CHARTCR Ami^m^oft 

Proposal to Provide Essential Air Service at 

Iron Mountain/Kingsford, Michigan; Ironwood, Michigan/Ashland, Wisconsin; Manistee/Ludington, 

Michigan; and Escanaba, Michigan 

DOT-OST-1999-5175; DOT-OST-1996-1266; DOT-OST-1996-1711; and DOT-OST-2003-15128 

Dated: 03/25/2010 

Introduction 

Charter Air Transport, Inc. is a Charter Operator that currently has a "Show Cause" Order for Commuter Fitness 

Detemiination (Docket # DOT-OST-2009-0187) with a fleet of four 30 seat Turbo Prop EMB-120 aircraft with an option to 

purchase 2 additional EMB-120 aircraft and two 19 seat BAE3200 Jetstream aircraft. We also operate aircraft including 

Hawker Jet, Citation Jet, Beech Jet, and manages King Air-200 equipment. Charter Air Transport is an Air Carrier that 

truly provides the most flexibility within its curtent fleet to operate aircraft and grow with each community we serve. 

We have entered into a partnership Aviation Technologies, Inc., who commonly owns Public Charters, Inc., to enhance our 

inventory distribution (seat sales) by also operating these flights as public charters and distributing them through the major 

Global Distribution Systems (GDS) used by all of the major Scheduled Airlines to sell their inventory to the worldwide 

Travel Agent Community. So, in addition to the classic Internet based Reservations System sales; EAS seats would be 

available to the Travel Communities in North America including Canada, Mexico, and the Caribbean for true global 

distribution. While filing these seats as public charters is not required to serve EAS markets; the extra potential seat sales 

have increased our market projections to over double the current ridership in each community from their current levels of 

enplanements. Our goal is to maximize load factors and fly proven routes for each community. 

This public charter inventory would be loaded into Public Charters, Inc.'s lATA certified CRS system (Computerized 

Reservations System) that currently interfaces with the Sabre and Amadeus GDS systems. These systems are commonly 

used by Travel Agencies worldwide, and are the portal of sales for large clearing houses like Travelocity and Expedia. 

Using Public Charters, Inc.'s advanced CRS enables us to distribute seat inventory seamlessly through the GDS systems by 

settling the sales through ARC (Airline Reporting Company). All ticket sales are additionally protected when filing our 

flight inventory through the public charter venue, as all ticket sales revenue is directed into a DOT certified & bonded 

escrow bank and held until flight completion. All flight information displayed on the GDS systems would include the 

statement: "Operated by Charter Air Transport". This is exactly the way that commuter operators display for the major 

airlines. 

Public Charters, Inc.'s CRS system also contains a Departure Control System (DCS) that includes a complete baggage and 

ticketing system for a convenient airport check-in process. Since this system has Type "A" connectivity, it provides the 

basic components for baggage and ticketing agreements with most main-line carriers. It is certified E-Ticketing with both 

Sabre and Amadeus; and has plans to implement with Travelport (Worldspan) in the near future. This will enable our 

inventory to also be picked up by Orbitz and Price Line for additional distribution opportunities. 

Additionally we use the Check TSA^ Inc. system that offers the latest security technologies that are used for TSA screening 

including compliance with Secure Flight and CBP AQQ communication for International APIS transmissions. You can 

visit their security web-site at www.ChcckTSA.com for more information. 

1 I P a 
CHARTIR Mkijmrisport, 

Charter Air Transport would like to face the challenge of providing service to EAS communities, mainly by identifying 

better, but more condensed schedules that serve a larger part of community traffic for O&D (origination and destination) 

routes. While we continue to work on our Interlining agreements, getting passengers to their final destination conveniently 

and more efficiently has always been the goal. 

Because the DCS described above is a 100% Internet based System; we are able to provide on-site check-ins with any 

connecting Carrier that permits Internet check-ins as part of their web-site services. This enables the passenger to print 

their boarding card for their connecting flight at the EAS departure airport. Returning passengers may obtain their boarding 

pass at the Charter Air Transport/Public Charters gate and do not have to go to the check-in counter. Once we get the 

passengers delivered to the sterile gate areas; they would already have their connecting boarding cards and we would 

arrange a local transfer of baggage either directly to the gate or through a local baggage arrangement with each cartier. We 

continue to work with several major airlines for Interline and Ticketing agreements, and are confident that; with our current 

business practices; that the travel experience will be practical, expeditious, and convenient for each passenger. 

We use a color coded "Disney Type" baggage coding for convenient recognition of interlined baggage both for out bound 

and inbound flight baggage retrieval and transfers. While we do not charge baggage fees, we must collect any fees that may 

be charged by other carriers. These charges will be posted on our web-site and collected at the time of check-in. We have 

been advised by cartiers like Southwest AirHnes, that if a passenger is carrying a Southwest Boarding card or has a 

Southwest ticket, they will be treated like a Southwest passenger. This includes the acceptance of baggage. This is true for 

most major airlines. There are several regulations that expect carriers to accommodate interlining traffic for feeder flights. 

Both Charter Air Transport and Public Charters, Inc. are committed to the highest on-time performance and flight 

completion records to our passengers. In the event of an aircraft mechanical, our first resource to is use back up aircraft 

fi^om within the Charter Air Transport fleet. However, we are not limited to these resources and have access to retain subservice utilizing other certified FAA Air Carrier's aircraft that could consist of aircraft type ranging from pressurized Twin 

Turbo Prop aircraft to Corporate Jet aircraft. Should sub-service be necessary, we will utilize aircraft sufficient to provide 

coverage based on the actual ticketed passengers for each flight leg. Whether we use one or two aircraft to complete a 

flight sequence, we provide this service with no surcharge or penalty to the EAS Community Service. 

One of our mottos is "Go with Us so that we can Grow with You!" Charter Air Transport can offer daily service operating 

multiple flights per day for any EAS route that is up to 150 nautical miles point to point from the origination city to the 

destination city. We now offer the choice of operating with either the Jetstream 19 seat aircraft (or 18 with one lavatory) or 

the 30 seat EMB-120 (including one Flight Attendant) to serve the community's travel needs. While we recognize that 

communities want more frequency and larger aircraft, the statistics and history have dictated that these routes need to be 

revamped and rebuilt to meet the true community need. We offer prime time departures and arrivals, including early 

morning and late afternoon, to optimize both the O&D and potential connecting passenger enplanements. Our desire is to 

provide the local communities flight service to an airport that will provide the most vantage points for connecting into the 

National Transportation System at large. 

The combined partnership between Charter Air Transport and Public Charters, Inc. is designed to fit each market need, 

offering capabilities to provide additional aircraft capacities in order to grow with each community we serve; while 

providing enhanced ticket sale distribution. 

2 I P a u e 
MRKTransport 

Proposals Included: ESC and MBL-MKE. IMT and IWD-MKE. ESC-MKE. MBL-MKE, IMT-MKE. IWD-MKE 

and MBL-MDW 

NOTE: This bid is not an "all or nothing " bid. Each aircraft option will stand on its own, and 

the pricing is valid whether separate or together with other aircraft combinations. 

Option L 

30 Seat Turbo Prop EMB-120 Aircraft 

Serves Milwaukee (MKE) with a combined single stop route for Manistee (MBL), Ironwood (IWD) and Iron Mountain 

(IMT) with non-stop addifional flight for Escanaba (ESC). Schedules provide IWD, IMT and MBL with 2 daily flights X6 

and ESC with 3 daily flights X6. 

Escanaba and Manistee 

Aircraft #1-ESC and MBL to MKE 

Average One Way Fare: $79.00 

Lowest One Way Fare: $69.00 

Highest Walk-up Fare: $149.00 

Requested subsidy amount per year: $3,466,778.00 

Ironwood and Iron Mountain 

Aircraft #2-IWD and IMT to MKE 

Average One Way Fare: $79.00 

Lowest One Way Fare: $69.00 

Highest Walk-up Fare: $149.00 

Requested subsidy amount per year: $3,172,955.00 

Please refer to Appendix "A" of this proposal for detailed flight schedules and cost models. 

Option II 

19 seat BAE3200 Jetstream aircraft and 30 Seat Turbo Prop EMB-120 Aircraft 

Serves Milwaukee (MKE) with non-stop service independently from each community, for Manistee (MBL), Ironwood 

(IWD), Iron Mountain (IMT) and Escanaba (ESC) with 2 daily flights X6. 

3 I P a g e 

Manistee Options 

Aircraft #1-19 seat BAE 3200 Jetstream aircraft: MBL to MKE 

Average One Way Fare: $69.00 

Lowest One Way Fare: $59.00 

Highest Walk-up Fare: $149.00 

Requested subsidy amount per year: $1,746,385.00 

OR 

Aircraft #1 - 19 seat BAE 3200 Jetstream aircraft: MBL to MDW 

Average One Way Fare: $79.00 

Lowest One Way Fare: $69.00 

Highest Walk-up Fare: $149.00 

Requested subsidy amount per year: $1,899,356.00 
(Tmnsport 

Ironwood 

Aircraft #2-19 seat BAE 3200 Jetstream aircraft: IWD to MKE 

Average One Way Fare: $79.00 

Lowest One Way Fare: $69.00 

Highest Walk-up Fare: $149.00 

Requested subsidy amount per year: $1,917,647.00 

Iron Mountain 

Aircraft #3-30 seat Turbo Prop EMB-120 Aircraft: IMT to MKE 

Average One Way Fare: $79.00 

Lowest One Way Fare: $69.00 

Highest Walk-up Fare: $149.00 

Requested subsidy amount per year: $2,253,805.00 

Escanaba 

Aircraft #4-30 seat Turbo Prop EMB-120 Aircraft: ESC to MKE 

Average One Way Fare: $79.00 

Lowest One Way Fare: $69.00 

Highest Walk-up Fare: $149.00 

Requested subsidy amount per year: $2,253,805.00 

Please refer to Appendix "B" of this proposal for detailed flight schedules and cost models. 

Please contact either Charter Air Transport, Inc. or Public Charters, Inc. with any questions you may have. 

For Charter Air Transport, Inc.: 

Peter Billman 

Phone:216-348-1415 

Fax: 216-348-1432 

Email: PBillman(a)ChartciAirTransport.com 

For Public Charters, Inc.: 

Jim Gallagher 

Phone: 570-457-4147 

Fax:570-457-4113 

Email: JG727@aol.com 

See attached exhibits for schedule and pricing details. Our tentative schedules are subject to final gate and slot approval for 

each airport we serve. 

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