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# Sovereig nJAir , Inc , Apri l 22 , 201 1 Denni s J
. DeVany , Chie f EA S & Domesti cAnalysi s Division , X-5 3 Offic e o fAviatio n Analysi s Departmen t o fTransportatio n 120 0 Ne wJerse yAve
. S E Washington , D

C 2059 0 Re : Proposa l t o Provid e Essentia l Ai rServic e at : Kalaupapa , Hawai i DOT-OST-2000-6677 3 Dea rMr
. DeVany : I n respons e t o Orde r2011-4-7 , Sovereig n Air , Inc
. offer s th e followin g proposal : Sovereig n Air , Inc
. (SAl ) i s plannin g t o us e th e Cessn a 414 Aa s it s primar yaircraf tfo rthi s Essentia l Ai r Servic e route . I t wil l b e configure d wit h seve n passenge rseats , an d seat s mayb e adde d a s needed
. Sovereig n Ai ri s proposin g th e aircraf t fo rth e exclusiv e us e ( up-Iin e servic e t o Molokia ) o fth e propose d EA S route . Ou rflight s wil l servic e onl yKalaupap a an d Moloki a t o th e indicate d Hu b (Honolulu)
. Sovereig n Ai rbelieve s tha t wit h righ t aircraft , goo d schedules , prope rpricin g an d a recoverin g economy , th e loa d factor s wil l increase
. I n proposa l # 1 SA l wil l bas e it s aircraft , crew s an d maintenanc e personnel , i n Kaunakakai
. W e anticipat e relocatin g a tleas t3 familie s t o th e Kaunakaka i are a t o operat e thi s run . Th e Cessn a 414 has a pressurize d cabin , i s veryquiet , use s littl e fue l keepin g operatio n cos tlo w( a s fue l price s g o u p th e ticke t price s stil l sta ylow) , an d i s th e righ taircraf tt o kee p cost s dow n an d ticke tprice s wher e the yshoul d b e i n th e $50.0 0 range . SA l wil l hav e baggag e an d ticke t agreement s wit h th e majo rai rcarrier s i n Honolulu
. SA l wil l hav e carg o agreement s fo rinternationa l ai rfreigh t movements . SA l has bee n HAZMA

Tapprove d an d wil l wor k wit h hospital s t o expedit e variou s HAZMA Tmaterial s tha t the ynee d t o transport . SAI' s goa l i s t o wor k

hand-in-han d wit h EA S communitie s t o increas e passenge rload s an d reduc e th e nee d fo rEA

S subsidie s withi n th e nex t fou rt o si xyears . Sovereig n Ai ri s currentl yi n th e proces s o facquirin g it s Schedule d Servic e Authorit yan d anticipate s bein g abl e t o star t thi s Essentia l Ai rServic e o n schedule
. Sovereig n Ai rwil l b e full yintegrate d int o th e Globa l Distributio n Syste m (GDS) i n conjunctio n wit h Worldspan
. SA l i s no t tie d t o jus t on e airline , allowin g Sovereig n Ai rbette rvisibilit yi n th e variou sreservatio n systems . Passenger s wil l hav e a broa d rang e o fchannel s throug h whic h t o purchas e tickets , includin g al l airlin e reservatio n system s an d trave l agencies
. Customer s wil l b e abl e t o cal l ou r reservatio n offic e o rvisi t ou rne wwebsit e t o boo k flights
. Passengers wil l b e abl e purchas e ticket s an d mak e reservation s a t ou rticke t counters . Th e Cessn a 414 }

$ th e mos t econom'ica ) pe rsea tpassenge raircraf tfo ru p t o 100 mil e range , i tca n carry th e passengers wit h thei rbaggag e a t th e lowes tpe rmil e cos tfro m Kalaupap a t o Honolulu , allowin g a n averag e ticke t pric e o f$5 0 on e way , o r$9 9 roun d trip
. Advanc e purchas e price s fo ron e wa ywil l b e $40 t o $50 an d ther e wil l b e n o baggag e charges. Th e 414 i s a U.S
. manufacture d aircraf t wit h excellen tpart s availabilit ya tlowe rcosts. I ti s use d al l ove r th e worid
. Thi s i s a simpl e aircraf t tha t i s easyt o maintain , an d i tha s a veryhig h dispatc h rate , s o ther e shoul d b e veryfe wmechanica l delays
. W e wil l hav e a 97 % o rbette rschedule d completio n rate . Becaus e o fth e lowe roperatin g costs , 3 roun d trip s ca n b e ru n a ta reasonabl e EA S subsidy , savin g bot h th e passenge ran d th e governmen t money . Sovereig n air' s ne wuniqu e reservatio n system , wil l combine d wit h interlin e agreement s t o b e pu ti n place , wil l allo wpassengers t o b e tickete d t o thei rfina l destinatio n withou tconcer n fo rbaggag e transfers
. PROPOSE D SCHEDULE OPTION SHNL-HLU-HM K3RTWEEKDAY S 1 MI D DAYRTM-W- F 2 R TWEEKEND S 7 DAYS SCHEDUL E

. FLT # 1 0 1 2 114 1 6 Depar t

HM K 70 0 110 0 140 0 170 0 Arriv e

HL U 71 0 111 0 141 0 171 0 0PTI0N'# 1

Depar t HL U 72 0 112 0 142 0 172 0 Arriv e

HN L 74 0 114 0 144 0 174 0 7 DAYS

M- F M-W- F 7 DAYS

1 1 1 3 11 5 1 7 . . ,

1 3

2 4 HN L

80 0 130 0 150 0 190 0

HN L 70 0 150 0
HN K 80 0 160 0 HL U 82 0 132 0 152 0 1EI20
OPTIO N # 2

HL U 72 0 152 0
HL U 81 0 161 0 HL U 83 0 133 0 153 0 193 0
HNL-HLU-HM K2 R

T6 DAY S HL U 73 0 153 0
HL U 82 0 162 0 HM K 84 0 134 0 154 0 194 0 7 DAYS

M' F M-W- F 7 DAY S
N O SUNDA YWEE K HM K 74 0 154 0
HM K 84 0 164 0 N O SU N

N O SU N

N O SU N N O SU NCessn a 414 ^ # 1 OPTIO N 1,76 5 88 2 1.50 0 $75,00 0 15,21 1 $90,21 1 Direc t Cost s $156,00 0 $201,58 1 $15,34 0 $83,59 5 $100,00 0 $556 , 51 6 Indirec t Cost s $100,76 2 Tota l Cost s $657,27 8 $585,06 7 $33,76 4 $ 618,83 1 HONOLUL U -KALAUPAP A

Departure s Bloc k Hour s Passenger

s Pa xre v@ $50 Othe rre v Tota l Revenue s
Cre wExpense s Fue l Insuranc e Maintenanc e Aircraf t Leas e Tota l Direc t Cost s

Costs-Rev Tota l Costs * 5 % Annua l Subsid y Sovereig n Ai r # 2 OPTIO N 1,21 0 60 5 1,50 0 $75,00 0 $15,21 1 $90,21 1 Direc tCost s $93,00 0 $138,27 3 $15,34 0 $69,89 6 $100,00 0 $416,50 9 Indirec tCost s $100,72 6 Tota l Cost s $517,23 5 $427,02 4 $25,86 2 $ 452,88 6 Departure s

Bloc k Hour s Passengers Pa xre v$50 Othe rre v Tota l Revenue s
Cre wExpense s Fue l Insuranc e Maintenanc e Aircraf tLeas e Tota l Direc tCosts

Costs-Rev Tota l Costs * 5% Annua ] Subsid y .87 % Loa d Facto r17 % Loa d Facto r NOTE : 2 SUNDA

YR TCA N BE ADDE D FOR $124,56 6 T O SUBSID

Y$452,88 6 FOR ATOTA L$577,45 2 Custome rsafet yan d servic e ar e Priorit yOn e wit h SAl
. Sovereig n Ai rlook s forwar d t o providin g Essentia l Ai rServic e t o th e subjec t cities
. Sincerely ,
Jo n Payne , CF

O Sovereig n Air , Inc
.