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BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, DC 

••;FPARTMENTOr 

r--AN5PORTAllON 

. ^.CKLTQPERAHONS 

m\ OCT n A ^: 35' 

Essential Air Service at 

Waterloo, Iowa. 

under 49 U.S.C. 41731 et seq. 

DOT-OST-2011-0132 

AMERICAN EAGLE AIRLINES PROPOSAL TO PROVIDE ESSENTIAL AIR SERVICE AT 

WATERLOO. IOWA 

American Eagle Airlines ("American Eagle"), a wholly owned subsidiary of AiVlR Corporation, 

respectfully submits its proposal to provide subsidized Essential Air Service to Waterloo, Iowa. 

American Eagle proposes service from AMR's hub at Chicago O'Hare International Airport 

("ORD") to the Waterloo Regional Airport ("ALO"), with two daily round-trips on Embraer 

Regional Jet aircraft. 

-American €agl.e is the predominate regional carrier for American Airlines, offering 

approximately 1,700 daily departures with service to nearly 180 cities. Through our 

relationship with American, our customers have access to more than 250 cities, 40 countries • 

and more than 3,400 daily departures. In addition, our oneworld® alliance provides our 

customers access to over 700 destinations in 140 countries worldwide. Schedules and pricing 

are coordinated across the expanse of the American Airlines, British Airways, Iberia Airlines, 

Japan Airlines and QANTAS Airways network through our immunized alliances under the 

oneworld® banner. At ORD alone, American, American Eagle and American Connection offer 

more than 500 daily departures to over 115 destinations. This direct access to the vast 

American and oneworld® network will ensure Waterloo remains a vibrant and growing part of 

the national air transportation system. 

American Eagle has made a renewed commitment to the Essential Air Service market in 2011, 

winning the right to serve Joplin, MO, Grand Island, NE, and Watertown, NY., and bidding to 

serve Garden City, KS. In addition, we have been serving smaller communities for many years. 

In the case of Roswell, NM, we took a market that was on the verge of subsidized service after 

Mesa Airlines announced its departure, and turned it into a self-sustaining market with four 

daily flights to DFW. In Manhattan, KS, American Eagle was brought in to serve the community 

through a partnership with the state of Kansas. Since beginning service in August 2009, we 

have not only made the DFW service self-sustaining, but added service to ORD 15 months later 

(November 2010), and will add a second daily flight to our ORD hub this winter (November 
2011). American Eagle hopes and believes that we will have as much success in Waterloo as we 

have had in other regions of the country. 

American Eagle would like to request the ability to operate any of our three variants to Embraer 

Regional Jets for the same subsidy amount. Allowing us to substitute 37-, 44- or 50-seat RJs will 

provide us the flexibility to match supply with demand, as well as provide operational flexibility, 

which will improve reliability. American Eagle also requests that the DOT and Waterloo waive 

the right to hold-in American Eagle upon issuance of a 120 day notice to terminate service. 

Although we do not foresee this to be an issue and plan on serving Waterloo for many years to 

come if selected, we cannot be operationally constrained and kept in a market indefinitely, 

without the ability to adapt to a changing marketplace. 

We believe that our history of success in smaller communities are demonstrative of the quality 

of American Eagle's product and of the strength of the American and oneworld® brands and 

network. Further, American Eagle is the only regional airline with a dedicated Marketing and 

Sales group that works side-by-side with smaller communities to promote the service and 

stimulate traffic. 

We look forward to serving Waterloo and the surrounding region, and appreciate the 

community's and the Department of Transportation's consideration of American Eagle. 

Sine 

Robert M. Emrich 

Managing Director, Planning and Scheduling 

American Eagle Airlines 
Market: 

Aircraft: 

Waterloo. lA to Chicago O'Hare 

Emb140 

Mileage 

Annual Deps (Factored) 

Block per Dap 

Annual Block Hours (Factored) 

Completion % 

237 

1,329 

1.08 

1,428 

98% 

Number of Seats per Dep 44 

Annual ASMs (Factored) 13,854,641 

Annual RPMs 10,241,350 

Annual LF 74% 

Revenues 

Annual Passengers 

Avg Fare - Onboard 

43,212 

91.97 

Expenses 

Flight operations 

Passenger related 

Fuel 

Stations 

Other 

$ 3,974,249 

$ 1,734,005 

S 434,075 

$ 1,623,592 

S 1,127,917 

$ 333,813 

Profit/(Loss) 

Profit Element (@5%) 

Subsidy required 

Subsidy / Departure 

Subsidy / Passenger 

$ 5,253,402 

$ (1,279,154) 

$ 262,670 

$ 1,541,824 

1,160 

35.68 

Segment 

ALO-ORD 

ORD-ALO 

ALO-ORD 

ORD-ALO 

Proposed Schedule* 

Depart 

6:30 

14:30 

16:20 

19:30 

Arrive 

7:30 

15:45 

17:20 

20:45 

Frequency 

Daily 

Daily 

Daily 

Daily 

' Schedule is shown for illustrative purposes only and American Eagle reserves the right to change without notice