EssentialAirServiceServiceatFortLeonardWood,MODocketOST1996‐1167under49U.S.C.41731etseq.ALASKAJUNEAUAERONAUTICS,INC.D/B/ASEAPORTAIRLINESPROPOSALTOPROVIDEESSENTIALAIRSERVICEPROPOSALPROVIDEESSENTIALSERVICEATFortLeonardWood,MODOCKETOST1996‐1167July15,2010OST1996‐1167AlaskaJuneauAeronautics,Inc.dbaSeaPortAirlines7505NEAirportWay,Portland,OR.97218CompanOverviewySeaPortAirlinesisAeronautics,certifiedscheduledSeaPortAirlinesadbaofAlaskaJuneauAeronautics,anFAAcertifiedscheduledairserviceproviderwith27yearsexperienceincommercialaviation.Ourcompany’sfoundationisbuiltonefficientandreliableservicetoruralcommunities.BothSeaPortAirlinesandoursistercompanyWingsofAlaskacurrentlyoperateroutesundertheEssentialAirServiceprogram,aswellasun‐subsidizedoperationsont bli h destablishedcompetitiveroutes.WingsofAlaskaisthepremierairlineservingSoutheastAlaska.Providingscheduledpassengerservice,fastfreightandcharterservicebetweenJuneauandSkagway,Haines,Hoonah,Gustavus,andKake,andweeklyflightstoExcursionInlet.WingsofAlaskagrewinreputationandsize,becomingoneofthemostsuccessfulregionalaircarriersinAlaska,nowcomprisedofafleetofsevenplanesfromCessna206and207’stoCessnaGrandCaravans.IT’ABOUT TIME:SeaPortAirlinescurrentlyoperatesdailySABOUTTIMESeaPortAirlinescurrentlyoperates36scheduledflightsinfiveNorthwestcitiesand24dailyscheduledflightsinfiveMid‐Southcities.EffectiveApril19th,2010SeaPort Airlinesbeganoperating8dailyflightsintheMidwest.operatingflightsMidwest.EAS 6RoutesSpeculative 1RouteSeaPortAirlinesStateContractual2RoutesBringingSoutheastTogether:WingsofcurrentlyBringingSoutheastAlaskaCloserTogether:Alaskacurrentlyoperates36dailyscheduledflightstosevenSoutheastAlaskacities.WingsofAlaskaEAS 2RoutesSpeculative5RoutesOur AircraftSeaPortAirlinesoperates7PilatusPC‐12aircraft.ThePC‐12isaSwiss‐builtpressurizedturbopropaircrafttypicallyfoundincorporateaviation,bututilizedbySeaPortAirlinescommuterconfigurationworld'ssellingSeaPortAirlinesinanineseatcommuterconfiguration.Theworld sbest‐sellingturbinebusinessaircraft,stillinproductiontoday,thePC‐12canshuttleyouwithcomfortandspeedwitheachseatbothawindowandaisle.PilatusmanufactureturbopropaircraftPilatus,theworldmarketleaderinthemanufactureofturbopropaircraftandtheonlySwisscompanytodevelop,produceandsellaircraftandtrainingsystemsallovertheworld.http://www.pilatus‐aircraft.comOur PresidentRobert(Rob)L.McKinney:• Graduate of Purdue University -AviationTechnology, and holds MBA from Ellis College• Trained and experienced as commercial pilot injets and turbo props, but always strived foropportunities to manage business aspects of flight operations in each company he served.• In September, 2007, enticed by original investors and founders ofSeaPort Airlinesto join as firstemployee, and tasked with establishing scheduled commuter airline service from Portland, OR toSeattle, 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 schedules in eachmarket.• Holds and utilizes vast knowledge of FAA regulations and has previous experience with FederalRegulators.“ 

# Growing up in a small town, I’m passionate about connecting rural America – the fabric of

our society.”July23,2010AlasksJuneauAeronautics,Inc.dbaSeaPortAirlinesEAS HistoryWhereasmanycommunitieshavebeenpromisedservicethathasnevertranspired,SeaPortdeliversEssentialAirServicetoeightcommunities:ExcursionInlet,Alaska,kl kdlbkldkyKake,Alaska,Pendleton,Oregon,Jonesboro,Arkansas,ElDorado,Arkansas,HotSprings,Arkansas,Harrison,Arkansas,andSalina,Kansas.Additionally,SeaPortservesNewport,ORandAstoria,ORunderacombinedstateandfederalgrantprogram.Ineverycase,afteraward,wehavestartedontime,onbudget,andwithfareseitheratorbelowthatwhichweoutlinedinourbid,ascomparedtosomanyotherairlineswhoplacebidswithunreasonablefaresthatareneverrealizedbythetravelingblipuc.Right-Sized for Ft. Leonard WoodSeaPortproposestwodailydirectroundtripsperdaybetweenFt.LeonardWoodandKansasCity,aswellastwodailyflightsbetweenFt.LeonardWoodandSt.Louis.Thisservicelevelwilloffermorethanenoughinventorytoprovideforthehistoricaltrafficofthelastseveralyearswhilekeepinginventoryprovidehistoricaltrafficseveral,keepingcapacity“right‐sized”andavoidinganunnecessaryfloodingofemptyseatsandresultinghigheroperatingcosts.PleaseseeExhibit“2”fordetails.SeaPorthasconstructedthescheduletomaximizetrafficflowwithflightsmorningandevening.SeaPort believesthattrafficwillincreaseinyeartwoasthespeedandconvenienceofourservicebecomemorefamiliartotheresidentsofthesecommunities.Inaddition,adailyplaneovernightinFt.LeonardWoodaddsreliabilitytotheaboveschedulerecommendationsimilartotheovernightsuccessSeaPortexperiencesinourotherEAScities.recommendationsimilarovernightsuccessSeaPortexperiencescities.Wearethereforeabletoofferthesecommunitiesthebestpossiblefitwith:•ComfortableandfastpressurizedPilatusPC‐12aircraft•ConvenientschedulesAff d blf•Affordableares•AreasonableandsustainablesubsidyamountSeaPort’s Proposed PlanSeaPort Airlinesemphasizescustomerserviceandconvenience,andinsodoingourplatformisreminiscentofcommercialairserviceofthepastinthatourpassengersonlyneedtoarrive20minutespriortodeparturefromanyofourterminals.InKansasCityLouisSeaPortwouldusethebusinessaircraftcenterforanenhancedtravelexperienceandSt.,SeaPortbusinessaircraftenhancedexperience.Fromeitherterminalwewillprovidecomplimentaryshuttlevanservicetoandfromthemainterminalforthosepassengersneedingtoconnectto,orreturningfrom,moredistantdestinations.ThismodelhasprovenitselfwellatourhubinPortland,OR,Memphis,TN,andKansasCity,MOandisnolessconvenientthanatypicalgatechange—onlywiththisoneyougetacomplimentaryshuttleride.Further,ano‐TSAmodelwillofferthecommunitiestremendousappealforquicktripstoandfromKansasCity,St.Louis,andotherpotentialmajormarketconnectionstobeservedbySeaPort.Finally,ano‐TSAmodelhasthegreatestpotentialtodrawbusinessandleisuretrafficfromKansasCityandSt.LouisthatwouldotherwisetravelbyhighwayifatraditionalTSA‐restrictedairlinewastheonlyflightoption.L tlth$89d lllKCitStL ifl$49 00asy,eoarfareinourproposalisanaveragefare.Travetoansasyor.ousorasowas.oneway.Thisfareisfarlessthanthecurrentoperator.No lines,never anywaitingSeaPortAirlinesisuniqueinthatitproactivelymarketstotravelerstheeaseandconvenienceofbypassingTSAsecurityscreeningBelowareafewinherentcostsavingbenefitsandcustomer, ygby‐passingTSAsecurityscreening.BelowareafewinherentcostsavingbenefitsandcustomerbenefitspassedtoyoutheairportwhenpartneringwithacarriersuchasSeaPortAirlines:•Lowerfaresthankstonogatefees•Increasereliabilityinarrivalanddeparturetimes•Quickerturntimes•Arrivejust20minutesbeforedeparture,board,andgo•Nolines.Norubbergloves.Noneedtotakeyourshoesoff.•ComplimentaryshuttleservicetoandfromthemainterminalWE FOUND WHAT AIR TRAVEL LOST:WEFOUNDWHATAIRTRAVELLOST:EASE AND CONVENIENCEEfficiency& ReachAugust2010fullGDSvisibility(Expedia,Travelocity,etc.)InterlineagreementwithUSAirwaysyInterlineagreementwithUSAirwaysReservationsavailableonlineatSeaPortAirlines.com,toll‐freeat888.573.2767,orthroughlocaltravelagentsLowFaresthankstolowoperatingcostsandefficientaircraftequipmentHigh‐frequency,non‐stopdailyservice– upto8 segmentsinthisproposalCustomerfocusedbringingtheconvenienceofaprivateplanetotheaveragetravelerforthesamecostascommercialairlines.Current ServiceGreatLakesisthecurrentairserviceproviderwithflightstoKansasCityalthoughtheyarevacatingcontractNonrefundable$119 00persegmentbutmanytimesarevacatingmid‐contract.‐refundablefaresstartat$119.00segment$184.00WhatcantheFt.LeonardWoodAirportAuthorityexpectfromSeaPortAirlines:Notificationofanyfare/schedulechangesCommunityinvolvementthroughadvertising/marketingAcohesivepartnershipfocusedoneconomicdevelopmentandincreasedloadfactorsAff d blfAffordablearesAhassle‐freetravelexperienceforyourcommunityJuly23,2010AlasksJuneauAeronautics,Inc.dbaSeaPortAirlinesEAS TestimonialLarryDalrymple–AirportManager:Pendleton Regional AirportLarryDalrympleAirportManager:“EasternOregonRegionalAirportatPendletonhadbeenstrugglingsinceschedulechangesfollowing9/11servedbyacarrierflying37seataircraft. Lowpassengercountattributedtopoorschedule,whichthencontributedtopoorerpassengercount. Thecarrier'ssolutionwastobringinlargeraircraftandflytoadifferenthub. TheAirportandcommunitybalkedatthissuggestionandwentinsearchofalternatives. ThesolutionfoundthroughtheEASprocesswasSeaPortAirflyinga9passengerPilatus,thatwouldeliminatetheneedforTSAsecurityaswellasmandatoryARFFstandby,savingtheAirportpersonnelcostsinanalreadyshortbudget. Thepassengershavewelcomedthenewservice,muchbetterschedule,andareelatedwith"nosecuritycheck"andstandbytime. Passengerstodaywillsay,"Ilovetheservice","greatcustomerservice",and"I'msuregladIfinallytriedit,causeI'llbeback".Inourparticularmarket,the9passengeraircraftisperfect,andSeaPortAirprovidestheschedule,theprofessionalism,andcustomerserviceweneedanddesire ”customerservicedesire.”EAS TestimonialLuciLarson–FormerMayorofthecityofSalinaKansas&ownerofActionTravel:Salina Municipal AirportLuciLarsonFormerMayorofthecityofSalinaKansas&ownerofActionTravel:The Department of Transportation (DOT) announced on theselection of SeaPort Airlines as Salina’s newessential air service provider. Service to Salina from Kansas City will start as early as April 19thwith threedaily roundtrip flightsSunday through Friday.“I understand the importance of having dependable, reliable air service with an affordable cost. Not only willSeaPort Airlines meet these needs, but excel by providing great customer service, a high level of communityinvolvement and an eagerness to become a Salina partner.”Says Luci Larson - former Mayor of the city ofSalina and owner of Action Travel. The letter supports afew key deliverables that only SeaPort Airlines cansupport, such as: greater frequency, a 9-seat “right sized” aircraft, affordable fares, military/government fares,and an active community marketing plan.“I applaud their entrepreneurship and look forward to our workingrelationshipTheir presence here in the Midwest is a winwin situation for all of usThe "doortodoor"relationship.TheirpresencehereintheMidwestisawin-winsituationforallofus.The"door--service they will provide will be truly appreciated by all passengers. Want totravel like rock star? Fly SeaPortAirlines!” Says former Mayor Larson.July23,2010AlasksJuneauAeronautics,Inc.dbaSeaPortAirlinesCustomerFeedbackRuthAnnSmith– HotSpringstoMemphis:“Two hours before the flight I booked my ticket to Memphis fromHot Springs. Wow! What a surprise; it was simple,convenient, great price, and impeccable service. It far exceeded my expectationsand I will be flying to Memphis on SeaPortAirlines instead of driving from now on.The customer service was fabulous!”CatherineMartin– MemphistoHarrison:“I have never had such a positive experience connected with any airline. I readabout Seaport Air last October when theyopened the Mid-South Route,but didn’t have the chance to fly until March. Usually the dreadof the process comes then youjust grin and bear it; however, with SeaPort Air I could arrive 15 minutes early. The hassle free no TSA is wonderful andmade me feel special. I have flown twice inthe last 2 months and the customer service from start to finish is outstanding. Iwill be a regular customer and have already recommended the airline to several associates Thank you SeaPort Air forwillbearegularcustomerandhavealreadyrecommendedtheairlinetoseveralassociates.Thankyou,SeaPortAir,formaking me feel like a queen!”BarbaraCovell – PortlandtoNewport:“This is a class operation, very professional and the staff provide the kind of customer service that most people can onlydream about. I have flown several times in order to avoid the LONG car trip from the Oregon central coast to Portlandairport. Today my husband had to get tothe emergency room at Portland VA Medical Center. The staff and crew actuallyheld the flight in Newport while we made haste to get there. If that wasn't enough,they had a taxi waiting when he arrived atPortland airport. Many, many thanks!”CommunityInvolvementJuly23,2010AlasksJuneauAeronautics,Inc.dbaSeaPortAirlinesRecent NewsForalistofSeaPortnewsarticlesvisithttp://www.SeaPortAir.com/pressEconomydoesn'tgroundairlinestart‐ups(clickhere)USAToday::11/16/2009They'rejustrealisticaboutthehistoryofthisindustryandthelikelihood(a)newstart‐upwillnotsurvive,"saysCraford,whohelpedlaunchSeaPortin...ScheduledairservicereturnstoRegion8(clickhere)KAITTV::10/26/2009SeaPortAirlineswilllinkMemphisandfourArkansascities»The...(clickhere)GloriaLevstonofSignatureFlightSupportaddsfueltoaSeaPortAirlinesPilatusPC12planeattheSeaPortfacilityatMemphisInternationalAirportThe...Recent SeaPort News‘ThisisagreatdayforElDorado’SeaPortAirlineswelcomedasnewairserviceproviderBy:JohnWorthenPublished:10/28/2009Approximately50peoplegatheredTuesdaymorningattheSouthArkansasRegionalAirportterminaltocelebratethereturnofairservicetoElDorado.RepresentativesfromSeaPortAirlines,whoarrivedonaflightfromMemphisInternationalAirporttocommemoratetheoccasion,weregreetedwithcheersandsmilesbycommunitymembersandlocalofficials.ThePortland,Ore.‐basedcompanywillofferround‐tripflightsbetweenElDoradoandMemphisontheSwiss‐builtPilatusPC‐12,a pressurizedturbo‐propairplane.DeparturetimesfromtheSARAare4:10a.m.,11:20a.m.,and8:20p.m.,accordingtoSeaPort’swebsite.SeaPortwillalsooperateround‐tripflightstoMemphisfromHarrison,HotSpringsandJonesboro.Thesecommunities,alongwithElDorado,havebeenwithoutregularservicesince2008,whenAirMidwest,asubsidiaryofMesa Airlines,pulledoutofthemarkets.SeaPortbeatoutseveralcompaniesthatsubmittedproosalstotheDeartmentofTransortationandsinedatwo‐yearcontracttoprovidetheservicefor a$6047789federalsubsid.TheEssentialAirServicesrorampppg, ,yp gsubsidizesairlinestoprovideservicethatwouldn’tbeprofitableontheopenmarket.SeaPortofficiallyopenedMondayinElDoradowitha4:30a.m.flightfromSARAtoMemphisInternational.AttheceremonyTuesday,localofficialstoutedSeaPortasaqualityairlinethatwillhelpElDorado’seconomicenginehum.JeffTeague,chairmanoftheElDoradoAirportCommission,calledthedaya“brightone,”despitecloudy,mist‐filledskiesthat hadtheSARAsockedin.Gettingthisairline“hasbeenanarduoustask,butweotthebestservicewecouldhave,”Teauesaid.“Transortationisthekeyissueineconomicdevelopment,andnothavingairserviceinElggpDoradoforthepastyearorsohasreallynotbeenagoodthing.Andnow,withallthat’sgoingoninElDorado,withtheconferencecenterandthenewhighschool,(Sea‐Port’sarrival)isjusttheicingonthecake.”KentCraford,chiefexecutiveofficerofSeaPort,calledTuesday“anexcitingdayforusatSeaPort.Wefeelthatoursmallnine‐passengerairplaneisaperfectfitforElDorado’sairserviceneeds.Andthefactthatwewillbeofferingthreetripsadayallowsforbetterconnectionserviceandsamedaytravelopportunitiesto Memphisandbeyond.Weareyourhometownairline.”ElDoradoMayorMikeDumasspokehighlyofSeaPortofficialsandsaidhelooksforwardtoworkingwiththemthroughouttheirtenurehere.“ThisisagreatdayforElDorado,”Dumassaid.“Wehavebeenworkingonthisformorethanayear,andit’sgreattofinallyhaveairservicebackinElDorado.Wewelcomeyou,SeaPort,andwethankyouforyourservice.”MoreinformationandreservationinformationisavailablebyloggingontotheSeaPortWebsiteatwww.seaportair.com.SeaPortwelcomesthisopportunitytobechosentoprovideessentialairiFtddifthdservceat.LeonarWoo,Missourorenexttwoyearperio.Webringafreshapproach,andbelievewehavepresentedaproposalthatwillmeettheEASneedsofthecommunitiesatreasonablesubsidylevels.Thankyouforyourconsideration.RobMcKinneyRespectfullysubmitted,McKinneyPresidentSeaPortAirlines7505NEAirportWayPortland,OR97218(971)340‐1711www.SeaPortAirlines.comAlaska Juneau Aeronatics, Inc. d/b/a SeaPort AirlinesEssential Air Service ProposalDocket OST-2008-0209Annual Subsidy RequirementOctober 2010 - September 2011Exhibit 1ASt. Louis Kansas CityFactorJLN-STL JLN-MCIRevenue:Passenger:Forecasted Passengers4,8004,800Average Revenue / Pax:Current: Oct 2008 - Sept 2009 89.00$ 89.00$Revenue / Pax Change 1.00% 1.00%Average Revenue / Pax89.89$ 89.89$Passenger Revenue 431,472$ 431,472$Other Revenue:Ratio to Passenger Revenue1.00% 1.00%Other Revenue 4,315$ 4,315$Total Revenue 435,787$ 435,787$Operating ExpensesCompleted Block Hours 991.201,274.40DirectFlight Crews74.10$ 73,44894,433FuelGallons / Block Hour 74Into Plane Cost / Gallon 3.90$Fuel Cost / Block Hour288.60$ 286,060367,792Insurance37.61$ 37,27947,930Maintenance211.20$ 209,341269,153Aircraft Lease153.00$ 151,654194,983Total Direct 757,782$ 974,291$Indirect Expense49.00%371,313477,403Total Operating Exp 1,129,095$ 1,451,694$Return5.00%56,45572,585Total Economic Cost1,185,550$ 1,524,279$Surplus / (Deficit) (749,763)$ (1,088,492)$Annual Subsidy749,763$ 1,088,492$Completed Departures 1,4161,416Subsidy Per Departure 529.49$ 768.71$Alaska Juneau Aeronautics, Inc. d/b/a SeaPort AirlinesEssential Air Service ProposalDocket OST-2008-0209Annual Subsidy RequirementOctober 2011 - September 2012Exhibit 1BSt. Louis Kansas CityFactorTBN-STL TBN-MCIRevenue:PassengerForecasted Passengers5,0405,040Average Revenue / PaxEstimate: Oct 2009 - Sept 2010 89.89$ 89.89$Revenue / Pax Change 0.00% 0.00%Average Revenue / Pax89.89$ 89.89$Passenger Revenue 453,046$ 453,046$Other Revenue:Ratio to Passenger Revenue1.00% 1.00%Other Revenue 4,530$ 4,530$Total Revenue 457,576$ 457,576$Operating ExpensesCompleted Block Hours 991.201,274.40DirectFlight Crews75.58$ 74,91796,322FuelGallons / Block Hour 74Into Plane Cost / Gallon 4.10$Fuel Cost / Block Hour303.03$ 300,363386,181Insurance37.61$ 37,27947,930Maintenance221.76$ 219,809282,611Aircraft Lease153.00$ 151,654194,983Total Direct 784,022$ 1,008,027$Indirect Expense49.00%384,171493,933Total Operating Exp 1,168,193$ 1,501,960$Return5.00%58,41075,098Total Economic Cost1,226,603$ 1,577,058$Surplus / (Deficit) (769,027)$ (1,119,482)$Annual Subsidy769,027$ 1,119,482$Completed Departures 1,4161,416Subsidy Per Departure 543.10$ 790.59$Alaska Juneau Aeronautics, Inc. d/b/a SeaPort AirlinesEssential Air Service ProposalDocket OST-2008-0209Proposed Departure SchedulesOctober 2010 - September 2012Exhibit 2Sched Sched Sched CompSched Block Sched Block Block Sched Comp BlockCityBlock Sched Hours/Freq/Hours/Hours/Seg / Comp Seg / Hours/Destination Pair Time Seg Seg Week WeekYearYear FactorYearYearSTLTBN 0825STL 0900 10.70 74.90 254.80 36497.50% 354247.80STL 0920TNB 0955 10.70 74.90 254.80 36497.50% 354247.80TBN 1325STL 1400 10.70 74.90 254.80 36497.50% 354247.80STL 1420TBN 1455 10.70 74.90 254.80 36497.50% 354247.802.8019.601,019.20 1,456.001,416.00 991.20MCITBN 0510MEM 0630 10.90 76.30 327.60 36497.50% 354318.60MEM 0645TBN 0805 10.90 76.30 327.60 36497.50% 354318.60TBN 1010MEM 1130 10.90 76.30 327.60 36497.50% 354318.60MEM 1150TBN 1310 10.90 76.30 327.60 36497.50% 354318.6043.60725.201,310.40 1,456.001,416.00 1,274.40Alaska Juneau Aeronautics, Inc. d/b/a SeaPort AirlinesEssential Air Service ProposalDocket OST-2008-0209Performance SummaryOctober 2010 - September 2011Exhibit 3ASt. Louis Kansas CityTBN-STL TBN-MCIPerformance:Rev Block HoursScheduled 1,019.201,310.40Completion % 97.30% 97.30%Completed Block Hours 991.201,274.40Rev DeparturesScheduled 1,4561,456Completion % 97.30% 97.30%Completed Departures 1,4161,416Rev PassengersPY 2007 Passengers 4,8004,800Forecasted Growth Rate 0.00% 0.00%Total PassengersAverage Segment Share 100.00% 100.00%Segment Passengers 4,8004,800Available Seats12,74412,744Average Load Factor37.66% 37.66%Average Pax / Flight3.43.4Alaska Juneau Aeronautics, Inc. d/b/a SeaPort AirlinesEssential Air Service ProposalDocket OST-2008-0209Performance SummaryOctober 2011 - September 2012Exhibit 3BSt. Louis Kansas CityTBN-STL TBN-MCIPerformance:Rev Block HoursScheduled 1,019.201,310.40Completion % 97.30% 97.30%Completed Block Hours 991.201,274.40Rev DeparturesScheduled 1,4561,456Completion % 97.30% 97.30%Completed Departures 1,4161,416Rev PassengersOct 2009 - Sept 2010 Est Pax 4,8004,800Forecasted Growth Rate 10.00% 10.00%Total PassengersAverage Segment Share 100.00% 100.00%Segment Passengers 5,2805,280Available Seats12,74412,744Average Load Factor41.43% 41.43%Average Pax / Flight3.73.7