y.a^.5-S^^''^ ^ r l 

JhPARTMENT OF 

.-lANSPORTATION 

'OCKET OPERATIONS 

Presque Aer o Developmen t Foundation 

m\ GCT ! 1 A q: 35 

Intrepid International Airlines 

prospectus for 

Essential Air Service 

to: 

Sault Ste Marie, Michigan 

and 

Alpena, Michigan 

DOCKET DOT - OST 2009 - 0303 

and 

DOCKET DOT - OST 2009 - 0300 

submitted: October, 2011 
Intrepid International welcomes the opportunity to provide Essential Air Service to the 

communities of Sault Ste Marie and Alpena, Michigan. Also, we wish to state that the 

DOT'S query to locate another provider, ushers in a tremendous possibility to alter air 

traffic patterns in the Northern Michigan Region. We certainly hope you will find our 

proposal to be one of the most creative and competitive, as it pertains to the routing and 

scheduling options, as well as, the low fare pricing, as our proposal may compare to other 

possible entrants bidding on this same issue. 

As to the iheclianics of our bid. What we propose to offer the communities is a dTrie;^top 

flight from Sault Ste Marie to Alpena, bringing the flight in to our hub in Lansing^ where 

passengers have the option to deplane and conduct their business in the Capitol or, choose 

from the other carriers on the field, (Delta or, United), who have a spoke destination, 

connecting them to their system's hub cities. Or, carry on with our daily route, on the 

same aircraft, to Muskegon and finally, on to either Chicago/Midway or, Indianapolis, on 

alternating days, four days a week. 

The differentiating factor from what the current service offers going only to Detroit and 

to what most of our competitors will offer, is that we have chosen to fly to Chicago / 

Midway, instead of O'Hare, leaving our passengers virtually in sight of the central 

business district (The Loop), where they can catch a cab, rent a car or, (to the 

adventurous), walk to the end of the terminal and take the Orange Line, Elevated Train 

in to the heart of the city, Lakeshore Drive and the Miracle Mile. Chicago Midway also 

offers passengers access to several major U.S. Flagged carriers, the most prominent on 

the field being the low cost "King", Southwest Airlines, along with KLM, for those 

seeking more international destinations. 

Secondly, the alternating daily entry to Indianapolis was chosen because of the area's 

capacity to link our State's manufacturing base to a similar marketplace, where, 

hopefully, we will be able to foster a lasting and robust economy for our two struggling 

industrial communities, by offering fares that will enable face to face meetings, while 

rivaling prices commonly found by those taking "the Bus". Indianapolis also offers 

connections to 8 U.S. Flagged carriers and 16 international operators. Thereby, ensuring 

that within the course of any given week, a passenger from Michigan's Upper Peninsula 

can reach practically any point on the globe. 

The service we propose will feature the BAE Jetstream 32,19 seat aircraft, which has a 

proven safety record, an economical operating profile, mechanical reliability and, is 

extremely well suited for the area's climate and field characteristics. 

The aircraft, crew, maintenance, insurance and fuel, in addition to reserves, training and 

compliance issues, will be provided through a joint operating venture with Corporate 

Flight Management, a Certified Air Carrier, (certificate number FJTA920D). The 

reservations, fickefing, hospitality, housing, ground handling and promotion of the service 

will be carried out by our own staff, which conducts itself under the auspices of a Nonprofit Entity, registered here in the State of Michigan, since 2009. This combined effort 
will operate under the jurisdiction of a 380 certificate, which, in and of itself, holds a 

number of safeguards to both passengers and subsidy funders alike, wherein, all funds 

are held in trust until each flight actually takes place. Thusly, eliminating any concern for 

misappropriation of funds. 

Costs to operate the proposed service are calculated at $2,676,394. usd, per year. 

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This includes fuel, crew, A/C lease, re^ofsifioning and maintenance. Other fees that may 

become factors beyond our overall control will bt de-icing costs, (as weather dictates). 

Crew housing, ground handling and cleaning, ticket/reservation staff, local 

transportation, advertising and passenger catering (in flight or, at the airport), have also 

been figured in to this equation. 

The current subsidy being awarded to the carrier, expressing a desire to withdraw from 

the Sault Ste Marie and Alpena markets, is $1,532,660 for Alpena and $237,825 for Sault 

Ste Marie, for a combined figure of $1,770,485, per year. 

We have considered the costs and conditions as reported in the RFP and arrived at the 

following request for a subsidy that will, reach a reasonable solution to the community's 

problem, allow for growth and keep costs down, in this time of uncertainty. 

With only a 3% raise in the current combined subsidy of $53,114.55, per year, we would be 

able to provide our proposed service to the public for a full walk up, one way, two city 

segment fare of only $53.95, to Lansing. Or, a total of $107.90 from either Sault Ste Marie 

or, Alpena to either Chicago or, Indianapolis. *(this does not include federal, state and 

local taxes or, any governmental fees to offset TSA or, facility charges). This places our 

bid at * $1,823,599.50 United States Dollars (usd), for the Essential Air Service Subsidy. 

( $1,823,599.50. usd request for the annual EAS subsidy / contract). 

We realize that you are all hoping to receive a proposal for more flight service, with a 

larger aircraft, however, it is our contention that the Jetstream, 19 seater, would be 

perfectly capable of doing the job for the first 6 months while we establish ourselves and 

our new service to the area and then, move up to add a 30 seat aircraft to the certificate 

and substitute that aircraft for the second 6 months and finally, if ridership dictates the 

necessity, add a 50 seat regional jet to the certificate after a year, to substitute the 30 seat 

aircraft, to fully comply with your overall long term desire for regularly scheduled jet 

service into the area, where the regional jet would not only offer more seats but could 

bring down our operafing costs and charges, as well as, increase the comfort of our 

passengers. 
Daily Flight Path's would be alternating as such; 

Day 1: Sault Ste Marie (CIU), Alpena (APN), Lansing (LAN), Muskegon (MKG), Chicago 

(MDW) & return same route in reverse. 

Day 2: Sault Ste Marie (CIU), Alpena (APN), Lansing (LAN), Muskegon (MKG), 

Indianapolis (IND) & return same route in reverse. 

In conclusion, this is our offer to the DOT and the communities of Sault Ste Marie and 

Alpena, who have set forth the request to bid on providing essential air service and it 

speaks to our commitment to promote overall fantastic community service. It should also 

be noted that we would be ready to start service with only a brief period of time, as 

needed to set up shop, reposition the crews and aircraft and, fulfill any legal obligations, 

signatory rights, local permit acquisitions and compliance issues necessary. 

As always, full compliance to any and all insurance, maintenance or, general operating 

practices of the company would be available for full inspection should this offer be 

accepted. 

Thank You Again, for your attention to this offer, as we remain fully available for your 

immediate service. 

Please contact me personally, to address any concerns over this bid. 

Sincerely, 

Rick Eyk 

Intrepid International Airline / Presque Aero Development Foundation 

1356 Vineland Ct. S.E. 

Grand Rapids, Michigan 

4950 8 

616-459-3696 

or, 

616-677-5458 

email: rick-eyk@sbcglobal.net