Sovereign Mr, Inc, 

March 26, 2010 1-

Dennis J. DeVany, Chief 

EAS & Domestic Analysis Division, X-53 

Office of Aviation Analysis 

Department of Transportation • j 

1200 He\N Jersey Ave. SE ,- { 

Washington, DC 20590 

Re: Proposal to Provide Essential Air Service at: 

Presque Isle, ME, DOT-OST-2000-8012 

Dear Mr. DeVany: 

In response to Order 2010-3-3, Sovereign Air, Inc. offers the following proposal: 

Sovereign Air, Inc. (SAI) is planning to use the King Air 350 or the Jetstream 32 as its primary aircraft for 

this Essential Air Service route. The King Air will be configured with twelve passenger seats, and may be 

expanded. The aircraft is type certificated for up to fifteen passenger seats. The Jetstream is configured 

for 19 seats. 

Sovereign Air is proposing the aircraft for the exclusive use (no up-line or down-line service) of the 

proposed EAS route. Our flights will service only the EAS city and the indicated Hub. Sovereign Air 

believes that with good schedules, proper pricing and a recovering economy, the load factors will likely 

increase in these markets. SAI will base its aircraft, crews and maintenance personnel, banking and 

purchase fuel in Presque Isle. This will help keep the EAS monies in the local community. 

SAI will have baggage and ticket agreements with the major air carriers in Boston (BOS). SAI will have 

cargo agreements for both domestic and international airfreight movements. 

SAI has been HAZMAT approved and will be working in conjunction with hospitals to expedite various 

HAZMAT materials that they need to transport. 

SAI's goal is to work hand-in-hand with EAS communities to reduce the need for EAS subsidies within the 

next four to six years. 

Sovereign Air is currently in the process of acquiring its Scheduled Service Authority and anticipates 

being able to start this Essential Air Service by June 1st. 

Sovereign Air will be fully integrated into the Global Distribution System (GDS) in conjunction with 

Worldspan. SAI is not tied to just one airline, allowing Sovereign Air better visibility in the various 

reservation systems. Passengers will have a broad range of channels through which to purchase tickets, 

including all airline reservation systems and travel agencies. Customers will be able to call our 

reservation office or visit our website to book flights. Passengers can also purchase tickets and make 

reservations at our ticket counters. 
SAI's final schedules will be developed by the EAS City Airport Board and SAI to reduce layover times in 

BOS and provide the best possible arrival and departure times for the travelling public. As such, the 

following schedules will likely be adjusted: 

Proposed Schedule Options 

4 RT X 7 days weekly 19 PASSENGER JET STREAM 32 

Depart Arrive Depart Arrive 

PQI BOS BOS PQI 

600 

1045 

1525 

1830 

745 

1225 

1710 

1945 

5 RT X 7 days weekly 

Depart 

PQI 

600 

1000 

1400 

1800 

2200 

Arrive 

BOS 

720 

1120 

1520 

1920 

2320 

840 

1345 

1745 

2030 

1025 

1500 

1800 

2145 

12 PASSENGER BEECH King Air 350 

Depart 

BOS 

800 

1200 

1600 

2000 

2400 

Arrive 

PQI 

920 

1320 

1720 

2120 

120 
OPTION 1 

Sovereign Air, Inc. 

Annual Compensation Requirement for Essential Air Service for 

PQI-BOS 4rt daily 

Aircraft Type 

Available Seats Per Departure 

Passengers Per Trip 

Jetstream 32 

19 

9.4 

Block Hours 

Departures 

Total Passengers 

Average Fare 

Revenue Passenger Miles 

Available Seat Miles 

Passenger Revenue 

Other Rev. @ .6 of pax. Rev. % 

Total Revenue 

Aircraft and Hull Insurance 

Fuel and Oil 

Flying Operations 

Other Direct Costs 

Maintenance 

Total Direct Costs 

3,777 

2,832 

26,676 

$69.00 

8,865,769 

17,885,615 

$1,840,644.00 

$11,043.86 

$1,851,687.86 

$25,000.00 

$1,699,440.00 

$347,441.07 

$617,615.28 

$253,838.74 

$2,943,335.09 

Total Indirect Costs $803,556.44 

Total Operating Expenses 

Operating Loss 

Profit @ 5% 

Completion Rate 

Subsidy per leg 

Load Factor 

$3,746,891.53 

$1,895,203.66 

$187,344.58 

Annual Compensation 

Requirement $2,082,548.24 

Monthly Compensation 

Requirement $173,545.69 

97% 

$735.26 

49.6% 
OPTION 2 

Sovereign Air, Inc. 

Annual Compensation Requirement for Essential Air Service for 

PQI-BOS 5rt daily 

Aircraft Type 

Available Seats Per Departure 

Passengers Per Trip 

Beechcraft 350 

12 

7.5 

Block Hours 4,072 

Departures 3,541 

Total Passengers 

Average Fare 

26,676 

$69.00 

Revenue Passenger Miles 

Available Seat Miles 

8,865,769 

14,120,222 

Passenger Revenue 

Other Rev. @ .6 of pax. Rev. % 

Total Revenue 

$1,840,644.00 

$11,043.86 

$1,851,687.86 

Aircraft and Hull Insurance 

Fuel and Oil 

Flying Operations 

Other Direct Costs 

Maintenance 

Total Direct Costs 

$25,000.00 

$1,526,840.63 

$374,584.90 

$633,557.91 

$269,486.34 

$2,829,469.78 

Total Indirect Costs $713,029.19 

Total Operating Expenses $3,542,498.97 

Operating Loss 

Profit @ 5% 

Completion Rate 

Subsidy per leg 

Load Factor 

$1,690,811.10 

$177,124.95 

Annual Compensation 

Requirement $1,867,936.05 

Monthly Compensation 

Requirement $155,661.34 

97% 

$527.59 

62.8% 
Customer safety and service are Priority One with SAI. Sovereign Air looks forward to providing 

Essential Air Service to Presque Isle, Maine. 

Sincerely, 

Jon Payne, CFO 

Sovereign Air, Inc.