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 year

Cape Air

Cape Air

Sources: DOT and Cape Air’s Revenue Report Predecessor with larger aircraft

Predecessor

with larger aircraft

Predecessor

with 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-09Sep-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

90

Sep-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