January 6, 2011

Proposal of Hyannis Air Service, Inc., dba Cape Air to provide subsidized Essential Air Service for:

To/From Lambert - St. Louis International Airport

City DOT Docket

Marion/Herrin, IL DOT-OST-2000-7881

Quincy, IL DOT-OST-2003-14492

Cape Girardeau, MO DOT-OST-1996-1559

Hyannis Air Service, Inc., dba Cape Air

Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601 

(508) 862-9719

Please direct media inquires to: Leslie Myrbeck, director of community relations, at 508-862-9764

With codeshare of
Cape Air’s Cape Girardeau, Marion and Quincy service 

began operations on November 8, 2009 

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Cape Air’s St. Louis region route map

As of November 2009

Cape Air’s first St. Louis arrival taxis in!

November 8, 2009; Sandi Dorrin, STL Asst. Station Manager
Cape Air’s St. Louis operation now counts five cities, 

nine aircraft and up to 54 flights per day

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Cape Air’s St. Louis region route map

As of January 2011
The community support of each city has been magnificent,

and the service has proven popular

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285

536 523

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734

859 850

934

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1034 1054

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1300

1379 1362 1381

567

885

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1066 1093

1252

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1446

1480 1479

0

200

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1000

1200

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1600

Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10

CGI

MWA

UIN

This proposal is an exciting opportunity

to build on what is working!

Passengers
The popularity of Cape Air’s service is due to 

complex, inter-related contributions

by Cape Air and our community partners

Low fares: $49

Reliable service

High-frequency 

schedule: 36x 

weekly at MWA 

and UIN

Interline ability 

with all network 

carriers at St. 

Louis

Codeshare with

Fully-functioning 

global 

distribution

Community 

partnership

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Popular 

service
Cape Girardeau, Marion and Quincy are 

partnering with a prospering airline: Cape Air

• Total company revenue increased 9% in 2010

• Cape Air is consistently profitable

– Stable

– Investing in quality

– Engaged in our communities

• Cape Air will be adding at least four Cessna 402s 

in 2011, growing the fleet to 66 aircraft

• Cape Girardeau, Marion and Quincy have been 

stand-out markets for Cape Air

• Unmatched commuter airline expertise

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Cape Air strengths Right plane at the right time
While St. Louis is no longer the global gateway of 20 years 

ago, it still has 1,697 weekly departures to 59 non-stop 

destinations—including all the major markets

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Non-stop St. Louis service

January 2011

Source: OAG
In addition to interline ability with all network carriers at St. 

Louis, Cape Air’s service is codeshared with American Airlines

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Codeshare partners: American Airlines and Cape Air

Photo source: Jim Schnobrich; Used with permission
Cape Air’s proposal includes a city ticket office in each city

to enhance airline and airport awareness

• Increases the visibility of the airport and air 

service within the community

• Provides a welcoming place for people to learn 

about the air service from a friendly Cape Air 

agent

• Enables the redemption of targeted 

promotions, providing wide latitude in 

marketing the air service

• Enhances the central business district with a 

vibrant new retail space

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City ticket office highlights

A typical city ticket office
Cape Air’s proposal includes a ramp-side inter-terminal 

shuttle, facilitating seamless connections between 

terminals at St. Louis, without having to re-clear security

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No more TSA rescreening to connect between terminals!

St. Louis terminal shuttle
Cape Air proposes a 4-year term at each community 

to enhance stability and consistency

• Locks in reliable, popular air service for the 

communities

• Provides stability and the ability to plan for both 

the communities and Cape Air

• Enables Cape Air to invest more in the 

communities

– Robust marketing campaigns

– City ticket offices

– Employee domiciles

• Reduces the cost of service due to Cape Air’s 

ability to secure less expensive longer-term 

contracts

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Key reasons for a 4-year term
Cape Air proposes status quo service, but prefers a 4-year 

term and at least six round trips on weekdays at all three cities

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Drivers CGI MWA UIN CGI 6X6

Daily RTs 3.4 5.1 5.1 5.1

Pax/Dpt 4.4 4.4 4.4 4.4

LF 55% 55% 55% 55%

Fare (net) $41.00 $41.00 $41.00 $41.00

Pax Rev/Dpt $180 $180 $180 $180

Annual Act. Dpts 2,428 3,642 3,642 3,642

Annual Pax 11,013 16,519 16,519 16,519

CGI MWA UIN CGI 6X6

Fuel $478,197 $666,061 $622,708 $717,296

Maintenance $460,968 $646,483 $601,514 $691,452

Pilots $228,626 $228,626 $228,626 $228,626

Ownership $131,848 $181,485 $165,198 $197,772

Rents $84,652 $156,479 $105,922 $111,569

Staff $229,543 $289,564 $289,564 $289,564

Landing Fees $114,105 $164,773 $162,881 $171,158

Marketing $58,508 $58,508 $58,508 $58,508

Customer Svc. $123,545 $147,231 $147,231 $147,231

General & Admin./Other $91,449 $134,446 $147,611 $134,446

Operating expense $2,001,443 $2,673,657 $2,529,763 $2,747,624

Return of 5% $105,339 $140,719 $133,145 $144,612

Economic Expense $2,106,782 $2,814,375 $2,662,908 $2,892,235

Passenger Revenue $437,970 $656,955 $656,955 $656,955

Profit ($1,668,812) ($2,157,421) ($2,005,954) ($2,235,280)

Proposed Subsidy $1,668,812 $2,157,421 $2,005,954 $2,235,280

Per Departure $687 $592 $551 $614

Discount for 4-year term

Proposed Subsidy $1,627,966 $2,104,616 $1,956,856 $2,180,570

Per Departure $671 $578 $537 $599

Status quo service for Cape Girardeau at 24 weekly flights is proposed as 

requested, but Cape Air strongly prefers a 36x weekly pattern, at parity with 

Quincy and Marion (see right-most columns).

Note about Cape Girardeau service options

Expenses

Two-year term; discount for 4-year term, preferred, is noted below

Drivers

Inseparable package of three cities
A service pattern of 6x daily at each community would 

provide a better service pattern for the communities and 

dramatically lower unit costs

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Drivers CGI MWA UIN

Daily RTs 6.0 6.0 6.0

Pax/Dpt 4.4 4.4 4.4

LF 55% 55% 55%

Fare (net) $41.00 $41.00 $41.00

Pax Rev/Dpt $180 $180 $180

Annual Act. Dpts 4,249 4,249 4,249

Annual Pax 19,272 19,272 19,272

CGI MWA UIN

Fuel $836,845 $777,071 $726,492

Maintenance $772,874 $720,410 $667,946

Pilots $240,659 $240,659 $240,659

Ownership $230,734 $211,732 $192,731

Rents $125,028 $169,937 $119,380

Staff $319,575 $319,575 $319,575

Landing Fees $199,684 $192,235 $190,028

Marketing $68,260 $68,260 $68,260

Customer Svc. $159,074 $159,074 $159,074

General & Admin./Other $155,945 $155,945 $171,304

Operating expense $3,108,678 $3,014,898 $2,855,449

Return of 5% $163,615 $158,679 $150,287

Economic Expense $3,272,293 $3,173,577 $3,005,736

Passenger Revenue $766,447 $766,447 $766,447

Profit ($2,505,845) ($2,407,130) ($2,239,288)

Proposed Subsidy $2,505,845 $2,407,130 $2,239,288

Per Departure $590 $567 $527

Discount for 4-year term

Proposed Subsidy $2,444,513 $2,348,214 $2,184,480

Per Departure $575 $553 $514

Expenses

Two-year term; discount for 4-year term, preferred, is noted below

Drivers

A consistent daily schedule makes 

the air service more dependable

Inseparable package of three cities
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Cape Air is delighted to have reinvigorated air service at 

Cape Girardeau, Marion and Quincy, 

and is eager to build on these successes

 Proven track record in Cape Girardeau, Marion, and 

Quincy, where the service has been popular

 Cape Air is a prospering, experienced community 

airline

 All the amenities needed for successful small 

community air service are provided

 Full interline ability

 American Airlines codeshare

 Fully-functioning global distribution 

 Low fares: $49

 Reliability

Highlights of Cape Air service

Cape Air: 

Building on success!

Kicking it up in Marion
Thank you for a great first term!

Cape Girardeau ribbon cutting Quincy inaugural cake cutting

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