ROBERTB. KARNS

105 Main Street

(701) 278-3747

E-Mail: bob@)sovereignairinc.co

VP GM

~obereign ~ir 3Jnt.

BELCOURT, ND S8316

January 6} 2012

Dennis J. Devany, Chief

EAS& Domestic Analysis Division} X-53

Office of Aviation Analysis

Department of Transportation

1200 New Jersey Ave. SE

Washington} DC 20590

Re: Proposal to Provide Essential Air Service at:

BAR HARBOR,MAINE DOCKET-DOT-OST-2011-0185

PRESQUEISLE/HOULTON, MAINE DOCKET-DOT-OST-2000-8012

PLATTSBURGH,NEW YORK DOCKET-DOT-OST-2003-14783

Dear Mr. DeVany:

COMMUNITY AIRLINE

DEVELOPMENT

The purpose ofthis proposal is to not only provide the basic air service required by Order} 2011-11-26

but to ensure that each community maintains the continuous airline operations they require without

EA5funding should Congressional funding to the EASprogram be reduced or eliminated.

Sovereign Air is uniquely staffed and equipped and can be operational in time to provide the airline

service you demand.

Jil;;7JJ,~

ROBERTB. KARNS "..• - --- .. -

VP GM

Sovereign Air Inc.

MINNEAPOLIS

5701 KENTUCKY AVE. N

Suite 1S3

MINNEAPOLIS, MN 55428-3302

(763) 535-4198

PRINTED ON RECYCLEDPAPER
Sovereign Air Inc -1/6/2012 JET DOT-OST-2000-8012 PRESQUE/HOULTON-MAIN

Proposal # 1 JET PQI TO BOSNON STOP

Round-Trips Per Week each leg non stop

Total Departure Per Year 97%

Aircraft Dornier 328

Available Seats Per Departure

Totle Seats Year

Block Time

Minutes Per Departure

Total Block Time Per Year

Revenue

Passengers

Average Fare

Passenger Revenue

RPMS

Passengers

Stage Length

ASMs

Scheduled Departures

Completed Departures

Stage Length

Seats Available

Revenue

Outher Revenue @ .03 %of pax rev.

Total Revenue

Direct Operating Expenses

Indirect Expenses

Reservation and Marketing

Total Expenses

Blk Hrs $3,300

Per Pas $6

Operating Loss

5% Profit

Subsidy Required

Load Factor

NOTE: This proposal covers the total expense required to initiate scheduled air serice, purchase the aircraft

and be debt free as well as not requiring EASfunding after 2 years operation. Aircraft commited to

PQI-BOSservice only. Should be operational 90 days after funding which comes with selecting

Soveretgn Air. Sovereign Air will have passenger, (ticketing, baggage and cargo) agreements with

most magor aircarries and discount carries as well. With increasing ridership more scheduled flights

may be added as needed at a greatly reduced operating cost reducing ticket pricing.

20

2,018

30

60528

50

1,681

29,511

$130

$3,836,430

29,511

205

6,049,755

2080

2018

205

30

12,821,848

$3,836,430

$115,093

$3,951,523

$5,548,400

$794,678

$177.066

$6,520,144

$2,568,621

$326,007

$2,894,628

0.49
Sovereign Air Inc -1/6/2012 (JET) DOT-OST-2000-8012 PRESQUE/HOULTON-MAIN

DOT-OST-2011-0185 BAR HARBOR-MAIN

Proposal # 2 JETPQITO BOS1 STOPBHB

PQI 21 RTPer Wk -BHB 21 RT+28 RTFOR90 DAYS

Total Departure Per Year 97%

Aircraft Dorier 328 jet

Available Seats Per Departure

Totle Seats Year

Block Time

Minutes Per Departure

Total Block Time Per Year

PQI-BHB=20MIN BHB-BOS=30 MIN

Revenue

Passengers

Average Fare

Passenger Revenue

RPMS

Passengers

Stage Length

ASMs

Scheduled Departures

Completed Departures

Stage Length

Seats Available

Revenue

Outher Revenue @ .03 %of pax rev.

Total Revenue

Direct Operating Expenses

Indirect Expenses

Reservation and Marketing

Total Expenses

Blk Hrs $4,800

Per Pas $6

Operating Loss

5% Profit

Subsidy Required

Load Factor

NOTE: This proposal covers the total expense required to initiate scheduled air serice, purchase the aircraft

and be debt free as well as not requiring EASfunding after 2 years operation. Aircraft commited to

PQI-BHB-BOSservice only. Should be operational 90 days after funding which comes with selecting

Soveretgn Air. Sovereign Air will have passenger, (ticketing, baggage and cargo) agreements with

most magor aircarries and discount carries as well. With increasing ridership more scheduled flights

may be added as needed at a greatly reduced operating cost reducing ticket pricing.

21 &28

2,298

30

68940

1,805

54,000

$110

$5,940,000

54,000

205

11,070,000

1494

1449

205

30

9,209,539

$5,940,000

$178,200

$6,118,200

$8,664,000

$1,358,009

$324,000

$10,346,009

$4,227,809

$517,300

$4,745,109

0.78
Sovereign Air Inc -1/6/12 (TURBO-PROP) DOT-OST-2000-8012 PRESQUE/HOULTON-MAl N

Proposal # 3 TURBOPROP PQITO BOSNON STOP

Round-Trips Per Week each leg non stop

Total Departure Per Year 97%

Aircraft Jetatream 41

Available Seats Per Departure

Totle Seats Year

Block Time

Minutes Per Departure

Total Block Time Per Year

Revenue

Passengers

Average Fare

Passenger Revenue

RPMS

Passengers

Stage Length

ASMs

Scheduled Departures

Completed Departures

Stage Length

Seats Available

Revenue

Outher Revenue @ .03 %of pax rev.

Total Revenue

Direct Operating Expenses

Indirect Expenses

Reservation and Marketing

Total Expenses

Blk Hrs

Per Pas

Operating Loss

5% Profit

Subsidy Required

Load Factor

20

2,018

30

60540

60

2,018

29,511

$130

$3,836,430

29511

205

6,049,755

2080

2018

205

30

12,821,848

$3,836,430

$115,093

$3,951,523

$2,700 $5,448,600

$794,687

$6 $177.066

$6,420,353

$2,468,830

$321,018

$2,789,848

0.49

NOTE: This proposal covers the total expense required to initiate scheduled air serice, purchase the aircraft

and be debt free as well as not requiring EASfunding after 2 years operation. Aircraft commited to

PQI-BOSservice only. Should be operational 90 days after funding which comes with selecting

Soveretgn Air. Sovereign Air will have passenger, (ticketing, baggage and cargo) agreements with

most magor aircarries and discount carries as well. With increasing ridership more scheduled flights

may be added as needed at a greatly reduced operating cost reducing ticket pricing.
Sovereign Air Inc -1/6/12 (TURBO-PROP) DOT-OST-2000-8012 PRESQUE/HOULTON-MAIN

DOT-OST-2011-0185 BARHARBOR-MAIN

Proposal # 4 TURBOPROP PQITO BOS1 STOPBHB

PQI21 RTPer Wk -BHB 21 RT+28 RTFOR90 DAYS

Total Departure Per Year 97%

Aircraft Jetatream 41

Available Seats Per Departure

Totle Seats Year

Block Time

Minutes Per Departure

Total Block Time Per Year

PBQ-BHB=25MIN BHB-BOS=40 MIN

Revenue

Passengers

Average Fare

Passenger Revenue

RPMS

Passengers

Stage Length

PQI-30,000 BHB-24,000

ASMs

Scheduled Departures

Completed Departures

Stage Length

Seats Available

Revenue

Outher Revenue @ .03 %of pax rev.

Total Revenue

Direct Operating Expenses

Indirect Expenses

Reservation and Marketing

Total Expenses

Blk Hrs

Per Pas

Operating Loss

5% Profit

Subsidy Required

Load Factor

21 & 28

2,467

30

74010

2,208

54,000

lli

$5,346,000

54000

205

11,070,000

2544

2468

205

30

15,682,106

$5,346,000

$160,380

$5,506,380

$3,655 $8,070,240

$1,358,009

$6 $324,000

$9,752,249

$4,245,869

$487,612

$4,733,481

0.73

NOTE: This proposal covers the total expense required to initiate scheduled air serice, purchase the aircraft

and be debt free as well as not requiring EASfunding after 2 years operation. Aircraft commited to

PQI-BHB-BOSservice only. Should be operational 90 days after funding which comes with selecting

Soveretgn Air. Sovereign Air will have passenger, (ticketing, baggage and cargo) agreements with

most magor aircarries and discount carries as well. With increasing ridership more scheduled flights

may be added as needed at a greatly reduced operating cost reducing ticket pricing.
Sovereign Air Inc -1/6/2012 (JET)

Proposal # 1 JETBHBTO BOSNON STOP

Round-Trips Per Week each leg non stop

Total Departure Per Year 97%

DOT-OST-2011-0185 BARHARBORMAIN

Aircraft Dorier 328 jet

Available Seats Per Departure

Totle Seats Year

Block Time

Minutes Per Departure

Total Block Time Per Year

Revenue

Passengers

Average Fare

Passenger Revenue

RPMS

Passengers

Stage Length

ASMs

Scheduled Departures

Completed Departures

Stage Length

Seats Available

Revenue

Outher Revenue @ .03 %of pax rev.

Total Revenue

Direct Operating Expenses

Indirect Expenses

Reservation and Marketing

Total Expenses

Blk Hrs $4,289

Per Pas $6

Operating Loss

5% Profit

Subsidy Required

Load Factor

14

1,412

30

42370

30

706

24,000

~

$2,136,000

24000

174

4,176,000

1456

1412

174

30

7,618,054

$2,136,000

$64,080

$2,200,080

$3,028,720

$1,005,300

$144.000

$4,178,020

$1,977,940

$208,901

$2,186,841

0.57

NOTE: This proposal covers the total expense required to initiate scheduled air serice, purchase the aircraft

and be debt free as well as not requiring EASfunding after 2 years operation. Aircraft commited to

BHB-BOSservice only. Should be operational 90 days after funding which comes with selecting

Soveretgn Air. Sovereign Air will have passenger, (ticketing, baggage and cargo) agreements with

most magor aircarries and discount carries as well. With increasing ridership more scheduled flights

may be added as needed at a greatly reduced operating cost reducing ticket pricing.
Sovereign Air Inc-l/6/2012 (JETSTREAM) DOT-OST-2011-0185 BAR HARBORMAINE

Proposal # 2 TURBOPROP BHBTO BOSNON STOP

Round-Trips Per Week each leg non stop

Total Departure Per Year 97%

Aircraft Jetstream 41

Available Seats Per Departure

Totle Seats Year

Block Time

Minutes Per Departure

Total Block Time Per Year

Revenue

Passengers

Average Fare

Passenger Revenue

RPMS

Passengers

Stage Length

ASMs

Scheduled Departures

Completed Departures

Stage Length

Seats Available

Revenue

Outher Revenue @ .03 %of pax rev.

Total Revenue

Direct Operating Expenses

Indirect Expenses

Reservation and Marketing

Total Expenses

Blk Hrs $3,451

Per Pas $6

Operating Loss

5% Profit

Subsidy Required

Load Factor

14

1,412

30

42370

35

824

24,000

~

$2,136,000

24,000

170

4,080,000

1456

1412

170

30

7,442,926

$2,136,000

$64,080

$2,200,080

$2,843,118

$1,000,300

$144,000

$3,987,418

$1,787,338

$199,371

$1,986,709

0.57

This proposal covers the total expense required to initiate scheduled air serice, purchase the aircraft

and be debt free as well as not requiring EASfunding after 2 years operation. Aircraft comrhited to

BHB-BOSservice only. Should be operational 90 days after funding which comes with selecting

Soveretgn Air. Sovereign Air will have passenger, (ticketing, baggage and cargo) agreements with

most magor aircarries and discount carries as well. With increasing ridership more scheduled flights

may be added as needed at a greatly reduced operating cost reducing ticket pricing.

NOTE:
Sovereign Air Inc -1/6/2021 (JET)

Proposal # 1 JETPBGTO BOSNON STOP

Round-Trips Per Week each leg non stop

Total Departure Per Year 97%

DOT-OST-2003-14783 PLATISBURGH, NY

Aircraft Dorier 328 jet

Available Seats Per Departure

Totle Seats Year

Block Time

Minutes Per Departure

Total Block Time Per Year

Revenue

Passengers

Average Fare

Passenger Revenue

RPMS

Passengers

Stage Length

ASMs

Scheduled Departures

Completed Departures

Stage Length

Seats Available

Revenue

Outher Revenue @ .03 %of pax rev.

Total Revenue

Direct Operating Expenses

Indirect Expenses

Reservation and Marketing

Total Expenses

Blk Hrs $4,549

Per Pas $6

Operating Loss

5% Profit

Subsidy Required

Load Factor

NOTE: This proposal covers the total expense required to initiate scheduled air serice, purchase the aircraft

and be debt free as well as not requiring EASfunding after 2 years operation. Aircraft commited to

PBG-BOSservice only. Should be operational 90 days after funding which comes with selecting

Soveretgn Air. Sovereign Air will have passenger, (ticketing, baggage and cargo) agreements with

most magor aircarries and discount carries as well. With increasing ridership more scheduled flights

may be added as needed at a greatly reduced operating cost reducing ticket pricing.

14

1,412

30

42370

30

706

27,000

~

$2,403,000

27000

174

4,698,000

1456

1412

174

30

7,618,054

$2,403,000

$72,090

$2,475,090

$3,212,322

$1,000,300

$162,000

$4,374,622

$1,899,532

$218,731

$2,118,263

0.64
Sovereign Air Inc-1/6/2012 (JETTREAM) DOT-OST-2003-14783 PLATTSBURGH,NY

Proposal # 2 TURBOPROP PBGTO BOSNON STOP

Round-Trips Per Week each leg non stop

Total Departure Per Year 97%

Aircraft Jetstream 41

Available Seats Per Departure

Totle Seats Year

Block Time

Minutes Per Departure

Total Block Time Per Year

Revenue

Passengers

Average Fare

Passenger Revenue

RPMS

Passengers

Stage Length

ASMs

Scheduled Departures

Completed Departures

Stage Length

Seats Available

Revenue

Outher Revenue @ .03 %of pax rev.

Total Revenue

Direct Operating Expenses

Indirect Expenses

Reservation and Marketing

Total Expenses

Blk Hrs $3,600

Per Pas $6

Operating Loss

5% Profit

Subsidy Required

Load Factor

14

1,412

30

42370

35

824

27,000

ill

$2,403,000

27,000

174

4,698,000

1456

1412

174

30

7,618,054

$2,403,000

$72,090

$2,475,090

$2,965,872

$1,058,300

$162,000

$4,186,172

$1,711,082

$209,309

$1,920,391

0.64

NOTE: This proposal covers the total expense required to initiate scheduled air serice, purchase the aircraft

and be debt free as well as not requiring EASfunding after 2 years operation. Aircraft commited to

PBG-BOSservice only. Should be operational 90 days after funding which comes with selecting

Soveretgn Air. Sovereign Air will have passenger, (ticketing, baggage and cargo) agreements with

most magor aircarries and discount carries as well. With increasing ridership more scheduled flights

may be added as needed at a greatly reduced operating cost reducing ticket pricing.