# y^o^o'y^^ / ^^^ ^ V 

## - V

DEPARTMEN TO F -1A,\'SP0RTATI0 M 'OCKE TOPERATION S 

## Before.th e Unite d State s Departmen t o fTransporJatitDrj i > - ] A9 ^ 3 5 Octobe r14 , 201 1

Proposa l t o Provid e Essentia l Ai rServic e a t MUSCL E SHOALS

. ALABAM A GREENVILLE , MISSISSIPP I LAUREL/HATTIESBURG , MISSISSIPP I TUPELO , MISSISSIPP I Unde r4 9 U.S.C

. 4173 1 e t seq
. Docke tDOT-OST-2000-785 6 Docke tDOT-OST-2008-020 9 Docke tDOT-OST-2001-1068 5 Docke tDOT-OST-2009-030 5



## SeaPor t Airlines , Inc

. Proposa l t o Provid e Essentia l Ai rServic e
B yOrde r2011-9-5 , th e Departmen t requeste d proposal s fo ressentia l ai rservic e (EAS ) a ta tota l o f2 3 communities

. Pursuan t t o tha tOrder , SeaPor trespectfull ysubmit s thi s proposa l t o provid e subsidize d essentia l ai rservic e a tth e communitie s o fMuscl e Shoals , Alabam a (MSL) ; an d Greenvill e (GLH) , Laurel/Hattiesbur g (PIB) , an d Tupelo , Mississipp i (TUP)

. Excep t a s otherwis e note d herein,.proposal s fo reac h communit yar e o n a standalon e basis

. Ther e i s n o inten t i n ou rproposa l tha t th e fou rcommunitie s represen ta n "al l o rnothing " bid

. Correspondenc e regardin g thi s proposa l shoul d b e directe d to :

Timoth ySiebe r Vic e Presiden t - Strateg y& Corporat e Developmen t

SeaPor tAirlines , Inc

. 750 5 N E Airpor tWa y Portland , O R 9721 8 (971)340-171 6 tsieber(5 ) seaportair.co mOctobe r14 , 201 1 

# SEAPOR T

. I KLI N t b


# SeaPort Airlines : Focuse d O n Servin g Smal l Communitie s

Compan yOvervievi ^ SeaPor t Airlines , Inc

. i s a FA Acertifie d schedule d airlin e vt/it h nearl y3 0 year s o fexperienc e i n commercia l aviation

. Ou rcompany' s foundatio n i s buil to n efficien tan d reliabl e servic e t o rura l communities

. Bot h SeaPor t Airline s an d ou rsiste rbrand , Wing s o fAlaska , currentl yoperat e servic e unde rth e Essentia l Ai rServic e progra m a s \Ne\ \ a s o n a n unsubsidize d basis. ' SeaPort' s approximatel y20 0 professional s operat e a n averag e o f10 0 dail ydeparture s t o 2 0 citie s i n nin e states , o fwhic h onl yseve n receiv e EA S subsidy

. Ou rbusines s mode l is focuse d o n providin g servic e t o smalle rcommunities

. Thi s i s i n shar p contras tt o th e strategie s o fth e mega-airlin e brands , whic h n o longe rhav e th e operationa l o reconomi ccapability , o rstrategi c desire , t o serv e rura l America

. SeaPor t deliver s Essentia l Ai rServic e t o seve n communities : Excursio n Inlet , Alaska ; Pendleton , Oregon ; Jonesboro , E l Dorado , Ho tSprings , an d Harrison , Arkansas ; an d Salina , Kansas

. I n eac h o fthes e cases , afte rawar d o fth e EA S contrac tb yU.S

. DOT , w e hav e starte d b yth e dat e promise d an d wit h fare s eithe ra to rbelo wthos e outline d i n ou r proposal

. W e woul d not e tha t thi s stand s i n contras tt o som e othe rairline s tha tplac e bid s wit h unreasonabl e fare s tha t ar e neve rrealize d b yth e travelin g public , dela yth e star to fservice , o r d o no t launc h servic e tha t ha s bee n awarde d b yth e Department

. ATrac k Recor d o fBuildin g Communit yPartnership s SeaPor t Airline s pride s itsel fo n developin g partnership s wit h eac h communit yi tserves
. Thi s include s participatio n i n loca l events , donatio n o ftickets , regula rcommunit ymeetings , an d advanc e notificatio n of , an d opportunit yfo rinput , relate d t o schedul e change s an d fares

. W e believ e thi s approac h serve s ou row n interest s equall ywit h thos e o fth e communit yb y fosterin g long-term , stabl e relationship s tha tresul ti n increase d ridershi p and , eventually , reduce d subsid yrequirements

. SeaPort' s partnershi p approac h i s buildin g recognitio n b ythos e wh o watc h th e Essentia l Ai rServic e progra m a s evidence d b yth e followin g weblo g entr yfro m Skylan d Centr e fo rEssentia l Ai rService :

Wing s o fAlask a i s th e premie rairlin e servin g Southeas t Alask a providin g schedule d passenge rservice , fas t freigh t an d charte rsen/ic e betwee n Junea u an d Skagway , Haines , Hoonah , Gustavus , an d weekl yflight s t o Excursio n Inlet

. Wing s o fAlask a gre wi n reputatio n an d size , becomin g on e o fth e mos tsuccessfu l regiona l ai rcarrier s i n Alaska , no w comprise d o fa flee tofCessn a 207 s an d Gran d Caravans

. Wing s o fAlask a presentl yoperate s a n averag e o f3 8 dail yschedule d flight s t o si xSoutheast.citie s i n Alaska

. SkyLan d Centr e fo rEssentia l Ai rService s offer s news , information , exper t opinio n an d industr yinsight s throug h wvtw.SkyLandNew5.co m hom e page , wher e breakin g new s i s poste d a s i t come s i n an d a weekl ynew s digest , currentl ycirculate d t o 5.00 0 essentia l airservic e professional s aroun d th e world

.
DO TOST-2000-785 6 DOT-OST-2008-020 9 DOT-OST-2001-1068 5 DOT-OST-2009-030 5 Pag e | 2Octobe r14 , 201 1 

# SEA^^POR T 

# I f EA

S an d economi csynerg y- th e perfec t exampl e

. Poste d b ySkyLan d o n Augus t 21 , 201 1 al2i00p m " ^

ViewBlog

Fo rthos e c\'nic5 wh o suggest essentia l ai roperation s I n th e U S are base d o n airlin e "take th e moneyan d run " tnmklng , th e relationshi p Detv/ee n SeaPo n Airline s an d th e communityo fPendleto n stand s as a n importan t cas e study

. SeaPor t ha s a n EAS contract fo rPendleton-Portland ; however , theyfl ya n additiona l speculativ e week^ ' roun d tri p abov e an d beyon d the rcontract , an d thre e weekl yspeculativ e roun d trip s bet'.vee n Pendleto n an d Boise

. Wit h th e Pendleto n Round-U p - a n importan t touris m drav. ' fo rth e community ' - righ t aroun d th e corner , SeaPor t ha s announce d th e additio n o fon e dait>

- roun d tri p fligh t betwee n Pendleto n an d Portlan d (re m Tuesday , Septembe r I3if i throug h Friday

. Septembe rI6tti

. Furthermore , fro m Augus t I6th-Septembe riBm , 2011

. SeaPor t wil l av/ard al l passengers tha

t 'v.-rangte " a fligh l to an d fro m Pendleto n wit h doubl e point s throug h thei rFt>erFlexcustome r reward s program'

. •We've bee n Pendleton' s nometov. n airlin e fo rthre e years , an d knowthat Round-U p i s suc h a majo rpa n o l th e Pendleto n culture.' ' sai d Ro b McKinney—President , SeaPor t Airlines

. 'W e couid n t hel p bu t joi n i n th e fun. "
Source : SeaPor

t Airlines , Inc.

. & SkyLand

.
Best Practic e Av/ard , Augus l 2011

.

i * Shar e t Twitte rv'Uk

c^T ]

W e encourag e th e communitie s I n thi s proposa l t o contac t an yo fth e EA S communitie s w e presentl yserv e fo radditiona l information

. Additiona l evidenc e o fou rabilit yt o develo p a stron g partnershi p an d provid e th e communitie s i n thi s proposa l wit h reliable , customer-focuse d ai r servic e i s demonstrate d throug h communit yan d custome rcomment s tha t ar e provide d late rI n thi s document

.

DO TOST-2000-785 6 DOT-OST-2008-020 9 DOT-OST-2001-1068 5 DOT-OST-2009-030 5 Pag e j 3Octobe r14 , 201 1 

# SEA#PDR T

rAI R LI N E S



# Th e SeaPort Airline s Experienc e

Below , w e hav e summarize d fo rth e benefi to fth e Departmen tan d th e communit yke yelement s o fSeaPort' s operatin g mode l an d servic e strateg ytha tw e inten d t o emplo yi fselecte d t o provid e essentia l ai rservic e a t eac h o fth e communitie s i n thi s proposal

. Aircraf t SeaPor t Airline s i s proposin g servic e wit h Cessn a Carava n turbopro p aircraft.' ^ Unde rproductio n i n th e USA , th e Carava n wa s originall ydesigne d i n th e 1980' s t o replac e a n agin g flee to f piston-powere d aircraft , suc h a s th e D e Havillan d Otter , Cessn a 402 , an d Pipe rChieftain

. Ove r 2,00 0 Caravan s hav e bee n buil t loggin g a combine d tota l I n exces s o f12. 5 millio n fligh thours

.



# SeaPort Airline s Cessn a Carava n

Althoug h certifie d fo rsingle-pilo t operation , SeaPor t typicall yoperate s th e Carava n wit h bot h a Captai n an d First Officer

.
DO TOST-2000-785 6 DOT-OST-2008-02Q 9 DOT-OST-2001-10685

. DOT-OST-2009-030 5 Pag e | 4Octobe r14.201 1 

# SEA#PDR T

: AI H L1 fJ t : S

Th e Carava n ha s a spaciou s cabi n tha tseat s passenger s highlighte d b ya larg e aisl e an d generou s window s fo ral l aroun d excellen tvisibility

. Th e larg e carg o po d o n th e bell yo fth e aircraf t facilitate s carriag e o fbaggag e volume s an d weight s muc h greate rtha n tha twhic h ca n b e accommodate d o n olde rpiston-powere d twins , an d include s th e abilit yt o segregat e passenge rbaggag e fo rsecurit ypurpose
. W e believ e th e Cessn a Carava n offer s th e "righ tsize " capacit yincremen tfo reac h o fthes e communities , enablin g u s t o offe roptima l frequenc ylevel s an d reasonabl e fare s t o th e communit ywhil e simultaneousl yminimizin g th e require d leve l o fsubsidy

. SeaPor t Airline s currentl yoperate s eigh tPilatu s PC-12 s an d thre e Cessn a Caravans , wit h tw o additiona l Caravan s schedule d fo rdeliver yi n Novembe r2011

. Airpor t Terminal s SeaPor t Airline s is offerin g multipl e proposa l option s fo rconsideratio n byeac h communit ytha t include s servic e t o Ne wOrleans , Nashvill e and/o rMemphis

. At eac h o fth e hu b airports , SeaPor t propose s th e followin g termina l arrangements :

•Nashvill e (BNA) : SeaPor t Airline s woul d operat e fro m th e mai n termina l wit h TSA-screene d operations

. W e hav e reache d a n agreemen tt o b e groun d handle d (bot h abov e an d belo w wing ) b ya n airlin e wit h a n existin g presenc e i n Nashville , pendin g fina l carrie rselectio n i n thi s Docket

.

•New ^ Orlean s (MSY) : SeaPor t Airline s woul d operat e fro m th e mai n termina l wit h TSA

screene d operations

. Dependin g o n th e numbe ro foperation s a tNe wOrlean s followin g th e carrie rselectio n proces s i n thi s Docket , w e woul d eithe remplo you row n staf fo rutiliz e th e service s o fa third-part ygroun d handler

.

•Memphi s (MEM) : SeaPor t is keenl yawar e o feac h community' s desir e t o hav e servic e operat e int o th e mai n termina l a tMemphi s Internationa l Airpor tt o facilitat e interlin e connections

. W e hav e explore d operation s a tth e mai n termina l an d hav e determine d tha t leasin g ou row n spac e woul d b e economicall yunviable , particularl yi n th e contex to fwishin g t o offe rreasonabl e fare s t o ou rcommunities , fundin g o fth e EA S program , an d th e requiremen t t o maintai n subsid ylevel s belo w$20 0 pe rpassenger
. Tha tbein g said , w e ar e pursuin g sub-leas e agreement s whereb ySeaPor twoul d sub-leas e exces s termina l spac e fro m a large rcarrier

. Unti l suc h a n agreemen tca n b e finalize d wit h acceptabl e economi c terms , Memphi s operation s wil l b e a tou rexistin g termina l busines s termina l tha toffer s convenienc e fo rquic k trip s t o an d fro m th e Memphi s metropolita n area
. Fo rpassenger s connectin g t o o rfro m othe rdestinations , SeaPor tAirline s provide s a complimentar yan d quic k shuttl e servic e t o th e Memphi s mai n terminal.' '

In anticipatio n o freachin g a n agreemen t t o sub-leas e spac e a t MEM

. SeaPor t propose s t o maintai n TS Ascreenin g i n eac h ofth e EA S communitie s an d continu e screenin g o fal l outboun d passenger s includin g thos e boun d fo r Memphis

.
DO TOST-2000-785 6 DOT-OST-2008-020 9 DOT-OST-2001-1068 5 DOT-OST-2009-030 5 Pag e | 5Octobe r14.201 1 

# SEAPOR T

r AI R LI N t i

Pricin g Mode l SeaPor t Airline s employ s a pricin g strateg yo freasonabl e ari d attractiv e fare s tha tfactor s i n ticke t price s a t othe rairport s i n th e regio n {i.e. , likel yleakag e points) , tota l itinerar ycost s includin g connectin g flight s o n othe rairlines , cost s o fothe rmode s o ftransportation , an d th e nee d t o minimiz e subsid yleve l an d taxpaye rexpenditures

. Th e rang e o ffare s an d forecaste d averag e far e fo reac h o fth e citie s t o eac h propose d hu b i s show n o n th e tabl e below

. Al l fare s illustrate d ar e one-wa ywit h varyin g level s o frequire d advanc e purchas e an d inventor ycontrol

.



# SeaPort Airline s Illustrativ e Fare s Pricin g Rang e & Averag e

EA S Communit y Memphi s Nashvill e Ne wOrlean s

Muscl e Shoals , A L(MSL )

Greenville , M S (GLH )

Laurel/Hattiesburg , M S (PIB )

Tupelo , M S (TUP ) Fare s rangin g fro m $49-109 ; averag e o f $62.3 5 Fare s rangin g fro m $39-109 ; averag e o f $51.7 5 Fare s rangin g fro m $69-179 ; averag e o f $88.2 5 Fare s rangin g fro m $39-89 ; averag e o f $49.2 0 Fare s rangin g

fro m $39-79 ; averag e o f $51.2 0

N/ A

Fare s rangin g fro m $79-189 ; averag e o f $94.7 5 Fare s rangin g fro m $59-119 ; averag e o f $75.8 0 N/ A

Fare s rangin g fro m $69-159 ; averag e o f $95.2 5 Fare s rangin g fro m $39-89 ; averag e o f $53.7 5

N/ A

NOT E Liste d fare s includ e Federa l E)(c:is e Ta xbu t not segmen t fees

. PFCs , o rsecuritycharges

. W e believ e th e fare s illustrate d represen ta responsibl e approac h t o pricin g i n EA S communitie s an d whic h i s consisten t wit h th e overal l objective s o fth e EA S program
. SeaPor tAirline s doe s no t engag e i n "baiting " communitie s wit h lo wfare s tha tar e no tsustainable

. Suc h pricin g scheme s shif t th e tru e cos t o fai rtransportatio n fro m th e consume rt o th e Departmen tan d w e believ e ar e inconsisten t wit h th e inten t o fth e essentia l ai rservic e progra m t o ensur e reasonabl e acces s t o th e ai rtransportatio n syste m fo rsmalle rcommunities

. Equall ya s important , th e resultan t highe rlevel s o fsubsid yrequire d b yofferin g unreasonabl ylo wfar e ca n increas e th e ris k o fa communit yexceedin g $20 0 pe rpassenge rsubsidy

.

DO TOST-2000-785 6 DOT-OST-2008-020 9 DOT-OST-2001-1068 5 DOT-OST-2009-030 5 Pag e [ 6Octobe r14 , 201 1 

# SEA^DR T

Consisten t wit h ou rpricin g model , SeaPor tcharge s reasonabl e fee s fo rticke tchanges , pe t travel , an d unaccompanied , minors. ^ Thes e fe e level s reflec tSeaPort' s philosoph yo fbuildin g custome rloyalt ythroug h qualit yservic e a t reasonabl e price s rathe rtha n opportunisticall y"nicke l an d diming " passenger s a t ever ypossibl e turn

. Globa l Distributio n SeaPor t ha s investe d heavil yi n improvin g ou rdistributio n capabilitie s an d i s no wI n al l fiv e majo rgloba l distributio n systems

. Thi s enable s ou rflight s t o b e availabl e o n al l majo ronlin e trave l agencie s an d meta-searcher s includin g Orbitz , Travelocity , Expedia , Kayak , Hipmunk , an d CheapoAir

. cheapOair * ^•>otOnan<orCillMmrTTell>,t > 1-<U-a)e.30S C

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# WeSBBTZ

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SeaPort' s fe e fo rticke t change s i n EA S market s i s $30 , wel l belo wthos e charge d b ylegac ycarrier s a t neighborin g airports , providin g a n attractiv e valu e propositio n tha t encourage s us e o fih e loca l airpor t bu t doe s plac e additiona l financial burde n o n th e EA S progra m b yhavin g t o subsidiz e unreasonabl ylo wfares

.
DO TOST-2000-785 6 DOT-OST-2008-020 9 DOT-OST-2001-1068 5 DOT-OST-2009-030 5 Pag e j 7Octobe r14 , 201 1 

# MMR ]

r i 11 ) LINf

S

Interlin e Connectivit v SeaPor t currentl yha s a n interlin e ticketin g agreemen twit h U S Airway s an d i s workin g towar d securin g agreement s wit h othe rcarrier s tha twil l facilitat e singl e ticke titinerarie s fro m eac h o f th e communitie s i n thi s proposa l t o destination s al l aroun d th e world. ^ W e anticipat e tha tthes e agreement s wil l includ e industr ystandar d interlin e e-ticketin g (lET ) an d baggag e check

. T o facilitat e implementatio n o finterlin e agreement s wit h lET , SeaPor twil l b e migratin g t o a ne w reservatio n syste m wit h ful l suc h capability

. W e conservativel ypla n t o hav e th e ne wsyste m i n plac e an d full yoperationa l b yth e en d o f2011

. Anumbe ro fairline s ar e targete d fo rinterlin e agreement s durin g 201 2 wit h thi s ne wsystem , includin g Delt a Ai rLine s whic h is th e leadin g carrie ra tMemphi s Internationa l Airport

. Wit h Delt a announcin g a furthe rreductio n i n Memphi s flyin g effectiv e i n Januar y2012 , w e wil l als o b e pursuin g Interlin e agreement s wit h othe rcarrier s s o a s t o ensur e tha teac h communit yi n thi s proposa l ha s maximu m continue d connectivit yt o th e res to fth e world. ^ Marketin g & Publi cRelation s Strateg y SeaPor t wil l implemen t a comprehensiv e marketin g an d publi crelation s strateg yaime d a t introducin g ou rbran d t o th e communit yan d maximizin g th e numbe ro fpassenger s onboard

. I n additio n t o loca l advertising , thes e activitie s include :

•Loca l Even t Marketing : Recognizin g tha tvisibl e participatio n i n loca l event s ha s bee n successfu l fo rbot h legac yan d low-cos tairlines , SeaPor tha s implemente d a simila rstrateg y I n al l o fit s communities

. Thes e hav e range d fro m SeaPor tAirline s communit yeg g hunts , t o presentin g a t busines s expos , t o hostin g "afte rhours " event s a tloca l Chambe ro f Commerc e meetings

. I n addition , SeaPor tofte n make s "i n kind " donation s o fticket s fo rus e b yloca l charities , eithe rfo rthei row n busines s need s o ra s a fundraisin g too l (i.e. , raffles , silen t auctions , etc.)

.

•Website : Th e majorit yo fSeaPort' s passenger s boo k throug h th e Company' s websit e (www.SeaPortAirlines.com)

.

•Socia l Media : Sinc e 2010 , SeaPor tAirline s ha s manage d a successfu l socia l medi a campaig n tha t ha s allowe d th e Compan yt o dynamicall yengag e it s custome rbas e i n a two
wa yconversatio n throug h site s suc h a s Facebook , Twitter , Foursquar e & Linkedln

. W e hav e foun d socia l medi a t o b e a n excellen ttoo l fo rgeneratin g passenge rreferral s an d informatio n sharin g i n ou rcommunities , an d expec tsimila rresult s i n th e fou rcommunitie s i n thi s proposal

.

6 U S Airways serve s al l ofth e thre e hub s - Memphis , Nashville , an d Ne wOrlean s - that are bein g offere d to th e communitie s i n thi s proposa l as acces s point s to th e nationa l ai rtransportatio n system

.

' Thi s I S furthe rsupplemente d b yproposa l option s Itia l includ e acces s to multipl e hubs , a s outline d late ri n thi s document

.
DO TOST-2000-785 6 DOT-OST-200B-020 9 DOT-OST-2001-1068 5 ^^^ ^ ' ° DOT-OST-2009-030 5

# • ^

Octobe r14 , 201 1 

# SEA#PDR T

- AI H LI I J tS

•FlyerFle xCustome rRewards : Durin g 2011 , SeaPor tlaunche d a ne wan d improve d custome rloyalt yprogra m calle d "FlyerFlex. " Thi s progra m provide s customer s wit h a variet y o fbenefit s includin g fre e flights , servic e charg e waivers , an d bonu s points

. SeaPor t anticipate s unveilin g furthe renhancement s o fth e FlyerFle xprogra m durin g 201 2 tha twil l includ e a wide rchoic e o ftrave l rewards

.

•Valu e Accounts : SeaPor t offer s a Corporat e Valu e Accoun ti n ever ycommunit yserved

. Thi s progra m encourage s businesse s t o mak e a long-ter m investmen ti n loca l ai rservic e b y offerin g a variet yo fbenefit s suc h a s chang e fe e waiver s an d saving s o f5 % t o 15%

. I ti s Importan t t o not e tha t unlik e th e corporat e trave l program s o fmajo rairline s tha tar e no t designe d t o serv e smal l businesse s i n rura l communities , SeaPort' s progra m ca n provid e saving s t o a compan yo fvirtuall yan ysiz e an d ca n b e use d b yan yemploye e o fa company
. I n th e followin g proposals , SeaPor t Airline s ha s allocate d specifi cdolla ramount s fo rmarketin g an d sale s activit yappropriat e t o eac h communit yan d servic e pattern

. Thes e estimate d expense s tak e int o consideratio n th e lowe rcost s o fmedi a i n smal l market s an d th e realit ytha t mos t loca l traffi ctypicall yoriginate s i n th e EA S communit yrathe rtha n th e hu b market

. Ou r approac h t o marketin g budgetin g i s base d o n th e philosoph ytha treasonabl e advertisin g budget s ca n b e effectivel yleverage d wit h "ne wmedia " suc h a s socia l networking , blogs , opt-i n email , etc

. t o engag e wit h customer s o n a 4mor e persona l level

. W e strongl ybeliev e tha t suc h a strategi capproac h represent s a mor e fiscall yresponsibl e us e o f subsid y(an d therefor e taxpaye rdollars ) i n EA S communitie s tha n irrationall yhig h marketin g budget s intende d t o promot e smalle rcommunitie s i n a hu b marke ta s "destination. " Passenger s wit h trip s beginnin g i n othe rtha n th e EA S communit yquit e ofte n ar e connectin g fro m a mor e distan t originatio n point

. A s outline d above , t o increas e connectin g traffi cSeaPor ti s transitionin g t o a ne wreservatio n syste m tha twil l enabl e u s maintai n ou rcurren tGD S presenc e an d increas e th e numbe ro finterlin e agreements

. Simpl yput , SeaPor ti s makin g a n investmen t t o ensur e tha t ou rmarket s hav e "shel fspace " virtuall yanyvirher e i n globa l trave l market

. Illustrativ e example s o fSeaPort' s advertisin g an d promotiona l material s ar e provide d o n th e nex t page
.

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# •-J B

Octobe r14.201 1 

# SEA^DR T

rAI H LI r j b

' S 

# Sampl e SeaPortAirlines Advertisin g & Promotiona l Material s

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# SEA^PDR T
Octobe r14 , 201 1 -..RLINE S 

# Community& Custome rFeedbac k

Whil e SeaPor t Airline s ha s outline d abov e wh yw e believ e ou rairlin e i s wel l positione d t o ensur e tha t reliabl e an d reasonabl yprice d ai rtransportatio n continue s t o pla ya vita l rol e i n th e economi cvitalit yan d qualit yo flif e i n th e communitie s o fTupelo , Muscl e Shoals , Greenville , an d Laurel/Hattiesburg , th e stronges t testamen tt o thi s come s fro m th e accolade s tha tw e receiv e o n a regula rbasis

. Belo wi s jus t a smal l sampl e o fth e comment s SeaPor tha s receive d fro m ou rcustomer s an d communit ypartners : Ou rEssentia l Ai rServic e Communit yPartner s

" / understan d th e importanc e o fhavin g dependable , reliabl e ai rsen/ic e wit h a n affordabl e cost

. No t onl ywil l SeaPor t Airline s mee t thes e needs , bu texce l b yprovidin g grea tcustome rservice , 3 hig h leve l o fcommunit yinvolvement , an d a n eagernes s t o becom e a communit ypartner"

.

- Luc i Larso n Forme rMayo r& Owne ro f Actio n Trave l Salina , K S

"Sout h Arkansa s Regiona l Airpor t an d th e entir e South-centra l Arkansa s regio n suffere d fro m th e los s o fai rservic e previousl yprovide d b yfvles a Airline s i n th e Sprin g o f2008

. Unreliabl e sen/ic e an d a poo rschedul e wer e alread ynegativel yimpactin g enplanement s befor e Mes a pulle d out , bu t a t tha t point , th e neares toptio n fo rai rsen/ic e o fan ykin d wa s almos ta tw o hou r driv e away
. Afte rsortin g throug h application s fro m man ydifferen tintereste d carriers , th e E l Dorad o Airpor t Commission , alon g wit h E l Dorado' s Mayor , chos e SeaPor tt o restor e ai rservic e t o Sout h Arkansas

. Thi s wa s th e beginnin g o fa grea tpartnershi p betwee n SeaPor tan d ou r loca l community

. "Workin g wit h SeaPor t ha s bee n nothin g bu ta pleasur e fro m th e botto m t o th e to p o fthei r organization , an d thei rcommitmen t t o excellenc e shine s throug h th e glowin g comment s tha tI hea rfro m peopl e wh o fl ywit h them

. I n additio n t o hearin g comment s fro m others , I hav e flow n SeaPor t o n severa l occasions , an d hav e com e awa yfro m th e experienc e thinkin g 'Thi s is ho w al l ai rservic e shoul d bo. "

- Jos h Zylk s Airpor tManage r Sout h Arkansa s Regiona l Airpor t (Goodwi n Field )

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# «-j a

Octobe r14.201 1 

# SEA-rPQR T

rAI R Lir j fb

"Easter n Orego n Regiona l Airpor t a t Pendleto n ha d bee n strugglin g sinc e schedul e change s followin g 9/1 1 sen/e d b ya carrie rflyin g 3 7 sea taircraft

. Lo wpassenge rcoun tattribute d t o poo r schedule , whic h the n contribute d t o poore rpassenge rcount

. Th e carrier' s solutio n wa s t o brin g i n large raircraf t an d fl yt o a differen t hub

. Th e Airpor tan d communit ybalke d a tthi s suggestio n an d wen t i n searc h o falternatives

. Th e solutio n foun d throug h th e EA S proces s wa s SeaPor tAi r flyin g a 9 passenge rPilatus

. Th e passenger s hav e welcome d th e ne wservice , muc h bette r schedule , an d ar e elate d wit h 'n o securit ycheck ' an d stan d b ytime

. Passenger s toda ywil l say , 7 lov e th e sen/ice' , 'grea t custome rsen/ice, ' an d 'I' m sur e gla d I finall ytrie d it , caus e I'l l b e back ' "I n ou rparticula rmarket , th e 9 passenge raircraf ti s perfect , an d SeaPor tAi rprovide s th e schedule , th e professionalism , an d custome rservic e w e nee d an d desire. "

- Larr yDalrympl e Airpor tManage r Pendleto n Regiona l Airpor t

Ou rCustomer s 'Ti^ o hour s befor e th e fligh t I booke d m yticke tt o Memphi s fro m Ho tSprings

. Wow ! Wha ta surprise : i t wa s simple , convenient , grea tprice , an d impeccabl e sen/ice

. I tfa rexceede d m y expectation s an d I wil l b e flyin g t o Memphi s o n SeaPor tAirline s instea d o fdrivin g fro m no won
. Th e custome rservic e wa s fabulous! "

- Rut h An n Smit h Custome r(fle wfro m Ho t Spring s t o Memphis )

"M yhusban d an d I recentl yha d t o mak e a fas ttri p t o Dalla s fo rth e funera l o fa dea rfriend

. I wa s no t intereste d i n makin g tha t driv e ove ra fas tweekend

. The n I remembere d tha tSeaPor t ha d recentl ystarte d flight s betwee n Ho tSpring s an d Dallas

. I calle d SeaPort , Ji m an d Bo b wer e s o quic k t o ge t u s booked , las t minut e s o w e coul d fl ydow n an d atten d th e funera l an d visi twit h famil yan d friend s tha t w e don' t ge t t o se e veryoften

. Everyon e wa s s o friendly , helpfu l an d professional

. I twa s a drea m trip , eve n t o atten d a funeral

. Th e pilo t goin g dow n wa s s o kind

. Whe n h e foun d ou ttha tm yhusban d ha d bee n a bal l turre t gunne ri n WWII , h e gav e hi m a se t o fheadphone s s o h e coul d liste n t o th e communicatio n betwee n th e pilot s an d th e ai rtraffi ccontrollers

. T o sa yth e least , m yhusban d wa s impressed

. I t wa s suc h a blessin g t o hav e bee n take n car e o fi n suc h a kin d an d professiona l manner , especiall yunde rth e circumstance s o fou rtrip

. Than k you , Jim , Bob , Chris , Doug , Rodne yan d Michael. "

- Catherin e Marti n Custome r(fe wfro m Ho tSpring s t o Dallas )

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# SEA#PDR T

rAI R LI N E S

'A s a recen t flye ro n SeaPort , I wante d t o pas s o n th e grea texperienc e I had

. I wa s headin g t o Ho t Springs , A R t o help-wit h fir e an d aviatio n managemen ti n th e Arkansa s •Oklahom a Interagenc yCoordinatio n Center

. I n Memphis , nobod ya tDelt a kne wwher e t o direc tme
. SATO , th e governmen t trave l people , pu t m e i n touc h wit h you roffice

. The ycam e righ tove ran d picke d m e up
. Bot h th e ma n wh o picke d m e u p i n th e va n an d th e woma n wh o checke d m e i n wer e ver ynice

. Whe n w e wer e read yt o go , th e fligh tcre wKeit h an d Jerem ywer e ver yprofessional , bu t ha d a nice , eas yattitude

. Onc e i n Ho tSprings , w e wer e to o lat e t o pic k u p m yrenta l car , an d I wa s gettin g read yt o cal l a cab

. Whe n the yrealize d wha twa s goin g on , the ydrov e m e t o th e hotel ! I fI coul d summariz e m yexperienc e wit h SeaPor tAirlines , i twoul d b e tha tyo u exceede d m y expectation s i n ever ywa ypossible

. You rstaf fwa s tremendou s an d reflect s extremel ywel l o n you rairline

. Wit h peopl e lik e them , you rairlin e wil l succee d an d grow ! Thank s fo rth e service

. Clayto n Cambli n Custome r(fle wfro m Memphi s t o Ho t Sphngs )

" I hav e neve rha d suc h a positiv e experienc e connecte d wit h an yairline

. I rea d abou tSeaPor t Ai rlas t Octobe rwhe n the yopene d th e Mid-Sout h Route , bu tdidn' thav e th e chanc e t o fl yunti l March

. Usuall yth e drea d o fth e proces s come s the n yo u jus tgri n an d bea rit : however , wit h SeaPor t Ai rI coul d arriv e 1 5 minute s early

. Th e hassl e fre e n o TS Ais wonderfu l an d mad e m e fee l special

. I hav e flow n twic e i n th e las t2 month s an d th e custome rservic e fro m star tt o finis h is outstanding

. I wil l b e a regula rcustome ran d hav e alread yrecommende d th e airlin e t o severa l associates

. Than k

you , SeaPor t Air , fo rmakin g m e fee l lik e a queen! "

- Catherin e Marti n Custome r(fe wfro m Memphi s t o Harrison )

" I wan t t o le t yo u kno wtha t Alan , th e owner , an d I wer e stuc k i n th e horrendou s traffi cgettin g t o th e airport

. You rpeopl e calle d t o se e wher e w e wer e at

. Calle d a fe wtime s t o tryan d ge tu s ou t o fth e ja m - whic h wa s impossible , w e wer e to o fa rfro m th e Gatewa yan d w e alread yha d bee n o n th e roa d 1 'Ahours

. Di d manag e t o brea k fre e takin g 10 2 ( I think ) an d calle d clos e t o th e Embass yt o le t the m kno ww e wer e jus ta minut e awa yan d the yhel d th e plan e fo rus! ! Amazin g an d kudo s t o you rteam! ! I hav e bee n tellin g everyon e o fth e stella rcustome rservic e an d yo u wil l b e ou rfligh t o fchoic e goin g forward. "

- Joann e Boswort h Custome r(fle wfro m Portlan d t o Seattle )

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# SEA#PDR T

'Fo rtw o decade s I hav e bee n pickin g m ymothe ru p a tth e airpor tan d fo rtw o decade s I hav e bee n me t wit h th e defeated , hang-do g loo k tha tth e ordea l o fai rtrave l ha s give n he rI gues s i t prett ymuc h doe s i t t o al l o fus , bu t (a s sh e i s wel l int o he r80's ) I worr yabou tth e tol l i ttake s o n he rmor e an d mor e lately

. "Whe n I picke d he ru p toda yfro m he rSeaPor tfligh tK5232 5 fro m Dallas , an d sa wsh e wa s smiling , yo u coul d hav e knocke d m e ove rwit h a feather ! Sh e couldn' tsto p ravin g abou tho w pleasan t th e fligh t was
. Le t m e b e clear

. M ymothe ris a tough-as-nail s Mid-wester n Yanke e fro m th e ol d schoo l wh o ha s bee n aroun d th e worl d a coupl e o ftime s sinc e th e lat e 1940's

. Sh e doesn' t besto widl e prais e an d sh e seldo m raves
. "Sinc e i t wa s a 9-seate rplan e tha t ha d t o sto p fo ra bathroo m break , I ca n onl yconclud e tha ti t wa s th e abov e averag e servic e sh e receive d fro m you rstaff

. She , i n fact , sai d a s much

. Fro m th e ticke t counte ri n Dalla s t o th e rid e sh e go tt o th e mai n termina l i n Memphi s sh e wa s impressed

. Sh e eve n like d th e wa ysh e wa s aske d t o tur n of fhe rmobil e phon e an d th e hel p sh e wa s give n doin g s o (she' s no t a bi g techie)

. "I' m i n th e servic e industr ymysel fan d I kno who wofte n complaint s com e through

. I jus twan tt o b e sur e t o le t yo u kno who wwel l everyon e di d o n thi s flight

. I n th e future , I wil l loo k t o SeaPor t firs t fo rm ytrave l need s an d wil l sprea d th e goo d wor d t o m yfriends

.

"Asmil e an d a kin d wor d g o a lon g wa yy'all

. Than k yo u fo rgettin g thi s on e s o right. "

- Mar k Davi s Peterso n Custome r(fle wfro m Dalla s t o Memphis )

"Than k yo u s o muc h fo rsuc h grea t service

. I ha d a tigh ttimefram e flyin g i n fro m th e Eas tCoas t yesterda yan d wa s no t sur e I coul d mak e th e Boise-Pendleto n flight

. You rstaf fresponde d vi a emai l an d I eve n receive d a cal l t o m ycel l a s I go tt o th e SeaPor ttermina l des k i n Boise

. I mad e th e fligh t an d reall yappreciate d th e carin g service. "

- Murie l Shau l Custome r(fle wfro m Bois e t o Pendleton )

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. 201 1 

# SEA#PDR T

rAI I fLI N E S


# Introductio n t o Servic e Proposal s

SeaPor t Airline s i s offerin g eac h communit ymultipl e servic e option s tha tprovid e acces s t o th e nationa l ai rtransportatio n syste m vi a mor e tha n on e hu b airport

. 

# Overvie wo fSeaPort Airline s Servic e Option s Eac h Communit yProvide d Multipl e Acces s Point s t o th e Nationa l Ai rTransportatio n Syste m

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# SEA#PDR T

rAI fi LI N t S

Th e enhance d optio n o fmultipl e acces s point s resul ti n greate rchoic e fo rconsumer s an d wil l assis t eac h communit yi n thi s proposa l t o maximiz e th e leve l o ftraffi cretentio n a tthei rloca l airport

. Thi s i s base d o n ou rexperienc e i n Arkansa s communities , wher e th e additio n o fDalla s and/o rKansa s Cit yt o existin g Memphi s servic e resulte d i n significan ttraffi cgrowth

. W e strongl y believ e simila rresult s wil l b e achieve d i n th e communitie s i n thi s proposal

. SeaPort' s servic e proposal s ar e consisten twit h th e Department' s Reques tfo rProposal s whe n i t states : "W e ma ysubsidiz e additiona l frequencie s i fth e affecte d communit yi s serve d i n conjunctio n wit h anothe rcommunity." ^ Equall ya s important , however , th e proposal s "simultaneousi ysatisf yth e community' s need s an d minimiz e taxpaye rexpenditures

. "^ Th e servic e level s an d connectin g opportunitie s a teac h hu b ar e outline d below

. Memphi s Internationa l Airpor t (MEM ) Memphi s Internationa l Airpor t i s a majo rconnectin g hu b fo rDelt a Ai rLines , offerin g one-sto p connectin g servic e t o virtuall yever ymetropolita n are a i n th e Unite d States , servic e t o Amsterda m whic h function s a s majo rEuropea n hub , an d Toronto

. I n additio n t o Delta , virtuall y ever ymajo rairlin e bran d serve s Memphis

. 

# Nonsto p Destination s fro m Memphi s Internationa l Airport Octobe r201 1

SOURCE : GAG

'Order2011-9-5

. p
. 6 'Orde r2011-9-5 , p. 7

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. 201 1 

# SEA#PDR T

r AI R LI rJ E S
Delta' s fligh t schedul e a t ME M i s structure d int o thre e distinctiv e connectin g bank s and , i f selecte d t o provid e servic e I n thes e communities , SeaPor tI s committe d t o providin g eac h communit ywit h flight s tha t ar e wel l time d fo rconnections

. Delta's-fligh tschedul e atME M i s illustrate d o n th e nex t pag e an d ca n b e compare d wit h th e individua l marke tschedul e proposal s provide d late ri n thi s document

. 

# Delt a Ai rLine s Connectin g Ban k Structur e at Memphi s Internationa l Airport

October 201 1

< ^-\*5 * ' ^ < ^ < ^ - ^ '{ ^ ' ^ ^ < ^ < ^ 'K ^ ^ ^ ^ - ^ ' ^ 4 fc^' ^' ^ % ^ ##N^ ' '^ ' #u^ ' ##'\^ ' #< f # ' ^* ' #'b *
•D LArrival s D LPeparture s
SOURCE ' Delt a schedule s accesse d vi a delt a co m Loui s Armstron g Ne wOrlean s Internationa l Airpor t(MSY ) Ne wOrlean s i s a majo rcommercia l cente rfo rth e Souther n Unite d States , includin g th e financial , medical , educational , legal , energy , an d governmen tsectors

. Tourism , o fcourse , i s a majo rcomponen t o fth e Ne wOrlean s econom yan d i fawarde d th e EA S contrac ti n thes e markets , SeaPor t woul d endeavo rt o offe rweeken d package s t o thes e communities ' residents

.

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# SEAPOR T

rAI H L I rj t b
Loui s Armstron g Ne wOrlean s Internationa l Airpor toffer s consumer s connectin g opportunitie s t o ove r3 5 airport s o n a nonsto p basis , a s wel l a s acces s th e networ k o fever ymajo rairlin e an d eac h o fth e thre e majo rgloba l alliances

.



# Nonsto p Destination s fro m Loui s Armstron g Ne wOrlean s Internationa l Airport Octobe r201 1

SOURC E OAG O fparticula rinteres t t o th e communitie s shoul d b e Ne wOrleans ' dynami ccompetitiv e environmen t resultin g fro m a larg e percentag e o flo wfar e carrie rservice

. JetBlue , Frontier , AirTran , an d Southwes t offe rnearl yhal fo fth e departin g seat s fro m MS Yeac h day.' ° Thi s result s i n th e low-far e brand s settin g th e ceilin g o n fare s t o an d fro m Ne wOrlean s suc h tha t eve n whe n a passenge rconnect s t o a legac ybran d carrie r{i.e. , Delta , American , United , etc.) , the ywil l realiz e th e benefit s o fsuc h pric e competition

. Th e impac to fthi s pric e competitio n i s evidence d b yth e graphic s o n th e nex tpag e whic h sho wthat , o n average , consumer s a tNe w Orlean s pai d 4.2 % les s tha n th e nationa l averag e i n al l markets

. Th e sam e grap h note s tha t consumer s a tMemphi s pai d a far e premiu m o f22.8 % abov e th e nationa l average , a realit ytha t i s no t inconsisten ti n a hu b marke ttha ti s dominate d b ya singl e carrie rbu t whic h i s afforde d multipl e nonsto p flight s t o numerou s destinations

. I n thi s context ,

Whil e SoaPor l Airline s {alon g wit h ever yothe rU S

. base d airline ) doe s no l hav e a n interlin e ticketin g an d baggag e agreemen t wit h Southwes t Airlines , Interne t savv yconsumer s figured ou tlon g ag o ho wl o buil d "en d t o end " connectin g itinerarie s wit h thi s carrier , a s wel l a s others

. Thi s ha s bee n validate d i n a numbe rofou rothe rEA S market s tha t ar e linke d wit h airport s serve d b ySouthwes t (a s wel l a s othe rlow-far e airlines)

.
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# SEA#PDR T

l AI H L I f J £S
SeaPor t Airline s i s providin g passenger s wit h th e choic e o faccessin g a legac ycarrie r dominate d hu b o raccessin g a low-far e carrie rdominate d hu b wher e lowe rfare s t o connectin g market s ca n b e purchased

.



# Capacit ybyBusines s Mode l Loui s Armstron g Ne wOrlean s Internationa l Airport October 201 1

Legac y 58 %

SOURCE : OAG it h 

# 4 Quarte r201 0 Averag e Far e Premium s (Discounts ) Ne wOrlean s vOthe rHub s i n Regio n
25.0 %

2 0 0 %

1 5 0 %

10.0 %

5.0 %

0 0 %

- 5 0 %

.1 0 0 % J 22 8%



# •

Al l Market s wiir i Mor e Tha n 2 0 PassengGr s pe rDa y



# n 

# H 1 

# B I H 1 

# 1

H H A.2 %

.^-^ ^ 

### .v- ^

-•>?' ' .^^

^ ^ 

# r .<^ "
^- * .rf

- .^ * ,^ ^

^ ^ SOURCE : U.S

. Departmen t o fTransportation , Domesti cAirlin e Fare s Consume rRepor t

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# SEA#PDR T

rAI H LI r j E S

Nashvill e Internationa l Airpor t (BNA ) Nashvill e offer s acces s t o legac ycarrie rnetwork s an d low-far e airlines

. Durin g Octobe r2011 , th e carrier s servin g Nashvill e Internationa l Airpor twil l offe ra n averag e o f17 1 dail ydeparture s t o 4 7 nonsto p destination s i n th e Unite d State s an d Canada

. 

# Nonsto p Destination s fro m Nashvill e Internationa l Airport Octobe r201 1

SOURCE

. OAG Southwes t i s th e dominat e carrie ra t Nashville , providin g ove r40 % o fth e dail ydepartin g seat s a t BNA

. Southwesl' s servic e is complemente d b yFrontie rAirlines , whic h provide s servic e t o it s hub s a t Milwauke e an d Denver , wit h furthe ronwar d connections

. Passenge rTraffi cProiection s T o develo p projection s o ftraffi can d revenu e fo reac h communit yi n th e proposal , a s wel l a s th e resultan t subsid yrequests , SeaPor t Airline s utilize d a Qualit yServic e Inde x(QSI ) forecastin g methodolog ytha t consider s frequenc ylevels , connectin g options , bran d (i.e. , independen tv code-share) , aircraf t size , averag e fares , etc

. Thi s approac h result s i n SeaPort' s traffi cforecast s a teac h o fth e communitie s being , i n mos t cases , belo wthos e o frecen t year s a s provide d b yth e Departmen ti n Orde r2011-9-5

. Th e grap h o n th e nex t pag e compare s th e reporte d traffi ct o SeaPort' s forecas tdurin g th e firs tyea r o fservic e i n eac h community

.

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. 201 1 

# SEA#PDR T

7 AI R LI rj t : i , 

# Marke t Leve l O& D Traffi cComparison s Recen t Year s vSeaPort-Airline s Proposa l

30,00 0

25.00 0

20.00 0 •

15.00 0

10.00 0 -

5.00 0 -

0 4^^J « •Y E Ma y31 , 200 9 BY E Ma y31

. 201 0

•Y E Ma y31 , 201 1 nSeaPor t Optio n # l DSeaPor l Optio n U 2 a SeaPor t Optio n U 3

Tupel o (TUP ) Muscl e Shoal s (MSL ) Greenvill e (GLH ) Laurel/Hattiesbur g (PIB ) W e rais e thi s poin t becaus e durin g communicatio n wit h th e EA S Divisio n relate d t o anothe r Docket , SeaPor t Airline s wa s advise d tha tth e Department' s calculatio n o fwhethe ra proposa l meet s statutor yrequirement s is base d o n actua l passenge rcount s an d no ta carrier' s forecast

. Notwithstandin g tha t applicatio n o fnumbers , w e believ e th e forecast s whic h w e hav e develope d represen t a reasonabl e estimat e o ftraffi ctha twil l b e generate d i n eac h marke tan d therefor e provide s th e basi s fo rth e proposal s containe d herei n whic h "simultaneousl ysatisf yth e community' s need s an d minimiz e taxpaye rexpenditures."^ ^

DOTOrder2011-9-5

. p , 7
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. 201 1 

# SEA^PDR T

rAI h i LI N t : b 

# Proposal : Greenville , Mississipp i (GLH )

SeaPor t Airline s i s offerin g th e communit yo fGreenville , Mississipp i (Mid-Delt a Regiona l Airport ) thre e servic e option s a s illustrate d b yth e representativ e schedule s below;' ^

GL H Optio n # 1 2 1 Weekl yRoundtrips : Greenvill e - Memphi s

(Standalon e Prooosa H Depa n Am wFrequenc y Slop s

Fro m Greenvill e t o Memphi s 6:35a m 7:30a m Dail y 1 1 20a m 12.15p m Darl y .i.^Sp m 5 40p m Dail y 0 0 0 Depa n Aniv e FreijuerK y Slop s Fro m Mempfii s l o Gieenull e 8 OOa m 3'30p m 7 35p m 8 •55a m Dail y

4 25p m Dail y 8-30p m Dail y 0 0 0

GL H Optio n # 2 1 3 Weekl yRoundtrips : Greenvill e - Memphi s 1 3 Weekl yRoundtrips : Greenvill e - Ne wOrlean s

(Standalon e Prooosal i Depat l Am\ e FreQuenc ySlop s Depa n Arriv e FrequencySrop s Fro m Greenull e t o Memphi s 635a m 7 30a m EiSu r I.OSp m 2 00p m Dail y 0 0 Fro m Greeni^ll e l o Ne wOrlean s 9.10a m 1 0 45a m Dail y 4.40pn i 6 15p m E«Sa 1 0 0 Fro m Mempni s l o Greenull e

8 OOa m 8 55a m Dail y 3 30p m 4 25p m ExSa i 0 0 Fro m Ne wOrlean s l o Greenvill e 11:15a m 1250p m Dail y 6 45p m 8 20p m ExSa i 0 0

GL H optio n U 3 1 9 Weekl yRoundtrips : Greenvill e • Memphi s 7 Weekl yRoundtrips : Greenvill e - Ne wOrlean s ttinaen t o n SeaPor t Bein a Selecte d t o Serv e Laurel/Hatliesbura

. MS ) GL H (Greenvill e ) /• ' 

### \^-

-

• ^ ME M (Memphis )

Depa n Arnv e Frequenc y Stop s

Frorr > Gieenvall e l o Memphi s 6.3&3 m 7:30a m ExSu n 1 05p m 2.00p m Dail y 4:45p m 5 4Dp m E<Sa l 0 0 0 Fro m GreenVIIt e t o Ne wOrlean s 9.10a m 1 0 45a m Daii v 0 Depar tAni\ e Frequenc ySlop s Fro m Memphi s t o Greenvtll e 8.00a m 8:55a m Dail y0 33Dp m 425p m EnSa t0 7:35p m 8 30p m EnSa t0 Fro m Ne wOrlean s t o Greenvill e 11:153 m 12.50p m Dail y0 J ^ MS Y(Ne wOrleans)*-^*^.

- \

. ^J—-

—^ fir- j '•*•• • J * '

Schedule s betwee n Memphi s an d Greenvill e ar e time d t o mee tDelt a Ai rLines ' connectin g banks , facilitatin g trip s throughou t tha t carrier' s globa l network

. ^ ^ Not e tha t Optio n # 1 an d Optio n # 2 ar e standalon e proposals

. Optio n # 3 i s a contingen t proposal , i n thi s cas e bein g contingen to n SeaPor tAirline s bein g selecte d t o serv e Laurel/Hattiesburg , M S (se e proposa l below)

. Thi s contingenc yis intende d t o eliminat e th e potentia l o fSeaPor t bein g require d t o ope n a statio n a t Ne wOrlean s fo ra singl e dail ydepartur e whic h would , i n turn , requir e a highe rleve l o fsubsidy

.

I n al l cases , th e sctiedule s provide d i n thi s proposa l ar e intende d t o illustrat e Iti e typ e o f schedul e ttia t SeaPor t woul d provid e Actua l sctiedule s wil l b e develope d afte rconsultin g wilt i eac h community

.

' ^ Se e grapt i o n pag e 17

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# SEA+*'POR T

r. M R LI i- l t S


### SeaPor t Airlines , Inc

. GL H Optio n # 1 2 1 Weekl yRoundtrips : Greenville , M S - Memphis , T N

(Standalon e Proposal ) Operatin g Projection s A\erag e Secto rLengt h (sm ) Schedulei d Departure s Schedule d Bloc k

Hour s Projecte d Completio n Facto r Projecte d Complete d Departure s Projecte d Complete d Bloc k Hour s Passenge rProjection s Projecte d Passengers Passengers pe rDeparture Projecte d A\erag e Fare Re\enu e Passenge rMile s (RPMs ) A\silabl e Sea l Mile s (ASMs ) Projecte d Loa d Facto r Financia l Projection s Revenue s Passenge rTicke t Re\enue s AncillaryRe\enue s Year l Yea r2

Tota l Expense s Fligh t Operation s Aircraft Ownership/Leas e Fue l & Oi

l Sale s & [Marketin g Traffi cServicin g Insuranc e fvlaintenanc e Sub-Tota l - Direc

t Indirect Tota l Expense s Projecte d Operatin g Prof)t/(Loss ) Subsid yCalculation s Operatin g Los s Economi cRetu m @ 5 % 122 2,18 4 2,002. 0 98.0 % 2,14 0 1,962. 0

9.56 4 4. 5 $51.7 5 1,166.80 8 2,350,07 1 49.6 %

$494,93 7 $14,84 8 $509,78 5 $170,17 0 $180,00 0 $551,35 1 $9,00 9 $259,48 1 $40,04 0 $365,62 0 $1,575,67 1 $157,56 7 $1,733,23 8 (31.223,453 ) $1,223,45 3 $86,66 2 122

2.18 4 2,002. 0 98.0 % 2,14 0 1,962. 0

9.66 0 4. 5 $52.5 3 1,178,47 6 2,350,07 1 50.1 %

$507,38 5 515,22 2 S522.60 6 $173,57 3 $180,00 0 $578,91 8 S9,18 9 $261,22 4 $40,84 1 $376,58 9 $1,620,33 4 $145,83 0 $1,766,16 4 ($1,243,558 ) $1,243,55 8 $88,30 8 $1,310.11 5 $1.331.866 1 [Require d Subsid y Subsid ype rDeparture Subsid ype rPassenge r $612.1 1 $136.9 8 $622.2 7

$137.8 8

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# SEA^PDR T

r i I R LI N E S


### SeaPor tAirlines , Inc

. GL H Optio n # 2 1 3 Weekl yRoundtrips : Greenvill e -Memphi s 1 3 Weekl yRoundtrips : Greenvill e - Ne wOrlean s

(Standalon e Proposal ) Operatin g Projectiori s A\erag e Secto rLengt h (sm ) Schedule d Departure s Schedule d Bloc k

Hour s Projecte d Completio n Facto r PnDJecte d Complete d Departure s Projecte d Complete d Bloc k Hour s Passenge rProjection s Projecte d Passenger s Passenger s pe rDepartur e PnDJecle d Averag e Far e Revenu e Passenge rMile s (RPMs ) Availabl e Sea l Mile s (ASMs ) Projecte d Loa d Facto r Financia l Projection s Revenue s Passenge rTicke t Revenue s Ancillar yRe\enue s Yea r1 Yea r2

Tota l Expense s Fligh tOperation s Aircraf t Ownership/Leas e Fue l & Oi l Sale s & Marketin g Traffi cSenicin g Insuranc e Maintenanc e Sub-Tota l - Direc t Indirec t Tota l Expense s Projecte d Operatin g Profit/(Loss ] Subsid yCalculation s Operatin g Los s Economi cRetur n @ 5 % [Require d Subsid y 18 3 2,70 4 3,380. 0 98.0 % 2.65 0 3,31 2 4

11.65 6 4. 4 $72.4 3 2,133,04 8 4.364,41 8 48.9 %

$844,23 2 $25,32 7 $869,55 8
$281,55 4 $176,40 0 $912,23 5 $15,21 0 $432,87 0 $66,24 8 $594,76 2 $2,479,27 9 $247,92 8 $2,727,20 7 ($1,857,649 )
$1,857,64 9 $136,36 0 18 3 2.70 4 3.380. 0 9 8 0 % 2.65 0 3.312. 4

11.77 3 4. 4 $73.5 2 2,154,37 8 4,364,41 8 49.4 %

$865,46 4 $25,96 4 $891,42 8
$287,18 5 $176,40 0 $957,84 7 $15,51 4 $435,84 3 $67,57 3 $612,60 5 $2,552,96 7 $229,76 7 $2,782,73 4 ($1,891,306 )
$1,891,30 6 $139,13 7 $1,994,00 9 $2,030,44 3 Subsid ype rDepartur e Subsid ype rPassenge r $752.4 8 $171.0 7 $766.2 3

$172.4 7

DO TOST-2000-785 6 DOT-OST-2008-020 9 DOT-OST-2001-1068 5 DOT-OST-2009-030 5 Page[2 4Octobe r14 , 201 1 

# SEA^PDR T

I R LI N KS


### SeaPor t Airlines , Inc

. GL H Optio n # 3 1 9 Weekl yRoundtrips : Greenvill e - Memphi s 7 Weekl yRoundtrips : Greenvill e •New ^ Orlean s (Contingen t o n SeaPor

t Bein g Selecte d t o Serve Laurel/Hattiesburg , MS )
Operatin g Projection s Averag e Secto rLengt h (sm ) Schedule d Departure s Schedule d Bloc k

Hour s Projecte d Completio n Facto r Projecte d Complete d Departure s Projecte d Complete d Bloc k Hour s Passenge rProjection s Projecte d Passenger s Passenger s pe rDepartur e Projecte d Averag e Far e Revenu e Passenge rMile s (RPMs ) Availabl e Sea tMile s (ASMs ) Projecte d Loa d Facto r Financia l Projection s Revenue s Passenge rTicke t Revenue s Ancillar yRevenue s Year l Yea r2

Tota l Expense s Fligh t Operation s Aircraf t Ownership/Leas e Fue l & Oi l Sale s & Marketin g Traffi cSen^cin g Insuranc e Maintenanc e Sub-Tota l - Direc t Indirec t Tota l Expense s Projecte d Operatin g Profit/(Loss ) Subsid yCalculation s Operatin g Los s Economi cRetur n 0 i 5 % 15 5 2,70 4 2,964. 0 98.0 % 2,65 0 • 2.904. 7
11,16 2 4. 2 $64.6 9 1,728,39 3 3.692.96 9 46.8 %

$722,09 7 $21,66 3 $743,76 0
$246,90 1 $245,00 0 $799,96 0 $13,33 8 $377,04 2 $58,09 4 $481,12 1 $2,221,45 7 $222,14 6 $2,443,60 2 ($1,699,842 )
$1,699,84 2 $122,18 0 $1,822,02 3 $687.5 8 $16 3 2 3 15 5 2,70 4 2.964, 0 98,0 % 2,65 0 2,904. 7
11,27 4 4, 3 $65.6 6 1,745,67 7 3,692,96 9 47,3 %

$740,25 8 $22,20 8 $762,46 5
$251,83 9 $245,00 0 $839,95 8 $13,60 5 $379,58 4 $59,25 6 $495,55 5 $2,284,79 7 $205,63 2 $2,490,42 9 ($1,727,964 )

. $1,727,96 4 $124,52 1 $1,852,48 5 $699.0 7 $164,3 2 Require d Subsid y Subsid ype rDepartur e Subsid ype rPassenge r

DO TOST-2000-785 6 DOT-OST-2008-020 9 DOT-OST-2001-1068 5 DOT-OST-2009-030 5 Page|2 5Octobe r14 , 201 1 

# SEA#DR T

rAI H L I N t " i 

# Proposal : Tupelo , M S (TUP )

SeaPor t Airline s i s offerin g th e communit yo fTupelo , Mississipp i (Tupel o Regiona l Airport ) thre e servic e option s a s illustrate d b yth e representativ e schedule s below

. Not e tha tth e flight s t o an d fro m Memphi s ar e aligne d wit h th e hour s o fDelta' s connectin g bank s a ttha tairport.^' '

TU P Optio n # 1 1 8 Weekl yRoundtrips : Tupel o - Memphi s 2 6 Weekl yRoundtrips : Tupel o •Nashvill e

(Standalon e Proposal ) Depa n
6 30a m M-50,n m

• J 55pn t
7 OOa m 1035a m 1:5 0 c m 3-45p m Amv e

Fro m Tupel o 7.10a m 12.30p m 5.35p m Fro m Tupel o 8.l0a m 11:35a m 300p m 4 45p m Frequenc y

1 0 Memphi s EjiSu n EKSU H E.Sa t [ p Nashull e E'Su n Dail y Dail y E.Sa l Slop s

0 0 0
0 0

. 0 0 Depar t A m « F rcque n cv Slop s FrT>m Memphi s I D Tupel o 9 30a m 2 50p m BOOp m 10:IOa m EiSu n

3-30pr i E>Sa l 8 40pn i E.Sa l 0 0 0 Fro m Nashvill p l o Ti«»l o 8 40a m 12.15p m 3.30p m S.lSp m 9.50a m EiSu n

1:25p m Dail y 4.40p m DaM

y 5.25o m E.Sa t 0 0 0 0 TU P Optio n 1)2 1 9 Weekl yRoundtrips : Tupel o - Memphi s 1 9 Weekl yRoundtrips : Tupel o - Nashvill e 2 1 Weekl yRoundtrips : Tupel o - Ne wOriean s (1-sto p vi a PIB ) (Conlinqen t o n SeaPor t Bein g Selecte d t o Serv e Laurel/Hattiest}u r Depa i Am * Fruquenc ySloo s Depa n 

# . . - 'Y

- BNAINlthvill* )

Fro m Tupel o t o Memjyi s 6:30a m 7 10a m EiSu n 0 1 2 00p m 12.40p m Dail y0 SOOp n 6 40p m E>Sa l 0

Fro m Tupel o l o Nash'^ll e 6 45a m 7-5Sa m EnSu n 0 10.25a m ir35a m Dail y0 SJOp m 7.50p m E-Sa t 0 Fro m Tupel o l o Urn /

Ortean s (M a PB ) 1 0 25a m 12.45p m Dail y1 1:30p m 3 50p m Dail yI 3 JOp m 6 05p m Dail yl

. Fro m Memphi s L o Tupel o 9.303 m 1 0 10a m EiSu n 0 2.45o m 3.25p m Dail y0 eoOp m 8 40p m EiSa r0

Fro m NashMlt e t o Tupat o 8 35a m 9 35a m EiSu n 0 12:05p m l:15p( n Dail y0 8 10p m 9 20p m E'Sa l 0 Fio m Nv wOiean s t o Tupel o (v a PIB ) 9 25a m n-45a m Dail y] 325o m 5 45p m Dail yi 415o m 6 25p m Dail yi

SeaPor t recognize s th e importan t rol e tha tToyot a i n th e Tupel o economy
. Wit h tha tin.mind , w e not e tha t th e thre e hu b option s i n thi s proposa l affor d connection s t o point s throughou tNort h Americ a wher e Toyot a ha s majo roperation s and/o rsuppliers

. Optio n # 1 i s presente d a s a standalon e proposa l wherea s Optio n # 2 is contingen to n SeaPor t bein g awarde d th e EA S contrac t a t Laurel/Hattiesburg , MS

. Fo rpurpose s o fcalculatin g subsid y requiremen t i n Optio n # 2 tha t include s one-sto p servic e t o Ne wOrlean s vi a Laurel/Hattiesburg :

•50 % o fth e direc t operatin g cost s o ffligh tsegment s betwee n Laurel/Hattiesbur g an d Tupel o hav e bee n allocate d t o Tupelo ;

•Remainin g cost s hav e bee n allocate d t o Laurel/Hattiesbur g (se e below) ;

Se e grapt i o n pag e 17

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•100 % o fth e revenu e generate d b ypassenger s travelin g betwee n Tupel o an d Ne wOrlean s ha s bee n allocate d t o th e Tupel o market ; an d

•Zer o traffi ci s forecas t betwee n Tupel o an d Laurel/Hattiesburg

. I t i s als o wort h notin g tha t Optio n # 2 ha s highe rfrequenc ylevel s tha n Optio n # 1 give n tha t Optio n # 2 involve s frequenc ybein g share d wit h Laurel/Hattiesburg

. Suc h proposal s ar e consisten t wit h th e Department' s Orde r2011-9- 5 whic h states : "iv e woul d conside r subsidizin g additiona l frequencie s a tan ycommunit yi fth e servic e w e linke d t o anothe ra community."^ ^

• p 6

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r - I H LI N t S


### SeaPor t Airlines , Inc

. TU P Optio n # 1 1 8 Weekl yRoundtrips : Tupelo , M S - Memphis , T N 2 6 Weekl yRoundtrips : Tupelo , M S - Nashville , T N

(Standalon e Proposal ) Operatin g Projection s A\«rag e Secto rLengt h (sm ) Schedule d Departure s Schedule d Bloc k

Hour s Projecte d Completio n Facto r Projecte d Complete d Departure s Projecte d Complete d Bloc k Hour s Passenge rProjection s Projecte d Passenger s Passenger s pe rDepartur e Projecte d A\erag e Far e Revenu e Passenge rMile s (RPMs ) Availabl e Sea tMile s (ASMs ) Projecte d Loa d Facto r Financia l Projection s Revenue s Passenge rTicke tRevenue s Ancillar yRe^nue s Yea r1 Yea r2

Tota l Expense s Fligh t Operation s Aircraf tOwnership/Leas e Fue l & Oi l Sale s & Marketin g Traffi cSerycin g Insuranc e Maintenanc e Sub-Tota l - Direc t Indirec t Tota l Expense s Projecte d Operatin g Profit/{Loss ) Subsid yCalculation s Operatin g Los s Economi cRetur n @ 5 % [Require d Subsid y 13 8 4,57 6 4,402. 7 98.0 % 4,48 4 4,314. 6
19,77 1 4. 4 $63.3 6 2,736.48 6 5,586,23 5 49.0 %

$1,252,59 2 $45,09 3 $1,297,68 5
$375,37 1 $329,28 0 $1,176,59 5 $15,40 9 $572,72 5 $86,29 2 $889,91 8 $3,445,59 2 $310,10 3 $3,755,69 5 ($2,458,010 )
$2,458,01 0 $187,78 5 $2,645,79 5 $589.9 9 $13 3 8 2 13 8 4,57 6 4,402. 7 98.0 % 4,48 4 4.314. 6

19.96 9 4. 5 $64.3 1 2.763,85 1 5.586,23 5 49.5 %

$1,284,09 4 $46,22 7 $1,330,32 2
$382,87 9 $329,28 0 $1,223,65 9 $15,71 8 $576,82 1 $88,01 8 $916,61 6 $3,532,99 0 $282,63 9 $3,815,62 9 ($2,485,307 )
$2,485,30 7 $190,78 1 $2,676,089 | $596.7 4 $134.0 1 Subsid ype rDepartur e Subsid ype rPassenge r

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SeaPor t Airlines , Inc

. T U P Optio n # 2 1 9 Weekl yRoundtrips : Tupelo , M S - Memphis , T N 1 9 Weekl yRoundtrips : Tupelo , M S - Nashville , T N 2 1 Weekl yRoundtrips : Tupelo , M S - Ne wOrleans , L A( 1 -sto p vi a PIB ) (Contingen to n SeaPor t Bein g Selecte d t o Serv e Laurel/Hattiesburg , MS ) Operatin g Projection s Averag e Secto rLengt h (sm ) Schedule d Departure s Schedule d Bloc k

Hour s Projecte d Completio n Facto r Projecte d Complete d Departure s Projecte d Complete d Bloc k Hour s Passenge rProjection s Projecte d Passenger s Passenger s pe rDepartur e Projecte d Awrag e Far e Re«nu e Passenge rMile s (RPMs ) Availabl e Sea t Mile s (ASMs ) Projecte d Loa d Facto r Financia l Projection s Revenue s Passenge rTicke tRe\enue s Ancillar yRevenue s Year l Yea r2

Tota l Expense s Fligh tOperation s Aircraf t Ownership/Leas e Fue l & Oi l Sale s & Marketin g Traffi cSerwcin g Insuranc e Maintenanc e Sub-Tota l - Direc t Indirec t Tota l Expense s Projecte d Operatin g Profit/(Loss ) Subsid yCalculation s Operatin g Los s Economi cRetur n @ 5 % 14 9 6,13 6 6,534. 7 98.0 % 6,01 3 6,404. 0

21.33 4 3. 5 $68.4 3 3,171.53 4 8,045.46 3 39.4 %

$1,459,85 5 $52,55 5 $1,512,40 9
$420,59 3 $248,57 6 $1,318,34 2 $22,87 1 $649,05 0 $73,86 7 $931,38 5 $3,664,68 5 $329,82 2 $3,994,50 6 ($2,482,097 )
$2,482,09 7 $199,72 5 $2,681,82 2 $445.9 8 $125.7 1 14 9 6,13 6 6,53 4 7 98.0 % 6,01 3 6.404. 0

21.54 7 3 6 $69.4 5 3.203.24 9 8.045,46 3 39.8 %

$1,496,57 0 $53,87 7 $1,550,44 6
$429,00 5 $248,57 6 $1,371,07 6 $23,32 9 $653,82 3 $98,62 2 $959,32 7 $3,783,75 7 $302,70 1 $4,086,45 8 ($2,536,011 )
$2,536,01 1 $204,32 3 $2,740,33 4 $45 5 7 1 $127.1 8 Require d Subsid y Subsid ype rDepartur e Subsid ype rPassenge r

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r AI H L I I'

J t S 

# Proposal : Laurel/Hattiesburg , M S (PIB )

SeaPor t Airline s i s offerin g th e communitie s o fLaure l an d Hattiesburg , Mississipp i (Hattiesburg

Laure l Regiona l Airport ) thre e servic e option s a s illustrate d b yth e representativ e schedule s below :

PI B Optio n n ^ 44 Weettl yRoundtrips : Laurel/Hattiesburg , M S - Ne wOrleans , L A (Standalon e Proposal ) [>pa n Fro m 5-45o m 7:55an i I D Oba m 1 2 30pr i 2 iOp m ASOp m 7 0 0 p m A m w

lauiTi)JH^Ilio < 6 3aa m 8.10a m 1 0 50a m 1:15p m 3.25pf n 535p m 7.J5pr n FreauefK ySioo s

bur n 1 0 No wOrloan s EiSu n 0 E>Su n 0 Dail y0 DaJ y0 Dail y0 E>5a l 0 E.SnlSu n 0 Depar t Amw ! Fro m Ne wOtioan s 6.55a m 9 05a m 11:30a m l-40p m 3-50p m 6 00p m 8 lOp m 7 40a m

9.50a m 1 2 15o m 2.25p m 4.35p m 6-^5p m 6 55p m Frequenc y

t o LaurpVHal l E.Su n E.Sj n Dail y Dail y Dail y £<Sa l EiSaiSu n Slop s

FiSDuit ) 0 0 0 0 0 0 0 PI B Optio n » 2 4 0 Weekl yRoundtrips : Laurel/Hattiesburg , M S - Ne wOrieans

. LA 13. 5 Weekl yRoundtrips : Laurel/Hattiesburg

. M S - Memphis , T N (1-sto p vi a TUP ) 6. 5 Weekl yRoundtrips : Laurel/HaRiesburg , M S - Nashville

. T N (1-sto p vi a TUP )

IContinaen l a n fip;tPfir tR^ln a S^lt^tc d t o Tuael o MS I Depar i Am\ cFrequenc ySlop s Fro m Laurol'Ha l tie s Dun g l o Ne * Orlean s GOOan t e 4Sa m E>Su n 0 a lOo m 6 55a m Dail y0 1 2 00p m 12:45p m Dail y0 2.15p m 3 00p m Dail y0 3 05p m 3-50p m Dail y0 5 ?0p m 6.05p m ExSa l 0 Fro m Lajra/Hal l IBS bur g l o Mompfii s (s- a TUP ! 102Sa m 12.40p m Dail yl 4-25p m 6 40p m Dail y1 Fro m La jml'Ha t lie s bur g l o Nash'^ll c|M a TUP ) 5.15p m 7.50p m E>Sa l 1 Depar tA-im o Frequenc ySiOO i Fro m Ne wOrloan s t o Laural/Halliosbur q 7 10a m /.55a m EjcSu n 0 9 25a m I0:l0a m Dajl y0 1-IOp m 1.55p m Dail y0 3 25p m 4
- iCC m Dail y0 4-15p m 500p m Dail y0 6.30p m 7.15p m ExSa l 0 Frp m Mompni s l o LaurOl/Hatticst^Ji ^ (si a TUP } 9.30a m 11:45a m EvSu n 1 2.45p m 5 05p m Dail y1 Fro m Nashnll e l o Laiirol/Halticsbur q tv a TUP ) 12.05p m J.SCO m Dail y1 BH A(Naitivilli r

TU P rfupalo )

MS Y|N« wOr\»tn\)4''^t:j-'- ' ^>I B (Hzttlciburg'Laurel ) 

# X

.

optio n # 1 I s a standalon e proposa l wherea s Optio n # 2 i s contingen to n SeaPor tAirline s bein g awarde d th e EA S contrac t a t Tupelo , MS

. Fo rpurpose s o fcalculatin g subsid yrequiremen t i n Optio n # 2 tha t include s one-sto p servic e fro m Laurel/Hattiesbur g t o Memphi s an d Nashville :

•50 % o fth e direc t operatin g cost s o ffligh tsegment s betwee n Laurel/Hattiesbur g an d Tupel o hav e bee n allocate d t o Laurel/Hattiesbur g fo rpurpose s o fcalculatin g subsid yrequirements ;

•Remainin g cost s o fthes e segment s hav e bee n allocate d t o Tupel o (se e above) ;

•100 % o fth e revenu e generate d b ypassenger s travelin g betwee n Laurel/Hattiesbur g an d bot h Memphi s an d Nashvill e ha s bee n allocate d t o th e Laurel/Hattiesbur g market ; an d

•Zer o traffi ci s forecas t betwee n Tupel o an d Laurel/Hattiesburg

. A s note d unde rou rTupel o proposal , Optio n # 2 ha s highe rfrequenc ylevel s tha n Optio n # 1 bu t suc h a proposa l i s consisten t wit h th e Orde r2011-9- 5 whic h states : "w e woul d conside r subsidizin g additiona l frequencie s a t an ycommunit yi fth e servic e w e linf<e d t o anothe ra community. "

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# SEA#PDR T

rAI D L1 N i ; S


### SeaPor tAirlines , Inc

. PI B Optio n # 1 4 4 Weekl yRoundtrips : Laurel/Hattiesburg , M S - Ne wOrleans , L A (Standalon e Proposal ) Operatin g Projection s A\erag e Secto rLengt h (sm ) Schedule d Departure s Schedule d Bloc k

Hours Projecte d Completio n Facto r Projecte d Complete d Departure s Projecte d Complete d Bloc k Hours Passenge rProjection s Projecte d Passengers Passengers pe rDeparture Projecte d A\erag e Fare Revenu e Passenge rMile s (RPMs ) Availabl e Seat Mile s (ASMs ) Projecte d Loa d Facto r Financia l Projection s Re\enue s Passenge rTicke t Re\enue s AncillaryRevenue s Year l Yea r2

Tota l Expense s Fligh t Operation s Aircraft Ownership/Leas e Fue l & Oi l Sale s & Marketin g Traffi cServcin g Insuranc e Maintenanc e Sub-Tota l - Direct Indirect Tota l Expense s Projecte d Operatin g Profit/(Loss ) Subsid yCalculation s Operatin g Los s Economi cRetur n @ 5 % JRequire d Subsid y 11 5 4,57 6 3,432. 0 98.0 % 4,48 4 3.363. 4
19,45 5 4. 3 $53.7 5 2,237,32 5 4,641,43 7 48.2 %

$1,045,70 6 $41,82 8 $1,087,53 5 $291,72 0 $180,00 0 $935,90 6 312.87 0 $461,98 2 $68,64 0 $808,92 0 $2,760,03 8 $248,40 3 $3,008,44 2

$1,920,90 7 $150,42 2 11 5

4,57 6 3,432. 0 98.0 % 4.48 4 3,363. 4
19,65 0 4. 4 $54.5 6 2.259,69 8 4,641,43 7 48.7 %

$1,072,00 6 $42,88 0 $1,114,88 6 $297,55 4 $180,00 0 $973,34 3 $12,99 9 $465,40 1 $70,01 3 $833.18 8 $2,832,49 7 $226,60 0 $3,059,09 7 ($1,920,907 ) ($1,944,211 ;

$1,944,21 1 $152,95 5 $2,071,32 9 $2,097.165 1 Subsid ype rDeparture Subsid ype rPassenge r $461.8 9 $106.4 7 $467.6 5

$106.7 3

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# SEA-TPDR T

r AI R L I r j t s
SeaPor tAirlines , Inc

. PI B Optio n # 2 4 0 Weekl yRoundtrips : Laurel/Hattiesburg , M S - Ne wOrleans , LA 13. 5 Weekl yRoundtrips : Laurel/Hattiesburg , M S -Memphis , T N (1-sto p vi a TUP ) 6. 5 Weekl yRoundtrips : Laurel/Hattiesburg , M S - Nashville , T N (1-sto p vi a TUP )

(Contingen t o n SeaPor tBein g Selecte d Serv e t o Tupelo , MS ) operatin g Projeclion s Averag e Secto rLengt h (sm ) Schedule d Departure s Schedule d Bloc k

Hour s Projecte d Completio n Facto r Projecte d Complete d Departure s Projecte d Complete d Bloc k Hour s Passenge rProjection s Projecte d Passenger s Passenger s pe rDepartur e Projecte d Averag e Far e Revenu e Passenge rMile s (RPMs ) Availabl e Sea t Wile s (ASMs ) Projecte d Loa d Facto r Financia l Projection s Revenue s Passenge rTicke t Revenue s Ancillar yRevenue s Year l Yea r2

Tota l Expense s Fligh tOperation s Aircraf t Ownership/Leas e Fue l & Oi l Sale s & Marketin g Traffi cSer^cin g Insuranc e Maintenanc e Sub-Tota l - Direc t Indirec t Tota l Expense s Projecte d Operatin g Profit/(Loss ) Subsid yCalculation s Operatin g Los s Economi cRetur n @ 5 % 14 2 6,24 0 5.893. 3 98.0 %

•6.11 5 5,775. 5

23.85 2 3. 9 $67.7 7 3,386.98 4 7,315.22 6 43.3 %

$1,616,40 0 $64,65 6 $1,681,05 6
$363,85 4 $261,48 7 $1,167,33 1 $16,38 0 $758,80 1 $85,61 3 $964,64 3 $3,618,11 0 $325,63 0 $3,943,73 9 ($2,262,683 )
$2,262,68 3 $197,18 7 $2,459,87 0 $402.2 6 $103.1 3 14 2 6,24 0 5,893. 3 98.0 % 6,11 5 5,775. 5

24.09 1 3. 9 $68.7 8 3.420.85 4 7,815.22 6 43.8 %

$1,657,05 2 $66,28 2 $1,723,33 5
$371,13 1 $261,48 7 $1,214,02 4 $16,54 4 $764,08 6 $87,32 5 $993,58 3 $3,708,18 0 $296,65 4 $4,004,83 4 ($2,281,500 )
$2,281,50 0 $200,24 2 $2,481,74 2 $405.8 3 $103.0 2 Require d Subsid y Subsid ype rDepartur e Subsid ype rPassenge r

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# SEAPOR T

r AI H LI I'

J t b 

# Proposal : Muscl e Shoals , A L (MSL )
SeaPor t Airline s i s offerin g tli e Muscl e Shoal s communit ytw o servic e options , providin g acces s t o th e nationa l ai rtransportatio n syste m a t Memphi s an d Nashvill e wit h variou s frequenc y levels

. Thi s i s illustrate d o n th e representativ e schedule s below

.
MS L Optio n # 1 1 9 Weekl yRoundtrips : Muscl e Shoals , A L - Memphis , T N 1 3 Weekl yRoundtrips : Muscl e Shoals , A L - Nashville , T N (Standalon e Proposal )

. . Depa n Am\ e FrequencyStop s Depar t A(Ti\

e FrequencySlop s Fro m Muscl e Shoal s t o Memphi s 6.25a m 7:25a m ExSu n 0 12:15p m 1:15p m Dail y0 6:00p m 700p m ExSa t0 Fro m Musci e Shoal s t o Nashyll e 10.00a m 10:45a m ExSu n 0 3 45p m 4:30p m Dail y0 Fro m Memphi s t o Muscl e Shoal s 8.45a m 945a m ExSu n 0 2:30p m 3.30pi n Dail y0 7:45p m 8 45p m ExSa l 0 Fro m Nashwit e t o Muscl e Shoal s 11:15a m 12:00p m ExSu n 0 500p m •5:45p m Dail y0
MS L Optio n # 2 1 3 Weekl yRoundtrips : Muscl e Shoals , A L - Memphis , T N 1 9 Weekl yRoundtrips : Muscl e Shoals , A L - Nashville , T N (Standalon e Proposal ) Depar t Afn\ e FrequencySlop s Fro m Musci e Shoai s t o Memphi s 8:30a m OSOa m ExSu n 0 1-30p m 2:30p m Daii y0 Fro m Musci e Shoai s l o Nashwll e 6:15a m 7:00a m ExSu n 0 11.15a m 12:00p m Dail y0 4:15p m 5 00p m ExSa t 0 Depar t Arn\ e FrequencyStop s

. Fro m Memphi s t o Muscl e Shoai s 10:00a m ll.OOa m ExSu n 0 3:00p m 4 OOp

m Dail y0 Fro m Nashyil e l o Muscl e Shoai s 7:30a m
. 8:15a m ExSu n 0 12.30p m T15p m Daii y0 5:30p m 6-15p m ExSa t 0

^ '

r ' ME M (iviemphls )

MS L (Muscl e Shoals ) BN A(Nashville )

Bot h option s presente d abov e ar e standalon e proposals

. A s wit h th e othe rmarkets , fligh t schedule s t o an d Memphi s ar e aligne d wit h Delta' s connectin g hu b allowin g fo reas yconnections.^ ^

' Se e grap h o n pag e 17

.

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# iJJ I

Octobe r14,201 1 

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### SeaPor t Airlines , Inc

. Optio n # 1 1 9 Weekl yRoundtrips : Muscl e Shoals,'A L-Memphis , T N 1 3 Weekl yRoundtrips : Muscl e Shoals , A L- Nashville , T N

(Standalon e Proposal ) Operatin g Projection s Averag e Secto rLengt h (sm ) Schedule d Departure s Schedule d Bloc k

Hour s Projecte d Completio n Facto r Projecte d Complete d Departure s Projecte d Complete d Bloc k Hour s Passenge rProjection s Projecte d Passenger s Passenger s pe rDepartur e Projecte d Averag e Far e Revenu e Passenge rMile s (RPMs ) Availabl e Sea t Mile s (ASMs ) Projecte d Loa d Facto r Financia l Projection s Revenue s Passenge rTicke t Re\enue s Ancillar yRevenue s Year l Yea r2

Tota l Expense s Fligh t Operation s Aircraf tOwnership/Leas e Fue l & Oi l Sale s & Marketin g Traffi cSer^cin g Insuranc e Maintenanc e Sub-Tota l - Direc t Indirec t Tota l Expense s Projecte d Operatin g Profit/(Loss ) Subsid yCalculation s Operatin g Los s Economi cRetu m @ 5 % [Require d Subsid y 125 3.32 8 2,990. 0 98.0 % 3.26 1 2.930. 2

13.78 0 4. 2 $57.8 5 1.722,93 1 3,670,03 7 46.9 %

$797,20 0 $23,91 6 $821,11 6
$249,06 7 $170,52 0 $799,06 6 $10,46 5 $404,62 8 $58,60 4 $509,40 4 $2,201,75 4 $330,26 3 $2,532,01 7 ($1,710,900 )
$1,710,90 0 $126,60 1 $1,837,50 1 $563.4 0 $133.3 5 125 3,32 8 2,990. 0 98.0 % 3,26 1 2,930. 2
13,94 6 4. 3 $58.7 1 1,743.63 5 3,670.03 7 47,5 %

$818,69 4 $24,56 1 $843,25 5
$254,04 8 $170,52 0 $831,02 8 $10,67 4 $407,63 7 $59,77 6 $524,68 6 $2,258,37 0 $316,17 2 $2,574,54 2 ($1,731,287 )
$1,731,28 7 $128,72 7 $1,860,014 | $570.3 0 $133.3 8 Subsid ype rDepartur e Subsid ype rPassenge r

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# SEA#PDR T

r AI R LI rJ E S


### SeaPor t Airlines , Inc

. Optio n # 2 1 3 Weekl yRoundtrips : Muscl e Shoals , A L-Memphis , T N 1 9 Weekl yRoundtrips : Muscl e Shoals , A L-Nashville , T N

(Standalon e Proposal ) Operatin g Projection s Averag e Seclo rLengt h (sm ) Schedule d Departure s Schedule d Bloc k

Hour s Projecte d Completio n Facto r Projecte d Complete d Departure s Projecte d Complete d Bloc k Hour s Passenge rProjection s Projecte d Passenger s Passenger s pe rDepartur e Projecte d Averag e Far e Revenu e Passenge rMile s (RPMs ) Availabl e Sea t Mile s (ASMs ) Projecte d Loa d Facto r Financia l Projection s Revenue s Passenge rTicke tRevenue s Ancillar yRevenue s Year l Yea r2

Tota l Expense s Fligh t Operation s Aircraf tOwner s hip/Leas e Fue l & Oi l Sale s & Marketin g Traffi cServicin g Insuranc e Maintenanc e Sub-Tota l - Direc t Indirec t Tota l Expense s Projecte d Operatin g Profit/(Loss ) Subsid yCalculation s Operatin g Los s Economi cRetu m @ 5 % 120 3,32 8 • 2,834. 0 98.0 % 3,26 1 2,777. 3
14,27 7 4. 4 $55.6 7 1.712,79 4 3,521.43 8 48.6 %

$794,76 0 S23.B4 3 $818,60 3
$236,07 2 $259,69 1 $757,37 5 $9,91 9 $388,99 8 355,54 6 $444,37 1 $2,151,97 3 $322,79 6 $2,474,76 9 ($1,656,166 )
$1,656,16 6 $123,73 8 $1,779,90 5 $545.7 4 $124.6 7 12 0 3,32 8 2,834. 0 98,0 % 3.26 1 2,777. 3
14,46 3 4. 4 $56.4 9 1,735.05 5 3.521,43 8 49,3 %

$816,97 2 $24,50 9 $841,48 1
$240,79 4 $259,69 1 $787,67 0 $10,11 7 $392,10 8 $56,65 7 $457,70 2 $2,204,74 0 $308,66 4 $2,513,40 4 ($1,671,922 )
$1,671,92 2 $125,67 0 $1,797,592 | $551.1 7 $124.2 9 Require d Subsid y Subsid ype rDepartur e Subsid ype rPassenge r

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# SEA#PDR T

l AI R L I r j E S 

# Summary& Conclusio n

I n summary , SeaPor t Airline s i s providin g th e communitie s o fMuscl e Shoals , Alabam a an d Greenville , Tupelo , an d Laurel/Hattiesburg , Mississipp i a variet yo fai rservic e option s summarize d a s follows :



# Summaryo fSeaPort Airline s Proposal s T o Provid e Essentia l Ai rServic e

Greenwlle , M S DOTOST-2008-020 9 Tupelo , M S DO TOST-2009-030 5 Laurel/Hattio s burg , M S WUl"«U^VJUMf^! H Muscl e Shoals , A L DO TOST-2000-785 6 Optio n ttl Servic e Patter n (Weekl y Roundtrips ) Proiecle d Passenqer e Proiecte d Awraq e Far e Require d Subsid y Subsid ype rPassenge r Subsid ype rDepartur e Weekl yR TSubsid y Memphi s - 2 1 9.56 4 S51.7 5 51,310,11 5 SI3 6 9 8 $612.1 1 $62,38 6 9,66 0

S52.5 3 $1,331,86 6 $13 7 8 6 S622.2 7 S63,42 2 Memphi s - 1 8

Nashvill e - 2 6 19,77 1 S63.3 6 $2,645,79 5 513 3 8 2 S589.9 9 560,13 2 19.96 9

S64.3 1 $2,676,08 9 $134.0 1 $596.7 4 $60,82 0 Ne wOrtean s - 4 4

19,45 5 $53.7 5 $2,071,32 9 $106.4 7 $461.8 9 $47,07 6 19,65 0

$54.5 6 $2,097,16 5 $10 6 7 3 S46 7 6 5 $47,66 3 Memphi s - 1 9

Nashwil e - 1 3 13.78 0 S5 7 8 5 $1,837,50 1 $133.3 5 $563.4 0 $57,42 2 13,94 6

$5 8 7 1 Si.860,01 4 $13 3 3 8 $57 0 3 0 $58,12 5 Optio n tf2 Serwc e Patter n (Weekl y Roundtrips ) Proiecte d Passenger s Protecte d A\eraq e Far e Require d Subsid y Subsid ype rPassenge r Sutisid ype rDepartur e Weekl yR TSubsid y Memphi s - 1 3 Ne wOrlean s •1 3
11,65 6 $72,4 3 $1,994,00 9 $171.0 1 $75 2 4 8 $76,69 3 11,77 3

$7 3 5 2 $2,030,44 3 $172.4 7 5766.2 3 $78,09 4 Memphi s -1 9

Nash\^lle

- 1 9 Ne wOriean s (l-slop)-2 1 21.33 4 S6 8 4 3 $2,681,82 2 S12 5 7 1 $445.9 8 S45.45 5 21,54 7

$69.4 5 $2,740,33 4 $12 7 1 8 $455.7 1 $46,44 6 Ne wOrtean s - 4 0

Memphi s (1-stop ) -1 3 5 Nashwil e (1-stop)-6. 5 23.85 2 $67.7 7 $2,459,87 0 $10 3 1 3 $402.2 6 $40,99 8 24,09 1

$68.7 8 $2,481,74 2 $103.0 2 $40 5 8 3 $41,36 2 Memphi s - 1 3

Nashvill e - 1 9
14,27 7 $5 5 6 7 $1,779,90 5 $124.6 7 $545.7 4 $55,62 2 14,46 3

$56.4 9 $1,797,59 2 $124.2 9 $551.1 7 $56,17 5 Optio n ff3 Serwc e Patter n (Weekl y Round ! nps ) Projecte d Passenqer s Projecte d A\efaq e Far e Require d Subsid y Subsid ype rPassenqe r Subsid ype rDepartur e Weekl yR TSubsid y Memphi s - 1 9 Ne wOrlean s - 7 11,16 2 $64.6 9 $1,822,02 3 $16 3 2 3 S687.5 8 $70,07 8 11.27 4

$65.6 6 $1,852,48 5 $164.3 2 $699.0 7 $71,24 9 Contingencie s
Contingencie s Optio n # 3 i s contingen t o n SeaPo n bein g selected l o ser\ e Laurel/Hattiesburg , M S Optio n « 2 i s contingen t o n SeaPo d bein g selecte d l o serve Laurel/l-la l tie s burg , M S optio n # 2 I S contingen t o n SeaPor t bein g selected t o ser\ e Tupelo

. M S

I n eac h case , th e servic e proposa l provide s th e communitie s wW h option s tha tinclud e acces s t o multipl e connectin g hub s a t subsid ylevel s tha tar e wel l belo wth e statutor ylimi to f$20 0 i n pe r passenge rsubsidy

.

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# SEA#PDR T

rAI R LI N fS

Finally , th e proposal s herei n ar e base d o n a tw o yea rterm

. Notwithstandin g th e ris k o fcos t inflatio n i n comin g year s {particularl yrelate d t o fuel ) tha tcoul d possibl youtstri p traffi cgrowt h an d reasonabl e far e increases , SeaPor ti s offerin g th e Departmen tan d communitie s th e optio n t o contrac t th e propose d annua l subsid yfo ra fou ryea rperio d a tn o increas e i n annua l subsid ybeyon d tha t leve l specifie d fo rth e secon d yea ro feac h optio n i n thi s proposal._W e believ e thi s offe rprovide s eac h communit ywit h th e assuranc e o fstabl e ai r servic e fo ra n extende d perio d an d reduce s th e administrativ e burde n o n bot h th e Departmen t an d ourselves

. Ou rexistin g infrastructur e a t Memphi s (Includin g maintenanc e an d cre wbases ) combine d wit h additiona l aircraf t schedule d fo rdeliver yi n Novembe r201 1 allow s SeaPor tt o implemen tth e propose d servic e I n a timel ymanne ran d a ta cos ttha tminimize s taxpaye rexpenditure

. W e appreciat e th e opportunit yt o submi tthi s proposa l an d welcom e an yquestion s fro m th e communitie s and/o rDepartment

. Respectfull ysubmitted

.

Timoth ySiebe r Vic e Presiden t - Strateg y& Corporat e Developmen t SeaPor t Airlines , Inc

. 

### October 14 , 201 1

1 1

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