BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

) 

Essential Air Service at ) 

Ironwood, Michigan! Ashland, Wisconsin ) 

ManisteelLudington, Michigan ) 

) 

Under 49 U.S.C. §41731 et seq. ) 

DOT-OST-1996-1266 

DOT-OST-1996-1711 

GULFSTREAM INTERNATIONAL AIRLINES PROPOSAL 

TO PROVIDE SUBSIDIZED AIR SERICE AT IRONWOOD, 

MICHIGAN/ASHLAND, WISCONSIN AND MAINISTEEILUDINGTON, 

MICHIGAN 

Correspondence with regard to this document should be addressed to: 

Mickey Bowman 

Vice President of Corporate Development 

Gulfstream International Airlines 

3201 Griffin Road, 4th Floor 

Ft. Lauderdale, FL 33312 

Telephone: 270-689-2180 

Fax: 270-689-2180 

E-Mail: mbowman@gulfstreamair.com 

Gulfstream International Airlines ("Gulfstream") cordially submits its proposal to provide subsidized air 

service to Ironwood, MIIAshland, WI and ManisteelLudington, MI. Gulfstream hereby offers one option 

for service. This option contemplates non-stop service for each city to Milwaukee, Wisconsin twice daily, 

each service day. 

In a review of the possible routing alternatives for these cities, Milwaukee seemed to offer the most 

potential for route development. Already an established Midwest Airlines hub, Milwaukee has seen a 

substantial build up of low cost carriers over the past twelve months as both Air Tran and Southwest have 

made major market additions. During that same period, Midwest Airlines has been merged with Frontier 

and the current essential air service is operating under a Frontier Airlines codeshare. 

Gulfstream would prefer to enter these markets with a codeshare relationship in place, bijt is prepared to 

proceed as an independent carrier. Gulfstream has maintained interline ticketing and baggage agreements 

with most legacy carriers and would operate these flights will full visibility in the Global Distribution 

Systems . .It should be noted that we have begun discussions with potential partner carriers that have 

indicated they would be amenable to a possible codeshare assuming Gulfstream was awarded this contract. 

In compliance with Public Law 100-223, Gulfstream proposes to operate these flights using Beech 1900D 

turboprops that are pressurized and accommodate 19 passengers to the, FAA defined, medium hub at 

Milwaukee, Wisconsin. 
Service Option 1 

Twice daily non-stop service to Milwaukee, Wisconsin each service day 

Service Option I contemplates serving these two markets much as they are today by the incumbent carrier. 

The exception being the operation ofIronwood, MIIAshland, WI where the flights will be operated nonstop rather than one stop as they are today and bear the full cost associated with this 27 I mile stage. 

Logistically these flights will be supported by one line aircraft and one dedicated spare. Milwaukee 

represents a new regional operation for Gulfstream. Given this line of flight will be separated from both 

the Gulfstream fleet in Florida and the Gulfstream fleet in Cleveland, OR, we feel it is absolutely necessary 

to dedicate this addition resource to assure schedule integrity. 

Additionally, the remote nature of this operation will necessitate the establishment of a maintenance base 

specifically in support of this line. While the resulting maintenance costs will be higher than normal on a 

unit basis, we believe it is necessary to provide these communities with the quality of service they deserve. 

It should also be noted that the airport costs associated with the operation of these two service points 

represent some of the highest in the Gulfstream system. The nature of this bid requires Gulfstream to offer 

this service option as "all or nothing", needing service to both communities to make the operation 

economically viable. 

To Summarize: 

Market Pro osed Service Aircraft Requested Subsidy 

Ironwood - Milwaukee 2 Roundtrips 

Manistee - Milwaukee 2 Roundtrips 

B1900D 

B1900D 

Gulfstream Airlines 

$3,027,038 

$1,705,488 

Proposed Flight Schedule 

Service Option 1 

FROM TO DEP ARR FLT EQUIP FREQUENCY STOP 

STA STA TIME TIME NUM 

IWD MKE 835am 955am 9303 BEl Monday thru Saturday 0 

IWD MKE 550pm 7l0pm 9307 BEl Sunday thru Friday 0 

MKE IWD 700am 820am 9302 BEl Monday thru Saturday 0 

MKE IWD 4l5pm 535pm 9306 BEl Sunday thru Friday 0 

FROM TO DEP ARR FLT EQUIP FREQUENCY STOP 

STA STA TIME TIME NUM 

MBL MKE 645am 630am 9301 BEl Monday thru Saturday 0 

MBL MKE 350pm 335pm 9305 BEl Sunday thru Friday 0 

MKE MBL l45pm 330pm 9304 BEl Monday thru Saturday 0 

MKE MBL 8l5pm 1000pm 9308 BEl Sunday thru Friday 0 

*Note this schedule is for presentation purposes and may not reflect the final operational schedule 
GULFSTREAM INTERNATIONAL AIRLINES 

Essential Air Service Proposal 

Manistee/Ludington, MI and Ironwood, MIIAshland, WI to Milwaukee, WI 

Hub Served 

Number of Roundtrips per Service Day 

Operating Statistics 

Assumed Completion % 

Annual Adjusted Block Hours 

Annual Adjusted Departures 

Annual Adjusted ASMs 

Annual RPMs 

Projected Load Factor 

Revenue Projections 

Enplaned Passengers 

Mileage 

Average Fare 

Passenger Revenue 

Expense Projections 

Flight Operations 

Ownership 

Maintenance 

(Average as 

Operated) 

Reservations, Stations & Administration 

Fuel 

Marketing 

Total Annual Expenses 

Projected Profit! (Loss) 

Profit Element 

Annual Subsidy Required 

Subsidy per Departure 

Subsidy per Passenger 

@5% 

Option 1 

Manistee! 

Ludington 

Milwaukee 

2 

98% 

919.80 

1,226.40 

2,866,105 

673,056 

23.5% 

5,472 

123 

$ 69.93 

$ 382,657 

$138,777 

$114,333 

$554,751 

$789,532 

$386,317 

$5,000 

$1,988,710 

($1,606,053) 

$99,435 

$1,705,488 

$1,390.64 

$311.68 

Option 1 

Ironwood! 

Ashland 

Milwaukee 

2 

98% 

1,686.30 

1,226.40 

6,314,751 

620,590 

9.8% 

2,290 

271 

$ 69.93 

$ 160,140 

$254,424 

$209,610 

$1,233,189 

$624,937 

$708,248 

$5,000 

$3,035,408 

($2,875,268) 

$151,770 

$3,027,038 

$2,468.22 

$1,321.85 
In conclusion, Gulfstream believes that this proposal will provide the communities of Ironwood, 

WI/Ashland, MI and ManisteelLudington, MI with superior air service. Gulfstream is an established 

Essential Air Service provider with carriage contracts in place at Bradford, PA; DuBois, PA; Jamestown, 

NY; Franklin/Oil City, PA and Parkersburg, WV. We feel the passengers will benefit from the strength of 

the Milwaukee hub and attraction of non-stop, stand up, pressurized air service. Additionally the integrity 

of service that has been a hallmark of the Gulfstream operation will return both dependability and 

reliability to the traveling public and result in increased ridership and passenger satisfaction. 

Respectfully Submitted: October 25,2010 

Mickey Bowman 

Vice President of Corporate Development 

Gulfstream International Airlines