Essential Air Service Service at

Fort Leonard Wood, MO Docket 

under 49 U.S.C. 41731 et seq.

ALASKA JUNEAU AERONAUTICS, INC.

D/B/A

SEAPORT AIRLINES

PROPOSAL PROPOSAL TO PROVIDE PROVIDE ESSENTIAL ESSENTIAL AIR SERVICE SERVICE

AT

Fort Leonard Wood, MO

DOCKET

OST 1996‐1167OST 1996‐1167

Alaska Juneau Aeronautics, Inc. dba

SeaPort Airlines

7505 NE Airport Way, Portland, OR. 97218
Comp y an Overview

SeaPort SeaPort Airlines Airlines is a dba of Alaska Juneau Aeronautics, Aeronautics, an FAA certified certified scheduled scheduled

air service provider with 27 years experience in commercial aviation. Our company’s

foundation is built on efficient and reliable service to rural communities. Both

SeaPort Airlines and our sister company Wings of Alaska currently operate routes

under the Essential Air Service program, as well as un‐subsidized operations on

est bli h d tablished competitive routes.

Wings of Alaska is the premier airline serving Southeast Alaska. Providingscheduled passenger service, fast freight and charter service between Juneau and

Skagway, Haines, Hoonah, Gustavus, and Kake, and weekly flights to Excursion Inlet.

Wings of Alaska grew in reputation and size, becoming one of the most successful

regional air carriers in Alaska, now comprised of a fleet of seven planes from Cessna

206 and 207’s to Cessna Grand Caravans.
IT S’ ABOUT TIME ABOUT TIME : SeaPort SeaPort Airlines Airlines currently currently operates operates 36 daily

scheduled flights in five Northwest cities and 24 daily schedule

in five Mid‐South cities. Effective April 19th, 2010 SeaPort Airli

began operating operating 8 daily flights flights in the Midwest. Midwest.

EAS 6 RoutesSpeculative 1 Route

SeaPort Airlines

State Contractual 2 Routes
Bringing Bringing Southeast Southeast Alaska Closer Together: Together: Wings of Alaska cu

cu

operates 36 daily scheduled flights to seven Southeast Alaska c

Wings of Alaska

EAS 2 RoutesSpeculative 5 Routes
Our Aircraft

SeaPort Airlines operates 7 Pilatus PC‐12 aircraft. The PC‐12 is a Swiss‐built

pressurized turboprop aircraft typically found in corporate aviation, but utilize

SeaPort SeaPort Airlines Airlines in a nine seat commuter commuter configuration configuration. The world s world's best‐sellin

sellin

turbine business aircraft, still in production today, the PC‐12 can shuttle you w

comfort and speed with each seat both a window and aisle.

Pilatus Pilatus, the world market leader in the manufacture manufacture of turboprop turboprop aircraft aircraft and 

only Swiss company to develop, produce and sell aircraft and training systems 

the world.http://www.pilatus‐aircraft.com
Our President

Robert (Rob) L. McKinney:

• Graduate of Purdue University -Aviation Technology, and holds MBA from Ellis College• Trained and experienced as commercial pilot in jets and turbo props, but always strived for 

opportunities to manage business aspects of flight operations in each company he served.

• In September, 2007, enticed by original investors and founders of SeaPort Airlines to join as 

employee, and tasked with establishing scheduled commuter airline service from Portland, OR tSeattle, WA.

• Currently, a partial owner and President for SeaPort’s three bases of operation – Portland, OR

Memphis, TN, and Juneau, AK, and working to establish additional routes and expand schedulemarket.

• Holds and utilizes vast knowledge of FAA regulations and has previous experience with Fede

Regulators.

“Growing up in a small town, I’m passionate 

about connecting rural America – the fabric of 

our society.”

July 23, 2010 Alasks Juneau Aeronautics, Inc. dba SeaPort Airlines
EAS History

Whereas many communities have been promised service that has never transSeaPort delivers Essential Air Service to eight communities: Excursion Inlet, Ala

k l k dl b k l d k

y

Kake, Alaska, Pendleton, Oregon, Jonesboro, Arkansas, El Dorado, Arkansas, H

Springs, Arkansas, Harrison, Arkansas, and Salina, Kansas. Additionally, SeaPo

serves Newport, OR and Astoria, OR under a combined state and federal grant

program.

In every case, after award, we have started on time, on budget, and with fares 

at or below that which we outlined in our bid, as compared to so many other 

who place bids with unreasonable fares that are never realized by the travelin

public.
Right-Sized for Ft. Leonard Wood

SeaPort proposes two daily direct round trips per day between Ft. Leonard Wood and K

well as two daily flights between Ft. Leonard Wood and St. Louis. This service level wil

than enough inventory inventory to provide provide for the historical historical traffic traffic of the last several several years, whil

capacity “right‐sized” and avoiding an unnecessary flooding of empty seats and resultin

operating costs. Please see Exhibit “2” for details.

SeaPort has constructed the schedule to maximize traffic flow with flights morning and 

SeaPort believes that traffic will increase in year two as the speed and convenience of o

become more familiar to the residents of these communities.

In addition,

a daily plane overnight in Ft. Leonard Wood adds reliability to the above sc

recommendation recommendation similar similar to the overnight overnight success success SeaPort SeaPort experiences experiences in our other EAS We are therefore able to offer these communities the best possible fit with:

• Comfortable and fast pressurized Pilatus PC‐12 aircraft

• Convenient schedules

• Aff d bl Affor

d

abl

e fares

• A reasonable and sustainable subsidy amount
SeaPort’s Proposed Plan

SeaPort Airlines emphasizes customer service and convenience, and in so doing our platform is reminisc

commercial air service of the past in that our passengers only need to arrive 20 minutes prior to departuany of our terminals.

In Kansas City and St. Louis, SeaPort SeaPort would use the business business aircraft aircraft center for an enhanced enhanced travel expe

expe

From either terminal we will provide complimentary shuttle van service to and from the main terminal f

passengers needing to connect to, or returning from, more distant destinations. This model has proven 

at our hub in Portland, OR, Memphis, TN, and Kansas City, MO and is no less convenient than a typical g

change—only with this one you get a complimentary shuttle ride.

Further, a no‐TSA model will offer the communities tremendous appeal for quick trips to and from Kansa

Louis, and other potential major market connections to be served by SeaPort. Finally, a no‐TSA model h

greatest potential to draw business and leisure traffic from Kansas City and St. Louis that would otherwi

by highway if a traditional TSA‐restricted airline was the only flight option.

L tl as y, the $89 d ll o ar fare in our proposal is an average fare. T l rave to Kansas City or St. L i ou s for as low 

one way. This fare is far less than the current operator.
No lines, never any waiting

SeaPort Airlines is unique in that it proactively markets to travelers the ease and convenieby passing TSA security screening Below are a few inherent cost saving benefits and cus

, yg

by‐passing TSA security screening. Below are a few inherent cost saving benefits and cus

benefits passed to you the airport when partnering with a carrier such as SeaPort Airlines

•Lower fares thanks to no gate fees

•Increase reliability in arrival and departure times

•Quicker turn times•Arrive just 20 minutes before departure, board, and go

•No lines. No rubber gloves. No need to take your shoes off.

•Complimentary shuttle service to and from the main terminal

WE FOUND WHAT AIR TRAVEL LWE FOUND WHAT AIR TRAVEL LEASE AND CONVENIENCE
Efficiency & Reach

 August 2010 full GDS visibility (Expedia, Travelocity, etc.)Interline agreement with US Airways

y

Interline agreement with US Airways Reservations available online at SeaPortAirlines.com, toll‐free at 888.573.27

through local travel agents

 Low Fares thanks to low operating costs and efficient aircraft equipment

 High‐frequency, non‐stop daily service – up to 8 segments in this proposal

 Customer focused bringing the convenience of a private plane to the averag

for the same cost as commercial airlines.
Current Service

Great Lakes is the current air service provider with flights to Kansas City although tvacating vacating mid‐contract contract. Non‐refundable refundable fares start at $119 00 $119.00 per segment segment but ma

$184.00

What can the Ft. Leonard Wood Airport Authority expect from SeaPort Airlines:

 Notification of any fare/schedule changes

 Community involvement through advertising/marketing

 A cohesive partnership focused on economic development and increased 

 Aff d bl Affordable fares

 A hassle‐free travel experience for your community

July 23, 2010 Alasks Juneau Aeronautics, Inc. dba SeaPort Airlines
EAS Testimonial

Larry Dalrymple – Airport Manager :

Pendleton Regional Airport

Larry Dalrymple Airport Manager :“Eastern Oregon Regional Airport at Pendleton had been struggling since schedule changes following 9/

carrier flying 37 seat aircraft. Low passenger count attributed to poor schedule, which then contributed 

passenger count. The carrier's solution was to bring in larger aircraft and fly to a different hub. The Airp

community balked at this suggestion and went in search of alternatives. The solution found through the was SeaPort Air flying a 9 passenger Pilatus, that would eliminate the need for TSA security as well as m

standby, saving the Airport personnel costs in an already short budget. The passengers have welcomed service, much better schedule, and are elated with "no security check" and stand by time. Passengers tolove the service", "great customer service", and "I'm sure glad I finally tried it, cause I'll be back".

In our particular market, the 9 passenger aircraft is perfect, and SeaPort Air provides the schedule, the p

and customer customer service service we need and desire ” desire.”
EAS Testimonial

Luci Larson – Former Mayor of the city of Salina Kansas & owner of Action Travel:

Salina Municipal Airport

Luci Larson Former Mayor of the city of Salina Kansas & owner of Action Travel:

The Department of Transportation (DOT) announced on the selection of SeaPort Airlines as Sa

essential air service provider. Service to Salina from Kansas City will start as early as April 19th 

daily roundtrip flights Sunday through Friday. “I understand the importance of having dependable, reliable air service with an affordable cost. 

SeaPort Airlines meet these needs, but excel by providing great customer service, a high level o

involvement and an eagerness to become a Salina partner.” Says Luci Larson - former Mayor oSalina and owner of Action Travel. The letter supports a few key deliverables that only SeaPorsupport, such as: greater frequency, a 9-seat “right sized” aircraft, affordable fares, military/gove

and an active community marketing plan. “I applaud their entrepreneurship and look forward to 

relationship relationship. Their presence here in the Midwest is a win Their presence here in the Midwest is a win-win situation for all of us win situation for all of us. The "door The "door-to

service they will provide will be truly appreciated by all passengers. Want to travel like rock star? 

Airlines!” Says former Mayor Larson.

July 23, 2010 Alasks Juneau Aeronautics, Inc. dba SeaPort Airlines
Customer Feedback

Ruth Ann Smith – Hot Springs to Memphis:

“Two hours before the flight I booked my ticket to Memphis from Hot Springs. Wow! What a surprise; it was 

convenient, great price, and impeccable service. It far exceeded my expectations and I will be flying to Mem

Airlines instead of driving from now on. The customer service was fabulous!”

Catherine Martin – Memphis to Harrison:

“I have never had such a positive experience connected with any airline. I read about Seaport Air last Octob

opened the Mid-South Route, but didn’t have the chance to fly until March. Usually the dread of the process 

just grin and bear it; however, with SeaPort Air I could arrive 15 minutes early. The hassle free no TSA is womade me feel special. I have flown twice in the last 2 months and the customer service from start to finish is owill be a regular customer and have already recommended the airline to several associates Thank you Seawill be a regular customer and have already recommended the airline to several associates. Thank you, Sea

making me feel like a queen!”Barbara Covell – Portland to Newport:

“This is a class operation, very professional and the staff provide the kind of customer service that most peop

dream about. I have flown several times in order to avoid the LONG car trip from the Oregon central coast to airport. Today my husband had to get to the emergency room at Portland VA Medical Center. The staff and 

held the flight in Newport while we made haste to get there. If that wasn't enough, they had a taxi waiting wh

Portland airport. Many, many thanks!”
Community Involvement

July 23, 2010 Alasks Juneau Aeronautics, Inc. dba SeaPort Airlines
Recent News

For a list of SeaPort news articles visit http://www.SeaPortAir.com/pressEconomy doesn't ground airline start‐ups (click here)USA Today :: 11/16/2009

They're just realistic about the history of this industry and the likelihood (a) new start‐up 

survive," says Craford, who helped launch SeaPort in ...

Scheduled air service returns to Region 8 (click here)KAIT TV:: 10/26/2009SeaPort Airlines will link Memphis and four Arkansas cities » The ... (click here)Gloria Levston of Signature Flight Support adds fuel to a SeaPort Airlines Pilatus PC12 pla

SeaPort facility at Memphis International Airport The ...
Recent SeaPort News

‘This is

a

great da

y for El Dorado’

SeaPort Airlines welcomed as new air service provider

By: John WorthenPublished: 10/28/2009Approximately 50 people gathered Tuesday morning at the South Arkansas Regional Airport terminal to celebrate the return of air service to El Dorado.

Representatives from SeaPort Airlines, who arrived on a flight from Memphis International Airport to commemorate the occasion, were greeted with cheers and s

local officials.

The Portland, Ore.‐based company will offer round‐trip flights between El Dorado and Memphis on the Swiss‐built Pilatus PC‐12, a pressurized turbo‐prop airplane

are 4:10 a.m., 11:20 a.m., and 8:20 p.m., according to SeaPort’s website.

SeaPort will also operate round‐trip flights to Memphis from Harrison, Hot Springs and Jonesboro.

These communities, along with El Dorado, have been without regular service since 2008, when Air Midwest, a subsidiary of Mesa Airlines, pulled out of the market

companies that submitted p p ro osals to the Department of Transportation and signed a two‐year contract to provide the service for a $, , 6 047 789 federal subsidy. T

subsidizes airlines to provide service that wouldn’t be profitable on the open market.

SeaPort officially opened Monday in El Dorado with a 4:30 a.m. flight from SARA to Memphis International. At the ceremony Tuesday, local officials touted SeaPor

El Dorado’s economic engine hum.

Jeff Teague, chairman of the El Dorado Airport Commission, called the day a “bright one,” despite cloudy, mist‐filled skies that had the SARA socked in.

Getting this airline “has been an arduous task, but we got the best service we could have,” Teague said. “Transportation is the key issue in economic development

Dorado for the past year or so has really not been a good thing. And now, with all that’s going on in El Dorado, with the conference center and the new high schoo

icing on the cake.”

Kent Craford, chief executive officer of SeaPort, called Tuesday “an exciting day for us at SeaPort. We feel that our small nine‐passenger airplane is a perfect fit for 

the fact that we will be offering three trips a day allows for better connection service and same day travel opportunities to Memphis and beyond. We are your hom

El Dorado Mayor Mike Dumas spoke highly of SeaPort officials and said he looks forward to working with them throughout their tenure here.

“This is a great day for El Dorado,” Dumas said. “We have been working on this for more than a year, and it’s great to finally have air service back in El Dorado. We 

thank you for your service.”

More information and reservation information is available by logging on to the SeaPort Web site at www.seaportair.com.
SeaPort welcomes this opportunity to be chosen to provide essential air

service at Ft. L d eonar W d oo , Mi i ssour for the next two year peri do . We

bring a fresh approach, and believe we have presented a proposal that will

meet the EAS needs of the communities at reasonable subsidy levels. Thank

you for your consideration.

Rob McKinney

Respectfully submitted,

McKinney

PresidentSeaPort Airlines7505 NE Airport WayPortland, OR 97218

(971) 340‐1711

www.SeaPortAirlines.com
Alaska Juneau Aeronatics, Inc. d/b/a SeaPort Airlines

Essential Air Service Proposal

Docket OST-2008-0209

Annual Subsidy Requirement

October 2010 - September 2011

St. Louis Kansas City

Factor JLN-STL JLN-MCI

Revenue:

 Passenger: Forecasted Passengers 4,800 4,800 Average Revenue / Pax:

 Current: Oct 2008 - Sept 2009 89.00 $ 89.00 $ 

 Revenue / Pax Change 1.00% 1.00%

 Average Revenue / Pax $ 89.89 89.89 $ 

 Passenger Revenue 431,472 $ 431,472 $ 

 Other Revenue: Ratio to Passenger Revenue 1.00% 1.00% Other Revenue 4,315 $ 4,315 $ 

 Total Revenue 435,787 $ 435,787 $ 

Operating Expenses

 Completed Block Hours 991.20 1,274.40 Direct Flight Crews $ 73,448 74.10 94,433

 Fuel

 Gallons / Block Hour 74 Into Plane Cost / Gallon 3.90 $ 

 Fuel Cost / Block Hour $ 286,060 288.60 367,792

 Insurance $ 37,279 37.61 47,930

 Maintenance $ 209,341 211.20 269,153

 Aircraft Lease $ 151,654 153.00 194,983

 Total Direct 757,782 $ 974,291 $ 

 Indirect Expense 49.00% 477,403 371,313

 Total Operating Exp 1,129,095 $ 1,451,694 $ 

Return 5.00% 72,585 56,455Total Economic Cost $ 1,524,279 1,185,550 $ 

Surplus / (Deficit) (749,763) $ (1,088,492) $

Annual Subsidy $ 1,088,492 749,763 $ 

Completed Departures 1,416 1,416Subsidy Per Departure 529.49 $ 768.71 $ 
Alaska Juneau Aeronautics, Inc. d/b/a SeaPort Airlines

Essential Air Service Proposal

Docket OST-2008-0209

Annual Subsidy Requirement

October 2011 - September 2012

St. Louis Kansas City

Factor TBN-STL TBN-MCI

Revenue:

 Passenger Forecasted Passengers 5,040 5,040 Average Revenue / Pax

 Estimate: Oct 2009 - Sept 2010 89.89 $ 89.89 $ 

 Revenue / Pax Change 0.00% 0.00%

 Average Revenue / Pax $ 89.89 89.89 $ 

 Passenger Revenue 453,046 $ 453,046 $ 

 Other Revenue: Ratio to Passenger Revenue 1.00% 1.00% Other Revenue 4,530 $ 4,530 $ 

 Total Revenue 457,576 $ 457,576 $ 

Operating Expenses

 Completed Block Hours 991.20 1,274.40 Direct Flight Crews $ 74,917 75.58 96,322

 Fuel

 Gallons / Block Hour 74 Into Plane Cost / Gallon 4.10 $ 

 Fuel Cost / Block Hour $ 300,363 303.03 386,181

 Insurance $ 37,279 37.61 47,930

 Maintenance $ 219,809 221.76 282,611

 Aircraft Lease $ 151,654 153.00 194,983

 Total Direct 784,022 $ 1,008,027 $ 

 Indirect Expense 49.00% 493,933 384,171

 Total Operating Exp 1,168,193 $ 1,501,960 $ 

Return 5.00% 75,098 58,410Total Economic Cost $ 1,577,058 1,226,603 $ 

Surplus / (Deficit) (769,027) $ (1,119,482) $

Annual Subsidy $ 1,119,482 769,027 $ 

Completed Departures 1,416 1,416Subsidy Per Departure 543.10 $ 790.59 $ 
Alaska Juneau Aeronautics, Inc. d/b/a SeaPort Airlines

Essential Air Service Proposal

Docket OST-2008-0209

Proposed Departure Schedules

October 2010 - September 2012

Sched Sched Sched 

Sched Block Sched Block Block Sched Comp 

City Block Sched Hours / Freq / Hours / Hours / Seg / Comp Seg / 

Destination Pair Time Seg Seg Week Week

Year

Year Factor Year

STL TBN 0825

STL 0900 1 0.70 7 4.90 254.80 364 97.50% 354 

STL 0920

TNB 0955 1 0.70 7 4.90 254.80 364 97.50% 354 

TBN 1325

STL 1400 1 0.70 7 4.90 254.80 364 97.50% 354 

STL 1420

TBN 1455 1 0.70 7 4.90 254.80 364 97.50% 354 

 19.60 2.80 1,019.20 1,456.00 1,416.00 

MCI TBN 0510

MEM 0630 1 0.90 7 6.30 327.60 364 97.50% 354 

MEM 0645

TBN 0805 1 0.90 7 6.30 327.60 364 97.50% 354 

TBN 1010

MEM 1130 1 0.90 7 6.30 327.60 364 97.50% 354 

MEM 1150

TBN 1310 1 0.90 7 6.30 327.60 364 97.50% 354 

 3.60 4 7 25.20 1,310.40 1,456.00 1,416.00 
Alaska Juneau Aeronautics, Inc. d/b/a SeaPort Airlines

Essential Air Service Proposal

Docket OST-2008-0209

Performance Summary

October 2010 - September 2011

St. Louis Kansas City

TBN-STL TBN-MCI

Performance:

Rev Block Hours Scheduled 1,019.20 1,310.40 Completion % 97.30% 97.30%

 Completed Block Hours 991.20 1,274.40

Rev Departures Scheduled 1,456 1,456 Completion % 97.30% 97.30%

 Completed Departures 1,416 1,416

Rev Passengers PY 2007 Passengers 4,800 4,800 Forecasted Growth Rate 0.00% 0.00%

 Total Passengers

 Average Segment Share 100.00% 100.00%

 Segment Passengers 4,800 4,800

 Available Seats 12,744 12,744

 Average Load Factor 37.66% 37.66%

 Average Pax / Flight 3.4 3.4
Alaska Juneau Aeronautics, Inc. d/b/a SeaPort Airlines

Essential Air Service Proposal

Docket OST-2008-0209

Performance Summary

October 2011 - September 2012

St. Louis Kansas City

TBN-STL TBN-MCI

Performance:

Rev Block Hours Scheduled 1,019.20 1,310.40 Completion % 97.30% 97.30%

 Completed Block Hours 991.20 1,274.40

Rev Departures Scheduled 1,456 1,456 Completion % 97.30% 97.30%

 Completed Departures 1,416 1,416

Rev Passengers Oct 2009 - Sept 2010 Est Pax 4,800 4,800 Forecasted Growth Rate 10.00% 10.00%

 Total Passengers

 Average Segment Share 100.00% 100.00%

 Segment Passengers 5,280 5,280

 Available Seats 12,744 12,744

 Average Load Factor 41.43% 41.43%

 Average Pax / Flight 3.7 3.7