### January 13, 2010 Amendment to October 15, 2009 proposal of Hyannis Air Service, Inc., dba Cape Air to provide subsidized Essential Air Service for: 

# Plattsburgh, NY Docket DOT - OST - 2003 - 14783

Hyannis Air Service, Inc., dba Cape Air Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601 (508) 862 - 9719 Please direct media inquiries to Michelle Haynes, Communications Director: (508) 862 - 9714

### 1 

# In Cape Air’s first two years of serving Plattsburgh enplanements grew 156% from the predecessor’s best year in the prior three

3,080 4,071 7,958 10,432

3,267

0 2,000 4,000 6,000 8,000 10,000 12,000

2005 2006 2007 2008 2009 

### Plattsburgh passengers Sum of inbound and outbound; EAS carriers only



## + 156%

Partial yearCape AirCape Air

Sources: DOT and Cape Air’s Revenue ReportPredecessorwith larger aircraftPredecessorwith larger aircraftPredecessorwith larger aircraft

### 2 

# Even today, Cape Air continues to grow the Plattsburgh market rapidly

8,551 8,828 8,953 9,265 9,382 9,491 9,544 9,548 9,772 9,978 10,130 10,432

8,500 9,000 9,500 10,000 10,500

Jan - 09 Feb - 09 Mar- 09 Apr- 09 May- 09 Jun - 09 Jul - 09 Aug - 09 Sep - 09 Oct- 09 Nov- 09 Dec - 09 

### Annual Plattsburgh passengers Sum of twelve months ending



## +22%

### 3 

# Even with the present growth in traffic, Cape Air has ample

room to accommodate additional passenger growth, since the annual average load factor is still only 55%

39% 36% 46% 54% 49% 54% 69% 63% 59% 59% 56% 61%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Plattsburgh load factor 2009 (Percentage of seats filled)

Average

### 4 

# Cape Air proposes an option for an increase in frequency for Plattsburgh: 4x daily Jun - Sep, and 3x daily service Oct - May, to/from Boston, and lowering the fare to $65

Drivers—4x daily Jun - Sep, 3x Oct- May Two yr term 

### Annual Expenses—4x daily Jun - Sep, 3x Oct - May Two yr term
PBG SLK Daily RTs 3.3 3.3 Stage (naut. miles) 177 185 Seats per Dpt 9 9 Annual Sched. Dpts 2,433 2,433 Completion Rate 97% 97% Annual Actual Dpts 2,360 2,360 PDEW 17.1 14.7 Pax/Dpt 5.1 4.4 Load Factor 57% 49% Annual Passengers 12,105 10,406 Avg. Net Fare $65.00 $74.93 Passenger Rev $786,837 $779,764 PBG SLK Fuel $818,664 $831,052 Maintenance $611,277 $620,598 Pilots $214,886 $217,926 Ownership $52,019 $52,019 Stations $161,227 $184,261 Landing Fees $73,371 $75,215 Marketing $49,731 $49,896 General & Admin./Other $156,633 $154,413 Operating expense $2,137,807 $2,185,380 Return of 5% $112,516 $115,020 Economic Expense ($2,250,324) ($2,300,400) Passenger Revenue $786,837 $779,764 Profit ($1,463,486) ($1,520,636) Subsidy Required Annual $1,463,486 $1,520,636 Per Departure $620 $644 Per Passenger $121 $146 While Cape Air prefers this 4x seasonal option be selected, all service pattern

options proposed in the 15OCT09 filing remain valid. Cape Air respectfully requests that if Plattsburgh is selected for 4x daily round trips in the summer, Saranac Lake be selected for the same frequency.

### 5 

# Given the recent rise in Plattsburgh load factor at the present 3x daily year- round pattern Cape Air proposes lowering the fare to $65

Drivers—3x daily year round Two yr term 

### Annual Expenses—3x daily year round Two yr term
PBG SLK Daily RTs 3.0 3.0 Stage (naut. miles) 177 185 Seats per Dpt 9 9 Annual Sched. Dpts 2,189 2,189 Completion Rate 97% 97% Annual Actual Dpts 2,123 2,123 PDEW 15.4 13.2 Pax/Dpt 5.1 4.4 Load Factor 57% 49% Annual Passengers 10,892 9,363 Avg. Net Fare $65.00 $74.93 Passenger Rev $707,960 $701,595 PBG SLK Fuel $736,595 $747,742 Maintenance $549,998 $558,385 Pilots $193,344 $196,080 Ownership $52,019 $52,019 Stations $154,067 $177,102 Landing Fees $66,016 $67,675 Marketing $44,746 $44,894 General & Admin./Other $143,324 $141,339 Operating expense $1,940,110 $1,985,235 Return of 5% $102,111 $104,486 Economic Expense ($2,042,222) ($2,089,721) Passenger Revenue $707,960 $701,595 Profit ($1,334,262) ($1,388,126) Subsidy Required Annual $1,334,262 $1,388,126 Per Departure $628 $654 Per Passenger $123 $148 While Cape Air prefers the 4x seasonal option be selected, all service pattern

options proposed in the 15OCT09 filing remain valid. Cape Air respectfully requests that if Plattsburgh is selected for 4x daily round trips in the summer, Saranac Lake be selected for the same frequency.

### 6 

# Furthermore, Cape Air’s proposal aims to keep Plattsburgh’s airport growing and thriving by adding a 4th 

# daily round trip during summer, and lowering fares to $65

Fare 

# $65 Daily round trips 

# 4x Jun - Sep! 3x Oct- May Connections 87% of top Boston destinations available on JetBlue Interline e -ticket and baggage agreements with most other major airlines Affiliation JetBlue (Boston’s largest low - cost carrier) Cape Air’s proposal highlights

Cape Air’s proposal is designed to continue growing Plattsburgh International Airport

### 7 

# A 4x daily summer schedule would span the entire day

To Boston From Boston Departure Arrival Departure Arrival 6:00 AM 7:23 AM 7:48 AM 9:18 AM 10:03 AM 11:26 AM 11:51 AM 1:21 PM 1:51 PM 3:14 PM 3:39 PM 5:09 PM 5:54 PM 7:17 PM 7:42 PM 9:12 PM June – September Plattsburgh and/or Saranac Lake schedule Daily service

Notional schedule subject to change. Community input encouraged!


### This high -frequency schedule maximizes passenger convenience

### 8 

# Cape Air’s JetBlue partnership has far longer reach and wider breadth than US Airways

JetBlue US Airways 

### JetBlue and US Airways non - stop service from Boston May 2010

Source: Official Airline Guide

### 9 

## JetBlue ASMs/Week 

## US Airways ASMs/Week 1 Aruba, AW 1,239,600 1 Albany, NY 64,090 2 Austin, TX 1,186,500 2 Buffalo, NY 454,250 3 Bermuda, BM 386,500 3 Charlotte-Douglas, NC 6,633,536 4 Buffalo, NY 790,000 4 Washington-National, DC 4,570,944 5 Baltimore, MD 1,295,000 5 Las Vegas, NV 2,496,900 6 Charlotte-Douglas, NC 1,456,000 6 New York-La Guardia, NY 1,794,870 7 Cancun, MX 782,550 7 Harrisburg, PA 136,345 8 Denver, CO 3,677,100 8 Philadelphia, PA 2,745,680 9 Fort Lauderdale, FL 3,906,000 9 Phoenix, AZ 6,399,442 10 Washington-Dulles, VA 1,982,400 10 Pittsburgh, PA 716,760 11 Jacksonville, FL 708,400 11 Richmond, VA 260,700 12 New York-JFK, NY 1,252,900 12 Rochester, NY 290,700 13 Las Vegas, NV 2,496,900 13 Syracuse, NY 170,544 14 Los Angeles, CA 5,085,600 Subtotal 26,734,761 15 Long Beach, CA 5,068,050 16 Montego Bay, JM 510,000 Maine EAS 17 Orlando, FL 5,114,200 14 Augusta, ME 95,608 18 New Orleans, LA 957,600 15 Bar Harbor, ME 79,968 19 Oakland, CA 2,824,500 16 Presque Isle, ME 215,118 20 Chicago-O'Hare, IL 1,211,000 Total 27,125,455 21 West Palm Beach, FL 2,100,000 22 Pittsburgh, PA 693,000 23 Raleigh/Durham, NC 1,285,200 24 Richmond, VA 616,200 25 Fort Myers, FL 1,752,800 26 San Diego, CA 5,428,500 27 Santo Domingo, DO 994,200 28 Seattle/Tacoma, WA 2,616,600 29 San Francisco, CA 5,265,000 30 San Juan, PR 1,512,900 31 St. Maarten, AN 261,750 32 Tampa, FL 2,077,250 Total 66,534,200 JetBlue percent larger: 145% 

### Relative capacity at Boston (available seat miles or “ASMs”) May 2010, weekly in millions 

# JetBlue serves twice as many cities from Boston as US Airways

### 10 

# And, JetBlue serves non - stop 13 of the most popular 15 markets at Boston

Rank Daily Pax US Airways JetBlue 1 Orlando, FL 1179 JetBlue 2 Chicago-O'Hare, IL 1162 JetBlue 3 San Francisco, CA 1139 JetBlue 4 New York-La Guardia, NY 1072 US Airways JFK 5 Atlanta, GA 1028 6 Los Angeles, CA 994 JetBlue 7 Washington-National, DC 942 US Airways IAD 8 Fort Lauderdale, FL 827 JetBlue 9 Washington-Dulles, VA 672 DCA JetBlue 10 Baltimore, MD 629 JetBlue 11 Dallas/Fort Worth, TX 598 12 Fort Myers, FL 579 JetBlue 13 Tampa, FL 571 JetBlue 14 Denver, CO 567 JetBlue 15 West Palm Beach, FL 542 JetBlue Top Boston markets YE2Q09 passenger data, ranked by daily passengers each way; May 2010 schedule; alternative service noted

Source: “O&D” Survey and Official Airline Guide

### 11 

# US Airways is shrinking in Boston, with capacity for summer 2010 down 20%

0 10 20 30 40 50 60 70 80 90Sep-08Oct-08Nov-08Dec-08Jan-09Feb-09Mar-09Apr-09May-09Jun-09Jul-09Aug-09Sep-09Oct-09Nov-09Dec-09Jan-10Feb-10Mar-10Apr-10May-10Jun-10Jul-10Aug-10Sep-10 

## - 20% US Airways available seat miles at Boston Weekly, in millions

Source: Official Airline Guide

### 12 

# “JetBlue Airways Announces Major Expansion in Boston...”

BOSTON, Oct. 29, 2009 /PRNewswire - FirstCall/ -- JetBlue Airways (Nasdaq: JBLU) today announces a major expansion of service from its focus city at Boston Logan International Airport. The airline, which already offers service to the most nonstop destinations of any carrier from Boston, plans to boost daily departures by 30% by summer 2010. With its expanded schedule, JetBlue and its growing base of 1,300 Boston crewmembers will offer travelers up to 78 daily flights to 33 top destinations....

" Here at JetBlue we are officially declaring Summer 2010 the Summer of Boston ," said Robin Hayes, Chief Commercial Officer for JetBlue. "Today's added flights represent an important next step in our commitment to offering Boston travelers the most robust schedule as well as the most destinations of any airline. http://www.newscom.com/cgi - bin/prnh/20090217/NY71475LOGO - b Reuters, October 29, 2009 http://www.reuters.com/article/pressRelease/idUS203603+29 - Oct-2009+PRN20091029 

## Meanwhile...

### 13 

# JetBlue’s Boston ticket yield (price per mile flown) is 39% lower than US Airways’, meaning lower travel costs for JetBlue connections

$0.11 $0.12 $0.12 $0.13 $0.15 $0.15 $0.15 $0.18

$0.00 $0.05 $0.10 $0.15 $0.20

JetBlue United American AirTran Delta Continental Northwest US Airways 

### Boston yield by carrier YE1Q09, revenue per passenger- mile flown

Source: US DOT O&D Survey Note: Largest carriers by departure frequency, OAG November 2009, excluding Cape Air



### Cape Air’s connections to JetBlue mean low total trip costs for Plattsburgh Wkly Dpts 408 180 453 138 387 126 120 588

### 14 

# With JetBlue’s 1Q10 switch to the Sabre reservations system passengers will be able to connect seamlessly within Logan’s Terminal C to Boston’s largest low - cost carrier: JetBlue Boston Logan Terminal “C”

Note: Not to scale Ticket counters 

### TSA Security

As an interline carrier for 15 years, Cape Air facilitates through ticketing and bag transfer to most major airlines Customer service center

JetBlue is Boston’s largest low- cost carrier by either departures or ASMs, November 2009 OAG

### 15 

# Cape Air loves being Plattsburgh’s partner in growing Plattsburgh International Airport!

 Proven service and proven, continuous enplanement growth for Plattsburgh International Airport  Lower fares: $65  Higher frequency: 4x Jun - Sep, 3x May- Oct  JetBlue partner serves non - stop the cities most people are trying to get to  The US Airways network requires multiple connections to reach most destinations, whereas JetBlue offers twice as many non - stop destinations from Boston, including the most popular destinations  More sustainable:  Economically  Environmentally Key points on Plattsburgh proposal



## Thank you for inviting Cape Air to serve Plattsburgh!
Hyannis Air Service, Inc., dba Cape Air Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601 (508) 862 - 9719 Please direct media inquiries to Michelle Haynes, Communications Director: (508) 862 - 9714