## BEFOR E TH E DEPARTMEN T O F TRANSPORTATIO N WASHINGTON , D.C . Essential ai r

servic e a t PRESQU E ISL E /

HOULTON , MAIN E Docke t DOT-OST-2000-801 2

PROPOSA L O F COLGA N AIR , INC
. T O PROVID E SUBSIDIZE D ESSENTIA L AI RSERVIC E T O TH E COMMUNIT Y O F PRESQU E ISL E / HOULTON , MAIN E

Communication s wit

h respec t t o thi s documen t

shoul db e directe dt o : Dou g Shocke y Presiden t Colga n Air , Inc
. 176 9 Parago n Driv e Suit e 100 Memphis , T N 3813 2 (703 ) 656-230 7BEFOR E TH E DEPARTMEN T O F TRANSPORTATIO N

WASHINGTON , D.C
. Essentia l ai r

servic e a t PRESQU E ISL E /

HOULTON , MAIN E Docke t DOT-OST-2000-801 2

PROPOSA L O F COLGA N AIR , INC
. T O PROVID E SUBSIDIZE D ESSENTIA L AI RSERVIC E T O TH E COMMUNIT Y O F PRESQU E ISL E / HOULTON , MAIN E B y orde r 2010-3-3 , th e Departmen t requeste dproposal s fro

mcarrier s intereste din providin g Essential Ai r

Servic e fo

r afutur e two-yea r period
. Colgan Air , Inc. , awholl y owne dsubsidiar y o f Pinnacl e Airline s Corp. , (hereinafter "Colgan" ) respectfull y submit s aproposal t o continu e t o provid e subsidize dai r servic e betwee n th e communit y o f Presqu e Isl e /

Houlton , Main e an dBosto n Loga n International Airport
. Thi s proposal woul drequir e a

n annual subsidy o f

$2,812,85 3 Th e propose dservic e option s fo r th e Northern Main e communit y i s a s follows : Presqu e Isl e / Houlton , M

E 1 9 round-trip s pe r

week operate da s non-sto p servic e to Bosto n Logan
. The servic e wil l utiliz e aSaa

b 340 , a3 4 passenge r

cabi n clas s aircraf

t operate db y acre w o f

tw o pilot s an da fligh t attendant
. Du e to th e lengt

h o f hau l an dlengt

h o f flight tim e betwee n Presqu e Isl e an dBoston , alon g wit h alternate airpor

t requirement s du e to certai n type s o f weather condition s an dColga

n Air' s curren t FAA approve dpassenge r

an dbaggag e weights , th e Saa b 34 0 aircraf

t i s restricte dunder

IF R condition s betwee n BO S an dPQI
. O n th e BO S to PQ I leg , w e are limite dto 2 8 passenge r seat s usin g MH T a s a

n alternate or

3 0 passenge r

seat s usin g BGRa s a

n alternate
. Unde

r IF Rcondition s fromPQI t o BOS , w e ar

e limite dto 3 1 passenge r

seat s usin g MH T a s a

n alternate
. Therefore , 3 roun dtrip s ada

y are require dt o mee t

th e community' s guarantee d6 7 seat s per da y in eac h direction
. Colga n i s aregional airlin e operatin g Saa b 34 0 aircraft
. Colga

n operate s regional schedule d servic e a s U S Airway s Expres s under agreemen t

wit h US Airways
. Th e service s offere db y Colga n allo w seamles s connectio n to U S Airway' s domesti c an dinternational rout e syste mvi ath e U S Airway s focu s cit

y operatio n a

t Bosto n Loga

n International Airport
. Colga n Ai r ha s alon g operatin g histor

y wit h US Airway s a

t Bosto n Loga

n an dha s consistentl y demonstrate da commitment

t o outstandin g passenge r

servic e t o th e communitie s w e serve . Th e schedul e proposal attache dpresent s optimize dtimin g to maximiz e connectin g option s wit h th e U S Airway s syste mout

o f Bosto n Logan
. I n addition , th e option s provid e attractiv e schedulin g option s fo r bot h busines s an dleisure traveler s utilizin g U S Airway' s membershi p i n th e Sta r Allianc e Networ

k whic h ha s aconsiderabl e domesti c an dinternational presenc e a t Bosto n Loga

n International Airport
. Respectfull y submitted , Dou g Shocke y Presiden t Colgan Air , Inc
.Annua l Statistic s

EA S Cycle s (1 9 roun dtrip s / 3 8 segment s pe r

w^eek ) Estimate dPassenger s Carrie d Bloc k Fligh t Blk/Fl t Rati o 1,98 2 25,77 6 3,48 5 2,86 3 82 % Avai l Seat s (av g 3 0 seat s pe r cycle ) RPM s ASM s Loa dFacto r 59,46 0 8,549,89 9 19,722,88 2 43 %

Annua l Profi t

/ (Loss ) Summar y Pro-Rat e Revenu e 3,608,64 0 Tota l Revenu e 3,608,64 0

Fue l M X Operation s Fligh t Operation s Groun dServic e Landin g Fee s Ticketin g an dPassenge r Relate d Aviatio n Insuranc e 1,348,23 4 1,951,12 4 951,73 7 486,43 0 214,04 9 455,48 0 21,92 6 Tota l Cas h Cost s Ownershi p Tota l Overhea d Tota l Operatin g Ex p @ 97 % Completio n Operatin g Income/(Loss ) EA S Cycle s a t

97 % Margi n at

5 % Tota l Economi c Cos t

/ Subsid y Subsid y Pe r

Departur e a t

97 % 5,428,98 1 300,00 0 386,72 7 6,115,70 8 (2,507,068 ) 1,92 3 305,78 5 2,812,85 3 1,507.9 8

### Presqu e Isle , M E t o Bosto n Loga n Bosto n Loga n t o Prequ e Isle , M E

Depar t 6:15a m 10:55a m 3:40p m
7:30a m 12:30p m
10:55a m 3:40p m Weekday s

Arriv e 8:00a m 12:40p m 5:25p m Saturda y 9:15a m 2:15p m Sunda y 12:40p m 5:25p m Stop s

0 0 0
0 0
0 0 Depar t

8:35a m 1:25p m 7:20p m
10:20a m 3:00p m 1:25p m 7:20p m
CERTIFICAT E O F SERVIC E Weekday s Arriv e 10:25a m 3:10p m 9:05p m Saturda y 12:00p m 4:45p m Sunda y 3:10p m 9:05p m Stop s

0 0 0
0 0
0 0

I hereb y certif

y tha t I hav e cause dacop y o f

th e forgoin g Proposal to Provid e Subsidize d Essential Ai r

Servic e t o b e serve dthi s 25t h da y o f March , 2010 , upo n eac h o f th e followin g persons : Denni s DeVany Chief , EA S & Domesti c Analysi s Offic e o f Aviatio n Analysi s Unite dState s Departmen t

o f Transportatio n 40 0 Sevent

h Street , S.W. , Roo m6417 1 Washington , D.C
. 2059 0 Thoma s Steven s Cit y Manage r 1 2 2"' ' Stree t Presqu e Isle , M E 04769-245 9