# Sovereign.;Llir, Inc. April 21, 2010 Dennis J. DeVany, Chief EAS 

### & Domestic Analysis Division, X-53 Office ofAviation Analysis Department ofTransportation 1200 NewJersey Ave. SE Washington, DC 20590 Re: Proposal to Provide Essential Air Service at: Kirksville, MO (IRK) to Kansas City, MO (MCI)

Dear Mr. DeVany: In response to Order2010-3-31, Sovereign Air, Inc. offers thefollowing proposal:DOT-OST-1997-2515

Sovereign Air, Inc. (SAl) is planning to use the Cessna 401 as its primary aircraftforthis Essential Air Service route. Itwill be configured with six passenger seats. A Beech Baron will be a back-up plane. Sovereign Air is proposing the aircraftforthe exclusive use (no up-line ordown-line service) ofthe proposed EAS route. Ourflights will service onlythe EAS city and the indicated Hub. Sovereign Air believes thatwith good schedules, proper pricing and a recovering economy, the load factors will likely increase in this market. SAl will base its aircraft, crews and maintenance personnel, banking and purchase all fuel in IRK. This will help keep the EAS monies in the Kirksville community. SAl will have baggage and ticket agreements with the majorair carriers in Kansas City (MCI). SAl will have cargo agreements for both domestic and international airfreight movements. SAl will utilize the freight terminal at MCI forcargo receiving and dispensing. SAl has been HAZMAT approved and will be working in conjunction with hospitalsto expedite various HAZMAT materials thatthey need to transport. SAl's goal is to work hand-in-hand with IRKto reduce the need for EAS subsidies within the nextfourto six years. Complaints and problems will be handled atthe IRK and MCI stations. SAl's station manual includes a customerservice program with a communications program so that passengers can communicate directlywith both station and executive management levels. Sovereign Air is currently in the process ofacquiring its Scheduled Service Authority and anticipates being able to startthis Essential Air Service by August 1st. Sovereign Airwill be fully integrated intothe Global Distribution System (GDS) in conjunction with Worldspan. SAl is nottied tojust one airline, allowing Sovereign Air bettervisibility in the various reservation systems. Passengers will have a broad range ofchannels through which to purchase tickets,

### including all airline reservation systems and travel agencies. Customers will be able to call our reservation office orvisit ourwebsite to bookflights. Passengers can also purchase tickets and make reservations atourticket counters. SAl's schedule will be developed by the IRK community and SAl to reduce layovertimes in MCI and provide the best possible arrival and departure times forthe travelling public. As such, the following schedule will likely be adjusted:

Proposed Schedule 2 round trips daily between IRK and 

### Mel IRK Departure MCI Arrival MCI Departure IRKArrival 

### 6:00 6:40 9:00 9:40 16:00 16:40 19:00 19:40Sovereign Air, Inc. Annual Compensation Requirementfor Essential Air Service for IRK-MCI

AircraftType Available Seats Per Departure Passengers Per Trip

Block Hours Departures Total Passengers Average Fare Revenue Passenger Miles Available Seat Miles Passenger Revenue Other Rev. @ .6 of pax. Rev. 

### %

Total Revenue Aircraft and Hull Insurance Fuel and Oil Flying Operations Other Direct Costs Maintenance

Total Direct Costs Total Indirect Costs Total Operating Expenses Operating Loss Profit @ 5%

Completion Rate Subsidy per leg Load Factor Annual Compensation Requirement Monthly Compensation Requirement 2rt M-F
Cessna 401 

### 6 1.9

605 1,009 1,877 $150.00 239,599 772,640 $281,550.00 $1,689.30 $283,239.30

$12,000.00 $72,633.60 $55,685.76 $83,001.88 $14,627.60 $237,948.84 $385,742.00 $623,690.84 $340,451.54

$31,184.54 $371,636.08

$30,969.67 97% $368.39

31.0%Customersafety and service are Priority One with SAL Sovereign Air looksforward to providing Essential Air Service to Kirksville, MO.

Sincerely,

Jon Payne, CFO Sovereign Air, Inc.