April 17, 2014

Kevin Schlemmer

Office of Aviation Analysis

US Department of Transportation

1200 New Jersey Avenue SE

Washington, DC 20590

RE: EAS at Altoona, PA (“AOO”) Docket DOT-OST-2002-11446

EAS at Johnstown, PA (“JST”) Docket DOT-OST-2002-11451

EAS at Greenbrier/White Sulphur Springs, WV (“LWB”) Docket DOT-OST-2003-15553

EAS at Beckley, WV (“BKW”) Docket DOT-OST-1997-2761

EAS at Clarksburg/Fairmont, WV (“CKB”) Docket DOT-OST-2005-20736

EAS at Morgantown, WV (“MGW”) Docket DOT-OST-2005-20735

EAS at Staunton, VA (“SHD”) Docket DOT-OST-2002-11378

EAS at DuBois, PA (“DUJ”) Docket DOT-OST-2004-17617

EAS at Parkersburg, WV / Marietta, OH (“PKB”) Docket DOT-OST-2005-20734

Dear Mr. Schlemmer: 

Silver Airways is pleased to provide to the Department of Transportation our response to the Request 

for Proposals for Essential Air Service to the nine communities listed above. Our proposal is designed to 

be a single, comprehensive response which we believe will best meet the needs of each community and 

the Department of Transportation. We believe we meet all regulations and guidelines issued by the 

department with our response.

Silver Airways proposes to maintain service at all nine cities with service operated in cooperation with 

United Airlines from ourhub at Dulles International Airport (“IAD”) in Washington, D.C. on board 34-

seat Saab 340 Bplus aircraft. Flight frequency levels at six of the nine communities would remain similar 

to the levels Silver has provided since August 1, 2012. The growing DuBois, PA and Parkersburg, 

WV/Marietta, OH markets would see significant improvements to service levels, as flights would be 

shifted from Cleveland to Washington (Dulles)and operated with larger aircraft featuringmore 

customer appeal. We propose to reduce Altoona from three peak-day roundtrips to two in response to 

the Department’s concerns over traffic levels and the amount of subsidy per passenger. We propose to 

continue our pattern of operating one-stop flights to maximize frequency and access to the hub for each 

community. We propose an annual subsidy of $23,610,300 in order to provide service to all nine cities.
We believe the Silver Airways bid will be superior to others the Department may receive for several 

reasons:

 Access to a global network

o In order to maximize the effectiveness of air service, it is very important to provide 

access to a large airline hub. As such, Silver Airways intends to connect these nine 

communities to United’s Dulles hub, which has over 250 daily departures to over 100 

destinations worldwide.

 Frequency and Schedule

o By combining flights of neighboring communities, we believe Silver Airways can offer 

the best combination of frequency and departure times from each community. We 

believe we can offer more frequency through this method, which increases the utility of 

our flights to the passengers and communities we serve.

 Saab SF 340 Bplus

o Our Saab 340 Bplus aircraft offer a superior passenger experience, strong economics, 

and outstanding safety. There are several passenger friendly amenities onboard Silver’s 

proposed flights, including a lavatory, flight attendant, beverage service, and cabin noise 

reduction system.

 Washington, DC

o The nine communities within this proposal have strong ties to the capital region. For 

example, the FBI’s National Crime Information Center is located near Clarksburg and the 

Treasury Department’s Bureau of the Public Debt has operations in Parkersburg. 

Additionally, the Metro Silver line, once completed, will enhance the ability for 

passengers to use Dulles International Airport as their gateway to Washington.

For the reasons outlined above, we believe that Silver Airways’ proposal to continue providing Essential 

Air Service to Altoona, Johnstown, Greenbrier/White Sulphur Springs, Beckley, Clarksburg/Fairmont, 

Morgantown, Staunton, DuBois, and Parkersburg will be the best proposal for each community. We 

look forward to continuing to work with each community on ensuring its air service needs are met 

through the Essential Air Service program.

Sincerely,

Travis Christ

Chief Commercial Officer

Silver Airways
April 17, 2014 Silver Airways Essential Air Service Proposal Page | 3

The terms associated with our proposal are below.

Start Date

Term

Severability

Departures per week

AOO:

BKW:

CKB:

DUJ:

JST:

LWB:

MGW:

PKB:

SHD:

LWB Exceptions

Contingency Silver Airways proposes to operate flights in cooperation with United Airlines through an 

extension of our existing commercial agreements. Our proposal is contingent upon 

executing an extension of our existing agreement with United Airlines.

Seasonality: Similar to the existing service, we propose to fly 14 roundtrips per week 

May 1 - October 31 and 12 roundtrips per week November 1 - April 30 .

Atlanta: Silver requests the flexibility to continue to operate 7 roundtrips between 

LWB and Atlanta, GA, up to 50% of scheduled flights at LWB through January 31, 2015 

for schedule transition purposes.

18 flights per week; 12 nonstop to/from IAD; 6 with stops at DUJ; 5 of 12 

nonstops will continue on to AOO

14 flights per week May 1 - November 30; 12 flights per week December 1 - 

April 30; All flights nonstop to/from IAD

18 flights per week; 12 nonstop to/from IAD; 6 with stops at CKB or PKB

18 flights per week; 12 nonstop to/from IAD; 6 with stops at CKB or MGW

18 flights per week; 12 nonstop to/from IAD; 6 which operate IAD-BKW-SHDIAD

Our proposed service to LWB has two variations:

12 flights per week; 5 with a stop at JST in each direction; 7 nonstop to IAD; 5 

of the 7 IAD nonstops will have onward service to/from DUJ (i.e. DUJ-AOO-IAD)

12 flights per week; 6 nonstop to IAD roundtrip; 6 which operate IAD-BKW-SHDIAD

18 flights per week; 7 nonstop to/from IAD; 11 with stops at MGW or PKB

18 flights per week; 6 nonstop to/from IAD; 12 with stops at AOO or JST

Contract to begin August 1, 2014 with schedule modifications to begin on August 19, 2014

Two years beginning August 1, 2014 and ending July 31, 2016

It is essential for each of the nine proposed communities that we fly to all nine 

communities. In order to maintain economies of scale in maintenance, flight operations, 

crew scheduling, and Dulles airport operations, it is critical that we are awarded all nine 

communities. Thus, each community is inseperable from the package of flights we have 

proposed.

For each community, we propose to operate a minimum number of departures to IAD and 

arrivals from IAD per week:

Proposal Terms
April 17, 2014 Silver Airways Essential Air Service Proposal Page | 4

Below, we have summarized our proposal for each community. Additional details can be found in the 

appendices on pages 11 – 14.

Market AOO BKW CKB DUJ JST

Departures to/from IAD per week 2 4 2 4 3 6 3 6 3 6

Equipment Type SF3 SF3 SF3 SF3 SF3

Seats per Departure 3 4 3 4 3 4 3 4 3 4

Subsidy Calculation

Revenue $ 1,213,470 $ 818,575 $ 1,815,526 $ 1,568,883 $ 2,329,570

Total Expenses $ 2,635,787 $ 4,178,115 $ 3,929,313 $ 3,775,315 $ 4,342,345

Operating Income (Loss) $ (1,422,317) $ (3,359,539) $ (2,113,787) $ (2,206,432) $ (2,012,774)

5% Profit Margin (on Costs) $ 131,789 $ 208,906 $ 196,466 $ 188,766 $ 217,117

Subsidy Requirement $ 1,554,106 $ 3,568,445 $ 2,310,252 $ 2,395,197 $ 2,229,892

Departures to/from IAD per year 1,251 1,251 1,878 1,878 1,878

Passengers 7,830 7,277 12,138 12,045 12,533

Subsidy per Flight $ 1,242 $ 2,851 $ 1,230 $ 1,275 $ 1,187

 Weekly Maximum $ 29,805 $ 68,436 $ 44,306 $ 45,935 $ 42,765

Subsidy per Passenger $ 198 $ 490 $ 190 $ 199 $ 178

Market LWB MGW PKB SHD

Departures to/from IAD per week 2 6 3 6 3 6 3 6

Equipment Type SF3 SF3 SF3 SF3

Seats per Departure 3 4 3 4 3 4 3 4

Subsidy Calculation

Revenue $ 1,294,336 $ 2,671,960 $ 2,727,781 $ 2,855,273

Total Expenses $ 4,898,964 $ 4,775,271 $ 5,936,816 $ 4,485,861

Operating Income (Loss) $ (3,604,628) $ (2,103,311) $ (3,209,035) $ (1,630,588)

5% Profit Margin (on Costs) $ 244,948 $ 238,764 $ 296,841 $ 224,293

Subsidy Requirement $ 3,849,576 $ 2,342,074 $ 3,505,876 $ 1,854,881

Departures to/from IAD per year 1,356 1,878 1,878 1,877

Passengers 10,958 20,992 18,811 25,383

Subsidy per Flight $ 2,840 $ 1,247 $ 1,867 $ 988

 Weekly Maximum $ 73,827 $ 44,916 $ 67,236 $ 35,573

Subsidy per Passenger $ 351 $ 112 $ 186 $ 7 3

Proposal Summary by City
April 17, 2014 Silver Airways Essential Air Service Proposal Page | 5

The proposed schedule is outlined below. It is subject to change.

ORG DEST DEPT ARR FLT # EQP FREQ STP VIA ORG DEST DEPT ARR FLT # EQP FREQ STP VIA

IAD AOO 12:20 13:57 4057 SF3 X67 1 JST AOO IAD 06:35 07:27 4066 SF3 X67 0

IAD AOO 13:00 13:53 4057 SF3 67 0 AOO IAD 14:25 16:05 9057 SF3 X67 1 JST

IAD AOO 19:50 20:43 4067 SF3 X67 0 AOO IAD 14:30 15:22 9057 SF3 67 0

IAD BKW 08:05 09:26 4051 SF3 X7 0 BKW IAD 09:41 11:34 4051 SF3 X7 1 SHD

IAD BKW 12:50 14:08 4054 SF3 X6 0 BKW IAD 14:28 15:42 4054 SF3 X6 0

IAD CKB 08:15 09:53 4062 SF3 X67 1 MGW CKB IAD 05:30 07:19 4061 SF3 X7 1 MGW

IAD CKB 12:30 13:44 4065 SF3 67 0 CKB IAD 10:13 11:14 4062 SF3 X67 0

IAD CKB 17:21 18:26 4065 SF3 X67 0 CKB IAD 14:30 15:33 4062 SF3 67 0

IAD CKB 21:50 23:32 4064 SF3 X6 1 MGW CKB IAD 18:41 21:01 4065 SF3 X67 1 PKB

IAD DUJ 08:15 09:30 4059 SF3 X67 0 DUJ IAD 05:40 07:27 4066 SF3 X67 1 AOO

IAD DUJ 17:30 19:19 4056 SF3 6 1 JST DUJ IAD 09:50 11:32 4059 SF3 X67 1 JST

IAD DUJ 17:30 19:19 4056 SF3 X6 1 JST DUJ IAD 09:50 11:32 4059 SF3 67 1 JST

IAD DUJ 19:50 21:38 4067 SF3 X67 1 AOO DUJ IAD 19:39 20:54 4056 SF3 X6 0

IAD DUJ 19:50 21:33 4067 SF3 7 1 JST

IAD JST 08:15 10:25 4059 SF3 X67 1 DUJ JST IAD 10:40 11:32 4059 SF3 X67 0

IAD JST 12:20 13:13 4057 SF3 X67 0 JST IAD 10:40 11:32 4059 SF3 67 0

IAD JST 17:30 18:24 4056 SF3 6 0 JST IAD 15:12 16:05 9057 SF3 X67 0

IAD JST 17:30 18:24 4056 SF3 X6 0 JST IAD 18:44 20:54 4056 SF3 X6 1 DUJ

IAD JST 19:50 20:43 4067 SF3 7 0

IAD LWB 12:30 13:40 4084 SF3 Daily 0 LWB IAD 14:10 15:18 4084 SF3 Daily 0

IAD LWB 17:30 18:44 4083 SF3 Daily 0 LWB IAD 19:14 20:19 4083 SF3 Daily 0

IAD MGW 08:15 09:18 4062 SF3 X67 0 MGW IAD 06:20 07:19 4061 SF3 X7 0

IAD MGW 12:25 14:50 4063 SF3 Daily 1 PKB MGW IAD 09:33 11:14 4062 SF3 X67 1 CKB

IAD MGW 21:50 22:57 4064 SF3 X6 0 MGW IAD 15:05 16:04 4063 SF3 Daily 0

IAD PKB 12:25 13:50 4063 SF3 Daily 0 PKB IAD 06:00 07:20 4069 SF3 X7 0

IAD PKB 17:21 19:21 4065 SF3 X67 1 CKB PKB IAD 14:05 16:04 4063 SF3 Daily 1 MGW

IAD PKB 21:55 23:20 4068 SF3 X6 0 PKB IAD 19:41 21:01 4065 SF3 X67 0

IAD SHD 08:05 10:28 4051 SF3 X7 1 BKW SHD IAD 06:30 07:20 4060 SF3 X7 0

IAD SHD 17:00 17:49 4053 SF3 X6 0 SHD IAD 10:46 11:34 4051 SF3 X7 0

IAD SHD 22:05 22:52 4055 SF3 X6 0 SHD IAD 18:14 19:02 4053 SF3 X6 0

Proposed Schedule
April 17, 2014 Silver Airways Essential Air Service Proposal Page | 6

Silver Airways Corporation (IATA: 3M) is a U.S. owned and operated regional airline based in Fort 

Lauderdale, Florida, operating approximately 150 daily scheduled flights throughout the eastern United 

States and The Bahamas. Offering more flights within Florida and to The Bahamas than any other U.S. 

airline, Silver also provides global access to passengers by operating in cooperation with United Airlines 

from Washington (Dulles) and partnering with the world’s largest network carriers through interline eticketing agreements. The Silver fleet is largely comprised of Saab 340B Plus turboprop aircraft, as well 

as Beechcraft 1900D aircraftin the Cleveland network.

Silver is a 2013 two-time award winner, having been recognized in February 2013 as the recipient of Air 

Transport World’s(ATW) 2013 Regional Airline of the Year Award – the first U.S. airline to win regional 

aviation’s top honor since 2008. In October 2013, Silver was named one of the Top 10 “Best U.S. 

Airlines” in the prestigious Condé Nast Traveler’s 26th annual 2013 Readers’ Choice Awards.

Focus Cities Atlanta, Cleveland, Fort Lauderdale, Washington, DC (Dulles)

Code Share Partner United Airlines

Interline E-Ticketing Partners American Airlines, Delta Airlines, JetBlue Airways, United Airlines, 

Bahamasair, and All Nippon Airways

Crew Domiciles 5

Maintenance Bases Gainesville, FL and DuBois, PA 

Line Maintenance Stations Atlanta, Cleveland, Fort Lauderdale, Orlando, Tampa, and Washington 

(Dulles)

Cities Currently Served Total: 38 (8 states in the U.S., Washington, DC and 7 destinations in 

The Bahamas)

Employees 920 total; 770 FTEs

Average Scheduled Departures 147 per day (based on March 2014 schedule) 

Passengers Carried in 2013 805,316 passengers

Total Revenue Passenger Miles 

Flown in 2013

158.3 million revenue passenger miles* 

(*A revenue passenger mile is equal to one fare-paying passenger 

flown one mile)

Total Aircraft in Operating Fleet 33 aircraft

Saab Aircraft 28 Saab 340B Plus turboprops

Beechcraft Aircraft 5 Beech 1900D aircraft (all will be exited/replaced with more Saabs)

Silver Airways Fact Sheet
April 17, 2014 Silver Airways Essential Air Service Proposal Page | 7

Silver Airways currently flies to 38 airports over a diverse network spanning the Eastern United States

and The Bahamas. 

Operations from Washington (Dulles) and Cleveland are operated in cooperation with United Airlines. 

Operations from Atlanta, within Florida, and to The Bahamas are operated under the Silver Airways 

brand. All flights within this network are available for interline e-ticketing with our partner carriers, 

which include United Airlines, JetBlue Airways, Delta Airlines, and American Airlines. Additionally, all 

flights in Florida and The Bahamas are sold via a code share arrangement with United Airlines.

Although the company has filed a termination notice with the Department for the Cleveland network, it 

seeks in this application to maintain service to DuBois and Parkersburg to Dulles, continuing as part of 

the United Airlines network. The company has also filed a termination notice on most of the Atlanta 

network. These changes will allow Silver to focus our resources on the remaining Washington and 

Florida networks to ensure operational reliability and financial success.

Silver Airways Route Map
April 17, 2014 Silver Airways Essential Air Service Proposal for Washington, DC (Dulles) Page | 8

There are over 300 scheduled departures per day from Washington Dulles International Airport for July 2014 to 87 nonstop destinations 

throughout North America. United and its partners operate nearly 250 of those departures and serve 82 destinations nonstop.

Washington (Dulles) Route Map: North America
April 17, 2014 Silver Airways Essential Air Service Proposal for Washington, DC (Dulles) Page | 9

In July 2014, Washington Dulles International Airport has 52 scheduled departures to 40 destinations beyond North America. United and its 

partners have scheduled over 20 departures per day to 25 international destinations

Washington (Dulles) Route Map: Beyond North America
April 17, 2014 Silver Airways Essential Air Service Proposal for Washington, DC (Dulles) Page | 10

Source: Saab Aircraft Leasing.

Saab 340B Plus FAR Aircraft Specifications
April 17, 2014 Silver Airways Essential Air Service Proposal for Washington, DC (Dulles) Page | 11

The revenue and expenses associated to each city is calculated as follows:

 Clarksburg/Fairmont (CKB), Morgantown (MGW), and Parkersburg/Marietta (PKB)

o Clarksburg/Fairmont (CKB) service consists of 36 flights operating to/from IAD (18 each way) per week. 14 flights will be 

operated nonstop to/from IAD. 12 flights per week are operated CKB-MGW as a tag flight continuing to/from IAD. 10 flights per

week are operated as wraps, 5 via MGW and 5 via PKB. The wrap flights provide nonstop service to/from IAD in one direction 

and one-stop service to/from IAD in the other direction. The nonstop flights and 12 CKB-MGW flights are allocated 100% to CKB. 

The 5 CKB-MGW and 5 CKB-PKB wrap flights are allocated 50% to CKB.

o Morgantown (MGW) service consists of 36 flights operatings to/from IAD (18 each way) per week. 12 flights per week are 

operated as nonstop to/from IAD with a tag flight to CKB. 5 flights per week are operated as a wrap with CKB and 7 flights per 

week wrap with PKB, providing nonstop service in one direction and one-stop service in the other driection. The nonstop flights 

to/from IAD are allocated 100% to MGW, while the 5 CKB-MGW and 7 MGW-PKB wrap flights are allocated 50% to MGW.

o Parkersburg/Marietta (PKB) service consists of 36 flights operating to/from IAD (18 each way) per week. 24 flights are operated 

nonstop to/from IAD. 5 flights are wrapped via CKB-PKB and 7 flights are wrapped via MGW-PKB, creating nonstop flights in one 

direction and one-stop flights in the other. 100% of the nonstop segments and 50% of the wrap segments are allocated to PKB.

 Altoona (AOO), DuBois (DUJ), and Johnstown (JST)

o Altoona (AOO) service consists of 24 flights operating to/from IAD (12 each way) per week. One nonstop to/from IAD operating 

14 times per week and one tag flight via JST operating 10 times per week. 100% of the revenue and expenses of each of these is 

associated to AOO. The AOO-DUJ segment is a tag flight associated 100% to DUJ.

o DuBois (DUJ) service consists of 36 flights operating to/from IAD (18 each way) per week. One tag flight operates via AOO 10

times per week and two flights wrapped with JST which 11 flights nonstop to/from IAD per week and 15 flights per week which 

stop in JST. 100% of the AOO-DUJ tag and DUJ-IAD flights are associated to DUJ. 50% of the DUJ-JST segment is associated to 

DUJ.

o Johnstown (JST) service consists of 36 flights operating to/from IAD (18 each way) per week. 25 weekly flights operate nonstop 

to/from IAD and continue as tags or wraps to AOO and/or DUJ. JST’s revenue and expenses are calculated as 100% of the 

nonstop IAD-JST segments, 50% of the DUJ wraps, and 0% of the AOO tags.

 Beckley (BKW), Staunton (SHD), and Greenbrier/White Sulphur Springs (LWB)

o Beckley (BKW) service consists of 24 flights operating to/from IAD (12 each way) per week. 12 flights are operated as nonstop 

flights, while 12 flights are wrapped with SHD creating 6 nonstop flights from IAD and 6 flights to IAD which stop in SHD. BKW is 

allocated 100% of the 18 nonstop flights to/from IAD and 50% of the BKW-SHD segment .

o Staunton (SHD) service consists of 36 flights operating to/from IAD (18 each way) per week. 24 flights are operated as nonstop 

flights, while 12 are wrapped with BKW creating 6 nonstop flights to IAD and 6 flights from IAD which stop at BKW. SHD is 

allocated 100% of the 30 nonstop flights to/from IAD and 50% of the BKW-SHD segment. 

o Greenbrier/White Sulphur Springs (LWB) serivce consists of 14 nontop flights to IAD per week May 1 through October 31 and 12 

flights nonstop to IAD November 1 though April 30. LWB is allocated 100% of all IAD-LWB flights.

Appendix: Calculation of Subsidy Requirement by Airport from Segments
April 17, 2014 Silver Airways Essential Air Service Proposal for Washington, DC (Dulles) Page | 12

CKB-IAD CKB-MGW CKB-PKB IAD-MGW IAD-PKB MGW-PKB CKB MGW PKB

Information

Equipment Type SF3 SF3 SF3 SF3 SF3 SF3 SF3 SF3 SF3

Seats per Departure 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4

Departures per week 1 4 1 7 5 2 4 2 4 7 3 6 4 8 3 6

Departures per year 730 887 261 1,252 1,252 365 1,878 2,504 1,878

Completed Departures per year (97%) 708 860 253 1,214 1,214 354 1,822 2,429 1,822

Departures to/from IAD per week* 3 6 3 6 3 6

Departures to/from IAD per year* 1,878 1,878 1,878

Completed Departures to/from IAD* (97%) 1,822 1,822 1,822

Stage Length (Cities: Average) 150 2 9 6 5 140 215 8 4 7 5 104 156

Subsidy Calculation

Passengers** 12,138 7,791 2,597 20,992 18,811 2,597 12,138 20,992 18,811

Average Fare (including ancillary fees) $ 118.61 $ 47.31 $ 47.31 $ 121.49 $ 138.16 $ 51.91 $ 149.58 $ 127.28 $ 145.01

Revenue $ 1,439,675 $ 368,624 $ 122,875 $ 2,550,340 $ 2,598,933 $ 134,821 $ 1,815,526 $ 2,671,960 $ 2,727,781

Variable Costs $ 1,650,197 $ 1,152,325 $ 414,734 $ 2,826,957 $ 3,313,214 $ 616,719 $ 2,840,429 $ 3,304,776 $ 3,828,940

Aircraft Ownership & Overhead $ 806,996 $ 249,585 $ 138,013 $ 1,314,293 $ 1,919,371 $ 238,996 $ 1,088,884 $ 1,470,495 $ 2,107,875

Total Expenses $ 2,457,193 $ 1,401,910 $ 552,747 $ 4,141,250 $ 5,232,584 $ 855,715 $ 3,929,313 $ 4,775,271 $ 5,936,816

Operating Income (Loss) $ (1,017,518) $ (1,033,286) $ (429,873) $ (1,590,909) $ (2,633,652) $ (720,894) $ (2,113,787) $ (2,103,311) $ (3,209,035)

5% Profit Margin (on Costs) $ 122,860 $ 70,096 $ 27,637 $ 207,062 $ 261,629 $ 42,786 $ 196,466 $ 238,764 $ 296,841

Subsidy Requirement $ 1,140,378 $ 1,103,382 $ 457,510 $ 1,797,972 $ 2,895,281 $ 763,680 $ 2,310,252 $ 2,342,074 $ 3,505,876

Statistics

Trip Time (min, Cities: Average) 6 5 2 8 4 0 6 5 8 2 4 5 4 0 3 7 6 2

Scheduled Block Hours 796 421 174 1,362 1,705 274 1,242 1,561 1,929

Completed Block Hours (97%) 772 409 169 1,321 1,654 266 1,205 1,514 1,871

Revenue Passengers Miles 1,820,628 225,941 168,807 2,938,940 4,044,268 218,150 904,321 2,172,938 2,934,691

Available Seat Miles 3,723,000 874,582 576,810 5,959,520 9,152,120 1,042,440 4,757,372 8,812,473 9,961,745

Load Factor 50% 27% 30% 51% 46% 22% 20% 34% 30%

Silver Effective Rates per Unit:

Cost per Departure (Cities: To/from IAD) $ 3,470 $ 1,629 $ 2,183 $ 3,410 $ 4,309 $ 2,417 $ 2,157 $ 2,621 $ 3,259

Cost per Passenger** $ 202 $ 180 $ 213 $ 197 $ 278 $ 329 $ 324 $ 227 $ 316

Cost per Block Hour $ 3,183 $ 3,431 $ 3,275 $ 3,135 $ 3,164 $ 3,223 $ 3,261 $ 3,154 $ 3,173

Effective Subsidy Rates per Unit:

Subsidy per Departure to/from IAD $ 1,268 $ 1,286 $ 1,925

Subsidy per Passenger** $ 190 $ 112 $ 186

Passengers** per Departure* (Cities: to IAD) 17.1 9.1 10.3 17.3 15.5 7.3 6.7 11.5 10.3

Passengers** per Day Each Way (313 days) 19.4 12.4 4.1 33.5 30.0 4.1 19.4 33.5 30.0

SEGMENTS CITIES

 ** Note: Passengers in Cities columns refer to passengers between IAD and that city. Some passengers must fly on more than one segment to reach their destination.

 * Note: Roundtrip flights per week and departures per week are not equal due to three-segment "wrap" flights reducing the number of flights needed to achieve the departures.

Appendix: Clarksburg/Fairmont, Morgantown, and Parkersburg/Marietta
April 17, 2014 Silver Airways Essential Air Service Proposal for Washington, DC (Dulles) Page | 13

AOO-DUJ AOO-IAD AOO-JST DUJ-IAD DUJ-JST IAD-JST AOO DUJ JST

Information

Equipment Type SF3 SF3 SF3 SF3 SF3 SF3 SF3 SF3 SF3

Seats per Departure 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4 3 4

Departures per week 1 0 1 4 1 0 1 1 1 5 2 5 3 4 5 0 5 0

Departures per year 522 730 522 574 781 1,303 1,774 2,607 2,606

Completed Departures per year (97%) 506 708 506 557 758 1,264 1,721 2,529 2,528

Departures to/from IAD per week* 2 4 3 6 3 6

Departures to/from IAD per year* 1,251 1,878 1,878

Completed Departures to/from IAD* (97%) 1,214 1,822 1,822

Stage Length (Cities: Average) 6 8 104 2 7 172 6 0 119 7 2 8 4 9 5

Subsidy Requirement

Passengers** 3,346 7,913 3,263 7,510 9,558 16,302 7,830 12,045 12,533

Average Fare (including ancillary fees) $ 83.39 $ 128.41 $ 60.47 $ 127.21 $ 69.99 $ 122.38 $ 154.98 $ 130.25 $ 185.88

Revenue $ 279,033 $ 1,016,193 $ 197,277 $ 955,358 $ 668,985 $ 1,995,078 $ 1,213,470 $ 1,568,883 $ 2,329,570

Variable Costs $ 713,434 $ 1,317,708 $ 613,894 $ 1,332,365 $ 1,101,962 $ 2,483,990 $ 1,934,600 $ 2,613,212 $ 3,015,540

Aircraft Ownership & Overhead $ 266,824 $ 569,531 $ 131,656 $ 712,878 $ 364,800 $ 1,144,404 $ 701,187 $ 1,162,103 $ 1,326,804

Total Expenses $ 980,258 $ 1,887,239 $ 745,550 $ 2,045,243 $ 1,466,762 $ 3,628,394 $ 2,635,787 $ 3,775,315 $ 4,342,345

Operating Income (Loss) $ (701,226) $ (871,046) $ (548,273) $ (1,089,885) $ (797,777) $ (1,633,316) $ (1,422,317) $ (2,206,432) $ (2,012,774)

5% Profit Margin (on Costs) $ 49,013 $ 94,362 $ 37,278 $ 102,262 $ 73,338 $ 181,420 $ 131,789 $ 188,766 $ 217,117

Subsidy Requirement $ 750,239 $ 965,408 $ 585,550 $ 1,192,147 $ 871,115 $ 1,814,736 $ 1,554,106 $ 2,395,197 $ 2,229,892

Statistics

Trip Time (min, Cities: Average) 3 2 4 9 2 4 6 9 3 2 5 2 2 7 2 6 3 1

Scheduled Block Hours 278 591 211 660 417 1,134 802 1,147 1,342

Completed Block Hours (97%) 270 573 205 640 404 1,100 778 1,112 1,302

Revenue Passengers Miles 227,524 822,998 88,088 1,291,717 573,490 1,939,935 563,204 1,011,184 1,191,124

Available Seat Miles 1,206,864 2,581,280 479,196 3,356,752 1,593,240 5,271,938 4,338,469 7,440,967 8,421,013

Load Factor 19% 33% 19% 40% 37% 38% 19% 19% 20%

Silver Effective Rates per Unit:

Cost per Departure (Cities: To/from IAD) $ 1,936 $ 2,665 $ 1,472 $ 3,673 $ 1,936 $ 2,871 $ 2,171 $ 2,072 $ 2,384

Cost per Passenger** $ 293 $ 238 $ 229 $ 272 $ 153 $ 223 $ 337 $ 313 $ 346

Cost per Block Hour $ 3,630 $ 3,293 $ 3,644 $ 3,194 $ 3,630 $ 3,300 $ 3,389 $ 3,394 $ 3,336

Effective Subsidy Rates per Unit:

Subsidy per Departure to/from IAD $ 1,280 $ 1,315 $ 1,224

Subsidy per Passenger** $ 198 $ 199 $ 178

Passengers** per Departure* (Cities: to IAD) 6.6 11.2 6.4 13.5 12.6 12.9 6.5 6.6 6.9

Passengers** per Day Each Way (313 days) 5.3 12.6 5.2 12.0 15.3 26.0 12.5 19.2 20.0

SEGMENTS CITIES

 ** Note: Passengers in Cities columns refer to passengers between IAD and that city. Some passengers must fly on more than one segment to reach their destination.

 * Note: Roundtrip flights per week and departures per week are not equal due to three-segment "wrap" flights reducing the number of flights needed to achieve the departures.

Appendix: Altoona, DuBois, and Johnstown
April 17, 2014 Silver Airways Essential Air Service Proposal for Washington, DC (Dulles) Page | 14

CITY

BKW-IAD BKW-SHD IAD-SHD BKW SHD LWB

Information

Equipment Type SF3 SF3 SF3 SF3 SF3 SF3

Seats per Departure 3 4 3 4 3 4 3 4 3 4 3 4

Departures per week 1 8 6 3 0 2 4 3 6 2 6

Departures per year 939 313 1,565 1,252 1,878 1,356

Completed Departures per year (97%) 911 304 1,518 1,214 1,822 1,315

Departures to/from IAD per week* 2 4 3 6 2 6

Departures to/from IAD per year* 1,251 1,877 1,356

Completed Departures to/from IAD* (97%) 1,214 1,821 1,315

Stage Length (Cities: Average) 214 126 9 1 176 8 6 177

Subsidy Requirement

Passengers** 7,277 2,431 25,383 7,277 25,383 10,958

Average Fare (including ancillary fees) $ 126.36 $ 43.31 $ 104.36 $ 112.49 $ 112.49 $ 118.11

Revenue $ 919,540 $ 105,278 $ 2,649,029 $ 818,575 $ 2,855,273 $ 1,294,336

Variable Costs $ 2,340,382 $ 557,126 $ 2,947,169 $ 2,618,945 $ 3,225,732 $ 3,165,631

Aircraft Ownership & Overhead $ 1,418,157 $ 282,026 $ 1,119,116 $ 1,559,170 $ 1,260,129 $ 1,733,333

Total Expenses $ 3,758,538 $ 839,152 $ 4,066,285 $ 4,178,115 $ 4,485,861 $ 4,898,964

Operating Income (Loss) $ (2,838,998) $ (733,874) $ (1,417,255) $ (3,359,539) $ (1,630,588) $ (3,604,628)

5% Profit Margin (on Costs) $ 187,927 $ 41,958 $ 203,314 $ 208,906 $ 224,293 $ 244,948

Subsidy Requirement $ 3,026,925 $ 775,831 $ 1,620,570 $ 3,568,445 $ 1,854,881 $ 3,849,576

Statistics

Trip Time (min, Cities: Average) 7 8 4 8 5 0 6 4 4 6 7 1

Scheduled Block Hours 1,215 253 1,307 1,342 1,433 1,607

Completed Block Hours (97%) 1,179 245 1,267 1,302 1,390 1,559

Revenue Passengers Miles 1,557,265 306,257 2,309,826 1,283,146 2,192,374 1,939,637

Available Seat Miles 6,832,164 1,340,892 4,842,110 7,506,036 5,515,073 8,158,689

Load Factor 23% 24% 49% 18% 41% 25%

Silver Effective Rates per Unit:

Cost per Departure (Cities: To/from IAD) $ 4,126 $ 2,764 $ 2,679 $ 3,442 $ 2,464 $ 3,725

Cost per Passenger** $ 516 $ 345 $ 160 $ 574 $ 177 $ 447

Cost per Block Hour $ 3,188 $ 3,420 $ 3,208 $ 3,210 $ 3,227 $ 3,143

Effective Subsidy Rates per Unit:

Subsidy per Departure to/from IAD $ 2,940 $ 1,019 $ 2,927

Subsidy per Passenger** $ 490 $ 7 3 $ 351

Passengers** per Departure* (Cities: to IAD) 8.0 8.0 16.7 6.0 13.9 8.3

Passengers** per Day Each Way (313 days) 11.6 3.9 40.5 11.6 40.5 17.5

SEGMENTS CITIES

 * Note: Roundtrip flights per week and departures per week are not equal due to three-segment "wrap" flights reducing the number of flights needed 

to achieve the departures. LWB service will be provided twelve times weekly November - April and fourteen times weekly May - October.

Appendix: Beckley, Staunton, and Greenbrier/White Sulphur Springs