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Sovereign Air, Inc. 

August 31, 2011 

Dennis J. DeVany, Chief 

EAS & Domestic Analysis Division, X-53 

Office of Aviation Analysis 

Department of Transportation 

1200 New Jersey Ave. SE 

Washington, DC 20590 

Re: Proposal to Provide Essential Air Service at: 

HANCOCK/HOUGHTON, MICHIGAN, DOCKET DOT-OST-2009-0302 

EAU CLAIR, WISCONSIN, DOCKET DOT-OST-2009-0306 

MUSKEGON, MICHIGAN, DOCKET DOT-OST-2009-0301 

PADUCAH, KENTUCKY, DOCKET DOT-OST-2009-0299 

Dear Mr. DeVany: 

In response to Order 2011-8-10, Sovereign Air, Inc. offers the following proposal: 

-! \ ·:: 02 

Sovereign Air, Inc. (SAl) is planning to use a one 30-seat Dornier 328 Jet aircraft (3 total) for non-stop 

service to Chicago (ORO) on each route from HANCOCK/HOUGHTON, MICHGAN, EAU CLAIRE ( 2 

Proposals one from St Cloud to EAU Claire ) WISCONSIN, MUSKEGON, MICHIGAN AND PADUCAH, 

KENTUCKY. One 19- seat Jetstream 31/32 for non-stop service to Chicago (ORO) from MUSKEGON, 

MICHIGAN. 

Our flights will service the EAS cities and the ORO Hub. Sovereign Air believes that with excellent 

baggage handling, proper schedules, inexpensive pricing, a comfortable-quiet- pressurized aircraft, and 

a recovering economy, the load factors will increase in these markets. SAl will base its aircraft, crews 

and maintenance personnel, banking and purchase fuel for the each aircraft in that city. Sovereign AIR 

Air will keep most of the EAS monies in the local communities. Additional flights will be added as 

needed to accommodate periods of increased demands. 

SAl will have baggage and ticket agreements with the major air carriers in ORO by the start of this EAS 

service. SAl will also have cargo agreements for both domestic and international air freight movements. 

SAl has been HAZMAT approved and will be working in conjunction with hospitals to expedite various 

HAZMAT materials that they need to transport. 

SAl's goal is to work hand-in-hand with the communities to reduce the need for EAS subsidies within the 

next four to six years. 

Sovereign Air is currently in the process of acquiring its Scheduled Service Authority and anticipates 

being able to start this Essential Air Service by Dec 15, 2011. 

Sovereign Air will be fully integrated into the Global Distribution System (GDS) in conjunction with 

Worldspan. SAl is not tied to just one airline, allowing Sovereign Air better visibility in the various 
reservation systems. Passengers will have a broad range of channels through which to purchase tickets, 

including all airline reservation systems and travel agencies, Orbitz, Priceline, Expedia, ect:. Customers 

will be able to call our reservation office or visit our website to book flights. Passengers can also 

purchase tickets and make reservations at our ticket counters. 

SAl's final schedules will be developed by the City Airport Boards and SAl to reduce layover times in ORD 

and provide the best possible arrival and departure times for the travelling public. As such, the 

following schedules will likely be adjusted: 

HancockLHoughton Schedule 

Fit# Freq From TO Dpt-Arr 

10 1234567 CMX ORD 6:30am-7:30am 

11 1234567 ORD CMX 8:30am-9:30am 

20 23456 CMX ORD 10:30am11:30am 

21 23456 ORD CMX 12:30pm-1:30pm 

30 1234567 CMX ORD 5:30pm-6:30pm 

31 1234567 ORD CMX 8:00pm-9:10pm 

Muskegon Schedule 

Fit# Freq From TO Dpt-Arr 

101 1234567 MKG ORD 6:30am-7:00am 

111 1234567 ORD MKG 8 :30a m-9 :OOa m 

201 23456 MKG ORD 10:30aml1:00am 

211 23456 ORD MKG 12:30pm-1:00pm 

301 1234567 MKG ORD 5:30pm-6:00pm 

311 1234567 ORD MKG 8:30pm-9:00pm 

Paducah Schedule 

Fit# Freq From TO Dpt-Arr 

102 1234567 PAH ORD 6:40am-7:40am 

112 1234567 ORD PAH 8:40am-9:40am 

202 23456 PAH ORD 10:40am11:40am 

212 23456 ORD PAH 12:40pm-1:40pm 

302 1234567 PAH ORD 6:40pm-7:40pm 

312 1234567 ORD PAH 8:40pm-9:40pm 

Eau Claire Schedule #1 

Fit# Freq From TO Dpt-Arr 

802 1234567 EAU ORD 6:20am-7:10am 

812 1234567 ORD EAU 8:20am-9:10am 

902 23456 EAU ORD 10:20am11:10am 

912 23456 ORD EAU 12:20pm-1:10pm 

702 1234567 EAU ORD 6:20pm-7:10pm 

712 1234567 ORD EAU 8:20pm-9:10pm 
St Cloud , Eau Claire, Chicago Schedule #2 

Fit# Freq Depart Arrive Depart Arrive 

502 1234567 STC 6:30am EAU 6:50am-7:00am ORO 8:00am 

503 1234567 ORO 9:00am EAU9:50am-10:00am STC 10:20am 

504 23456 STC 11:30am EAU 11:50am-12:pm OR0 1:00pm 

505 23456 OR 02:00pm EAU2:50pm-3:00pm STC3:20pm 

506 1234567 STC6:30pm EAU6:50pm-7:00pm ORD8:00pm 

507 1234567 ORD9:00pm EAU9:50PM-10:00PM STC10:20pm 

Sovereign Air complies with the Global Warming Pollution Reduction requirements for 2012 and year 

2020. 

Note: Sovereign Air will EAS for what it was intended for to develop your air service so the you do not 

need EAS. 
30-Seat Dornier 328 Jet 

Sovereign Air, Inc. 

Annual Compensation Requirement for Essential Air Service for Hancock/Houghton 

Aircraft Type 

Available Seats Per Departure 

Passengers Per Trip 

Block Hours 

Departures 

Total Passengers 

Average Fare 

Revenue Passenger Miles 

Available Seat Miles 

Passenger Revenue 

Other Rev. @ .6 of pax. Rev. % 

Total Revenue 

Aircraft and Hull Insurance 

Fuel and Oil 

Flying Operations 

Other Direct Costs 

Maintenance 

Total Direct Costs 

Total Indirect Costs 

Total Operating Expenses 

Operating Loss 

Profit@ 5% 

Completion Rate 

Load Factor 

19 Round trips Per Week 

$155 one way 

Annual Compensation 

Requirement 

30-seats 

30 

22.8 

1,916 

1,916 

43,710 

18,046,735 

23,739,240 

$6,775,050 

$40,650 

$6,815,700 

$220,000 

$2,038,624 

$1,116,939 

$572,245 

$1,272,517 

$5,220,325 

$2,529,166 

$7,749,491 

$933,791 

$387,475 

$1,321,266 

97% 

68% 
30-Seat Dornier 328 Jet 

Sovereign Air, Inc. 

Annual Compensation Requirement for Essential Air Service for Paducah 

Aircraft Type 

Available Seats Per Departure 

Passengers Per Trip 

Block Hours 

Departures 

Total Passengers 

Average Fare 

Revenue Passenger Miles 

Available Seat Miles 

Passenger Revenue 

Other Rev. @ .6 of pax. Rev. % 

Total Revenue 

Aircraft and Hull Insurance 

Fuel and Oil 

Flying Operations 

Other Direct Costs 

Maintenance 

Total Direct Costs 

Total Indirect Costs 

Total Operating Expenses 

Operating Loss 

Profit@ 5% 

Completion Rate 

Load Factor 

19 Round trips Per Week 

$165 one way 

Annual Compensation 

Requirement 

30-seats 

30 

19.5 

1,916 

1,916 

37,347 

14,688,575 

22,589,640 

$6,162,255 

$308,113 

$6,470,368 

$220,000 

$2,038,624 

$1,116,939 

$572,245 

$1,272,517 

$5,220,325 

$1,729,166 

$6,949,491 

$479,123 

$347,475 

$826,598 

97% 

65% 
1 30-Seat Dornier 328 Jet 

Sovereign Air, Inc. 

Annual Compensation Requirement for Essential Air Service for Eau Claire Proposal #1 

Aircraft Type 

Available Seats Per Departure 

Passengers Per Trip 

Block Hours 

Departures 

Total Passengers 

Average Fare 

Revenue Passenger Miles 

Available Seat Miles 

Passenger Revenue 

Other Rev. @ .6 of pax. Rev. % 

Total Revenue 

Aircraft and Hull Insurance 

Fuel and Oil 

Flying Operations 

Other Direct Costs 

Maintenance 

Total Direct Costs 

Total Indirect Costs 

Total Operating Expenses 

Operating Loss 

Profit@ 5% 

Completion Rate 

Load Factor 

19 Round trips Per Week 

$155 one way 

Annual Compensation 

Requirement 

30-seats 

30 

18.8 

1,916 

1,916 

35,998 

9,657,464 

15,404,640 

$5,579,690 

$334,781 

$5,914,714 

$220,000 

$2,038,624 

$1,116,939 

$572,245 

$1,272,517 

$5,220,325 

$1,929,166 

$7,149,491 

$1,234,777 

$357,475 

$1,592.252 

97% 

63% 
30-Seat Dornier 328 Jet 

Sovereign Air, Inc. 

Annual Compensation Requirement for Essential Air Service Proposal #2 EAU CLAIRE 

(EAU) to CHICAGO (ORO) starting at ST CLOUD (STC) 

Aircraft Type 

Available Seats Per Departure 

Passengers Per Trip 

Block Hours 

Departures 

Total Passengers 

Average Fare 

Revenue Passenger Miles 

Available Seat Miles 

Passenger Revenue 

Other Rev. @ .6 of pax. Rev.% 

Total Revenue 

Aircraft and Hull Insurance 

Fuel and Oil 

Flying Operations 

Other Direct Costs 

Maintenance 

Total Direct Costs 

Total Indirect Costs 

Total Operating Expenses 

Operating Loss 

Profit@ 5% 

Completion Rate 

Load Factor 

19 Round trips Per Week 

$155 one way Avg. 

Annual Compensation 

Requirement 

30-seats 

30 

26 

1,916 

1,916 

50,998 

20,450,198 

23,739,240 

$7,904,690 

$474,281 

$8,378,714 

$220,000 

$2,338,624 

$1,216,939 

$1,972,245 

$1,272,517 

$7,020,325 

$2,129,166 

$9,149,491 

$770,777 

$457,475 

$1,228,252 

97% 

86% 
19-Seat Jetstream 31/32 

Sovereign Air, Inc. 

Annual Compensation Requirement for Essential Air Service for Muskegon 

MKG-ORD 

Aircraft Type 

Available Seats Per Departure 

Passengers Per Trip 

Block Hours 

Departures 

Total Passengers 

Average Fare 

Revenue Passenger Miles 

Available Seat Miles 

Passenger Revenue 

Other Rev. @ .6 of pax. Rev. % 

Total Revenue 

Aircraft and Hull Insurance 

Fuel and Oil 

Flying Operations 

Other Direct Costs 

Maintenance 

Total Direct Costs 

Total Indirect Costs 

Total Operating Expenses 

Operating Loss 

Profit@ 5% 

Completion Rate 

Load Factor 

$90 one way 

Annual Compensation 

Requirement 

19-seat 

19 

Avg 12.2 

958 

1,916 

23,347 

2,754,946 

4,295,672 

$2,101,230 

$126,074 

$2,227,304 

$102,000 

$312,853 

$310,000 

$178,221 

$222,212 

$1,125,286 

$1,602,018 

$2,727,304 

$500,000 

$136,365 

$636,365 

97% 

64% 
Customer safety and service are Priority One with SAl. Sovereign Air looks forward to providing 

Essential Air Service to Hancock/Houghton, Eau Clair, Muskegon and Paducah. 

Sincerely, 

Robert B. Karns, GM 

Sovereign Air, Inc.