### Julyl9,2012

Dennis 

### J. DeVany Office of Aviation Analysis US Department of Transportation 400 Seventh Street, S.W. Washington, D.C. 20590 

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SkyWest Airlines' Essential Air Service Proposal tor Brainerd and International Falls, Minnesota

Dear Mr. DeVany: Attached is SkyWest Airlines' proposal tor service at Brainerd and International Falls, Minnesota

. Our proposal is to provide service from Brainerd and International Falls to Minneapolis-St. Paul International Airport (MSP). Service to these two communities is offered as a package deal and cannot be awarded individually. SkyWest welcomes the opportunity to serve the Brainerd and International Falls communities. Our combination of safe and reliable aircraft, well-timed schedules, and access to one of the world ' s largest airline networks provides passengers quality air service and will help drive economic growth in the region. 

### Delta Air Lines' Network One of the most beneficial aspects ofSkyWest ' s proposal is that it provides Brainerd and International Falls passengers with continued access to Delta Air Lines' global network. Delta is a founding member of the SkyTeam alliance, providing seamless connections aboard 5 ,400 daily tlights and unparalleled access to nearly all parts of the globe. 

### Frequency and Schedule As directed by the DOT, we will offer a minimum of 12 round-trip tlights per week with daily service to MSP. All tlights have been timed to ensure they offer passengers valuable tlight schedules that arrive and depart on bank. This means that they have been o ptimized for maximum connection opportunities in MSP, making the service convenient tor business and leisure travelers. With approximately 400 daily departures from MSP, Delta operates more service than any other airline and offers great connections to destinations around the globe.' ; 

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Superior Aircraft Service will be provided using the Canadair Regional Jet 200 (CRJ200) 50-seat turbojet aircraft. SkyWest was recently named the most 'reliable CRJ200 operator in North America and is one of the largest domestic operators of this reliable, comfortable aircraft type. All SkyWest CRJ200 aircraft are serviced by one of our highly-trained flight attendants and are equipped with a lavatory to ensure the comfort and convenience of our passengers. Additional details and specifications can be found in the CRJ fact sheet attached to this document. 

### Summary SkyWest believes this proposal provides the best overall option for air service in the Brainerd and International Falls communities. Given the connectivity at MSP, the welltimed schedule, and reliable equipment, we expect to see continued growth in the number of passengers utilizing the service. We will also work with community and our airport partners to market the service. SkyWest is excited about the possible opportunity to provide reliable air service to Brainerd and International Falls, Minnesota. Thank you for your consideration

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Sincerely,

Michael Thompson Vice President- Market Development SkyWest AirlinesSkyWest Airlines Essential Air Service Bid 7/20/2012 INL INL INL BRD BRD MSP MSP TOTALS Number of round-trips per week 12 12 24 Aircraft type CRJ200 CRJ200 CRJ200 CRJ200 CRJ200 Passenger Revenue Passengers 30,000 28,000 58,000 Average fare 95.00 $ 70.00 Revenue 2,850,000 $ 1,960,000 4,810,000 Block Time Trip block time (minutes) 50 65 47 Total scheduled block time 433 789 1,222 978 Total completed block time 98% 425 773 1,198 958 3,353 RPMS Passengers 15,000 15,000 30,000 28,000 Stage length**-~~.,;** '- 154 254 114 2,310,000 3,810,000 6,120,000 5,502,000 17,742,000 ASMs Scheduled departures 520 728 1,248 1,248 Competed departures 98% 510 713 1,223 1,223 Stage length 154 254 114 Available Seats 50 50 50 4,004,000 9,245,600 13,249,600 7,113,600 33,612,800

Revenue 2,850,000 $ 1,960,000 CRJ Direct operating expenses Blk Hr $ 2,301.81 $ 977,502 $ 1,779,054 $ 2,756,556 $ 2,205,244 RPM related RPMs $ 0.00341 $ 7,877 $ 12,992 $ 20,869 $ 18,762 Departure related Departures $ 710.13 $ 361,882 $ 506,635 $ 868,517· $ 868,517 ASM related ASMs $ 0.00932 $ 37,317 $ 86,169 $ 123,486 $ 66,299 Total expenses $ 1,384,579 $ 2,384,850 $ 3,769,428 $ 3,158,822 10,697,679 Operating income (loss) $ (919,428) (1,198,822) $ (2,118,251)
5% profit margin 188,471 157,941 $ 346,413 Annual subsidy requirement 1,107,900 $ 1,356,764 2,464,663
SkyWest effective rates per unit Cost pertnp 2,717 $ 3,343 $ 3,082 $ 2,583 Cost per passenger 92 

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### s 113 SkyWest cost per block hour 3,260 $ 3,086 $ 3,148 $ 3,297 Effective Subsidy rate per unit Subsidy per trip 906 

### s 1,109 Subsidy per passenger 37 $ 48

Load factor 58% 41% 46% 77%

## SkyWest Airlines July 2012 SkyWest Airlines celebrates 40 years of flight in 2012. As 

## a leading air service provider offering global access to millions ofpeople each month, SkyWest partners with the world's largest network carriers including United Airlines, Delta Air Lines, US Airways and Alaska Airlines. With 

## a fleet of 314 aircraft, SkyWest's more than 11 , 000 aviation professionals operate more than 1, 800 flights each day to 162 destinations throughout North America. SkyWest is known for its industry-leading workforce, exceptional leadership team , and continued solid operational and economic performance. The airline is headquartered in St. George, Utah

. Hubs

Crew domiciles

Maintenance bases
Line stations

Cities currently served

. Stations operated Employees
Average number of daily scheduled departures
Passengers Carried in 2011 Total revenue passenger miles flown in 2011 Total aircraft in operating fleet Embraer aircraft: Bombardier aircraft: Chicago O'Hare, Denver, Los Angeles, Minneapolis/St. Paul, Phoenix, Portland, Salt Lake City and San Francisco

.. Chicago, Colorado Springs, Denver, Fresno, Houston, Los Angeles, Minneapolis/St. Paul, Palm Springs, Phoenix, Portland, Salt Lake City, San Francisco, San Luis Obispo, Seattle and Tucson Chicago, Colorado Springs, Fresno, Milwaukee, Nashville, Palm Springs, Salt Lake City and Tucson Denver, Houston, Los Angeles, Minneapolis/St. Paul, Phoenix, Portland, San Francisco and Seattle Total: 162 (39 States, Washington D.C., 5 Canadian Provinces and 4 cities in Mexico) United: 130 Delta: 109 US Airways: 22 Alaska: 7 Shared: 90 SkyWest: 68 11,160 total 9,227 FTEs United: 1,155 Delta: 592 US Airways: 99 Alaska: 26 Total: 1,872 DEN: 168 IAH: 56 LAX: 144 ORO: 87 POX: 30 PHX: 62 SFO: 158 MSP: 84 SLC: 

### 172 24.5 million passengers
13.6 billion revenue passenger miles*
*A Revenue Passenger Mile is equal to one fare-paying passenger flown one mile

. 314 (All numbers include deliveries and retirements this calendar month)
42 Embraer 120 turboprops 159 CRJ200 aircraft 92 CRJ700 aircraft 21 CRJ900 aircraft ..

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Number Thrust Two General Electric CF34-381 turbofans 8 , 729 pounds thrust at takeoff
Length overall 87ft10in 26.77 m Wingspan 69ft ? i n 21

.21 m Height overall 20ft 5 i n 6

.22 m Cabin maximum width (ce nte rl in e ) 8ft 5 in 2

. 57 m Maximum cabin height 6ft 1 in 1

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Maximum operating altitude 41 , 000 ft 12,496 m
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6 Maximum takeoff weight (S erie s 2 00LR )

Operating weight empty Maximum fuel load Maximum payload

NM Maximum range 2 , 005

Mach Maximum cruise speed 0

. 81 Normal cruise speed 0.74



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# L Emergency Exit 53 , 000 lbs 30 , 500 lbs 14,305 lbs 13,500 lbs

SM 2 , 300

knots mph 464 534 424 488 24 , 041 kg 13 , 835 kg 6,489 kg 6,124 kg

KM 3,700

km/h 860 786