# ~YEXPRESSJET. June 2, 2014

Kevin Schlemmer Office ofAviation Analysis US Department ofTransportation 1200 New Jersey Ave SE Washington, D.C. 20590 Proposal for ExpressJetAirlines to ProvideEssential Air Service in Meridian and Laurel/Hattiesburg, Mississippi DearMr. Schlemmer: ExpressJetAirlines welcomesthe opportunity to provide direct air service from Meridian and Laurel/Hattiesburgto Dallas/FortWorth International Airport undertheEssential Air Serviceprogram. Our attachedproposal, submitted as a combinedpackage ofservice to both communities, will provide customers in each community with access to one ofthe world's largest airline networks- a crucial elementto help drive continued economic success in the region. 

### American Airlines' Network Under ourproposal, Meridian and Laurel/Hattiesburgpassengers would be seamlessly connected into American Airlines' global network ofmore than 3,500 daily flights to 270 airports. As the largestmember ofthe oneworld Alliance network, this connectivity with American Airlines would also allowtravelers access to more than 13,800 daily flights to nearly all parts ofthe globe. This ensures it is simple for passengers toplan theirtravel to virtually any destination. 

### Frequency and Schedule As requested in the RFP, we will offer 12 round trip flights per week to each community, including a combination ofdirect and one-stop flights for both communities. On weekdays, this schedulewillprovide a morning departure out ofthe communities, midday round trip and evening arrivals. The morning and evening flights wouldbe available on the weekends. For illustrative purpose, the following is an example ofourproposed flight schedule:
MEl 

### PIB PIB DFW 6:00 6:44 7:04 8:38 DFW 

### PIB PIB MEl MEl DFW 10:00 11:34 11:54 12:38 12:58 14:34 DFW 

### PIB PIB MEl 20:00 21:34 21:54 22:38While the times above would likely change as a schedule is implemented, all flights will be timed to ensure they offerpassengers maximum connection opportunities in Dallas/Fort Worth. This ensures the flights are convenient for business and leisure travelers. And with more than 750 American orAmerican Eagle departures perday, it is easyto getto destinations around the world from Dallas/FortWorth International Airport. AircraftAvailability Each flight from Meridian and Hattiesburg/Laurel will be onboard the 50-seat Canadair Regional Jet 200 (CRJ200). ExpressJet is among the largest domestic operators ofthis proven aircraft type, and these aircraft are already available for service on the route. A flight attendant is available to ensure the safety ofpassengers on all Express]et CRJ aircraft. Each are also equipped with a lavatory, further adding to the comfort and convenience ofourpassengers. Summary Given the connectivity at Dallas/Fort Worth, the well-timed schedule, and reliable equipment, we expectto see strong demand from passengers utilizingthe service and believethis proposal provides the best overall option for air service in the Meridian and Laurel/Hattiesburg communities. Ifawarded, we will also work with each ofthe communities and airportpartners to marketthe service. ExpressJet is excited aboutthe opportunityto provide reliable air serviceto Meridian and Laurel/Hattiesburg, Mississippi. Thankyou for your consideration. Sincerely,

Wade Steel Executive Vice President SkyWest, Inc.ExpressJet Airlines Essential Air Service Bid 2014-2016 2014-2016 2014-2016 6/2/2014 PIB MEl MEl GRAND DFW DFW PIB TOTAL Number ofround-trips perweek 9.5 2.5 9.5 Aircraft type CRJ200 CRJ200 CRJ200 Passenger Revenue Passengers 12,000 13,000 25,000 Average fare $ 90.00 $ 90.00 Revenue $ 1,080,000 $ 1,170,000 $ $ 2,250,000 BlockTime Trip blocktime {minutes) 94 96 44 Total scheduled block time 1,548 416 725 2,688 Total completed block time 98% 1,517 408 710 2,635 RPMS Passengers 12,000 13,000 25,000 Stage length 462 485 67 5,544,000 6,305,000 11,849,000 ASMs Scheduled departures 988 260 988 2,236 Competed departures 98% 968 255 968 2,191 Stage length 462 485 83 Available Seats 50 

### so 50 50 22,822,800 6,305,000 4,100,200 33,228,000

Revenue $ 1,080,000 $ 1,170,000 $ $ 2,250,000 Direct operating expenses $ 4,626,573 $ 1,243,424 $ 2,165,630 $ 8,035,628 Departure related $ 687,576 $ 180,941 $ 687,576 $ 1,556,094 Total expenses $ 5,314,150 $ 1,424,365 $ 2,853,206 $ 9,591,721 Operating income {loss) $ {4,234,150) $ {254,365) $ {2,853,206) $ {7,341,721) 5% profit margin $ 265,707 $ 71,218 $ 142,660 $ 479,586 Subsidy requirement $ 4,499,857 $ 325,583 $ 2,995,867 $ 7,821,307 ExpressJet effective rates per unit Cost pertrip $ 4,377 Cost per passenger $ 384 ExpressJet cost per block hour $ 3,641 Effective Subsidy rate per unit Subsidy pertrip $ 3,569 Subsidy perpassenger $ 313

Load factor 36%