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### ) Essentia l Ai r

Servic e a

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### MUSCL E SHOALS , ALABAM A ) OST-2000-785 6 ) 

### Unde r 4 9 U.S.C
. §4173 1 e t

seq . )
GULFSTREA M INTERNATIONA L AIRLINE S PROPOSA L T O PROVID E SUBSIDIZE D AI RSERIC E AT MUSCL E SHOALS
. ALABAM A Correspondenc e wit

h regar dt o thi s documen t shoul db e addresse dto : Micke y Bowma n Vic e Presiden t

o f Corporat e Developmen t GulfstreamInternationa l Airline s 320 1 Griffi n Road , 4 * Floo r Ft
. Lauderdale , F L 3331 2 Telephone : 270-689-218 0 Fax:270-689-218 0 E-Mail : mbowman@gulfstreamair.co m Gulfstrea mInternationa l Airline s ("Gulfstream" ) cordiall y submit s it s proposal s to provid e subsidize dai r servic e to Muscl e Shoals , Alabama
. Gulfstrea mhereb y offer s on e optio n for service
. Gulfstreampropose s t o operat e flight s unde r it s independen t

Gulfstrea mInternationa l Airline s identity t o th e hu b airport

o f Memphis , Tennessee
. Gulfstrea mha s maintaine dinterlin e ticketin g an dbaggag e agreement s wit

h mos t legac y carrier s an dwil l schedul e it s flight s t o maximiz e connectin g opportunities
. Gulfstrea mcontend s tha t reasonabl e loca l fare s wil l stimulat e deman dan dth e variety o f destination s availabl e fro mMemphi s wil l allo w thi s marke t t o grow . Towar dthat

en dw e wil l establis h afare structur e predicate do n a$15 0 roundtri p fare betwee n thi s city an dMemphis
. Gulfstrea mflight s wil l b e availabl e for sal e throug h al l majo r

reservatio n portal s an dw e wil l maintai n ou r ow n we b base dbookin g sit e a s wel l a s areservatio n cal l center . I t shoul dals o b e note dtha

t Gulfstrea mi s i n discussion s wit h amajo r legac y carrie r

i n a n effor t t o offe r a codeshar e o n thes e flights
. Shoul dthos e effort s b e successful
. Muscl e Shoal s passenger s wil l enjo y amenitie s ver

y similar t o what the y ar e receivin g toda y includin g throug h pricin g an dbaggag e check , advanc e sea

t selection , inclusio n in th e legac y carrie r frequen t flyer progra man dreservatio n servic e throug h al l majo r

onlin e portal s a s wel l a s th e legac y carrier' s ow n websit e an dcal l center . In complianc e wit

h Publi c La w 100-223 , Gulfstrea mpropose s t o operat e thes e flight s usin g Beec h 1900 D turboprop s tha t

ar e pressurize dan daccommodat e 1 9 passengers . Th e 1900 D feature s stan du p headroo m wit h ampl e carg o capacit y t o accommodat e eve n bulky militar y duffl e bags
.On e o f th e hallmark s o f

th e Gulfstrea moperatio n i s ou r ability t o provid e saf

e an dreliabl e transportation
. Towar dthi s end , Gulfstrea mwoul destablis h aregiona l maintenanc e bas e i n Muscl e Shoal s o r

Memphi s i

n support o f thes e flights
. Thi s mov e wil l ad droughl y 1 2 technica l suppor t job s t o th e local economy . Additionall y thi s proposa l include s asecon daircraf t that woul db e adedicate dspare . Wit h thi s spar e locate din Memphis , w e woul dhav e great flexibility i

n respondin g to an y operationa l challenge s an d assure s thi s communit y receive s th e leve l o f operationa l performanc e i t deserves
. A s Gulfstream' s firs t fora y int o th e Memphi s market , thi s bi ddoe s reflec t highe r uni t cost s associate dwit

h th e establishmen t

o f thi s Maintenanc e Base , th e inclusio n o f aSpar e Aircraf

t an dth e effec t

o n cre w productivit y a s a consequenc e o f

schedulin g ou r

flight s fo r maximu mconnectivit y t o th e majo r airline s i n Memphi s Gulfstrea mi s committe dt o buildin g it s presenc e i n Memphi s an dth e establishmen t o f thes e basi c bit s o f infrastructur e wil l provid e asoli dan dreliabl e bas e for th e future
. Servic e Optio n 1 36Weekl y frequencie s betwee n Muscl e Shoals , Alabam aan dMemphis , Tennessee
. Gulfstrea mpropose s to operat e thes e flight s unde r i t ow n independen t

marketin g identity , thoug h i t wil l wor k t o secur e aLegac y Carrie r codeshar e relationshi p prio r t o actua l servic e start . Th e timin g o f thes e flight s wil l b e optimize dfo r connection s t o an dfro mothe r airlin e flight s at

Memphi s Gulfstrea mpropose s t o encourage connectin g traffi c b y usin g asimplifie dloca l fe e structur e whereb y passenger s connectin g t o o r fromothe r

airlin e flight s woul dpay onl y th e low , local fare in additio n t o th e lo w fare s alread y afeatur e at Memphis
. Th e basi c servic e patter n woul dconsis t o f thre e roundtrip s eac h weekda y t o Memphis
. A singl e roundtri p woul doperat e o n Saturday s an dtw o roundtrip s woul db e operate do n Sunday s to Memphis
.
Servic e Optio n 1 Gulfstrea mAirline s Sampl e Fligh t

Schedul e FRO M ST A T O ST A DE P

TIM E AR R TIM E FL T NU M EQUI P FRE Q STO P
MUSCL E SHOAL S MUSCL E SHOAL S MUSCL E SHOAL S MEMPHI S 065 0 075 0 250 1 BE l X 7 0 MEMPHI S 115 0 125 0 250 3 BE l X 6 0 MEMPHI S 164 5 174 5 250 5 BE l X 6 0 MEMPHI S MEMPHI S MEMPHI S MUSCL E SHOAL S

MUSCL E SHOAL S MUSCL E SHOAL S 093 0 103 0 250 2 BE l X 7 0 144 5 154 5 250 4 BE l X 6 0 193 5 203 5 250 6 BE l X 6 0 (Note : Thi s Schedul e i s for illustrativ e purpose s an dma y no t reflec t th e fina l publishe dproduct )GULFSTREA M INTERNATIONA L AIRLINE S Essentia l Ai r

Servic e Proposa l Muscl e Shoals , A L - Memphis , T N Optio n 1 Muscl e Shoal s Hu b Serve d Numbe r o f Roundtrips pe r

Servic e Da

y ( 3 non-stop ) Goeratin e Statistic s Assume dCompletio n % Annua l Adjuste dBloc k

Hour ; Annua l Adjuste dDeparture s Annua l Adjuste dASM s Annua l RPM s Projecte dLoa dFacto r Revenu e Proiection s Enplane dPassenger s Mileag e Averag e Far e Passenge r

Revenu e ExDens e Proiection s Fligh t Operation s Ownershi p Maintenanc e (Averag e a s Operated )

Reservations , Station s & Administratio n Fue l Marketin g Tota l Annua l Expense s Projecte dProfi t

/ (I^ss ) Profi t Elemen t Annua l Subsid y Require d Subsid y pe r

Departur e Subsid y pe r

Passenge r @5 % Memphi s 3

98 % 1,686.3 0 1,839.6 1 4,753,53 9 2,278,81 6 47.9 %
16,75 6 13 6 $ 69.3 8 $ 1,162,44 8
$338,93 9 $323,95 2 $1,410,88 1 $1,126,70 4 $708,24 8 $12,00 0 $3,920,72 4 ($2,758,277 ) $196,03 6 $2,W4^1 3 $1,605.9 5 $176.3 1I n conclusion , Gulfstrea mbelieve s thi s proposa l wil l provid e th e communit y o f Muscl e Shoal s wit

h a superio r ai r servic e option
. W e feel th e passenger s wil l benefi t fromth e fac t

that Memphi s i s aprimary logistica l an dbusines s cente r wit h an airport

that serve s a s ahu b fo

r amajo r legac y carrier
. In 200 9 ove r 5,000,00 0 passenger s enplane di n Memphis
. Delt aAir Line s alon e offer s ove r

20 0 dail y departure s wit h non-sto p servic e to som e 8 7 destination s aroun dth e world
. Gulfstrea mwil l provid e thi s servic e o n stan d up , pressurize dairliner s an dth e infrastructur e w e wil l establis h in suppor t o f thi s operatio n wil l ad djob s t o th e local economy . Additionall y th e integrity o f servic e that

ha s bee n ahallmark

o f th e Gulfstrea m operatio n wil l assur e both dependabilit y an dreliabilit y t o th e travelin g publi c an dresul t i n increase d ridershi p an dpassenge r

satisfaction
. Respectfull y Submitted : Decembe r 17,201 0

Micke y Bowma n Vic e Presiden t

o f Corporat e Developmen t Gulfstrea mInternationa l Airline s