### ROBERT B. KARNS 105 Main Street (701) 278-3747 

# '; '{ ·::.,. l**~** L**~** E-Mail: ,

# ~obereign**~it** 

# ]nc. VP GM BELCOURT ND 58316 

### Dennis J. DeVany, Chief EAS 

### & Domestic Analysis Division, X-53 Office ofAviation Analysis 

## Department ofTransportation .1200 New Jersey Ave, SE Washington, DC 20590 Re: Proposal to Provide Essential Air Service at: ALAMOSA, COLORADO DOCKET DOT-OST-1997-2960 CORTEZ, COLORADO DOCKET DOT-OST-1998-3508 HURON, SOUTH DAKOTA DOCKET DOT-OST-2000-7138 ALPENA, MICHIGAN DOCKET DOT-OST-2009-0300

# /
Dear Mr. DevAny: COMMUNITY AIRLINE DEVELOPMENT

The purpose ofthis proposal is to provide basic air service required 

## byOrder, 2012-4-21, Order: 2012-4- 27, and Order: 2012-3-19. Sovereign Air can be ready to provide EAS service ifselected.

## SOVEREIGN AIR INC. Compensation Annual Requirements for Essential Air Service at 

## AlAMOSA, COLORADO 18 Round Trips a Week- 

### 19 seat Aircraft (Beech 

### 19000orJetstream 

### 32} Non Stop Alamosa to Denver
Departures: Mileagest: Block Hours: Aircraft Passenger Seats: Revenue Passenger Miles: Available Seat Miles: Revenue: Passengers Outher Revenu.e Total Revenues: Expenses: Direct· Indirect Total Expenses: Loss Profit 

### Compensation Annual Required: Passengers Per Leg L/F NOTE: 8.2819383 

### 43.6% 97 %completion rate Denver Hub Propsal 

### # 1



### 15,040 at 

### 2% Passenger Revenue

At Per Bblock Hr.



### 5.0%Total Expenses 

### $99.00

$1,870.00 $1,488,960 $29,779
$2,264,570

$980,467

Schedule will meetthe ALAMOSA airservise requirements (aircraft is commited toALAMOSA- DENVER 

### ONLY This proposal covers thetotal expense required to initiate and operateALAMOSA'S scheduled air serice. Aircraft commited toALAMOSA- DENVER service. Sovereign Air Should be operational 

### 90to 

### 120 days afterfunding which comes with selecting 

### 1,816 179 1,211 19 2,692,160 6,176,216
$1,518,739
$3,245,037

$162,252 $1,888,550

Soveretgn Air. Sovereign Airwill have passenger, (ticketing, baggage and cargo) passengers agreements forA,LAMOSA passengers with most magor aircarries and discount carries as well. With increasing ridership the operating cost perseat goes down reducing ticket pricing. Ifwe can bringthe loadfactor up tp 

### 67% we can add a 

### 30 seatjetstream

### 41 atthe same subsidy rate.

# SOVEREIGN AIR INC. Compensation Annual Requirements for Essential Air Service at 

## CORTEZ, COLORADO 18 Round Trips a Week-19 seat Aircraft (Beech 19000orJetstream 32) Non Stop CORTEZ to Denver
Departures: Mileage st: Block Hours: Aircraft Passenger Seats: Revenue Passenger Miles: Available Seat Miles: Revenue: Passengers Outher Revenue Total Revenues: Expenses: Direct Indirect Total Expenses: Loss Profit 

### Compensation Annual Required: Passengers Per Leg L/F NOTE: 7.6751101 40.4% 97 % completion rate Denver Hub Propsal 

### # 1

13,938 at 2% Passenger Revenue

At Per Bblock Hr.

5.0%Total Expenses $160.00

$1,670.00 $2,230,080 $44,602
$3,366,720**$578,21~-"** ;_. .

Schedule will meetthe CORTEZ air servise requirements (aircraft is commited to CORTEZ - DENVER ONLY) This proposal covers thetotal expense required to initiate and operate CORTEZ'S scheduled air serice. Aircraft commited to CORTEZ- DENVER service. Sovereign Air Should be operational90to 120days afterfunding which comes with selecting 1,816 

### 277 2,016 19 3,860,826 9,557,608
$2,274,682
$3,944,933

$197,247 $1,867,498

Soveretgn Air. Sovereign Airwill have passenger, (ticketing, baggage and cargo) passengers agreementsfor CORTEZ passengers with most magor aircarries and discountcarries as well. With increasing ridership the operating cost perseat goes down reducing ticket pricing. Ifwe can bring the loadfactor uptp 67% we can add a 30seatjetstream 41 atthe same subsidy rate.

## SOVEREIGN AIR INC. Compensation Annual Requirements for Essential Air Service at



## CORTEZ- ALAMOSA COLORADO 23 Round Trips aWeek- 19 seat Aircraft (Beech 1900D orJetstream 32) CORTEZ- ALAMOSA

### to Denver
Departures: Mileagest: Block Hours: Aircraft Passenger Seats: Revenue Passenger Miles: Available Seat Miles: Revenue: CEZ Passengers Outher Revenue Total Revenues: Revenue: 

### ALS Passengers 97 % completion rate Denver Hub Propsal 

### # 2

13,938 at 

### 2% Passenger Revenue 15,040 at Outher Revenue Total Revenues: 

### . , .,**2~** P<!ssenger Revenue Expenses: Direct Indirect Total Expenses: Loss Profit 

### Compensation Annual Required: Passengers Per Leg L/F .,. NOTE: 12.490517 65.7% 

### At Per Bblock Hr.

5.0 %Total Expenses $160.00
$99.00
$1,876.00

Schedule will meetthe CORTEZ and ALAMOSA'S air servise requirements to DENVER. $2,230,080 $44,602 $1,488,960 $29,779 $5,222,784

$998,764 2,320 336 2,784 19 7,024,752 14,810,880
$2,274,682
$1,518,739 $6,221,548

$311,077 $2,739,204

This proposal covers thetotal expense required to initiate and operate CORTEZ'S as well as ALAMOSA'S sch-air serice. Aircraft commited to CORTEZ -ALAMOSA - DENVER service. Sovereign Air Should be operational 90 to 120 days afterfunding which comes with selecting Soveretgn Air. Sovereign Airwill have passenger, (ticketing, baggage and cargo) passengers agreements for CORTEZ and ALAMOSA passengers with most magor aircarries and discount carries as well. With increasing·ridership the operating cost perseat Ifwe can bring the loadfactor up tp 70% we can add a30 seatjetstream 41 atthe same subsidy rate.

# SOVEREIGN AIR INC. Compensation Annual Requirements for Essential Air Service at 

## HORON, SOUTH DAKOTA TWO Round Trips- 19seatAircraft (Beech 1900D orJetstream 32)

Departures: Mileage 

## st: Block Hours: Aircraft Passenger Seats: Revenue Passenger Miles: Available Seat Miles: Revenue: Passengers Outher Revenue Total Revenues: Expenses: Direct Indirect Total Expenses: Loss Profit Compensation Annual Required: 

### Passengers Per Leg 

### l/F NOTE: 2.911723 15.3% 97 %completion rate Minneapolis Hub Propsal 

### # 1

4,123 at 2% Passenger Revenue

At Per Bblock Hr. ·

5.0%Total Expenses $115.00

$1,554.00 . $474,145 $9,483

. $1;833,720 $325,936

Schedule will meetthe HURON airservise requirements (aircraft is commited to HURON 

### ONLY) This proposal covers thetotal expense required to initiateand operate HURON'S scheduled airserice. Aircraft commited to HURON - MINNEAPOLIS service only. Sovereign Air Should be operational90to 120days afterfunding which comes with selecting Soveretgn Air. Sovereign Air will have passenger, (ticketing, baggage and cargo) agreements with 1,416 248 1,180 19 1,022,504 6,672,192
$483,628
$2,159,656

$107,983 

### $1,784,011

most magor aircarries and discount carries as well. With increasing ridershipthe operating cost perseat goes down reducing ticket pricing.

## SOVEREIGN AIR INC. Compensation Annual Requirements for Essential AirService at 

## HORON, SOUTH DAKOTA TWO Round Trips -19 seat Aircraft (Beech 19000orJetstream 32) With a Stop at Brokings SD or Marshall MN
Departures: Mileagest: Block Hours: Aircraft Passenger Seats: Revenue Passenger Miles: Available Seat Miles: Revenue: HON Passengers Outher Revenue Total Revenues: Revenue: BKKor MML Passengers . Outher Revenue Total Revenues: Expenses: Direct Indirect Total Expenses: Loss Profit Compensation Annual Required: 97 %completion rate Minneapolis Hub Propsal # 

### 2

4,123 at 2% Passenger Revenue 3,550 at 2% Passenger Revenue
At Per Bblock Hr.

5.0%Total Expenses Passengers P.er Leg L/F 5.4187853 I 

### 28.5% NOTE: $115.00
$99.00
$1,554.00 $474,145 $9,483 $351,450

$7,029 $1,986,012

$325,936 1,416 260 1,278 19 1,071,980 6,995,040
$483,628
$358,479 $2,311,948

$115,597 $1,585,438

Schedule will meetthe HURON air servise requirements (aircraft is commited to HURON-BROOKINGS orMARSHALl ONLY 

### This proposal covers thetotal expense required to initiate and operate HURON'S scheduled airserice. Aircraft commited to HURON- MINNEAPOLIS service. Sovereign Air Should be operational90to 120 days afterfunding which comes with selecting Soveretgn Air. Sovereign Airwill have passenger, (ticketing, baggage and cargo) agreements with most magor aircarries and discount carries as well. With increasing ridership the operating cost per seat goes down reducing ticket pricing. 28.5 leaves room for more passengers.

# ,, SOVEREIGN AIR INC. Compensation Annual Requirements for Essential AirService at ALPENA MICHIGAN Three Round Trips

### -19 seatAircraft (Beech 

### 19000 orJetstream 

### 32) 97 

### %completion rate Departures: Mileagest: Block Hours: Aircraft Passenger Seats: Revenue Passenger Miles: AvailableSeat Miles: Revenue: Passengers Outher Revenue Total Revenues: Expenses: Direct Indirect Total Expenses: Loss Profit 

### Compensation Annual Required: Passengers Per Leg 

### L/F NOTE: 

### 11.6335 61.2% Detroit Hub Propsal 

### # 1



### 23,965 2% Passenger Revenue

At Per Bblock Hr.



### 5.0%Total Expenses at 

### $99.00

$2,078.00 $2,372,535 $47,451
$2,973,618

$756,936

Schedule will meetthe ALPENA air servise requirements (aircraft is commited to ALPENA 

### ONLY) This proposal covers the total expense required to initiate and operate ALPENA'S scheduled airserice. Aircraft commited to Alpena - Detroit service only. Sovereign Air Should be operational 

### 90 to 

### 120 days afterfunding which comes with selecting Soveretgn Air. Sovereign Airwill have passenger, (ticketing, baggage and cargo) agreements with most magor aircarries and discount carries as well. With increasing ridership more scheduled flights may be added ora 

### 30 seatJetstream that would greatly reduced operating cost per seat reducing ticket pricing. 

### 2,060 198 1,431 19 4,745,070 7,749,720
$2,419,986
$3,730,554

$186,528 $1,497,096