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Sovereign JAir, Inc, 

April 22, 2011 

Dennis J. DeVany, Chief 

EAS & Domestic Analysis Division, X-53 

Office of Aviation Analysis 

Department of Transportation 

1200 New Jersey Ave. SE 

Washington, DC 20590 

Re: Proposal to Provide Essential Air Service at: 

Kalaupapa, Hawaii 

DOT-OST-2000-66773 

Dear Mr. DeVany: 

In response to Order 2011-4-7, Sovereign Air, Inc. offers the following proposal: 

Sovereign Air, Inc. (SAl) is planning to use the Cessna 414A as its primary aircraft for this Essential Air 

Service route. It will be configured with seven passenger seats, and seats may be added as needed. 

Sovereign Air is proposing the aircraft for the exclusive use ( up-Iine service to Molokia) of the proposed 

EAS route. Our flights will service only Kalaupapa and Molokia to the indicated Hub (Honolulu). 

Sovereign Air believes that with right aircraft, good schedules, proper pricing and a recovering economy, 

the load factors will increase. In proposal #1 SAl will base its aircraft, crews and maintenance personnel, 

in Kaunakakai. We anticipate relocating at least 3 families to the Kaunakakai area to operate this run. 

The Cessna 414 has a pressurized cabin, is very quiet, uses little fuel keeping operation cost low ( as fuel 

prices go up the ticket prices still stay low), and is the right aircraft to keep costs down and ticket prices 

where they should be in the $50.00 range. 

SAl will have baggage and ticket agreements with the major air carriers in Honolulu. SAl will have cargo 

agreements for international air freight movements. 

SAl has been HAZMAT approved and will work with hospitals to expedite various HAZMAT materials that 

they need to transport. 

SAI's goal is to work hand-in-hand with EAS communities to increase passenger loads and reduce the 

need for EAS subsidies within the next four to six years. 

Sovereign Air is currently in the process of acquiring its Scheduled Service Authority and anticipates 

being able to start this Essential Air Service on schedule. 

Sovereign Air will be fully integrated into the Global Distribution System (GDS) in conjunction with 

Worldspan. SAl is not tied to just one airline, allowing Sovereign Air better visibility in the various 
reservation systems. Passengers will have a broad range of channels through which to purchase tickets, 

including all airline reservation systems and travel agencies. Customers will be able to call our 

reservation office or visit our new website to book flights. Passengers will be able purchase tickets and 

make reservations at our ticket counters. 

The Cessna 414 }$ the most econom'ica) per seat passenger aircraft for up to 100 mile range, it can carry 

the passengers with their baggage at the lowest per mile cost from Kalaupapa to Honolulu, allowing an 

average ticket price of $50 one way, or $99 round trip. Advance purchase prices for one way will be $40 

to $50 and there will be no baggage charges. 

The 414 is a U.S. manufactured aircraft with excellent parts availability at lower costs. It is used all over 

the worid. This is a simple aircraft that is easy to maintain, and it has a very high dispatch rate, so there 

should be very few mechanical delays. We will have a 97% or better scheduled completion rate. 

Because of the lower operating costs, 3 round trips can be run at a reasonable EAS subsidy, saving both 

the passenger and the government money. 

Sovereign air's new unique reservation system, will combined with interline agreements to be put in 

place, will allow passengers to be ticketed to their final destination without concern for baggage 

transfers. 

PROPOSED SCHEDULE OPTIONS 
HNL-HLU-HMK 3RTWEEKDAYS 1 MID DAY RTM-W-F 2 RT WEEKENDS 7 DAYS SCHEDULE 

. 

FLT# 

10 

12 

114 

16 

Depart 

HMK 

700 

1100 

1400 

1700 

Arrive 

HLU 

710 

1110 

1410 

1710 

0PTI0N'#1 

Depart 

HLU 

720 

1120 

1420 

1720 

Arrive 

HNL 

740 

1140 

1440 

1740 

7 DAYS 

M-F 

M-W-F 

7 DAYS 

11 

13 

115 

17 . . , 

1 

3 

2 

4 

HNL 

800 

1300 

1500 

1900 

HNL 

700 

1500 

HNK 

800 

1600 

HLU 

820 

1320 

1520 

1EI20 

OPTION #2 

HLU 

720 

1520 

HLU 

810 

1610 

HLU 

830 

1330 

1530 

1930 

HNL-HLU-HMK 2 RT 6 DAYS 

HLU 

730 

1530 

HLU 

820 

1620 

HMK 

840 

1340 

1540 

1940 

7 DAYS 

M'F 

M-W-F 

7 DAYS 

NO SUNDAY WEEK 

HMK 

740 

1540 

HMK 

840 

1640 

NO SUN 

NO SUN 

NO SUN 

NO SUN 
Cessna 414^ 

#1 OPTION 

1,765 

882 

1.500 

$75,000 

15,211 

$90,211 

Direct Costs 

$156,000 

$201,581 

$15,340 

$83,595 

$100,000 

$556, 516 

Indirect Costs 

$100,762 

Total Costs 

$657,278 

$585,067 

$33,764 

$ 618,831 

HONOLULU -KALAUPAPA 

Departures 

Block Hours 

Passengers 

Pax rev @ $50 

Other rev 

Total Revenues 

Crew Expenses 

Fuel 

Insurance 

Maintenance 

Aircraft Lease 

Total Direct Costs 

Costs-Rev 

Total Costs * 5% 

Annual Subsidy 

Sovereign Air 

#2 OPTION 

1,210 

605 

1,500 

$75,000 

$15,211 

$90,211 

Direct Costs 

$93,000 

$138,273 

$15,340 

$69,896 

$100,000 

$416,509 

Indirect Costs 

$100,726 

Total Costs 

$517,235 

$427,024 

$25,862 

$ 452,886 

Departures 

Block Hours 

Passengers 

Pax rev $50 

Other rev 

Total Revenues 

Crew Expenses 

Fuel 

Insurance 

Maintenance 

Aircraft Lease 

Total Direct Costs 

Costs-Rev 

Total Costs* 5% 

Annua] Subsidy 

.87% Load Factor 17% Load Factor 

NOTE: 2 SUNDAY RT CAN BE ADDED FOR $124,566 TO SUBSIDY $452,886 FOR A TOTAL $577,452 

Customer safety and service are Priority One with SAl. Sovereign Air looks forward to providing 

Essential Air Service to the subject cities. 

Sincerely, 

Jon Payne, CFO 

Sovereign Air, Inc.