Proposal to Provide Essential Air Service at

Owensboro, Kentucky

Docket DOT-OST-2000-7855

Direct Inquiries Regarding this Proposal to:

Shane Storz, CEO

Air Choice One Airlines

12300 Old Tesson Road, Suite 200 F, Saint Louis, MO 63128

Phone: (866) 435-9847 Fax: (314) 843-8527 E-mail: shane@airchoiceone.com

Multi-Aero Inc. 

d/b/a

Air Choice One
Our Commitment

09/13/2011

Air Choice One is aware of the many challenges facing EAS communities. Our proposal will give the 

community of Owensboro, Kentucky the best access to the national transportation system at 

reasonable prices.

We understand the efforts of a dedicated air carrier are critical to your continued success. Air Choice 

One is that air carrier and we believe the strategy outlined in our proposal will support and 

complement airport development efforts. We believe our analysis, planning, marketing strategy, and 

dedication to the community enable us to win the confidence of local travelers. Our outstanding 

customer service keeps them coming back. We have proven our strategy works with other EAS 

communities and we are committed to delivering the same results in yours. We are committed to 

reestablishing reliable air service and rebuilding customer loyalty. 

This proposal allocates substantial resources to support marketing efforts. Our achievements in our 

other EAS markets demonstrate that our marketing strategies are successful. Through on-site 

community outreach, community-specific advertising, consistent flight schedules, and outstanding 

customer service, we will build consumer recognition in the community and attract more passengers to 

your airport. 

We are committed to providing you with outstanding service and will continue working with you 

throughout our term to provide the next level of air service and, in turn, success for all.
Market Growth Strategy -

Airport Partnerships

Air Choice One will team with your local airport to raise awareness about your 

communities’ air service and increase enplanements. 

• LOCAL AIRPORT INITIATIVES 

• Provide Financial Support Through Discounted Fuel Costs, Landing Fees, and Rental Agreements

• Educate the Community about the EAS Program and Air Choice One’s Service

• Draft and Distribute Press Releases

• Community Involvement 

• Participate in TV and Radio Coverage

• Distribute Information Pertaining to Air Choice One at Local Business Events

09/13/2011
Market Growth Strategy -

Airport Partnerships

Air Choice One will team with your chosen destination airport to promote tourism opportunities and 

encourage air travel to your community, again, increasing enplanements. 

• LAMBERT ST. LOUIS INTERNATIONAL AIRPORT (STL) INITIATIVES 

• Aggressively pursuing EAS Communities Through Partnership Programs

– Local Visits and Financial Support

–Annual EAS Summit Held at STL Airport

–STL Currently Supports Over 50 Daily Flights to Seven EAS Communities

• EAS Communities Partnering With STL Have Benefited From a Steady Increase in Ridership

• Provide Marketing Funds to Both Air Choice One and the Local Community

• Market Vacation Packages to STL and Beyond and to Local Communities From STL

• Expedited Security Passes—Passengers With Connections Enter Security Through First/Business Class Line

• Discount Coupons for Airport Shopping and Concessions

• NASHVILLE INTERNATIONAL AIRPORT (BNA) INITIATIVES 

• EAS Communities Receiving Reliable Service to Hub Airports Have Benefited From a Steady Increase in 

Ridership

• Market Vacation Packages to BNA and Beyond and to Local Communities From BNA

• Air Choice One Flights will be Serviced by American Airlines

09/13/2011
Market Growth Strategy –

Partnering With the Community 

09/13/2011

Air Choice One is dedicated to working with your community 

to reinvigorate the service at your airport and sustain growth 

that will launch us into the future. 

• WE ARE YOUR NEIGHBORS

• Corporate Headquarters in Midwest

• Increase Local Career Opportunities 

• WE ARE IN YOUR COMMUNITY

• Routine On-Site Sales Visits

• Chamber of Commerce Participation and Membership 

• Airport Affiliate Participation 

• STRONG PUBLIC RELATIONS AND MEDIA OUTREACH 

• Business Incentive Programs

• Travel Agent Discounts

• Business to Business Communication

• Attendance at Public Events

• WE KEEP YOU INFORMED

• Monthly Airport Board Updates
Market Growth Strategy –

Marketing Investment

09/13/2011

Air Choice One reinvests in our served communities. 

• TRADITIONAL MEDIA

• Radio-Talk Shows/Commercials

• TV Commercials and Event Coverage

• Print-Newspaper/Magazines

• Billboards

• Web Based

– E-Blasts- Constant Contact

– Monthly E-Mail Promotions

– City Representation on Our Website 

• SOCIAL MEDIA

• Twitter, Facebook, Linked In

• INTERACTIVE MEDIA

• Contests

• You Tube/Videos 

• EVENTS AND SPONSORSHIPS

• Local Charitable Support-March of Dimes, Make-A-Wish Foundation, Red Cross, etc.

• Business/Community Support-Golf Tournaments, Business Luncheons, Air Shows, etc.

• COMMUNITY TICKET OFFICE
Market Growth Strategy –

Reliability & Growth

• CONSISTENT SERVICE IS KEY

• Proven Success in Other EAS Markets

• Builds Passenger Confidence in Carrier

• Dedicated Aircraft for your Airport

– 102% Flight Completion Ratio as 

Reported by DOT YR 2010

– Spare Aircraft Availability

• AIR CHOICE ONE’S REVENUE 

INCREASED BY OVER 20% YE 2010 VS. 

2009

09/13/2011

75

80

85

90

95

100

105

Am. 

Eagle

Gr. LakesSea Port Air 

Choice

Completion %

Airline

Airline Completion Ratios

Works Cited: T-100 Segment 

Report DOT 2010 Calendar Year
Market Growth Strategy –

Accessibility

• VISIBILITY

• Global Distribution Systems

–Apollo, Worldspan, Travelport, 

Amadeus, etc.

• Consumer Sites

–Expedia, Travelocity, Priceline, 

Orbitz, etc.

• Web based booking

–www.airchoiceone.com

• Call Center

–Open 7 Days a Week

• CONNECTIVITY

• United Airlines Agreement

• Additional Legacy Agreements Pending

09/13/2011
Market Growth Strategy –

Pricing 

Air Choice One offers the right price for the 

right ticket at the right time. 

We take all things into consideration and 

enter the market with low fares. We work 

hard to establish a winning price point 

through targeted market analysis. We 

believe consistent pricing builds consumer 

confidence. 

• BUILDING & SUSTAINING RIDERSHIP 

THROUGH PRICE

• Introductory Fares Peak Interest and 

Drive Passengers to Air Choice One 

and Your Airport

• On-Going Affordable Fares = Full 

Planes!

• Full Planes Establish the Customer 

Base Needed to Reduce Future 

Subsidy Requirements 

09/13/2011

0

500

1000

1500

2000

2500

3000

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

# of Passengers

Month of Service

Air Choice One Ridership Growth

EAS Markets 2010-2011*

2010

2011 *Numbers Reflect O & D
Marketing Growth Strategy -

New Hub, New Opportunities

ST. LOUIS’ COMBO OF LOW FARE CARRIERS AND ENDLESS CONNECTIONS ARE THE 

KEY TO SELLING MORE TICKETS!

09/13/2011

*Source : Southwest Airlines Website, September 2011, 14 Day Advance Purchase 

Sample 

St. Louis

Fares

Destinations

(One Way)

ACO 

Fare

Southwest 

Fare*

Total

Fare

LAS: Las Vegas, NV $49 $183 $232

LAX: Los Angeles, CA $49 $141 $190

LGA: New York, NY $49 $134 $183

FLL: Fort Lauderdale, FL $49 $154 $203

DAL: Dallas, TX $49 $88 $137

ORD: Chicago, IL $49 $0 $49

• Air Choice One Operates from Gate 

E33, Terminal 2

• 244 Daily Flights to 60 Domestic & 

International Markets as of August, 

2011.

• More than 24,700 Daily Outbound 

Seats.
Marketing Growth Strategy -

New Hub, New Opportunities

07/12/2011

ST. LOUIS SHUTTLE SERVICE

To enhance our hassle-free travel 

experience Air Choice One provides ramp 

side transfer service to and from all 

concourses for connecting flights at 

Lambert St. Louis International Airport. 

Ramp side service means Air Choice One 

passengers remain within the secure area 

of the airport and are not required to clear 

TSA a second time. 
Marketing Growth Strategy -

New Hub, New Opportunities

NASHVILLE’S COMBO OF LOW FARE CARRIERS AND ENDLESS CONNECTIONS ARE THE 

KEY TO SELLING MORE TICKETS!

09/13/2011

• Air Choice One will Operate from 

Gate C13 

• 380 Daily Flights to 70 Markets as 

of June, 2011

• Serving More than 10 Million 

Passengers Per Year

*Source : Southwest Airlines Website, September 2011, 14 Day Advance Purchase 

Destinations

(One Way)

ACO 

Fare

Southwest 

Fare*

Total

Fare

LAS: Las Vegas, NV $39 $193 $232

LAX: Los Angeles, CA $39 $157 $196

LGA: New York, NY $39 $99 $138

FLL: Fort Lauderdale, FL $39 $113 $152

DAL: Dallas, TX $39 $128 $167

ORD: Chicago, IL $49 $0 $49

Sample 

Nashville

Fares
Market Growth Strategy -

BONUS Service to Chicago

09/13/2011

WE ARE OFFERING TWO HUBS & ADDITIONAL FLIGHTS TO BETTER SERVE THE 

NEEDS OF THE COMMUNITY

We are aware of the advantages additional frequency and hub options offer your 

passengers. To provide an optimum level of service Air Choice One will also offer nonsubsidized air service to ORD and an additional non-subsidized flight to BNA. Air 

Choice One will work with the community to determine scheduling needs for these 

additional flights. We understand the importance of smooth and timely connectivity for 

local corporate and pleasure travelers. 

NON-SUBSIDIZED SERVICE TO CHICAGO & NASHVILLE

• Increased Passenger Options Will Grow Ridership

• Accommodate Local Corporate & Pleasure Travel Needs

• Increase Capacity Through Additional Flight Segments

• Dual Hubs Increase Connectivity
Options Index

Owensboro, Kentucky

OPTION 2, 2 YEAR SERVICE – STL SERVICE

CESSNA GRAND CARAVAN

Owensboro, Kentucky – Lambert St. Louis International Airport

Cessna Grand Caravan 21 Round Trips Per Week Subsidized + 10 Round Trips Per Week Non-subsidized

09/13/2011

OPTION 1, 2 YEAR SERVICE – STL SERVICE

CESSNA GRAND CARAVAN

Owensboro, Kentucky – Lambert St. Louis International Airport

Cessna Grand Caravan 18 Round Trips Per Week Subsidized + 10 Round Trips Per Week Non-subsidized

OPTION 4, 2 YEAR SERVICE – STL SERVICE

CESSNA GRAND CARAVAN

Owensboro, Kentucky – Nashville International Airport

Cessna Grand Caravan 21 Round Trips Per Week Subsidized + 10 Round Trips Per Week Non-subsidized

OPTION 3, 2 YEAR SERVICE – BNA SERVICE

CESSNA GRAND CARAVAN

Owensboro, Kentucky – Nashville International Airport

Cessna Grand Caravan 18 Round Trips Per Week Subsidized + 10 Round Trips Per Week Non-subsidized
Owensboro, Kentucky – Cessna Grand Caravan 

Option 1: 2 Year Service

18 Total Round Trips Per Week – Based on 98% Completion Rate

Owensboro, Kentucky – Lambert St. Louis International Airport – Caravan

Operation Revenues

OWB-STL Revenues $ 369,950.00

Other Revenues 3,699.50

Total Operating Revenues $ 373,649.50

Direct Operating Expenses

Flying Operations $ 194,629.68

Fuel and Oil 435,970.48

Maintenance 372,335.04

Aircraft Leases 375,000.00

Total Direct $1,377,935.20

Marketing 50,000.00

Indirect 361,152.98

Total Operating Expenses $1,789,088.18

Operating Loss $1,415,438.68

Profit Element (5% total Oper. Exp.) 89,454.41

Compensation Required $1,504,893.09

Compensation per PAX $199.32

Compensation per Departure $818.05

# Passengers: 7,550

Average Fare: $49.00

Departures: 1,840

Block Hours: 1,692

Revenue Passenger Miles: 1,411,850

Available Seat Miles: 3,087,564

09/13/2011

Representative Schedule

Schedule Items Shown in Green = Non-Subsidized

Departure Arrival

OWB 5:45 AM STL 6:45 AM

STL 7:15 AM OWB 8:15 AM

OWB 8:30 AM ORD 10:15 AM

ORD 11:00 AM OWB 12:45 PM

OWB 1:30 PM STL 2:30 PM

STL 2:45 PM OWB 3:45 PM

OWB 4:00 PM STL 5:00 PM

STL 5:15 PM OWB 6:15 PM

OWB 6:30 PM STL 7:30 PM

STL 8:00 PM OWB 9:00 PM
Owensboro, Kentucky – Cessna Grand Caravan 

Option 2: 2 Year Service

21 Total Round Trips Per Week – Based on 98% Completion Rate

Owensboro, Kentucky – Lambert St. Louis International Airport – Caravan

Operation Revenues

OWB-STL Revenues $ 387,688.00

Other Revenues 3,876.88

Total Operating Revenues $ 391,564.88

Direct Operating Expenses

Flying Operations $ 205,069.41

Fuel and Oil 501,834.14

Maintenance 376,937.11

Aircraft Leases 325,000.00

Total Direct $1,408,840.66

Marketing 50,000.00

Indirect 418,607.78

Total Operating Expenses $1,877,448.44

Operating Loss $1,485,883.56

Profit Element (5% total Oper. Exp.) 93,872.42

Compensation Required $1,579,755.98

Compensation per PAX $199.67

Compensation per Departure $736.07

# Passengers: 7,912

Average Fare: $49.00

Departures: 2,146

Block Hours: 1,953

Revenue Passenger Miles: 1,479,544

Available Seat Miles: 3,602,159

09/13/2011

Representative Schedule

Schedule Items Shown in Green = Non-Subsidized

Departure Arrival

OWB 5:45 AM STL 6:45 AM

STL 7:15 AM OWB 8:15 AM

OWB 8:30 AM ORD 10:15 AM

ORD 11:00 AM OWB 12:45 PM

OWB 1:30 PM STL 2:30 PM

STL 2:45 PM OWB 3:45 PM

OWB 4:00 PM STL 5:00 PM

STL 5:15 PM OWB 6:15 PM

OWB 6:30 PM STL 7:30 PM

STL 8:00 PM OWB 9:00 PM
Owensboro, Kentucky – Cessna Grand Caravan 

Option 3: 2 Year Service

18 Total Round Trips Per Week – Based on 98% Completion Rate

Owensboro, Kentucky – Nashville International Airport – Caravan

Operation Revenues

OWB-BNA Revenues $ 284,700.00

Other Revenues 2,847.00

Total Operating Revenues $ 287,547.00

Direct Operating Expenses

Flying Operations $ 225,351.00

Fuel and Oil 344,851.42

Maintenance 283,298.40

Aircraft Leases 375,000.00

Total Direct $1,228,500.82

Marketing 50,000.00

Indirect 353,901.36

Total Operating Expenses $1,632,402.18

Operating Loss $1,344,855.18

Profit Element (5% total Oper. Exp.) 81,620.11

Compensation Required $1,426,475.29

Compensation per PAX $195.41

Compensation per Departure $775.43

# Passengers: 7,300

Average Fare: $39.00

Departures: 1,840

Block Hours: 1,288

Revenue Passenger Miles: 839,500

Available Seat Miles: 1,898,770

09/13/2011

Representative Schedule

Schedule Items Shown in Green = Non-Subsidized

Departure Arrival

OWB 6:00 AM BNA 6:40 AM

BNA 7:20 AM OWB 8:00 AM

OWB 8:30 AM ORD 10:15 AM

ORD 11:00 AM OWB 12:45 PM

OWB 1:30 PM BNA 2:10 PM

BNA 2:30 PM OWB 3:10 PM

OWB 3:30 PM BNA 4:10 PM

BNA 4:30 PM OWB 5:10 PM

OWB 5:30 PM BNA 6:10 PM

BNA 8:00 PM OWB 8:40 PM
Owensboro, Kentucky – Cessna Grand Caravan 

Option 4: 2 Year Service

21 Total Round Trips Per Week – Based on 98% Completion Rate

Owensboro, Kentucky – Nashville International Airport – Caravan

Operation Revenues

OWB-BNA Revenues $ 306,150.00

Other Revenues 3,061.50

Total Operating Revenues $ 309,211.50

Direct Operating Expenses

Flying Operations $ 225,351.00

Fuel and Oil 396,617.76

Maintenance 329,012.46

Aircraft Leases 375,000.00

Total Direct $1,325,981.22

Marketing 50,000.00

Indirect 410,718.58

Total Operating Expenses $1,786,699.80

Operating Loss $1,477,488.30

Profit Element (5% total Oper. Exp.) 89,334.99

Compensation Required $1,566,823.29

Compensation per PAX $199.60

Compensation per Departure $730.05

# Passengers: 7,850

Average Fare: $39.00

Departures: 2,146

Block Hours: 1,502

Revenue Passenger Miles: 902,750

Available Seat Miles: 2,215,231

09/13/2011

Representative Schedule

Schedule Items Shown in Green = Non-Subsidized

Departure Arrival

OWB 6:00 AM BNA 6:40 AM

BNA 7:20 AM OWB 8:00 AM

OWB 8:30 AM ORD 10:15 AM

ORD 11:00 AM OWB 12:45 PM

OWB 1:30 PM BNA 2:10 PM

BNA 2:30 PM OWB 3:10 PM

OWB 3:30 PM BNA 4:10 PM

BNA 4:30 PM OWB 5:10 PM

OWB 5:30 PM BNA 6:10 PM

BNA 8:00 PM OWB 8:40 PM
The Best Choice to Succeed

09/13/2011

• Proven Enplanement Increase in EAS 

Markets

• Successful Pricing Strategy

• Demonstrated Growth in Community Support 

• Proven Reliability 

• Outstanding Completion Ratio

• Great Hub Connectivity

• Successful Marketing and Public Relations 

Outreach

• Raise Awareness About Local Air Service

• We Cater to Community and Business Needs

We Look Forward to Serving You!