BEFORE THE • r 1 '~. 'r UNITED STATES DEPARTMENT OF TRANSPORTATIO!,! 

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Essential Air Service at MORGANTOWN, WEST VIRGINIA
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CITY LINK AIR. INC. (CLA) PROPOSAL TO PROVIDE SUBSIDIZED AIR SERVICE

ATMORGANTOWN (MGm. WEST VIRGINIA Please address allcorrespondence to: City LinkAir, Inc. ~ Telephone: (866) 435-9252 Attn: Joshua G.Newsteder, CEO Fax: (888) 259-6008 11890Hidden Hills Drive E-Mail: josh@citylinkair.com 'Jacksonville, FL 32225-1656 

### City LinkAir
if> Redefining AI, TrGvel Planned schedules and economics for this proposal have not changed. CLA submitted its first proposal (140417-5) on April 17, 2014. This update clarifies key points of interest. Webelieve that CLAisoffering Morgantown the safest, mostreliable, andrealistic proposal. CLA submits this proposal (140527-5) to provide subsidized air service from Pennsylvania's Pittsburgh International Airport (pIT) tothecommunity ofMorgantown (MGW), WestVirginia. Incompliance with Public Law 100-223, CLAproposes to operate these flights using pressurized, multiengine, turbine powered aircraft piloted bytwo fully qualified pilots. Aircraft willbeequipped, andpilots will betrained to flytothe lowest instrument approach minimums atevery airport served. This allows on time arrivals atthe lowest, legalweather limits foranyrunway CLAcan use. With an average of 160 daily departures, PIT is the ideal hub to connect Morgantown passengers to 37 non stops and hundreds ofconnecting opportunities worldwide. The convenience ana proximity ofnonstop flights to Morgantown enable CLA to meet connecting schedules without the problems endemic to other, super-saturated hubs. Specifically, there are no restrictions on slots and gates. Flow control into Pittsburgh israrely aproblem.

Planned non-stop service from MGWtoPITtakes 35 minutes This proposed service provides the best opportunity to quickly fly to/from PIT while simultaneously refining robust connection opportunities. Working closely with the Allegheny County Airport Authority (ACAA), CLA has arranged gate services closest to the center ofall four concourses (gates D-77 or C-52). This provides the shortest walking time forpassengers to allconnecting flights while minimizing bag transfer times. Competitively priced, short trips will realize a more leisurely and un-rushed experience, ultimately resulting in loweroverall costs and shorter travel times inmostmarkets.

140527.5 CLA EAS PITMGW Page 1Customer Advocacy

Each EAS community served will have a dedicated CLA station manager whose primaryjob after safety will be customer advocacy. Itis imperative that our single most important touch point with passengers is afulltime employee with theirbest interests inmind. This employee will bealocally recommended, community minded advocate thatcontinuously engages all civic interests for CLA. This station manager will ensure CLA always provides the best possible air service. Service Map forthis Proposal



## (PIT) Pittsburgh

Morga town (MGW)

Although CLA's planned aircraft are not equipped with an onboard lavatory it should be noted that the longest planned flight for this market is 35 minutes. CLA will initially operate under FAA scheduled commuter rules (Part 135) as itcontinues to pursue full, Part 121 certification. During this period CLA will use nine seat configured Beech 200/300s. Other Destinations CLA is currently working with the port authorities ofCharlotte Douglas International Airport (CLT) and Washington's Dulles International Airport (lAD) to determine costs and availability ofgates and services atthese hubs. CLAManagement will keep each interested community up-to-date onthe development of service tothese airports.

140527.5 CLA EAS PIT MGW Page 2

# Essentia' Air Service

P'anned Aircraft for fAA 

# '2' Operations

Beechcra(t 19000 - Two Pilots 19 Seat, Two Engines, Pressurized Turboprop Proposal Speed: 230 mph (200 Knots) Top speed: 328 mph (285 Knots) Max. Altitude: 25,000 Feet

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Cabin Interior

140527-5 CLA EAS PIT MGW Page 3

# Essential Air Service

Initial Aircraft for FAA 135 

# Operations

Beechcraft 200/300
- Two Pilots 9 Seat, Two Engines, 

### Pressurized Turboprop Proposal Speed: 230 mph (200 Knots) Top speed: 328 mph (285 Knots) Max. Altitude: 3 1,000 Feet

Beechcraft's 200 and 300 both share the same cabin size, customer experience will be the same. Whether flyingthe 200/300 or Beech 1900, performance is similar.



### Cabin Interior With nine seats every passenger enjoys 33 inches of legroom (2 inches more than a coach seat on larger jets). Every passenger is afforded 112 pounds of luggage.



### Exterior Luggage 60 cubic feet of underbelly storage accommodates TSA checked bags. This easily carries up to six golf bags. CLA intends to provide this service as an FAApart 121 airline. Itscurrent certification (FAAPart 135) prohibits using the 19seat Beech 1900. Therefore, CLA will use Beechcraft 200/300s configured with nine seats (pictured here) until full FAA 121 certification is achieved. Once 121certification is achieved, CLA will match each market with themost efficient aircraft. CLAwill always fly these markets with twopilots.



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140527-5 CLA EAS PIT MGW Page 4Schedules

CLA's schedules will be optimized to achieve the best connection opportunities inPittsburgh. Planned weekday roundtrips to MGW are shown. One day of similar roundtrips would also be offered over the weekend, usually splitbetween Saturday morning and Sunday evening.

Planned typical Monday-Saturday /Sunday Flight Schedule From To Dep. Arr. Stops Price Morgantown Pittsburgh 8:00AM 8:35AM Non-Stop $75.00 Morgantown Pittsburgh 1:16PM 1:51PM Non-Stop 

### " Morgantown Pittsburgh 3:26 PM 4:01 PM Non-Stop 

### " Morgantown Pittsburgh 8:42PM 9:17 PM Non-Stop " From To Dep. Arr. Stops Pittsburgh Morgantown 6:55 AM 7:30AM Non-Stop $75.00 Pittsburgh Morgantown 12:12PM 12:46PM Non-Stop 

### " Pittsburgh Morgantown 2:21 PM 2:56 PM Non-Stop 

### " Pittsburgh Morgantown 7:37 PM 8:12PM Non-Stop 

### " Schedules shown areplanned and may change to better serve the community/maximize best connections. CLA will work with its local station manager/customer advocate and each community to determine the best schedules that fitinto theeconomics ofourbusiness model. Making Connections CLA is aggressively pursuing interline and codeshare agreements and is confident that one or more will be inplace with the dominant carrieres) when service begins. It is our intention to provide the customer with aseamless, transparent travel experience to andthrough Pittsburgh. Meeting early morning and late evening connection banks upholds the true spirit of the EAS program. Our schedule identifies the maximum number ofone-stop travel options from MGW while providing the community with safe, reliable, andreasonably priced service thatfitswithin the economics ofourmodel. Dispatch Reliability The America made Beechcraft all have excellent records ofdispatch reliability. The ubiquity ofparts and maintenance allow for aplanned 98% dispatch reliability. CLA will have apre-positioned, ready spare aircraft located at its maintenance base in Clarksburg, West Virginia. Scheduled travel time from Clarksburg to Morgantown is.15 minutes. Depending on EAS contracts awarded this "banked" aircraft maybepre-positioned inPittsburgh. Five full crews per aircraft will allow CLA to meet all FAA mandates for schedules, rest, training and standby. No crews will ever exceed schedule restrictions (FARpart 117,etc.)

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No pilots will everfly alatenight flight priorto anearly morning flight. Ticket Prices Prices shown are the maximumprice

-As a stand alone bid CLAhas to ensure itcan responsibly provide the proposed level of service if awarded this one EAS contract. Additional EAS contract awards will achieve economies ofscale. CLAwillpass onthese multi-contract savings to reduce ticket prices.

140527-5 CLA EAS PlTMGW Page 5

### Annual Financial & 

### Operational Metric Summary

Aircraft Type Departures Block Hours 

## o & D Passengers Average Load Factor Average One Way Fare Statute Miles .Flown Revenue Passenger Miles (000) Available Seat Miles (000) Annual Revenue Gross Ticket Revenue CPE & Fees (pFC, 911, FET, & SF) Net Ticket Revenue Annual Expenses Distribution (GDS, OTA, CC) Fuel & Consumables Personnel Main!. & Main!. Reserves Station Fees & Rents Aircraft Rents Marketing Other Fixed and Variable Overhead Total Annual Expenses' Profit (loss) 5% Margin on Cost Required EAS Subsidy Required EAS Subsidy per Pax

Respectfully Submitted: May 27, 2014 Joshua G. Newsteder

. Chief Executive Officer City Link Air, Inc. Beechcraft 200/300 2,504 1,454 17,528 78% (-7 Seats) $ 75.00 161,670 1,132 1,455 $ 1,314,600 $ 549,065 $ 765,535 $ 123,244 $ 535,139 $ 836,775 $ 515,068 $ 284,628 $ 295,282 $ 80,000 $ 150,000 $ 2,820,136 $ (2,054,601) $ 141,007 $ 2,195,608 $ 125

140527-5 CLA EAS PIT MGW Page 6