Essential Air Service at 

BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

) 'I 11 

r " 

) 

) 

MERIDIAN, MISSISSIPPI ) OST-2008-0112 

) 

Under49U.S.C. §41731 etseq. ) 

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1 (I !2: 11 

SILVER AIRWAYS PROPOSAL TO PROVIDE SUBSIDIZED AIR SERVICE 

AT MERIDIAN, MISSISSIPPI 

Correspondence with regard to this document should be addressed to: 

Mickey Bowman 

Vice President Essential Air Service 

Silver Airways 

1100 Lee Wagener Blvd, Suite 201 

Ft. Lauderdale, FL 33315 

Telephone: 954-302-5929 

Fax: 270-689-2180 

E-Mail: mbowman@gosilver.com 

Silver Airways cordially submits its proposal to provide subsidized air service to the community of Meridian, Mississippi. 

Silver Airways hereby offers one, two year, option for service. This bid is contingent upon Silver Airways also being 

awarded the pending Essential Air Service Contract for service to Greenville, Hattiesburg/Laurel and Tupelo, MS; Muscle 

Shoals, AL; and Greenbrier, WV as these routes will establish the Atlanta base at the heart of this proposal. 

Silver Airways proposes to operate flights, under its independent identity to the major hub airport of Atlanta, 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 and baggage agreements with 

most legacy carriers and will schedule its flights to allow multiple connecting opportunities. Silver Airways contends 

that reasonable local fares will stimulate demand and the variety of destinations available from Atlanta will allow this 

market to grow. Toward that end we will establish a reasonable fare structure between this city and Atlanta. Additionally, 

Silver Airways intends to market these flights via its codeshare relationship with Island Air of Hawaii. This relationship 

will allow Silver Airways flights to be sold via all major global distribution systems, just as Silver Airways existing 

essential air service in Montana is marketed today. Silver Airways flights will maintain our own web based booking site 

as well as a reservation call center. 

Silver Airways is also pursuing what has been termed a "close Interline Relationship" with Delta Airlines. Similar to the 

agreement recently reached between Great Lakes Airlines and Delta Airlines in the Minneapolis hub, this "close Interline" 

relationship would allow connecting itineraries involving Silver Airways and Delta Airlines to appears on the Delta.com 

website. Additionally, Silver Airways is negotiating to potentially participate in the Delta SkyMiles Program as well. 

In compliance with Public Law 100-223, Silver Airways 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 Flight Attendant and an onboard lavatory. The aircraft has ample cargo capacity to accommodate even bulky military 

· duffle bags. 
One of the hallmarks of the Silver Airways operation is our ability to provide safe and reliable transportation. Toward this 

end, Silver Airways has established a regional maintenance base in northern Florida that will support these flights along 

with other Silver Airways routes throughout Florida 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 of operational performance they desire. 
Meridian.-

Service Option 1 

26 Weekly frequencies between Meridian, Mississippi and Atlanta, Geol"gia 

Silver Airways proposes to operate these flights under our independent brand and though it's established codeshare 

relationship with Island Air of Hawaii. The timing of these flights would be optimized for connections to and from legacy 

carriers in Atlanta. Silver Airways proposes to encourage connecting traffic by using a simplified "add on" fee structure 

whereby passengers connecting to or from other 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 of one round trip, nonstop flight on Saturday and two roundtrip, nonstop flights on Sunday 

Silver Airways 

Sample Flight Schedule 

Service Option 1 

FROM TO DEP ARR FLT EQUIP FREQ STOP 

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, Silver Airways believes that this 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 in Atlanta, Georgia. With a renewed focus on price, schedule 

connectivity and reliability, Silver Airways hopes to grow this market. Silver Airways has proven itself as a dependable Essential Air 

Service provider and brings a commitment to work with this community to address their travel needs to the relationship. Integrity of 

service that has been a hallmark of the Silver Airways operation and we look forward to extending our brand into the Southern region. 

Respectfully Submitted: May 17, 2012 

Mickey Bowman 

Vice President Essential Air Service 

Silver Airways