November 29, 2012

Proposal of Hyannis Air Service, Inc. dba Cape Air to provide subsidized Essential Air Service for:

Massena, NY

To/From 

Boston via Albany

Docket DOT-OST-2012-0163 

Hyannis Air Service, Inc., dba Cape Air

Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601 

(508) 862-9719
Cape Air is delighted to have served Massena 

for more than four years

• Cape Air started serving Massena on 

September 16, 2008

• Since then we have flown more than 

32,000 passengers to or from Massena

– The Massena enplanement pace for 

2012 is approaching 5,000

• Cape Air serves Massena three times 

daily to/from Boston, via Albany

• Fares are low, in 2012 averaging just $58

• Serving both Massena and Ogdensburg 

provides critical mass to recover from 

irregular operations

1

Overview

Massena ribbon cutting
Massena enplanements in 2012 will be the highest

in the last decade

2

Source: US DOT T100 and Cape Air FLIFO Estimated

Massena enplanements

723

2,327

2,056

3,201

2,925

2,085

950

3,252 3,350

4,396

5,063

0

1,000

2,000

3,000

4,000

5,000

6,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Massena ridership swelled with the addition 

of Boston service

3

Massena passengers

Sum of both ways; year ending 5,849 6,146 6,147 6,221

6,223

6,213

6,145

6,136

6,178

6,225

6,286

6,330

6,394

6,411

6,468

6,434

6,480

6,500

6,468

6,539

6,677

6,842

7,048

7,298

7,538

7,827

8,010

8,315

8,596

8,758

9,035

9,270

9,354

9,484

9,562

9,614

9,620

9,657

9,625

0

2,000

4,000

6,000

8,000

10,000

12,000

Aug-09

Oct-09

Dec-09

Feb-10

Apr-10

Jun-10

Aug-10

Oct-10

Dec-10

Feb-11

Apr-11

Jun-11

Aug-11

Oct-11

Dec-11

Feb-12

Apr-12

Jun-12

Aug-12

Oct-12

Source: Cape Air FLIFO
Albany features flights to 20 non-stop destinations...

4

Albany route map

December 2012

Source: OAG

Albany destinations served

December 2012

Rank Destination Weekly Departures

1Philadelphia, PA 43

2 Newark, NJ 32

3Baltimore, MD 32

4 Detroit, MI 30

5 Chicago-O'Hare, IL 27

6 Washington-Dulles, VA 23

7 Cleveland, OH 21

8Boston, MA 21

9 Massena, NY 21

10 Ogdensburg, NY 21

11 Charlotte-Douglas, NC 20

12Atlanta, GA 19

13 Washington-National, DC 19

14 Orlando, FL 16

15 Chicago-Midway, IL 14

16 Toronto, ON, CA 9

17 Fort Lauderdale, FL 7

18 Las Vegas, NV 7

19 Tampa, FL 7

20 Minneapolis/St. Paul, MN 7

Total 396
...And Boston has service to 100 non-stop 

destinations, including 30 international destinations and 

comprehensive transcontinental service

Rank Destination Dpt/Wk Rank Destination Dpt/Wk Rank Destination Dpt/Wk Rank Destination Dpt/Wk

1 Washington-National, DC 133 26 Presque Isle, ME 37 51 Hyannis, MA 13 76 Dublin, IE 7

2 New York-La Guardia, NY 127 27 Montreal-PET, QC, CA 33 52 Seattle/Tacoma, WA 13 77 Reykjavik, IS 6

3 Chicago-O'Hare, IL 107 28 Martha's Vineyard, MA 33 53 Halifax, NS, CA 12 78 Munich, DE 6

4 Philadelphia, PA 104 29 West Palm Beach, FL 33 54 Rochester, NY 12 79 Santo Domingo, DO 6

5 Baltimore, MD 100 30 Houston-Intercontinental, TX 31 55 Las Vegas, NV 11 80 Zurich, CH 6

6 New York-JFK, NY 100 31 Buffalo, NY 29 56 Ottawa, ON, CA 11 81 Harrisburg, PA 6

7 Atlanta, GA 95 32 Phoenix, AZ 29 57 Salt Lake City, UT 11 82 Sarasota/Bradenton, FL 6

8 Newark, NJ 91 33 Toronto-City, ON, CA 28 58 San Diego, CA 10 83 Santiago, DO 5

9 Charlotte-Douglas, NC 73 34 Lebanon, NH 28 59 Indianapolis, IN 9 84 St. Thomas, VI 5

10 Dallas/Fort Worth, TX 71 35 Cleveland, OH 27 60 Columbus, OH 9 85 Frankfurt, DE 5

11 San Francisco, CA 70 36 Chicago-Midway, IL 27 61 Norfolk, VA 9 86 New Orleans, LA 5

12 Orlando, FL 67 37 Tampa, FL 26 62 Syracuse, NY 9 87 Rome-Da Vinci, IT 5

13 Los Angeles, CA 63 38 San Juan, PR 25 63 Aruba, AW 8 88 Long Beach, CA 5

14 Toronto, ON, CA 61 39 Plattsburgh, NY 23 64 Akron/Canton, OH 8 89 San Jose, CA 4

15 Raleigh/Durham, NC 51 40 Provincetown, MA 22 65 Memphis, TN 7 90 Nassau, BS 4

16 Fort Lauderdale, FL 49 41 Bar Harbor, ME 22 66 Amsterdam, NL 7 91 Punta Cana, DO 3

17 Miami, FL 49 42 Albany, NY 21 67 Austin, TX 7 92 Madrid, ES 3

18 Fort Myers, FL 49 43 Augusta, ME 21 68 Nashville, TN 7 93 Kansas City, MO 3

19 Washington-Dulles, VA 48 44 Richmond, VA 21 69 Cancun, MX 7 94 Shannon, IE 3

20 Nantucket, MA 46 45 Rockland, ME 21 70 Jacksonville, FL 7 95 Praia, CV 2

21 Denver, CO 43 46 Rutland, VT 21 71 Myrtle Beach, SC 7 96 Montego Bay, JM 2

22 Pittsburgh, PA 43 47 Saranac Lake, NY 21 72 Tokyo-Narita, JP 7 97 Ponta Delgada, PT 2

23 Detroit, MI 39 48 Cincinnati, OH/Covington, KY 21 73 Portland, OR 7 98 Providenciales, TC 2

24 London-Heathrow, EN, GB 39 49 St. Louis, MO 16 74 Bermuda, BM 7 99 St. Maarten, SX 2

25 Minneapolis/St. Paul, MN 37 50 Milwaukee, WI 14 75 Paris-De Gaulle, FR 7 100 Grand Cayman Island, KY 1

Total 2,716

5

Boston destinations served

December 2012

Source: OAG

Note: Shading denotes international service
The empirical success in ridership growth at Massena 

is due to a service solution that fits

Low fares

Service to 

Albany and

Boston

Convenient 

schedule at 

3x daily

Interlines with 

all legacy 

airlines

Connection to

Fully-functioning 

global distribution

plus local outreach

Safe and 

conservative 

operating 

philosophy

6

Popular 

service

Constellation of success
7

A great fit for Massena:

Cape Air is a small but robust commuter airline, 

operating and growing since 1989

 First route was Boston –

Provincetown, begun in October 1989 with 

one aircraft

 67 Cessna 402s in four regions, and two 

ATR-42s in Micronesia

 Operating up to 600 flights daily

 In 2011 flew almost 700,000 passengers

 Stable, mature and growing company 

Key facts Cape Air: Leading the pack nine at a time

Photo courtesy Mark Garfinkel (August 7, 2000, Boston)
Cape Air 2012

• Annual revenue over $100M 

• Financially stable

• Cape Air has purchased three more 

Cessnas, which will bring the fleet total to 70

• 37 airports served, 15 in EAS

8

Captain Krista Poppe

Boston based
9

For smaller communities and niche markets, 

Cape Air’s nine-seat planes have proven to be a good fit

 High-frequency, non-stop service

 Interline e-ticketing and baggage agreements

 Complete GDS sales channels:

 800-Cape-Air

 In-house reservations call center

 Reliability thanks to spare aircraft availability

 MOCHA HAGoTDI† culture and community 

investment

Cape Air highlights “Key West Express”

† Make Our Customers Happy And Have A Good Time Doing It
10

Cape Air began service in 1989 with a few aircraft...
11

...And one route: Boston – Provincetown 

Provincetown

Boston

Original Cape Air route map

November 1989 schedule
12

Today, Cape Air serves 17 communities in the Northeast...

Northeast route map

Nantucket Martha’s Vineyard

Provincetown

Boston

Hyannis New Bedford

Rockland

Lebanon

Saranac Lake

Rutland

Albany

Ogdensburg

Massena

December 2012 route map (including summer-seasonal service)

White Plains

Providence

Augusta

Bar Harbor
13

...And has developed niches 

in Florida, the Caribbean, Midwest and Micronesia

Florida Keys

Ft. Myers

Key West

Florida

Kirksville

Micronesia

Guam

Rota

Saipan

Anguilla

Nevis

St. Croix

Vieques

Mayaguez

Tortola

St. Thomas

San Juan

Caribbean

Quincy

Ft. Leonard Wood

Cape Girardeau

Marion Owensboro

Kentucky

Missouri

Illinois

St. Louis

Midwest

December 2012 route maps; not to scale 
San Juan

Map inset not to scale

Guam

Rota

Saipan

Micronesia

Caribbean

Florida

Midwest

Northeast

Provincetown

Hyannis

Nantucket

Providence

New Bedford

Martha’s Vineyard

Boston

Augusta

Lebanon Rutland

Saranac Lake Ogdensburg

Massena

White Plains

Albany

Ft. Leonard Wood

Cape Girardeau

Marion

Quincy Kirksville

St. Louis

Key West

Ft. Myers

Mayaguez

Vieques St. Croix

Tortola

St. Thomas

Anguilla

Nevis

Cape Air Routes

December 2012

Including seasonal service

Owensboro

Manhattan

Rockland

Bar Harbor
15

Over more than 20 years in business Cape Air has 

invested in the airline features smaller communities need

Feature Established

Reliability

Tickets sold through 

Expedia, Orbitz, Travelocity

Interline e-ticketing 

with all legacy airlines

Checked luggage transfer

with all legacy airlines

TSA security program
Cape Air is delighted to operate a full-time city ticket office 

in Massena

16
Cape Air aggressively markets Massena’s air service, 

and actively participates in community life

17
18

Cape Air codeshares with American and United...

• Cape Air operates flights in Micronesia as

• Flights in the Caribbean have code 

• Flights in the Midwest operate with the code of 

Codeshare highlights
...And interlines with all of the legacy airlines 

plus JetBlue and Frontier

19
20

Participation in the global distribution system gives Massena 

access to the world and the world access to Massena

Cape Air is sold through:
Cape Air puts Massena on jetblue.com...

21
...And United.com

22
23

Cape Air’s Reservations Call Center

Cape Air has its own reservations call center: 800-CAPE-AIR
CORPORATE UPDATE

24
Cape Air continues to work on development of the next 

generation twin-engine nine-seat airliner

25

Tecnam’s P2012 Traveler
On February 25, 2012 Cape Air became the launch 

customer for ’s new passenger service system

26
Cape Air takes environmental sustainability seriously by 

investing in fuel-saving aircraft technologies and 

powering its offices with solar panels 

27
MASSENA PROPOSAL

Cape Air’s November 2012 Essential Air Service 

28
Cape Air proposes a continuation of Massena’s 

3x daily “through” service to Boston via Albany

• Each flight operates non-stop to Albany, then 

continues on to Boston

• In distribution systems the service is displayed 

as an exquisitely timed Cape Air connection

• Dual hub service retains the intra-state link 

with Albany while providing access to Boston’s 

world-class hub and major metropolitan area

29

Highlights

Massena

Ogdensburg

Albany

Boston

Through service to Boston map
Massena Proposal Economics

30

Drivers

Expenses

Two-year selection, with discounted four-year option

4-Year Discount

Daily RTs 3

Pax/Dpt 4.95

Load Factor 55%

Fare (net) $57.75 

Pax Rev/Dpt $285.87 

Fuel $849,145 

Maintenance $912,148 

Pilots $249,971 

Ownership $263,909 

Stations $452,773 

Operating Fees $118,605 

Marketing $56,154 

General & Admin./Other $249,128 

Operating Expense $3,151,832 

Return of 5% $165,886 

Economic Expense $3,317,718 

Passenger Revenue $1,226,769 

Profit ($2,090,949)

Subsidy Required $2,090,949 

Per Departure $984 

Per Passenger $195 

4-Year Contract Discount $2,039,094 

Per Departure $960 

Cape Air offers (and prefers) a four-year discounted 

contract to improve stability and planning 
31

Cape Air is proud to be Massena’s airline!

 3x daily non-stop service to Boston via Albany

 Ample fleet of back-up aircraft, and Ogdensburg service for operational flexibility

 Full interline connectivity with all the major airlines, including JetBlue, allowing sameticket connections with the world

 Global distribution

Cape Air offers the airline amenities Massena needs:

Cape Air would be honored 

to be reselected to serve Massena
32

Thank you!