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 of Aviation Analysis 

Department of Transportation 

.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 of this proposal is to provide basic air service required by Order, 2012-4-21, Order: 2012-4-

27, and Order: 2012-3-19. 

Sovereign Air can be ready to provide EAS service if selected. 
SOVEREIGN AIR INC. 

Compensation Annual Requirements for Essential Air Service at 

AlAMOSA, COLORADO 

18 Round Trips a Week- 19 seat Aircraft (Beech 19000 or Jetstream 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 meet the ALAMOSA air servise requirements (aircraft is commited to ALAMOSA- DENVER ONLY 

This proposal covers the total expense required to initiate and operate ALAMOSA'S scheduled air serice. 

Aircraft commited to ALAMOSA- DENVER service. 

Sovereign Air Should be operational 90 to 120 days after funding 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 Air will have passenger, (ticketing, baggage and cargo) passengers agreements for A,LAMOSA 

passengers with most magor aircarries and discount carries as well. With increasing ridership the operating cost per seat 

goes down reducing ticket pricing. 

If we can bring the loadfactor up tp 67% we can add a 30 seat jetstream 41 at the 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 19000 or Jetstream 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 meet the CORTEZ air servise requirements (aircraft is commited to CORTEZ - DENVER ONLY) 

This proposal covers the total expense required to initiate and operate CORTEZ'S scheduled air serice. 

Aircraft commited to CORTEZ- DENVER service. 

Sovereign Air Should be operational90 to 120 days after funding 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 Air will have passenger, (ticketing, baggage and cargo) passengers agreements for CORTEZ 

passengers with most magor aircarries and discount carries as well. With increasing ridership the operating cost per seat 

goes down reducing ticket pricing. 

If we can bring the loadfactor up tp 67% we can add a 30 seat jetstream 41 at the same subsidy rate. 
SOVEREIGN AIR INC. 

Compensation Annual Requirements for Essential Air Service at 

CORTEZ- ALAMOSA COLORADO 

23 Round Trips a Week- 19 seat Aircraft (Beech 1900D or Jetstream 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 meet the 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 the total 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 after funding which comes with selecting 

Soveretgn Air. Sovereign Air will 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 per seat 

If we can bring the loadfactor up tp 70% we can add a 30 seat jetstream 41 at the same subsidy rate. 
SOVEREIGN AIR INC. 

Compensation Annual Requirements for Essential Air Service at 

HORON, SOUTH DAKOTA 

TWO Round Trips- 19 seat Aircraft (Beech 1900D or Jetstream 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 meet the HURON air servise requirements (aircraft is commited to HURON ONLY) 

This proposal covers the total expense required to initiate and operate HURON'S scheduled air serice. 

Aircraft commited to HURON - MINNEAPOLIS service only. 

Sovereign Air Should be operational90 to 120 days after funding 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 ridership the operating cost per seat goes down 

reducing ticket pricing. 
SOVEREIGN AIR INC. 

Compensation Annual Requirements for Essential Air Service at 

HORON, SOUTH DAKOTA 

TWO Round Trips -19 seat Aircraft (Beech 19000 or Jetstream 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 meet the HURON air servise requirements (aircraft is commited to HURON-BROOKINGS or MARSHALl ONLY 

This proposal covers the total expense required to initiate and operate HURON'S scheduled air serice. 

Aircraft commited to HURON- MINNEAPOLIS service. 

Sovereign Air Should be operational90 to 120 days after funding which comes with selecting 

Soveretgn Air. Sovereign Air will 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 Air Service at 

ALPENA MICHIGAN 

Three Round Trips -19 seat Aircraft (Beech 19000 or Jetstream 32) 

97 % completion rate 

Departures: 

Mileagest: 

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: 

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 meet the ALPENA air servise requirements (aircraft is commited to ALPENA ONLY) 

This proposal covers the total expense required to initiate and operate ALPENA'S scheduled air serice. 

Aircraft commited to Alpena - Detroit service only. 

Sovereign Air Should be operational 90 to 120 days after funding which comes with selecting 

Soveretgn Air. Sovereign Air will 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 or a 30 seat Jetstream 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