Before the United States Department of Transportation

February 19, 2014

Proposal to Provide Essential Air Service at

Clovis, New Mexico

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

DOCKET DOT-OST-1996-1902

Proposal of SeaPort Airlines, Inc. 

to Provide Essential Air Service at

Clovis, New Mexico

By Order 2014-1-10, the U.S. Department of Transportation (“the Department”) requested 

proposals for Essential Air Service (EAS) at Clovis, New Mexico no later than February 12, 

2014. SeaPort was granted an extension for response until February 19th. Pursuant to that 

Order, SeaPort Airlines, Inc. respectfully submits this timely proposal to provide subsidized EAS 

at Clovis, New Mexico.

This proposal provides the community of Clovis two roundtrips Sunday through Friday to Dallas 

Love Field with a brief stop in Abilene, TX. The requested annual subsidy level in the proposal, 

is $2,813,992.

Shortly after this proposal is docketed, SeaPort Airlines will contact Gene Bieker, Airport 

Director at Clovis to schedule a presentation to the community that explains our proposal in 

detail and to answer any questions. In the interim and throughout the carrier selection process, 

questions regarding this proposal should be directed to:

Timothy Sieber 

Executive Vice President 

SeaPort Airlines, Inc. 

7505 NE Airport Way 

Portland, OR 97218 

(971) 340-1716 

tsieber@seaportair.com 
Proposal of SeaPort Airlines, Inc. to provide EAS at Clovis, NM Page 2

DOT-OST-1996-1902 February 19, 2014

Discussion of Proposal 

Company Introduction

SeaPort Airlines, Inc. is a FAA certified scheduled airline based in Portland, Oregon with over 

30 years of experience in commercial aviation. In addition to Portland, the company has 

operational bases at Memphis, Tennessee (MEM); San Diego, California (SAN); and Juneau, 

Alaska (JNU). 

Our 221 professionals provide service to 21 cities across nine states with a fleet of 15 aircraft. 

The company’s route map as of the date of this proposal is provided below:

The primary focus of SeaPort Airlines is to provide affordable and reliable air service to small 

and rural communities across America. Service to eight of the communities on our route map is 

provided under the EAS program: Athens, Georgia; Pendleton, Oregon; El Dorado, Hot Springs, 

and Harrison, Arkansas; Salina, Kansas; Jackson, Tennessee; and Imperial/El Centro, 

California.

 
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DOT-OST-1996-1902 February 19, 2014

Once SeaPort Airlines is awarded an EAS contract and service is launched, we develop a 

partnership with each community by participating in local events, donation of tickets, on-going 

dialogue with airport management and community leaders, and presentations to civic clubs and 

other similar organizations. We also have a reputation of being responsive to community needs, 

affording them the opportunity to comment on schedule and fare changes before they become 

effective. 

Our commitment to EAS communities is demonstrated by the fact that in every “Lower 48” 

community that SeaPort serves in the EAS program, we have been re-selected for subsequent 

terms at the end of our first contract period. This includes reselection during 2012 to four-year 

contract renewals (rather than the standard two-years) at both Salina, Kansas and Pendleton, 

Oregon, after both communities voiced their overwhelming support for SeaPort Airlines. 

Similarly, we were selected for a four-year renewal at the Arkansas communities of El Dorado, 

Harrison, and Hot Springs, effective November 1, 2013.

Aircraft

SeaPort Airlines’ proposal at Clovis contemplates operations with Cessna Caravans which will 

allow us to offer safe, comfortable, and affordable air transportation in a modern and economical 

aircraft. 

Manufactured in Kansas, 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 almost 15 million flight hours. The Caravan is 

certified for single-pilot operation, however SeaPort operates with both a Captain and First 

Officer.

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

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

baggage for security purposes.1

 

1 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.
Proposal of SeaPort Airlines, Inc. to provide EAS at Clovis, NM Page 4

DOT-OST-1996-1902 February 19, 2014

Scheduling and Hub Options

SeaPort is proposing the following service option for consideration:

✈ 12 weekly round-trips to Dallas (Love Field) with a stopover in Abilene. 

An illustrative schedule pattern is provided below. Final schedules, however, would be 

established in consultation with the community.

Dallas Love Field is hometown to Southwest Airlines, the nation’s largest low fare airline. The 

map below illustrates Southwest’s nonstop service from Love Field as of February 2014. 

Nonstop Flights from Dallas Love Field as February 2014 

In addition to the nonstop destinations shown, Southwest Airlines has announced that, with 

expiration of the Wright Amendment on October 31, 2014, it will add nonstop flights from Love 

Field to Atlanta, Baltimore, Chicago, Denver, Fort Lauderdale, Las Vegas, Los Angeles, 

Nashville, New York (LaGuardia Airport), Orlando, Phoenix, San Diego, Santa Ana/Orange 

County, Tampa, and Washington, DC (Reagan National Airport). 

While SeaPort Airlines does not have an interline agreement with Southwest Airlines, customers 

will be able to build their own “end-to-end” connecting itineraries between Southwest and 

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

5:30am 8:30am ExSat 1 9:00am 12:00pm ExSat 1

1:00pm 4:00pm ExSat 1 4:30pm 7:30pm ExSat 1

Clovis, NM to Dallas (Love) Dallas (Love) to Clovis, NM
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DOT-OST-1996-1902 February 19, 2014

SeaPort. This would be similar to the connections to/from customers at Clovis may be presently 

making in Denver or may have made in the past in Albuquerque. 

In addition to Southwest, United Airlines and Delta Air Lines serve Dallas Love Field via their 

regional affiliates. SeaPort Airlines has an existing presence at Love Field as well, providing 

EAS to the Arkansas communities of Hot Springs and El Dorado. The services of carriers other 

than Southwest at Love Field including SeaPort are illustrated on the map below.2

Other Carrier Service at Love Field 

Following Expiration of Wright Amendment on October 31, 2014 

Fares & Pricing

All of SeaPort’s fares are priced on a one-way basis, including all taxes and fees, and structured 

as follows: 

✈ The highest price point (branded as “FULL Flex”) provides our customers with total 

flexibility to change their travel plans or, if they choose, obtain a full refund without 

incurring a service charge. 

✈ The lowest price point (branded as “NO Flex”) targets customers who are certain about 

their travel plans. This fare requires an advance purchase of 14-days, is non-refundable, 

and does not permit any changes from the original booked itinerary. 

 

 

2

 Service illustrated reflects published schedules for November 2014 and include new service announced by Delta Air 

Lines to be added following expiration of The Wright Amendment on October 31, 2014. 
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DOT-OST-1996-1902 February 19, 2014

✈ In between, SeaPort offers a range of fares (“FREE 2 Flex” and “Flex 4 FEE”) with price 

points based on how much flexibility a customer has in their travel plans. 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. 

The table below summarizes the range of proposed ticket prices in each of the markets along 

with the rules and restrictions applicable to each price point.

Interline Connectivity & GDS Display

SeaPort Airlines 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. 

The company recently announced that it will migrate to the Amadeus Altea reservation platform 

on March 22, 2014. With this new system, SeaPort will have unsurpassed capability compared 

to any other regional airline with regard to interline ticketing, through baggage check-in, ecommerce, and Inter-Airline Thru Check-In (IATCI). Most importantly, with the new system the 

company will launch its first full interline agreement on March 22, 2014 with a major airline to be 

followed by a second “Big Three” carrier on May 1, 2014. The company is in discussions with 

two other major carriers regarding agreements for implementation later in 2014. 

Subsidy Request Calculations

The following page contains the calculations to support SeaPort Airlines’ request for subsidy to 

provide EAS at Clovis, New Mexico. 

Respectfully submitted,

Timothy Sieber

Executive Vice President

SeaPort Airlines, Inc.

February 19, 2014

Fare Category è

ê Summary of Fare Rules

Booking Class/Fare Basis Code YBMQ

Advance Purchase (days prior to departure) 0 3 3 21

Change Fee $0 $0 $50 Not permitted

Refundable Yes No No No

Published fares between Clovis and:

Abilene (projected avg = $59.22) $139 $89 $59 $49

Dallas Love (projected avg: = $104) $169 $109 $99 $79

Full Flex Free 2 Flex Flex 4 Fee No Flex
Proposal of SeaPort Airlines, Inc. to provide EAS at Clovis, NM Page 7

DOT-OST-1996-1902 February 19, 2014

Proforma Data

Operating Projections

Average Sector Length (sm) 409

Scheduled Departures 1,248

Scheduled Block Hours 3,640.0

Projected Completion Factor 99.0%

Projected Completed Departures 1,236

Projected Completed Block Hours 3,603.6

Passenger Projections

Projected Passengers 4,200 

Passengers per Departure 3.4

Projected Average Fare $109.00

Revenue Passenger Miles (RPMs) 1,717,800

Available Seat Miles (ASMs) 4,547,949

Projected Load Factor 37.8%

Financial Projections

Revenues

Passenger Ticket Revenues CVN-DAL $457,800

Passenger Ticket Revenues ABI-DAL $320,000

Ancillary Revenues $11,445

Total $789,245

Expenses

Flight Operations $353,153

Aircraft Ownership/Lease $360,000

Fuel & Oil $904,864

Sales & Marketing $25,000

Traffic Servicing $609,000

Insurance $57,658

Maintenance $648,648

Sub-Total - Direct $2,958,322

Indirect $473,332

Total Expenses $3,431,654

Projected Operating Profit/(Loss) $(2,642,409)

Subsidy Calculations

Operating Loss $2,642,409

Economic Return @ 5% $171,583

Required Subsidy $2,813,992

Subsidy per Departure $2,277.58

Subsidy per Passenger $670.00

Avg. Enplanements per Operational Day 6.7

OST-1996-1902

Cessna Caravan, Two-Pilots

12 Weekly RTs: Clovis - Dallas (Love) One Stop ABI