Proposal to Provide Essential Air Service at

 Ironwood, Michigan

Docket DOT-OST-1997-1266

February 5, 2014

Direct Inquiries Regarding this Proposal to:

Shane Storz, CEO

Air Choice One Airlines

12300 Old Tesson Road, Suite 200 F, Saint Louis, MO 63128

Phone: (866) 435-9847 Fax: (314) 843-8527 E-mail: shane@airchoiceone.com

Multi-Aero Inc. 

d/b/a

Air Choice One
Our Commitment

Leads to Success

02/05/2014

Air Choice One sees challenges in the community of Ironwood, Michigan similar to those we have 

recently overcome in Jonesboro, Arkansas. Throughout our Jonesboro service period Air Choice One 

has worked in partnership with the community to reestablish their standing within the Essential Air 

Service Program. 

In less than 2 years Jonesboro has gone from potential expulsion from the EAS program to completing 

a successful probationary period supported by Air Choice One. This resulted in a contract extension 

and secured Jonesboro’s position within the EAS program for their next contract period. We are proud 

of the success we have achieved together and feel we can apply the action plans utilized in Jonesboro 

to achieve similar results in Ironwood. Some key milestones of the partnership are highlighted in the 

coming pages.

We welcome the opportunity to provide the community of Ironwood with the highest level of service in 

the upcoming service period.
Our Commitment

Leads to Success

02/05/2014

AVERAGE ENPLANEMENTS: At the 

2011 RFP, Jonesboro was averaging 

1.5 enplanements per day. For the 

year ending March, 2013 Jonesboro 

averaged 16.5 daily enplanements 

exceeding the DOT minimum of 10 

per day by 65%. 

By improving service reliability, 

introducing a new hub, offering VIP 

travel at a reasonable price, promoting 

both Chicago and Ironwood as 

reciprocal vacation destinations, etc. 

we believe we will achieve similar 

results in the community of Ironwood.

AVERAGE PER PASSENGER SUBSIDY: Also in the 2011 RFP, Jonesboro’s average per passenger subsidy for the 12 

months ended January, 2011, was $840. For the period ending September, 2013, the average had been reduced to $177 

representing an enormous improvement.

Ironwood has reported a year over year decline in most recent enplanement numbers. Air Choice One believes there is 

untapped potential and once passenger enplanements are improved subsidy numbers will fall. It is our goal to support 

the community of Ironwood in reducing per passenger subsidies.
Our Commitment

Leads to Success

AIR CHOICE ONE, IRONWOOD, AND CHICAGO O’HARE: A WINNING COMBINATION!

02/05/2014

Terminal 3, Gate L10B

SERVICE IMPROVEMENTS: Jonesboro patrons had been transported to Memphis International Airport whose passenger 

service options were (and remain) on the decline. By connecting to a new hub in St. Louis, Jonesboro passengers now have 

greatly improved service options through multiple carriers operating approximately 234 daily departures to 64 domestic and 

international markets. We feel that a change from Minneapolis-St. Paul International Airport to Chicago O’Hare International 

Airport will bring a similar boost in passenger interest due to the attraction of Chicago as a destination and endless travel

connections available through O’Hare. We also believe Chicago residents will find Ironwood and the surrounding countryside a

welcome getaway from the hustle and bustle of city life.

Chicago O’Hare At A Glance

• 50 Carriers (January 2012)

• Serving Nearly 67 Million Passengers (2011) 

• 198 destinations (January 2012)
Our Fleet

Cessna Grand Caravan

02/05/2014

Exceptional Cargo Space

Well-Appointed Cabin

Proven Reliability
Air Choice One reinvests in our served communities and will grow ridership

• TRADITIONAL MEDIA

• Radio-Talk Shows/Commercials

• TV Commercials and Event Coverage

• Print-Newspaper/Magazines

• Billboards

• Web Based

– E-Blasts

– Monthly E-Mail Promotions

– City Representation on Our Website 

• SOCIAL MEDIA

• Twitter, Facebook, Linked In

• INTERACTIVE MEDIA

• Contests

• You Tube/Videos 

• EVENTS AND SPONSORSHIPS

• Charitable Support to Resident Organizations and Local Chapters of National Non-Profit Organizations

• Business/Community Support through Golf Tournaments, Business Luncheons, Air Shows, etc.

• COMMUNITY TICKET OFFICE

Market Growth Strategy –

Marketing Investment

02/05/2014
Market Growth Strategy –

Pricing & Accessibility

Air Choice One offers the right price for the right ticket at the right time and offers many convenient ways to book your travel through 

our website, toll-free calling, local travel agencies, and online booking sites.

02/05/2014

• BUILDING & SUSTAINING RIDERSHIP 

THROUGH PRICE

• We work hard to establish a winning 

price point through targeted market 

analysis. We take all factors into 

consideration and enter the market with 

low fares. 

• Introductory Fares Peak Interest and 

Drive Passengers to Air Choice One 

and Your Airport

• On-Going Affordable Fares = Full 

Planes!

• We believe consistent pricing builds 

consumer confidence

• CONVENIENT OPTIONS MAKE BOOKING 

TRAVEL A SNAP!

• www.airchoiceone.com

• Call us at 1-866-I-FLY-VIP

• Visit your local Travel Agent

• Find us on Travelocity, Expedia, 

Priceline, Kayak and more
Options Index

Ironwood, Michigan

OPTION 1, 2 YEAR SERVICE OR 4 YEAR DISCOUNTED SERVICE – ORD

CESSNA GRAND CARAVAN OR PIPER NAVAJO

Ironwood, Michigan – Chicago O’Hare International Airport

Cessna Grand Caravan or Piper Navajo 4 Year Service Discounted in Years 3-4 12 Round Trips Per Week

02/05/2014

OPTION 2, 2 YEAR SERVICE OR 4 YEAR DISCOUNTED SERVICE – ORD

CESSNA GRAND CARAVAN OR PIPER NAVAJO

Ironwood, Michigan – Chicago O’Hare International Airport

Cessna Grand Caravan or Piper Navajo 4 Year Service Discounted in Years 3-4 18 Round Trips Per Week
Ironwood, Michigan – Cessna Grand Caravan or Piper Navajo

Option 1:

2 Year Service or 4 Year Discounted Service (Discounted in Years 3-4)

12 Total Round Trips Per Week – Based on 97% Completion Rate

Ironwood, Michigan – Chicago O’Hare International Airport – Caravan or Navajo

Operation Revenues

IWD-ORD Revenues $ 351,900

Other Revenues 0

Total Operating Revenues $ 351,900

Direct Operating Expenses

Flying Operations $ 451,777

Fuel and Oil 627,960

Maintenance 567,733

Aircraft Leases 479,751

Total Direct $2,127,221

Marketing 50,000

Indirect 908,935

Total Operating Expenses $3,086,156

Operating Loss $2,734,256

Profit Element (5% total Oper. Exp.) 154,308

Compensation Required $2,888,564

Compensation per PAX $566

Compensation per Departure $2,379

# Passengers: 5,100

Average Fare: $69.00

Departures: 1,214

Block Hours: 1,874

Revenue Passenger Miles: 1,693,200

Available Seat Miles: 3,215,247

02/05/2014

DISCOUNTED SUBSIDY

$2,859,678/Year

$2,355/Departure

DISCOUNTED FOR YEARS 3-4

Representative Schedule

Departure Arrival

IWD 6:00 AM ORD 7:50 AM

ORD 12:10 PM IWD 2:00 PM

IWD 3:25 PM ORD 5:15 PM

ORD 7:15 PM IWD 9:05 PM
Ironwood, Michigan – Cessna Grand Caravan or Piper Navajo

Option 2:

2 Year Service or 4 Year Discounted Service (Discounted in Years 3-4)

18 Total Round Trips Per Week – Based on 97% Completion Rate

Ironwood, Michigan – Chicago O’Hare International Airport – Caravan or Navajo

Operation Revenues

IWD-ORD Revenues $ 558,900

Other Revenues 0

Total Operating Revenues $ 558,900

Direct Operating Expenses

Flying Operations $ 617,872

Fuel and Oil 941,941

Maintenance 809,020

Aircraft Leases 479,750

Total Direct $2,848,583

Marketing 50,000

Indirect 1,027,411

Total Operating Expenses $3,925,994

Operating Loss $3,367,094

Profit Element (5% total Oper. Exp.) 196,300

Compensation Required $3,563,394

Compensation per PAX $440

Compensation per Departure $1,956

# Passengers: 8,100

Average Fare: $69.00

Departures: 1,822

Block Hours: 2,811

Revenue Passenger Miles: 2,689,200

Available Seat Miles: 4,822,871

02/05/2014

DISCOUNTED SUBSIDY

$3,527,760/Year

$1,936/Departure

DISCOUNTED FOR YEARS 3-4

Representative Schedule

Departure Arrival

IWD 6:00 AM ORD 7:50 AM

ORD 8:15 AM IWD 10:05 AM

IWD 11:30 AM ORD 1:20 PM

ORD 12:10 PM IWD 2:00 PM

IWD 3:25 PM ORD 5:15 PM

ORD 7:15 PM IWD 9:05 PM
Air Choice One Has The Keys

To Your Success

02/05/2014

ALL SEATING

FIRST CLASS