# Proposal to Provide Essential Air Service at

Muscle Shoals, Alabama

Docket DOT

- OST

- 2000

- 7856



# Greenville, Mississippi

Docket DOT

- OST

- 2008

- 0209



# Tupelo, Mississippi

Docket DOT

- OST

- 2009

- 0305



## June 2, 2014

Direct Inquiries Regarding this Proposal to:

Shane Storz, CEO

Air Choice One Airlines

12300 Old Tesson Road, Suite 200 F, Saint Louis, MO 63128

Phone: (866) 435

- 9847 Fax : (314) 843

- 8527 E

- mail: shane@airchoiceone.com



# Multi

- Aero Inc.

d/b/a

Air Choice One

# Our Commitment

Leads to Success

06/02/2014 

### Air Choice One acknowledges the difficult circumstance that has recently befallen the communities of 

## Muscle

Shoals, AL; Greenville, MS; and Tupelo, MS . We realize the efforts of a dedicated air carrier will be critical

to the success of these communities. Air Choice One has proven to be a consistently reliable air carrier

throughout the Company’s history and in our service to the EAS program. We further acknowledge the urgent

need of 

## Muscle Shoals, Greenville, and Tupelo to reestablish a reliable relationship with an EAS service

provider as quickly and efficiently as possible and if selected fully intend to meet this need.

Air Choice One has noted other challenges in the communities of Muscle Shoals and Greenville similar to those

we have recently overcome in Jonesboro, Arkansas . Throughout our Jonesboro service period Air Choice One

has worked in partnership with the community of Jonesboro to reestablish their standing within the Essential Air

Service Program. In less than 2 years Jonesboro has gone from potential expulsion from the EAS program to

completing a successful probationary period supported by Air Choice One. This turnaround resulted in a

contract extension and secured Jonesboro’s position within the EAS program for their next contract period.

We are proud of the success we have achieved together with all of our EAS communities and feel we can apply

the action plans utilized to achieve similar results in Muscle Shoals, Greenville, and Tupelo. We welcome the

opportunity to provide your communities with the highest level of service in the upcoming contract period.

# Our Commitment

Leads to Success

06/02/2014 

### AVERAGE ENPLANEMENTS: At the

2011 RFP, Jonesboro was averaging

1.5 enplanements per day. For the



### year ending March, 2013 Jonesboro

averaged 16.5 daily enplanements

exceeding the DOT minimum of 10

per day by 65 %.

By improving service reliability,

introducing each community to a new

hub, offering VIP travel at a



### reasonable price, and implementation

of an aggressive marketing plan we

believe we will achieve similar results

in the communities of Muscle Shoals,

Greenville, and Tupelo.

AVERAGE PER PASSENGER SUBSIDY: Also in the 2011 RFP, Jonesboro’s average per passenger subsidy for the 12

months ended January, 2011, was $ 840. For the period ending September, 2013, the average had been reduced to $177



### representing an enormous improvement.

Muscle Shoals, Greenville, and Tupelo have all reported year over year declines in most recent enplanement numbers.

Air Choice One seeks the opportunity to recapture the potential we believe still exists and rebuild these previously proven

customer bases.

# Our Commitment

Leads to Success

06/02/2014 

# NASHVILLE INTERNATIONAL AIRPORT

- GREAT CONNECTIONS TO LOW PRICE CARRIERS!

Nashville International At A Glance

• 15 Airlines Serving 10 Million Passengers (FY 2013)

• 392 Average Daily Arrivals and Departures Operate from 45 Air Carrier Gates

• Non

- stop Air S ervice to 49 Markets in the United States, Canada, and Mexico

# Our Commitment

Leads to Success

06/02/2014 

# AIR CHOICE ONE WILL BUILD ON MEMPHIS INTERNATIONAL'S MOMENTUM!

Memphis International At A Glance



### • Complete Terminal M odernization U nderway (2014)

• 21 Airlines Serving Nearly 4.6 Million Passengers (2013)

• Memphis is currently #2 busiest cargo airport in the world

behind Hong Kong. Memphis remains #1 in the U.S

.

# Our Fleet

Cessna Grand Caravan

06/02/2014

Exceptional Cargo Space *Well

- Appointed Cabin

Proven Reliability

*Air Choice One is open to discussions related to interior configurations and will do our best to accommodate preferences whe nev er possible.

### Air Choice One reinvests in our served communities and will grow ridership

• TRADITIONAL MEDIA

• Radio

- Talk Shows/Commercials



### • TV Commercials and Event Coverage

• Print

- Newspaper/Magazines

• Billboards

• Web Based

– E

- Blasts

– Monthly E

- Mail Promotions

– City Representation on Our Website

• SOCIAL MEDIA

• Twitter, Facebook, Linked In

• INTERACTIVE MEDIA

• Contests

• You Tube/Videos

• EVENTS AND SPONSORSHIPS



### • Charitable Support to Resident Organizations and Local Chapters of National Non

- Profit Organizations

• Business/Community Support through Golf Tournaments, Business Luncheons, Air Shows, etc.

• COMMUNITY TICKET OFFICE 

# Market Growth Strategy

–

Marketing Investment

06/02/2014

# Market Growth Strategy

– Pricing &

Accessibility

Air Choice One offers the right price for the right ticket at the right time and offers many convenient ways to book your tra vel through

our website, toll

- free calling, local travel agencies, and online booking sites

06/02/2014 

### • BUILDING & SUSTAINING RIDERSHIP

THROUGH PRICE

• We work hard to establish a winning

price point through targeted market

analysis. We take all factors into

consideration and enter the market with

low fares.

• Introductory Fares Peak Interest and



### Drive Passengers to Air Choice One

and Your Airport

• On

- Going Affordable Fares = Full

Planes!

• We believe consistent pricing builds

consumer confidence

• CONVENIENT OPTIONS MAKE BOOKING



### TRAVEL A SNAP!

• www.airchoiceone.com

• Call us at 1

- 866

- I

- FLY

- VIP

• Visit your local Travel Agent

• Find us on Travelocity, Expedia,

Priceline, Kayak and more

# Options Index

Combined Service

– Muscle Shoals, AL; Greenville, MS; and Tupelo, MS

06/02/2014 *Requires selection by all communities. Optional 4 Year Service Discounted in Years 3

- 4. OPTION C1*

– COMBINED SERVICE

, 2 YEAR SERVICE OR 4 YEAR DISCOUNTED SERVICE

– BNA/MEM

CESSNA GRAND CARAVAN OR PIPER NAVAJO

Muscle Shoals, Alabama

Cessna Grand Caravan or Piper Navajo MSL

– BNA 18 Round Trips Per Week

Greenville, Mississippi

Cessna Grand Caravan or Piper Navajo GLH

– MEM 18 Round Trips Per Week

Tupelo, Mississippi

– Dual Hub

Cessna Grand Caravan or Piper Navajo TUP

– BNA

TUP

– MEM 12 Round Trips Per Week

18 Round Trips Per Week

OPTION C2*

– COMBINED SERVICE

, 2 YEAR SERVICE OR 4 YEAR DISCOUNTED SERVICE

– BNA/MEM

CESSNA GRAND CARAVAN OR PIPER NAVAJO

Muscle Shoals, Alabama

Cessna Grand Caravan or Piper Navajo MSL

– BNA 24 Round Trips Per Week

Greenville, Mississippi

Cessna Grand Caravan or Piper Navajo GLH

– MEM 24 Round Trips Per Week

Tupelo, Mississippi

– Dual Hub

Cessna Grand Caravan or Piper Navajo TUP

– BNA

TUP

– MEM 18 Round Trips Per Week

18 Round Trips Per Week

### Combined Service

– Muscle Shoals, AL; Greenville, MS; and Tupelo

, MS



### Cessna Grand Caravan or Piper Navajo

*Option C1:

2 Year Service or 4 Year Discounted Service (Discounted in Years 3

- 4)

MSL/18, GLH/18, & TUP/30 Total Round Trips Per Week

– Based on 98% Completion Rate



### Combined Service

– MSL/GLH/TUP

– Nashville/Memphis International Airports

– Caravan or Navajo

Operation Revenues

MSL

- BNA/GLH

- MEM/TUP

- BNA/TUP

- MEM Revenues $1,715,320



### Other Revenues 17,153

Total Operating Revenues $1,732,473

Direct Operating Expenses

Flying Operations $ 762,590

Fuel and Oil 1,433,840

Maintenance 1,188,492



### Aircraft Leases 1,767,500

Total Direct $5,152,422

Marketing 150,000

Indirect 3,074,689

Total Operating Expenses $8,377,111

Operating Loss $6,644,638



### Profit Element (5% total Oper . Exp.) 418,856

Compensation Required $7,063,494

Compensation per PAX $209

Compensation per Departure $1,168 # Passengers: 33,730

Average Fare MSL

- BNA, GLH

- MEM, or TUP

- MEM: $49.00

Average Fare TUP

- BNA: $59.00

Departures : 6,047

Block Hours: 4,391

Revenue Passenger Miles: 3,993,370

Available Seat Miles: 7,149,280

06/02/2014 DISCOUNTED SUBSIDY

$6,992,859/Year

$1,156/Departure DISCOUNTED FOR YEARS 3

- 4

Representative Schedule

MSL

– BNA 18 RT Per Week

Please See Option M1

GLH

– MEM 18 RT Per Week

Please See Option G1

TUP

-- BNA 12 RT Per Week

Please See Option T2

TUP

-- MEM 18 RT Per Week

Please See Option T2

*Requires selection by all communities

### Combined Service

– Muscle Shoals, AL; Greenville, MS; and Tupelo

, MS



### Cessna Grand Caravan or Piper Navajo

*Option C2:

2 Year Service or 4 Year Discounted Service (Discounted in Years 3

- 4)

MSL/24, GLH/24, & TUP/36 Total Round Trips Per Week

– Based on 98% Completion Rate



### Combined Service

– MSL/GLH/TUP

– Nashville/Memphis International Airports

– Caravan or Navajo

Operation Revenues

MSL

- BNA/GLH

- MEM/TUP

- BNA/TUP

- MEM Revenues $2,143,000



### Other Revenues 21,430

Total Operating Revenues $2,164,430

Direct Operating Expenses

Flying Operations $ 970,570

Fuel and Oil 1,863,133

Maintenance 1,544,328



### Aircraft Leases 1,767,500

Total Direct $6,145,531

Marketing 150,000

Indirect 3,277,740

Total Operating Expenses $9,573,271

Operating Loss $7,408,841



### Profit Element (5% total Oper . Exp.) 478,664

Compensation Required $7,887,505

Compensation per PAX $188

Compensation per Departure $1,023 # Passengers: 42,000

Average Fare MSL

- BNA, GLH

- MEM, or TUP

- MEM: $49.00

Average Fare TUP

- BNA: $59.00

Departures : 7,712

Block Hours: 5,705

Revenue Passenger Miles: 5,093,500

Available Seat Miles: 9,372,767

06/02/2014 DISCOUNTED SUBSIDY

$7,808,630/Year

$1,012/Departure DISCOUNTED FOR YEARS 3

- 4

Representative Schedule

MSL

– BNA 24 RT Per Week

Please See Option M2

GLH

– MEM 24 RT Per Week

Please See Option G2

TUP

-- BNA 18 RT Per Week

Please See Option T4

TUP

-- MEM 18 RT Per Week

Please See Option T4

*Requires selection by all communities

# Options Index

Muscle Shoals, Alabama

06/02/2014 

### OPTION M1

, 2 YEAR OR 4 YEAR SERVICE

– BNA

CESSNA GRAND CARAVAN OR PIPER NAVAJO

Muscle Shoals, Alabama

– Nashville International Airport

Cessna Grand Caravan or Piper Navajo 18 Round Trips Per Week

FOR ADDITIONAL OPTIONS C1* & C2*

– SEE COMBINED SERVICE OPTIONS INDEX

*Requires selection by all communities 

### OPTION M2

, 2 YEAR or 4 YEAR SERVICE

– BNA

CESSNA GRAND CARAVAN OR PIPER NAVAJO

Muscle Shoals, Alabama

– Nashville International Airport

Cessna Grand Caravan or Piper Navajo Year 1

– 18 Round Trips Per Week

Years 2

- 4

– 24 Round Trips Per Week

## Muscle Shoals, Alabama

– Cessna Grand Caravan or Piper Navajo

Option M1: 2 Year Service or 4 Year Service

18 Total Round Trips Per Week

– Based on 98% Completion Rate

Muscle Shoals, Alabama

– Nashville International Airport

– Caravan or Navajo

Year 1 Years 2

- 4

Operation Revenues

MSL

- BNA Revenues $ 416,500 $ 539,000

Other Revenues 4,165 5,390

Total Operating Revenues $ 420,665 $ 544,390

Direct Operating Expenses

Flying Operations $ 207,979 $ 207,979

Fuel and Oil 361,137 361,137

Maintenance 369,873 369,873

Aircraft Leases 479,750 479,750

Total Direct $1,418,739 $1,418,739

Marketing 50,000 50,000

Indirect 1,107,126 1,107,126

Total Operating Expenses $2,575,865 $2,575,865

Operating Loss $2,155,200 $2,031,475

Profit Element (5% total Oper . Exp.) 128,793 128,793

Compensation Required $2,283,993 $2,160,268

Compensation per PAX $269 $196

Compensation per Departure $1,241 $ 1,174 Year 1

# Passengers: 8,500

Average Fare: $49.00

Departures: 1,840

Block Hours: 1,127

Revenue Passenger Miles: 875,500

Available Seat Miles: 1,700,637

06/02/2014 Representative Schedule

Departure Arrival

MSL 8:00 AM BNA 8:45 AM

BNA 9:30 AM MSL 10:15 AM

MSL 12:00 PM BNA 12:45 PM

BNA 1:30 PM MSL 2:15 PM

MSL 4:00 PM BNA 4:45 PM

BNA 6:00 PM MSL 6:45 PM

Years 2

- 4

# Passengers: 11,000

Average Fare: $49.00

Departures: 1,840

Block Hours: 1,127

Revenue Passenger Miles: 1,133,000

Available Seat Miles: 1,700,637

## Muscle Shoals, Alabama

– Cessna Grand Caravan or Piper Navajo

Option M2: 2 Year Service or 4 Year Service

18/Year 1 and 24/Years 2

- 4 Total Round Trips Per Week

Based on 98% Completion Rate

Muscle Shoals, Alabama

– Nashville International Airport

– Caravan or Navajo

Year 1

# Passengers: 8,500

Average Fare: $49.00

Departures: 1,840

Block Hours: 1,127

Revenue Passenger Miles: 875,500

Available Seat Miles: 1,700,637

06/02/2014 Years 2

- 4

# Passengers: 12,500

Average Fare: $49.00

Departures: 2,454

Block Hours: 1,502

Revenue Passenger Miles: 1,287,500

Available Seat Miles: 2,267,516

Representative Schedule

Departure Arrival

MSL 7:00 AM BNA 7:45 AM

BNA 8:15 AM MSL 9:00 AM

MSL 10:30 AM BNA 11:15 AM

BNA 11:45 AM MSL 12:30 PM

Years

2 - 4 Only MSL 3:00 PM BNA 3:45 PM

BNA 4:15 PM MSL 5:00 PM

MSL 5:30 PM BNA 6:15 PM

BNA 7:00 PM MSL 7:45 PM Year 1 Years 2

- 4

Operation Revenues

MSL

- BNA Revenues $ 416,500 $ 612,500

Other Revenues 4,165 6,125

Total Operating Revenues $ 420,665 $ 618,625

Direct Operating Expenses

Flying Operations $ 207,979 $ 277,306

Fuel and Oil 361,137 481,517

Maintenance 369,873 493,162

Aircraft Leases 479,750 479,750

Total Direct $1,418,739 $1,731,735

Marketing 50,000 50,000

Indirect 1,107,126 1,120,700

Total Operating Expenses $2,575,865 $2,902,435

Operating Loss $2,155,200 $2,283,810

Profit Element (5% total Oper . Exp.) 128,793 145,122

Compensation Required $2,283,993 $2,428,932

Compensation per PAX $269 $194

Compensation per Departure $1,241 $990

# Options Index

Greenville, Mississippi

06/02/2014 

### OPTION G1

, 2 YEAR OR 4 YEAR SERVICE

– MEM

CESSNA GRAND CARAVAN OR PIPER NAVAJO

Greenville, Mississippi

– Memphis International Airport

Cessna Grand Caravan or Piper Navajo 18 Round Trips Per Week

FOR ADDITIONAL OPTIONS C1* & C2*

– SEE COMBINED SERVICE OPTIONS INDEX

*Requires selection by all communities 

### OPTION G2

, 2 YEAR or 4 YEAR SERVICE

– MEM

CESSNA GRAND CARAVAN OR PIPER NAVAJO

Greenville, Mississippi

– Memphis International Airport

Cessna Grand Caravan or Piper Navajo Year 1

– 18 Round Trips Per Week

Years 2

- 4

– 24 Round Trips Per Week

## Greenville, Mississippi

– Cessna Grand Caravan or Piper Navajo

Option G1: 2 Year Service or 4 Year Service

18 Total Round Trips Per Week

– Based on 98% Completion Rate

Greenville, Mississippi

– Memphis International Airport

– Caravan or Navajo

Year 1 Year 2

- 4

Operation Revenues

GLH

- MEM Revenues $ 426,300 $ 548,800

Other Revenues 0 0

Total Operating Revenues $ 426,300 $ 548,800

Direct Operating Expenses

Flying Operations $ 228,777 $ 228,777

Fuel and Oil 366,852 366,852

Maintenance 345,745 345,745

Aircraft Leases 479,750 479,750

Total Direct $1,421,124 $1,421,124

Marketing 50,000 50,000

Indirect 1,131,301 1,119,344

Total Operating Expenses $2,602,425 $2,590,468

Operating Loss $2,176,125 $2,041,668

Profit Element (5% total Oper . Exp.) 130,121 129,523

Compensation Required $2,306,246 $2,171,191

Compensation per PAX $265 $194

Compensation per Departure $1,253 $ 1,180 Year 1

# Passengers: 8,700

Average Fare: $49.00

Departures: 1,840

Block Hours: 1,104

Revenue Passenger Miles: 1,061,400

Available Seat Miles: 2,014,347

06/02/2014 Representative Schedule

Departure Arrival

GLH 8:00 AM MEM 8:45 AM

MEM 9:30 AM GLH 10:15 AM

GLH 12:00 PM MEM 12:45 PM

MEM 1:30 PM GLH 2:15 PM

GLH 4:00 PM MEM 4:45 PM

MEM 5:30 PM GLH 6:15 PM

Years 2

- 4

# Passengers: 11,200

Average Fare: $49.00

Departures: 1,840

Block Hours: 1,104

Revenue Passenger Miles: 1,960,000

Available Seat Miles: 2,889,432

## Greenville, Mississippi

– Cessna Grand Caravan or Piper Navajo

Option G2: 2 Year Service or 4 Year Service

18/Year 1 and 24/Years 2

- 4 Total Round Trips Per Week

Based on 98% Completion Rate

Greenville, Mississippi

– Memphis International Airport

– Caravan or Navajo

06/02/2014 Representative Schedule

Departure Arrival

GLH 7:00 AM MEM 7:45 AM

MEM 8:15 AM GLH 9:00 AM

GLH 10:30 AM MEM 11:15 AM

MEM 11:45 AM GLH 12:30 PM

Years

2 - 4 Only GLH 3:00 PM MEM 3:45 PM

MEM 4:15 PM GLH 5:00 PM

GLH 5:30 PM MEM 6:15 PM

MEM 7:00 PM GLH 7:45 PM Year 1 Year 2

- 4

Operation Revenues

GLH

- MEM Revenues $ 426,300 $ 623,525

Other Revenues 0 0

Total Operating Revenues $ 426,300 $ 623,525

Direct Operating Expenses

Flying Operations $ 228,777 $ 305,036

Fuel and Oil 366,852 489,136

Maintenance 345,745 460,994

Aircraft Leases 479,750 479,750

Total Direct $1,421,124 $1,734,916

Marketing 50,000 50,000

Indirect 1,131,301 1,226,608

Total Operating Expenses $2,602,425 $3,011,524

Operating Loss $2,176,125 $2,387,999

Profit Element (5% total Oper . Exp.) 130,121 150,576

Compensation Required $2,306,246 $2,538,575

Compensation per PAX $265 $199

Compensation per Departure $1,253 $ 1,034 Year 1

# Passengers: 8,700

Average Fare: $49.00

Departures: 1,840

Block Hours: 1,104

Revenue Passenger Miles: 1,061,400

Available Seat Miles: 2,014,347

Years 2

- 4

# Passengers: 12,725

Average Fare: $49.00

Departures: 2,454

Block Hours: 1,472

Revenue Passenger Miles: 2,226,875

Available Seat Miles: 3,852,576

# Options Index

Tupelo, Mississippi

06/02/2014 

### OPTION T2

, 2 YEAR SERVICE OR 4 YEAR DISCOUNTED SERVICE

– DUAL HUB

- BNA and MEM

CESSNA GRAND CARAVAN OR PIPER NAVAJO

Tupelo, Mississippi

– Dual Hubs

– Nashville and Memphis International Airports

Cessna Grand Caravan or Piper Navajo BNA/12 RT and MEM/18 RT Per Week 30 Total Round Trips Per Week

FOR ADDITIONAL OPTIONS C1* & C2*

– SEE COMBINED SERVICE OPTIONS INDEX

*Requires selection by all communities 

### OPTION T4

, 2 YEAR SERVICE OR 4 YEAR DISCOUNTED SERVICE

– DUAL HUB

- BNA and MEM

CESSNA GRAND CARAVAN OR PIPER NAVAJO

Tupelo, Mississippi

– Dual Hubs

– Nashville and Memphis International Airports

Cessna Grand Caravan or Piper Navajo BNA/18 RT and MEM/18 RT Per Week 36 Total Round Trips Per Week 

### OPTION T1

, 2 YEAR SERVICE OR 4 YEAR DISCOUNTED SERVICE

– MEM

CESSNA GRAND CARAVAN OR PIPER NAVAJO

Tupelo, Mississippi

– Memphis International Airport

Cessna Grand Caravan or Piper Navajo 30 Round Trips Per Week

OPTION T3

, 2 YEAR or 4 YEAR SERVICE

– MEM

CESSNA GRAND CARAVAN OR PIPER NAVAJO

Tupelo, Mississippi

– Memphis International Airport

Cessna Grand Caravan or Piper Navajo 36 Round Trips Per Week

## Tupelo, Mississippi

– Cessna Grand Caravan or Piper Navajo

Option T1:

2 Year Service or 4 Year Discounted Service (Discounted in Years 3

- 4)

30 Total Round Trips Per Week

– Based on 98% Completion Rate

Tupelo, Mississippi

– Memphis International Airport

– Caravan or Navajo

# Passengers: 14,600

Average Fare: $49.00

Departures: 3,067

Block Hours: 1,578

Revenue Passenger Miles: 1,270,200

Available Seat Miles: 2,394,101

06/02/2014 Representative Schedule

Departure Arrival

TUP 6:00 AM MEM 6:30 AM

MEM 7:10 AM TUP 7:40 AM

TUP 8:30 AM MEM 9:00 AM

MEM 12:10 PM TUP 12:40 PM

TUP 1:30 PM MEM 2:00 PM

MEM 2:40 PM TUP 3:10 PM

TUP 4:00 PM MEM 4:30 PM

MEM 5:10 PM TUP 5:40 PM

TUP 6:30 PM MEM 7:00 PM

MEM 7:40 PM TUP 8:10 PM

DISCOUNTED SUBSIDY

$2,873,185/Year

$937/Departure DISCOUNTED FOR YEARS 3

- 4 

### Operation Revenues



### TUP

- MEM Revenues $ 715,400

Other Revenues 7,154

Total Operating Revenues $ 722,554

Direct Operating Expenses

Flying Operations $ 346,632

Fuel and Oil 505,592

Maintenance 477,989

Aircraft Leases 515,100

Total Direct $1,845,313

Marketing 50,000

Indirect 1,556,840

Total Operating Expenses $3,452,153

Operating Loss $2,729,599

Profit Element (5% total Oper . Exp.) 172,608

Compensation Required $2,902,207

Compensation per PAX $199

Compensation per Departure $946

## Tupelo, Mississippi

– Cessna Grand Caravan or Piper Navajo

Option T2: Dual Hub Service

2 Year Service or 4 Year Discounted Service (Discounted in Years 3

- 4)

30 Total Round Trips Per Week

– Based on 98% Completion Rate

Tupelo, Mississippi

– Memphis International Airport

– Caravan or Navajo

Operation Revenues



### TUP

- BNA/TUP

- MEM Revenues $ 768,450

Other Revenues 7,685

Total Operating Revenues $ 776,135

Direct Operating Expenses

Flying Operations $ 411,626

Fuel and Oil 717,128

Maintenance 621,477

Aircraft Leases 515,100

Total Direct $2,265,331

Marketing 50,000

Indirect 1,791,638

Total Operating Expenses $4,106,969

Operating Loss $3,330,834

Profit Element (5% total Oper . Exp.) 205,348

Compensation Required $3,536,182

Compensation per PAX $243

Compensation per Departure $1,165

06/02/2014 Representative Schedule

– BNA

Departure Arrival

TUP 7:00 AM BNA 8:10 AM

BNA 9:00 AM TUP 10:10 AM

TUP 4:35 PM BNA 5:45 PM

BNA 7:00 PM TUP 8:10 PM

Representative Schedule

– MEM

Departure Arrival

TUP 8:00 AM MEM 8:30 AM

MEM 9:40 AM TUP 10:10 AM

TUP 12:00 PM MEM 12:30 PM

MEM 1:40 PM TUP 2:10 PM

TUP 4:00 PM MEM 4:30 PM

MEM 6:00 PM TUP 6:30 PM

DISCOUNTED SUBSIDY

$3,500,820/Year

$1,153/Departure DISCOUNTED FOR YEARS 3

- 4

# Passengers: 14,550

Average Fare TUP

- BNA: $59.00

Average Fare TUP

- MEM: $49.00

Departures : 3,035

Block Hours: 2,238

Revenue Passenger Miles: 1,754,250

Available Seat Miles: 3,299,119

## Tupelo, Mississippi

– Cessna Grand Caravan or Piper Navajo

Option T3:

2 Year Service or 4 Year Discounted Service (Discounted in Years 3

- 4)

36 Total Round Trips Per Week

– Based on 98% Completion Rate

Tupelo, Mississippi

– Memphis International Airport

– Caravan or Navajo

# Passengers: 16,700

Average Fare: $49.00

Departures: 3,681

Block Hours: 2,051

Revenue Passenger Miles: 1,452,900

Available Seat Miles: 2,872,921

06/02/2014 Representative Schedule

Departure Arrival

TUP 6:00 AM MEM 6:30 AM

MEM 7:10 AM TUP 7:40 AM

TUP 8:30 AM MEM 9:00 AM

MEM 9:40 AM TUP 10:10 AM

TUP 11:00 AM MEM 11:30 AM

MEM 12:10 PM TUP 12:40 PM

TUP 1:30 PM MEM 2:00 PM

MEM 2:40 PM TUP 3:10 PM

TUP 4:00 PM MEM 4:30 PM

MEM 5:10 PM TUP 5:40 PM

TUP 6:30 PM MEM 7:00 PM

MEM 7:40 PM TUP 8:10 PM

DISCOUNTED SUBSIDY

$3,269,853/Year

$888/Departure DISCOUNTED FOR YEARS 3

- 4 

### Operation Revenues



### TUP

- MEM Revenues $ 818,300

Other Revenues 8,183

Total Operating Revenues $ 826,483

Direct Operating Expenses

Flying Operations $ 415,958

Fuel and Oil 657,270

Maintenance 621,385

Aircraft Leases 515,100

Total Direct $2,209,713

Marketing 50,000

Indirect 1,673,016

Total Operating Expenses $3,932,729

Operating Loss $3,106,246

Profit Element (5% total Oper . Exp.) 196,636

Compensation Required $3,302,882

Compensation per PAX $198

Compensation per Departure $897

## Tupelo, Mississippi

– Cessna Grand Caravan or Piper Navajo

Option T4: Dual Hub Service

2 Year Service or 4 Year Discounted Service (Discounted in Years 3

- 4)

36 Total Round Trips Per Week

– Based on 98% Completion Rate

Tupelo, Mississippi

– Memphis International Airport

– Caravan or Navajo

Operation Revenues



### TUP

- BNA/TUP

- MEM Revenues $ 942,500

Other Revenues 9,425

Total Operating Revenues $ 951,925

Direct Operating Expenses

Flying Operations $ 493,950

Fuel and Oil 929,799

Maintenance 805,782

Aircraft Leases 515,100

Total Direct $2,744,631

Marketing 50,000

Indirect 1,832,261

Total Operating Expenses $4,626,892

Operating Loss $3,674,967

Profit Element (5% total Oper . Exp.) 231,345

Compensation Required $3,906,312

Compensation per PAX $223

Compensation per Departure $1,073 # Passengers: 17,500

Average Fare TUP

- BNA: $59.00

Average Fare TUP

- MEM: $49.00

Departures : 3,642

Block Hours: 2,901

Revenue Passenger Miles: 2,270,500

Available Seat Miles: 4,252,435

06/02/2014 Representative Schedule

– BNA

Departure Arrival

TUP 7:00 AM BNA 8:10 AM

BNA 9:00 AM TUP 10:10 AM

TUP 11:35 AM BNA 12:45 PM

BNA 2:00 PM TUP 3:10 PM

TUP 4:35 PM BNA 5:45 PM

BNA 7:00 PM TUP 8:10 PM

Representative Schedule

– MEM

Departure Arrival

TUP 8:00 AM MEM 8:30 AM

MEM 9:40 AM TUP 10:10 AM

TUP 12:00 PM MEM 12:30 PM

MEM 1:40 PM TUP 2:10 PM

TUP 4:00 PM MEM 4:30 PM

MEM 6:00 PM TUP 6:30 PM

DISCOUNTED SUBSIDY

$3,867,249/Year

$1,062/Departure DISCOUNTED FOR YEARS 3

- 4

# Air Choice One Has The Keys

To Your Success

06/02/2014 ALL SEATING FIRST CLASS