Passenger Miles:

Available Seat Miles:

$1,085,000

o

$1,085,000

Operation Revenues

FOD-STLjFOD-MCW-ORDj

MCW-ORDjMCW-FOD-STL Revenues

Other Revenues

Total Operating Revenues

Direct Operating Expenses

Flying OperatiDns

Fuel and Oil

Maintenance

Aircraft Leases

Total Direct

Marketing

Indirect

Total Operating Expenses

Operating Loss

Profit Element (5% total Oper. Exp.)

Compensation Required

Compensation per PAX

Compensation per Departure

06/02/2014

$935,906

2,012,962

1,759,237

1.111,000

$5,819,105

100,000

2,192,233

$8,111,338

$7,026,338

405,567

$7,431,905

$495

$2,255

Departure Arrival

FOD 6:00AM 5Tl8:00AM

•• "'i STlB:20AM FaD 10:20 AM

"0

.c•• FOD 11:30 AM STL 1:30 PM u

'"•• $Tl2:00 PM FOD 4:00 PM

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ro~ FOD4:50 PM STL6:50 PM

<=••~ Sll7:10 PM fOD 9:10 PM ~

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•• STL8:00AM FaD 10:00 AM a:

FaD 10:30 AM Mew 11:00 AM

Mew 11:30 AM ORO 1:1$ PM

Departure Arrival

Mew 5:30AM ORD7:1$AM

•• "'i ORD7:45 AM MCW 9:30 AM

"0

.c•• Mew 11:30 AM ORO 1:15 PM u

'"•• ORO 1:45 PM MCW 3:30 PM

>

'"j'l MCW4:00 PM ORD5:45 PM

<=

••~ ORO 6:15 PM Mew 8:00 PM ~

C-

•• ORD 9:00 AM Mew 10:45 AM a:

Mew 11:15 AM FOO11:45 AM

FOO 12:15 PM 5TL 2:15 PM

*Requires selection by both communities
Air Choice One

OPTION Fl, 2 YEAR OR 4 YEAR SERVICE - STL

.CESSNA GRAND CARAVAN OR PIPER NAVAJO

Fort Dodge, Iowa - St. Louis Lambert International Airport

Cessna Grand Caravan or Piper Navajo

OPTION F2, 2 YEAR or 4 YEAR SERVICE • STL

CESSNA GRAND CARAVAN OR PIPER NAVAJO

18 Round Trips Per Week

Fort Dodge, Iowa. - St. Louis Lambert International Airport

Cessna Grand Caravan or Piper Navajo Year 1-18 Round Trips Per Week

Years 2-4 - 24 Round Trips Per Week

06/02/2014

FOR ADDITIONAL OPTIONS C1* & C2* - DUAL HUB SERVCE - SEE COMBINED SERVICE OPTIONS INDEX

-Requires selection by both communities
Air Choice One

~

Fort Dodge, Iowa - Cessna Grand Caravan or Piper Navajo

Option F1: 2 Year Service or 4 Year Service

18 Total Round Trips Per Week - Based on 98% Completion Rate

Fort Dodge, Iowa - St. Louis Lambert International Airport - Caravan or Navajo

Representative Schedule

Departure Arrival

FOD6:00AM 5Tl 8:00 AM

STL8:30AM FOO 1O:30AM

FOD 11:00 AM STll:OOPM

STl1:30 PM FOD3:30 PM

FOD4:00PM STlG:OO PM

$TL6:30 PM FOD8:30PM

Operation Revenues

FOD-STLRevenues

Other Revenues

Total Operating Revenues

Direct Operating Expenses

Flying Operations

Fuel and Oil

Maintenance

Aircraft Leases

Total Direct

Marketing

Indirect

Total Operating Expenses

Operating Loss

Profit Element (5% total Oper. Exp.)

Compensation Required

Compensation per PAX

Compensation per Departure

06/02/2014

Year 1

$ 538,200

o

$ 538,200

$ 564,144

943,894

854,803

555.500

$2,918,341

50,000

1.014.810

$3,983.151

$3,444,951

199.158

$3,644.109

$467

$1,980

Year 2-4

$ 655,500

o

$ 655,500

$ 564,144

943,894

854,803

555.500

$2,918,340

50,000

1.046.520

$4,014,860

$3.359.360

200,743

$3,560.103

$375

$1,935

# Passengers:

Average Fare:

Departures;

Block Hours:

Revenue Passenger Miles:

Available Seat Miles:

# Passengers:

Average Fare:

Departures:

Block Hours:

Revenue Passenger Miles:

Available Seat Miles:

Vearl

Years 2-4

7.800

$69.00

1.840

2,918

2,073,600

4,226,826

9,SOO

$G9.00

1,840

2,918

3,135,000

4,843,238
Air Choice One

•••••

Fort Dodge, Iowa - Cessna Grand Caravan or Piper Navajo

Option F2: 2 Year Service or 4 Year Service

l8/Year 1 and 24/Years 2-4 Total Round Trips Per Week

Based on 98% Completion Rate

Fort Dodge, Iowa - St. Louis Lambert International Airport - Caravan or Navajo

, Representative Schedule

Departure Arrival

'00 06,00 AM STL 08:00AM

STl08,30AM '00 10,30AM

FODll:00AM STl 01:00 PM

STl 1:30 PM FOO 3:30PM

'"

• c

STl 12:00 PM '00 2:20PM

.0

:;t FOD 2:30PM STl 5:00PM

'00 4:00PM STl 6:00PM

STl 6:30PM FaD 8:30PM

Operation Revenues

FOD-STLRevenues

Other Revenues

Total Operating Revenues

Direct Operating Expenses

Flying Operations

Fuel and Oil

Maintenance

Aircraft Leases

Total Direct

Marketing

Indirect

Total Operating Expenses

Operating Loss

Profit Element (5% total Oper. Exp.)

Compensation Required

Compensation per PAX

Compensation per Departure

06/02/2014

Year 1

$ 538,200

o

$ 538,200

$ 564,144

943,894

854,803

555.500

$2,918,341

50,000

1,014,810

$3,983,151

$3,444,951

199,158

$3,644,109

$467

$1,980

Year 2-4

$ 931,500

o

$ 931,500

$ 644,736

1,245,683

1,167,007

555,500

$3,612,926

50,000

1.100,019

$4,762,945

$3,831,445

238,147

$4,069,592

$301

$1,675

#I Passengers:

Average Fare:

Departures:

Block Hours:

Revenue Passenger Miles:

Available Seat Miles:

# Passengers:

Average Fare:

Departures:

Block Hours:

Revenue Passenger Miles:

Available Seat Miles:

Year 1

Years 2-4

7,800

$69.00

1,840

2,918

2,073,GOO

4,226,826

13,500

$69.00

2,429

. 3,852

4,455,000

7,190,726
Air Choice One

~

OP.TION M2, 2 YEAR SERVICE OR 4 YEAR DISCOUNTED SERVICE - ORO

CESSNA GRAN!? CARAVAN OR PIPER NAVAJO

Mason City, Iowa - Chicago O'Hare International Airport

Cessna Grand Caravan or Piper Navajo 4 Year Service Discounted in Years 3-4 18 Round Trips Per Week

06/02/2014

FOR ADDITIONAL OPTIONS C1* & C2* - DUAL HUB SERVCE - SEE COMBINED SERVICE OPTIONS INDEX

~Requjres selection by both communities
Air Choice One

~--

Mason City, Iowa - Cessna Grand Caravan or Piper Navajo

Option Ml:

2 Year Service or 4 Year Discounted Service (Discounted in Years 3-4)

24 Total Round Trips Per Week - Based on 98% Completion Rate

9,700

$69.00

2,454

.3,618

2,793,600

5,635,768

# Passengers:

Average Fare:

Departures:

Block Hours:

Revenue Passenger Miles:

Available Seat Miles:

Representative Schedule

Departure Arrival

MCW 4:30 AM ORD 6:1S AM

ORD7:00AM MCW8:55 AM

MCW 9:50 AM ORD 11:35 PM

ORD 12:30 PM MCW2:25 PM

MCW 11:30 AM ORD 1:15 PM

ORD 3:00 PM MCW4:55 PM

MCW 5:40PM ORD 7:25 PM

ORD 8:20 PM MCW 10:15 PM

$442

$1,748

$4,054,350

236,183

$4,290,533

$ 752,191

1,212,474

1,004,838

631,250

$3,600,753

50,000

1.072.897

$4,723,650

$ 669,300

o

$ 669,300

Operating Loss

Profit Element (5% total Oper. Exp.)

Compensation Required

Other Revenues

Total Operating Revenues

Direct Operating Expenses

Flying Operations

Fuel and Oil

Maintenance

Aircraft Leases

Total Direct

Marketing

Indirect

Total Operating Expenses

Mason City, Iowa - Chicago O'Hare International Airport - Caravan or Navajo

Operation Revenues

MCW-ORD Revenues

Compensation per PAX

Compensation per Departure

06/02/2014
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