S(^o<^^S^/ ^^\^^^'^^ ^ 

BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

OEBARTMFNT OF 

.MANSPORTATIO N 

•.••'CKE J r iT OPFRATr.M OPERATION^ S 

n A q.- 35 

Essential Air Service at 

ALPENA, MICHIGA N 

Under 49 U.S.C. §41731 et seq. 

) 

) 

) 

) OST-2009-0300 

) 

GULFSTREAM INTERNATIONAL AIRLINES PROPOSAL 

TO PROVIDE SUBSIDIZED AIR SERICE AT ALPENA, MICHIGAN 

Correspondence with regard to this document should be addressed to: 

Mickey Bowman 

Vice President of Essential Air Service 

Gulfstream International Airlines 

1100 Lee Wagener Blvd, Suite 201 

Ft. Lauderdale, PL 33315 

Telephone: 270-689-2180 

Fax:270-689-2180 

E-Mail: mbowman@2ulfstreamair.com 

Gulfstream International Airlines C'Gulfstream'') cordially submits its proposal to provide subsidized air 

service to Alpena, Michigan. Gulfstream hereby offers one option for service. 

Gulfstream proposes to operate flights, under its United Express codeshare identity to the hub airport of 

Cleveland, Ohio. This bid is contineent upon United Airlines granting its permission for such an operation. 

Gulfstream believes that the strength of the United Airlines hub at Cleveland Hopkins International Airport 

will have a positive effect on ridership. Continental and United combined have roughly 200 departures 

from CLE to some 61 destinations. Other carriers boost the overall Cleveland activity to roughly 280 daily 

departures. Since establishing our CLE feeder operation in September of 2008, Gulfstream has achieved a 

98% controllable completion factor with an arrival : 14 rates of nearly 90%. We are pleased to offer a 

service option involving three roundtrips each service day to Cleveland to be operated on a non-stop basis. 

In compliance with Public Law 100-223, Gulfstream proposes to operate these flights using Beech 1900D 

turboprops that are pressurized and accommodate 19 passengers. The I900D features stand up headroom 

and a pressurized cabin that we feel is critical in recovering lost passengers with ample cargo capacity to 

accommodate even bulky military duffle bags. 

One of the hallmarks of the Gulfstream operation is our ability to provide safe and reliable transportation. 

Toward this end, Gulfstream has established a regional maintenance base in DuBois, Pennsylvania to 

support these flights. Additionally this proposal would benefit from a dedicated spare aircraft that was 

established with an earlier Cleveland based, EAS package. With this spare located in Cleveland, we have 

great flexibility in responding to any operational challenges and can assure this community receives the 

level of operational performance it deserves. 
Service Option 1 

36 Weekly frequencies between Alpena, Michigan and Cleveland, Ohio 

Gulfstream proposes to operate these flights under our United Express codeshare relationship with United 

Airlines. The liming of these flights would be optimized for connections to and from United flights at 

Cleveland. Gulfstream proposes to encourage connecting traffic by using a simplified "add on" fee 

structure whereby passengers connecting to or from UA flights would pay only an incremental S85 one 

way for the Gulfstream segment. This service constitutes three weekday roundtrips operating on a non-stop 

routing. Weekend service would consist of one round trip, non-stop flight on Saturday and two roundtrip, 

non-stop flights on Sunday. 

Service Option 1 

Gulfstream Airlines 

Sample Flight Schedule 

FROM 

STA 

TO 

STA 

DEP ARR 

TIME TIME 

FLT 

NUM 

EQUIP FREQ STOP 

CLEVELAND ALPENA 

CLEVELAND ALPENA 

CLEVELAND ALPENA 

0845 1015 

1520 1650 

2035 2205 

4071 

4073 

4075 

BEl 

BEl 

BEl 

X7-

X6 

X6 

ALPENA CLEVELAND 0625 0750 4070 BEl X7 0 

ALPENA CLEVELAND 1250 1415 4072 BEl X6 0 

ALPENA CLEVELAND 1705 1830 4074 BEl X6 0 

(Note: This Schedule is for illustrative purposes and may not reflect the final published product) 
GULFSTREAM INTERNATIONAL 

AIRLINES 

Essential Air Service Proposal 

Alpena, MI - Cleveland, OH 

Option I 

Alpena 

Hub Served Cleveland 

Number of Roundtrips per Service Day 3 

(3 non-stop round trips, 6 days per week) 

Operating Statistics 

Assumed Completion % 97.0% 

Annual Adjusted Block Hours 2,655.38 

Annual Adjusted Departures 1,820.83 

Annual Adjusted ASMs 9,237,089 

Annual RPMs 4,359,398 

Projected Load Factor 47.2% 

Revenue Projections 

Enplaned Passengers 16,327 

(Average as 

Mileage Operated) 

Average Fare 

Passenger Revenue 

Expense Projections 

Flight Operations 

Ownership 

Maintenance 

Reservations, Stations & Administration 

Fuel 

Marketing 

Total Annual Expenses 

Projected Profit / (Loss) 

Profit Element @ 5% 

! Annual Subsidy Required 

Subsidy per Departure 

Subsidy per Passenger 

267 

$ 78.63 

S 1,283,737 

$368,345 

$266,400 

$1,017,556 

$1,303,951 

$1,348,934 

$6,000 

$4,311,187 

($3,027,450) 

$215,559 

$3,243,00? : 

$1,781.06 

$198.62 
^ 

In conclusion, Gulfstream believes that this proposal will provide this Michigan community with superior 

air service options. We feel the passengers will benefit from the affiliation with United Airlines and the 

excellent service, price and schedule options this relationship affords. Additionally the integrity of service 

that has been a hallmark of the Gulfstream operation will allow this community a travel option that is both 

dependable and timely. 

Respectfully Submitted: October 14, 2011 

Mickey Bowman 

Vice President of Essential Air Service 

Gulfstream International Airlines