## Der

- osr - {*\*\ u - ^Zu u 

# Sovereig nMr , Inc , T TJJC i "^-o^s-i^iz ^
Marc h 25 , 201 0 Denni s J
. DeVany , Chie f EA S &Domesti cAnalysi s Division , X-5 3 Offic e o fAviatio n Analysi s Departmen to fTransportatio n 120 0 New

/ Jerse yAve
. S

E Washington , D

C 2059 0 Re : Proposa l t o Provid e Essentia l Ai rServic e at : Iro n Mountain/Kingsford , Michigan ; Ironwood , Michigan/Ashland , Wisconsin ; Manistee/Ludington , Michigan ; Escanaba , Michiga n 

### DOT-OST-1999-517 5 DOT-OST-1996-126 6 DOT-OST-1996-171 1 DOT-OST-2003-1512 8
Dea rMr
. DeVany : I n respons e t o Orde r2010-2-18 , 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 as it s primar yaircraf tfo rthes e Essentia l Ai r Servic e routes
. I twil l b e configure d wit h twelv e passenge rseats , an d wil l b e expande d t o twelv e seat s as needed
. Th e aircraf ti s typ e certificate d fo ru p t o fiftee n passenge rseats
. 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 routes
. Ou rflight s wil l servic e onl yth e EA S city(ies ) an 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 th e EA S cities
. Thi s wil l hel p kee p th e EA S monie s i n th e loca l communities
. SA I wil l hav e baggag e an d ticke tagreement s wit h th e majo rai rcarrier s i n Chicago , O'Har e (ORD)

. SA I wil l hav e carg o agreement s fo rbot h domesti can d internationa l ai rfreigh tmovements
. SA I has 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 HAZMATmaterial 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 tfou 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 b ySeptembe r1st
.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

. Passengers 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 tBoard s an d SA I t o reduc e layove rtime s i n OR D 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 

## ESC-OR D 4XSchedul e 7 DayWee k Depar t Arriv

e Depar t Arriv e Depar t Arriv e ES C MB L MB L OR D OR D MB L 60 0 70 0 80 0 100 0 102 5 103 0 111 0 113 0 121 0 140 0 142 5 143 0 151 0 153 0 161 0 170 0 172 5 173 0 181 0 200 0 204 0 Depar t 

### MB L
121 5 161 5 204 5 Arriv

e 

### ESC 90 0 123 5 163 5 211 0 

## MBL-OR D 4XSchedul e 7 DayWee k Depar t Arriv

e Depar t Arriv e Depar t Arriv e MB L OR D OR D MB L MB L ES C 60 0 62 5 63 0 91 0 103 0 111 0 113 0 121 0 121 5 123 5 143 0 151 0 153 0 161 0 161 5 170 0 174 0 203 0 211 0 Depar t Arriv e ES C MB L 140 0 142 5


## IWD-OR D 4XSchedul e 7 DayWee k Depar t Arriv

e Depar t Arriv e Depar t Arriv e IW D IM T IM T OR D OR D IM T 60 0 71 0 80 0 100 0 102 0 102 5 112 5 114 5 123 0 140 0 142 0 142 5 152 5 154 5 163 0 170 0 181 5 190 0 Depar t 

### IM T
123 5 163 5 Arriv

e 

### IW D 91 0 125 5 165 5 201 5 

## IMT-OR D 4XSchedul e 7 DayWee k Depar t Arriv

e Depar t Arriv e Depar t Arriv e Depar t Arriv

e IM T OR D OR D IM T IM T IW D IW D IM T 60 0 70 0 80 0 90 0 102 5 112 5 114 5 123 0 123 5 125 5 140 0 142 0 142 5 152 5 154 5 163 0 163 5 165 5 180 0 190 0 193 0 203 0Sovereig n Air , Inc
.

Annua l Compensatio n Requiremen tfo rEssentia l Ai rServic e fo r IWD-IMT-OR D 4rtdail y
Aircraf tTyp e Availabl e Seat s Pe r Departur e Passenger s Pe r Tri p Beechcraf t35 0 

### 1 2 4. 2
Bloc k Hour s Departure s 

### 5,66 5 4,95 7 Tota l Passenger s Averag e Far e 

### 11,81 2 $69.0 0 Revenue Passenge rMile s Availabl e Sea t Mile s Passenge r Revenu e Othe rRev
. @

. 6 o fpax . Rev
. % ^ Tota l Revenu e 

### 3,178,60 9 9,146,38 6 $815,028.0 0 $4,890.1 7 $819,918.1 7 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 $25,000.0 0 $1,062,150.0 0 $260,580.8 0 $536,694.5 5 $173,862.1 5 $2,058,287.5 1 Tota l Indirect Cost s 

### $767,040.9 4 Tota l Operatin g Expense s 

### $2,825,328.4 5 Operatin g Los s Profi t@ 5 %

Completio n Rat e Subsid ype rle g Loa d Facto r $2,005,410.2 8 $141,266.4 2 Annua l Compensatio n

Requiremen t$2,146,676.7 0 Monthl yCompensatio n

Requiremen t$178,889.7 3 

### 97 % $433.0 6 34.8 %Sovereig n Air , Inc
.

Annua l Compensatio n Requiremen tfo rEssentia l Ai rServic e fo r ESC-MBL-OR D Aircraf tTyp e Availabl e Seat s Pe r Departur e Passenger s Pe r Tri p 4rtdail y Beechcraf t35 0

1 2 6. 8
Bloc k Hour s Departure s Tota l Passenger s Averag e Far e Revenu e Passenge rMile s Availabl e Sea t Mile s Passenge r Revenu e Othe rRev
. @

. 6 o

fpax . Rev
.

_ % Tota l Revenu e 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 2,11 0 4,95 7 19,25 1 $41.0 0 4,870,50 3 8,599,16 6 $789,291.0 0 $4,735.7 5 $794,026.7 5 $25,000.0 0 $1,009,042.5 0 $247,551.7 6 $526,121.2 0 $163,430.4 2 $1,971,145.8 9 Tota l Indirec t Cost s Tota l Operatin g Expense s 

### $1,130,040.9 4 $3,101,186.8 3 Operatin g Los s Profi t@ 5 %

Completio n Rat e Subsid ype rle g Loa d Facto r $2,307,160.0 8 $155,059.3 4 Annua l Compensatio n

Requiremen t$2,462,219.4 2 Monthl yCompensatio n

Requiremen t$205,184.9 5 97 % 

### $496.7 2 56.6 %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 th e subjec tcities
.
Sincerely ,

Jo n Payne , CF

O Sovereig n Air , Inc
.