BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

________________________________________________ ____________ 

)

Essential Air Service at )

)

BECKLEY, WEST VIRGINIA ) OST-1997-2761

CLARKSBURG/FAIRMONT, WEST VIRGINIA ) OST-2005-20736

MORGANTOWN, WEST VIRGINIA ) OST-2005-20735

)

Under 49 U.S.C. §41731 et seq. )

________________________________________________ ) 

SILVER AIRWAYS PROPOSAL TO PROVIDE SUBSIDIZED AIR SERVICE

TO THE COMMUNITIES OF BECKLEY, CLARKSBURG/FAIRMONT 

AND MORGANTOWN, WEST VIRGINIA

Correspondence with regard to this document should be addressed to:

Mickey Bowman

Vice President Essential Air Service

Silver Airways

1100 Lee Wagener Blvd, Suite 201

Ft. Lauderdale, FL 33315

Telephone: 954-302-5929

Fax: 270-689-2180

E-Mail: mbowman@gosilver.com

Silver Airways cordially submits its proposal to provide subsidized air service to the communities of Beckley, 

Clarksburg/Fairmont and Morgantown, West Virginia to the United Airlines hub at Washington’s Dulles International 

Airport. Silver Airways proposal is for a two year period from start of service.

Silver Airways proposes to operate flights, under its existing United Airlines codeshare. At the time of this filing, a 

definitive agreement to extend Silver Airways existing codeshare to these routes has not been consummated therefore this 

bid is contingent upon that agreement being finalized. Additionally, this is an “All or Nothing” bid with the award of all 

three cities required. Negotiations between Silver Airways and United Airlines are ongoing and we believe resolution 

should be reached in the next few weeks, well before community comments will be due back to the DOT. 

Dulles International Airport is a major United Airlines’ hub with nearly 300 online daily departures to over 100 cities 

worldwide. Other carriers boost the Dulles daily departure average to nearly 390 flights. The bank structure at Dulles is 

designed to maximize connections and enable a seamless travel experience. Via the United Airlines codeshare passengers 

will continue to enjoy through ticketing and pricing, online and interline baggage connectivity and exposure throughout 

the Global Distribution Portals. Additionally passengers would continue to enjoy conveniences such as advanced seat 

selection and participation in United Airlines’ Frequent Traveler Program.

In compliance with Public Law 100-223, Silver Airways proposes to operate these flights using Saab 340 B+ turboprops 

that are pressurized and accommodate 34 passengers. The 340 B+ features additional amenities such as stand up 

headroom, an active noise cancellation system, and an onboard lavatory. Additionally all Silver Airways flights will 

operate under full Part 121 regulations and each flight will have a Flight Attendant onboard.
One of the hallmarks of the Silver Airways operation is our ability to provide safe and reliable transportation. Toward this 

end, Silver Airways intends to utilize its regional maintenance base in DuBois, Pennsylvania. This base, established in 

the fall of 2008, is staffed by some of our airline’s most seasoned technicians. Additionally Silver Airways plans to avail 

itself of a spare aircraft that will be positioned in Dulles as part of this operation. With this spare aircraft we have great 

flexibility in responding to any operational challenges and can assure these communities receive the level of operational 

performance they desire.
On-line United Domestic Destinations Available Via the Dulles Hub:

Allentown, PA; Albuquerque, NM; Albany, NY; Atlanta, GA; Austin, TX; Hartford, CT; Binghamton, NY; Beckley, WV

Nashville, TN; Boston, MA; Burlington, VT; Buffalo, NY; Columbia, SC; Charlottesville VA; Charleston, SC; 

Clarksburg, WV; Cleveland, OH; Charlotte, NC; Columbus, OH; Colorado Springs, CO; Charleston, WV; Cincinnati, 

OH; Dayton, OH; Denver, CO; Dallas, TX; Detroit, MI; Newark, NJ; Greensboro, NC; Greenville, SC; Honolulu, HI; 

White Plains, NY; Huntsville, AL; Houston, TX; Indianapolis, IN; Jacksonville, FL; New York JFK, NY; Las Vegas, NV; 

Los Angeles, CA; New York LaGuardia, NY; Kansas City, MO; Orlando, FL; Harrisburg, PA; Morgantown, WV; 

Manchester, NH; Miami, FL; Minneapolis, MN; New Orleans, LA; Oklahoma City, OK; Chicago, IL; Norfolk, VA; 

Portland, WA; Philadelphia, PA; Phoenix, AZ; Pittsburgh, PA; Pensacola, FL; Providence, RI; Portland, ME; Raleigh 

Durham, NC; Richmond, VA; Roanoke, VA; Rochester, NY; San Diego, CA; San Antonio, TX; Savannah, GA; State 

College, PA; Louisville, KY; Seattle, WA; San Francisco, CA; Shenandoah Valley, VA; San Juan, PR; Salt Lake City, 

UT; Sacramento, CA; St Louis, MO; Syracuse, NY; Tampa, FL; Tulsa, OK, Knoxville, TN.

On-Line United and Star Alliance International Destinations Available Via the Dulles Hub:

Accra, Ghana; Amsterdam, Netherlands; Aruba, Aruba; Brussels, Belgium; Paris, France; Cancun, Mexico; Moscow, 

Russia; Dublin, Ireland; Dubai, Arab Emirates; Rome, Italy; Frankfurt, Germany; Grand Cayman, Cayman Islands; Sao 

Paulo, Brazil; Geneva, Switzerland; Kuwait City, Kuwait; London, England; Madrid, Spain; Manchester, England; 

Montego Bay, Jamaica; Mexico City, Mexico; Munich, Germany; Tokyo, Japan; Beijing, China; Punta Cana, Dominican 

Republic; St Thomas, Virgin Islands; St Croix, Virgin Islands; Ottawa, Canada, Montreal, Canada, Toronto, Canada, 

Zurich, Switzerland.
Service Option 1

36 Weekly frequencies between Clarksburg/Fairmont, Morgantown, and Dulles International Airport

Silver Airways proposes to operate these flights under its established codeshare relationship with United Airlines. The 

timing of these flights would be optimized for connections to and from the United Airlines connecting banks in Dulles. 

This service constitutes three weekday roundtrips operating in a “round robin” fashion. Three total roundtrips would be 

operated over the weekend period as well

Silver Airways

Sample Flight Schedule

Service Option 1

FROM TO DEP ARR FLT EQP FREQ STOP

STA STA TIME TIME NUM

Clarksburg Dulles 5:45 am 7:35 am 4023 SF3 X7 1

Clarksburg Dulles 9:52 am 11:39 am 4024 SF3 X6 1

Clarksburg Dulles 2:41 pm 3:48 pm 4025 SF3 X2 0

Dulles Clarksburg 8:21 am 9:34 am 4024 SF3 X6 0

Dulles Clarksburg 12:17 pm 2:17 pm 4025 SF3 X2 1

Dulles Clarksburg 9:55 pm 11:50 pm 4026 SF3 X6 1

----------------------------------------------------------------------------------------------------------------------

Morgantown Dulles 6:40 am 7:35 am 4023 SF3 X7 0

Morgantown Dulles 10:39 am 11:39 am 4024 SF3 X6 0

Morgantown Dulles 1:53 pm 3:48 pm 4025 SF3 X2 1

Dulles Morgantown 8:21 am 10:21 am 4024 SF3 X6 1

Dulles Morgantown 12:17 pm 1:29 pm 4025 SF3 X2 0

Dulles Morgantown 9:55 pm 11:05 pm 4026 SF3 X6 0

(Note: This Schedule is for illustrative purposes and may not reflect the final published product)
Clarksburg and Morgantown, West Virginia Service Option 1 (Two Year Contract)

36 Weekly Frequencies to the United Hub at Dulles International Airport

CKB-IAD CKB-MGW IAD-MGW Total

Stats & Assumptions

Aircraft Type SF3 SF3 SF3 SF3

Completion % 98% 98% 98% 98%

Departures 613 1226 1226 

3,064 

Block Hours 714.63 582.41 1312.69 

2,610 

Enplaned Passengers 11,985 0 20,500 

32,485 

OnBoard Passengers 

9,625 

 

19,266 

 

19,266 

 

48,157 

Load Factor 46% 46% 46% 46%

Avg Fare $95.46 $0.00 $96.18 $95.91

Onboard Average Fare $99.90 $19.19 $92.63 $64.70

A/C Miles 

92,488 

 

35,553 

 

171,637 

 

299,678 

Segment Mileage 

151 

 

29 

 

140 

 

98 

RPMs (000) 

1,453 

 

559 

 

2,697 

 

4,709 

ASMs (000) 

3,145 

 

1,209 

 

5,836 

 

10,189 

Pax Ticket Revenue $961,600 $369,652 $1,784,526 $3,115,778 

Oper. Expenses

Fuel $423,409 $364,341 $779,223 $1,566,973 

Crew $199,148 $162,303 $365,812 $727,263 

Maintenance $485,831 $395,944 $892,412 $1,774,187 

Station Turns $241,794 $299,130 $452,836 $993,761 

Distribution $114,656 $229,495 $229,495 $573,646 

A/C Ownership $104,757 $40,270 $194,407 $339,434 

Promotion $12,000 $0 $12,000 $24,000 

Fixed Overhead $80,183 $30,824 $148,803 $259,810 

Total $1,661,779 $1,522,307 $3,074,989 $6,259,074 

Operating Loss $700,179 $1,152,655 $1,290,462 $3,143,296 

5% Profit Margin on 

Cost

$83,089 $76,115 $153,749 $312,954 

EAS Subsidy Required $783,268 $1,228,770 $1,444,212 $3,456,250 
Service Option 1

26 Weekly frequencies between Beckley and Dulles International Airport

Silver Airways proposes to operate these flights under its established codeshare relationship with United Airlines. The 

timing of these flights would be optimized for connections to and from the United Airlines connecting banks in Dulles. 

This service constitutes two weekday roundtrips, one of which would operate on a one-stop basis. (The city over which 

the single one-stop flight had not been determined at the time of this submission so an assumption was made to use a point 

roughly 91 miles from IAD and 126 miles from BKW resulting in a circuity of less than 2%) Three total roundtrips 

would be operated over the weekend period. While we realize this weekend frequency is one roundtrip above the required

service solicitation, we believe that this additional trip would be welcomed by the community, particularly in light of the 

announced opening of the Summit Bechtel Family National Scout Reserve in nearby Fayette County. Boy Scouts of 

America will host its jamboree there this summer where some 50,000 scouts and another 200,000 visitors are also 

expected to attend. This weekend pattern will allow two trips inbound on Sundays to begin an extended stay and two trips 

outbound on Saturdays to accommodate outflow. Silver Airways understands that the Department may not see fit to 

subsidize this additional service and would be amenable to a prorata adjustment to its requested compensation should that 

be the case.

Silver Airways

Sample Flight Schedule

Service Option 1

FROM TO DEP ARR FLT EQP FREQ STOP

STA STA TIME TIME NUM

Beckley Dulles 5:30 am 7:30 am 4014 SF3 X7 1

Beckley Dulles 4:59 pm 6:14 pm 4015 SF3 Daily 0

Dulles Beckley 3:11 pm 4:39 pm 4015 SF3 Daily 0

Dulles Beckley 9:59 pm 11:59 pm 4017 SF3 X6 1

----------------------------------------------------------------------------------------------------------------------

(Note: This Schedule is for illustrative purposes and may not reflect the final published product)
Beckley, West Virginia Service Option 1 (Two Year Contract)

26 Weekly Frequencies to the United Hub at Dulles International Airport

(14 Non-stop, 12 One-stop)

BKW-IAD BKW-XXX BKW TTL

Stats & Assumptions

Aircraft Type SF3 SF3 SF3

Completion % 98% 98% 98%

Departures 

715 

 

613 

 

1,329 

Block Hours 

971.75 

 

475.45 

 

1,447 

Passengers 

3,181 

 

2,728 

 

5,909 

Load Factor 13% 13% 13.1%

Avg Fare $103.43 $103.43 $103.43

A/C Miles 

153,811 

 

77,298 

 

231,109 

Segment Mileage 

215 

 

126 

 

174 

RPMs (000) 

683.936 

 

343.716 

 

1,028 

ASMs (000) 

5,229.574 

 

2,628.148 

 

7,858

Pax Ticket Revenue $329,021 $282,147 $611,168

Operating Expenses

Fuel $574,037 $291,642 $865,679 

Crew $270,800 $132,494 $403,294 

Maintenance $660,629 $323,225 $983,853 

Station Turns $277,390 $171,566 $448,955 

Distribution $37,893 $32,495 $70,387 

A/C Ownership $126,506 $63,576 $190,083 

Promotion $12,000 $0 $12,000 

Fixed Overhead $96,831 $48,663 $145,494 

Total $2,056,086 $1,063,660 $3,119,746 

Operating Loss $1,649,333 $859,244 $2,508,578 

5% Profit Margin on Cost $102,804 $53,183 $155,987 

EAS Subsidy Required $1,752,138 $912,427 $2,664,565 
In conclusion, Silver Airways believes that this proposal will provide these West Virginia communities with superior air

service options. We feel the passengers will benefit from seamless, codeshare service to the United Airlines hub in 

Washington Dulles International Airport. With a renewed focus on schedule reliability, Silver Airways hopes to grow 

these markets. Silver Airways has proven itself as a dependable Essential Air Service provider and brings a commitment

to work with these communities to address their travel needs to the relationship. Integrity of service that has been a 

hallmark of the Silver Airways operation and we look forward to extending our brand into the mid-Atlantic region.

 

Respectfully Submitted: April 3, 2012

______________________

Mickey Bowman

Vice President Essential Air Service

Silver Airways