# Air Choice One Multi-Aero Inc. 

# d/b/a Air Choice One**~** 

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## Proposal to Provide Essential Air Service at Alpena, Michigan
Docket DOT -OST -2009-0300
February 14, 2012**-------~-----------------------------** to: Storz, CEO .4!r (}ne**~~frUnes** 12300 Old Tessnn 200 _Saint f\/10 63128 Phone: (866) 435-9847 F2x: 8527 E-n,ai:: ·If. 

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We understand the efforts of an air carrier dedicated to serving Alpena, Michigan is critical to maintaining scheduled airline service now and in the future. Air Choice One is that air carrier and we believe the strategy outlined in our proposal will support and complement airport development efforts. We have proven our strategy works with other EAS communities and we are committed to delivering these same results for Alpena. Our proposal will give the best access to the national transportation system for the community at reasonable prices and may be considered as an individual offering. Our proposal allocates substantial resources to support marketing efforts. Achievements in our other EAS markets demonstrate our marketing strategies are successful. Through on-site community outreach, community-specific advertising, consistent flightschedules, and outstanding customer service we will quickly build consumer recognition in the community ensuring retention of current passenger momentum while also working to increase demand. To sustain growth well into the future Air Choice One is working to upgrade our certificate. We are targeting completion of this upgrade such that it will allow us to incorporate larger capacity aircraft into our service offering for Alpena in years 3 and 4 of our 4 year options. We commit to providing you with outstanding service and will continue working with you throughout our term to provide the next level of air service that will bring us all success.

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# Air Choice One will team with your local airport to raise awareness about your communities' air service and increase enplanements.

• LOCAL AIRPORT INITIATIVES • Provide Financial Support Through Discounted Fuel Costs • Educate the Community about the EAS Program and Air Choice One's Service • Draft and Distribute Press Releases • Community Involvement • Participate in Marketing and Advertising • Distribute Information Pertaining to Air Choice One at Local Business Events

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# Air Choice One will team with your chosen destination airport to promote tourism opportunities and encourage air travel to your community, again, increasing enplanements.

• CHICAGO O'HARE INTERNATIONAL AIRPORT (ORO) INITIATIVES • EAS Communities Receiving Reliable Service to Hub Airports Have Benefited From a Steady

Increase in Ridership • Market Vacation Packages to ORO and Beyond and to Local Communities From ORO • Air Choice One Operates from Terminal 3, Gate L 11 A**~**

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## Air Choice One is dedicated to working with your community to reinvigorate the service at your airport and sustain growth that will launch us into the future

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• WE ARE YOUR NEIGHBORS • Corporate Headquarters in Midwest • WE ARE IN YOUR COMMUNITY • Routine On-Site Sales Visits • Chamber of Commerce Participation and Membership • Airport Affiliate Participation • STRONG PUBLIC RELATIONS AND MEDIA OUTREACH • Business Incentive Programs • Travel Agent Discounts • Business to Business Communication • Attendance at Public Events • WE KEEP YOU INFORMED • Airport Board Updates

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### Air Choice One reinvests in our served communities.

• TRADITIONAL MEDIA • Radio
- Talk Shows/Commercials • TV Commercials and Event Coverage • Print
- Newspaper/Magazines • Billboards • Web Based

- E-Biasts
- Constant Contact

- Monthly E-Mail Promotions

- City Representation on Our Website • SOCIAL MEDIA • Twitter, Facebook, Linked In • INTERACTIVE MEDIA • Contests • You Tube/Videos • EVENTS AND SPONSORSHIPS 

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• Local Charitable Support- March of Dimes, Make-A-Wish Foundation, Red Cross , etc. • Business/Community Support
- Golf Tournaments , Business Luncheons , Air Shows, etc.

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- Global Distribution Systems

- Consumer Sites

- Travel Agents

- Web Based Booking

- Call Center

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## AIR CHOICE ONE, ALPENA, AND CHICAGO O'HARE: 

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.**"'"""""'""'"-"' "'** **~--"' ''·""~"'·""'** **"'"'""""'- "·"'"** **""''"" '"'-"'** **"'' •'·'·•~-'**  OPTION 1, 2 YEAR TERM WITH DISCOUNTED 4 YEAR TERM OPTION
- ORO SERVICE CESSNA GRAND CARAVAN



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# - ·**-~·------·"·· ·-·~·-·---** **"· ··-"'·'~'·-·**  Alpena, Michigan -Chicago O'Hare International Airport Cessna Grand Caravan 18 Round Trips Per Week**~---·'' '"'"-~** **---- ·-** **--- --** **-----** OPTION 2, 2 YEAR TERM WITH DISCOUNTED 4 YEAR TERM OPTION
- ORO SERVICE CESSNA GRAND CARAVAN**-~'' "'** **""' '"""""'_,.**  .... 

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. .**:.~ ';J** **)** Alpena, Michigan- Chicago O'Hare International Airport Cessna Grand Caravan 21 Round Trips Per Week

OPTION 3, 2 YEAR TERM WITH DISCOUNTED 4 YEAR TERM OPTION
- ORO SERVICE CESSNA GRAND CARAVAN Alpena, Michigan- Chicago O'Hare International Airport Cessna Grand Caravan 24 Round Trips Per Week

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OPTION 4, 2 YEAR TERM WITH D I SCOUNTED 4 YEAR TERM OPTION -ORO SERVICE PIPER NAVAJO Alpena, Michigan- Chicago O'Hare International Airport Piper Navajo 18 Round Trips Per Week**·'>·--~-·~ ·**  - - - - - -- ·**------- --** **·**

OPTION 5, 2 YEAR TERM WITH DISCOUNTED 4 YEAR TERM OPTION -ORO SERVICE PIPER NAVAJO**······ ~-** **··-· -·-**  

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## - · ---- ·· -- - - Alpena, Michigan -Chicago O'Hare International Airport Piper Navajo 24 Round Trips Per Week

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## Alpena, Michigan- Chicago O'Hare International Airport- Caravan Operation Revenues APN-ORD Revenues Other Revenues Total Operating Revenues
Direct Operating Expenses Flying Operations Fuel and Oil Maintenance Aircraft Leases Total Direct
Indirect Total Operating Expenses Operating Loss Profit Element (5% total Oper. Exp.) Compensation Required Compensation per PAX Compensation per Departure

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### $ 772,200 7J22 $ 779,922

$ 348,052 869,973 664,463 420,000 $2,302,488 567,430 $2,921,918 $2,141,996 146,096 $2,288,092 $293 $1,244 # Passengers: 

### 7,800 Average Fare: 

### $99

. 00 Departures: 

### 1,840 Block Hours: 

### 3,164 Revenue Passenger Miles: 

### 2,386,800 Available Seat Miles: 

### 4,491,003
Representative Schedule Departure Arrival APN @ 6:00AM ET ORD @ 6:40AM CT ORD @ 8:00AM CT APN @ 10:40 AM ET APN @ 12:00 PM ET ORD @ 12:40 PM CT ORD@ 2:00PM CT APN @ 4:40 PM ET APN @ 5:30 PM ET ORD@ 6:10PM CT ORD@ 7:00PM CT APN @ 9:40 PM ET

## Alpena, Michigan- Chicago O'Hare International Airport- Caravan Operation Revenues APN-ORD Revenues Other Revenues Total Operating Revenues
Direct Operating Expenses Flying Operations Fuel and Oil Maintenance Aircraft Leases Total Direct
Indirect Total Operating Expenses Operating Loss Profit Element (5% total Oper. Exp.} Compensation Required Compensation per PAX Compensation per Departure

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### $ 940,500 9,405 

### $ 949,905


### $ 424,518

1,033,795

775,207 420,000 $2,653,520 675,610 $3,381,130 $2,431,225 169,057 $2,600,282 $274 $1,212 # Passengers: 

### 9,500 Average Fare: 

### $99.00 Departures: 

### 2,146 Block Hours: 

### 3,691 Revenue Passenger Miles: 

### 2,907,000 Available Seat Miles: 

### 5,239,503
Representative Schedule Departure Arrival APN @ 6:00AM ET ORO @ 6:40 AM CT ORO @ 8:00AM CT APN @ 10:40 AM ET APN @ 12:00 PM ET ORO @ 12:40 PM CT ORO@ 2:00PM CT APN @ 4:40 PM ET APN @ 5:30 PM ET ORO@ 6:10PM CT ORO @ 7:00 PM CT APN @ 9:40 PM ET

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## Alpena, Michigan- Chicago O'Hare International Airport- Caravan Operation Revenues APN-ORD Revenues Other Revenues Total Operating Revenues
Direct Operating Expenses $ 1,039,500 10,395 

### $1,049,895
Flying Operations $ 458,674 Fuel and Oil 1,146,475 Maintenance 833,952 Aircraft leases 420,000 Total Direct $2,859,101**~** •**~~** ··-**~** .,..,j**~** ,..,..--- Indirect Total Operating Expenses Operating loss Profit Element (5% total Oper. Exp.) Compensation Required Compensation per PAX Compensation per Departure

::;_; L**,~** 747,826 

### $3,658,927 $2,609,032 182.946 

### $2,791,978 $266 $1,138 # Passengers: Average Fare: Departures: Block Hours: Revenue Passenger Miles: 10,500 $99.00

2,453 4,170 3,213,000 Available Seat Miles: 5,988,004 Representative Schedule Departure 

### I Arrival APN @ 5 : 00 AM ET ORD@ 5:40AM CT ORD @ 6:30 AM CT APN@ 9:10AM ET APN @ 9:30 AM ET ORD@ 10 : 10 AM CT ORD @ 10:40 AM CT APN @ 1:20PM ET APN @ 2:00 PM ET ORD@ 2:40PM CT ORD @ 3 : 10PM CT APN @ 5:50PM ET APN @ 6:20 PM ET ORD@ 7 : 00PM CT ORD@ 7:30PM CT APN@ 10 : 10 PM ET

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## Alpena, Michigan- Chicago O'Hare International Airport- Navajo Operation Revenues APN-ORD Revenues Other Revenues Total Operating Revenues
Direct Operating Expenses Flying Operations Fuel and Oil Maintenance Aircraft leases Total Direct
Indirect Total Operating Expenses Operating Loss Profit Element (5% total Oper. Exp.) Compensation Required Compensation per PAX Compensation per Departure**L~ 2.**  

### $ 772,200 

### 71722 $ 779,922

$ 300,591 869,973 632,822 325,000 $2,128,386 569,380 $2,749,766 $1,969,844 137,488 $2,107,332 $270 $1,145 # Passengers: 7,800 Average Fare: 

### $99.00 Departures: 

### 1,840 Block Hours: 

### 3,164 Revenue Passenger Miles: 

### 2,386,800 Available Seat Miles: 3,929,628
Representative Schedule Departure Arrival APN @ 6:00AM ET ORD @ 6:40AM CT ! ORO @ 8:00AM CT APN @ 10:40 AM ET APN @ 12:00 PM ET ORD@ 12:40 PM CT ORD @ 2:00 PM CT APN @ 4:40 PM ET APN @ 5:30PM ET ORO@ 6:10PM CT ORD@ 7:00PM CT APN @ 9:40 PM ET

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# Air Choice One

Alpena, Michigan- Chicago O'Hare International Airport- Navajo Operation Revenues APN-ORD Revenues Other Revenues Total Operating Revenues
Direct Operating Expenses Flying Operations Fuel and Oil Maintenance Aircraft leases Total Direct
Indirect Total Operating Expenses Operating Loss Profit Element (5% total Oper. Exp

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### $ 841,500 8,415 $ 849,915

$ 400,788

1,159,963

696,105 325,000 $2,581,856 755,090 $3,388,946 $2,539,031 169.447 $2,708,478 $319 $1,104 # Passengers : 

### 8 , 500 Average Fare: 

### $99.00 Departures: 

### 2,453 Block Hours: 

### 4,219 Revenue Passenger Miles: 

### 2,601,000 Available Seat Miles: 

### 5 , 239,503 Representative Schedule Departure Arrival APN @ 5:00AM ET ORD @ 5:40AM CT ORD @ 6:30AM CT APN@ 9:10AM ET APN @ 9 : 30AM ET ORD@ 10:10 AM CT ORD @ 10 : 40 AM CT APN @ 1:20 PM ET APN @ 2:00 PM ET ORD@ 2:40 PM CT ORD@ 3 : 10PM CT APN @ 5:50 PM ET APN @ 6:20 PM ET ORD@ 7:00PM CT ORD@ 7 : 30PM CT APN@ 10 : 10 PM ET -'--

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# e Look Fo • Established Hub
- Chicago O'Hare
• Successful Pricing Strategy
• Community Support 

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• Proven Reliability 1 02°/o
• Successful Marketing Campaigns
• Service that Caters to Community and Business Needs 

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