Essential Air Service at 

### BEFORE THE DEPARTMENT OFTRANSPORTATION WASHINGTON, D.C.

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### MERIDIAN, MISSISSIPPI ) OST-2008-0112 ) 

### Under49U.S.C. §41731 

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SILVERAIRWAYS PROPOSALTO PROVIDE SUBSIDIZEDAIR SERVICE AT MERIDIAN, MISSISSIPPI
Correspondence with regard to this document shouldbe addressed to: Mickey Bowman Vice PresidentEssential Air Service SilverAirways 1100LeeWagener Blvd, Suite 201 Ft. Lauderdale, FL 33315 Telephone: 954-302-5929 Fax: 270-689-2180 E-Mail: mbowman@gosilver.com

SilverAirways cordially submits its proposal to provide subsidized air service to the community ofMeridian, Mississippi. SilverAirways hereby offers one, two year, optionfor service. This bid is contingentupon SilverAirways also being awarded the pending Essential Air Service Contractfor service to Greenville, Hattiesburg/Laurel and Tupelo, MS; Muscle Shoals, AL; and Greenbrier, WV as these routes will establish the Atlantabase at the heart ofthis proposal.

SilverAirways proposes to operate flights, under its independent identity to the major hub airport ofAtlanta, Georgia. Atlanta's Hartsfield airport is the nation's busiest with over 1,200 daily departures to over 200 cities worldwide. Silver Airways, formerly Gulfstream International AirlineS, has maintained interline ticketing andbaggage agreements with most legacy carriers and will schedule its flights to allow multiple connecting opportunities. SilverAirways contends that reasonable local fares will stimulate demand and the variety ofdestinations available from Atlanta will allow this market to grow. Towardthat end we will establish areasonable fare structure between this city and Atlanta. Additionally, Silver Airways intends to market these flights via its codeshare relationship with Island Air ofHawaii. This relationship will allow Silver Airways flights to be sold via all major global distribution systems,justas SilverAirways existing essential air serviceinMontana is marketed today. SilverAirways flights will maintain our own web basedbooking site
as well as a reservation call center.
SilverAirways is also pursuing what has been termed a "close Interline Relationship" with Delta Airlines. Similarto the agreementrecently reachedbetween GreatLakes Airlines and Delta Airlines in the Minneapolis hub, this "close Interline" relationship would allow connecting itineraries involving Silver Airways and DeltaAirlines to appears on the Delta.com website. Additionally, SilverAirways is negotiating to potentially participate in the Delta SkyMilesProgram as well.

In compliance with Public Law 100-223, SilverAirways proposes to operate these flights using Saab 340B+ turboprops that are pressurized and accommodate 34 passengers. The Saab 340 B+features stand up headroom, a pressurized cabin,
a FlightAttendant and an onboard lavatory. The aircraft has ample cargo capacity to accommodate even bulky military

· duffle bags.One ofthe hallmarks ofthe SilverAirways operation is our ability to provide safe and reliable transportation. Towardthis end, Silver Airways has established a regional maintenance base in northern Floridathat will support these flights along with other Silver Airwaysroutes throughoutFlorida and the Bahamas. A spare aircraft will be positioned in the Gainesville, FL. maintenance base. With this spare aircraft we have great flexibility in responding to any operational challenges and can assure these communities receive the level ofoperational performance they desire.

### Meridian.-



### Service Option 1 26 Weekly frequencies between Meridian,Mississippi andAtlanta, Geol"gia SilverAirways proposes to operate these flights under our independent brand andthough it's established codeshare relationship with Island Air ofHawaii. The timing ofthese flights would be optimized for connections to and from legacy carriers in Atlanta. SilverAirways proposes to encourage connecting traffic by using a simplified "add on" fee structure wherebypassengers connecting to orfromother airline flights would pay only a low incremental fare for the Silver Airways segment. This service constitutes two weekday roundtrips operating on a nonstop routing Weekend service would consist ofone round trip, nonstop flight onSaturday and two roundtrip, nonstop flights on Sunday


### SilverAirways SampleFlightSchedule Service Option 1
FROM TO DEP ARR FLT EQUIP FREQSTOP STA STA TIME TIME NUM
Meridian Atlanta 9:15am 11:40 am 4005 SF3 X6 0 Meridian Atlanta 11:15 am 1:40pm 4005 SF3 6 Only 0 Meridian Atlanta 5:45pm 8:10pm 4014 SF3 X6 0
Atlanta Meridian 8:10am 8:45am 4004 SF3 X6 0 Atlanta Meridian 10:10 am 10:45 am 4004 SF3 6 Only 0 Atlanta Meridian 4:40pm 5:15pm 4009 · SF3 X6 0
(Note: This Schedule is for illustrative purposes and may not reflect the final published product)Service Option 1 Compensation Summary Route:**ATL~MEI** Stats & Assumptions Completion % Aircraft Type Departures Block Hours Flight Hours Passengers Load Factor Avg Fare A/C Miles RPMs (000) ASMs (000)
Oper. Expenses Fuel Crew Maintenance Station Turns Distribution A/C Ownership Promotion Fixed Overhead Total
Operating Loss 5% Profit Margin on Cost EAS Subsidy Subsidy 

### I Pax 98% SF3 1,327 1,990 1,106 24,749 55% 91.58 354,288 6,608 12,046

1,173,748

694,461 1,353,062

533,693 294,788 226,278

12,000 173,198 4,461,227

2,194,746

223,061 2,417,808 97.70

In conclusion, SilverAirways believes thatthis proposal will provide this community with superior air service options. We feel the passengers will benefit from service to the nation's busiest hub airport inAtlanta, Georgia. With a renewed focus onprice, schedule connectivity and reliability, Silver Airways hopes to grow this market. SilverAirways has proven itselfas a dependable Essential Air Service provider and brings a commitment to work with this communityto address their travel needs to the relationship. Integrity of service that has been a hallmark ofthe Silver Airways operation and we look forward to extendingour brand into the Southernregion. Respectfully Submitted: May 17, 2012

Mickey Bowman Vice PresidentEssential Air Service Silver Airways