Before the United States Department of Transportation

July 12, 2011

Proposal to Provide Essential 

Air Service at

El Dorado, Arkansas

Harrison, Arkansas

Hot Springs, Arkansas

Jonesboro, Arkansas

Under 49 U.S.C. 41731 et seq.

Docket OST 1997-2935

Proposal of SeaPort Airlines, Inc.

to Provide Essential Air Service

Pursuant to Order 2011-6-25, SeaPort Airlines, Inc. (“SeaPort”) respectfully submits this 

proposal to continue to provide subsidized essential air service to the communities and 

residents of El Dorado, Harrison, Hot Springs, and Jonesboro, Arkansas. 

Correspondence regarding this proposal should be directed to:

Rob McKinney

President

SeaPort Airlines, Inc.

7505 NE Airport Way

Portland, OR 97218

(971) 340-1711

www.seaportairlines.com

Background

By Order 2009-6-25, the Department selected SeaPort Airlines to provide essential air 

service at El Dorado, Harrison, Hot Springs, and Jonesboro, Arkansas. The expiration 

date of the EAS contract is October 30, 2011. 

In anticipation of that expiration, on April 15, 2011, the Department issued order 2011-4-

15 requesting proposals for essential air service at the above referenced cities in 

Arkansas. On May 25, 2011, SeaPort Airlines submitted a timely response that included 

separate two-year and four-year options for each of the communities. There was no 

assertion in SeaPort’s proposal that it was presented as an “all or nothing” bid. In fact, it 

was SeaPort’s intention that each community proposal was to stand on its own. 
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Docket 1997-2935

July 21, 2011

The Department posted in the docket SeaPort’s proposal as well as the proposals of two 

other airlines, one of which subsequently withdrew its proposal. Although not invited to 

do so, the communities of El Dorado and Harrison submitted written responses urging 

the Department to re-select SeaPort as the communities’ essential air service provider 

for the next term (see Exhibit A).

By Order 2011-6-25, the Department noted that the subsidy proposals for the 

communities of Hot Springs and Jonesboro exceed the $200 per passenger cap and 

stated that carriers did not address the per passenger subsidy issue “either with lower 

subsidy requirements or specific plans to address the issue at Hot Springs or 

Jonesboro...” Although the Department’s concern was focused solely on those two 

communities, it not only rejected the proposals for those two communities, it inexplicably

re-solicited proposals for El Dorado and Harrison, which were not implicated by the per 

passenger subsidy issue. 

While SeaPort recognizes that the Department retains discretion on how to proceed with 

EAS proposals, we submit that the process employed in this docket undermines the 

integrity of the carrier-selection process. The foundation of the Department’s EAS 

selection process is essentially a blind bid process involving contemporaneous “best and 

final” submissions to the DOT staff which then publishes the submissions in the docket 

at the same time. That process ensures that applicants do not see other carrier 

proposals before filing with DOT to avoid allowing applicants to tailor their proposal to 

“beat the competition.” In this case, we believe it would have been better if the 

Department resolicited bids before having disclosed the bids in the public document. We 

believe that SeaPort, as the incumbent, is particularly adversely impacted by the 

Department’s resolicitation of bids, particularly with respect to El Dorado and Harrison, 

were not subject to the per passenger cap.

Notwithstanding the foregoing, SeaPort hereby submits its proposals for each 

community independently to enable it to continue the reliable and affordable air service it 

has been providing for the past 20 months.

Traffic Improvements

The four communities in this docket went without any air service for over sixteen (16) 

months, and suffered inferior air service prior to this hiatus. This past service history put 

SeaPort, as the new provider of essential air service in these communities, at a 

disadvantage. SeaPort spent its first year in the Arkansas communities reestablishing 

affordable air service that residents and businesses could trust and upon which they 

could rely. 

SeaPort’s efforts are yielding results as evidenced by enplanements during the month of 

June 2011 compared to the same period one year prior. Enplanements in El Dorado 

increased by 26%, in Hot Springs by 4%, in Harrison by 67%, and in Jonesboro by 

192%. The Company is confident that these are not anomalies, but rather indicative of a 

trend directly related to SeaPort’s service and demonstrated commitment to the 

communities. 
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Docket 1997-2935

July 21, 2011

This is best reflected in the bar chart below which shows Compound Annual Growth 

Rate (CAGR) for enplanements at each of the Arkansas communities from March 2010 

through June 2011. This growth was not shown in the Department’s order re-soliciting 

proposals for these communities, which included passenger data for only the first 15 

months of Seaport’s service, ending January 31, 2011.

Seaport Airlines Enplanements in Arkansas

Compound Annual Growth Rate (CAGR): March 2010 – June 2011

27.5%

19.0%

44.0%

89.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

El Dorado (ELD) Hot Springs (HOT) Harrison (HRO) Jonesboro (JBR)

Enplanements CAGR

Compound Annual Growth Rate 

Based on the above data, it is clear that SeaPort is experiencing success in 

reestablishing air service in these communities. SeaPort also believes that it is 

reasonable to expect that enplanement numbers will continue to increase at a rate that 

will meet (or exceed) the projections in this proposal. In fact, SeaPort is basing its 

subsidy proposal on its reasonable expectation that traffic will in fact increase over the 

next term. 

An important contributing factor to the increase in enplanements has been SeaPort’s 

willingness to work with our community partners to ensure that air service is responsive 

to their needs. Illustrating this was the Company’s addition of service to destinations and 

connecting hubs as additive alternatives to Memphis International Airport (MEM). 

Harrison and Jonesboro have enjoyed access to Kansas City International Airport (MCI) 

over the past few months. Unlike MEM, MCI is not dominated by a single carrier, and 

therefore has stronger competitive dynamics resulting in lower fares to connecting 

markets. This is reflected on the bar chart on the next page.
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July 21, 2011

Kansas City International Airport

Domestic Fare v National Average: CY2008-CY2010

Source: US DOT Office of Aviation Analysis

-10.5%

-9.2% -8.9%

-7.7%

-8.2%

-9.4% -9.1%

-11.2%

-8.6%

-6.9%

-6.0%

-7.6%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

1Q 20082Q 20083Q 20084Q 20081Q 20092Q 20093Q 20094Q 20091Q 20102Q 20103Q 20104Q 2010

% Below National Average

SeaPort believes the stronger pricing environment at MCI has positively contributed to 

recent enplanement growth and the Company intends to expand this practice. 

To this point, effective July 18, 2011, with the support of the communities, SeaPort 

Airlines will initiate nonstop and direct service from El Dorado, Hot Springs, and Harrison 

to Dallas Love Field (in addition to MEM) that will provide access to the Dallas-Fort 

Worth metroplex and to Southwest Airlines, the nation’s largest low-fare carrier.1

Schedule Enhancements

While alternative connecting points (i.e., MCI, DAL, and STL) where customers can 

access the national air transportation system have been noted to this point, SeaPort 

remains committed to Memphis as an integral part of its network. A key component of 

this proposal is adjustments to the Company’s schedule that better aligns with the 

connecting banks of Delta Air Lines flights at Memphis International Airport. This is 

illustrated on the graphic on the next page.

 

1 While SeaPort Airlines (along with every other U.S. based airline) does not have an interline ticketing and 

baggage agreement with Southwest Airlines, Internet savvy consumers figured out long ago how to build 

“end to end” connecting itineraries with this carrier, as well as others.
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July 21, 2011

Alignment of SeaPort and Delta Schedules at 

Memphis International Airport

SeaPort Planned & Delta Published Schedule

SOURCE: Delta schedules accessed via delta.com

0

10

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30

40

50

60

DL Arrivals DL Departures

Arrival 

from ELD 

& HOT

Arrival 

from 

JBR

Departure 

to ELD

Arrival 

from 

HRO

Departure 

to HRO

Departure 

to HOT & 

HRO

Arrival 

from 

ELD

Departure 

to HRO

Arrival 

from 

HRO

Departure 

to JBR

Number per Hour

With the exception of Jonesboro, each of the Arkansas communities hits at least one 

arrival and departure bank of flights at Memphis ensuring good connectivity throughout 

the nation. In the case of Jonesboro, as outlined later in this proposal, SeaPort believes 

that enplanement improvements will result by refocusing that community’s connecting 

portal to the air transportation system from MEM to Lambert International Airport in St. 

Louis.

Marketing Plan

In February 2010, the Department awarded the communities of Harrison, El Dorado, and 

Jonesboro a grant in the amount of $150,000 under the Small Community Air Service 

Development (SCASD) Program, with an additional $15,000 in matching community 

funds.

2

There was delay in deciding on how best to use this money, but consensus was reached 

and these funds are presently being used in a mix of traditional marketing outlets, 

including billboards in each community, newspapers, radio in all markets, monthly print 

advertisements in local magazines, and direct mail pieces with codes for promotional 

fares.

 

2 Order 2010-2-12
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July 21, 2011

Other marketing activities SeaPort has implemented that will help increase traffic at each 

of the communities and help address the per cap subsidy issue at Hot Springs and 

Jonesboro include the following:

Online Advertising

Current trends in consumer behavior demonstrate that the Internet is increasingly used 

by consumers as a major, if not primary, resource for travel information & booking 

reservations. With this in mind, SeaPort Airlines has implemented an aggressive online 

marketing campaign with plans to expand reach & visibility through a variety of channels. 

Factoring in the positive trends that SeaPort has experienced in the Arkansas 

communities during the past six months, the company anticipates that such activities will 

contribute positively to maintaining recent enplanement trends.

 Website: The majority of SeaPort passenger’s book their reservations through the 

Company’s website (www.SeaPortAir.com) which is currently undergoing a 

comprehensive redesign intended to improve user navigation, reduce bounce rates, 

and facilitate an easier booking process. The new site will feature more user-friendly 

content, and is anticipated to include resources such as destination pages and an 

itinerary building search engine, allowing users to book complete itineraries including 

connections on other carriers. The new site will also be compatible with mobile 

phones for the convenience of mobile phone bookings and optimized to enhance its 

placement in organic search results furthering our reach into the online community.

 Online Blog. In January 2011, SeaPort Airlines launched a well-optimized blog 

(“The SeaPort RePort”) to strengthen our online presence. SeaPort has used this 

blog to increase brand awareness, promote the Company’s service, and implement 

unique promotions targeting specific markets, including the Arkansas communities in 

this docket. Unique site visits and the “opt-in” subscriber base continue to climb as 

we build content. 

 Online Booking Portal. In 2011, SeaPort developed a “stand alone” booking engine

that can be easily imbedded in any outside website or social media site for direct 

booking on any SeaPort Airlines flight. This booking engine has been distributed to 

each website of each Arkansas airport included in this docket, as well as the local 

Chamber of Commerce and several local travel/hotel websites in each community. 

The Company intends to continue distribution of this portal to local travel and event 

sites (i.e., festivals, sporting events, etc.) to ease the reservation process and 

encourage use of the airport in each Arkansas community.

 Social Media Strategy. From 2010-2011, SeaPort Airlines has managed a 

successful social media campaign, allowing the Company to dynamically engage our 

Arkansas customers in a two-way conversation through sites like Facebook, Twitter, 

FourSquare & LinkedIn. We have found social media to be an excellent tool for 

generating passenger referrals and information sharing, and intend to enhance this 

effort through availability of our direct booking portal combined with communitytargeted advertising. 
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Docket 1997-2935

July 21, 2011

 Online Local Listings. SeaPort Airlines has implemented a campaign to create 

online business listings for each community. Establishing local business listings 

online for each market in Arkansas will be vital to increasing visibility in local search 

results and we believe that this will further optimize use of the SeaPort Airlines

website.

Incentive Programs

SeaPort Airlines has implemented loyalty programs and corporate accounts to generate 

repeat business by providing incentives to passengers at local airports, including Hot 

Springs, El Dorado, Harrison, and Jonesboro. These include:

 Corporate Value Accounts. SeaPort encourages businesses to make a long-term 

investment in Arkansas air service by offering Corporate Value Accounts that provide 

a variety of benefits and savings, including 5%-15% reductions off published fares.

 FlyerFlex Customer Rewards. During 2011, SeaPort launched a new and improved 

customer loyalty program called “FlyerFlex.” This program, which is available to all 

passengers including those in the Arkansas communities in this docket, provides the 

following benefits:

• Free flights

• Fee waivers

• Bonus points

• Gift memberships

• Personalized cards or bag tags 

SeaPort anticipates rolling out phase two of the FlyerFlex program by the end of 2Q 

2012 that will include a wider choice of travel rewards. It is important to note that this 

program is new throughout our system, but is expected to cultivate new and repeat 

business in the Arkansas communities in this docket.

Other Promotional Activities

SeaPort Airlines has offered various promotions in each of the Arkansas communities, a 

practice that we intend to carry forward into the next EAS term. First Time Flyer specials, 

contests/sweepstakes, promotional codes, and SeaPort branded item giveaways are just 

a few examples of promotions that have brought SeaPort new customers. Other 

promotional activities include:

 Local Event Marketing. Establishing a presence through visible participation in local 

events has been tremendously successful for both legacy and low-cost airlines and 

SeaPort has implemented a similar strategy, taking full advantage of such 

opportunities to engage and educate consumers and community partners. These 

activities have ranged from SeaPort Airlines community egg hunts to presenting at 

business expos to hosting “after hours” events at local Chamber of Commerce 

meetings. The Company plans significant continued event marketing over the next 

24 months.
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Docket 1997-2935

July 21, 2011

 Cooperative Local Marketing. SeaPort has recently obtained the capability to 

create travel packages with other local businesses and the company is formulating a 

detailed plan to offer packaging with hotels, spas, and local attractions. The 

Company intends that Arkansas communities of Hot Springs, El Dorado, Harrison 

and Jonesboro will be offered destinations, along with “weekend getaway” packages 

to each of the hubs served from these communities.

Enhanced Distribution

Since the time of inception of this service, SeaPort has invested heavily in improving our 

inventory distribution abilities. We are now in all five major global distribution systems. 

We have distribution on all major online travel agencies and meta-searchers. SeaPort 

has an interline ticketing agreement with US Airways (which serves MCI, MEM, and 

STL) and the Company has placed additional interline agreements among its highest 

priorities for the balance of 2011.

Clearly, SeaPort has implemented a comprehensive marketing program that, with the 

aid of SCASD grant funds, has contributed to dramatic passenger growth during the past 

six months. SeaPort strongly believes that by building on this foundation we can 

continue to increase enplanement levels at each of the Arkansas communities included 

in this docket.

Examples of marketing materials and activities referenced above are provided in Exhibit 

B of this proposal.

Service Proposal

SeaPort Airlines is submitting proposals for each community on an individual and standalone basis for a two-year term.

At the proposed service levels, the Company’s margin is very small and we are 

concerned about significant cost inflation in coming years that might outstrip increased 

traffic and reasonable fare increases. However, SeaPort is offering the Department the 

option to contract the proposed annual subsidy for any of these cities for a four year 

period.
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Docket 1997-2935

July 21, 2011

El Dorado/Camden

SeaPort proposes two daily round trips from El Dorado (ELD) to Dallas, TX (DAL), and 

one daily round trip from El Dorado to Memphis (MEM). This service would be six (6) 

days per week resulting in eighteen (18) total round trips just as the community will be 

receiving July 15, 2011. El Dorado has seen a continual increase in enplanements. As 

illustrated on the graph below.3

Seaport Airlines Enplanement Trend: El Dorado/Camden, AR

March 2010 – June 2011

This improvement represents only passengers traveling to Memphis. As has been 

experienced at Harrison, as result of the additional option of Kansas City, SeaPort 

expects that the addition of service to a second hub (i.e., Dallas Love Field) for El 

Dorado will achieve the passenger and revenue numbers that we propose.

SeaPort is proposing fares as low as $59 each way between El Dorado and Memphis 

and as low as $79 each way between El Dorado and Dallas Love Field, inclusive of all 

taxes and fees.

 

3

In reviewing enplanement trends in all of the markets, we would remind the Department that air travel in 

the Eastern United States experienced severe disruptions during the December 2010 through February 

2011 timeframe due to an unusually “tough” winter.

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94

99

119

127

116

121

145

112

104

84

104

123

131

161

150

0

20

40

60

80

100

120

140

160

180

MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

CAGR enplanements Expon. (enplanements)

CAGR = +27.5%
10

Docket 1997-2935

July 21, 2011

SeaPort Airlines, Inc.

El Dorado/Camden, AR

2 RT ELD-DAL + 1 RT ELD-MEM

18 Weekly Round Trips (3 x 6/day week)

Departures 1,825

Block Hours 2,062.5

Projected Annual Passengers 5,500

REVENUES

Operating Revenue $425,410

Other Revenue $4,680

TOTAL Revenue $430,090

EXPENSES

Direct

Insurance $ 73,269

Fuel/Oil $ 860,413

Flying Operations $ 765,363

Maintenance $ 575,689

Total Direct $ 2,274,734

Total Indirect $ 454,947

TOTAL Expenses $ 2,729,681

Operating Loss ($ 2,299,590)

Return (5%) $ 136,484

Annual Compensation Requirement $ 2,436,074
11

Docket 1997-2935

July 21, 2011

Harrison

SeaPort proposes two round trips to Memphis and one round trip to Kansas City (MCI)

per day, six (6) days per week resulting in eighteen (18) round trips per week. Again, the 

same as the community is receiving now.

On April 19, 2010, with the permission of the Department, SeaPort added a second hub 

to its Harrison service. On August 19, 2010 we added an additional daily round trip from 

Harrison to Kansas City at our own risk. Enplanements increased dramatically, and 

continue to increase to this day as demonstrated by the traffic numbers illustrated on the 

graph below.

Seaport Airlines Enplanement Trend: Harrison, AR

March 2010 – June 2011

On July 15, 2011, SeaPort will be adding a daily segment from Harrison to Hot Springs 

to provide connectivity to Dallas. This same level of service is contemplated in our 

calculations for future passenger traffic. The extra and unsubsidized service is not 

included in the cost calculations for this proposal, and associated expenses are being

undertaken at SeaPort’s risk. The increased enplanements are included since the 

community would get credit for those passengers regardless of which route they chose.

Once again this demonstrates SeaPort’s unparalled commitment to the success of air 

service at these communities. 

SeaPort is proposing fares as low as $59 each way between Harrison and Memphis and 

as low as $79 each way between Harrison and Kansas City, inclusive of all taxes and 

fees.

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153

107

132

111

164

148

199

191

200

143 141

211

171

209

220

0

50

100

150

200

250

MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

CAGR Series2 Expon. (CAGR)

CAGR = +44.0%
12

Docket 1997-2935

July 21, 2011

SeaPort Airlines, Inc.

Harrison, AR

2 RT HRO-MEM + 1 RT HRO-MCI

18 Weekly Round Trips (3 x 6/day week)

Departures 1,825

Block Hours 1,904.3

Projected Annual Passengers 7,000

REVENUES

Operating Revenue $595,791

Other Revenue $6,554

TOTAL Revenue $602,345

EXPENSES

Direct

Insurance $ 67,650

Fuel/Oil $ 794,423

Flying Operations $ 735,489

Maintenance $ 531,536

Total Direct $ 2,129,098

Total Indirect $ 425,819

TOTAL Expenses $ 2,129,098

Operating Loss ($ 1,952,572)

Return (5%) $ 127,746

Annual Compensation Requirement $ 2,080,318
13

Docket 1997-2935

July 21, 2011

Hot Springs

As pointed out by the Department, Hot Springs enplanement numbers were troubling 

through January 31, 2011. Since then, however, due to the combined efforts of SeaPort 

and the community, the traffic numbers have been steadily improving as evidenced on 

the graph below.

Seaport Airlines Enplanement Trend: Hot Springs, AR

March 2010 – June 2011

The addition of service to Dallas, which service commences July 15, was primarily 

driven by SeaPort’s desire to increase enplanement levels at Hot Springs. The Company 

recognized a year ago that service to Memphis alone was not going to build at a rate 

that would be acceptable to DOT upon renewal. We began the effort to reroute to Dallas 

a full year ago. It has taken SeaPort an entire year to accomplish this service change 

due to the need to develop a mechanism to address TSA screening requirements. 

There is no TSA screening at Hot Springs and therefore we had to develop a special 

arrangement at Dallas to provide for screening of Hot Springs’ passengers on arrival at 

Dallas.

There is historic traffic data to indicate that traffic will quickly increase to the level we are 

projecting in our proposal. In addition to the Dallas destination, the segment discussed 

above connecting Harrison to Hot Springs will also give Hot Springs one stop service to 

Kansas City. Seaport feels strongly that offering three hubs to Hot Springs will be a key 

to the community’s continued reduction in per passenger subsidy, and eventual future 

sustainability. 

That being said, we are sensitive to efforts to reduce the amount of subsidy needed for 

this community. Typical language in Essential Air Service RFP’s states that for aircraft 

that are less than 15 seats the service proposed should be three (3) non-stop round trips 

per day. To that end we are offering two options for Hot Springs. The first option 

conforms to this directive, and the second, linear flight pattern option does not, but 

provides dramatic savings in the requested subsidy without sacrificing available seats.

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MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

CAGR enplanements Expon. (enplanements)

CAGR = +19.0%
14

Docket 1997-2935

July 21, 2011

SeaPort’s proposal is based on offering fares as low as $59 between Hot Springs and 

Memphis and as low as $77 between Hot Springs and Dallas Love Field.

 Option One: SeaPort would offer two round trips from Hot Springs to Dallas Love six 

day per week, and one round trip from Hot Springs to Memphis six days per week. 

These eighteen (18) weekly round trips will be identical to service this community will 

receive effective on July 15, 2011.

SeaPort Airlines, Inc.

Hot Springs, Arkansas

2 RT HOT-DAL + 1 RT HOT-MEM

18 Weekly Round Trips (3 x 6/day week)

Departures 1,825

Block Hours 2,019.9

Projected Annual Passengers 6,200

REVENUES

Operating Revenue $740,425

Other Revenue $8,145

TOTAL Revenue $748,570

EXPENSES

Direct

Insurance $ 71,757

Fuel/Oil $ 842,647

Flying Operations $ 795,538

Maintenance $ 563,801

Total Direct $ 2,273,743

Total Indirect $ 454,749

TOTAL Expenses $ 2,728,492

Operating Loss ($ 1,979,922)

Return (5%) $ 136,425

Annual Compensation Requirement $ 2,116,435
15

Docket 1997-2935

July 21, 2011

 Option Two: This option would be similar to option one, except instead of two 

nonstop flights to Dallas, SeaPort would offer one non-stop to Dallas and a second 

round trip to Dallas would be a one stop via El Dorado. This option still provides the 

community with eighteen (18) round trips per week, however six (6) would be a one 

stop instead of a nonstop.

SeaPort Airlines, Inc.

Hot Springs, Arkansas

1x HOT-DAL + 1x HOT-ELD-DAL + 1x HOT-MEM

18 Weekly Round Trips (3 x 6/day week)

Departures 1,825

Block Hours 1,545.3

Projected Annual Passengers 6,200

REVENUES

Operating Revenue $740,425

Other Revenue $8,145

TOTAL Revenue $748,570

EXPENSES

Direct

Insurance $ 54,898

Fuel/Oil $ 644,676

Flying Operations $ 633,336

Maintenance $ 431,342

Total Direct $ 2,764,252

Total Indirect $ 352,851

TOTAL Expenses $ 2,117,103

Operating Loss ($ 1,368,533)

Return (5%) $ 105,855

Annual Compensation Requirement $ 1,474,388
16

Docket 1997-2935

July 21, 2011

Jonesboro

Rebuilding Jonesboro’s air traffic has been SeaPort’s greatest challenge. On January 

30, 2011, with the permission of the Department, the Company began operating one of 

the three daily flights between Jonesboro and Kansas City. This new service has had a 

dramatic improvement to enplanement numbers, and all of these numbers are 

subsequent to those passenger numbers cited by the Department in its request for 

proposals. This impact is illustrated on the graph below.

Seaport Airlines Enplanement Trend: Jonesboro, AR

March 2010 – June 2011

As a result of the service pattern changes, per passenger subsidy has been reduced by 

roughly 40% and is now in the range of $500 per passenger (down from the approximate 

$800 level cited by the Department in this RFP). Although we believe that traffic would 

continue to grow for Jonesboro to Kansas City, the distance is considerable, making the 

cost of operation for this route high. In an effort to be responsive to the Department’s 

request for ways to reduce the cost, SeaPort Airlines is proposing to replace Kansas City 

with St. Louis and offer a greater number of flights to STL than to MEM.

SeaPort proposes two round trips from Jonesboro to St. Louis, and one round trip from 

Jonesboro to Memphis. This service would be six days per week, resulting in a total of

eighteen round trips weekly. This proposal is based on offering fares as low as $39 

between Jonesboro and Memphis and fares as low as $94 between Jonesboro and St. 

Louis.

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MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

Enplanements CAGR Expon. (Enplanements)

CAGR = +89.0%
17

Docket 1997-2935

July 21, 2011

SeaPort Airlines, Inc.

Jonesboro, Arkansas

2 RT JBR-STL + 1 RT JBR-MEM

18 Weekly Round Trips (3 x 6/day week)

Departures 1,825

Block Hours 1405.4

Projected Annual Passengers 4,000

REVENUES

Operating Revenue $371,777

Other Revenue $4,089

TOTAL Revenue $ 375,866

EXPENSES

Direct

Insurance $ 49,927

Fuel/Oil $ 586,299

Flying Operations $ 533,159

Maintenance $ 392,283

Total Direct $ 1,561,699

Total Indirect $ 234,251

TOTAL Expenses $ 1,795,920

Operating Loss ($ 1,420,054)

Return (5%) $ 89,796

Annual Compensation Requirement $ 1,509,850
18

Docket 1997-2935

July 21, 2011

Again, these four cities are offered as separate and stand-alone proposals, under the 

single docket OST-1997-2935.

Respectfully submitted,

Robert L. McKinney

President

SeaPort Airlines, Inc.

ATTACHMENTS

EXHIBIT A – LETTERS & NEWSCLIPPINGS ENDORSING SEAPORT AIRLINES AS 

PROVIDER OF SCHEDULED AIR SERVICE AT ARKANSAS EAS COMMUNITIES

EXHIBIT B – ILLUSTRATIVE MARKETING MATERIALS
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Docket 1997-2935

July 21, 2011

EXHIBIT A – LETTERS & NEWSCLIPPINGS ENDORSING SEAPORT AIRLINES AS 

PROVIDER OF SCHEDULED AIR SERVICE AT ARKANSAS EAS COMMUNITIES
20

Docket 1997-2935

July 21, 2011

From: Mayor of El Dorado

Sent: Thursday, June 23, 2011 3:39 PM

To: Dennis.DeVany@dot.gov

Cc: ‘Jeff Teague’ ; ‘Henry Florsheim’

Subject: EAS

Dear Mr. DeVany: Sir, on behalf of the City of ElDorado,AR., our Airport Commission and the 

ElDorado Chamber of Commerce,I wish to request that Sea-Port Airline be granted continued 

funding to serve our region. Collectively,we have examined possible service from another air 

provider, but believe Sea-Port provides the best routes and services for our specific needs. SeaPort has been an excellent on time carrier and has been very proactive in securing a route to the 

Dallas/Ft.Worth area that promises to greatly improve our overall boardings. We have excellent 

operational relations with Sea-Port and believe our economy will benefit greatly with their 

continued service. We strongly request your support for continued EAS and Sea-Port Airline. 

Respectfully, Mayor Frank Hash, City of ElDorado,AR.
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EXHIBIT B – ILLUSTRATIVE MARKETING MATERIALS

Screen shot of the current SeaPort website & the approved mock-up for the new site.

Screen shot of the SeaPort Airlines blog, SeaPort Report.

Current

Planned
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Screen shots of the SeaPort “stand alone” booking portal on the South Arkansas 

Regional and Boone County Regional airport websites.

Printed flyers used to promote SeaPort’s Corporate Value Account and FlyerFlex 

frequent flyer programs.
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Advertising and other print samples – Arkansas market specific

Advertising and other print samples – General SeaPort Airlines
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Social Media Activities
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