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Proposal to Provide Essential Air Service at 

Kirksville, Missouri DOT-OST-1997-2515 

Dated: 04/23/2010 

Introduction 

Charter Air Transport, Inc. is a Charter Operator that currently has Commuter Schedule Authority (Docket # DOT-OST2009-0187) with a fleet of four 30 seat Turbo Prop EMB-120 aircraft with an option to purchase 2 additional EMB-120 

aircraft and two 19 seat BAE3200 Jetstream aircraft. We also operate aircraft including Hawker Jet, Citation Jet, Beech 

Jet, and manages King Air-200 equipment. Charter Air Transport is an Air Carrier that truly provides the most flexibility 

within its current fleet to operate aircraft and grow with each community we serve. 

We have entered into a partnership Aviation Technologies, Inc., who commonly owns Public Charters, Inc., to enhance 

our inventory distribution (seat sales) by also operating these flights as public charters and distributing them through the 

major Global Distribution Systems (GDS) used by all of the major Scheduled Airlines to sell their inventory to the 

worldwide Travel Agent Community. So, in addition to the classic Internet based Reservations System sales; EAS seats 

would be available to the On-Line Travel Agencies (Travelocity & Expedia) as well as Travel Communities in North 

America including Canada, Mexico, and the Caribbean for true global distribution. 

While filing these seats as public charters is not required to serve EAS markets; the extra potential seat sales have 

increased our market projections to over double the current ridership from their current levels of enplanements. In 

addition to the EAS flight schedule, additional Charter Flights are a great way to serve a community. Not only by adding 

leisure destinations, but also by having aircraft based in the region. This allows for the most affordable charter service by 

not having to re-position aircraft in from other locations. Now we can serve local events with local aircraft. This is how 

we plan to increase enplanements at IRK. Re-building local support and loyalty to an airport is key to the success of both 

the Airport and Charter Air. 

Higher enplanements will mean less subsidy and lower costs. The DOT wants to pay less subsidy in these programs, the 

community wants quality service at the right price, and the airline wants to provide good service without losing money. 

There seems to be a common knowledge that airports and carriers are afraid to lose their EAS funding, so what incentive 

do they have to do better? With CAT’s creative scheduling, low pricing and additional charter flights, you can keep your 

EAS funding and also provide better service to more markets. 

Our goal is to maximize load factors, increase overall enplanements, and fly proven routes the community. Building up 

the load factors and community allegiance will attract more carriers, and should eventually attract non-subsidized service. 

All flights will be loaded into our IATA certified CRS system (Computerized Reservations System) that currently 

interfaces with the Sabre and Amadeus GDS systems. These systems are commonly used by Travel Agencies worldwide, 

and are the portal of sales for large clearing houses like Travelocity and Expedia. Using Public Charters, Inc.’s advanced 

CRS enables us to distribute seat inventory seamlessly through the GDS systems by settling the sales through ARC 

(Airline Reporting Company). All ticket sales are additionally protected when filing our flight inventory through the 

public charter venue, as all ticket sales revenue is directed into a DOT certified & bonded escrow bank and held until 

flight completion. All flight information displayed on the GDS systems would include the statement: “Operated by 

Charter Air Transport”. This is exactly the way that commuter operators display for the major airlines. 
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We also utilize an Internet based Departure Control System (DCS) that includes a complete baggage and ticketing system 

for a convenient airport check-in process. Since this system has Type “A” connectivity, it provides the basic components 

for baggage and ticketing agreements with most main-line carriers. Since it is Internet based it enables us to print both 

Boarding passes as if you were checking in on-line prior to going to the airport. Because the DCS described above is a 

100% Internet based System; we are able to provide on-site check-ins with any connecting Carrier that permits Internet 

check-ins as part of their web-site services. This enables the passenger to print their boarding card for their connecting 

flight at the EAS departure airport. Returning passengers may obtain their boarding pass at the Charter Air 

Transport/Public Charters gate and do not have to go to the check-in counter. Once we get the passengers delivered to the 

sterile gate areas; they would already have their connecting boarding cards and we would arrange a local transfer of 

baggage either directly to the gate or through a local baggage arrangement with each carrier. Thus, we have created the 

“virtual” interline. We continue to work with several major airlines for Interline and Ticketing agreements, and are 

confident that; with our current business practices; that the travel experience will be practical, expeditious, and convenient 

for each passenger. 

We use a color coded “Disney Type” baggage coding for convenient recognition of interlined baggage both for out bound 

and inbound flight baggage retrieval and transfers. While we do not charge baggage fees, we must collect any fees that 

may be charged by other carriers. These charges will be posted on our web-site and collected at the time of check-in. We 

have been advised by carriers like Southwest Airlines, that if a passenger is carrying a Southwest Boarding card or has a 

Southwest ticket, they will be treated like a Southwest passenger. This includes the acceptance of baggage. This is true 

for most major airlines. There are several regulations that expect carriers to accommodate interlining traffic for feeder 

flights. 

Charter Air Transport would like to face the challenge of providing service to EAS communities, mainly by identifying 

better, but more condensed schedules that serve a larger part of community traffic for O&D (origination and destination) 

routes. While we continue to work on our Interlining agreements, getting passengers to their final destination 

conveniently and more efficiently has always been the goal. 

Our system is certified E-Ticketing with both Sabre and Amadeus; and has plans to implement with Travelport 

(Worldspan) in the near future. This additional certification would enable our seats to also be picked up by Orbitz and 

Price Line for additional distribution opportunities. 

Our proposed schedules provide sufficient time to connect to a majority of the airlines in the hub airport. However, our 

schedules are not final and will be worked out with each airport to maximize connectivity options at each hub airport

Additionally we use the Check TSA, Inc. system that offers the latest security technologies that are used for TSA 

screening including compliance with Secure Flight and CBP AQQ communication for International APIS transmissions. 

You can visit their security web-site at www.CheckTSA.com for more information. 

Both Charter Air Transport and Public Charters, Inc. are committed to the highest on-time performance and flight 

completion records to our passengers. In the event of an aircraft mechanical, our first resource to is use back up aircraft 

from within the Charter Air Transport fleet. However, we are not limited to these resources and have access to retain subservice utilizing other certified FAA Air Carrier’s aircraft that could consist of aircraft type ranging from pressurized 

Twin Turbo Prop aircraft to Corporate Jet aircraft. Should sub-service be necessary, we will utilize aircraft sufficient to 

provide coverage based on the actual ticketed passengers for each flight leg. Whether we use one or two aircraft to 

complete a flight sequence, we provide this service with no surcharge or penalty to the EAS Community Service. 
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One of our mottos is “Go with Us so that we can Grow with You!” Charter Air Transport can offer daily service 

operating multiple flights per day for any EAS route that is up to 150 nautical miles point to point from the origination 

city to the destination city. We now offer the choice of operating with either the Jetstream 19 seat aircraft (or 18 with one 

lavatory) or the 30 seat EMB-120 (including one Flight Attendant) to serve the community’s travel needs. We offer prime 

time departures and arrivals, including early morning and late afternoon, to optimize both the O&D and potential 

connecting passenger enplanements. Our desire is to provide the local community flight service to an airport that will 

provide the most vantage points for connecting into the National Transportation System at large. 

The combined partnership between Charter Air Transport and Public Charters, Inc. is designed to fit each market need, 

offering capabilities to provide additional aircraft capacities in order to grow with each community we serve; while 

providing enhanced ticket sale distribution. 

This Proposal Includes:

1. Non Stop Service – Appendix “A” 

BAE3200 19 Seat Jetstream Aircraft 

Aircraft Base: IRK 

Serves Kansas City, Mo (MCI) 2 times per day x6

12 Non Stop flights per week 

Serves *Branson, Mo (BKG) 1 time per week June through August 

*BKG is a NON Subsidized leisure route to attract passengers to IRK 

Average One Way Fare: $69.00 Requested subsidy amount per year: $1,274,655.13

Current Subsidy   $    (806,169.00)

Available

Seats Per Flight

Available  

Seats Per Week

Available

Seats Per Year

9 216 11232 Per Seat Subsidy   $               (71.77)

2009 Actual  

Seats Per Flight

2009 Actual  

Seats Per Flights

2009 Actual

Seats Per year

3 36 1877 Per Seat Subsidy   $            (429.50)

Proposed Subsidy   $ (1,383,015.13)

Available

Seats Per Flight

Available  

Seats Per Week

Available

Seats Per Year

19 456 23712 Per Seat Subsidy   $               (58.33)

Projected  

Seats Per Flight

Projected

Seats Per Week

Projected

Seats Per year

10 240 12480 Per Seat Subsidy   $            (110.82)

Please refer to Appendixes “A” of this proposal for detailed flight schedules and cost models. 

Please contact either Charter Air Transport, Inc. or Public Charters, Inc. with any questions you may have. 

For Charter Air Transport, Inc.: For Public Charters, Inc.: 

Dave Lucas Jim Gallagher 

Phone: 216-496-6808 Phone: 570-457-4147 

Fax: 216-348-1432 Fax: 570-457-4113 

Email: Dlucas@Businssaircraftgroup.com Email: JG727@aol.com
And

Fare Range: Low $ 59.00 High $ 139.00

Aircraft: Seats: 19Aircraft Base: IRK

ACMI incl. Hotel & p

Stops Destin. Grou

IRK 6:45 AM MCI 7:30 AM 0 Origin Grou

MCI 9:30 AM IRK 10:15 AM 0 Destinato

IRK 3:00 PM MCI 3:45 PM 0 Originatio

MCI 6:00 PM IRK 6:45 PM 0 Fuel bu

Fuel price/gallon a

Advertising per p

Stops Credit c

IRK 9:00 AM BKG 10:20 AM 0 Travel Agent Comm

BKG 12:00 PM IRK 1:15 PM 0 Load 

*BKG IS NON SUBSIDIZED Percent of Travel Age

Item Jan Feb Mar Apr May Jun Jul Aug 

Weeks per Month 4 3 4 3 4 3 4 3 4 3 4 3 4 3 

Dept Arrive

Proposal t

BAE3200 Jetstream

Dept Arrive

NON STOP 

Schedule: Daily X6 (Sun‐Fri)

Schedule: Day 6 (Sat Only) June through August*

Weeks per Month 4.3 4.3 4.3 4.3 4.3 4.3 4.3 Days per Week 6 6 6 6 6 6 6 

Depts per Week 24 24 24 24 24 24 24 

Depts per Month 103 103 103 103 103 103 103 

Avg. Block per Leg 0.71 0.71 0.71 0.71 0.71 0.71 0.71 

Ttl Block per Month 73.13 73.13 73.13 73.13 73.13 73.13 73.13 

Load Factor 50% 50% 50% 50% 50% 50% 50% 

Seats per flight 19 19 19 19 19 19 19 

Pax per flight 10 10 10 10 10 10 10 

Avg. Pax Fare $ 69.00 $ 69.00 $ 69.00 $ 69.00 $ 69.00 $ 69.00 $ 69.00 $ 

Ttl Pax per Month 1,032 1,032 1,032 1,032 1,032 1,032 1,032 

Ticket Rev. $ 71,070.00 $ 71,070.00 $ 71,070.00 $ 71,070.00 $ 71,070.00 $ 71,070.00 $ 71,070.00 $ 71,

Credit Card Fee (2,487.45) $ $ (2,487.45) $ (2,487.45) $ (2,487.45) $ (2,487.45) $ (2,487.45) $ (2,487.45) $ (2,

FET & 7.5% (4,880.97) $ $ (4,880.97) $ (4,880.97) $ (4,880.97) $ (4,880.97) $ (4,880.97) $ (4,880.97) $ (4,

Agent Comm. (1,983.35) $ $ (1,983.35) $ (1,983.35) $ (1,983.35) $ (1,983.35) $ (1,983.35) $ (1,983.35) $ (1,

Ttl Op. Revenue 61,718.23 $ $ 61,718.23 $ 61,718.23 $ 61,718.23 $ 61,718.23 $ 61,718.23 $ 61,718.23 $ 61,

Direct Operating Cost

ACMI 80,443.00 $ $ 80,443.00 $ 80,443.00 $ 80,443.00 $ 80,443.00 $ 80,443.00 $ 80,443.00 $ 80,

Fuel 19,964.49 $ $ 19,964.49 $ 19,964.49 $ 19,964.49 $ 19,964.49 $ 19,964.49 $ 19,964.49 $ 19,

Ground $ 56,760.00 $ 56,760.00 $ 56,760.00 $ 56,760.00 $ 56,760.00 $ 56,760.00 $ 56,760.00 $ 56,

Catering $ 1,032.00 $ 1,032.00 $ 1,032.00 $ 1,032.00 $ 1,032.00 $ 1,032.00 $ 1,032.00 $ 1,

Ttl Direct Op. Cost 158,199.49 $ $ 158,199.49 $ 158,199.49 $ 158,199.49 $ 158,199.49 $ 158,199.49 $ 158,199.49 $ 158,

Indirect Operationing Costs

Advertizing 2,580.00 $ $ 2,580.00 $ 2,580.00 $ 2,580.00 $ 2,580.00 $ 2,580.00 $ 2,580.00 $ 2,

GDS 5,160.00 $ $ 5,160.00 $ 5,160.00 $ 5,160.00 $ 5,160.00 $ 5,160.00 $ 5,160.00 $ 5,

Call Center 2,000.00 $ $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 2,

Ttl Indirect Op. Cost 9,740.00 $ $ 9,740.00 $ 9,740.00 $ 9,740.00 $ 9,740.00 $ 9,740.00 $ 9,740.00 $ 9,

Ttl Op. Cost $ 167,939.49 $ 167,939.49 $ 167,939.49 $ 167,939.49 $ 167,939.49 $ 167,939.49 $ 167,939.49 $ 167,

Operating P/L (106,221.26) $ $ (106,221.26) $ (106,221.26) $ (106,221.26) $ (106,221.26) $ (106,221.26) $ (106,221.26) $ (106,

Cumulative P/L $ (106,221.26) $ (212,442.52) $ (318,663.78) $ (424,885.04) $ (531,106.30) $ (637,327.57) $ (743,548.83) $ (849,

Cost Per Dept. 1,630.4 $ 8 $ 1,630.48 $ 1,630.48 $ 1,630.48 $ 1,630.48 $ 1,630.48 $ 1,630.48 $ 1,