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JhPARTMEN TO F .-lANSPORTATIO N 'OCKE TOPERATION S Presqu e Aer o Developmen t Foundatio n m \ GC T ! 1 Aq : 3

5 

# Intrepi d Internationa l Airline s

prospectu s fo r 

## Essentia l Ai rServic e

to : 

# Saul t St e Marie , Michiga n
an d 

# Alpena , Michiga n

DOCKE TDO T - OS T 200 9 - 030 3
an d 

## DOCKE TDO T - OS T 200 9 - 030 0

submitted : October , 201 1Intrepi dInternationa l welcome s th e opportunit y t o provid e Essentia l Ai r Servic e t o th e communitie s of

Saul t Ste Mari e an dAlpena , Michigan

. Also , w e wis ht o stat e tha t th e DOT' S quer y t o locat e anothe r provider , usher s i natremendou s possibilit y t o alte r ai r traffi c pattern s i nth e Norther nMichiga nRegion

. W e certainl y hop e yo u wil l findou r proposa l t o b e on e o f

th e mos t creativ e an dcompetitive , a s i t pertain s t o th e routin g an d schedulin g options , a s wel l as , th e lo w far e pricing , a s ou r proposa l ma y compar e t o othe r possibl e entrant s biddin g o nthi s sam e issue

. A s t o th e iheclianic s o f

ou r bid

. Wha t

w e propos e t o offer

th e communitie s i s adTrie;^to p flight fro mSaul t

St e Mari e t o Alpena , bringin g th e flight i nt o ou r hu b i nLansing ^ wher e passenger s hav e th e optio nt o deplan e an dconduc t thei r busines s i nth e Capito l or , choos e fro mth e othe r

carrier s o nth e field, (Delt aor , United) , wh o hav e aspok e destination , connectin g the mt o thei r system' s hu b cities

. Or , carr y o nwit hou r dail y route , o nth e sam e aircraft , t o Muskego nan dfinally, o nt o eithe r Chicago/Midwa y or , Indianapolis , o n alternatin g days , fou r

day s aweek

. Th e differentiatin g facto r fro mwha t

th e curren t

servic e offer s goin g onl y t o Detroi t an d t o wha t mos t o f ou r competitor s wil l offer , i s tha t w e hav e chose nt o fly t o Chicag o / Midway , instea dof

O'Hare , leavin g ou r

passenger s virtuall y i nsigh t o f th e centra l busines s distric t

(Th e Loop) , wher e the y ca ncatc hacab , ren t aca r or , (t o th e adventurous) , wal k

t o th e en dof

th e termina l an dtak e th e Orang e Line , Elevate dTrai n i nt o th e hear t

of th e city , Lakeshor e Driv e an dth e Miracl e Mile

. Chicag o Midwa y als o offer s passenger s acces s t o severa l majo r U.S

. Flagge dcarriers , th e mos t prominen t

o n th e fieldbein g th e lo w cos t "King" , Southwes t

Airlines , alon g wit hKLM , fo r thos e seekin g mor e internationa l destinations

. Secondly , th e alternatin g dail y entr y t o Indianapoli s wa s chose nbecaus e o f th e area' s capacit y t o lin k

ou r State' s manufacturin g bas e t o asimila r marketplace , where , hopefully , w e wil l b e abl e t o foste r alastin g an drobus t

econom y fo r

ou r tw o strugglin g industria l communities , b y offerin g fare s tha t wil l enabl e fac e t o fac e meetings , whil e rivalin g price s commonl y foun db y thos e takin g "th e Bus"

. Indianapoli s als o offer s connection s t o 8 U.S

. Flagge dcarrier s an d1 6 internationa l operators

. Thereby , ensurin g tha t withi nth e cours e of

an y give nweek , apassenge r fro mMichigan' s Uppe r Peninsul a ca nreac hpracticall y an y poin t o nth e globe

. Th e servic e w e propos e wil l featur e th e BA EJetstrea m32,1 9 sea t aircraft , whic hha s a prove nsafety record , a neconomica l operatin g profile , mechanica l reliabilit y and , i s extremel y wel l suite dfo r th e area' s climat e an dfieldcharacteristics

. Th e aircraft , crew , maintenance , insuranc e an dfuel , i nadditio nt o reserves , trainin g an d complianc e issues , wil l b e provide dthroug hajoin t operatin g ventur e withCorporat e Fligh t Management , aCertifie dAi r Carrier , (certificat e numbe r FJTA920D)

. Th e reservations , fickefing, hospitality , housing , groun dhandlin g an dpromotio no f th e servic e wil l b e carrie dou t

b y ou r ownstaff

, whic hconduct s itsel f

unde r th e auspice s of

aNon

profi t Entity , registere dher e i nth e Stat e of Michigan , sinc e 2009

. Thi s combine deffortwil l operat e unde r th e jurisdictio no f

a38 0 certificate , which , i nan dof itself , hold s a numbe r of safeguard s t o bot hpassenger s an dsubsid y funder s alike , wherein , al l fund s ar e hel di ntrus t

unti l eac hflight

actuall y take s place

. Thusly , eliminatin g an y concer nfo r misappropriatio no f

funds

. Cost s t o operat e th e propose dservic e ar e calculate da t $2,676,394

. usd , pe r

year . •vV."-.

. • • • •

- " '^r^::^ ' •;•• / ; . Thi s include s fuel , crew , A/C lease , re^ofsifionin g an dmaintenance

. Othe r fee s tha t ma y becom e factor s beyon dou r overal l contro l wil l b t

de-icin g costs , (a s weathe r dictates)

. Cre w housing , groun dhandlin g an dcleaning , ticket/reservatio nstaff , loca l transportation , advertisin g an dpassenge r caterin g (i nflight

or , a t th e airport) , hav e als o bee nfiguredi nt o thi s equation

. Th e curren t

subsid y bein g awarde dt o th e carrier , expressin g adesir e t o withdra w fro m th e Saul t Ste Mari e an dAlpen amarkets , i s $1,532,66 0 fo r Alpen aan d$237,82 5 fo r Saul t Ste Marie , fo r

acombine dfigure of

$1,770,485 , pe r

year . We hav e considere dth e cost s an dcondition s a s reporte di nth e RF Pan darrive da t th e followin g reques t

fo r asubsid y tha t

will , reac hareasonabl e solutio nt o th e community' s problem , allo w fo r

growt han dkee p cost s down , i nthi s tim e of uncertainty

. Wit honl y a3 % rais e i nth e curren t combine dsubsid y of

$53,114.55 , pe r

year , w e woul db e abl e t o provid e ou r

propose dservic e t o th e publi c fo r aful l wal k

up , on e way , tw o city segmen t far e of onl y $53.95 , t o Lansing

. Or , atota l o f $107.9 0 fro meithe r

Saul t Ste Mari e or , Alpen at o eithe r

Chicag o or , Indianapolis

. *(thi s doe s no t includ e federal , stat e an d loca l taxe s or , an y governmenta l fee s t o offse t TS A or , facility charges)

. Thi s place s ou r bi da t * $1,823,599.5 0 Unite dState s Dollar s (usd) , fo r th e Essentia l Ai r

Servic e Subsidy

. ( $1,823,599.50

. us dreques t fo r th e annua l EA S subsid y / contract)

.

We realiz e tha t

yo u ar e al l hopin g t o receiv e aproposa l fo r mor e flight

service , witha large r aircraft , however , i t

i s ou r contentio ntha t

th e Jetstream , 1 9 seater , woul db e perfectl y capabl e o f

doin g th e jo b fo r

th e first 6 month s whil e w e establis hourselve s an d ou r ne w servic e t o th e are aan dthen , mov e u p t o ad da3 0 sea t aircraf t t o th e certificat e an dsubstitut e tha t

aircraf t fo r th e secon d6 month s an dfinally, if ridershi p dictate s th e necessity , ad da5 0 sea t

regiona l je t

t o th e certificat e afte r

ayear , t o substitut e th e 3 0 sea t aircraft , t o fully compl y withyou r overal l lon g ter mdesir e fo r regularl y schedule dje t servic e int o th e area , wher e th e regiona l je t woul dno t

onl y offer

mor e seat s bu t

coul d brin g dow nou r

operafin g cost s an dcharges , a s wel l as , increas e th e comfor t of ou r passengers .Dail y Fligh t

Path' s woul db e alternatin g a s such ; Da y 1 : Saul t

Ste Mari e (CIU) , Alpen a(APN) , Lansin g (LAN) , Muskego n(MKG) , Chicag o (MDW ) & retur nsam e rout e i nreverse . Day 2 : Saul t

Ste Mari e (CIU) , Alpen a(APN) , Lansin g (LAN) , Muskego n(MKG) , Indianapoli s (IND ) & retur nsam e rout e i nreverse . I nconclusion , thi s i s ou r offer t o th e DO T an dth e communitie s o f Saul t Ste Mari e an d Alpena , wh o hav e se t

fort hth e reques t

t o bi do nprovidin g essentia l ai r servic e an di t speak s t o ou r

commitmen t

t o promot e overal l fantasti c communit y service

. I t shoul dals o b e note dtha t

w e woul db e read y t o star t servic e wit honl y abrie f perio dof

time , a s neede dt o se t

u p shop , repositio nth e crew s an daircraf t and , fulfil l an y lega l obligations , signator y rights , loca l permi t acquisition s an dcomplianc e issue s necessary . A s always , full complianc e t o an y an dal l insurance , maintenanc e or , genera l operatin g practice s o

f th e compan y woul db e availabl e fo r ful l inspectio nshoul dthi s offer b e accepted

. Than k Yo u Again , fo r

you r attentio nt o thi s offer , a s w e remai nfully availabl e fo r you r immediat e service

. Pleas e contac t

m e personally , t o addres s an y concern s ove r thi s bid

. Sincerely ,

Ric k Ey k Intrepi dInternationa l Airlin e / Presqu e Aer o Developmen t Foundatio n 135 6 Vinelan dCt

. S.E

. Gran dRapids , Michiga n 4950 8 616-459-369 6 or , 616-677-545 8 email : rick-eyk@sbcglobal.ne t