Before the United States Department of Transportation

January 18, 2012

Proposal to Provide Essential Air Service at

MUSCLE SHOALS, ALABAMA

GREENVILLE, MISSISSIPPI

LAUREL/HATTIESBURG, MISSISSIPPI

TUPELO, MISSISSIPPI

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

Docket DOT-OST-2000-7856

Docket DOT-OST-2008-0209

Docket DOT-OST-2001-10685

Docket DOT-OST-2009-0305

SeaPort Airlines, Inc.

Proposal to Provide Essential Air Service

By Order 2011-9-5, the Department requested proposals for essential air service (EAS) at a 

total of 23 communities. Pursuant to that Order, SeaPort submitted a proposal to provide 

subsidized essential air service at the communities of Muscle Shoals, Alabama (MSL); and 

Greenville (GLH), Laurel/Hattiesburg (PIB), and Tupelo, Mississippi (TUP) on October 14, 2011.

The communities rejected all proposals and by Order 2011-11-29 issued on November 23, 

2011, the Department requested a second round of proposals. Pursuant to that Order, SeaPort 

respectfully submits this timely proposal to provide subsidized essential air service to the 

communities of Muscle Shoals, Alabama; and Greenville, Laurel/Hattiesburg, and Tupelo, 

Mississippi.

Correspondence regarding this proposal should be directed to:

Timothy Sieber

Vice President – Strategy & Corporate Development

SeaPort Airlines, Inc.

7505 NE Airport Way

Portland, OR 97218

(971) 340-1716

tsieber@seaportair.com
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SeaPort Airlines Overview

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

commercial aviation. Our company’s foundation is built on efficient and reliable service to rural 

communities. Both SeaPort Airlines and our sister brand, Wings of Alaska, currently operate 

service under the Essential Air Service program as well as on an unsubsidized basis.

1

Effective March 1, 2012, SeaPort’s approximately 185 professionals will operate an average of 

80 daily departures to 20 cities in nine states. Our business model is focused on providing 

affordable and reliable air service to smaller communities, particularly ones that the mega-airline 

brands no longer have the operational or economic capability to effectively serve. 

SeaPort delivers Essential Air Service to seven communities: Excursion Inlet, Alaska; 

Pendleton, Oregon; El Dorado, Hot Springs, and Harrison, Arkansas; Salina, Kansas; and 

Jackson, Tennessee. In each of these cases, after award of the EAS contract by U.S. DOT, we 

have started by the date promised and with fares at or below those outlined in our proposal. We 

would note that this stands in contrast to some other airlines that place bids with unreasonable 

fares that are never realized by the traveling public, delay the start of service, or do not launch 

service that has been awarded by the Department.

 

1 Wings of Alaska is the premier airline serving Southeast Alaska providing scheduled passenger service, freight and 

charter service between Juneau and Skagway, Haines, Hoonah, Gustavus, and weekly flights to Excursion Inlet. 

Wings of Alaska grew in reputation and size, becoming one of the most successful regional air carriers in Alaska, now 

comprised of a fleet of Cessna 207s and Grand Caravans.
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Aircraft

SeaPort Airlines is proposing to provide service at Muscle Shoals, Laurel/Hattiesburg, 

Greenville, and Tupelo utilizing Cessna Caravan turboprop aircraft. 

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, Cessna 402, 

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

flight hours. SeaPort Airlines currently operates five Cessna Caravans, with additional units

planned for delivery during the first half of 2012. 

The Caravan has a spacious cabin that seats nine passengers and we believe this type of 

aircraft offers the “right size” capacity increment for each of the communities, enabling us to 

offer optimal frequency levels and reasonable fares while simultaneously minimizing the 

required level of subsidy. While the Caravan is certified for single-pilot operation, SeaPort 

typically operates with both a Captain and First Officer.

The large cargo pod on the belly of the aircraft facilitates carriage of baggage volumes and 

weights much greater than that which can be accommodated on older piston-powered twins, 

and includes the ability to segregate passenger baggage for security purposes.

A Track Record of Building Community Partnerships

SeaPort Airlines prides itself on developing partnerships with each community it serves. This 

includes participation in local events, donation of tickets, regular community meetings, and 

advance notification of, and opportunity for input, related to schedule changes and fares. We 

believe this approach serves our own interests equally with those of the community by fostering 

long-term, stable relationships that result in increased ridership and, eventually, reduced 

subsidy requirements. We encourage the communities in this proposal to contact any of the 

EAS communities we serve for additional information. 
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Pricing Model

SeaPort Airlines employs a pricing strategy of reasonable and attractive fares that factors in 

ticket prices at other airports in the region (i.e., likely leakage points), total itinerary costs 

including connecting flights on other airlines, costs of other modes of transportation, and the 

need to minimize subsidy level and taxpayer expenditures. 

The range of fares and forecasted average fare for each of the cities to each proposed hub is 

shown on the table below. All fares illustrated are one-way with varying levels of required 

advance purchase and inventory control.

SeaPort Airlines Fares

Pricing Range & Average

EAS Community Memphis Nashville New Orleans

Muscle Shoals, AL (MSL)

Fares from $39-

$89; average of 

$57.50

Fares from $29-

$69; average of 

$49.50

N/A

Greenville, MS (GLH)

Fares from $29-

$79; average of 

$45.25

Fares from $49-

$109; average of 

$65.50

Fares from $59-

$129; average of 

$79.95

Laurel/Hattiesburg, MS (PIB) N/A

Fares from $49-

$109; average of 

$67.20

Fares from $29-

$59; average of 

$37.70

Tupelo, MS (TUP)

Fares from $29-

$69; average of 

$38.10

Fares from $39-

$79; average of

$55.90

Fares from $59-

$129; average of 

$71.15

NOTE: Listed fares include taxes and fees.

We believe the fares illustrated represent a responsible approach to pricing in EAS communities 

and which is consistent with the overall objectives of the EAS program. SeaPort Airlines does 

not engage in “baiting” communities with low fares that are not sustainable. Rather, we focus on 

balancing the need to maintain low levels of subsidy with the goal of maximizing the number of 

passengers using local air service.

Other approaches to pricing used by some carriers shift the true cost of air transportation from 

the consumer to the Department and we believe are inconsistent with the intent of the essential 

air service program to ensure reasonable access to the air transportation system for smaller 

communities. Equally as important, the resultant higher levels of subsidy required by offering 

unreasonably low fares can increase the risk of a community exceeding the $200 per passenger 

subsidy limitation.
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Global Distribution & Interline Connectivity

SeaPort has a presence in all five major global distribution systems. This enables our flights to 

be available on all major online travel agencies and meta-searchers including Orbitz, 

Travelocity, Expedia, Kayak, Hipmunk, and CheapoAir. 

SeaPort currently has an interline ticketing agreement with US Airways and is working toward 

securing agreements with other carriers to allow single-ticket itineraries from each of the 

communities in this proposal to destinations around the world.2 Among the carriers we are 

pursuing interline agreements with are Delta Air Lines, United Airlines, Alaska Airlines, and 

Frontier Airlines. We have found some major carriers more receptive to interlining that provides 

rural communities with much needed connectivity than others, but nonetheless these 

agreements remain among the highest priorities for SeaPort management.

Marketing & Public Relations Strategy

SeaPort will implement a comprehensive marketing and public relations strategy aimed at 

introducing our brand to the community and maximizing the number of passengers onboard. In 

addition to local advertising, these activities 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 food drives, 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.).

 Website: The majority of SeaPort’s passengers book through the Company’s website 

(www.SeaPortAirlines.com). 

 Social Media: Since 2010, SeaPort Airlines has managed a successful social media 

campaign that has allowed the Company to dynamically engage its customer base in a twoway conversation through sites such as Facebook, Twitter, FourSquare & LinkedIn. 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 the four communities in 

this proposal.

 FlyerFlex Customer Rewards: SeaPort Airlines offers a customer loyalty program called 

“FlyerFlex.” This program provides customers with a variety of benefits including free flights, 

service charge waivers, and bonus points. Enhancements to the FlyerFlex program are 

planned during 2012 that will include a wider choice of travel rewards and additional 

customer benefits.

 

2 US Airways serves all of the three hubs – Memphis, Nashville, and New Orleans – that are being offered to the 

communities in this proposal as access points to the national air transportation system.
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 Value Accounts: SeaPort offers a Corporate Value Account in every community served. 

This program encourages businesses to make a long-term investment in local air service by 

offering a variety of benefits such as change fee waivers and savings of 5% to 15% off 

published fares. 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 the following proposals, SeaPort Airlines has allocated specific dollar amounts for marketing 

and sales activity appropriate to each community and service pattern. These budgets factor in 

that SeaPort will be a new brand in these communities and the resultant need to engage in 

aggressive sales and marketing activities to ensure continued use of the local airport.

Access to Multiple Hubs 

For each community, SeaPort Airlines is offering multiple proposal options for consideration that

includes service to New Orleans, Nashville and/or Memphis. The option of multiple access 

points results in greater choice for consumers and will assist each community in this proposal to 

maximize the level of traffic retention at their local airport. This is based on our experience in 

Arkansas communities, where the addition of Dallas and/or Kansas City to existing Memphis 

service resulted in significant traffic growth. We strongly believe similar results will be achieved 

in the communities in this proposal.

The connecting opportunities afforded by each airport are discussed on the following pages:
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Nonstop Destinations from Memphis International Airport

January 2012

SOURCE: OAG

Memphis International Airport is a major connecting hub for Delta Air Lines, offering one-stop 

connecting service to virtually every metropolitan area in the United States, service to 

Amsterdam which functions as a major European hub, and Toronto. In addition to Delta, virtually 

every major airline brand serves Memphis.

Delta’s flight schedule at MEM is structured into three distinctive connecting banks and, if 

selected to provide service in these communities, SeaPort is committed to providing each 

community with flights that are well timed for connections.
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Nonstop Destinations from

Louis Armstrong New Orleans International Airport

January 2012

SOURCE: OAG

New Orleans is a major commercial center for the Southern United States, including the 

financial, medical, educational, legal, energy, and government sectors. Tourism, of course, is a 

major component of the New Orleans economy and if awarded the EAS contract in these 

markets, SeaPort would endeavor to offer weekend packages to these communities’ residents.

Louis Armstrong New Orleans International Airport offers consumers connecting opportunities to 

over 35 airports on a nonstop basis, as well as access to the networks of every major airline and 

each of the three major global alliances. Of particular interest to the communities should be New 

Orleans’ competitive environment resulting from a large percentage of low fare carrier service. 

jetBlue, Frontier, AirTran, and Southwest offer nearly half of the departing seats from MSY each 

day.3 This results in the low-fare brands setting the ceiling on fares to and from New Orleans 

such that even when a passenger connects to a legacy brand carrier (i.e., Delta, American, 

United, etc.), they will realize the benefits of such price competition. 

 

3 While SeaPort Airlines (along with every other U.S. based airline) does not have an interline ticketing and baggage 

agreement with Southwest Airlines, Internet savvy consumers figured out long ago how to build “end to end” 

connecting itineraries with this carrier, as well as others. This has been validated in a number of our other EAS 

markets that are linked with airports served by Southwest (as well as other low-fare airlines).
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Nonstop Destinations from Nashville International Airport

January 2012

Nashville offers access to legacy carrier networks and low-fare airlines. During January 2012, 

the carriers serving Nashville International Airport provide an average of 169 daily departures to 

47 nonstop destinations in the United States and Canada.

Southwest is the dominate carrier at Nashville, providing over 40% of the daily departing seats 

at BNA. Southwest’s service is complemented by Frontier Airlines, which provides service to its 

hubs at Milwaukee and Denver, with further onward connections.

At each of the hub airports, SeaPort Airlines proposes the following terminal arrangements:

 Nashville (BNA): SeaPort Airlines will operate from the main terminal with TSA screening 

and ground handling provided by American Eagle.4

 New Orleans (MSY): SeaPort Airlines will operate from the main terminal with TSA 

screening. The company has not determined whether we will employ our own staff or utilize 

a third-party ground handler. This decision will be made after the carrier selection process in 

these Dockets and the number of operations that we would have at MSY is known. We have 

maintained a dialogue with Louis Armstrong New Orleans International Airport and ground 

handling entities throughout, however, and will be ready to implement main terminal 

operations.

 

4

SeaPort will begin service to BNA from Jackson, TN on January 22, 2012.
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 Memphis (MEM): SeaPort Airlines continues to pursue an agreement on economically 

viable terms to sublease space or enter into a handling agreement at the main terminal of 

Memphis International Airport. Until such an agreement is reached, Memphis operations will 

be at our existing private terminal that offers convenience for quick trips to and from the 

Memphis metropolitan area with complimentary and quick shuttle service to the main 

terminal for passengers making connections at MEM.

5

Frequency Levels

In Order 2011-11-29, the Department specifically stated that: “For proposals with 8/9-seat 

aircraft, we would expect proposals for four round trips a day (24 a week).”6

In some cases, SeaPort is proposing service patterns that result in flight frequencies being 

shared among more than one community. In these cases, the proposed service pattern 

equates to 36 weekly round trips. While Order 2011-11-29 is silent on such service patterns, we 

note that Order 2011-9-5 stated: “We may subsidize additional frequencies if the affected 

community is served in conjunction with another community.”7

Passenger Traffic Projections

To develop projections of traffic and revenue for each community in this proposal, as well as the 

resultant subsidy requests, SeaPort Airlines utilized the same Quality Service Index (QSI) 

forecasting methodology that was utilized to prepare our proposals submitted on October 14, 

2011. As we pointed out in that proposal, this approach considers frequency levels, connecting 

options, brand (i.e., independent v code-share), aircraft size, average fares, etc. 

Given that frequency levels are a weighted factor, the frequencies requested by the Department 

in Order 2011-11-29 resulted in traffic projections for the proposals herein that are lower than 

historical levels provided in Appendix B of that Order. This is illustrated on the table on the next 

page.

 

5

In anticipation of reaching an agreement to sub-lease space at MEM, SeaPort proposes to maintain TSA screening 

in each of the EAS communities and continue screening of all outbound passengers including those bound for 

Memphis.

6 Order 2011-11-29, p. 2

7 Order 2011-9-5, p. 6
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Market Level O&D Traffic Comparisons

Recent Years v SeaPort Airlines Proposal

We raise this point because during communication with the EAS Division related to another 

Docket, SeaPort Airlines was advised that the Department’s calculation of whether a proposal 

meets statutory requirements is based on actual passenger counts and not a carrier’s forecast. 

Notwithstanding that application of numbers, we believe the forecasts which we have developed 

represent a reasonable estimate of traffic that will be generated in each market and therefore 

provides the basis for the proposals contained herein which “simultaneously satisfy the 

community’s needs and minimize taxpayer expenditures.”

Muscle Shoals Tupelo Greenville Hattiesburg/Laurel

YE 2Q 2009 9,646 29,451 10,948 23,202

YE 2Q 2010 16,756 23,396 12,296 28,808

YE 2Q 2011 16,949 26,228 14,759 29,367

SeaPort Option -1 11,987 12,577 11,665 13,678

SeaPort Option -2 11,622 13,125 13,119 15,992

SeaPort Option -3 11,794 13,876 11,298 N/A

SeaPort Option -4 N/A 13,616 N/A N/A

HISTORICAL TRAFFIC LEVELS

PROJECTED TRAFFIC LEVELS
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Proposal: Greenville, Mississippi (GLH)

SeaPort Airlines is offering the community of Greenville, Mississippi three service options as 

illustrated by the maps and representative schedules below:8

Greenville, Mississippi (Mid-Delta Regional Airport)

Map of Service Pattern Options

 

8

In all cases, the schedules provided in this proposal are intended to illustrate the type of schedule that SeaPort would provide. 

Actual schedules will be developed after consulting with each community.
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Representative Schedule for Service Pattern Options

Note that options G-1 and G-3 are standalone proposals. Option G-2 is a contingent proposal, in 

this case being contingent on SeaPort Airlines being awarded the EAS contract to serve Tupelo, 

MS and that community selecting option T-3 (see proposal below).

For purposes of calculating subsidy requirement in option G-2 that includes one-stop service to 

Nashville via Tupelo: 

 50% of the direct operating costs of flight segments between Greenville and Tupelo have 

been allocated to Greenville and 50% of the direct operating costs have been allocated to 

Tupelo;

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

10:45am 11:35am ExSun 0 1:15pm 2:05pm ExSat 0

6:35pm 7:25pm ExSat 0 7:50pm 8:40pm ExSat 0

6:15am 8:00am ExSun 0 8:45am 10:30am ExSun 0

2:20pm 4:05pm ExSat 0 4:35pm 6:20pm ExSat 0

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

10:45am 12:50pm ExSun 1 8:10am 10:35am ExSun 1

3:05pm 5:10pm ExSat 1 1:20pm 3:25pm ExSat 1

6:15am 8:00am ExSun 0 8:45am 10:30am ExSun 0

10:50am 12:35pm ExSun 0 1:05pm 2:50pm ExSun 0

3:40pm 5:25pm ExSat 0 6:00pm 7:45pm ExSat 0

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

6:30am 7:20am ExSun 0 9:00am 9:50am ExSun 0

2:20pm 3:10pm ExSun 0 3:30pm 4:20pm ExSat 0

5:00pm 5:50pm ExSat 0 7:50pm 8:40pm ExSat 0

10:05am 11:50am ExSun 0 12:20pm 2:05pm ExSun 0

(Standalone Proposal)

From Greenville to Memphis From Memphis to Greenville

From Greenville to New Orleans From New Orleans to Greenville

6 Weekly Roundtrips: Greenville - New Orleans

GLH Option G-1

From Greenville to Memphis From Memphis to Greenville

12 Weekly Roundtrips: Greenville - Memphis

(Standalone Proposal)

12 Weekly Roundtrips: Greenville - New Orleans

From Greenville to New Orleans From New Orleans to Greenville

From Greenville to New Orleans From New Orleans to Greenville

GLH Option G-2

12 Weekly Roundtrips: Greenville - Nashville (via TUP)

18 Weekly Roundtrips: Greenville - New Orleans

(Contingent on Tupelo Selecting Option T-3)

From Greenville to Nashville From Nashville to Greenville

GLH Option G-3

18 Weekly Roundtrips: Greenville - Memphis
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 100% of the revenue generated by passengers traveling between Greenville and Nashville

has been allocated to the Greenville market; and

 Zero traffic is forecast between Greenville and Tupelo.

It is also worth noting that option G-2 has more than 24 weekly round trips which results from 

two communities sharing frequencies. 
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Operating Projections

Average Sector Length (sm) 183

Scheduled Departures 2,496

Scheduled Block Hours 3,224.0

Projected Completion Factor 98.0%

Projected Completed Departures 2,446

Projected Completed Block Hours 3,159.5

Passenger Projections

Projected Passengers 12,224

Passengers per Departure 5.0

Projected Average Fare $68.25

Revenue Passenger Miles (RPMs) 2,236,992

Available Seat Miles (ASMs) 4,028,694

Projected Load Factor 55.5%

Financial Projections

Revenues

Passenger Ticket Revenues $834,275

Ancillary Revenues $12,514

Total $846,790

Expenses

Flight Operations $268,559

Aircraft Ownership/Lease $240,000

Fuel & Oil $938,377

Sales & Marketing $70,000

Traffic Servicing $474,464

Insurance $56,871

Maintenance $658,819

Sub-Total - Direct $2,707,091

Indirect $378,993

Total Expenses $3,086,084

Projected Operating Profit/(Loss) ($2,239,294)

Subsidy Calculations

Operating Loss $2,239,294

Economic Return @ 5% $154,304

Required Subsidy $2,393,598

Subsidy per Departure $978.54

Subsidy per Passenger $195.81

(Standalone Proposal)

GLH Option G-1

SeaPort Airlines, Inc.

12 Weekly Roundtrips: Greenville - Memphis

12 Weekly Roundtrips: Greenville - New Orleans
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Operating Projections

Average Sector Length (sm) 202

Scheduled Departures 3,120

Scheduled Block Hours 4,524.0

Projected Completion Factor 98.0%

Projected Completed Departures 3,058

Projected Completed Block Hours 4,433.5

Passenger Projections

Projected Passengers 14,447

Passengers per Departure 4.7

Projected Average Fare $73.60

Revenue Passenger Miles (RPMs) 2,912,515

Available Seat Miles (ASMs) 5,547,709

Projected Load Factor 52.5%

Financial Projections

Revenues

Passenger Ticket Revenues $1,063,352

Ancillary Revenues $15,950

Total $1,079,303

Expenses

Flight Operations $324,870

Aircraft Ownership/Lease $360,000

Fuel & Oil $1,135,134

Sales & Marketing $70,000

Traffic Servicing $382,200

Insurance $68,796

Maintenance $942,564

Sub-Total - Direct $3,283,564

Indirect $459,699

Total Expenses $3,743,263

Projected Operating Profit/(Loss) ($2,663,960)

Subsidy Calculations

Operating Loss $2,663,960

Economic Return @ 5% $187,163

Required Subsidy $2,851,123

Subsidy per Departure $932.47

Subsidy per Passenger $197.35

(Contingent on Tupelo Selecting Option T-3)

SeaPort Airlines, Inc.

GLH Option G-2

12 Weekly Roundtrips: Greenville - Nashville (via Tupelo)

18 Weekly Roundtrips: Greenville - New Orleans
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Operating Projections

Average Sector Length (sm) 153

Scheduled Departures 2,496

Scheduled Block Hours 2,652.0

Projected Completion Factor 98.0%

Projected Completed Departures 2,446

Projected Completed Block Hours 2,599.0

Passenger Projections

Projected Passengers 11,298

Passengers per Departure 4.6

Projected Average Fare $61.83

Revenue Passenger Miles (RPMs) 1,722,945

Available Seat Miles (ASMs) 3,357,245

Projected Load Factor 51.3%

Financial Projections

Revenues

Passenger Ticket Revenues $698,580

Ancillary Revenues $10,479

Total $709,058

Expenses

Flight Operations $220,912

Aircraft Ownership/Lease $240,000

Fuel & Oil $771,891

Sales & Marketing $70,000

Traffic Servicing $259,896

Insurance $46,781

Maintenance $483,407

Sub-Total - Direct $2,092,887

Indirect $293,004

Total Expenses $2,385,891

Projected Operating Profit/(Loss) ($1,676,832)

Subsidy Calculations

Operating Loss $1,676,832

Economic Return @ 5% $119,295

Required Subsidy $1,796,127

Subsidy per Departure $734.29

Subsidy per Passenger $158.98

(Standalone Proposal)

SeaPort Airlines, Inc.

GLH Option G-3

18 Weekly Roundtrips: Greenville - Memphis

6 Weekly Roundtrips: Greenville - New Orleans
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Proposal: Tupelo, MS (TUP)

SeaPort Airlines is offering the community of Tupelo, Mississippi four service options as 

illustrated by the map and representative schedules below. 

Tupelo, Mississippi (Tupelo Regional Airport)

Map of Service Pattern Options
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Representative Schedule for Service Pattern Options

Options T-1 and T-2 are presented as standalone proposals. Option T-3 is contingent on 

SeaPort being awarded the EAS contract at Greenville, MS and that community selecting option 

G-2. Option T-4 is contingent on SeaPort being awarded the EAS contract at Hattiesburg/

Laurel, MS and that community selecting option L-2. 

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

10:00am 10:40am ExSun 0 1:30pm 2:10pm ExSat 0

6:30am 7:40am ExSun 0 8:10am 9:20am ExSun 0

2:25pm 3:35pm ExSat 0 4:05pm 5:15pm ExSat 0

5:30pm 6:40pm ExSat 0 7:10pm 8:20pm ExSat 0

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

10:00am 10:40am ExSun 0 1:30pm 2:10pm ExSat 0

5:30pm 6:10pm ExSat 0 7:45pm 8:25pm ExSat 0

6:30am 7:40am ExSun 0 8:10am 9:20am ExSun 0

2:25pm 3:35pm ExSat 0 4:05pm 5:15pm ExSat 0

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

6:30am 7:40am ExSun 0 8:10am 9:20am ExSun 0

12:00pm 1:10pm ExSun 0 2:00pm 3:10pm ExSat 0

4:20pm 5:30pm ExSat 0 6:00pm 7:10pm ExSat 0

9:35am 12:35pm ExSun 1 8:45am 11:45am ExSun 1

3:25pm 6:25pm ExSat 1 1:05pm 4:05pm ExSat 1

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

6:30am 7:40am ExSun 0 8:10am 9:20am ExSun 0

11:05am 12:15pm ExSun 0 12:45pm 1:55pm ExSat 0

4:20pm 5:30pm ExSat 0 6:00pm 7:10pm ExSat 0

9:35am 11:55am ExSun 1 8:30am 10:50am ExSun 1

2:10pm 4:30pm ExSat 1 1:45pm 4:05pm ExSat 1

From Memphis to Tupelo

From Tupelo to Nashville From Nashville to Tupelo

From Tupelo to New Orleans via GLH From New Orleans to Tupelo via GLH

TUP Option T-3

18 Weekly Roundtrips: Tupelo - Nashville

12 Weekly Roundtrips: Tupelo - New Orleans (via GLH)

(Contingent on Greenville Selecting Option G-2)

From Tupelo to Nashville From Nashville to Tupelo

TUP Option T-4

18 Weekly Roundtrips: Tupelo - Nashville

12 Weekly Roundtrips: Tupelo - New Orleans (via PIB)

TUP Option T-1

From Tupelo to Memphis From Memphis to Tupelo

TUP Option T-2

12 Weekly Roundtrips: Tupelo - Nashville

18 Weekly Roundtrips: Tupelo - Nashville

(Standalone Proposal)

6 Weekly Roundtrips: Tupelo - Memphis

From Tupelo to Nashville From Nashville to Tupelo

12 Weekly Roundtrips: Tupelo - Memphis

(Standalone Proposal)

From Tupelo to Memphis

(Contingent on Laurel/Hattiesburg Selecting Option L-2)

From Tupelo to Nashville From Nashville to Tupelo

From Tupelo to New Orleans via PIB From New Orleans to Tupelo via PIB
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For purposes of calculating subsidy requirement in options that include one-stop service shared 

with another community:

 50% of the direct operating costs of flight segments between the other community and 

Tupelo have been allocated to Tupelo with the remaining 50% allocated to the other EAS 

community.

 100% of the revenue generated by passengers traveling to and from Tupelo on these 

shared routings have been allocated to the Tupelo market; and

 Zero traffic is forecast between Tupelo and the other EAS community.

It is also worth noting that options T-3 and T-4 have more than 24 weekly round trips which, as 

discussed, results from the two communities sharing frequencies.
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Operating Projections

Average Sector Length (sm) 152

Scheduled Departures 2,496

Scheduled Block Hours 2,600.0

Projected Completion Factor 98.0%

Projected Completed Departures 2,446

Projected Completed Block Hours 2,548.0

Passenger Projections

Projected Passengers 12,577

Passengers per Departure 5.1

Projected Average Fare $50.02

Revenue Passenger Miles (RPMs) 1,914,848

Available Seat Miles (ASMs) 3,351,741

Projected Load Factor 57.1%

Financial Projections

Revenues

Passenger Ticket Revenues $629,042

Ancillary Revenues $9,436

Total $638,478

Expenses

Flight Operations $216,580

Aircraft Ownership/Lease $240,000

Fuel & Oil $756,756

Sales & Marketing $70,000

Traffic Servicing $374,318

Insurance $45,864

Maintenance $545,076

Sub-Total - Direct $2,248,594

Indirect $314,803

Total Expenses $2,563,397

Projected Operating Profit/(Loss) ($1,924,920)

Subsidy Calculations

Operating Loss $1,924,920

Economic Return @ 5% $128,170

Required Subsidy $2,053,089

Subsidy per Departure $839.34

Subsidy per Passenger $163.24

SeaPort Airlines, Inc.

18 Weekly Roundtrips: Tupelo - Nashville

6 Weekly Roundtrips: Tupelo - Memphis

(Standalone Proposal)

TUP Option T-1
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Operating Projections

Average Sector Length (sm) 131

Scheduled Departures 2,496

Scheduled Block Hours 2,288.0

Projected Completion Factor 98.0%

Projected Completed Departures 2,446

Projected Completed Block Hours 2,242.2

Passenger Projections

Projected Passengers 13,125

Passengers per Departure 5.4

Projected Average Fare $48.95

Revenue Passenger Miles (RPMs) 1,712,813

Available Seat Miles (ASMs) 2,872,921

Projected Load Factor 59.6%

Financial Projections

Revenues

Passenger Ticket Revenues $642,445

Ancillary Revenues $9,637

Total $652,081

Expenses

Flight Operations $190,590

Aircraft Ownership/Lease $240,000

Fuel & Oil $665,945

Sales & Marketing $70,000

Traffic Servicing $346,288

Insurance $40,360

Maintenance $417,057

Sub-Total - Direct $1,970,241

Indirect $275,834

Total Expenses $2,246,075

Projected Operating Profit/(Loss) ($1,593,994)

Subsidy Calculations

Operating Loss $1,593,994

Economic Return @ 5% $112,304

Required Subsidy $1,706,297

Subsidy per Departure $697.56

Subsidy per Passenger $130.00

(Standalone Proposal)

12 Weekly Roundtrips: Tupelo - Memphis

SeaPort Airlines, Inc.

TUP Option T-2

12 Weekly Roundtrips: Tupelo - Nashville
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Operating Projections

Average Sector Length (sm) 160

Scheduled Departures 3,120

Scheduled Block Hours 3,432.0

Projected Completion Factor 98.0%

Projected Completed Departures 3,058

Projected Completed Block Hours 3,363.4

Passenger Projections

Projected Passengers 13,876

Passengers per Departure 4.5

Projected Average Fare $62.72

Revenue Passenger Miles (RPMs) 2,214,610

Available Seat Miles (ASMs) 4,391,937

Projected Load Factor 50.4%

Financial Projections

Revenues

Passenger Ticket Revenues $870,371

Ancillary Revenues $13,056

Total $883,426

Expenses

Flight Operations $233,906

Aircraft Ownership/Lease $360,000

Fuel & Oil $817,296

Sales & Marketing $70,000

Traffic Servicing $275,184

Insurance $49,533

Maintenance $582,990

Sub-Total - Direct $2,388,910

Indirect $334,447

Total Expenses $2,723,358

Projected Operating Profit/(Loss) ($1,839,931)

Subsidy Calculations

Operating Loss $1,839,931

Economic Return @ 5% $136,168

Required Subsidy $1,976,099

Subsidy per Departure $646.29

Subsidy per Passenger $142.41

SeaPort Airlines, Inc.

TUP Option T-3

18 Weekly Roundtrips: Tupelo - Nashville

12 Weekly Roundtrips: Tupelo - New Orleans (via GLH)

(Contingent on Greenville Selecting Option G-2)
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Operating Projections

Average Sector Length (sm) 183

Scheduled Departures 3,120

Scheduled Block Hours 3,848.0

Projected Completion Factor 98.0%

Projected Completed Departures 3,058

Projected Completed Block Hours 3,771.0

Passenger Projections

Projected Passengers 13,616

Passengers per Departure 4.5

Projected Average Fare $62.56

Revenue Passenger Miles (RPMs) 2,489,005

Available Seat Miles (ASMs) 5,030,364

Projected Load Factor 49.5%

Financial Projections

Revenues

Passenger Ticket Revenues $851,872

Ancillary Revenues $12,778

Total $864,650

Expenses

Flight Operations $251,233

Aircraft Ownership/Lease $360,000

Fuel & Oil $877,837

Sales & Marketing $70,000

Traffic Servicing $188,552

Insurance $53,202

Maintenance $620,904

Sub-Total - Direct $2,421,728

Indirect $339,042

Total Expenses $2,760,770

Projected Operating Profit/(Loss) ($1,896,120)

Subsidy Calculations

Operating Loss $1,896,120

Economic Return @ 5% $138,039

Required Subsidy $2,034,159

Subsidy per Departure $665.28

Subsidy per Passenger $149.39

(Contingent on Laurel/Hattiesburg Selecting Option L-2)

SeaPort Airlines, Inc.

TUP Option T-4

18 Weekly Roundtrips: Tupelo - Nashville

12 Weekly Roundtrips: Tupelo - New Orleans (via PIB)
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Proposal: Hattiesburg/Laurel, MS (PIB)

SeaPort Airlines is offering the communities of Laurel and Hattiesburg, Mississippi two service 

options as illustrated by the representative schedules below:

Hattiesburg/Laurel, Mississippi

(Hattiesburg-Laurel Regional Airport)

Map of Service Pattern Options
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Representative Schedule for Service Pattern Options

Option L-1 is contingent on SeaPort Airlines being awarded the contract to provide EAS service 

at Greenville, MS (any option presented) or awarded the EAS contract to provide service at 

Tupelo and that community selecting option T-3 or T-4. In this case, the contingency is 

necessary to allow for aircraft to be rotated back to our maintenance base in Memphis and is 

not due to shared frequencies. As a result 100% of the operating costs and revenues for option 

L-1 are allocated to Hattiesburg/Laurel for purposes of calculating subsidy requirements. 

Option L-2 is contingent on SeaPort Airlines being awarded the EAS contract to provide service 

at Tupelo and that community selecting option T-4. For purposes of calculating subsidy 

requirement on option L-2 that includes one-stop service from Laurel/Hattiesburg to Nashville 

via Tupelo:

 50% of the direct operating costs of flight segments between Laurel/Hattiesburg and Tupelo 

have been allocated to Laurel/Hattiesburg for purposes of calculating subsidy requirements

with the remaining 50% allocated to Tupelo;

 100% of the revenue generated by passengers traveling between Laurel/Hattiesburg and 

and Nashville has been allocated to the Laurel/Hattiesburg market; and

 Zero traffic is forecast between Tupelo and Laurel/Hattiesburg.

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

6:15am 7:00am ExSun 0 8:30am 9:15am ExSun 0

10:30am 11:15am ExSun 0 11:45am 12:30pm ExSat 0

1:30pm 2:15pm ExSat 0 2:45pm 3:30pm ExSat 0

4:00pm 4:45pm ExSat 0 7:00pm 7:45pm ExSat 0

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

9:30am 11:55am ExSun 1 8:10am 10:55am ExSun 1

1:25pm 3:50pm ExSat 1 12:30pm 2:50pm ExSat 1

6:15am 7:00am ExSun 0 8:30am 9:15am ExSun 0

11:10am 11:55am ExSun 0 12:25pm 1:10pm ExSat 0

3:05pm 3:50pm ExSat 0 7:00pm 7:45pm ExSat 0

12 Weekly Roundtrips: Laurel/Hattiesburg - Nashville (via TUP)

(Contingent on Tupelo Selecting TUP Option T-4)

From Laurel/Hattiesburg to Nashville From Nashville to Laurel/Hattiesburg

From Laurel/Hattiesburg to New Orleans From New Orleans to Laurel/Hattiesburg

PIB Option L-1

From Laurel/Hattiesburg to New Orleans From New Orleans to Laurel/Hattiesburg

PIB Option L-2

18 Weekly Roundtrips: Laurel/Hattiesburg - New Orleans

24 Weekly Roundtrips: Laurel/Hattiesburg - New Orleans

(Contingent on Greenvile Selecting Option G-1, G-2, G-3, or

or Tupelo selecting option T-3 or T-4)
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Operating Projections

Average Sector Length (sm) 115

Scheduled Departures 2,496

Scheduled Block Hours 1,872.0

Projected Completion Factor 98.0%

Projected Completed Departures 2,446

Projected Completed Block Hours 1,834.6

Passenger Projections

Projected Passengers 13,678

Passengers per Departure 5.6

Projected Average Fare $37.70

Revenue Passenger Miles (RPMs) 1,572,970

Available Seat Miles (ASMs) 2,531,693

Projected Load Factor 62.1%

Financial Projections

Revenues

Passenger Ticket Revenues $515,661

Ancillary Revenues $7,735

Total $523,396

Expenses

Flight Operations $159,120

Aircraft Ownership/Lease $240,000

Fuel & Oil $555,984

Sales & Marketing $70,000

Traffic Servicing $285,176

Insurance $33,696

Maintenance $373,992

Sub-Total - Direct $1,717,968

Indirect $240,515

Total Expenses $1,958,483

Projected Operating Profit/(Loss) ($1,435,087)

Subsidy Calculations

Operating Loss $1,435,087

Economic Return @ 5% $97,924

Required Subsidy $1,533,012

Subsidy per Departure $626.72

Subsidy per Passenger $112.08

Tupelo selecting option T-3 or T-4)

(Contingent on Greenville Selecting Option G-1, G-2, G-3, or

24 Weekly Roundtrips: Laurel/Hattiesburg - New Orleans

PIB Option L-1

SeaPort Airlines, Inc.
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Operating Projections

Average Sector Length (sm) 147

Scheduled Departures 3,120

Scheduled Block Hours 3,068.0

Projected Completion Factor 98.0%

Projected Completed Departures 3,058

Projected Completed Block Hours 3,006.6

Passenger Projections

Projected Passengers 15,992

Passengers per Departure 5.2

Projected Average Fare $47.18

Revenue Passenger Miles (RPMs) 2,357,221

Available Seat Miles (ASMs) 4,056,212

Projected Load Factor 58.1%

Financial Projections

Revenues

Passenger Ticket Revenues $754,528

Ancillary Revenues $11,318

Total $765,846

Expenses

Flight Operations $186,259

Aircraft Ownership/Lease $360,000

Fuel & Oil $650,810

Sales & Marketing $70,000

Traffic Servicing $444,024

Insurance $39,443

Maintenance $407,578

Sub-Total - Direct $2,158,114

Indirect $302,136

Total Expenses $2,460,251

Projected Operating Profit/(Loss) ($1,694,404)

Subsidy Calculations

Operating Loss $1,694,404

Economic Return @ 5% $123,013

Required Subsidy $1,817,417

Subsidy per Departure $594.39

Subsidy per Passenger $113.65

SeaPort Airlines, Inc.

PIB Option L-2

18 Weekly Roundtrips: Laurel/Hattiesburg - New Orleans

12 Weekly Roundtrips: Laurel/Hattiesburg - Nashville (via TUP)

(Contingent on Tupelo Selecting Option T-4)
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Proposal: Muscle Shoals, AL (MSL)

SeaPort Airlines is offering the Muscle Shoals community three service options, providing 

access to the national air transportation system at Memphis and Nashville with various 

frequency levels. This is illustrated on the representative schedules below.

Muscle Shoals, Alabama 

(Northwest Alabama Regional Airport)

Map of Service Pattern Options
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Representative Schedule for Service Pattern Options

All options are presented as standalone proposals.

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

6:15am 7:00am ExSun 0 8:30am 9:15am ExSun 0

10:30am 11:15am ExSun 0 11:45am 12:30pm ExSat 0

1:30pm 2:15pm ExSat 0 2:45pm 3:30pm ExSat 0

4:00pm 4:45pm ExSat 0 7:00pm 7:45pm ExSat 0

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

10:00am 11:00am ExSun 0 1:45pm 2:45pm ExSat 0

6:15am 7:00am ExSun 0 8:30am 9:15am ExSun 0

3:15pm 4:00pm ExSat 0 4:30pm 5:15pm ExSat 0

5:45pm 6:30pm ExSat 0 7:00pm 7:45pm ExSat 0

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

10:00am 11:00am ExSun 0 1:45pm 2:45pm ExSat 0

5:15pm 6:15pm ExSat 0 7:30pm 8:30pm ExSat 0

6:15am 7:00am ExSun 0 8:30am 9:15am ExSun 0

3:00pm 3:45pm ExSat 0 4:15pm 5:00pm ExSat 0

(Standalone Proposal)

From Muscle Shoals to Memphis From Memphis to Muscle Shoals

From Muscle Shoals to Nashville From Nashville to Muscle Shoals

From Muscle Shoals to Nashville From Nashville to Muscle Shoals

MSL Option M-3

12 Weekly Roundtrips: Muscle Shoals - Nashville

12 Weekly Roundtrips: Muscle Shoals - Memphis

6 Weekly Roundtrips: Muscle Shoals - Memphis

(Standalone Proposal)

From Muscle Shoals to Memphis From Memphis to Muscle Shoals

MSL Option M-1

From Muscle Shoals to Nashville From Nashville to Muscle Shoals

MSL Option M-2

18 Weekly Roundtrips: Muscle Shoals - Nashville

24 Weekly Roundtrips: Muscle Shoals - Nashville

(Standalone Proposal)
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Operating Projections

Average Sector Length (sm) 109

Scheduled Departures 2,496

Scheduled Block Hours 1,872.0

Projected Completion Factor 98.0%

Projected Completed Departures 2,446

Projected Completed Block Hours 1,834.6

Passenger Projections

Projected Passengers 11,987

Passengers per Departure 4.9

Projected Average Fare $49.50

Revenue Passenger Miles (RPMs) 1,306,583

Available Seat Miles (ASMs) 2,399,604

Projected Load Factor 54.4%

Financial Projections

Revenues

Passenger Ticket Revenues $593,357

Ancillary Revenues $8,900

Total $602,257

Expenses

Flight Operations $159,120

Aircraft Ownership/Lease $240,000

Fuel & Oil $555,984

Sales & Marketing $70,000

Traffic Servicing $299,938

Insurance $33,696

Maintenance $348,192

Sub-Total - Direct $1,706,930

Indirect $238,970

Total Expenses $1,945,900

Projected Operating Profit/(Loss) ($1,343,643)

Subsidy Calculations

Operating Loss $1,343,643

Economic Return @ 5% $97,295

Required Subsidy $1,440,938

Subsidy per Departure $589.08

Subsidy per Passenger $120.21

24 Weekly Roundtrips: Muscle Shoals - Nashville

MSL Option M-1

SeaPort Airlines, Inc.

(Standalone Proposal)
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Operating Projections

Average Sector Length (sm) 116

Scheduled Departures 2,496

Scheduled Block Hours 2,028.0

Projected Completion Factor 98.0%

Projected Completed Departures 2,446

Projected Completed Block Hours 1,987.4

Passenger Projections

Projected Passengers 11,622

Passengers per Departure 4.8

Projected Average Fare $51.53

Revenue Passenger Miles (RPMs) 1,345,247

Available Seat Miles (ASMs) 2,548,204

Projected Load Factor 52.8%

Financial Projections

Revenues

Passenger Ticket Revenues $598,897

Ancillary Revenues $8,983

Total $607,880

Expenses

Flight Operations $168,932

Aircraft Ownership/Lease $240,000

Fuel & Oil $590,270

Sales & Marketing $70,000

Traffic Servicing $312,534

Insurance $35,774

Maintenance $369,664

Sub-Total - Direct $1,787,174

Indirect $250,204

Total Expenses $2,037,379

Projected Operating Profit/(Loss) ($1,429,498)

Subsidy Calculations

Operating Loss $1,429,498

Economic Return @ 5% $101,869

Required Subsidy $1,531,367

Subsidy per Departure $626.05

Subsidy per Passenger $131.76

SeaPort Airlines, Inc.

MSL Option M-2

18 Weekly Roundtrips: Muscle Shoals - Nashville

6 Weekly Roundtrips: Muscle Shoals - Memphis

(Standalone Proposal)
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Operating Projections

Average Sector Length (sm) 124

Scheduled Departures 2,496

Scheduled Block Hours 2,184.0

Projected Completion Factor 98.0%

Projected Completed Departures 2,446

Projected Completed Block Hours 2,140.3

Passenger Projections

Projected Passengers 11,794

Passengers per Departure 4.8

Projected Average Fare $52.81

Revenue Passenger Miles (RPMs) 1,462,456

Available Seat Miles (ASMs) 2,729,825

Projected Load Factor 53.6%

Financial Projections

Revenues

Passenger Ticket Revenues $622,883

Ancillary Revenues $9,343

Total $632,226

Expenses

Flight Operations $181,927

Aircraft Ownership/Lease $240,000

Fuel & Oil $635,675

Sales & Marketing $70,000

Traffic Servicing $332,380

Insurance $38,526

Maintenance $398,100

Sub-Total - Direct $1,896,607

Indirect $265,525

Total Expenses $2,162,132

Projected Operating Profit/(Loss) ($1,529,906)

Subsidy Calculations

Operating Loss $1,529,906

Economic Return @ 5% $108,107

Required Subsidy $1,638,013

Subsidy per Departure $669.65

Subsidy per Passenger $138.89

(Standalone Proposal)

12 Weekly Roundtrips: Muscle Shoals - Nashville

SeaPort Airlines, Inc.

MSL Option M-3

12 Weekly Roundtrips: Muscle Shoals - Memphis
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Proposal Recap

SeaPort Airlines is providing the communities of Muscle Shoals, Alabama and Greenville, 

Tupelo, and Laurel/Hattiesburg, Mississippi a variety of air service options as summarized on 

the table below:

Summary of SeaPort Airlines Proposals

Greenville, MS Tupelo, MS Hattiesburg/Laurel, MS Muscle Shoals, AL

DOT OST-2008-0209 DOT OST-2009-0305 DOT OST-2001-10685 DOT OST-2000-7856

Option G-1 Option T-1 Option L-1 Option M-1

Memphis - 12 Memphis - 6

New Orleans - 12 Nashville - 18

Projected Passengers 12,224 12,577 13,678 11,987

Projected Average Fare $68.25 $50.02 $37.70 $49.50

Required Subsidy $2,393,598 $2,053,089 $1,533,012 $1,440,938

Subsidy per Passenger $195.81 $163.24 $112.08 $120.21

Subsidy per Departure $978.54 $839.34 $626.72 $589.08

Contingencies Standalone Standalone Any of G-1, G-2, G-3, T-3, 

or T-4 Standalone

Option G-2 Option T-2 Option L-2 Option M-2

Nashville (via TUP) - 12 Memphis - 12 Nashville (via TUP) - 12 Memphis - 6

New Orleans - 18 Nashville - 12 New Orleans - 18 Nashville - 18

Projected Passengers 14,447 13,125 15,992 11,662

Projected Average Fare $73.60 $48.95 $47.18 $51.53

Required Subsidy $2,851,123 $1,706,297 $1,817,417 $1,531,367

Subsidy per Passenger $197.35 $130.00 $113.65 $131.76

Subsidy per Departure $932.47 $697.56 $594.39 $626.05

Contingencies T-3 Standalone T-4 Standalone

Option G-3 Option T-3 Option M-3

Memphis - 18 Nashville - 18 Memphis - 12

New Orleans - 6 New Orleans (via GLH) - 12 Nashville - 12

Projected Passengers 11,298 13,876 11,794

Projected Average Fare $61.83 $62.72 $52.81

Required Subsidy $1,796,127 $1,976,099 $1,638,013

Subsidy per Passenger $158.98 $142.41 $138.89

Subsidy per Departure $734.29 $646.29 $669.65

Contingencies Standalone G-2 Standalone

Option T-4

Nashville - 18

New Orleans (via PIB) - 12

Projected Passengers 13,616

Projected Average Fare $62.56

Required Subsidy $2,034,159

Subsidy per Passenger $149.39

Subsidy per Departure $665.28

Contingencies L-2

Service Pattern 

(Weekly Roundtrips)

Service Pattern 

(Weekly Roundtrips)

Service Pattern 

(Weekly Roundtrips)

Service Pattern 

(Weekly Roundtrips)

New Orleans - 24 Nashville - 24
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While SeaPort is providing each community with multiple options from which they can determine 

the one that best meets their air service requirements, we nonetheless suggest the following as 

our preferred options that will allow us to provide an optimal mix of (1) multiple hubs to access 

the air transportation system, (2) low per passenger subsidy requirements, and (3) operational 

efficiency:

• Greenville, MS: Option G-1

• Hattiesburg/Laurel, MS: Option L-2

• Muscle Shoals, AL: Option M-2

• Tupelo, MS: Option T-4

Except as otherwise noted herein, proposals for each community are on a standalone basis. 

There is no intent in our proposal that the four communities represent an “all or nothing” bid. 

Finally, the proposals herein are based on a two year term. Notwithstanding the risk of cost 

inflation in coming years (particularly related to fuel) that could possibly outstrip traffic growth 

and reasonable fare increases, SeaPort is offering the Department and communities the 

option to contract the proposed annual subsidy for a four year period at no increase in 

annual subsidy beyond that level specified for the second year of each option in this 

proposal. We believe this offer provides each community with the assurance of stable air 

service for an extended period and reduces the administrative burden on both the Department 

and ourselves.

Our existing infrastructure at Memphis (including maintenance and crew bases) combined with 

additional aircraft scheduled for delivery during 2012 allows SeaPort to implement the proposed 

service in a timely manner and at a cost that minimizes taxpayer expenditure. We appreciate

the opportunity to submit this proposal and welcome any questions from the communities and/or 

the Department.

Respectfully submitted,

Timothy Sieber

Vice President – Strategy & Corporate Development

SeaPort Airlines, Inc.

January 18, 2012