130 Iolana Place, Honolulu, Hawaii 96819

July 11, 2014

Dear Sir/Madam:

Please find enclosed our proposal to provide Essential Air Services to the community of Visalia, California, under

Order 2014

‐ 5

‐ 9. Schuman Aviation Company, Ltd. Dba Wine Country Express proposes serving the community of

Visalia with twenty six weekly flights between Visalia and Los Angeles utilizing a nine passenger Cessna Grand

Caravan aircraft. A second option offers Cessna Caravan service in years one and two and B1900 service in years

three and four. With daily departures to and from Los Angeles, the residents of Visalia can connect to other flights

in Los Angeles or arrive and depart at convenient times if Los Angeles is their end destination. We are proposing a

four year service plan, thus providing the community with much needed continuity and reliability.

Schuman Aircraft Company Ltd. Dba Wine Country Express will provide the same dedication to serving the Visalia

community as we have provided to our essential air service routes in Hawaii. The residents of Molokai are

extremely pleased with the service and reliability that they receive from Schuman Aviation Ltd. Wine Country

Express is based in California and is responsive to the needs of California residents.

Sincerely, 

### Richard Schuman

Richard Schuman

President

808

‐ 834

‐ 5813

richard@makanikai.com

Toll Free: (877) 255-8532 ~ Local Number: (808) 834-1111 ~ Fax: (808) 837-7867 ~ email:

info@makanikaiair.com1

Wine Country Express EAS Proposal 

## SCHUMAN AVIATION CO.,LTD. DBA WINE COUNTRY EXPRESS

PROPOSAL TO PROVIDE ESSENTIAL AIR SERVICES

VISALIA, CALIFORNIA

Dated: July 11, 2014

Order: 2014

‐ 5

‐ 9

Served: May 21, 2014

Docket: DOT

‐ OST

‐ 2004

‐ 199162

Wine Country Express EAS Proposal 

### Schuman Aviation Co., Ltd. DBA Wine Country Express Proposal to Provide Essential Air

Services to Visalia, California

Summary:

This proposal for essential air services to the community of Visalia, California is submitted by Schuman

Aviation, LTD. DBA Wine Country Express. The proposal is submitted under the United States of

America, Department of Transportation, Office of the Secretary, Washington, DC request for proposal,

under order 2014

‐ 5

‐ 9, dated May 21, 2014.

Background:

Schuman Aviation Ltd., based in Honolulu, Hawaii, was founded in 1996 by Richard Schuman. The

Schuman family is well known in Honolulu with roots that are traced back to 1893 when Gustav

Schuman founded one of the first automobile dealerships in Hawaii. The company’s mission is to

provide impeccable customer service at an affordable fare. Schuman is also the founder of Makani Kai

Helicopters, which, since 1988, provided more than 14,000 aerial tours without incident. Makani Kai has

received many awards and accolades, including:

.FAA’s Diamond Award for maintenance excellence.

.First aircraft operator in the US to receive the coveted IS

‐ BAO safety certification.

.Awarded annual contract to provide helicopters and pilots for “Hawaii Five 0.

Schuman Aviation is an FAA certified Part 135 scheduled commuter operation awarded by the

Department of Transportation in 2010. Another Schuman holding, Hawaii Aviation Services is an FAA

Part 141 repair station.

Wine Country Express is a newly founded commuter airline based in California. The principals of Wine

Country Express number more than 60 collective years in the aviation sector. The principals of the

company have extensive experience in distribution, airline specific accounting, aircraft maintenance and

flight operations. The company was founded to provide scheduled services to the small communities in

California who require service that the major airlines are no longer providing.3

Wine Country Express EAS Proposal Previous EAS experience:

Schuman Aviation Ltd, was recently awarded the Essential Air Service subsidy for Molokai, Hawaii. This

is the second EAS award made to Schuman. The renewed contract has been widely acclaimed by the

citizens of Molokai. Please refer to the tesitmonials included in this document.

Equipment:

Schuman Aviation Ltd. Dba Wine Country Express proposes to serve the community of Visalia with the

Cessna 208B Grand Caravan. The Grand Caravan is an extremely reliable nine passenger aircraft which is

in wide use throughout the world. The Caravan is currently in production and is one of the largest and

safest aircraft of its size and range. Cessna is internationally recognized as one of the best known and

most reliable aircraft manufacturer’s in the world.

The Grand Caravan is configured with nine, very comfortable seats. The cabin is air conditioned and

heated assuring passenger comfort. Each aircraft is equipped with auto

‐ pilot and sophisticated weather

radar. Pratt Whitney is the supplier of the engine fitted on the Grand Caravan. A large cargo pod

accommodates onboard luggage storage.

Option one provides four years of service to and from Visalia utilizing a Cessna Grand Caravan aircraft

operating 26 flights weekly. Option two provides two years of service to the community utilizing the

Cessna Grand Caravan for a two year period followed by two years of operation aboard a nineteen

passenger Beech 1900 aircraft. The assumption is that the demand for larger aircraft is inherent in the

community but that the cancellations and erratic schedule of the last few years have resulted in a lower

demand.

The Beech 1900 is a pressurized aircraft equipped with PT6A

‐ 65 turbo prop engines. It is manufactured

by Raytheon and is considered one of the most efficient and reliable aircraft in operation.

Both aircraft are operated with a two man crew.

Flight Schedule:

Our proposed flight schedule is based on feedback from Visalia residents and city officials. The goal is to

provide service that offers good connections with other airline carriers, accommodating the onward

travel needs of the passenger.

We are proposing a schedule that includes 26 flights weekly between Visalia and Los Angeles. Please

refer to the following proposed schedule. The proposed schedule is also intended to serve the needs of4

Wine Country Express EAS Proposal the business traveler assuring a full day for meetings with a convenient return flight at the end of the

day.



## Proposed Schedule for Visalia

This proposed schedule is informational in nature, actual flight times may vary depending on the operational

requirements of the airline and convenience of the people of Visalia.

Visalia to Los Angeles Option 1 four years

Depart Arrive Frequency

6:30 a.m. 7:30 a.m. Ex Sunday

12:15 p.m. 1:15 p.m. Daily

Los Angeles to Visalia

Depart Arrive Frequency

9:30 a.m. 10:30 a.m. Ex Sunday

4:00 p.m. 5:00 p.m. Daily

Visalia to Los Angeles Option 2 two years with 9 pax

aircraft/two years with 9 pax aircraft, two years with

19 pax aircraft

Depart Arrive Frequency

7:00 a.m. 7:38 a.m. Daily

Los Angeles to Visalia

Depart Arrive Frequency

5:00 p.m. 5:38 p.m. Daily

Counter Services:

Service at the Visalia counter will be staffed by professional, well trained customer service agents who

will assist the passenger with boarding and stowing their luggage. This staff is also available at clearly5

Wine Country Express EAS Proposal marked hours to assist with future reservations, if needed. The counters will be marked with company

logos and maintained in good order.

Reservations:

Schuman Aviation LTD dba Wine Country Express, utilizes a modern easy to use computerized

reservations system that provides access to hotels, cruises and car rentals. Wine Country Express flights

are listed on most online travel agencies like Orbitz, Priceine, Expedia, etc.

Wine Country Express also provides a sophisticated, easy to use booking engine on it’s website.

Alternatively, reservations can be made by telephone with our knowledgeable customer service agents.

Interline Agreements:

Wine Country Express offers interline capabilities through our association with a well

‐ known major

airline. These arrangements facilitate the easy transfer of passengers and their bags to interline

partners.

Passenger Fares:

Wine Country is dedicated to providing efficient, on time flights to the residents of Visalia. Our fares

reflect this goal. Please refer to the enclosed proposed fare table.



## Proposed Fares for Visalia

Fares are based on one way purchase. The fares may not include all applicable taxes.

Fare Type Visalia to Los Angeles Los Angeles to Visalia

Unrestricted fare

‐ fully refundable 175.00 181.00

Low fare

– 7 day advance 155.00 161.00

Low fare

– 14 day advance

purchase 140.00 146.00

Benefit to the community of Visalia:

Residents of Visalia are looking for a reliable airline that will provide the much needed service for both

business and pleasure travel. Based on our conversations with members of the community, the

statistics for air travel in the community do not reflect their true need for air travel. Due to changes in

pilot requirements, many of the flights originally scheduled for this community were cancelled. Wine6

Wine Country Express EAS Proposal Country Express is planning a 99% reliability factor for this community. The corporate office for Wine

Country Express is based in California.

If awarded the EAS contract for Visalia, the airlines is planning an aggressive marketing campaign which

includes using social media, television and radio ads, and participation in civic and community events

promoting the air service and participating in the community we serve.

Subsidy Requirements :

Schuman Aviation Ltd. Is offering two possible options to Visalia residents. Both options are based on a

four year subsidy plan which guarantees continuity to the community. The first option includes more

frequencies on a 9 passenger aircraft for a four year period. The second option includes a 19 pasenger,

pressurized aircraft in year three and four.

Option One

Year one ‐ $1,221,279

Year two

‐ $1,257,767

Year three

‐ $1,342,206

Year four

‐ $1,407,142

Option Two

Year one ‐ $1,236,638

Year two

‐ $1,320,757

Year three

‐ $ 994,380

Year four

‐ $1,066,8127

Wine Country Express EAS Proposal Customer Testimonials:

From: Matthew Brittain [ mailto:hiloprosocial@hotmail.com ]

Sent: Saturday, November 16, 2013 4:10 PM

To: scott.faulk@dot.gov

Subject: Makani kai airlines-Molokai



### Dear Mr. Faulk:

I am writing to you to as a frequent traveler to Kalaupapa on Makanikai airlines. I go there a lot

to visit with my wife, Lesly Mae Brittain, who is a RN at the settlement in Kalaupapa. Also, of

course, my wife travels on Makani Kai a lot, too. As such, I am also speaking for her as well.

We are very happy with Makani Kai airline. They are friendly, accom modating, and know and

recognize the special needs of the Kalaupapa commun ity. They are almost like part of the family.

We especially like that they are flexible in terms of scheduling, and allow us to bring extra

luggage in, since there are no majo r stores there. We must bring in most of our consumer goods

that we can't bring in on the once-yearly barge, so their lenience on the lu ggage is a huge benefit

for us.

I hope that Makani Kai retains the contract to service Kalaupapa, it is really nice to have them.

Sincerely,

Matthew Brittain, LCSW8

Wine Country Express EAS Proposal From: Rita [ mailto:cnrward@aol.com ]

Sent: Sunday, November 24, 2013 8:52 AM

To: eas@dot.gov ; damientours@aol.com ; richard@makanikai.com ; muleman@sandwichisles.net ; boland@lava.net

Subject: Kalaupapa 

### Aloha,

First of all, my name is Rita Lutu Ward a da ughter of a Kalaupapa Patient here on Kalaupapa.

I was told this email to let my mana'o regarding Makani Kai.

But first, allow me this time to explain abit more of what it took to finally get Makani

Kai into Kalaupapa. With all the other past air line, they have done the job as far as taking

care of the Kalaupapa Patients traveling needs, and so forth. Aloha Air, Alii, Brandt airlines and

to mention abit more.

We have been under Pacific Wings for over 5 year s I think. It was the worst time for Kalaupapa.

If you'd talk to the patients & workers in Ka laupapa there was a mode of depression while

Pacific

Wings was here. Their ridiculous prices wa s charged over $500.00 for round trips and same

from Kalaupapa just to Moloka'i (topside). Many of us could not afford this price and felt as if

we were all held at gun point or as hostages.

Long story short - 

### Senator Daniel Inouye, fought for Kalaupa and heard our cries for help

on this situation. Then alas, Pacific Wings left a nd then others tried to get into kalaupapa and

with so

many promises but no commitment on their ends. It was only Makani Kai who stepped up

and offered their services to Kalaupapa. We ar e so very happy with th is decision, and could

not ask for anything more. Richard Shuman(Mak ani Kai) have gone & beyond his duties to

help Kalaupapa. He and his sta ff are wonderful to us, like "Ohana " (family). And I thank them

every trip to Honolulu or back to Kalaupapa.

Just find the time to talk to either workers (state & federal) and "Our Kalaupapa Patients" they

all agree to want Makani Kai to stay. I stand with Makani Kai and do not want another airline

coming in to Kalaupapa. This is my sincere "Mana'o" (Thoughts). If you have any questions

please

don't hesitate to let me know.

Rita Lutu Ward

Daughter of Richard & Gloria Marks (Patients Of KalaupapaVisalia to Visalia to Visalia to VisaliaLos Angeles Los Angeles Los Angeles Los AngelesYear 1 Year 2 Year 3 Year 4OptionOneWeekly Frequencies26 26 26 26Completion Factor99% 99% 99% 99%Annual Departures1326 1326 1326 1326Block Time (in minutes)0.55 0.55 0.55 0.55Annual Block Hours1248 1248 1248 1248Stage length (statute miles)168 168 168 168Available Seat Miles (9 seats)2004912 2004912 2004912 2004912Load Factor35% 38% 41% 44%Passengers 4200 4500 4900 5200Revenue Passenger Miles705600 756000 823200 873600Average Fare$75.00 $75.00 $75.00 $75.00$75.00 $75.00 $75.00 $75.00Revenue:Passenger $315,000.00 $337,500.00 $367,500.00 $390,000.00Ancillaries $3.00 $12,600.00 $13,500.00 $14,700.00 $15,600.00$327,600.00$351,000.00$382,200.00$405,600.00AssumptionsFuel Cost P/Gal $4.26Fuel Burn Gallons P/Hr 55.00Direct Expenses:Ownership $187.00 Per Blk Hr $233,376.00 $233,376.00 $233,376.00 $233,376.00Flight Crew $143.00 Per Blk Hr $178,464.00 $187,387.20 $206,125.92 $216,432.22Aircraft Lease $180,000.00 $180,000.00 $180,000.00 $180,000.00Fuel & Into Plane Fees $234.30 Per Blk Hr $292,406.40 $336,267.36 $369,894.10 $406,883.51Insurance $67.00 Per Blk Hr $83,616.00 $83,616.00 $91,977.60 $96,576.48Maintenance $160.00 Per Blk Hr $199,680.00 $209,664.00 $230,630.40 $242,161.92Miscellaneous/Reaccom $22.00 Per Blk Hr $27,456.00 $27,456.00 $30,201.60 $31,711.68Total Direct Expenses $1,194,998.40 $1,257,766.56 $1,342,205.62 $1,407,141.80Indirect Expenses:Landing Fees $18.00 per dept $23,868.00 $23,868.00 $26,254.80 $26,254.80Passenger Services $60.00 Per pax $96,627.50 $101,458.88 $111,604.76 $122,765.24Marketing $15.45 per Pax $64,890.00 $69,525.00 $76,477.50 $76,477.50General & Admin/Other 9.1% of Direct $108,744.85 $120,179.59 $132,197.55 $145,417.31Total Indirect Expenses $294,130.35 $315,031.47 $346,534.62 $370,914.85$1,489,128.75 $1,572,798.03 $1,688,740.23 $1,778,056.65Income (loss)($1,161,528.75) ($1,221,798.03) ($1,306,540.23) ($1,372,456.65)Profitelement$59,749.92 $62,888.33 $67,110.28 $70,357.09Subsidyrequirement$1,221,278.67 $1,284,686.36 $1,373,650.51 $1,442,813.74Subsidyperpassenger$290.78 $285.49 $280.34 $277.46Subsidyperdeparture$921.02 $968.84 $1,035.94 $1,088.09per passengerTotal RevenueTotal Operating ExpensesVisaliaVisalia to Visalia to Visalia to Visalia

Los Angeles Los Angeles Los Angeles Los Angeles

Year 1 Year 2 Year 3 Year 4

Option Two

Weekly Frequencies 26 26 14 14

Completion Factor 99% 99% 99% 99%

Annual Departures 1326 1326 728 728

Block Time (in minutes) 0.55 0.55 0.38 0.38

Annual Block Hours 1248 1248 532 532

Stage length (statute miles) 168 168 168 168

Available Seat Miles (9 seats) 2004912 2004912 1100736 1100736

Load Factor 35% 38% 60% 62%

Passengers 4200 4500 8299 8576

Revenue Passenger Miles 705600 756000 1394232 1440768

Average Fare $75.00 $75.00 $75.00 $75.00

$75.00 $75.00 $75.00 $75.00

Revenue:

Passenger $315,000.00 $337,500.00 $622,425.00 $643,200.00

Ancillaries $3.00 $12,600.00 $13,500.00 $24,897.00 $25,728.00

$327,600.00 $351,000.00 $647,322.00 $668,928.00

Assumptions

Fuel Cost P/Gal $4.26

Fuel Burn Gallons P/Hr 55.00

Direct Expenses:

Ownership $187.00 Per Blk Hr $233,376.00 $233,376.00 $99,484.00 $99,484.00

Flight Crew $198.00 Per Blk Hr $247,104.00 $259,459.20 $285,405.12 $299,675.38

Aircraft Lease $180,000.00 $180,000.00 $180,000.00 $180,000.00

Fuel & Into Plane Fees $234.30 Per Blk Hr $292,406.40 $336,267.36 $369,894.10 $406,883.51

Insurance $67.00 Per Blk Hr $83,616.00 $83,616.00 $91,977.60 $96,576.48

Maintenance $160.00 Per Blk Hr $199,680.00 $209,664.00 $230,630.40 $242,161.92

Miscellaneous/Reaccom $22.00 Per Blk Hr $27,456.00 $27,456.00 $30,201.60 $31,711.68

Total Direct Expenses $1,263,638.40 $1,329,838.56 $1,287,592.82 $1,356,492.96

Indirect Expenses:

Landing Fees $18.00 per dept $23,868.00 $23,868.00 $26,254.80 $26,254.80

Passenger Services $60.00 Per pax $96,627.50 $101,458.88 $111,604.76 $122,765.24

Marketing $15.45 per Pax $64,890.00 $69,525.00 $76,477.50 $76,477.50

General & Admin/Other 9.1% of Direct $114,991.09 $127,066.07 $139,772.68 $153,749.95

Total Indirect Expenses $300,376.59 $321,917.95 $354,109.74 $379,247.49

$1,564,014.99 $1,651,756.51 $1,641,702.56 $1,735,740.45

Income (loss) ($1,236,414.99) ($1,300,756.51) ($994,380.56) ($1,066,812.45)

Profit element $63,181.92 $66,491.93 $64,379.64 $67,824.65

Subsidy requirement $1,299,596.91 $1,367,248.44 $1,058,760.20 $1,134,637.10

Subsidy per passenger $309.43 $303.83 $127.58 $132.30

Subsidy per departure $980.09 $1,031.11 $1,454.34 $1,558.57 per passenger

Total Revenue

Total Operating Expenses 

### Visalia