Direct Inquiries Regarding this Proposal to:

Shane Storz, CEO

Air Choice One Airlines

12300 Old Tesson Road, Suite 200 F, Saint Louis, MO 63128

Phone: (866) 435

- 9847 Fax : (314) 843

- 8527 E

- mail: shane@airchoiceone.com



# Multi

- Aero Inc.

d/b/a

Air Choice One

Proposal to Provide Essential Air Service at



# Greenville, Mississippi

Laurel/Hattiesburg, Mississippi

Muscle Shoals, Alabama

Tupelo, Mississippi

Docket DOT

- OST

- 2008

- 0209

Docket DOT

- OST

- 2001

- 10685

Docket DOT

- OST

- 2000

- 7856

Docket DOT

- OST

- 2009

- 0305



## April 10, 2012

# Highlights

Throughout this multi

- step process interaction with each of the four communities has

provided the Air Choice One team with a constructive exchange of ideas, information,

and insight. Keeping all this in mind we have taken a new approach in this round of

proposals and hereby present six new options* for your review. We invite you to give

Air Choice One a “fresh look” and serious consideration to the added benefits our



# latest options offer.

Highlights Include:

• Air Choice One is offering 18 Seat aircraft in Year 2** (and Optional Years 3

- 4)! For

details see Options 3

- 6. We are excited about this newest innovation and would be

happy to answer any questions you might have!

• Options 1 and 3

- 6 all feature twin turboprop aircraft!

• Option 5 proposes dual hub service for Muscle Shoals and Tupelo!

• Discounts for 4 Year Terms!

04/10/2012 * Each option represents an inseparable offering for the communities highlighted therein.

** Start Date will be dependent on final completion of FAA certification modification process.

# Market Growth Strategy

– Connectivity

04/10/2012 

## Over the years Air Choice One has made substantial investments in enhancing our brand

distribution capabilities

. At our current level, for the Global Distribution Systems (GDS),

we are fully seen and sold in all the major systems including but not limited to Sabre

, Apollo, Amadeus, Travelport

, and many more

. Air Choice One is working diligently to

secure interline relations with other major carriers

. Delta has communicated to us that

once the communities make their air carrier selection and that carrier is awarded the

contract from the Department of Transportation to provide scheduled air service into

Memphis International Airport, Delta would consider pursuing Interline relations with the

chosen carrier

.

We have and will continue to take every action possible to actively pursue a mutually

beneficial IET with Delta into the MEM hub, as well as, other major legacy carriers into



## our other hubs located at Chicago, O’Hare International Airport and Lambert St

. Louis

International Airport

. All other major legacies have communicated to us that we are being

evaluated to become Interline partners with them in 2012

. We look forward to

announcing the launch of one or more interline relations in the coming year

.

# Options Index

All Options Represent Inseparable Service

04/10/2012 OPTION 1, 2 YEAR TERM WITH DISCOUNTED 4 YEAR TERM OPTION

– MEM SERVICE

Greenville, Mississippi

– Memphis International

Laurel/Hattiesburg, Mississippi

– Memphis International

Muscle Shoals, Alabama

– Memphis International

Tupelo, Mississippi

– Memphis International

INSEPARABLE SERVICE

– PIPER NAVAJO

Piper Navajo 24 Round Trips Per Week

OPTION 2

, 2 YEAR TERM WITH DISCOUNTED 4 YEAR TERM OPTION

– MEM SERVICE

Greenville, Mississippi

– Memphis International

Laurel/Hattiesburg, Mississippi

– Memphis International

Muscle Shoals, Alabama

– Memphis International

Tupelo, Mississippi

– Memphis International

INSEPARABLE SERVICE

– CESSNA CARAVAN

Cessna Caravan 24 Round Trips Per Week

# Options Index

All Options Represent Inseparable Service

04/10/2012 OPTION 3

, 2 YEAR TERM WITH DISCOUNTED 4 YEAR TERM OPTION

– MEM SERVICE

Greenville, Mississippi

– Memphis International

Laurel/Hattiesburg, Mississippi

– Memphis International

YEAR 1

- INSEPARABLE SERVICE

– JETSTREAM

Jetstream 8 Seats 24 Round Trips Per Week

YEAR 2 (WITH OPTIONAL YEARS 3

- 4)

- INSEPARABLE SERVICE

– JETSTREAM

Jetstream 18 Seats 18 Round Trips Per Week

OPTION 4

, 2 YEAR TERM WITH DISCOUNTED 4 YEAR TERM OPTION

– MEM SERVICE

Muscle Shoals, Alabama

– Memphis International

Tupelo, Mississippi

– Memphis International

YEAR 1

- INSEPARABLE SERVICE

– JETSTREAM

Jetstream 8 Seats 24 Round Trips Per Week

YEAR 2 (WITH OPTIONAL YEARS 3

- 4)

- INSEPARABLE SERVICE

– JETSTREAM

Jetstream 18 Seats 18 Round Trips Per Week

# Options Index

All Options Represent Inseparable Service

04/10/2012 OPTION 5

, 2 YEAR TERM WITH DISCOUNTED 4 YEAR TERM OPTION

– ATL/MEM SERVICE

Muscle Shoals, Alabama

– Atlanta

- Hartsfield International

Tupelo, Mississippi

– Memphis International

YEAR 1

- INSEPARABLE SERVICE

– JETSTREAM

Jetstream 8 Seats 24 Round Trips Per Week

YEAR 2 (WITH OPTIONAL YEARS 3

- 4)

- INSEPARABLE SERVICE

– JETSTREAM

Jetstream 18 Seats 18 Round Trips Per Week

OPTION 6

, 2 YEAR TERM WITH DISCOUNTED 4 YEAR TERM OPTION

– MEM SERVICE

Muscle Shoals, Alabama

– Memphis International

Tupelo, Mississippi

– Memphis International

YEAR 1

- INSEPARABLE SERVICE

– PIPER NAVAJO

Navajo 24 Round Trips Per Week

YEAR 2 (WITH OPTIONAL YEARS 3

- 4)

- INSEPARABLE SERVICE

– JETSTREAM

Jetstream 18 Seats 18 Round Trips Per WeekOperation Revenues

GLH

- MEM, PIB

- MEM, MSL

- MEM, & TUP

- MEM Revenues $2,735,350

Other Revenues 76,442

Total Operating Revenues $2,811,792

Direct Operating Expenses

Flying Operations $ 789,311

Fuel and Oil 2,296,777

Maintenance 1,695,989

Aircraft Leases 960,000

Total Direct $5,742,077

Marketing 200,000

Indirect 2,369,160

Total Operating Expenses $8,311,237

Operating Loss $5,499,445

Profit Element (5% total Oper. Exp.) 415,562

Compensation Required $5,915,007

Compensation per PAX $139

Compensation per Departure $603 

## Inseparable Service

– Greenville, MS; Laurel/Hattiesburg, MS;

Muscle Shoals, AL; & Tupelo, MS

– Piper Navajo

Option 1: 2 Year Service with Discount for 4 Year Term

GLH , PIB, MSL, TUP

- 24 Total Round Trips Per Week

- Based on 98% Completion Rate

Inseparable Service

– Greenville, MS; Laurel/Hattiesburg, MS; Muscle Shoals, AL; & Tupelo, MS

– Memphis International

– Navajo

# Passengers: 42,500

Average Fare GLH

- MEM: $59.00

Average Fare PIB

- MEM: $80.00

Average Fare MSL

- MEM: $59.00

Average Fare TUP

- MEM: $59.00

Departures: 9,811

Block Hours: 8,413

Revenue Passenger Miles: 6,375,000

Available Seat Miles: 10,187,923

04/10/2012 DISCOUNTED SUBSIDY

$5,855,857/Year

$597/Departure DISCOUNT FOR

4 YEAR TERM

## Inseparable Service

– Greenville, MS; Laurel/Hattiesburg, MS;

Muscle Shoals, AL; & Tupelo, MS

– Piper Navajo

Option 1: 2 Year Service with Discount for 4 Year Term

GLH , PIB, MSL, TUP

- 24 Total Round Trips Per Week

- Based on 98% Completion Rate

04/10/2012 Tupelo, Mississippi

Estimated Flight Operations

Departure Arrival

TUP @ 5:30 AM CT MEM @ 6:00 AM CT

MEM @ 6:30 AM CT TUP @ 7:00 AM CT

TUP @ 9:55 AM CT MEM @ 10:25 AM CT

MEM @ 11:05 AM CT TUP @ 11:35 AM CT

TUP @ 5:00 PM CT MEM @ 5:30 PM CT

MEM @ 6:10 PM CT TUP @ 6:40 PM CT

TUP @ 7:20 PM CT MEM @ 7:50 PM CT

MEM @ 8:20 PM CT TUP @ 8:50 PM CT Muscle Shoals, Alabama

Estimated Flight Operations

Departure Arrival

MSL @ 5:30 AM CT MEM @ 6:10 AM CT

MEM @ 6:40 AM CT MSL @ 7:20 AM CT

MSL @ 8:15 AM CT MEM @ 8:55 AM CT

MEM @ 9:35 AM CT MSL @ 10:15 AM CT

MSL @ 4:40 PM CT MEM @ 5:20 PM CT

MEM @ 6:10 PM CT MSL @ 6:50 PM CT

MSL @ 7:25 PM CT MEM @ 8:05 PM CT

MEM @ 8:35 PM CT MSL @ 9:15 PM CT Laurel/Hattiesburg, Mississippi

Estimated Flight Operations

Departure Arrival

PIB @ 5:30 AM CT MEM @ 7:10 AM CT

MEM @ 7:40 AM CT PIB @ 9:20 AM CT

PIB @ 8:30 AM CT MEM @ 10:10 AM CT

MEM @ 11:00 AM CT PIB @ 12:40 PM CT

PIB @ 1:00 PM CT MEM @ 2:40 PM CT

MEM @ 3:30 PM CT PIB @ 5:10 PM CT

PIB @ 5:30 PM CT MEM @ 7:10 PM CT

MEM @ 8:00 PM CT PIB @ 9:40 PM CT Greenville, Mississippi

Estimated Flight Operations

Departure Arrival

GLH @ 6:00 AM CT MEM @ 6:45 AM CT

MEM @ 7:15 AM CT GLH @ 8:00 AM CT

GLH @ 9:00 AM CT MEM @ 9:45 AM CT

MEM @ 10:15 AM CT GLH @ 11:00 AM CT

GLH @ 3:00 PM CT MEM @ 3:45 PM CT

MEM @ 4:15 PM CT GLH @ 5:00 PM CT

GLH @ 6:00 PM CT MEM @ 6:45 PM CT

MEM @ 8:00 PM CT GLH @ 8:45 PM CT Inseparable Service

– Greenville, MS; Laurel/Hattiesburg, MS; Muscle Shoals, AL; & Tupelo, MS

– Memphis International

– NavajoOperation Revenues

GLH

- MEM, PIB

- MEM, MSL

- MEM, & TUP

- MEM Revenues $2,487,100

Other Revenues 70,539

Total Operating Revenues $2,557,639

Direct Operating Expenses

Flying Operations $ 746,387

Fuel and Oil 2,296,777

Maintenance 1,695,989

Aircraft Leases 1,640,000

Total Direct $6,379,153

Marketing 200,000

Indirect 2,111,910

Total Operating Expenses $8,691,063

Operating Loss $6,133,424

Profit Element (5% total Oper. Exp.) 434,553

Compensation Required $6,567,977

Compensation per PAX $146

Compensation per Departure $669 

## Inseparable Service

– Greenville, MS; Laurel/Hattiesburg, MS;

Muscle Shoals, AL; & Tupelo, MS

– Cessna Grand Caravan

Option 2: 2 Year Service with Discount for 4 Year Term

GLH , PIB, MSL, TUP

- 24 Total Round Trips Per Week

- Based on 98% Completion Rate

Inseparable Service

– Greenville, MS; Laurel/Hattiesburg, MS; Muscle Shoals, AL; & Tupelo, MS

– Memphis International

– Caravan

# Passengers: 45,000

Average Fare GLH

- MEM: $49.00

Average Fare PIB

- MEM: $75.00

Average Fare MSL

- MEM: $49.00

Average Fare TUP

- MEM: $49.00

Departures: 9,811

Block Hours: 8,413

Revenue Passenger Miles: 6,592,500

Available Seat Miles: 13,098,758

04/10/2012 DISCOUNTED SUBSIDY

$6,502,297/Year

$663/Departure DISCOUNT FOR

4 YEAR TERM

## Inseparable Service

– Greenville, MS; Laurel/Hattiesburg, MS;

Muscle Shoals, AL; & Tupelo, MS

– Cessna Grand Caravan

Option 2: 2 Year Service with Discount for 4 Year Term

GLH , PIB, MSL, TUP

- 24 Total Round Trips Per Week

- Based on 98% Completion Rate

04/10/2012 Tupelo, Mississippi

Estimated Flight Operations

Departure Arrival

TUP @ 5:30 AM CT MEM @ 6:00 AM CT

MEM @ 6:30 AM CT TUP @ 7:00 AM CT

TUP @ 9:55 AM CT MEM @ 10:25 AM CT

MEM @ 11:05 AM CT TUP @ 11:35 AM CT

TUP @ 5:00 PM CT MEM @ 5:30 PM CT

MEM @ 6:10 PM CT TUP @ 6:40 PM CT

TUP @ 7:20 PM CT MEM @ 7:50 PM CT

MEM @ 8:20 PM CT TUP @ 8:50 PM CT Muscle Shoals, Alabama

Estimated Flight Operations

Departure Arrival

MSL @ 5:30 AM CT MEM @ 6:10 AM CT

MEM @ 6:40 AM CT MSL @ 7:20 AM CT

MSL @ 8:15 AM CT MEM @ 8:55 AM CT

MEM @ 9:35 AM CT MSL @ 10:15 AM CT

MSL @ 4:40 PM CT MEM @ 5:20 PM CT

MEM @ 6:10 PM CT MSL @ 6:50 PM CT

MSL @ 7:25 PM CT MEM @ 8:05 PM CT

MEM @ 8:35 PM CT MSL @ 9:15 PM CT Laurel/Hattiesburg, Mississippi

Estimated Flight Operations

Departure Arrival

PIB @ 5:30 AM CT MEM @ 7:10 AM CT

MEM @ 7:40 AM CT PIB @ 9:20 AM CT

PIB @ 8:30 AM CT MEM @ 10:10 AM CT

MEM @ 11:00 AM CT PIB @ 12:40 PM CT

PIB @ 1:00 PM CT MEM @ 2:40 PM CT

MEM @ 3:30 PM CT PIB @ 5:10 PM CT

PIB @ 5:30 PM CT MEM @ 7:10 PM CT

MEM @ 8:00 PM CT PIB @ 9:40 PM CT Greenville, Mississippi

Estimated Flight Operations

Departure Arrival

GLH @ 6:00 AM CT MEM @ 6:45 AM CT

MEM @ 7:15 AM CT GLH @ 8:00 AM CT

GLH @ 9:00 AM CT MEM @ 9:45 AM CT

MEM @ 10:15 AM CT GLH @ 11:00 AM CT

GLH @ 3:00 PM CT MEM @ 3:45 PM CT

MEM @ 4:15 PM CT GLH @ 5:00 PM CT

GLH @ 6:00 PM CT MEM @ 6:45 PM CT

MEM @ 8:00 PM CT GLH @ 8:45 PM CT Inseparable Service

– Greenville, MS; Laurel/Hattiesburg, MS; Muscle Shoals, AL; & Tupelo, MS

– Memphis International

– CaravanOperation Revenues

GLH

- MEM & PIB

- MEM Revenues $2,072,550

Other Revenues 20,726

Total Operating Revenues $2,093,276

Direct Operating Expenses

Flying Operations $ 646,926

Fuel and Oil 2,397,919

Maintenance 1,131,967

Aircraft Leases 700,000

Total Direct $4,876,812

Marketing 100,000

Indirect 1,697,485

Total Operating Expenses $6,674,297

Operating Loss $4,581,021

Profit Element (5% total Oper. Exp.) 333,715

Compensation Required $4,914,736

Compensation per PAX $197

Compensation per Departure $1,002 

## Inseparable Service

– Greenville, MS &

Laurel/Hattiesburg, MS

– Jetstream (8 Seats)

Option 3: Year 1 of 2 Year Service with Discount for 4 Year Term

GLH & PIB

- 24 Total Round Trips Per Week

- Based on 98% Completion Rate

Inseparable Service

– Greenville, MS & Laurel/Hattiesburg, MS

– Memphis International

– Jetstream (8 Seats)

# Passengers: 24,950

Average Fare GLH

- MEM: $69.00

Average Fare PIB

- MEM: $95.00

Departures : 4,906

Block Hours: 4,292

Revenue Passenger Miles: 4,771,900

Available Seat Miles: 7,279,534

04/10/2012

## Inseparable Service

– Greenville, MS &

Laurel/Hattiesburg, MS

– Jetstream (8 Seats)

Option 3: Year 1 of 2 Year Service with Discount for 4 Year Term

GLH , PIB, MSL, TUP

- 24 Total Round Trips Per Week

- Based on 98% Completion Rate

04/10/2012 

### Laurel/Hattiesburg, Mississippi

Estimated Flight Operations

Departure Arrival

PIB @ 5:30 AM CT MEM @ 7:00 AM CT

MEM @ 7:40 AM CT PIB @ 9:10 AM CT

PIB @ 8:30 AM CT MEM @ 10:00 AM CT

MEM @ 11:00 AM CT PIB @ 12:30 PM CT

PIB @ 1:00 PM CT MEM @ 2:30 PM CT

MEM @ 3:30 PM CT PIB @ 5:00 PM CT

PIB @ 5:30 PM CT MEM @ 7:00 PM CT

MEM @ 8:00 PM CT PIB @ 9:30 PM CT 

### Greenville, Mississippi

Estimated Flight Operations



### Departure Arrival

GLH @ 6:00 AM CT MEM @ 6:45 AM CT

MEM @ 7:15 AM CT GLH @ 8:00 AM CT

GLH @ 9:00 AM CT MEM @ 9:45 AM CT

MEM @ 10:15 AM CT GLH @ 11:00 AM CT



### GLH @ 3:00 PM CT MEM @ 3:45 PM CT

MEM @ 4:15 PM CT GLH @ 5:00 PM CT

GLH @ 6:00 PM CT MEM @ 6:45 PM CT

MEM @ 8:00 PM CT GLH @ 8:45 PM CT

Inseparable Service

– Greenville, MS & Laurel/Hattiesburg, MS

– Memphis International

– Jetstream (8 Seats)Operation Revenues

GLH

- MEM & PIB

- MEM Revenues $2,080,000

Other Revenues 20,800

Total Operating Revenues $2,100,800

Direct Operating Expenses

Flying Operations $ 660,416

Fuel and Oil 1,798,439

Maintenance 1,342,908

Aircraft Leases 700,000

Total Direct $4,501,763

Marketing 100,000

Indirect 1,447,770

Total Operating Expenses $6,049,533

Operating Loss $3,948,733

Profit Element (5% total Oper. Exp.) 302,477

Compensation Required $4,251,210

Compensation per PAX $142

Compensation per Departure $1,155 

## Inseparable Service

– Greenville, MS &

Laurel/Hattiesburg, MS

– Jetstream (18 Seats)

Option 3: Year 2 of 2 Year Service with Discount for 4 Year Term

GLH & PIB

- 18 Total Round Trips Per Week

- Based on 98% Completion Rate

Inseparable Service

– Greenville, MS & Laurel/Hattiesburg, MS

– Memphis International

– Jetstream (18 Seats)

# Passengers: 30,000

Average Fare GLH

- MEM: $59.00

Average Fare PIB

- MEM: $79.00

Departures : 3,679

Block Hours: 3,219

Revenue Passenger Miles: 5,644,000

Available Seat Miles: 11,366,934

04/10/2012 DISCOUNTED SUBSIDY

$4,208,698/Year

$1,144/Departure YEARS 3

- 4 DISCOUNT

FOR 4 YEAR TERM

## Inseparable Service

– Greenville, MS &

Laurel/Hattiesburg, MS

– Jetstream (18 Seats)

Option 3: Year 2 of 2 Year Service with Discount for 4 Year Term

GLH & PIB

- 18 Total Round Trips Per Week

- Based on 98% Completion Rate

04/10/2012 

### Laurel/Hattiesburg, Mississippi*

Estimated Flight Operations

Departure Arrival

PIB @ 5:30 AM CT MEM @ 7:00 AM CT

MEM @ 7:40 AM CT PIB @ 9:10 AM CT

PIB @ 11:00 AM CT MEM @ 12:30 PM CT

MEM @ 1:00 PM CT PIB @ 2:30 PM CT

PIB @ 4:30 PM CT MEM @ 6:00 PM CT

MEM @ 6:30 PM CT PIB @ 8:00 PM CT 

### Greenville, Mississippi*

Estimated Flight Operations

Departure Arrival

GLH @ 6:00 AM CT MEM @ 6:45 AM CT

MEM @ 7:15 AM CT GLH @ 8:00 AM CT

GLH @ 11:00 AM CT MEM @ 11:45 AM CT

MEM @ 12:15 PM CT GLH @ 1:00 PM CT

GLH @ 3:00 PM CT MEM @ 3:45 PM CT



### MEM @ 4:15 PM CT GLH @ 5:00 PM CT

Inseparable Service

– Greenville, MS & Laurel/Hattiesburg, MS

– Memphis International

– Jetstream (18 Seats)

* 18 Total Round Trips Per Week Also Applicable To Years 3

- 4Operation Revenues

MSL

- MEM & TUP

- MEM Revenues $1,675,000

Other Revenues 83,750

Total Operating Revenues $1,758,750

Direct Operating Expenses

Flying Operations $ 603,389

Fuel and Oil 1,698,760

Maintenance 1,383,379

Aircraft Leases 700,000

Total Direct $4,385,528

Marketing 100,000

Indirect 1,851,820

Total Operating Expenses $6,337,348

Operating Loss $4,578,598

Profit Element (5% total Oper. Exp.) 316,868

Compensation Required $4,895,466

Compensation per PAX $196

Compensation per Departure $998 

## Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Jetstream (8 Seats)

Option 4: Year 1 of 2 Year Service with Discount for 4 Year Term

MSL & TUP

- 24 Total Round Trips Per Week

- Based on 98% Completion Rate

Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Memphis International

– Jetstream (8 Seats)

# Passengers: 25,000

Average Fare MSL

- MEM: $75.00

Average Fare TUP

- MEM: $59.00

Departures : 4,906

Block Hours: 3,189

Revenue Passenger Miles: 2,775,000

Available Seat Miles: 4,344,238

04/10/2012

### Tupelo, Mississippi

Estimated Flight Operations

Departure Arrival

TUP @ 5:30 AM CT MEM @ 6:00 AM CT

MEM @ 6:30 AM CT TUP @ 7:00 AM CT

TUP @ 9:55 AM CT MEM @ 10:25 AM CT

MEM @ 11:05 AM CT TUP @ 11:35 AM CT

TUP @ 5:00 PM CT MEM @ 5:30 PM CT

MEM @ 6:10 PM CT TUP @ 6:40 PM CT

TUP @ 7:20 PM CT MEM @ 7:50 PM CT



### MEM @ 8:20 PM CT TUP @ 8:50 PM CT 

### Muscle Shoals, Alabama

Estimated Flight Operations

Departure Arrival

MSL @ 5:30 AM CT MEM @ 6:10 AM CT

MEM @ 6:40 AM CT MSL @ 7:20 AM CT

MSL @ 8:15 AM CT MEM @ 8:55 AM CT



### MEM @ 9:35 AM CT MSL @ 10:15 AM CT

MSL @ 4:40 PM CT MEM @ 5:20 PM CT

MEM @ 6:10 PM CT MSL @ 6:50 PM CT

MSL @ 7:25 PM CT MEM @ 8:05 PM CT

MEM @ 8:35 PM CT MSL @ 9:15 PM CT 

## Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Jetstream (8 Seats)

Option 4: Year 1 of 2 Year Service with Discount for 4 Year Term

MSL & TUP

- 24 Total Round Trips Per Week

- Based on 98% Completion Rate

04/10/2012 Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Memphis International

– Jetstream (8 Seats)Operation Revenues

MSL

- MEM & TUP

- MEM Revenues $1,782,000

Other Revenues 89,100

Total Operating Revenues $1,871,100

Direct Operating Expenses

Flying Operations $ 502,211

Fuel and Oil 1,539,892

Maintenance 1,390,738

Aircraft Leases 700,000

Total Direct $4,132,841

Marketing 100,000

Indirect 1,553,240

Total Operating Expenses $5,786,081

Operating Loss $3,914,981

Profit Element (5% total Oper. Exp.) 289,304

Compensation Required $4,204,285

Compensation per PAX $127

Compensation per Departure $1,143 

## Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Jetstream (18 Seats)

Option 4: Year 2 of 2 Year Service with Discount for 4 Year Term

MSL & TUP

- 18 Total Round Trips Per Week

- Based on 98% Completion Rate

Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Memphis International

– Jetstream (18 Seats)

# Passengers: 33,000

Average Fare MSL

- MEM: $59.00

Average Fare TUP

- MEM: $49.00

Departures : 3,679

Block Hours: 2,723

Revenue Passenger Miles: 4,686,000

Available Seat Miles: 9,378,271

04/10/2012 DISCOUNTED SUBSIDY

$4,162,242/Year

$1,131/Departure YEARS 3

- 4 DISCOUNT

FOR 4 YEAR TERM

## Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Jetstream (18 Seats)

Option 4: Year 2 of 2 Year Service with Discount for 4 Year Term

MSL & TUP

- 18 Total Round Trips Per Week

- Based on 98% Completion Rate

04/10/2012 Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Memphis International

– Jetstream (18 Seats)

* 18 Total Round Trips Per Week Also Applicable To Years 3

- 4 

### Tupelo, Mississippi*

Estimated Flight Operations

Departure Arrival

TUP @ 5:30 AM CT MEM @ 6:00 AM CT

MEM @ 6:30 AM CT TUP @ 7:00 AM CT

TUP @ 11:00 AM CT MEM @ 11:30 AM CT

MEM @ 12:00 PM CT TUP @ 12:30 PM CT

TUP @ 5:00 PM CT MEM @ 5:30 PM CT

MEM @ 6:10 PM CT TUP @ 6:40 PM CT 

### Muscle Shoals, Alabama*

Estimated Flight Operations

Departure Arrival

MSL @ 5:30 AM CT MEM @ 6:10 AM CT

MEM @ 6:40 AM CT MSL @ 7:20 AM CT

MSL @ 11:00 AM CT MEM @ 11:40 AM CT



### MEM @ 12:20 PM CT MSL @ 1:00 PM CT

MSL @ 4:40 PM CT MEM @ 5:20 PM CT

MEM @ 6:10 PM CT MSL @ 6:50 PM CTOperation Revenues

MSL

- ATL & TUP

- MEM Revenues $2,002,450

Other Revenues 100,123

Total Operating Revenues $2,102,573

Direct Operating Expenses

Flying Operations $ 669,614

Fuel and Oil 2,066,950

Maintenance 1,471,680

Aircraft Leases 700,000

Total Direct $4,908,244

Marketing 100,000

Indirect 1,775,875

Total Operating Expenses $6,784,119

Operating Loss $4,681,547

Profit Element (5% total Oper. Exp.) 339,206

Compensation Required $5,020,753

Compensation per PAX $186

Compensation per Departure $1,023 

## Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Jetstream (8 Seats)

Option 5: Year 1 of 2 Year Service with Discount for 4 Year Term

MSL & TUP

- 24 Total Round Trips Per Week

- Based on 98% Completion Rate

Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Atlanta

- Hartsfield International & Memphis International

– Jetstream (8 Seats)

# Passengers: 27,050

Average Fare MSL

- ATL: $89.00

Average Fare TUP

- MEM: $59.00

Departures : 4,906

Block Hours: 3,630

Revenue Passenger Miles: 3,843,850

Available Seat Miles: 5,557,494

04/10/2012

### Tupelo, Mississippi

Estimated Flight Operations

Departure Arrival

TUP @ 5:30 AM CT MEM @ 6:00 AM CT

MEM @ 6:30 AM CT TUP @ 7:00 AM CT

TUP @ 9:55 AM CT MEM @ 10:25 AM CT

MEM @ 11:05 AM CT TUP @ 11:35 AM CT

TUP @ 5:00 PM CT MEM @ 5:30 PM CT

MEM @ 6:10 PM CT TUP @ 6:40 PM CT

TUP @ 7:20 PM CT MEM @ 7:50 PM CT



### MEM @ 8:20 PM CT TUP @ 8:50 PM CT 

### Muscle Shoals, Alabama

Estimated Flight Operations

Departure Arrival

MSL @ 5:30 AM CT ATL @ 7:30 AM ET

ATL @ 8:15 AM ET MSL @ 8:15 AM CT

MSL @ 9:00 AM CT ATL @ 11:00 AM ET



### ATL @ 11:45 AM ET MSL @ 11:45 AM CT

MSL @ 1:00 PM CT ATL @ 3:00 PM ET

ATL @ 3:45 PM ET MSL @ 3:45 PM CT

MSL @ 5:00 PM CT ATL @ 7:00 PM ET

ATL @ 7:45 PM ET MSL @ 7:45 PM CT 

## Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Jetstream (8 Seats)

Option 5: Year 1 of 2 Year Service with Discount for 4 Year Term

MSL & TUP

- 24 Total Round Trips Per Week

- Based on 98% Completion Rate

04/10/2012 Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Atlanta

- Hartsfield International & Memphis International

– Jetstream (8 Seats)Operation Revenues

MSL

- ATL & TUP

- MEM Revenues $1,733,000

Other Revenues 86,650

Total Operating Revenues $1,816,650

Direct Operating Expenses

Flying Operations $ 502,211

Fuel and Oil 1,531,191

Maintenance 1,350,266

Aircraft Leases 700,000

Total Direct $4,083,668

Marketing 100,000

Indirect 1,575,740

Total Operating Expenses $5,759,408

Operating Loss $3,939,758

Profit Element (5% total Oper. Exp.) 287,971

Compensation Required $4,227,729

Compensation per PAX $132

Compensation per Departure $1,149 

## Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Jetstream (18 Seats)

Option 5: Year 2 of 2 Year Service with Discount for 4 Year Term

MSL & TUP

- 18 Total Round Trips Per Week

- Based on 98% Completion Rate

Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Atlanta

- Hartsfield International & Memphis International

– Jetstream (18 Seats)

# Passengers: 32,000

Average Fare MSL

- ATL: $59.00

Average Fare TUP

- MEM: $49.00

Departures : 3,679

Block Hours: 2,723

Revenue Passenger Miles: 4,599,000

Available Seat Miles: 9,378,271

04/10/2012 DISCOUNTED SUBSIDY

$4,185,451/Year

$1,138/Departure YEARS 3

- 4 DISCOUNT

FOR 4 YEAR TERM

## Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Jetstream (18 Seats)

Option 5: Year 2 of 2 Year Service with Discount for 4 Year Term

MSL & TUP

- 18 Total Round Trips Per Week

- Based on 98% Completion Rate

04/10/2012 Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Atlanta

- Hartsfield International & Memphis International

– Jetstream (18 Seats)

* 18 Total Round Trips Per Week Also Applicable To Years 3

- 4 

### Tupelo, Mississippi*

Estimated Flight Operations



### Departure Arrival

TUP @ 6:30 AM CT MEM @ 7:00 AM CT

MEM @ 7:50 AM CT TUP @ 8:20 AM CT

TUP @ 9:00 AM CT MSL @ 9:40 AM CT

MSL @ 10:00 AM CT ATL @ 12:00 PM ET

ATL @ 12:50 PM ET MSL @ 12:50 PM CT

MSL @ 1:20 PM CT TUP @ 2:00 PM CT

TUP @ 2:20 PM CT MEM @ 2:50 PM CT

MEM @ 4:00 PM CT TUP @ 4:30 PM CT

TUP @ 6:00 PM CT MEM @ 6:30 PM CT

MEM @ 7:30 PM CT TUP @ 8:00 PM CT 

### Muscle Shoals, Alabama*

Estimated Flight Operations

Departure Arrival



### MSL @ 5:30 AM CT ATL @ 7:30 AM ET

ATL @ 8:15 AM ET MSL @ 8:15 AM CT

MSL @ 8:45 AM CT TUP @ 9:25 AM CT

TUP @ 9:45 AM CT MEM @ 10:15 AM CT

MEM @ 11:00 AM CT TUP @ 11:30 AM CT

TUP @ 12:00 PM CT MSL @ 12:40 PM CT

MSL @ 1:15 PM CT ATL @ 3:15 PM ET

ATL @ 4:00 PM ET MSL @ 4:00 PM CT



### MSL @ 5:00 PM CT ATL @ 7:00 PM ET

ATL @ 7:50 PM ET MSL @ 7:50 PM CTOperation Revenues

MSL

- MEM & TUP

- MEM Revenues $1,019,200

Other Revenues 50,960

Total Operating Revenues $1,070,160

Direct Operating Expenses

Flying Operations $ 531,644

Fuel and Oil 903,979

Maintenance 795,812

Aircraft Leases 480,000

Total Direct $2,711,435

Marketing 100,000

Indirect 1,522,400

Total Operating Expenses $4,333,835

Operating Loss $3,263,675

Profit Element (5% total Oper. Exp.) 216,692

Compensation Required $3,480,367

Compensation per PAX $167

Compensation per Departure $709 

## Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Piper Navajo

Option 6: Year 1 of 2 Year Service with Discount for 4 Year Term

MSL & TUP

- 24 Total Round Trips Per Week

- Based on 98% Completion Rate

Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Memphis International

– Navajo

# Passengers: 20,800

Average Fare MSL

- MEM: $49.00

Average Fare TUP

- MEM: $49.00

Departures : 4,906

Block Hours: 3,311

Revenue Passenger Miles: 2,338,800

Available Seat Miles: 3,818,331

04/10/2012

### Tupelo, Mississippi

Estimated Flight Operations

Departure Arrival

TUP @ 5:30 AM CT MEM @ 6:00 AM CT

MEM @ 6:30 AM CT TUP @ 7:00 AM CT

TUP @ 9:55 AM CT MEM @ 10:25 AM CT

MEM @ 11:05 AM CT TUP @ 11:35 AM CT

TUP @ 5:00 PM CT MEM @ 5:30 PM CT

MEM @ 6:10 PM CT TUP @ 6:40 PM CT

TUP @ 7:20 PM CT MEM @ 7:50 PM CT



### MEM @ 8:20 PM CT TUP @ 8:50 PM CT 

### Muscle Shoals, Alabama

Estimated Flight Operations

Departure Arrival

MSL @ 5:30 AM CT MEM @ 6:10 AM CT

MEM @ 6:40 AM CT MSL @ 7:20 AM CT

MSL @ 8:15 AM CT MEM @ 8:55 AM CT



### MEM @ 9:35 AM CT MSL @ 10:15 AM CT

MSL @ 4:40 PM CT MEM @ 5:20 PM CT

MEM @ 6:10 PM CT MSL @ 6:50 PM CT

MSL @ 7:25 PM CT MEM @ 8:05 PM CT

MEM @ 8:35 PM CT MSL @ 9:15 PM CT 

## Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Piper Navajo

Option 6: Year 1 of 2 Year Service with Discount for 4 Year Term

MSL & TUP

- 24 Total Round Trips Per Week

- Based on 98% Completion Rate

04/10/2012 Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Memphis International

– NavajoOperation Revenues

MSL

- MEM & TUP

- MEM Revenues $1,888,000

Other Revenues 94,400

Total Operating Revenues $1,982,400

Direct Operating Expenses

Flying Operations $ 627,304

Fuel and Oil 1,575,709

Maintenance 1,089,043

Aircraft Leases 700,000

Total Direct $3,992,056

Marketing 100,000

Indirect 1,702,720

Total Operating Expenses $5,794,776

Operating Loss $3,812,376

Profit Element (5% total Oper. Exp.) 289,739

Compensation Required $4,102,115

Compensation per PAX $128

Compensation per Departure $1,115 

## Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Jetstream (18 Seats)

Option 6: Year 2 of 2 Year Service with Discount for 4 Year Term

MSL & TUP

- 18 Total Round Trips Per Week

- Based on 98% Completion Rate

Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Memphis International

– Jetstream (18 Seats)

# Passengers: 32,000

Average Fare MSL

- MEM: $59.00

Average Fare TUP

- MEM: $59.00

Departures : 3,679

Block Hours: 2,723

Revenue Passenger Miles: 3,543,500

Available Seat Miles: 7,363,924

04/10/2012 DISCOUNTED SUBSIDY

$4,061,094/Year

$1,104/Departure YEARS 3

- 4 DISCOUNT

FOR 4 YEAR TERM

### Tupelo, Mississippi*

Estimated Flight Operations

Departure Arrival

TUP @ 5:30 AM CT MEM @ 6:00 AM CT

MEM @ 6:30 AM CT TUP @ 7:00 AM CT

TUP @ 11:00 AM CT MEM @ 11:30 AM CT

MEM @ 12:00 PM CT TUP @ 12:30 PM CT

TUP @ 5:00 PM CT MEM @ 5:30 PM CT

MEM @ 6:10 PM CT TUP @ 6:40 PM CT 

### Muscle Shoals, Alabama*

Estimated Flight Operations

Departure Arrival



### MSL @ 5:30 AM CT MEM @ 6:10 AM CT

MEM @ 6:40 AM CT MSL @ 7:20 AM CT

MSL @ 11:00 AM CT MEM @ 11:40 AM CT

MEM @ 12:20 PM CT MSL @ 1:00 PM CT

MSL @ 4:40 PM CT MEM @ 5:20 PM CT

MEM @ 6:10 PM CT MSL @ 6:50 PM CT 

## Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Jetstream (18 Seats)

Option 6: Year 2 of 2 Year Service with Discount for 4 Year Term

MSL & TUP

- 18 Total Round Trips Per Week

- Based on 98% Completion Rate

04/10/2012 Inseparable Service

– Muscle Shoals, AL & Tupelo, MS

– Memphis International

– Jetstream (18 Seats)

* 18 Total Round Trips Per Week Also Applicable To Years 3

- 4

# A WINNING CHOICE!

04/10/2012 

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