# LAVV 0FF[CJE OF 

# J 01-IN 

# MIETUS, LLC

670 1 0EM OC l l t \ C Y B O ULEVARD, S UIT E 

# 300

BETH ES DA, 

# MD 20817-7500



# March 12

, 2015

BY ELECTRONIC MAIL

Ms. Lauralyn Remo

Chief

, Air Carrier Fitness Division

Department of Transportation

1200 New Jersey Avenue

, SE

Washington, DC 20590 JOHN 

# R... MIETUS, JR..

(202) 7 4 7-5212



# john @ m i e tuslaw .com



# Re: Eastern Air Lines Group. Inc

., Dockets OST-2014-0012/0013

Dear Ms. Remo:

By l etter issued March 11

, 2015, the D e partment notified Eastern Air Lines

Group, Inc. ("Eastern") of its intended ruling on Eastern's requests for confidential

treatment of its Confidential Exhibits in the above-ca ption ed dockets. Th e

Depaxtment noted that " [i]f reconsideration or judicial revi ew is not sought

, Eastern

should immediat e ly r es ubmit to the appropriate docket in this proceeding, t h e

exhibit[s] for placement on the public record. "

Consistent with the letter ruling

, Eastern submits as docketed Exhibits the

information for which the D e partment intend s to deny confidential treatm e nt

. Attached Exhibit 29 is a copy of Confidential Exhibit C in which only the

information for which the Department granted confi dential treatment h as be e n

redact e d. Similarly

, attached Exhibit 30 is a copy of Confidential Exhibit 

# 0 that

has be e n redacted in accordance with the lett er ruling.

Respectfully submitted

,

# rt.~e:.~**~**

Counsel for

# Eas~ Air Lines Group

, In c

.

Exhibits (numbering continued from original application)

29: Public copy of Confidential Exhibit C ( reda cted as authorized by D e partm e nt ruling)

30: Public copy of Confidential Exhibit 0 

# (redacted a s a uthoriz e d by Departm ent ruling)

cc : Pat McLaughlin

, Manager

, South Florida Certificate Management Office, FAAStart Up Costs2014 2014 2014 2014 2014 2014 2014 2014 2014 2014 2014 2014January February MarchApril May June JulyAugustSeptemberOctoberNovemberDecemberTotalStart Up SummaryExpenses $1,071,400 $221,400 $221,400 $269,250 $269,250 $269,250 $299,500 $299,500 $299,500 $333,600 $1,126,250 $1,366,900 $6,047,200Deposits etc. $375,000 $25,000 $25,000 $25,000 $375,000 $25,000 $25,000 $25,000 $375,000 $25,000 $100,000 $100,000 $1,500,000Monthly Total $1,446,400 $246,400 $246,400 $294,250 $644,250 $294,250 $324,500 $324,500 $674,500 $358,600 $1,226,250 $1,466,900 $7,547,200Cumulative Total$1,446,400 $1,692,800 $1,939,200 $2,233,450 $2,877,700 $3,171,950 $3,496,450 $3,820,950 $4,495,450 $4,854,050 $6,080,300 $7,547,200Approximate Start Up ScenarioCEO1 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000Flight Ops2 10000 20000 10000 10000 10000 20000 20000 20000 20000 20000 20000 20000 20000 200002 5000 100000000 5000 5000 5000 10000 10000 10000Maintenance2 10000 20000 10000 10000 10000 20000 20000 20000 20000 20000 20000 20000 20000 200001 5000 50000000 5000 5000 5000 5000 5000 5000Marketing1 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 100001 5000 500000 5000 5000 5000 5000 5000 5000 5000 5000 5000Ground Ops1 10000 1000000 10000 10000 10000 10000 10000 10000 10000 10000 100001 5000 50000000 5000 5000 5000 5000 5000 5000Finance1 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 100002 5000 100000000 5000 5000 5000 10000 10000 10000Systems1 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 100002 5000 100000000 5000 5000 5000 10000 10000 10000Admin1 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 100003 5000 1500000 10000 10000 10000 10000 10000 10000 15000 15000 1500022170000 64000 64000 64000 100000 100000 100000 120000 120000 120000 136000 136000 136000Expenses20000 5000 5000 5000 10000 10000 10000 15000 15000 15000 20000 20000 20000Office20000 5000 5000 5000 7500 7500 7500 10000 10000 10000 20000 20000 20000201000 74000 74000 74000 117500 117500 117500 145000 145000 145000 176000 176000 176000Contingency20000 7400 7400 7400 11750 11750 11750 14500 14500 14500 17600 17600 17600221000 81400 81400 81400 129250 129250 129250 159500 159500 159500 193600 193600 193600 $1,691,250Legal/Professional40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 $480,000DOT Consultants80000Expenses20000100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000$1,200,000CrewsCaptains10 8500 85000F/Os10 6000 60000F/As40 3000 120000Sked/Dispatch5 5000 25000Maintanance 5 5000 25000315000252000 252000$504,000Training300000 300000$600,000Training Flights45 $3,683 $165,750$55,250 $110,500$165,750Aircraft 175000 525000175000 350000$525,000Insurance - Hull10400 3120010400 20800$31,200Financing Costs850000 850000TOTAL EXPENSES$1,071,400 $221,400 $221,400 $269,250 $269,250 $269,250 $299,500 $299,500 $299,500 $333,600 $1,126,250 $1,366,900 $6,047,200Aircraft Deposits6 175000 1050000 350000350000350000$1,050,000Other 25000 25000 25000 25000 25000 25000 25000 25000 25000 25000 100000 100000$450,000TOTAL DEPOSITS$375,000 $25,000 $25,000 $25,000 $375,000 $25,000 $25,000 $25,000 $375,000 $25,000 $100,000 $100,000 $1,500,000$1,446,400 $246,400 $246,400 $294,250 $644,250 $294,250 $324,500 $324,500 $674,500 $358,600 $1,226,250 $1,466,900 $7,547,200Start Up SummaryExpenses$1,071,400 $221,400 $221,400 $269,250 $269,250 $269,250 $299,500 $299,500 $299,500 $333,600 $1,126,250 $1,366,900 $6,047,200Deposits etc.$375,000 $25,000 $25,000 $25,000 $375,000 $25,000 $25,000 $25,000 $375,000 $25,000 $100,000 $100,000 $1,500,000Monthly Total$1,446,400 $246,400 $246,400 $294,250 $644,250 $294,250 $324,500 $324,500 $674,500 $358,600 $1,226,250 $1,466,900 $7,547,200Cumulative Total$1,446,400 $1,692,800 $1,939,200 $2,233,450 $2,877,700 $3,171,950 $3,496,450 $3,820,950 $4,495,450 $4,854,050 $6,080,300 $7,547,200Income Statement2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015AnnualJanuary February March April May June July August September October November DecemberPositioning Block Hours 30 30 30 30 30 30 45 45 45 45 45 45 450Positioning Flights 10 10 10 10 10 10 15 15 15 15 15 15 150Revenue Block Hours 400 400 400 400 400 400 600 600 600 600 600 600 6000Revenue per Block HourTotal Revenue $0Start Up Expenses$100,000$100,000 200000Operational ExpensesAircraft $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $525,000 $525,000 $525,000 $525,000 $525,000 $525,000 5250000Crew $214,000 $214,000 $214,000 $214,000 $214,000 $214,000 $321,000 $321,000 $321,000 $321,000 $321,000 $321,000 3210000Maintenance $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $450,000 $450,000 $450,000 $450,000 $450,000 $450,000 4500000Insurance $49,200 $49,200 $49,200 $49,200 $49,200 $49,200 $73,800 $73,800 $73,800 $73,800 $73,800 $73,800 738000Positioning - Block Hour $126,240 $126,240 $126,240 $126,240 $126,240 $126,240 $189,360 $189,360 $189,360 $189,360 $189,360 $189,360 1893600Positioning - Flight $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 150000Corporate $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $275,000 $275,000 $275,000 $275,000 $275,000 $275,000 3150000Total Expenses $1,299,440 $1,299,440 $1,299,440 $1,299,440 $1,299,440 $1,399,440 $1,849,160 $1,849,160 $1,849,160 $1,849,160 $1,849,160 $1,949,16019091600Pre Interest Profit / LossInterestNet Profit / LossBalance SheetCurrent AssetsCash on Hand $5,778,060 $5,878,620 $5,804,180 $5,904,740 $5,830,300 $5,830,860 $5,906,700 $6,157,540 $6,233,380 $6,484,220 $6,560,060 $6,710,900 6710900Deposits $1,675,000 $1,675,000 $1,850,000 $1,850,000 $2,025,000 $2,025,000 $2,200,000 $2,200,000 $2,375,000 $2,375,000 $2,550,000 $2,550,000 2550000Fixed Assets (EAL Brand) $600,000 $600,000 $600,000 $600,000 $600,000 $600,000 $600,000 $600,000 $600,000 $600,000 $600,000 $600,000 600000$8,053,060 $8,153,620 $8,254,180 $8,354,740 $8,455,300 $8,455,860 $8,706,700 $8,957,540 $9,208,380 $9,459,220 $9,710,060 $9,860,9009860900LiabilitiesCurrent0000000000000Long Term Debt0000000000000Common Equity $14,000,000 $14,000,000 $14,000,000 $14,000,000 $14,000,000 $14,000,000 $14,000,000 $14,000,000 $14,000,000 $14,000,000 $14,000,000 $14,000,000 14000000Income/Loss($5,946,640) ($5,846,080) ($5,745,520) ($5,644,960) ($5,544,400) ($5,543,840) ($5,293,000) ($5,042,160) ($4,791,320) ($4,540,480) ($4,289,640) ($4,138,800)-4138800$8,053,360 $8,153,920 $8,254,480 $8,355,040 $8,455,600 $8,456,160 $8,707,000 $8,957,840 $9,208,680 $9,459,520 $9,710,360 $9,861,2009861200

# Eastern Air Lines Group, Inc.

Charter Operations



# Key Assumptions

Base Miami (MIA)

Funding

New Investors (Common) January 1, 2014 $14,000,000

Financing Costs $850,000

EAL Trademark - Asset Purchase $675,000

Start Up Period January 1, 2014

Revenue Operations January 1, 2015

Aircraft Assumptions

Aircraft A 320

Seating Configuration 170

Monthly Lease Rate $175,000

Aircraft Intake

Aircraft 1 November 1, 2014 1

Aircraft 2 December 1, 2014 2

Aircraft 3 July 1, 2015 3

Operational Assumptions

Monthly Revenue Flying 200 hours per aircraft

Monthly Non Revenue Flying 15 hours per aircraft

Average Trip Length (Miles) 1100 statute miles

Average Block Time 3 hours per trip

Revenue Assumptions

ACMI Block Hour Charge Rate

Cost Assumptions

Start Up Costs As Shown on Start Up Page

Aircraft Monthly Lease Rate $175,000 per aircraft

Cockpit Crew $300 per block hour

Cabin Crew $235 per block hour 5 crew

Maintenance $750 per block hour

Insurance - Hull $52 per block hour

Insurance - Liability $71 per block hour

Fuel Consumption 800 gallons per block hour

Fuel Cost $3.50 per gallon

Landing - Airport Fees $1,000 per flight

Positioning Flights per Block Hour $4,208

Positioning Flights per Flight $1,000

Corporate Overhead $250,000 /mo + $ 25K/mo for each add'l aircraft after 2.IncomeStatement1I20152015201520152015I2015I2015I2015I2015I2016I2016I2016'Year1AprilMayJuneJulyAugustlSeptemberIOctoberINovemberIDecemberIJanuarvIFebruarvIMarch!AircraftTotal80011111122222270011111111111122222333333LeaseCost$295,000$465,000$465,000$465,000$465,000$465,000$720,000$720,000$720,000$720,000$720,000$720,000$6,940,000AircraftLeaseSupport$20,000$40,000$40,000$40,000$40,000$40,000$60,000$60,000$60,000$60,000$60,000$60,000$580,000NetLeaseCost$275,000$425,000$425,000$425,000$425,000$425,000$660,000$660,000$660,000$660,000$660,000$660,000$6,360,000NetLeaseCostperAircraft$275,000$212,500$212,500$212,500$212,500$212,500$220,000$220,000$220,000$220,000$220,000$220,000PositioningBlockHours122424242424363636363636348PositioningFlights488888121212121212116RevenueBlockHoursperAircraft200200200 200 200200 200200 200 200200 2002400TotalRevenueBlockHours2004004004004004006006006006006006005,800------RevenueeerBlockHour-800RevenueeerBlockHour-700IITotalRevenue-StartUeExeensesII$500,000OperationalExpensesAircraft$275,000$425,000$425,000$425,000$425,000$425,000$660,000$660,000$660,000$660,000$660,000$660,000$6,360,000Crew$101,795$203,589$203,589$203,589$203,589$203,589$305,384$305,384$305,384$305,384$305,384$305,384$2,952,043Maintenance$160,000$320,000$320,000$320,000$320,000$320,000$480,000$480,000$480,000$480,000$480,000$480,000$4,640,000Insurance$60,000$104,250$104,250$104,250$104,250$104,250$164,250$164,250$164,250$164,250$164,250$164,250$1,566,750Positioning-BlockHour$40,458$80,915$80,915$80,915$80,915$80,915$121,373$121,373$121,373$121,373$121,373$121,373$1,173,273Positioning-Flight$4,000$16,000$16,000$16,000$16,000$16,000$36,000$36,000$36,000$36,000$36,000$36,000$300,000Corporate$220,000$220,000$220,000$220,000$220,000$220,000$250,000$250,000$250,000$250,000$250,000$250,000$2,820,000!TotalExpenses$1,111,252$1,369,755$1,369,755$1,369,755$1,369,755$1,619,755$2,017,007$2,017,007$2,017,007$2,017,007$2,017,007$2,017,007$20,312,066PreInterestProfitILoss-I-NetProfitILoss-nmox::J::::r-ncfC.:m-·rowt"'T::JVIw,-to,-too-·roQ)-i-::J)>"C::::r::;.Q)a:cOQro,-to::JVI-CONFIDENTIAL

# Eastern Airlines Charter Operation

Key Assumptions

Base Miami (MIA)

Funding

Equity $9,173,000

Financing Costs $56,240

Net Equity $9,116,760

Fixed Asset Purchase (EAL Brand) $655,000

Start Up Period January 1, 2014

March 31, 2015

Revenue Operations April 1, 2015

Aircraft Assumptions

Aircraft B737-800 B737-800 B737-700 B737-700

Seating Configuration 12/150 12/150 8/126 8/126

Aircraft Intake Aircraft Lease Rate Aircraft Lease Rate

Aircraft 1 December 1, 2014 1 $295,000

Aircraft 2 May 1, 2015 1 $170,000

Aircraft 3 July 1, 2015 1 $255,000

Aircraft Lease Support $20,000 Per month per aircraft

Aircraft Deposits 3 months Gross Lease Rate paid in 3 equal installments in Months 4, 2 & 1 prior to Service Entry

Operational Assumptions

Monthly Revenue Flying 200 hours per aircraft

Monthly Non Revenue Flying 12 hours per aircraft

Average Trip Length (Miles) 1100 statute miles

Average Block Time (Revenue & Positioning) 3 hours per trip

Revenue Assumptions B737-800 B737-700

ACMI Block Hour Charge Rate

Cost Assumptions

Start Up Costs As Shown on Start Up Summary Page & Detailed EAL Start Up Expense Report

Aircraft Monthly Lease Rate As above

Cockpit Crew incl. Expenses $305 per block hour

Cabin Crew incl. Expenses $204 per block hour - 4 crew per flight

Maintenance $800 per block hour

Insurance - 800 $60,000 per month

Insurance - 700 $44,250 per month

Positioning Flights

Fuel Consumption 750 gallons per block hour

Fuel Cost $2.75 per gallon

Landing - Airport Fees $1,000 per flight

Positioning Flights per Block Hour $3,371

Positioning Flights per Flight $1,000

Corporate Overhead $220,000 up to 2 aircraft

$250,000 3 aircraft