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BEFOR E TH E DEPARTMEN T O F TRANSPORTATIO N

WASHINGTON , D.C
. OEBARTMFN T O F .MANSPORTATIO N 

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### ••'CKE T OPERATION S 

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Essential Air

Servic e a t ALPENA , MICHIGA N Unde r 4 9 U.S.C
. §4173 1 e t seq . ) ) ) 

### ) OST-2009-030 0 )

GULFSTREA M INTERNATIONA L AIRLINE S PROPOSA L T O PROVID E SUBSIDIZE D AI RSERIC E A T ALPENA , MICHIGA N Correspondenc e wit

h regard t o thi s documen t

shoul d b e addresse d to : Micke y Bowman Vic e Presiden t

o f Essential Ai

r Servic e GulfstreamInternationa l Airline s 1100 Le e Wagene r

Blvd , Suite 20 1 Ft
. Lauderdale , P

L 3331 5 Telephone : 270-689-218 0 Fax:270-689-218 0 E-Mail : mbowman@2ulfstreamair.co m GulfstreamInternationa l Airline s C'Gulfstream'' ) cordiall y submit s it s proposa l to provid e subsidize d ai r servic e to Alpena , Michigan
. Gulfstrea mhereb y offer s on e optio n fo r service
. Gulfstreampropose s to operat e flights , unde r it s Unite d Expres s codeshar e identit y to th e hu

b airpor t of Cleveland , Ohio
. Thi s bi d i s contineen t upo n Unite d Airline s grantin g it s permissio n fo r suc h a n operation
. Gulfstreambelieve s tha

t the strengt

h of th e Unite d Airline s hub a t Clevelan d Hopkin s International Airpor t wil l hav e apositiv e effec t o n ridership
. Continental and Unite d combine d hav e roughl y 20 0 departure s fro mCL E to som e 6 1 destinations
. Other carrier s boos t

th e overal l Clevelan d activity to roughl y 28 0 dail y departures
. Sinc e establishin g our CLE feeder

operatio n i

n Septembe r

o f 2008 , Gulfstreamha s achieve d a 98 % controllabl e completio n factor wit h a n arrival : 1 4 rate s o f

nearl y 90%
. W e ar

e please d to offe

r a servic e optio n involvin g thre e roundtrip s eac h servic e day to Clevelan d to b e operate d o n anon-sto p basis
. I n complianc e wit

h Publi c Law 100-223 , Gulfstreampropose s to operat e thes e flight s usin g Beec h 1900D turboprop s tha

t ar e pressurize d and accommodat e 1 9 passengers . Th e I900 D feature s stan d u p headroo m and apressurize d cabi n tha t we fee l i s critica l i

n recoverin g los t

passenger s wit

h ampl e carg o capacity to accommodat e eve n bulk

y military duffl e bags
. On e o f th e hallmark s o f

th e Gulfstrea

moperatio n i s ou r

ability t o provid e saf

e an d reliabl e transportation
. Toward thi s end , Gulfstreamha s establishe d aregional maintenanc e bas e i n DuBois , Pennsylvani at o suppor t thes e flights
. Additionall y thi s proposal woul d benefi t fro madedicate d spar e aircraf t tha t wa s establishe d wit

h a n earlie r Clevelan d based , EA S package
. Wit h thi s spar e locate d i

n Cleveland , we hav e grea t flexibilit y i n respondin g to an

y operational challenge s and ca n assur e thi s community receive s th e leve l o f operationa l performanc e i t deserves
.

### Servic e Optio n 1

3 6 Weekl y frequencie s betwee n Alpena , Michiga n an dCleveland , Ohi o Gulfstreampropose s t

o operat e thes e flight s under ou r Unite dExpres s codeshar e relationshi p wit h Unite d Airlines
. Th e limin g of

thes e flight s woul db e optimize dfo r connection s t

o andfro mUnite dflight s a

t Cleveland
. Gulfstreampropose s t o encourag e connectin g traffi c by usin g asimplifie d"ad don " fe e structur e whereb y passenger s connectin g t o o r fro mU A flight s woul dpa

y onl y a n incremental S8 5 on e wa y fo r th e Gulfstreamsegment . Thi s servic e constitute s thre e weekda y roundtrip s operatin g o n anon-sto p routing
. Weeken dservic e woul dconsis t o f on e roun dtrip , non-sto p fligh t o n Saturday an dtw o roundtrip , non-sto p flight s o n Sunday
.

Servic e Optio n 1 

### Gulfstrea mAirline s Sampl e Fligh t

Schedul e
FRO M ST A T O

ST A DE P AR R

TIM E TIM E FL T

NU M EQUI P FRE Q STO P

CLEVELAN D ALPEN A CLEVELAN D ALPEN A CLEVELAN D ALPEN A 084 5 101 5 152 0 165 0 203 5 220 5 407 1

407 3 407 5 BE l BE l BE l X7

- X 6 X 6
ALPEN A CLEVELAN D 062 5 075 0 407 0 BE l X 7 0 ALPEN A CLEVELAN D 125 0 141 5 407 2 BE l X 6 0 ALPEN A CLEVELAN D 170 5 183 0 407 4 BE l X 6 0
(Note : Thi s Schedul e i s fo r illustrativ e purpose s andma y no t reflec t th e fina l publishe dproduct )

### GULFSTREA M INTERNATIONA L

AIRLINE S Essentia l Ai r

Servic e Proposa l Alpena , M I - Cleveland , O H Optio n I Alpen a Hu b Serve dClevelan d Number o f Roundtrip s per

Servic e Da

y 3 ( 3 non-sto p roun dtrips , 6 day s pe r week) Operatin g Statistic s Assume dCompletio n % 97.0 % Annua l Adjuste dBloc k

Hour s 2,655.3 8 Annua l Adjuste dDeparture s 1,820.8 3 Annua l Adjuste dASM s 9,237,08 9 Annua l RPM s 4,359,39 8 Projecte dLoadFacto r

47.2 % Revenu e Projection s Enplane dPassenger s 16,32 7

(Averag e a s Mileag e Operated ) Averag e Fare Passenge r

Revenu e Expens e Projection s Flight Operation s Ownershi p Maintenanc e Reservations , Station s & Administratio n Fuel Marketin g Tota l Annua l Expense s Projecte dProfit

/ (Loss ) Profi t Element @ 5 % ! Annua l Subsid y Require d Subsidy per

Departur e Subsidy pe

r Passenge r 26 7 $ 78.6 3 S 1,283,73 7 $368,34 5 $266,40 0 $1,017,55 6 $1,303,95 1 $1,348,93 4 $6,00 0 $4,311,18 7 ($3,027,450 ) $215,55 9 $3,243,00 ? : $1,781.0 6 $198.6 2

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I n conclusion , Gulfstrea m believe s tha t thi s proposa l wil l provid e thi s Michiga n communit y wit h superio r ai rservic e options

. W e fee l th e passenger s wil l benefi t fro m th e affiliatio n wit h Unite d Airline s an d th e excellen t service , pric e an d schedul e option s thi s relationshi p affords

. Additionall y th e integrit y o f servic e tha t ha s bee n a hallmar k

o f th e Gulfstrea m operatio n wil l allo w thi s communit y a trave l optio n tha t i s bot h dependabl e an d timely

. Respectfull y Submitted : Octobe r14 , 201 1

Micke y Bowma n Vic e Presiden t o f Essentia l Ai rServic e Gulfstrea m Internationa l Airline s