Before the United States Department of Transportat1on 

August 15, 2012 

Proposal to Provide Essential Air Service at 

CLOVIS, NEW MEXICO 

SILVER CITY/HURLEY/DEMING, NEW MEXICO 

Under 49 U.S.C. 41731 et seq. 

SeaPort Airlines, Inc. 

Docket OST -1996-1902 

Docket OST -1996-1903 

Proposal to Provide Essential Air Service (EAS) at 

Clovis and Silver/Hurley/Deming, New Mexico 

By Order 2012-7-20, the Department requested proposals for Essential Air Service (EAS) at Clovis 

and Silver City/Hurley/Deming, New Mexico (hereafter shortened to "Silver City'). SeaPort Airlines, 

Inc. respectfully submits this timely proposal to provide subsidized EAS to the aforementioned 

communities. 

SeaPort Airlines is proposing a single service pattern proposal at both Clovis and Silver City, but 

with a choice of two aircraft types. The proposals herein are inseparable and require that both 

communities choose the same aircraft type. 

Shortly after this proposal is docketed, SeaPort Airlines will contact the Airport Manager in each 

community to schedule a presentation to explain our proposal in detail and answer any questions. In 

the interim and throughout the carrier selection process, questions regarding this proposal should be 

directed to: 

Timothy Sieber 

Vice President - Commercial 

SeaPort Airlines, Inc. 

7505 NE Airport Way 

Portland, OR 97218 

(971) 340-1716 

tsieber@seaportair.com 
Description of Proposed Service 

Introduction to SeaPort Airlines 

SeaPort Airlines, Inc. is a FAA certified scheduled airline with 30 years of experience in commercial 

aviation. The company is headquartered in Portland, Oregon and has operational bases at Portland, 

Memphis (Tennessee), and Juneau (Aiaska). 1 Our approximately 180 professionals operate a fleet 

of 14 aircraft on an average of 90 daily departures to 20 cities in eight states. Presently, service to 

seven of these communities is provided under the EAS program: Excursion Inlet, Alaska; Pendleton, 

Oregon; ElDorado, Hot Springs, and Harrison, Arkansas; Salina, Kansas; and Jackson, Tennessee. 

The focus of SeaPort's business model is providing affordable and reliable service to small and rural 

communities that the global airline brands either characterize as no longer being strategically 

important to their own business model, or because the passenger ticket revenue generated by that 

community is not sufficient to support the cost structure and increasingly larger aircraft of regional 

airlines that provide capacity to those global brands on a contract (i.e., "fee per departure") basis. 

To serve these communities, SeaPort operates aircraft with operating costs and passenger capacity 

that are aligned with a market's true demand, offers higher frequencies and departure time choices 

than possible with larger aircraft, sets all fares at a price point that is attractive to potential customers 

but does not result in shifting the true cost of air travel from the customer to the Department, and 

provides attentive and personal service that, in many of our markets, is commonly referred to as 

'The SeaPort Experience." 

When awarded an EAS contract, SeaPort Airlines begins service on time, on budget, and with fares 

at or below those in our service proposal. Once service is launched, we develop a partnership with 

each community by participating in local events, donation of tickets, regular dialogue with airport 

management and community leaders, and presentations to civic clubs and other similar 

organizations. These activities serve our own interests as equally as those of the community by 

fostering grass roots support for local air service, a positive relationship between the community and 

EAS carrier, and, as ridership builds, can lead to enplanement levels that ensure continued eligibility 

in the EAS program. 

The strongest evidence of our commitment to provide quality air service and build community 

partnerships is demonstrated by the fact that in every one of our "Lower 48" EAS communities 

SeaPort Airlines has been re-selected as the EAS provider at the end of the first contract period. 

This includes the reselection of SeaPort Airlines earlier this year for a four-year contract (rather than 

the standard two-year contract) to in Salina, Kansas based on overwhelmingly positive support from 

the community, and the reselection of SeaPort Airlines at Pendleton, Oregon over a competing bid 

that offered 37 -passenger aircraft and was marketed with the brand of a major airline. 

Further evidence of our commitment to providing reliable, customer-focused air service, however, is 

demonstrated through community and customer comments that are provided later in this proposal. 

Finally, we encourage community leaders in both Clovis and Silver City to contact the airport 

manager in any of our EAS communities to discuss the responsive, affordable, and reliable air 

service that we provide. 

1 Operations in Southeast Alaska are branded as "Wings of Alaska." 

Docket OST-1996-1902 & Docket OST-1996-1903 

August 15, 2012 Page 12 
SEA+PORT 

Aircraft 

SeaPort Airlines presently provides service in all of our EAS communities with single engine 

aircraft and, as noted above, every one of our EAS communities in the Lower 48 has reselected us 

for additional contract periods with those same aircraft. We strongly believe that modern singleengine aircraft represent the best platform to provide EAS service that is frequent, affordable, 

and reliable. 

We are nonetheless, offering two aircraft types for consideration by the communities of Clovis and 

Silver City, both of which are described below. 

Cessna Caravan 

Currently being produced in the USA, the "Caravan" was originally designed in the 1980's to 

replace an aging fleet of piston-powered aircraft, such as the De Havilland Otter and Piper 

Chieftain. Over 2,000 Caravans have been built logging a total of over 12.5 million flight hours. 

The Caravan is certified for single-pilot operation, however, SeaPort typically operates with both 

a Captain and First Officer. 

N20811C 

, , :-1 -w SEAJPORT ., ==~ :::; ==- ,','-·/~ 

The large cargo pod on the Caravan allows for more baggage than can be accommodated on 

older piston twins (i.e., Piper Navajo and Cessna 402) and allows us to segregate passenger 

baggage for security purposes. 2 

As noted earlier, however, SeaPort operates single-engine aircraft and enjoys strong community 

support in all of the EAS markets that we serve. This is because on a daily basis we 

demonstrate that the Cessna Caravan is the ideal platform for safe and reliable air 

transportation with higher frequencies than would be economically possible with larger aircraft. 

While our experience in these other markets makes us confident of our ability to build support in 

2 The cargo pod on the Cessna Caravan has a maximum capacity of 111 cubic feet and 1,090 pounds. In 

comparison, the Piper Chieftain has a maximum capacity of 65 cubic feet and 700 pounds in its nose compartment 

and two wing lockers. 

Docket OST-1996-1902 & Docket OST-1996-1903 

August 15, 2012 Page 13 
SEA-tPORT 

Clovis and Silver City, we offer the following additional points for consideration as both 

communities evaluate this proposal: 

• The argument that single-engine aircraft are less safe than multi-engines is based on the 

presumption of engine failure. Failure of modern turbine engines is extremely rare, and even 

rarer that engine failure is the primary cause of an accident or incident 

• Multi-engine aircraft experience asymmetric thrust and a loss of climb performance of up to 

80%. In contrast, single-engine aircraft don't experience asymmetric thrust, and they 

typically have higher glide ratios and can land at slower speeds. 

• As reliability has improved over the last 75 years, airlines have specified fewer engines on 

new aircraft designs - "more is better" no longer applies. 

• Newer, modern technology single-engine turboprops aircraft provide a better customer 

experience than 35 year old piston-powered twin engine aircraft. 

Piper Chieftain 

49 U.S.C. 41732(b)(5) entitles communities to EAS service with twin-engine aircraft and two 

pilots, however communities can waive their right to twin-engine aircraft. SeaPort Airlines 

presently provides service in all of our EAS communities with single engine aircraft and, as 

noted above, every one of our EAS communities in the Lower 48 has selected SeaPort Airlines for 

subsequent contract periods. Notwithstanding our belief that the Cessna Caravan represents the 

best platform for frequent, economical and reliable air service, we are including in this proposal 

the option of service with twin-engine Piper Chieftains. 

The Chieftain is a stretched version of the Piper Navajo that operates with a pilot and co-pilot, 

and seats 8 passengers (one less than the Cessna Caravan). The aircraft has two Lycoming 

piston engines and baggage storage in a nose compartment and wing lockers. 3 The aircraft 

offers adequate range with a full load of passengers to operate the service pattern offered in this 

proposal, and has a typical cruise speed of 175 knots. 

Over 1,800 Chieftains were built between 1972 and 1984 by Piper Aircraft. Analysis of aircraft 

presently offered for sale indicates that if the option of service with Chieftains is selected, we will 

not have difficulty finding suitable aircraft to begin service at Clovis and Silver City in a timely 

manner. 

Service Pattern & Proposed Schedule 

If selected to provide EAS at Clovis and Silver City, the company intends to establish an additional 

operational base at Albuquerque International Sunport (ABQ) with three aircraft - two assigned to 

scheduled lines and the third being an operational spare. This will allow us to offer both Clovis and 

Silver City morning originating flights, and the operational flexibility to rotate aircraft into ABQ for 

scheduled maintenance and/or facilitate quicker service recovery in the event of unscheduled 

maintenance events. 

3 See footnote 2. 

Docket OST-1996-1902 & Docket OST-1996-1903 

August 15, 2012 Page 14 
SEA ,tPORT == :- ,. . , .. . 

For each community, SeaPort Airlines is proposing service to Albuquerque International Sunport. 

This is the hub that historically has provided Clovis and Silver City with connectivity to the national 

air transportation system. Equally as important, Albuquerque traditionally functions as the central 

point for cultural, banking, government, and advanced medical care for the entire state of New 

Mexico. 

As of August 2012, ABO offers consumers an average of 10,455 seats on an average of 94 

departures to 27 nonstop destinations on seven airlines4 

Connecting Service Available at 

Albuquerque International Sunport (ABO): August 2012 

Minneapolis 

Proposed Schedules 

,· ~'-:....-~ 

Consistent with the Department's request in Order 2012-7-20, SeaPort Airlines is proposing 18 

roundtrips each week between ABO and both Clovis and Silver City. This greater choice of 

frequency, combined with SeaPort's pricing model and marketing strategies outlined below, is 

projected to increase enplanement levels at both communities above those being generated by 

the EAS provider with 12 weekly roundtrips. 

Illustrative schedules are provided below. The illustrated flight times reflect those of the Cessna 

Caravan. If the communities were to select service to be with Piper Chieftains, flight times would be 

marginally shorter. 

4 Excludes current EAS provider at Clovis and Silver City who presumably will exit ABQ as service is initiated by the 

new carrier. 

Docket OST-1996-1902 & Docket OST-1996-1903 

August 15, 2012 Page 15 
SEAtPDRT 

SeaPort Airlines, Inc. 

Illustrative Schedule Pattern 

18 Weekly Roundtrips: Silver City- Albuquerque, NM 

Aircraft T : Cessna Caravan 

ExSun 

ExSat 

0 

0 

From Albuquerque to Silwf City 

8:45am 10:00am ExSun 0 

2:45pm 4:00pm ExSat 0 

6:1 ExSat 0 

18 Weekly Roundtrips : Clovis- Albuquerque, NM 

6:00am 

1215pm 

4:1 

Aircraft · Cessna Caravan 

ExSat ExSat 0 

Regardless of aircraft type, if SeaPort is selected to provide service to Clovis and Silver City, we will 

seek input from each community before establishing final schedules. 

Pricing Model 

In all markets, SeaPort Airlines offers a range of fares all priced on a one-way basis. The highest 

price point (branded as "FuiiFiex") provides a customer with total flexibility to change travel plans 

without incurring any change fee or, if desired, receive a total refund. The lowest price point 

(branded as "NoFiex") is best suited for customers who are certain about their travel plans and 

requires an advance purchase of 21-days, is non-refundable, and does not permit any changes from 

the original booked itinerary. In between is a range of fares ("Fiex4Free" and "Fiex4Fee") that 

provides a choice of price-points based largely on how certain a customer is that their travel plans 

will not change. Except for the two highest price points, fares are also subject to capacity controls 

meaning that the farther in advance a reservation is made, the more likely a customer is to get a 

lower fare. 

This strategy, which is not materially different from other airlines, allows SeaPort to set price points 

in a manner that makes our service attractive to virtually all segments of the market who might utilize 

air service at Clovis and Silver City. 

The table on the next page summarizes the range of ticket prices in each market, as of the date of 

this proposal and after expiration of introductory fares, along with the rules and restrictions 

applicable to each price point. 

Docket OST-1996-1902 & Docket OST-1996-1903 

August 15, 2012 Page 16 
Summary of Fare Rules 

SeaPort Airlines Illustrative Fares 

Clovis & Silver City, NM 

FuiiFiex Free2Fiex Flex4Fee 

Advance Purchase - # Days 0 3 3 7 

Refundable Yes No No No 

Change Fee $0 $0 $50 $50 

Fare Code YR B3F M3L H7L 

FlyerFiex Loyalty Program Credit 200% 150% 100% 100% 

Clovis, New Mexico 

to/from Albuquerque $149 $129 $89 $79 

Sitver City/Hurley/Deming, New Mexico 

to/from Albuquerque $159 $139 $99 $89 

SEA.+PORT 

No Flex 

14 21 

No No 

$50 No Chg. 

Q14L L21X 

100% 0% 

$69 $49 

$79 $49 

NOTE Listed price points include Federal Excise Tax, segments fee. and 9/11 security fee 

SeaPort Airlines projects an average ticket price of $91.94 and $102.37 at Clovis and Silver City, 

respectively. Net of taxes and fees, revenue to SeaPort and the basis for calculation of subsidy 

requirements, is projected to be $79.85 per customer traveling to/from Clovis and $89.55 per 

customer traveling to/from Silver City. 

During the first 30 days of service, SeaPort Airlines would offer an introductory fare of $49 (including 

all taxes and fees) on every seat, on every flight at both Clovis and Silver City intended to entice 

customers to the new service and provide an opportunity to have "The SeaPort Experience." 

Interline Connectivity & GDS Display 

Tickets may be purchased by calling our toll-free reservation number, online at 

www.SeaPortAirlines.com, at any travel agent connected to the major global distribution systems 

(GDS), or all of the major online travel agencies and meta-searchers such as Orbitz, Travelocity, 

Expedia, Kayak, Hipmunk, and CheapoAir. 

SeaPort has an interline ticketing agreement with US Airways and is currently implementing another 

agreement, including full E-ticketing and thru baggage, with another major airline that is scheduled to 

be available on September 20, 2012. Upon completion of this implementation, agreements with 

other carriers will be sought and dialogues are currently underway with three other large airlines. 

Marketing & Public Relations Strategy 

SeaPort is prepared to implement a comprehensive marketing and public relations strategy if 

selected to provide EAS at Clovis and Silver City which, in addition to traditional advertising, will 

include: 

• Local Event Marketing: Recognizing that visible participation in local events has been 

successful for both legacy and low-cost airlines, SeaPort has implemented a similar strategy in 

all of its communities. These have ranged from SeaPort Airlines community Easter egg hunts, to 

presenting at business expos, to hosting "after hours" events at local Chamber of Commerce 

meetings. In addition, SeaPort often makes "in kind" donations of tickets for use by local 

charities, either for their own business needs or as a fundraising tool (i.e., raffles, silent auctions, 

etc.). 

Docket OST-1996-1902 & Docket OST-1996-1903 

August 15, 2012 Page 17 
SEAi~PORT 

• Social Media: SeaPort Airlines effectively leverages social media to engage our customers in a 

dynamic two-way conversation using Internet sites such as Facebook, Twitter, FourSquare & 

Linkedln. We have found social media to be an excellent tool for generating passenger referrals 

and information sharing in our communities, and expect similar results in both Clovis and Silver 

City. 

• FlyerFiex Customer Rewards: During 2011, SeaPort launched a new and improved customer 

loyalty program called "FiyerF/ex." This program provides customers with a variety of benefits 

including free flights, service charge waivers, and bonus points. With roll-out of our new website 

this month, SeaPort will shortly unveil further enhancements to the FlyerF/ex program including a 

wider range of travel award options and the ability for customers to check balances and redeem 

awards online. 

• Value Accounts: SeaPort offers Corporate Value Accounts that encourage businesses to make 

a long-term investment in local air service by offering a variety of benefits, such as waivers to 

change fees and savings of 5% to 15%. It is important to note that unlike the corporate travel 

programs of major airlines that are not designed to serve small businesses in rural communities, 

SeaPort's program can provide savings to a company of virtually any size and can be used by 

any employee of a company. 

In service proposals herein, SeaPort Airlines has allocated $20,000 per year for sales and marketing 

in both Clovis and Silver City (combined total of $40,000). This budget factors media costs in smaller 

media markets and that traffic typically originates in the EAS community rather than the hub market. 

This advertising budget will be effectively leveraged with "new media" such as social networking, 

blogs, opt-in email, etc., all intended to engage customers and build relationships on a more 

personal level. 

Docket OST-1996-1902 & Docket OST-1996-1903 

August 15, 2012 Page 18 
SEA.tPORT 

Community & Customer Feedback 

Provided below is a small sample of the comments that SeaPort Airlines regularly receives from our 

customers and from EAS community partners. These comments are indicative of the type of 

partnership and customer experience (Le, "The SeaPort Experience) that can be expected from 

SeaPort Airlines if selected to provide EAS at Clovis and Silver City, New Mexico. 

Our Essential Air Service Community Partners 

"South Arkansas Regional Airport and the entire South-central Arkansas region suffered from the 

loss of air service previously provided by Mesa Airlines in the Spring of 2008. Unreliable service and 

a poor schedule were already negatively impacting enplanements before Mesa pulled out, but at that 

point, the nearest option for air service of any kind was almost a two hour drive away After sorting 

through applications from many different interested carriers, the El Dorado Airport Commission, 

along with ElDorado's Mayor, chose SeaPort to restore air service to South Arkansas. This was the 

beginning of a great partnership between SeaPort and our local community 

"Working with SeaPort has been nothing but a pleasure from the bottom to the top of their 

organization, and their commitment to excellence shines through the glowing comments that I hear 

from people who fly with them. In addition to hearing comments from others, I have flown SeaPort 

on several occasions, and have come away from the experience thinking 'This is how all air service 

should be." 

Josh Zylks 

Airport Manager 

South Arkansas Regional Airport 

(Goodwin Field) 

"Eastern Oregon Regional Airport at Pendleton had been struggling since schedule changes 

following 9111 served by a carrier flying 37 seat aircraft. Low passenger count attributed to poor 

schedule, which then contributed to poorer passenger count. The carrier's solution was to bring in 

larger aircraft and fly to a different hub. The Airport and community balked at this suggestion and 

went in search of alternatives. The solution found through the EAS process was SeaPort Air flying a 

9 passenger Pilatus. The passengers have welcomed the new service, much better schedule, and 

are elated with 'no security check' and stand by time. Passengers today will say, '/love the service', 

'great customer service,' and 'I'm sure glad I finally tried it, cause I'll be back' 

"In our particular market, the 9 passenger aircraft is perfect, and SeaPort Air provides the schedule, 

the professionalism, and customer service we need and desire." 

Docket OST-1996-1902 & Docket OST-1996-1903 

August 15, 2012 

Larry Dalrymple 

Airport Manager 

Pendleton Regional Airport 

Page 19 
SEA-~+PORT 

"I understand the importance of having dependable, reliable air service with an affordable cost. Not 

only will SeaPort Airlines meet these needs, but excel by providing great customer service, a high 

level of community involvement, and an eagerness to become a community partner". 

Our Customers 

Luci Larson 

Former Mayor & Owner of 

Action Travel 

Salina, KS 

''Two hours before the flight I booked my ticket to Memphis from Hot Springs. Wow! What a 

surprise; it was simple, convenient, great price, and impeccable service. It far exceeded my 

expectations and I will be flying to Memphis on SeaPort Airlines instead of driving from now on. The 

customer service was fabulous!" 

Ruth Ann Smith 

(Hot Springs to Memphis) 

"My husband and I recently had to make a fast trip to Dallas for the funeral of a dear friend I was not 

interested in making that drive over a fast weekend Then I remembered that SeaPort had recently 

started flights between Hot Springs and Dallas. I called SeaPort, Jim and Bob were so quick to get 

us booked, last minute so we could fly down and attend the funeral and visit with family and friends 

that we don't get to see very often. 

Everyone was so friendly, helpful and professional. It was a dream trip, even to attend a funeral. The 

pilot going down was so kind When he found out that my husband had been a ball turret gunner in 

WW/1, he gave him a set of headphones so he could listen to the communication between the pilots 

and the air traffic controllers. To say the least, my husband was impressed It was such a blessing to 

have been taken care of in such a kind and professional manner, especially under the circumstances 

of our trip. Thank you, Jim, Bob, Chris, Doug, Rodney and Michael." 

Catherine Martin 

(Hot Springs to Dallas) 

"For two decades I have been picking my mother up at the airport and for two decades I have been 

met with the defeated, hang-dog look that the ordeal of air travel has given her. I guess it pretty 

much does it to all of us, but (as she is well into her 80's) I worry about the toll it takes on her more 

and more lately 

"When I picked her up today from her SeaPort flight K52325 from Dallas and saw she was smiling, 

you could have knocked me over with a feather! She couldn't stop raving about how pleasant the 

flight was. Let me be clear My mother is a tough-as-nails Mid-western Yankee from the old school 

who has been around the world a couple of times since the late 1940's. She doesn't bestow idle 

praise and she seldom raves. 

Docket OST-1996-1902 & Docket OST-1996-1903 

August 15, 2012 Page 110 
"I'm in the service industry myself and I know how often complaints come through. I just want to be 

sure to let you know how well everyone did on this flight. In the future, I will look to SeaPort first for 

my travel needs and will spread the good word to my friends. 

"A smile and a kind word go a long way y'all. Thank you for getting this one so right." 

Mark Davis Peterson 

(Dallas to Memphis) 

"I cannot say enough wonderful things about my experience with your company. My son, who is 7, 

flew for the first time as an unaccompanied minor. Let's just say that my son and I were very 

nervous. 

On arrival to Kansas City I was welcomed with front row parking and an employee that was 

welcoming and reassuring. When his plane landed the pilot, Demetrius came and talked to me and 

my son for twenty minutes about safety and just reassuring me. He then allowed me to walk my son 

to the plane and see him off Demetrius started buckling my son into his seat and my son started to 

cry, I could see him reassuring him that everything was going to be ok. All of your employees were 

wonderful and were conscious of safety and the well-fare of my son. My son's flights from Kansas 

City to Memphis were wonderful and because of the extra attention he feels comfortable and 

unafraid of flying by himself 

You have made me a lifelong customer. My son will be flying at least once a year to see his 

Grandparent. I have told all my friends, family and co-workers about your company and how if they 

have an opportunity they should fly with SeaPort. Thank You again for making a nervous mother and 

a scared child feel comfortable." 

Misty Strayhorn 

(Kansas City to Memphis) 

"I have never had such a positive experience connected with any airline. I read about SeaPort Air 

last October when they opened the Mid-South Route, but didn't have the chance to fly until March. 

Usually the dread of the process comes then you just grin and bear it; however, with SeaPort Air I 

could arrive 15 minutes early. The hassle free no TSA is wonderful and made me feel special. I have 

flown twice in the last 2 months and the customer service from start to finish is outstanding. I will be 

a regular customer and have already recommended the airline to several associates. Thank you, 

SeaPort Air, for making me fee/like a queen!" 

Docket OST-1996-1902 & Docket OST-1996-1903 

August 15, 2012 

Catherine Martin 

(Memphis to Harrison) 

Page 111 
SEA)tPORT 

Subsidy Request & Supporting Calculations 

The following pages contain the service proposals of SeaPort Airlines to provide essential air service 

at Clovis and Silver City/Hurley/Deming, New Mexico. The proposals are presented as an 

inseparable package and require that both communities select the same aircraft type, either the 

Cessna Caravan or Piper Chieftain. 

The level of required subsidy, by airplane type, is summarized on the table below. 

Summary of Subsidy Requirement 

Clovis & Silver c· , New Mexico 

Each proposal is presented on the basis of annual subsidy requirement for each year in a two year 

term. Notwithstanding the risk of inflation in coming years (particularly related to fuel costs) that 

could possibly outstrip traffic growth and our ability to respond with reasonable fare increases, 

SeaPort is offering the Deparbnent and the community the option to contract the second year 

subsidy level for a four-year period (i.e., annual rate of $4,256,629 or $4,393,702 for each of 

the four years, depending on service option selected). We believe this provides the Athens 

community with the assurance of stable air service for an extended period and reduces the 

administrative burden on both the Department and ourselves. 

Respectfully submitted, 

Timothy Sieber 

Vice President - Commercial 

SeaPort Airlines, Inc. 

August15,2012 

Docket OST-1996-1902 & Docket OST-1996-1903 

August 15, 2012 Page 112 
SEA.-tPORT 

SeaPort Airlines, Inc. 

18 Weekly Roundtrips: Clovis- Albuquerque, NM 

Aircraft Option: Cessna Caravan 

Operating Projections 

Average Sector Length (sm) 

Scheduled Departures 

Scheduled Block Hours 

Projected Completion Factor 

Projected Completed Departures 

Projected Completed Block Hours 

Passenger Projections 

Projected Passengers 

Passengers per Departure 

Projected Average Fare 

Revenue Passenger Miles (RPMs) 

Available Seat Miles (ASMs) 

Projected Load Factor 

Financial Projections 

Revenues 

Passenger Ticket Revenues 

Ancillary Revenues 

Total 

Expenses 

Flight Operations 

Aircraft ONnership/Lease 

Fuel & Oil 

Sales & Marketing 

Traffic Servicing 

Insurance 

Maintenance 

Sub-Total- Direct 

Indirect 

Total Expenses 

Projected Operating Profiti(Loss) 

Subsidy Calculations 

Operating Loss 

Economic Return @ 5% 

I Required Subsidy 

Subsidy per Departure 

Subsidy per Passenger 

Avg. Enplanements per Operational Day 

Docket OST-1996-1902 & Docket OST-1996-1903 

August 15, 2012 

Year 1 

205 

1,872 

2,652.0 

99.0% 

1,853 

2,625.5 

5,822 

3.1 

$89.55 

1,193,510 

3,419,302 

34.9% 

$521,360 

$10,427 

$531,787 

$225,420 

$446,250 

$716,040 

$20,000 

$274,723 

$47,736 

$600,831 

$2,331,000 

$233,100 

$2,564,100 

($2,032,313) 

$2,032,313 

$128,205 

$2,160,518 

$1,165.78 

$371.10 

9.3 

Year 2 

205 

1,872 

2,652.0 

99.0% 

1,853 

2,625.5 

5,938 

3.2 

$91.34 

1,217,380 

3,419,302 

35.6% 

$542,423 

$10,848 

$553,272 

$236,691 

$468,563 

$751,842 

$21,000 

$288,459 

$50,123 

$630,873 

$2,447,550 

$244,755 

$2,692,305 

($2, 133.929) 

$2,133,929 

$134,615 

$2,268,5441 

$1,224.07 

$382.01 

9.5 

Page 113 
SeaPort Airlines, Inc. 

18 Weekly Roundtrips: Silver City- Albuquerque, NM 

Aircraft Option: Cessna Caravan 

Operating Projections 

Average Sector Length (sm) 

Scheduled Departures 

Scheduled Block Hours 

Projected Completion Factor 

Projected Completed Departures 

Projected Completed Block Hours 

Passenger Projections 

Projected Passengers 

Passengers per Departure 

Projected Average Fare 

Revenue Passenger Miles (RPMs) 

Available Seat Miles (ASMs) 

Projected Load Factor 

Financial Projections 

Revenues 

Passenger Ticket Revenues 

Ancillary Revenues 

Total 

Expenses 

Flight Operations 

Aircraft ONnership/Lease 

Fuel & Oil 

Sales & Marketing 

Traffic Servicing 

Insurance 

Maintenance 

Sub-Total- Direct 

Indirect 

Total Expenses 

Projected Operating Profit! (Loss) 

Subsidy Calculations 

Operating Loss 

Economic Return @ 5% 

I Required Subsidy 

Subsidy per Departure 

Subsidy per Passenger 

Avg. Enplanements per Operational Day 

Docket OST-1996-1902 & Docket OST-1996-1903 

August 15, 2012 

Year 1 

188 

1,872 

2,340.0 

99.0% 

1,853 

2,316.6 

5,322 

2.9 

$79.85 

1,000,536 

3,135,750 

31.9% 

$424,962 

$8,499 

$433,461 

$196,911 

$393,750 

$625,482 

$20,000 

$236,323 

$41,699 

$500,445 

$2,014,610 

$201,461 

$2,216,071 

($1,782,610) 

$1,782,610 

$110,804 

$1,893,414 

$1,021.66 

$355.77 

8.5 

Year 2 

188 

1,872 

2,340.0 

99.0% 

1,853 

2,316.6 

5,428 

2.9 

$81.45 

1,020,547 

3,135,750 

32.5% 

$442,130 

$8,843 

$450,973 

$206,757 

$413,438 

$656,756 

$21,000 

$248,140 

$43,784 

$525,467 

$2,115,341 

$211,534 

$2,326,875 

($1,871.741) 

$1,871,741 

$116,344 

$1 ,988,085l 

$1,072.74 

$366.23 

8.7 

Page 114 
===~ "' '''!'~ 

SeaPort Airlines, Inc. 

18 Weekly Roundtrips: Clovis- Albuquerque, NM 

Aircraft Option: Piper Chieftain 

Operating Projections 

Average Sector Length (sm) 

Scheduled Departures 

Scheduled Block Hours 

Projected Completion Factor 

Projected Completed Departures 

Projected Completed Block Hours 

Passenger Projections 

Projected Passengers 

Passengers per Departure 

Projected Average Fare 

Revenue Passenger Miles (RPMs) 

Available Seat Miles (ASMs) 

Projected Load Factor 

Financial Projections 

Revenues 

Passenger Ticket Revenues 

Ancillary Revenues 

Total 

Expenses 

Flight Operations 

Aircraft ONnership/Lease 

Fuel & Oil 

Sales & Marketing 

Traffic Servicing 

Insurance 

Maintenance 

Sub-Total - Direct 

Indirect 

Total Expenses 

Projected Operating Profiti(Loss) 

Subsidy Calculations 

Operating Loss 

Economic Return @ 5% 

I Required Subsidy 

Subsidy per Departure 

Subsidy per Passenger 

Avg, Enplanements per Operational Day 

Docket OST-1996-1902 & Docket OST-1996-1903 

August 15, 2012 

Year 1 

205 

1,872 

2,464,8 

9T5% 

1,825 

2,403,2 

5,822 

3,2 

$89,55 

1,193,510 

2,993,328 

39,9% 

$521,360 

$10,427 

$531,787 

$209,508 

$143,154 

$716,517 

$20,000 

$259,747 

$96,127 

$748,695 

$2,193,749 

$438,750 

$2,632,499 

($2,100,711) 

$2,100,711 

$131,625 

$2,232,336 

$1,223,06 

$383A3 

9,3 

Year 2 

205 

1872 

2465 

9T5% 

1,825 

2,403,2 

5,938 

3.3 

$91,34 

1,217,380 

2,993,328 

40,7% 

$542,423 

$10,848 

$553,272 

$219,983 

$150,312 

$752,343 

$21,000 

$272,735 

$100,934 

$786,129 

$2,303,436 

$460,687 

$2,764,124 

($2,210,852) 

$2,210,852 

$138,206 

$2,349,0581 

$1,28T01 

$395.57 

9.5 

Page 115 
SEAtPORT 

SeaPort Airlines, Inc. 

18 Weekly Roundtrips: Silver City- Albuquerque, NM 

Aircraft Option: Piper Chieftain 

Operating Projections 

Average Sector Length (sm) 

Scheduled Departures 

Scheduled Block Hours 

Projected Completion Factor 

Projected Completed Departures 

Projected Completed Block Hours 

Passenger Projections 

Projected Passengers 

Passengers per Departure 

Projected Average Fare 

Revenue Passenger Miles (RPMs) 

Available Seat Miles (ASMs) 

Projected Load Factor 

Financial Projections 

Revenues 

Passenger Ticket Revenues 

Ancillary Revenues 

Total 

Expenses 

Flight Operations 

Aircraft Ownership/Lease 

Fuel & 01 

Sales & Marketing 

Traffic Servicing 

Insurance 

Maintenance 

Sub-Total- Direct 

Indirect 

Total Expenses 

Projected Operating Profit/(Loss) 

Subsidy Calculations 

Operating Loss 

Economic Return @ 5% 

I Required Subsidy 

Subsidy per Departure 

Subsidy per Passenger 

Avg. Enplanements per Operational Day 

Docket OST -1996-1902 & Docket OST -1996-1903 

August 15, 2012 

Year 1 

188 

1,872 

2,184.0 

97.5% 

1,825 

2,129.4 

5,322 

2.9 

$79.85 

1,000,536 

2,745,101 

36.4% 

$424,962 

$8,499 

$433,461 

$180,999 

$126,846 

$619,017 

$20,000 

$221,347 

$83,047 

$635,076 

$1,886,331 

$377,266 

$2,263,597 

($1 ,830, 137) 

$1,830,137 

$113,180 

$1,943,316 

$1,064.71 

$365.15 

8.5 

Year 2 

188 

1872 

2184 

97.5% 

1,825 

2,129.4 

5,428 

3.0 

$81.45 

1,020,547 

2,745,101 

37.2% 

$442,130 

$8,843 

$450,973 

$190,049 

$133,188 

$649,967 

$21,000 

$232,415 

$87,199 

$666,830 

$1,980,648 

$396,130 

$2,376,777 

($1,925,805) 

$1,925,805 

$118,839 

$2,044,6431 

$1,120.23 

$376.65 

8.7 

Page 116