BEFORE THE

DEPARTMENT OT TRANSPORTATION

WASHINGTON, D.C.

Essential Air Service at

GREENVILE, MISSISSIPPI

MUSCLE SHOALS, ALABAMA

TUPELO, MISSISSIPPI

Under 49 U.S.C. 541731 et seq-

)

)

)

) osT-2008-0209

) osT-2000-78s6

) osT-2009-030s

)

)

SUN AIR INTERNATIONAL PROPOSAL

TO PRO'IDE SUBSIDIZED ESSENTIALAIR SERICE

By Order 201 1-1 1-2g,theDepartment requested proposals for Essential Air Service to four

communities. Pursuant to that order, Sun Air ExpreJs, LLC. ("Sun Air") cordially submits this

proposal to provide subsidized air seruice to the communities of Greenville, Mississippi (GLH),

ivturcle Shoals, Alabama (MSL) and Tupelo, Mississippi (TUP)'

correspondence with regard to this document should be addressed to:

Thomas L. Cooper

President & CEO

Sun Air Express, LLC. dba Sun Air International

3201 Griffin Road,

Ft. Lauderdale, FL 33312

Telephone: 954-660-9865

Fax:

E-Mail:

954-894-0367

tlcooper@gosunair.com

Bid Summarv

s", At. h"*by .ffers three service options for service. Each service option is distinct and is not

contingent upon any other factors. Sun Air's proposed operations will be operated by a fleet of

nine-plssenger twin-engine Piper Chieftain aiicraft. Flights will be displayed in major travel

ag",ri ryst"is includiniOnlinl Travel Agencies, and mileage credits are planned for passengers

tJcontinue participating in a major carrier Frequent Flier Program.
Sun Air has constructed its' proposal to incorporate the following essential elements of providing

successful, quality air transportation in these proposed markets:

1. LOW FARES: Sun Air will market its flights with a simple, low unrestricted price structure, at

$29, $39 and $49 each way. We anticipate that most tickets will be made available at the lower

end of those fares. The company is projecting average fares of less than $35. Sun Air strongly

believes that low unrestricted fares are essential to facilitating passenger flight connections,

effectively replacing the value of through-fare pricing available in traditional code-share

relationships.

2. FREeUENT FLIGHTS: A1l three communities would be provided at least four weekday

.ound trips. The flights will be timed to coincide with Delta Air Lines' connecting banks at

Memphis, thus prori=iding convenient access to all major destinations in the U.S. as well as key

international gateways.

Four weekday round trips will provide twice the number of daily departures currently offered,

resulting in gieater convenience for the flying public and enabling reasonable flight connecting

times to virtually any carrier at Memphis. All major carriers are represented at Memphis

International.

3. ACCESS TO MAIN TERMINAL FACILITIES: All flights will connect to or from Memphis

International Airport, on a nonstop basis, where Sun Air will invest in its own gate and avoid the

need for customers to exit security and re-enter prior to making their flight connection. While

requiring a signficant expense, the leasing of a full gate atMemphis (and associated space for

ticket counters, etc) is necessary to provide adequate facilif resources at the main terminals,

particularly with 12 daily Memphis departures and three aircraft on the ground simultaneously at

least three times daily.

4. INTERLINE E-TICKETING AND BAGGAGE AGREEMENTS: INtETIiNE E-tiCKEtiNg ANd

baggage agreements with most major airlines make the connecting process as seamless as

poIJiU'i". ih" "o*puny 

has provided for making a significant investment in reservations and

distribution systems toacquire access to industry interline and baggage agreements with most

major airlines. This capability will be available from the first day of operations'

5. A COMMITMENT TO RELIABILITY: Sun Air's operations would include investment in a

regional maintenance base, staffed by a full complement of technicians, as well as a major

iniestment in spare aircraft. Sun Air's service proposals provide a full-time spare aircraft for

three "scheduled" aircraft in one case, two spare aircraft for four (4) "scheduled" aircraft in the

second case, and one spare aircraft for two (2) "scheduled aircraft in the third case. Reserve

pilots will be available with the back-up aircraft to dispatch to any destination needed, ensuring a

rapid response time as needed'

Service Option 1

Ura". Opiion 1, Sun Air will provide a basic pattern of service outlined for 8/9 passenger aircraft

in the Department's Order Requesting Proposals dated November 23,2011. This service pattern

consists of fo,r, (a) daily ,ound trips per weekday to each of the three communities, with two (2)

daily round trips'to "u.h 

on Saturdayand two (2) daily round trips to each on Sunday. All flights

will operate on a non-stop basis to and from main terminals at Memphis International Airport'
Option one will require three aircraft to support scheduled operations, and Sun Air will provide

an additional full+ime spare aircraft to ensure operational reliability. The company will also

establish a full regional maintenance base in one of the cities.

Sun Air proposes a subsidy level of $879 per departure for Greenville, $866 per departure for

Muscle St outr, and $800 per departure for Tupelo. At an assumedgSYo flight completion facfor,

this would equate to an annual subsidy of $6.225 million for all three communities.

A representative schedule, along with passenger, revenue and cost projections, are incorporated in

Schedule 1.

Service Option 2

Sun Air offers a second option that adds a fourth scheduled weekday airplane, used to provide

additionat frequencies to iupelo and Greenville. Based upon historical traffic trends, Sun Air

believes that the extra frequencies would be warranted to meet passenger demand, and that such

higher fiequency will contribute to increased passenger ridership'

A total of six (6) weekday flights would be offered to Tupelo under Option2, and (5) weekday

flights to Greenville. Thee round trips to each destination would be offered on weekends'

Muscle Shoals would maintain the same schedule as as envisioned in Option 1'

Sun Air envisions providing two spare aircraft to support Option 2, thus requiring a total of six

aircraft. Sun Air is acutely awur" Lf th" importance of maintaining reliable service, and is

committed to providing the necessary resources to ensure that becomes a reality.

Fare levels under Service Option 2 would be the same, low unrestricted fares as in Option 1.

Under Service Option 2, Sun Air proposes a subsidy level of $875 per departure for Greenville,

$789 per departure for Muscle Shoals, and $699 per departure for Tupelo. This would equate to

an annual subsidy cap of $7.197 million for all three communities.

A representative schedule, along with passenger, revenue and cost projections, are incorporated in

Schedule 2.

Service Option 3

Sun Air also proposes a third option, which would be for service to Greenville and Tupelo only'

Schedules to ihese two communities under Service option 3 would be identical to those provided

in Service Option 1.

Sun Air provides this option to offer the Department greater flexibility in selecting carriers and

markets, particularly ircase Muscle Shoals preferred to maintain the access to Atlanta airport that

they currently have, if such service is oflered in response to Order 2011-11-29. Sun Air would

,oib" interested in providing service on a scale less than these two communities.

Under Service Option 3, Sun Air proposes a subsidy level of $929 per departure for Greenville,

$789 per departuie for Muscle Sh-oals, and $846 per departure for Tupelo. This would equate to

an annual rrrbrldy cap of $4.343 million for the two communities.

Passenger, revenue and cost projections are incorporated in Schedule 3.
About Sun Air International

Sun Air Express, LLC is a Fort Lauderdale, FL based air taxi operation serving Florida and the

Bahamas, and offers on-demand air cargo services within Florida and the Bahamas, as well as

scheduled services with four or fewer weekly flights to Catlsland, Great Harbour Cay, Chub Cay,

and Andros Island in the Bahamas.

Sun Air currently has a fleet of six Piper Chieftain aircraft, all owned free and clear, and is

prepared to acquire sufficient additional akcraftneeded to support proposals awarded here. The

ulrtin" has access to the financial resources necessaty to acquire the additional equipment. Sun

Air's aircraft are approved for single-pilot operations, although the company's objective is to

provide a First Officer on every r"n"aot"a flight. Sun Air has its first class of First Officer's in

training at the present time..

The airline has been in operation for more than ten years, and was purchased in May, Z0l1by

Thomas L. Cooper. Mr. Cooper is the founder of several regional airlines, including Gulfstream

International Aiilines, where he also founded Sun Air as a subsidiary of Gulfstream. He sold his

interests in Gulfstream to a private investment group in 2006. Mr. Cooper has been involved in

aviation for more than 40 years, including more than 20 years as a727 Captzin for Eastern

Airlines in addition to his extensive career with regional airlines. Since his acquisition of Sun Air

in May of last year, he has invested heavily in new aircraft., support equipment and additional

support personnel.

Sun Air filed a commuter air carrier application with the Department's Air Carrier Fitness

Division on Septemb er 9,2011 as part of its plans to provide scheduled passenger air

transportation, In addition to its original application, Sun Air has submitted all of the information

the Department has requested, and the application is in its final stages of review.
SCHEDULE 1

Representative Timetable

FROM DEPT ARR

TTIPELO

MEMPHIS

GREENVILLE

MEMPHIS

MUSCLE SHOALS

MEMPHIS

MEMPHIS

TUPELO

MEMPHIS

GREENVILLE

MEMPHIS

MUSCLE SHOALS

TOOAM

1l30AM

2OOPM

5OOPM

93OAM

IOOPM

315PM

5OOPM

TOOAM

ll00AM

2OOPM

5OOPM

9154M

t245PI!/{

33OPM

715PM

TOOAM

10454M

I45PM

445PM

93OAM

l23oPM

315PM

7I5PM

7454}/d

12t5PM

245PM

545PM

1015AM

145PM

4OOPM

545PM

SOOAM

120oPM

3OOPM

6OOPM

1015AM

I45PM

43OPM

8I5PM

SOOAM

1145AM

245P}d

545PM

10304M

I3OPM

415PM

8I5PM
SCTMDULE 1

Projected Operations

Passenger

Other Revenues

TOTAL OPERATING REVENUE

OPERATING EXPENSES

Flight Operations

Fuel & lntoplane

Maintenance

Passenger Service

Aircraft OwnershiP

0ther

Total Operating Cost

oPERATTNG INCOMEI(LOSS)

Profit Element - 5% of Operating

Costs

Subsidy Required

ASMs (000's)

RPMs (000s)

Load Factor

Average Fare

EAS Subsidy per Departure

Departures

Block Hours

Flight Hours

Available Seats

Passengers

Distance

Block Time

Flight Time

464,290 448,000

277,726 26]-,341

439,194

25,A97

423,783

24,216

443,597

28,619

L,306,574

77,932

532,580

4r'i0,494

1,036,!78

91,977

499,294

419,213

L,O28,693

92,464

472,216

231,988

399,43s

355,371

L,A66,178

9L774

1,384s06

764,455

1,43L,309

7,275,O79

3,130,990

276,207

117,568 t41-,951 167,7M 427,263

2,489,923 2,M2,953 2,31?,426 7,245,303

$ (a025,633) $ (1,994,9541 $ {1,840,211} (5,850,797)

724,496 122,L48 115,621" 362,265

z,lL7,LAL 9st832

s

$

s

s

s

s

$

s

2,gg4,oo2

t,706,58t

57.O%

35.00

879

2,M5

2,7il

1,957

22,O75

12,548

136

L.73

0.80

2,685,796

!,477,188

55.O%

35.00

865

Z,MG

2,642

1,835

22,O15

12,708

tzz

1.08

0.7s

1,937,295

L,259,242

65.O%

31.00

800

2,446

2,275

L,468

22,O75

'J.4314

8B

0.93

0.60

7,617,O93

4,443,Or1

58.3%

33.53

848

7,339

7,697

5,259

66,OM

38,966
SCHEDULE 2

Representative Timetable

FROM TO DEPT ARR

TUPELO MEMPHIS TOOAM 7454M

MEMPHIS

GREENVILLE

MEMPHIS

MUSCLE SHOALS

MEMPHIS

TLIPELO

MEMPHIS

GREENVILLE

MEMPHIS

MUSCLE SHOALS

1045AM

1215PM

I45PM

33OPM

5OOPM

9OOAM

10l5AM

123OPM

145PM

33OPM

73OPM

63OAM

7454},4

l045AM

2OOPM

5OOPM

915AM

1245PM

315PM

5I5PM

715PM

TOOAM

1045AM

I45PM

445PM

93OAM

123oPM

315PM

715PM

l130PM

IOOPM

23OPM

4I5PM

545PM

945AM

ll00AM

I15PM

2I 5PM

4I5PM

815PM

73OAM

845AM

1l45AM

3OOPM

6OOPM

1015AM

I45PM

4I5PM

615PM

815PM

8OOAM

lt45AM

24'PI|iI

545PM

l03oAM

I3OPM

4I5PM

8I5PM
SCFMDULE 2

Projected Operations

Passenger

Other Revenues

TOTAL OPERATING REVENUE

OPERATING EXPENSES

Flight Operations

Fuel & lntoplane

Maintenance

Passenger Service

Aircraft Ownership

Other

Total Operating Cost

oPERATTNG TNCOME/(LOSSI

Profit Element - 5% of Operating Costs

Subsidy Required

ASMs {000's)

RPMs (000s)

Load Factor

Average Fare

EAS Subsidy per Departure

Departures

Block Hours

Flight Hours

Available Seats

Passengers

Distance

Block Time

Flight Time

464,290 s 536,581 675,632 5 1,676,503

439,794 s

2s,o97

507,577

29,0O4

634,684 5

40,947

1,591,455

95,049

262,833

532,580

440,494

L,A36,178

97,770

L17,568

3]".2,746

6M,921

522,317

1,L11,486

146,970

145,303

337,746

599,153

508,056

L243,468

L72,500

225,387

9L3,325

L,776,654

1,470,868

3,390,732

41L,240

488,258

2,487,424 2,883,743 3,085,910 8,45t,O77

5 (2,A17,t34' $ (2,347,L621 5 12,4LO,2781 $ 16,774,5741

t24,O7t s 1M,187 L54,295 5 422,554

s 2,14t,2O5 s 2A9t,349 $ 2,564,573 $ 7,197'128

2,gg4,oo2

t,706,587

57.OYo

g 3s.oo $

s87ss

2,M6

2,764

1,957

22,O!5

L2,544

136

1.13

0.80

3,469,L53

1,769,268

5L.OYo

3s.00 s

78e s

3,160

3,412

2,370

28,436

14,502

722

1.08

0.75

2,9a5,943

1,901,685

62.0%

31.00 $

6ee $

3,569

3,4\2

2,z0t

33,O22

20,474

88

0.93

o.50

9,359,098

5,217,534

s6.3%

33.28

776

9,275

9,589

6,528

83,472

47,524
SCTMDULE 3

Projected Operations

Passenger

Other Revenues

TOTAL OPERATING REVENUE

OPERATING EXPENSES

Flight Operations

Fuel & lntoplane

Maintenance

Passenger Service

Aircraft Ownership

Other

Total Operating Cost

oPERATTNG TNCOME/(LOSS)

Profit Element - 5% of Operating Costs

Subsidy Required

ASMs (000's)

RPMs {000s)

Load Factor

Average Fare

EAS Subsidy per Departure

Departures

Block Hours

Flight Hours

Available Seats

Passengers

Distance

Block Time

Flight Time

MEMTOTAT

423,783 s 867,380

24,2L6

443,s97

28,6L9 52,835

448,000 472,2L6 s 920,215

289,5s0

546,846

479,394

981,632

114,000

779,832

258,363

437,477

411_,5L5

1,019,057

114,000

180,525

547,91,3

984,322

890,908

2,000,689

228,OO0

360,358

2,59L,254 2,42O,937 5,O12,79L

$ 12,L43,2541 $11,948,72t1

129,563 L27,O47

5 2,272,8L7 $ 2,069,768

14,091,9751

250,610

4,342,585

2,695,796

1,477,188

55.O%

$ ss.oo

s e29

2,446

2,642

1,935

22,O15

t2,748

122

1.08

o.75

L,937,295

!,259,242

6s.o%

s 31.00

S aae

2,M6

2,275

t,468

22,O15

74,3tO

88

0.93

0.50

4,623,091

2,736,430

s9.2%

32.83

888

4,892

4,917

3,302

44,O29

26,41.8

s

s
In conclusion, Sun Air believes that its proposal will provide excellent levels of service to the

communities, ensure that they have proper access to the rational air transportation network, and

offer cost-effective options that meet the requirements of the Essential Air Service Program.

Respectfully Submitted: January 18, 2012

Thomas L. Cooper

President & CEO

Sun Air Express, LLC.