November 12, 2014

Proposal of Hyannis Air Service, Inc. dba Cape Air to provide subsidized Essential Air Service for:

Ogdensburg, NY

To/From 

Boston via Albany 3x Daily

Docket DOT-OST-1997-2842 

Hyannis Air Service, Inc., dba Cape Air

Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601 

(508) 862-9719
Cape Air is delighted to have served Ogdensburg

for more than six years. Thanks for the great relationship!

• Cape Air started serving Ogdensburg on 

September 16, 2008

• Since then we have flown more than 

43,000 passengers to or from 

Ogdensburg

• Cape Air serves Ogdensburg three times 

daily to/from Boston, via Albany

• Fares are low, in 2014 averaging just $49 

net

• Serving Massena, Ogdensburg and 

Saranac Lake provides scaling to recover 

from irregular operations

1

Overview Cape Air’s Ogdensburg ticket counter
Record 

ridership!

Cape Air’s service at Ogdensburg has lifted the airport’s 

ridership to a modern high: over 10,000!

2

Source: US DOT T100 and Cape Air 

Ogdensburg ridership

Sum of both directions

2,635

1,0331,168

1,9261,6001,308

4,4644,328

3,779

3,312

4,784

1,166

3,899

4,429

6,675

9,612

10,077

0

2,000

4,000

6,000

8,000

10,000

12,000

1995199619971998199920002001200220032004200520062007200820092010201120122013

DOT data 

unavailable

Predecessors with larger aircraft
Cape Air’s high-frequency commuter service is the ideal 

complement to prospective Allegiant service; we would be 

delighted to help Allegiant service work at OGS

3

Allegiant A320-family leisure service High-frequency, connective commuter service

•Rocket to >10,000 enplanements

•Low fares

•Helps Ogdensburg Airport grow and thrive

•Strong prospects for sustained success

•Convenience and connectivity

•3 daily flights to two hubs

•Low fares

•Interline ability with all network airlines 

•Mature airline with a proven track record

These are symbiotic service models for Ogdensburg.

Let’s work together to make this dream a reality!
In every case in which Cape Air’s 9-seat aircraft took over 

year-round EAS service at a community in the Continental US 

ridership increased; 11 cases succeeding larger aircraft

Cape Air EAS Passengers vs. Previous Carrier

Continental US; At least one year of Cape Air subsidized EAS service

Previous

City Aircraft Type Annual Passengers 2013 Cape Air Passengers Change Percentage

Quincy, IL Beech 1900 3,628 19,905 16,277 449%

Marion, IL Beech 1900 4,374 20,339 15,965 365%

Cape Girardeau, MO Beech 1900 830 12,196 11,366 1369%

Kirksville, MO Piper Navajo 1,877 11,338 9,461 504%

Ft. Leonard Wood, MO Beech 1900 10,107 16,376 6,269 62%

Rutland, VT Beech 1900 4,312 10,561 6,249 145%

Owensboro, KY Cessna Caravan 1,284 7,523 6,239 486%

Ogdensburg, NY Beech 1900 4,947 10,077 5,130 104%

Saranac Lake, NY Beech 1900 5,519 10,449 4,930 89%

Massena, NY Beech 1900 6,309 9,256 2,947 47%

Augusta, ME Saab 340 8,177 11,000 2,823 35%

Rockland, ME Saab 340 12,316 14,393 2,077 17%

Lebanon, NH Saab 340 19,229 19,909 680 4%

Total 82,909 173,322 90,413 109%

Within the rules of the EAS program 4

Cape Air is a proven success
OVERVIEW

Cape Air

5
6

Cape Air has grown from a single aircraft and route in 1989 

to America’s largest commuter airline today

 First route was Boston – Provincetown, 

begun in October 1989 with one aircraft

 Today’s fleet

 76 Cessna 402s in four regions 

 Four Britten-Norman Islanders

 Two ATR-42s in Micronesia

 Operating up to 550 flights daily

 In 2013 flew 728,000 passengers

 Stable, mature and growing company

 Primarily a non-EAS airline, imposing 

free-market maturity and discipline 

Key facts

Cape Air: Leading the pack nine at a time

Photo courtesy Mark Garfinkel (August 7, 2000, Boston)
Cape Air 2014

• Annual revenue of $120M 

• Financially stable

• 44 airports served, 20 in EAS

• 83 aircraft

• A thriving partner in community air service!
Cape Air has grown steadily for ten years;

Thanks for being part of our success!

8

$41 

$52 $57 $57 

$71 

$77 

$85 

$99 $103 $108 

$120

$- 

$20 

$40 

$60 

$80 

$100 

$120 

$140 

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Millions

Revenue

Projected
San Juan

Mayaguez

St. Croix

Vieques

Tortola

St. Thomas

Anguilla

Nevis

Virgin Gorda

Culebra

Provincetown

Hyannis

Nantucket

Providence

New Bedford

Martha’s Vineyard

Augusta

Lebanon Rutland

Ogdensburg Saranac Lake

Massena

White Plains

Albany

Manhattan

Rockland

Bar Harbor

Boston

Cape Air Routes

October 2014

Ft. Leonard Wood

Cape Girardeau

Quincy Kirksville

St. Louis

Marion Owensboro

Havre Glasgow

Wolf Point

Sidney

Glendive

Billings

Map inset not to scale

Rota

Saipan

Guam

Micronesia

Denotes seasonal service

Proud to be America’s 

finest commuter airline! Block Island
One of Cape Air’s best features is interline connections 

with all of the legacy airlines plus JetBlue, giving 

Ogdensburg access to the world

10

We connect with all, while being beholden to none!

Cape Air is agnostic regarding with which airline our customers connect, 

providing Ogdensburg maximum options and vigorous fare competition, which 

drives down fares
Itineraries connecting between Cape Air and United are 

available on united.com; Ogdensburg is on united.com

11
At joint cities Cape Air’s connecting destinations 

appear on jetblue.com

12

Ogdensburg on 

jetblue.com!
Through Expedia and other OTAs, Cape Air connects EAS 

communities with most network airlines

13
14

Over more than 25 years in business Cape Air has 

invested in the airline features smaller communities need

Feature Established

Reliability

Tickets sold through 

Expedia, Orbitz, Travelocity

Interline e-ticketing 

with all legacy airlines

Checked luggage transfer

with all legacy airlines

TSA security program
Cape Air proposes continued service 

with our fleet of 76 Cessna 402s

15
Cape Air takes environmental sustainability seriously by 

investing in fuel-saving aircraft technologies and 

powering its offices with solar panels 

16
17

Cape Air’s Reservations Call Center

Cape Air has its own internal reservations center...

800-CAPE-AIR

(Where there is never a booking fee!)
...And a ticket office in 

downtown Ogdensburg. Local 

investment is Cape Air’s forte

18
Cape Air is your local airline

• Responsive to the Ogdensburg community

• Highly accessible

– Top executives (decision makers) always available to Ogdensburg

– Only 1 1⁄2 hours away by plane

• Strong relationship built—and trust earned—over six years of working together

– Together we have taken the airport from zero air service in summer of 2008 to record ridership 

in 2013. What a turn-around! 

• Independent! We control all infrastructure systems, so we don’t need “higher headquarters” 

permission to change fares, schedule, marketing, branding or anything else. We have the autonomy 

to be Ogdensburg’s local airline. 

19 Cape Air = no surprises
20

The key to Cape Air’s success is our friendly people...

Daffodil “Daffy” Day at Cape Air Reservations
21

...And our mantra: 

Have

A

Good

Time

Doing

It!

Make

Our

Customers

Happy,

And

Cape Air celebrates Valentine’s Day in the Caribbean
Marketing Ogdensburg’s air service is a key part of our 

job...and it’s great fun, too!

Cape Air employs a full-time regional 

marketing manager to oversee the $65,000 

marketing budget for Ogdensburg
Cape Air is pleased to propose continued service at 

Ogdensburg

23 Notes:

•Cape Air prefers a four-year reselection, offered at a discount

•See note on next slide regarding annual escalation factor

4-year option 

preferred

Drivers

Economics—Year 1 (see note) Year 1 Year 1

Daily RTs 3

Completion rate 97%

Pax/Dpt 5.0

Load Factor 56%

Fare (net) $48.58 

Pax Rev/Dpt $244.80 

Fuel $886,010 

Maintenance $1,058,964 

Pilots $255,058 

Ownership $362,882 

Stations $366,825 

Operating Fees $54,017 

Marketing $65,153 

General & Admin./Other $280,657 

Operating Expense $3,402,773 

Return of 5% $179,093 

Economic Expense $3,581,866 

Passenger Revenue $1,105,588 

Profit ($2,476,279)

Conforming 2-Year

Subsidy Required $2,476,279 

Per Departure $1,166 

Per Passenger $231 

4-Year Contract Discount $2,419,820 

Per Departure $1,139 

Per Passenger $226 
To align revenue with costs over time 

Cape Air proposes a 4% annual escalation factor

24

Annual subsidy including escalation

Two-year reselection OGS

Year 1 $2,476,279 

Year 2 $2,575,330 

Four-year reselection

Year 1 $2,419,820 

Year 2 $2,516,612 

Year 3 $2,617,277 

Year 4 $2,721,968 
25

Cape Air would be honored to be reselected at Ogdensburg!

 Proven service that yields record enplanements at Ogdensburg

 High-frequency non-stop service to/from Boston Logan, via Albany

 Offering the maximum frequency allowed by DOT

 Full interline connectivity, allowing same-ticket connections with the world

 Global distribution

 Ample fleet of back-up aircraft

 Robust marketing and downtown ticket office 

Cape Air offers the airline amenities Ogdensburg needs:

Cape Air: Ogdensburg’s Community Airline!
Thank You!

26

Hyannis Air Service, Inc., dba Cape Air

Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601 

(508) 862-9719