Sovereign Mr, Inc, 

Julys, 2010 

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: 

Ironw/ood, Michigan/Ashland, Wisconsin, DOT-OST-1996-1266 

Manistee/Lundington, Michigan, DOT-OST-1996-1711 

Dear Mr. DeVany: 

In response to Order 2010-6-4, Sovereign Air, Inc. offers the following proposal: 

Sovereign Air, Inc. (SAI) is planning to use either two 8 passenger seat King Air C90's with three round 

trips or one 9 passenger King Air 200 with two round trips for this Essential Air Service routes. 

Our flights will service only the EAS cities and the ORD Hub. Sovereign Air believes that with good 

schedules, proper pricing and a recovering economy, the load factors will likely increase in these 

markets. SAI will base its aircraft, crews and maintenance personnel, banking and purchase fuel in 

Ironwood. This will help keep the EAS monies in the local community. Additional flights will be added as 

needed to accommodate periods of increased demand. 

SAI will have baggage and ticket agreements with the major air carriers in Chicago by the start of this 

EAS service. SAI will also have cargo agreements for both domestic and international air freight 

movements. 

SAI will be HAZMAT approved and will be working in conjunction with hospitals to expedite various 

HAZMAT materials that they need to transport. 

SAI's goal is to work hand-in-hand with EAS communities to reduce the need for EAS subsidies within the 

next four to six years. 

Sovereign Air is currently in the process of acquiring its Scheduled Service Authority and anticipates 

being able to start this Essential Air Service. 

Sovereign Air will be fully integrated into the Global Distribution System (GDS) in conjunction with 

Worldspan. SAI is not tied to just one airline, allowing Sovereign Air better visibility in the various 

reservation systems. Passengers will have a broad range of channels through which to purchase tickets, 

including all airline reservation systems and travel agencies. Customers will be able to call our 

reservation offices or visit our website to book flights. Passengers can also purchase tickets and make 

reservations at our ticket counters. 
SAI's final schedules will be developed by the EAS City Airport Boards and SAI to reduce layover times in 

Chicago and provide the best possible arrival and departure times for the travelling public. As such, the 

following schedules will likely be adjusted: 

Proposed Schedule Options 

Option #1 SCHEDULES BEECH C-90 

IWD-KBL-ORD 3 RT DAILY 

Fit # Freq From 

10 1234567 IWD 

11 1234567 ORD 

20 12134567 IWD 

21 1234567 ORD 

20 1234567 IWD 

21 1234567 ORD 

Option #2 

Fit # Freq From 

10 1234567 IWD 

11 1234567 ORD 

20 1234567 IWD 

21 1234567 ORD 

TO 

KBL 

KBL 

KBL 

KBL 

KBL 

KBL 

Dpt-Arr 

6:00 -7:00 

9:30-10:10 

12:00-01:00 

02:30-03:10 

04:00-05:00 

08:00-08:40 

SCHEDULES BEECH 200 

IWD-KBL-ORD 2 RT Daily 

TO 

KBL 

KBL 

KBL 

KBL 

Dpt-Arr 

6:00 -7:00 

9:30-10:10 

04:00-05:00 

08:00-08:40 

TO 

ORD 

IWD 

ORD 

IWD 

ORD 

IWD 

TO 

ORD 

IWD 

ORD 

IWD 

Dpt-Arr 

7:10-7:50 

10:20-11:20 

01:10-01:50 

03:20-04:20 

05:10-05:50 

08:50-09:50 

Dpt-Arr 

7:10-7:50 

10:20-11:20 

05:10-05:50 

08:50-09:50 
Option #1 Subsidy: $2.551.725 

Sovereign Air, Inc. 

Annual Compensation Requirement for Essential Air Service for 

IWD KBL ORD 

Aircraft Type 

Available Seats Per Departure 

Passengers Per Trip 

Block Hours 

Departures 

Total Passengers 

Average Fare IWD ORD 

Average Fare KBL ORD 

Revenue Passenger Miles 

Available Seat Miles 

3 Round Trips 

8-seat Beechcraft 

8 

3.6 

4,196 

4,237 

7,762 

$125.50 

$69.00 

1,532,776 

7,151,988 

Passenger Revenue 

Other Rev. @ 6% of pax. Rev. 

Total Revenue 

$664,963.00 

$39,897.78 

$704,860.78 

Aircraft and Hull Insurance 

Fuel and Oil 

Flying Operations 

Other Direct Costs 

Maintenance 

Total Direct Costs 

$135,500.00 

$944,062.48 

$407,030.62 

$549,817.81 

$303,959.51 

$2,340,370.43 

Total Indirect Costs $761,140.00 

Total Operating Expenses $3,101,510.43 

Operating Loss 

Profit @ 5% 

Completion Rate 

Subsidy per leg 

Load Factor 

Annual Compensation 

Requirement 

Monthly Compensation 

Requirement 

$2,396,649.65 

$155,075.52 

$2,551,725.17 

$212,643.76 

97% 

$602.25 

44.4% 
Option #2 Subsidv: $2.053.759 

Sovereign Air, Inc. 

Annual Compensation Requirement for Essential Air Service for 

IWD KBL ORD 

Aircraft Type 

Available Seats Per Departure 

Passengers Per Trip 

Round Trips 

9-seat Beechcraft 

9 

2.7 

Block Hours 

Departures 

Total Passengers 

Average Fare IWD 

Average Fare KBL 

Revenue Passenger Miles 

Available Seat Miles 

ORD 

ORD 

2,574 

2,825 

7,762 

$125.50 

$69.00 

1,532,776 

5,363,991 

Passenger Revenue 

Other Rev. @ 6% of pax. Rev. 

Total Revenue 

$664,963.00 

$39,897.78 

$704,860.78 

Aircraft and Hull Insurance 

Fuel and Oil 

Flying Operations 

Other Direct Costs 

Maintenance 

Total Direct Costs 

$222,000.00 

$780,216.93 

$313,349.73 

$342,137.86 

$219,392.66 

$1,877,097.18 

Total Indirect Costs $750,160.00 

Total Operating Expenses $2,627,257.18 

Operating Loss 

Profit @ 5% 

Annual Compensation 

Requirement 

Monthly Compensation 

Requirement 

Completion Rate 

Subsidy per leg 

Load Factor 

$1,922,396.40 

$131,362.86 

$2,053,759.26 

$171,146.60 

97% 

$727.09 

59.2% 
Customer safety and service are Priority One with SAI. Sovereign Air looks forward to providing 

Essential Air Service to both Ironwood and Manistee. 

Sincerely, 

Jon Payne, CFO 

Sovereign Air, Inc.