LAVV 0FF[CJE OF J 01-IN MIETUS, LLC 

6701 0EMOCll t\CY BOULEVARD, SUITE 300 

BETHESDA, 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 ietuslaw .com 

Re: Eastern Air Lines Group. Inc., Dockets OST-2014-0012/0013 

Dear Ms. Remo: 

By letter issued March 11, 2015, the Department 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-captioned dockets. The 

Depaxtment noted that "[i]f reconsideration or judicial review is not sought, Eastern 

should immediately resubmit to the appropriate docket in this proceeding, the 

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

Consistent with the letter ruling, Eastern submits as docketed Exhibits the 

information for which the Department intends to deny confidential treatment. 

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

information for which the Department granted confidential treatment has been 

redacted. Similarly, attached Exhibit 30 is a copy of Confidential Exhibit 0 that 

has been redacted in accordance with the letter ruling. 

Respectfully submitted, 

rt.~e:.~ Counsel for Eas~ Air ~ Lines Group, Inc. 

Exhibits (numbering continued from original application) 

29: Public copy of Confidential Exhibit C (redacted as authorized by Department ruling) 

30: Public copy of Confidential Exhibit 0 (redacted as authorized by Department ruling) 

cc: Pat McLaughlin, Manager, South Florida Certificate Management Office, FAA 
Start Up Costs 2014 2014 2014 2014 2014 2014 2014 2014 2014 2014 2014 2014

January February March April May June July August September October November December Total

Start 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 Scenario

CEO 1 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000Flight Ops 2 10000 20000 10000 10000 10000 20000 20000 20000 20000 20000 20000 20000 20000 20000

2 5000 10000 0 0 0 0 5000 5000 5000 10000 10000 10000

Maintenance 2 10000 20000 10000 10000 10000 20000 20000 20000 20000 20000 20000 20000 20000 20000

1 5000 5000 0 0 0 0 5000 5000 5000 5000 5000 5000

Marketing 1 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000

1 5000 5000 0 0 5000 5000 5000 5000 5000 5000 5000 5000 5000

Ground Ops 1 10000 10000 0 0 10000 10000 10000 10000 10000 10000 10000 10000 10000

1 5000 5000 0 0 0 0 5000 5000 5000 5000 5000 5000

Finance 1 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000

2 5000 10000 0 0 0 0 5000 5000 5000 10000 10000 10000

Systems 1 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000

2 5000 10000 0 0 0 0 5000 5000 5000 10000 10000 10000

Admin 1 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000

3 5000 15000 0 0 10000 10000 10000 10000 10000 10000 15000 15000 15000

22 170000 64000 64000 64000 100000 100000 100000 120000 120000 120000 136000 136000 136000

Expenses 20000 5000 5000 5000 10000 10000 10000 15000 15000 15000 20000 20000 20000Office 20000 5000 5000 5000 7500 7500 7500 10000 10000 10000 20000 20000 20000

201000 74000 74000 74000 117500 117500 117500 145000 145000 145000 176000 176000 176000

Contingency 20000 7400 7400 7400 11750 11750 11750 14500 14500 14500 17600 17600 17600

221000 81400 81400 81400 129250 129250 129250 159500 159500 159500 193600 193600 193600 $1,691,250

Legal/Professional 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 $480,000DOT Consultants 80000Expenses 20000

100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 $1,200,000

CrewsCaptains 10 8500 85000F/Os 10 6000 60000F/As 40 3000 120000Sked/Dispatch 5 5000 25000Maintanance 5 5000 25000

315000 252000 252000 $504,000

Training 300000 300000 $600,000Training Flights 45 $3,683 $165,750 $55,250 $110,500 $165,750

Aircraft 175000 525000 175000 350000 $525,000Insurance - Hull 10400 31200 10400 20800 $31,200Financing Costs 850000 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 Deposits 6 175000 1050000 350000 350000 350000 $1,050,000

Other 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 $7,547,200

Start 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 $7,547,200

CONFIDENTIAL
Income Statement 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 Annual

January February March April May June July August September October November December

Positioning 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 $

0

Start 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 $1,949,160 19091600Pre Interest Profit / LossInterestNet Profit / Loss

Balance Sheet

Current 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 $9,860,900 9860900

LiabilitiesCurrent 0000000000000Long Term Debt 0000000000000Common 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 $9,861,200 9861200

CONFIDENTIAL
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.

CONFIDENTIAL
Income Statement 1 I 2015 2015 2015 2015 2015 I 2015 I 2015 I 2015 I 2015 I 2016 I 

April May June July August l September I October I November I December I Januarv I F

!Aircraft Total 

800 1 1 1 1 1 1 2 2 2 2 

700 1 1 1 1 1 1 1 1 1 

1 2 2 2 2 2 3 3 3 3 

Lease Cost $295,000 $465,000 $465,000 $465,000 $465,000 $465,000 $720,000 $720,000 $720,000 $720,000 $

Aircraft Lease Support $20,000 $40,000 $40,000 $40,000 $40,000 $40,000 $60,000 $60,000 $60,000 $60,000 $

Net Lease Cost $275,000 $425,000 $425,000 $425,000 $425,000 $425,000 $660,000 $660,000 $660,000 $660,000 $

Net Lease Cost per Aircraft $275,000 $212,500 $212,500 $212,500 $212,500 $212,500 $220,000 $220,000 $220,000 $220,000 $

Positioning Block Hours 12 24 24 24 24 24 36 36 36 36 

Positioning Flights 4 8 8 8 8 8 12 12 12 12 

Revenue Block Hours per Aircraft 200 200 200 200 200 200 200 200 200 200 

Total Revenue Block Hours 200 400 400 400 400 400 600 600 600 600 

-- -- --

Revenue eer Block Hour - 800 

Revenue eer Block Hour - 700 

Total Revenue I I 

Start Ue Exeenses I I Operational Expenses 

Aircraft $275,000 $425,000 $425,000 $425,000 $425,000 $425,000 $660,000 $660,000 $660,000 $660,000 

Crew $101 ,795 $203,589 $203,589 $203,589 $203,589 $203,589 $305,384 $305,384 $305,384 $305,384 

Maintenance $160,000 $320,000 $320,000 $320,000 $320,000 $320,000 $480,000 $480,000 $480,000 $480,000 

Insurance $60,000 $104,250 $104,250 $104,250 $104,250 $104,250 $164,250 $164,250 $164,250 $164,250 

Positioning - Block Hour $40,458 $80,915 $80,915 $80,915 $80,915 $80,915 $121 ,373 $121 ,373 $121 ,373 $121 ,373 

Positioning - Flight $4,000 $16,000 $16,000 $16,000 $16,000 $16,000 $36,000 $36,000 $36,000 $36,000 

Corporate $220,000 $220,000 $220,000 $220,000 $220,000 $220,000 $250,000 $250,000 $250,000 $250,000 

!Total Expenses $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

Pre Interest Profit I Loss - 

Net Profit I Loss 

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

CONFIDENTIAL