October 27, 2014

Proposal of Hyannis Air Service, Inc. dba Cape Air to provide subsidized Essential Air Service for:

Massena, NY

To/From 

Boston via Albany

Docket DOT-OST-2012-0163 

Hyannis Air Service, Inc., dba Cape Air

Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601 

(508) 862-9719
Cape Air is delighted to have served Massena 

for more than six years

• Cape Air started serving Massena on 

September 16, 2008

• Since then we have flown more than 

48,000 passengers to or from Massena

• Cape Air serves Massena three times 

daily to/from Boston, via Albany

• Fares are low, in 2014 averaging just $53 

net

• Serving both Massena and Ogdensburg 

provides critical mass to recover from 

irregular operations

1

Overview

Massena ribbon cutting
Cape Air’s service at Massena has brought ridership to a 

modern high

2

Source: US DOT T100 and Cape Air FLIFO

Massena enplanements

723

2,327

2,056

3,201

2,925

2,085

950

3,252 3,350

4,396

5,027 4,854

0

1,000

2,000

3,000

4,000

5,000

6,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
OVERVIEW

Cape Air

3
4

Cape Air has grown from a single aircraft and route in 1989 

to America’s largest commuter airline today

 First route was Boston – Provincetown, 

begun in October 1989 with one aircraft

 Today’s fleet

 76 Cessna 402s in four regions 

 Four Britten-Norman Islanders

 Two ATR-42s in Micronesia

 Operating up to 550 flights daily

 In 2013 flew 728,000 passengers

 Stable, mature and growing company 

Key facts Cape Air: Leading the pack nine at a time

Photo courtesy Mark Garfinkel (August 7, 2000, Boston)
Cape Air 2014

• Annual revenue of $120M 

• Financially stable

• 44 airports served, 20 in EAS

• 83 aircraft

5

Captain Krista Poppe

Augusta based
San Juan

Mayaguez

St. Croix

Vieques

Tortola

St. Thomas

Anguilla

Nevis

Virgin Gorda

Culebra

Provincetown

Hyannis

Nantucket

Providence

New Bedford

Martha’s Vineyard

Augusta

Lebanon Rutland

Ogdensburg Saranac Lake

Massena

White Plains

Albany

Manhattan

Rockland

Bar Harbor

Boston

Cape Air Routes

October 2014

Ft. Leonard Wood

Cape Girardeau

Quincy Kirksville

St. Louis

Marion Owensboro

Havre Glasgow

Wolf Point

Sidney

Glendive

Billings

Map inset not to scale

Rota

Saipan

Guam

Micronesia

Denotes seasonal service

Proud to be America’s 

finest commuter airline! Block Island
One of Cape Air’s best features is interline connections 

with all of the legacy airlines plus JetBlue, giving Massena 

access to the world

7
Itineraries connecting between Cape Air and United are 

available on united.com

8
At joint cities Cape Air’s connecting destinations 

appear on jetblue.com

9

Massena on 

jetblue.com!
Through Expedia and other OTAs, Cape Air connects EAS 

communities with most network airlines

10
11

Over more than 20 years in business Cape Air has 

invested in the airline features smaller communities need

Feature Established

Reliability

Tickets sold through 

Expedia, Orbitz, Travelocity

Interline e-ticketing 

with all legacy airlines

Checked luggage transfer

with all legacy airlines

TSA security program
Cape Air proposes continued service 

with our fleet of 76 Cessna 402s

12
Cape Air takes environmental sustainability seriously by 

investing in fuel-saving aircraft technologies and 

powering its offices with solar panels 

13
14

Cape Air’s Reservations Call Center

Cape Air has its own internal reservations center

800-CAPE-AIR

(Where there is never a booking fee!)
Since 2011 Cape Air has operated a ticket office in 

Massena

15
16

The key to Cape Air’s success is our friendly people...

Daffodil “Daffy” Day at Cape Air Reservations
17

...And our mantra: 

Have

A

Good

Time

Doing

It!

Make

Our

Customers

Happy,

And

Cape Air celebrates Valentine’s Day in the Caribbean
MASSENA

Air Service For

18
Marketing Massena’s air service is a key part of our job...

...and it’s great fun, too!
Cape Air is pleased to propose continued service at 

Massena

20 Notes:

•Cape Air prefers a four-year reselection, offered at a discount

•See note on next slide regarding annual escalation factor

4-year option 

preferred

Drivers

Economics—Year 1 (see note) Year 1 Year 1

Daily RTs 3

Completion rate 97%

Pax/Dpt 4.41

Load Factor 49%

Fare (net) $53.01 

Pax Rev/Dpt $233.79 

Fuel $866,537 

Maintenance $1,034,800 

Pilots $255,058 

Ownership $354,443 

Stations $492,457 

Operating Fees $120,401 

Marketing $63,375 

General & Admin./Other $272,230 

Operating Expense $3,506,415 

Return of 5% $184,548 

Economic Expense $3,690,963 

Passenger Revenue $1,082,190 

Profit ($2,608,773)

Conforming 2-Year

Subsidy Required $2,608,773 

Per Departure $1,228 

Per Passenger $278 

4-Year Contract Discount $2,549,293 

Per Departure $1,200 

Per Passenger $272 
To align revenue with costs over time 

Cape Air proposes a 4% annual escalation factor

21

Annual subsidy including escalation

Two-year reselection MSS

Year 1 $2,608,773 

Year 2 $2,713,124 

Four-year reselection

Year 1 $2,549,293 

Year 2 $2,651,265 

Year 3 $2,757,315 

Year 4 $2,867,608 
22

Cape Air would be honored to be reselected at Massena!

 Proven service that yields record enplanements at Massena

 High-frequency non-stop service to/from Boston Logan; via Albany

 Full interline connectivity, allowing same-ticket connections with the world

 Global distribution

 Ample fleet of back-up aircraft

 Robust marketing and downtown ticket office 

Cape Air offers the airline amenities Massena needs:

Cape Air: Your Community Wings!
Thank You!

23

Hyannis Air Service, Inc., dba Cape Air

Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601 

(508) 862-9719