BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

__________________________________________ 

)

Essential Air Service at )

)

EL DORADO/CAMDEN, ARKANSAS ) OST-1997-2935

HARRISON, ARKANSAS ) OST-1997-2935

)

Under 49 U.S.C. §41731 et seq. )

__________________________________________ 

GULFSTREAM INTERNATIONAL AIRLINES PROPOSAL 

TO PROVIDE SUBSIDIZED AIR SERICE AT 

EL DORADO/CAMDEN AND HARRISON, ARKANSAS

Correspondence with regard to this document should be addressed to:

Mickey Bowman

Vice President of Essential Air Service

Gulfstream International Airlines

1100 Lee Wagener Blvd., Suite 201

Ft. Lauderdale, FL 33315

Telephone: 270-689-2180

Fax: 270-689-2180

E-Mail: mbowman@gulfstreamair.com

Gulfstream International Airlines (“Gulfstream”) cordially submits its proposals to provide subsidized air 

service to both El Dorado/Camden and Harrison, Arkansas. Gulfstream hereby offers one option for 

service at each community. These bids are not contingent upon one another.

Gulfstream proposes to operate flights under its independent Gulfstream International Airlines identity to 

the hub airport of Memphis, Tennessee. Gulfstream has maintained interline ticketing and baggage 

agreements with most legacy carriers and will schedule its flights to maximize connecting opportunities. 

Gulfstream contends that reasonable local fares will stimulate demand and the variety of destinations 

available from Memphis will allow this market to grow. Toward that end we will establish a fare structure 

predicated on a $150 roundtrip fare between these cities and Memphis. Gulfstream flights will be available 

for sale through all major reservation portals and we will maintain our own web based booking site as well 

as a reservation call center.

It should also be noted that Gulfstream is in discussions with a major legacy carrier in an effort to offer a 

fully coordinated interline product on these flights. Should those efforts be successful, El Dorado/Camden 

and Harrison passengers will enjoy amenities well beyond what they are receiving today including through 

pricing and baggage check, advance seat selection, inclusion in the legacy carrier frequent flyer program 

and reservation service through all major online portals as well as the legacy carrier’s own website and call 

center.

In compliance with Public Law 100-223, Gulfstream proposes to operate these flights using Beech 1900D 

turboprops that are pressurized and accommodate 19 passengers. The 1900D features stand up headroom 

with ample cargo capacity to accommodate even bulky military duffle bags. 
One of the hallmarks of the Gulfstream operation is our ability to provide safe and reliable transportation. 

The addition of these cities represents growth to Gulfstream’s Memphis operation. With the award for 

service to Muscle Shoals, AL, Gulfstream began the process of establishing a regional maintenance base in 

the mid-south. Additionally, a spare aircraft was allocated to the Memphis operation. With this spare 

located in Memphis, Gulfstream will have great flexibility in responding to any operational challenges and 

assures these communities receive the level of operational performance they deserve. 

Service Option 1 El Dorado/Camden, Arkansas

24 Weekly frequencies between El Dorado/Camden. Arkansas and Memphis, Tennessee

Gulfstream proposes to operate these flights under it own independent marketing identity, though it will 

work to secure a full coordinated interline relationship with a Legacy Carrier prior to actual service start. 

The timing of these flights will be optimized for connections to and from other airline flights at Memphis 

Gulfstream proposes to encourage connecting traffic by using a simplified local fee structure whereby 

passengers connecting to or from other airline flights would pay only the low, local fare in addition to the 

low fares already a feature at Memphis. The basic service pattern would consist of two roundtrips each 

weekday to Memphis. A single roundtrip would operate on Saturdays and Sundays to Memphis.

Gulfstream Airlines

Sample Flight Schedule

Service Option 1

FROM TO DEP ARR FLT EQUIP FREQ STOP

STA STA TIME TIME NUM

EL DORADO/CAMDEN MEMPHIS 0640 0750 3580 BE1 X7 0

EL DORADO/CAMDEN MEMPHIS 1140 1250 3582 BE1 X67 0

EL DORADO/CAMDEN MEMPHIS 1635 1745 3584 BE1 7 Only 0

MEMPHIS EL DORADO/CAMDEN 0930 1040 3581 BE1 X7 0

MEMPHIS EL DORADO/CAMDEN 1935 2045 3583 BE1 X6 0

(Note: This Schedule is for illustrative purposes and may not reflect the final published product)
GULFSTREAM INTERNATIONAL AIRLINES

Essential Air Service Proposal

El Dorado/Camden, AR - Memphis, TN

Option 1

El Dorado/Camden

Hub Served Memphis

Number of Roundtrips per Service Day 2

(2 non-stop)

Operating Statistics

Assumed Completion % 98%

Annual Adjusted Block Hours 1,430.80

Annual Adjusted Departures 1,226.40

Annual Adjusted ASMs 4,776,841

Annual RPMs 568,260

Projected Load Factor 11.9%

Revenue Projections

Enplaned Passengers 2,772

Mileage

(Average as 

Operated) 205

Average Fare $ 69.38 

Passenger Revenue $ 192,308 

Expense Projections

Flight Operations $337,242

Ownership $323,952

Maintenance $696,475

Reservations, Stations & Administration $635,510

Fuel $686,786

Marketing $12,000

Total Annual Expenses $2,691,964

Projected Profit / (Loss) ($2,499,657)

Profit Element @ 5% $134,598

Annual Subsidy Required $2,634,255

Subsidy per Departure $2,147.95

Subsidy per Passenger $950.31
Service Option 1 Harrison, Arkansas

24 Weekly frequencies between Harrison. Arkansas and Memphis, Tennessee

Gulfstream proposes to operate these flights under it own independent marketing identity, though it will 

work to secure a full coordinated interline relationship with a Legacy Carrier prior to actual service start. 

The timing of these flights will be optimized for connections to and from other airline flights at Memphis 

Gulfstream proposes to encourage connecting traffic by using a simplified local fee structure whereby 

passengers connecting to or from other airline flights would pay only the low, local fare in addition to the 

low fares already a feature at Memphis. The basic service pattern would consist of two roundtrips each 

weekday to Memphis. A single roundtrip would operate on Saturdays and Sundays to Memphis.

Gulfstream Airlines

Sample Flight Schedule

Service Option 1

FROM TO DEP ARR FLT EQUIP FREQ STOP

STA STA TIME TIME NUM

HARRISON MEMPHIS 0640 0750 3585 BE1 X7 0

HARRISON MEMPHIS 1635 1745 3587 BE1 X6 0

MEMPHIS HARRISON 0930 1040 3586 BE1 6 Only 0

MEMPHIS HARRISON 1445 1555 3588 BE1 X67 0

MEMPHIS HARRISON 1935 2045 3590 BE1 X6 0

(Note: This Schedule is for illustrative purposes and may not reflect the final published product)
GULFSTREAM INTERNATIONAL AIRLINES

Essential Air Service Proposal

Harrison, AR - Memphis, TN

Option 1

Harrison

Hub Served Memphis

Number of Roundtrips per Service Day 2

(2 non-stop)

Operating Statistics

Assumed Completion % 98%

Annual Adjusted Block Hours 1,430.80

Annual Adjusted Departures 1,226.40

Annual Adjusted ASMs 4,613,729

Annual RPMs 783,427

Projected Load Factor 17.0%

Revenue Projections

Enplaned Passengers 3,957

Mileage

(Average as 

Operated) 198

Average Fare $ 69.38 

Passenger Revenue $ 274,496 

Expense Projections

Flight Operations $337,242

Ownership $323,952

Maintenance $696,475

Reservations, Stations & Administration $660,835

Fuel $686,786

Marketing $12,000

Total Annual Expenses $2,717,289

Projected Profit / (Loss) ($2,442,793)

Profit Element @ 5% $135,864

Annual Subsidy Required $2,578,657

Subsidy per Departure $2,102.62

Subsidy per Passenger $651.72
In conclusion, Gulfstream believes these proposals will provide the communities of El Dorado/Camden 

and Harrison with a superior air service option. We feel the passengers will benefit from the fact that 

Memphis is a primary logistical and business center with an airport that serves as a hub for a major legacy 

carrier. In 2009 over 5,000,000 passengers enplaned in Memphis. Delta Air Lines alone offers over 200 

daily departures with non-stop service to some 87 destinations around the world. Gulfstream will provide 

this service on stand up, pressurized airliners and the infrastructure we will establish in support of this 

operation will add jobs to the local economy. Additionally the integrity of service that has been a hallmark 

of the Gulfstream operation will assure both dependability and reliability to the traveling public and result 

in increased ridership and passenger satisfaction.

 

Respectfully Submitted: May 25, 2011

______________________

Mickey Bowman

Vice President of Corporate Development

Gulfstream International Airlines