# Sovereig nMr , Inc ,

Marc h 26 , 201 0 1 - Denni s J
. DeVany , Chie f EA S & Domesti cAnalysi s Division , X-5 3 Offic e o fAviatio n Analysi s Departmen t o fTransportatio n •j 120 0 He\N Jerse yAve
. S E , - { Washington , D

C 2059 0 Re : Proposa l t o Provid e Essentia l Ai rServic e at : Presqu e Isle , ME , DOT-OST-2000-801 2
Dea rMr
. DeVany : I n respons e t o Orde r2010-3-3 , Sovereig n Air , Inc
. offer s th e followin g proposal : Sovereig n Air , Inc
. (SAI ) i s plannin g t o us e th e Kin g Ai r35 0 o rth e Jetstrea m 3 2 a s it s primar yaircraf tfo r thi s Essentia l Ai rServic e route
. Th e Kin g Ai rwil l b e configure d wit h twelv e passenge rseats , an d mayb e expanded
. Th e aircraf ti s typ e certificate d fo ru p t o fiftee n passenge rseats
. Th e Jetstrea m i s configure d fo r1 9 seats
. Sovereig n Ai ri s proposin g th e aircraf tfo rth e exclusiv e us e (n o up-lin e o rdown-lin e service ) o fth e propose d EA

S route
. Ou rflight s wil l servic e onl yth e EA S cit yan d th e indicate d Hub
. Sovereig n Ai r believe s tha twit h goo d schedules , prope rpricin g an d a recoverin g economy , th e loa d factor s wil l likel y increas e i n thes e markets
. SA I wil l bas e it s aircraft , crew s an d maintenanc e personnel , bankin g an d purchas e fue l i n Presqu e Isle
. Thi s wil l hel p kee p th e EA S monie s i n th e loca l community
. SA I wil l hav e baggag e an d ticke tagreement s wit h th e majo rai rcarrier s i n Bosto n (BOS)

. SA I wil l hav e carg o agreement s fo rbot h domesti can d internationa l airfreigh tmovements
. SA I ha s bee n HAZMA

Tapprove d an d wil l b e workin g i n conjunctio n wit h hospital s t o expedit e variou s HAZMA Tmaterial s tha tthe ynee d t o transport
. SAI' s goa l i s t o wor k

hand-in-han d wit h EA S communitie s t o reduc e th e nee d fo rEA S subsidie s withi n th e nex t fou rt o si xyears . Sovereig n Ai ri s currentl yi n th e proces s o facquirin g it s Schedule d Servic e Authorit yan d anticipate s bein g abl e t o star tthi s Essentia l Ai rServic e byJun e 1st
. Sovereig n Ai rwil l b e full yintegrate d int o th e Globa l Distributio n Syste m (GDS) i n conjunctio n wit h Worldspan
. SA I i s no ttie d t o jus ton e airline , allowin g Sovereig n Ai rbette rvisibilit yi n th e variou s reservatio n systems
. Passengers wil l hav e a broa d rang e o fchannel s throug h whic h t o purchas e tickets , includin g al l airlin e reservatio n system s an d trave l agencies
. Customer s wil l b e abl e t o cal l ou r reservatio n offic e o rvisi tou rwebsit e t o boo k flights
. Passenger

s ca n als o purchas e ticket s an d mak e reservation s a tou rticke tcounters
.SAI' s fina l schedule s wil l b e develope d byth e EA S CityAirpor tBoar d an d SA I t o reduc e layove rtime s i n BO S an d provid e th e bes tpossibl e arriva l an d departur e time s fo rth e travellin g public
. A s such , th e followin g schedule s wil l likel yb e adjusted : Propose d Schedul e Option s 4 R TX7 days weekl y1 9 PASSENGE R JETSTREAM 3 2 Depart Arriv e Depar tArriv e PQ I BO

S BO

S PQ I 

### 60 0 104 5 152 5 183 0 

### 74 5

122 5 171 0 194 5

5 R T X 7 days weekl y Depar t 

### PQI 60 0 100 0 140 0 180 0 220 0 Arriv

e 

### BO S 72 0 112 0 152 0 192 0 232 0 

### 84 0

134 5 174 5 203 0 102 5

150 0 180 0 214 5

1 2 PASSENGE R BEEC H Kin g Ai r 35 0 Depar t 

### BO S 80 0 120 0 160 0 200 0 240 0 Arriv e 

### PQI 92 0 132 0 172 0 212 0 

### 12 0OPTIO N 1

Sovereig n Air , Inc
. Annua l Compensatio n Requiremen tfo rEssentia l Ai rServic e fo r PQI-BO S 4rtdail y
Aircraf tTyp e Availabl e Seat s Pe rDepartur e Passenger s Pe rTri p Jetstrea m 3 2 1 9 9. 4
Bloc k Hour s Departure s Tota l Passenger s Averag e Far e Revenu e Passenge rMile s Availabl e Sea tMile s Passenge rRevenu e Othe rRev
. @

. 6 ofpax . Rev
. % Tota l Revenue Aircraf tan d Hul l Insuranc e Fue l an d Oi l Flyin g Operation s Othe rDirectCost s Maintenanc e Tota l Direc tCost s 3,77 7 2,83 2 26,67 6 $69.0 0 8,865,76 9 17,885,61 5 $1,840,644.0 0 $11,043.8 6 $1,851,687.8 6 $25,000.0 0 $1,699,440.0 0 $347,441.0 7 $617,615.2 8 $253,838.7 4 $2,943,335.0 9 Tota l IndirectCost s $803,556.4 4 Tota l Operatin g Expense s Operatin g Los s Profi t@ 5 %

Completio n Rat e Subsid ype rle g Loa d Facto r 

### $3,746,891.5 3 $1,895,203.6 6 $187,344.5 8 Annua l Compensatio n

Requiremen t$2,082,548.2 4 Monthl yCompensatio n

Requiremen t$173,545.6 9 97 % 

### $735.2 6 49.6 %OPTIO N 2

Sovereig n Air , Inc
. Annua l Compensatio n Requiremen tfo rEssentia l Ai rServic e fo r PQI-BO S 5rtdail y
Aircraf tTyp e Availabl e Seat s Pe rDepartur e Passenger s Pe rTri p Beechcraf t35 0 

### 1 2 7. 5
Bloc k Hour s 4,07 2 Departure s 

### 3,54 1 Tota l Passenger s Averag e Far e 

### 26,67 6 $69.0 0 Revenu e Passenge rMile s Availabl e Sea tMile s 

### 8,865,76 9 14,120,22 2 Passenge rRevenue Othe rRev
. @

. 6 ofpax . Rev
. % Tota l Revenu e 

### $1,840,644.0 0 $11,043.8 6 $1,851,687.8 6 Aircraf t an d Hul l Insuranc e Fue l an d Oil Flyin g Operation s Othe rDirectCost s Maintenanc e Tota l DirectCost s $25,000.0 0 $1,526,840.6 3 $374,584.9 0 $633,557.9 1 $269,486.3 4 $2,829,469.7 8 Tota l IndirectCost s 

### $713,029.1 9 Tota l Operatin g Expense s 

### $3,542,498.9 7 Operatin g Los s Profi t@ 5 %

Completio n Rat e Subsid ype rle g Loa d Facto r $1,690,811.1 0 $177,124.9 5 Annua l Compensatio n

Requiremen t$1,867,936.0 5 Monthl yCompensatio n

Requiremen t$155,661.3 4 

### 97 % $527.5 9 62.8 %Custome rsafet yan d servic e ar e Priorit yOn e wit h SAI

. Sovereig n Ai rlook s forwar d t o providin g

Essentia l Ai rServic e t o Presqu e Isle , Maine
.
Sincerely ,

Jo n Payne , CF

O Sovereig n Air , Inc
.