# CHARTERMUKTranspo n Proposa l t o Provid e Essentia l Ai r Servic e a t Altoon aan dJohnstown , Pennsylvani aDocke t OST-2002-1144 6 an dDOT-OST-2002-1145 1 Dated : 03/24/201 0 Introductio n Charte r Ai r Transport , Inc . i s aCharte r Operato r tha t currentl y ha s a"Sho w Cause " Orde r fo r Commuter

Fitnes s Determinatio n (Docke t

#DOT-OST-2009-0187 ) wit h afleet o f fou r 3 0 sea t Turb o Pro p EMB-12 0 aircraf t wit h a n optio n t o purchas e 2 additional EMB-12 0 aircraf t an dtw o 1 9 sea

t BAE320 0 Jetstreamaircraft . We als o operate aircraf t includin g Hawker Jet , Citatio n Jet , Beec h Jet , an dmanage s Kin g Air-20 0 equipment . Charte r Ai r Transpor t i s a n Ai r Carrier tha t trul y provide s th e mos t

flexibility withi n it s curren t fleet t o operate aircraf

t an dgro w wit

h eac h communit

y w e serve . W e hav e entere dint o apartnershi p Aviatio n Technologies , Inc. , wh o commonl y own s Publi c Charters , Inc. , to enhanc e our inventor y distributio n (sea

t sales ) by als o operatin g thes e flights a s publi c charter s an ddistributin g themthroug h th e majo r Globa l Distributio n System s (GDS ) use db y al l o f th e major Schedule dAirline s to sel l thei r inventor y to th e worldwid e Trave l Agen t

Community . So , i

n additio n t

o th e classi c Interne t

base dReservation s Syste msales ; EA S seat s woul db e availabl e t o th e Trave l Communitie s i n Nort h Americ aincludin g Canada , Mexico , an dth e Caribbea n fo r tru e global distribution . Whil e filing thes e seat s a s publi c charter s i s no t require dt o serv e EA S markets ; th e extr apotentia l sea t sale s hav e increase dour

marke t projection s t o over

doubl e th e curren t

ridershi p in eac h communit y fro mthei r current level s o f enplanements . Our

goal i s to maximiz e loadfactor s an dfly prove n route s fo r eac h community . Thi s publi c charter

inventor y woul db e loade dint o Publi c Charters , Inc.' s lAT A certifie dCR S syste m(Computerize d Reservation s System ) tha

t currentl y interface s wit

h th e Sabre an dAmadeu s GD S systems . Thes e system s ar e commonly use dby Trave l Agencie s worldwide , an dare th e portal o f sale s fo r larg e clearin g house s like Travelocit y an dExpedia . Usin g Publi c Charters , Inc.' s advance dCR S enable s u s to distribut e sea t inventor y seamlessl y throug h th e GD S system s b y settlin g th e sale s throug h ARC (Airlin e Reportin g Company) . Al l ticke t sale s are additionall y protecte dwhen filing our flight inventor y throug h th e publi c charte r venue , a s al l ticke t

sale s revenu e i s directe dinto aDO T certifie d& bonde d escro w ban

k an dhel dunti l flight

completion . Al l flight

informatio n displaye do

n th e GD S system s woul dinclud e th e statement : "Operate dby Charte r Ai r Transport" . Thi s i s exactl y th e wa y tha t commute r

operator s display fo

r th e major airlines . Publi c Charters , Inc.' s CR S syste mals o contain s aDeparture Contro l Syste m(DCS ) tha t include s acomplete baggag e and ticketin g systemfo

r aconvenien t

airpor t check-i n process . Sinc e thi s syste mha s Typ e "A " connectivity , i t provide s th e basi c component s fo

r baggag e an dticketin g agreement s wit h mos t main-lin e carriers . I

t i s certifie dE-Ticketin g wit h bot h Sabr e andAmadeus ; an dha s plan s to implement wit h Travelpor

t (Worldspan ) in th e nea

r future . Thi s wil l enabl e our inventor y to als o b e picke du

p b y Orbitz an dPric e Lin e fo r additional distributio n opportunities . Additionall y w e us e th e Chec k TSA , Inc . syste mtha

t offer s th e lates t

securit y technologie s tha

t are use dfo

r TS A screenin g includin g complianc e wit h Secure Flight

an dCB P AQ Q communicatio n fo r International API S transmissions . Yo u ca n visi t thei r securit y web-sit e a

t www.ChcckTSA.co mfo

r more information .

1 1 P au e

# twmwkPaxii^ampoYt

Charter Air Transpor t woul dlik

e t o fac e th e challeng e o f

providin g servic e t o EA S communities , mainl y b y identifyin g better , bu t more condense dschedule s that serv e alarger

part o f communit

y traffi c fo

r O& D (originatio n an ddestination ) routes . Whil e w e continu e to wor k o n our Interlinin g agreements , gettin g passenger s t o thei r final destinatio n convenientl y an dmore efficiently ha s alway s bee n th e goal . Becaus e th e DC S describe dabov e i s a100 % Interne t base dSystem ; w e are abl e to provid e on-sit e check-in s wit h any cormectin g Carrier

tha t permit s Interne t

check-in s a s par

t o f thei r web-site services . Thi s enable s th e passenge r to print thei r boardin g cardfo

r thei r connectin g flight

a t th e EA S departure airport . Returnin g passenger s ma y obtai n thei r boardin g pas s a

t th e Charter

Ai r Transport/Publi c Charter s gate an dd o no t hav e t o g o to th e check-i n counter . Onc e w e get th e passenger s delivere dto th e steril e gate areas ; the y woul dalready hav e thei r connectin g boardin g card s an dw e woul darrang e aloca

l transfer o f baggag e either

directl y t o th e gate or

throug h alocal baggag e arrangement wit h eac h carrier . We continu e t o wor k wit h severa l major airline s fo

r Interlin e an dTicketin g agreements , an dar e confident that ; wit h our curren t busines s practices ; tha

t th e trave l experienc e wil l b e practical , expeditious , an dconvenien t fo r eac h passenger . We us e acolo r

code d"Disne y Type " baggag e codin g fo r convenien t

recognitio n o f

interline dbaggag e bot

h fo r out boun d an dinboun dflight

baggag e retrieval an dtransfers . Whil e w e d o no t charg e baggag e fees , w e mus t collec t an y fee s tha t ma y b e charge dby other

carriers . Thes e charge s wil l b e poste don our web-sit e an dcollecte da

t th e tim e o f

check-in . W

e hav e bee n advise db y carrier s like Southwes t Airlines , tha

t if apassenge r

i s carryin g aSouthwes t

Boardin g car

do r ha s a Southwes t ticket , the y wil l b e treate dlik e aSouthwes t

passenger . Thi s include s th e acceptanc e o f baggage . Thi s i s tru e fo r mos t major airlines . There are several regulation s tha t expec t carrier s t o accommodate interlinin g traffi c fo r feede r flights. Our propose dschedule s provid e sufficien t tim e to connec t

t o al l o f th e airline s in th e hub cities . I n particular , some of

th e larger lo w cos t carrier s suc h a s Air

Tran , Southwest , Je t

Blu e an dSpiri t

Airlines , hav e non-sto p flights tha t hav e coordinate dbank

times . Thes e cormection s include , bu t are no t limite dto : Je t Blu e BOS , CUN , FLL , LGB , JFK , OAK , MCO , & SJ U South Wes t MDW , BWI , LAS , MCO , PHL , PHX , & TP A Ai r Tra n ATL , FLL , FMY , MKE , & MC O Spiri t Airline s BOS , FLL , FMY , MYR , MCO , TPA , & PB I Bot h Charter Air Transpor t an dPubli c Charters , Inc . are committe dto th e highes t on-tim e performanc e an dflight completio n record s to our

passengers . In th e event

o f a n aircraf t mechanical , our

first resourc e to i s us e bac k

u p aircraf t fro mwithi n th e Charte r

Ai r Transpor t fleet. However , w e are no t limite dt o thes e resource s an dhav e acces s t o retai n sub servic e utilizin g other

certifie dFA

A Air Carrier' s aircraf

t tha t coul dconsis t

o f aircraf t typ e rangin g fro

mpressurize d Twi n Turb o Pro p aircraf

t to Corporate Je t

aircraft . Shoul dsub-servic e b e necessary , w e wil l utiliz e aircraf t sufficien t to provid e coverag e base don th e actual tickete dpassenger s for eac h flight

leg . Whether

w e us e on e or

tw o aircraf

t t o complete aflight

sequence , w e provid e thi s servic e wit h n o surcharg e or

penalt y t o th e EA S Communit

y Service . 2 I P aS i e

# tHARXE RJkiRi^ampmf .

On e o f our motto s i s "G o wit

h U s s o tha

t w e ca n Gro w wit

h You! " Charte r

Air Transpor t ca n offe r dail y servic e operatin g multipl e flights per da y fo r any EA S rout e tha

t i s u p t o 15 0 nautical mile s poin t to poin t fro mth e originatio n cit y to th e destinatio n city . W e no w offe

r th e choic e o f

operatin g wit

h eithe r th e Jetstream1 9 sea

t aircraf t (o r 1 8 wit h on e lavatory ) o r

th e 3 0 sea

t EMB-12 0 (includin g on e Fligh t Attendant ) to serv e th e community' s trave l needs . Whil e w e recogniz e tha

t communitie s wan

t mor e frequenc y an dlarger

aircraft , th e statistic s an dhistor y hav e dictate dtha

t thes e route s nee dt o b e revampe dan drebuil t to mee t th e tru e communit

y need . We offe

r prim e time departure s an darrivals , includin g earl y mornin g an dlate afternoon , to optimiz e bot h th e O& D an dpotential connectin g passenge r enplanements . Our desire i s to provid e th e loca l communitie s flight

servic e t o a

n airpor t tha t wil l provid e th e mos t

vantag e point s fo

r connectin g into th e National Transportatio n Systema t large . The combine dpartnershi p betwee n Charte r Air Transpor t an dPubli c Charters , Inc . i s designe dt o fit each market

need , offerin g capabilitie s to provid e additional aircraf t capacitie s in orde r

to gro w wit

h eac h communit

y w e serve ; whil e providin g enhance dticke t sal e distribution . Proposa l Includes : AQ Q an dJST-IAD , AG O an dJST-PI T 3 0 Sea t Turb o Pro p EMB-12 0 Aircraf t Serve s Washington-Dulle s (IAD ) an dPittsburg h (PIT ) wit h 1 8 single-sto p or

non-sto p flights pe r

week . •Atlanti c City (ACY ) wit h 1 single-sto p or

non-sto p flight

pe r week . *NON-SUBSIDIZE D IA D Averag e On e Wa y Fare : $69.9 9 PI T Averag e On e Way Fare : $49.9 9 Requeste dsubsid y amoun t pe r year : $2,960,022.0 0 Pleas e refe

r to Appendi x "A " o f

thi s proposal fo

r detaile dflight

schedule s an dcos t

models . Pleas e contac t

either Charter Air Transport , Inc . o r

Publi c Charters , Inc . wit

h an y question s yo u ma

y have . For Charter Air Transport , Inc. : Fo r Publi c Charters , Inc. : Peter Billma n Ji mGallaghe r Phone : 216-348-141 5 Phone : 570-457-414 7 Fax : 216-348-143 2 Fax : 570-457-411 3 Email : PBillman(a;CharterAirTransport,co mEmail : JG727@aol.co m Se e attache dexhibit s fo

r schedul e an dpricin g details . Our tentativ e schedule s are subjec t t o final gate an dslo t

approva l fo r eac h airpor

t w e serve .

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