Before the United States Department of Transportation 

January 31, 2014 

Proposal to Provide Essential Air Service at 

McCook, Nebraska 

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

Docket OST-1997-3005

Proposal of SeaPort Airlines, Inc. 

to Provide Essential Air Service at

McCook, Nebraska

By Order 2013-12-10, the U.S. Department of Transportation (“the Department”) requested 

proposals for Essential Air Service (EAS) at McCook, Nebraska no later than January 31, 2014. 

Pursuant to that Order, SeaPort Airlines, Inc. respectfully submits this timely proposal to provide 

subsidized EAS at McCook, Nebraska.

This proposal provides the community of McCook three service pattern options. The requested 

subsidy levels in the proposals, during year one, range from $1,938,697 to $2,706,256.

Shortly after this proposal is docketed, SeaPort Airlines will contact the Airport Manager at 

McCook to schedule a presentation to the community that explains our proposal in detail and to 

answer any questions. In the interim and throughout the carrier selection process, questions 

regarding this proposal should be directed to: 

Timothy Sieber 

Executive Vice President 

SeaPort Airlines, Inc. 

7505 NE Airport Way 

Portland, OR 97218 

(971) 340-1716 

tsieber@seaportair.com
OST-1997-3005 

January 31, 2014 Page | 2 

Discussion of Proposal 

Company Introduction 

SeaPort Airlines, Inc. is a FAA certified scheduled airline based in Portland, Oregon with 30 

years of experience in commercial aviation. In addition to Portland, the company has 

operational bases at Memphis, Tennessee (MEM); San Diego, California (SAN); and Juneau, 

Alaska (JNU). 

Our 221 professionals provide service to 21 cities across nine states with a fleet of 15 aircraft. 

The company’s route map as of the date of this proposal is provided below: 

The primary focus of SeaPort Airlines is to provide affordable and reliable air service to small 

and rural communities across America. Service to eight of the communities on our route map is 

provided under the EAS program: Athens, Georgia; Pendleton, Oregon; El Dorado, Hot Springs, 

and Harrison, Arkansas; Salina, Kansas; Jackson, Tennessee; and Imperial/El Centro, 

California. 

Once SeaPort Airlines is awarded an EAS contract and service is launched, we develop a 

partnership with each community by participating in local events, donation of tickets, on-going 
OST-1997-3005 

January 31, 2014 Page | 3 

dialogue with airport management and community leaders, and presentations to civic clubs and 

other similar organizations. We also have a reputation of being responsive to community needs, 

affording them the opportunity to comment on schedule and fare changes before they become 

effective. 

Our commitment to EAS communities is demonstrated by the fact that in every “Lower 48” 

community that SeaPort serves in the EAS program, we have been re-selected for subsequent 

terms at the end of our first contract period. This includes reselection during 2012 to four-year 

contract renewals (rather than the standard two-years) at both Salina, Kansas and Pendleton, 

Oregon, after both communities voiced their overwhelming support for SeaPort Airlines. 

Similarly, we were selected for a four-year renewal at the Arkansas communities of El Dorado, 

Harrison, and Hot Springs, effective November 1, 2013. 

Aircraft 

SeaPort Airlines’ proposal at McCook contemplates operations with Cessna Caravans which will 

allow us to offer safe, comfortable, and affordable air transportation in a modern and economical 

aircraft. 

Manufactured in Kansas, the “Caravan” was originally designed in the 1980’s to replace an 

aging fleet of piston-powered aircraft, such as the De Havilland Otter and Piper Chieftain. Over 

2,000 Caravans have been built logging a total of almost 15 million flight hours. The Caravan is 

certified for single-pilot operation, however SeaPort operates with both a Captain and First 

Officer.

The large cargo pod on the Caravan allows for more baggage than can be accommodated on 

older piston twins (i.e., Piper Chieftain and Cessna 402) and allows us to segregate passenger 

baggage for security purposes. The cargo pod on the Cessna Caravan has a maximum capacity 

of 111 cubic feet and 1,090 pounds. In comparison, the Piper Chieftain has a maximum capacity 

of 65 cubic feet and 700 pounds in its nose compartment and two wing lockers. 

 
OST-1997-3005 

January 31, 2014 Page | 4 

Scheduling and Hub Options

SeaPort is proposing the three following different service options for consideration:

 Option #1: 12 weekly round-trip to ICT. 

 Option #2: 12 weekly round-trip to OMA 

 Option #3: 12 weekly round-trip to ICT and 6 weekly round-trip to MCI 

Illustrative schedules for each option are below. Final schedules, however, would be established 

in consultation with the community and take into consideration connecting schedules at that 

time with those airlines which SeaPort has interline agreements. 

If selected to provide EAS, SeaPort Airlines will solicit comments from each community on 

proposed flight schedules prior to making them available for sale to the public. As much as 

practical, these comments will be incorporated into the final schedule and factoring any impact 

on flight schedules. 

 

Option #1: 12 weekly roundtrips, McCook - Wichita 

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

McCook to Wichita Wichita to McCook 

5:50am 7:30am ExSun 0 11:30am 1:10pm ExSat 0 

2:30pm 4:10pm ExSat 0 5:00pm 6:40pm ExSun 0 

Option #2: 12 weekly roundtrips, McCook - Omaha 

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

McCook to Omaha Omaha to McCook 

5:45am 7:30am ExSun 0 11:30am 1:15pm ExSat 0 

2:30pm 4:15pm ExSat 0 5:45pm 7:30pm ExSun 0 

Option #3: 12 weekly roundtrips, McCook - Wichita + 6 weekly McCook - Kansas City

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

McCook to Kansas City Kansas City to McCook 

10:45am 12:50pm ExSun 0 1:30pm 3:35pm ExSat 0 

McCook to Wichita Wichita to McCook 

5:50am 7:30am ExSun 0 8:30am 10:10am ExSat 0 

4:00pm 5:40pm ExSat 0 6:00pm 7:40pm ExSun 0 
OST-1997-3005 

January 31, 2014 Page | 5 

Industry Comparison 

The charts below illustrates a comparison between current Great Lakes’ round-trip fares and 

prospective SeaPort fares to six major US cities based on a walk-up scenario. The SeaPort 

prices do not include a blending discount. As exemplified, SeaPort provides savings for the 

community members of McCook. 

LAX ORD DFW DCA IAD

GREAT LAKES $653 $756 $555 $897 $960

SEAPORT $591 $375 $356 $559 $759

$0

$200

$400

$600

$800

$1,000

$1,200

OPTION #1 ICT WALK‐UP RT COMPARISON

LAX JFK ORD DFW DCA IAD

GREAT LAKES $653 $685 $756 $555 $897 $960

SEAPORT $495 $592 $290 $430 $510 $810

$0

$200

$400

$600

$800

$1,000

$1,200

OPTION #2 OMA WALK‐UP RT COMPARISON
OST-1997-3005 

January 31, 2014 Page | 6 

 

LAX JFK ORD DFW DCA IAD

GREAT LAKES $653 $685 $756 $555 $897 $960

SEAPORT $545 $529 $592 $431 $280 $809

$0

$200

$400

$600

$800

$1,000

$1,200

OPTION #3 MCI WALK‐UP RT COMPARISON
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January 31, 2014 Page | 7 

Fares & Pricing 

All of SeaPort’s fares are priced on a one-way basis, including all taxes and fees, and structured 

as follows: 

 The highest price point (branded as “FULL Flex”) provides our customers with total 

flexibility to change their travel plans or, if they choose, obtain a full refund without 

incurring a service charge. 

 The lowest price point (branded as “NO Flex”) targets customers who are certain about 

their travel plans. This fare requires an advance purchase of 14-days, is non-refundable, 

and does not permit any changes from the original booked itinerary. 

 In between, SeaPort offers a range of fares (“FREE 2 Flex” and “Flex 4 FEE”) with price 

points based on how much flexibility a customer has in their travel plans. Except for the 

two highest price points, fares are also subject to capacity controls meaning that the 

farther in advance a reservation is made, the more likely a customer is to get a lower 

fare. 

The table below summarizes the range of proposed ticket prices in each of the markets along 

with the rules and restrictions applicable to each price point. 

FARE BRAND FAMILY FULL Flex FREE 2 Flex Flex 4 FEE No Flex 

Booking Class/Fare Basis Code Y B Q M 

Advance Purchase (days prior to departure) 0 3 3-7 7-14 

Change Fee $0 $0 $50 Not permitted

Refundable Yes No No No 

Published Fares to/from McCook, NE 

Kansas City (Avg Fare = $71.40) $99 $79 $59 $49 

Omaha (Avg Fare = $68.40) $99 $79 $49 $39 

Wichita (Avg Fare = $54.20) $89 $69 $49 $39 

Interline Connectivity & GDS Display 

SeaPort Airlines tickets may be purchased by calling our toll-free reservation number, online at 

www.SeaPortAirlines.com, at any travel agent connected to the major global distribution 

systems (GDS), or all of the major online travel agencies and meta-searchers such as Orbitz, 

Travelocity, Expedia, Kayak, Hipmunk, and CheapoAir. 

The company recently announced that it will migrate to the Amadeus Altea reservation platform 

on March 22, 2014. With this new system, SeaPort will have unsurpassed capability compared 

to other regional airlines with regard to interline ticketing, through baggage check-in, ecommerce, and Inter-Airline Thru Check-In (IATCI). Most importantly, with the new system the 

company will launch its first full interline agreement on March 22, 2014 with a major airline to be 

followed by a second “Big Three” carrier on May 1, 2014. The company is in discussions with 

two other major carriers regarding agreements for implementation later in 2014.

 
OST-1997-3005 

January 31, 2014 Page | 8 

Subsidy Request Calculations 

The following pages contain the calculations that support SeaPort Airlines’ request for subsidy 

to provide EAS at McCook, Nebraska. 

Respectfully submitted, 

Timothy Sieber 

Vice President – Commercial 

SeaPort Airlines, Inc. 

January 31, 2014 

 
OST-1997-3005 

January 31, 2014 Page | 9 

Proforma Data

Operating Projections

Average Sector Length (sm) 245

Scheduled Departures 1,248

Scheduled Block Hours 2,080.0

Projected Completion Factor 98.5%

Projected Completed Departures 1,229

Projected Completed Block Hours 2,048.8

Passenger Projections

Projected Passengers 3,000 

Passengers per Departure 2.4 

Projected Average Fare $54.20

Revenue Passenger Miles (RPMs) 735,000

Available Seat Miles (ASMs) 2,710,562

Projected Load Factor 27.1%

Financial Projections

Revenues

Passenger Ticket Revenues $162,600

Ancillary Revenues $4,065

Total $166,665

Expenses

Flight Operations $194,636

Aircraft Ownership/Lease $288,000

Fuel & Oil $497,858

Sales & Marketing $25,000

Traffic Servicing $357,000

Insurance $32,781

Maintenance $348,296

Sub-Total - Direct $1,743,571

Indirect $261,536

Total Expenses $2,005,107

Projected Operating Profit/(Loss) ($1,838,442)

Subsidy Calculations

Operating Loss $1,838,442

Economic Return @ 5% $100,255

Required Subsidy $1,938,697

Subsidy per Departure $1,577.10

Subsidy per Passenger $646.23

Avg. Enplanements per Operational Day 4.8

12 Weekly RTs: McCook - Wichita

Option #1

Cessna Caravan, Two-Pilots

OST-1997-3005
OST-1997-3005 

January 31, 2014 Page | 10 

Proforma Data

Operating Projections

Average Sector Length (sm) 258

Scheduled Departures 1,248

Scheduled Block Hours 2,184.0

Projected Completion Factor 98.5%

Projected Completed Departures 1,229

Projected Completed Block Hours 2,151.2

Passenger Projections

Projected Passengers 3,100 

Passengers per Departure 2.5 

Projected Average Fare $68.40

Revenue Passenger Miles (RPMs) 799,800

Available Seat Miles (ASMs) 2,854,388

Projected Load Factor 28.0%

Financial Projections

Revenues

Passenger Ticket Revenues $212,040

Ancillary Revenues $5,301

Total $217,341

Expenses

Flight Operations $204,368

Aircraft Ownership/Lease $288,000

Fuel & Oil $551,793

Sales & Marketing $25,000

Traffic Servicing $383,400

Insurance $36,571

Maintenance $365,711

Sub-Total - Direct $1,854,843

Indirect $278,226

Total Expenses $2,133,069

Projected Operating Profit/(Loss) ($1,915,728)

Subsidy Calculations

Operating Loss $1,915,728

Economic Return @ 5% $106,653

Required Subsidy $2,022,382

Subsidy per Departure $1,645.18

Subsidy per Passenger $652.38

Avg. Enplanements per Operational Day 5.0

Cessna Caravan, Two-Pilots

OST-1997-3005

12 Weekly RTs: McCook - Omaha

Option #2
OST-1997-3005 

January 31, 2014 Page | 11 

Proforma Data

Operating Projections

Average Sector Length (sm) 270

Scheduled Departures 1,872

Scheduled Block Hours 3,380.0

Projected Completion Factor 98.5%

Projected Completed Departures 1,844

Projected Completed Block Hours 3,329.3

Passenger Projections

Projected Passengers 4,600 

Passengers per Departure 2.5 

Projected Average Fare $60.11

Revenue Passenger Miles (RPMs) 1,240,467

Available Seat Miles (ASMs) 4,475,194

Projected Load Factor 27.7%

Financial Projections

Revenues

Passenger Ticket Revenues $276,520

Ancillary Revenues $6,913

Total $283,433

Expenses

Flight Operations $316,284

Aircraft Ownership/Lease $288,000

Fuel & Oil $809,020

Sales & Marketing $25,000

Traffic Servicing $345,588

Insurance $53,269

Maintenance $638,773

Sub-Total - Direct $2,475,933

Indirect $371,390

Total Expenses $2,847,323

Projected Operating Profit/(Loss) ($2,563,890)

Subsidy Calculations

Operating Loss $2,563,890

Economic Return @ 5% $142,366

Required Subsidy $2,706,256

Subsidy per Departure $1,467.66

Subsidy per Passenger $588.32

Avg. Enplanements per Operational Day 7.4

Cessna Caravan, Two-Pilots

12 Weekly RTs: McCook - Wichita

OST-1997-3005

6 Weekly RTs: McCook - Kansas City

Option #3