www.flyadi.com

Aerodynamics Inc.

Proposal to Provide 

Essential Air Service to 

the Community of 

Pierre, South Dakota
2

BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

________________________________________________ 

)

Essential Air Service at )

)

) 

PIERRE, SOUTH DAKOTA ) Docket DOT-OST-2011-0138

)

)

Under 49 U.S.C. §41731 et seq. )

________________________________________________) 

AERODYNAMICS, INC. PROPOSAL TO PROVIDE SUBSIDIZED AIR SERVICE

AT PIERRE, SOUTH DAKOTA

Correspondence with regard to this document should be addressed to:

Scott Beale

Chief Executive Officer

Aerodynamics, Inc.

25700 Science Park Drive, Suite 210

Beachwood, OH 44122

Telephone: 404-410-7612

Fax: 404-410-7604

E-Mail: sbeale@flyadi.com

Aerodynamics, Inc. (ADI) cordially submits its proposal to provide subsidized air service to the community of Pierre, South Dakota. ADI hereby 

offers three, two year, options for service. This bid is contingent upon ADI being awarded at least two of the three Nebraska cities of Kearney, 

North Platte and Scottsbluff in the response to Order 2014-8-20. Additionally, Option 2 is specifically contingent on the award of Scottsbluff, 

Nebraska to ADI, as this option contemplates service down line from that locale. 
3

ADI proposes to operate flights, under its independent identity to the major hub airport of Denver, Colorado. Denver International 

Airport is the nation’s 5th. busiest with over 1,550 daily departures to over 180 cities worldwide. ADI is a certificated 121 operator 

that currently holds DOT economic authority for charter operations and is in the process of filing for expanded economic authority for 

full scheduled passenger service. ADI will work to establish its own interline ticketing and baggage agreements with the legacy 

carriers at DIA and will schedule its flights to allow multiple connecting opportunities. If necessary, prior to establishing its own 

agreements, ADI plans to partner with other airlines in a co-host relationship whereby ADI will be able to take advantage of the

interlines ticketing and baggage agreements as well as Global Distribution System display, said airlines already have in place. ADI 

contends that reasonable local fares and reliable scheduled operations will stimulate demand and the variety of destinations available 

from Denver will allow these markets to grow. Toward that end ADI will establish a reasonable and affordable fare structure between 

these cities and Denver. Additionally, ADI will endeavor to establish a codeshare relationship with the major carriers at DIA but will 

additionally establish its own reservations platform that will allow ADI flights to be sold via all major global distribution systems. ADI 

will offer a web based booking site as well as a reservation call center for passenger use. 

In compliance with Public Law 100-223, ADI proposes to operate these flights using Embraer 145 regional jets that are pressurized 

and accommodate 50 passengers. The EMB-145 features stand up headroom, a pressurized cabin, a Flight Attendant and an onboard 

lavatory. The aircraft has ample cargo capacity to accommodate even bulky military duffle bags.

ADI has a long history of providing safe and reliable transportation. One of the keys to reinvigorating traffic at this airport will be 

schedule reliability. With the relatively low utilization of these aircraft, ADI will have great flexibility in responding to any operational 

challenges and can assure this community receives the level of operational performance it deserves.

www.flyadi.com
Aerodynamics Incorporated, operationally based in Atlanta GA., and corporately based in Beachwood, Ohio has multiple operating bases in the

U.S. and is a certified FAA 121/135 Air Carrier (Cert# BUEA634C) offering large aircraft flight operations. Long recognized for its core value of

operational excellence, ADI has served the industry for 54 years without incident or accident. ADI is one of only two companies operating

Regional Jets in the supplemental 121 on-demand sector. ADI currently holds the ARG/US Platinum rating , Full TSA approval and is IS-BAO Stage

II, certified. ADI is one of the elite few Platinum certified Part 121 operatorsin the world.

www.flyadi.com

About Our Company: ADI Company Overview

History

Diversity over the years

• ADI has had Airliners and Corporate Jet Aircraft on it’s Air Carrier Certificate including:

• Airbus A319 / A320 series, Embraer EMB 145, EMB 135, Fokker 28, Jetstream 41,

Corporate Gulfstream GIV, GIII, Citation Excel

Professional Sales Team

• Full time dedicated sales team with substantial experience and proven results

Worldwide Operations

• ADI is authorized by the FAA for international operations.

• The majority of ADI flights take place in the US, Latin America, Canada, Mexico and the

Caribbean.

• Certified Dispatchers & Maintenance Controllers

• Established 24/7 operation eager to serve your community
ADI has considerable experience in shuttle operations in a variety of narrow-body airline equipment, including the Embraer regional

jet. Founded in 1959, ADI operates under FARs Part 135, and Part 121 operations –and is recognized as a world leader in corporate

shuttle operations. ADI has maintained a flawless safety record for over 50 years and is ARGUS Platinum rated.

• Tortug’air International Service (2014) – Daily flights between Ft. Lauderdale (KFLL) and Cape Haitian (MTCH) and Nassau (MYNN) in an

Embraer 145.

• Chicago to Manistee, MI (2012) – Daily flights between Chicago Midway (KMDW) and Manistee, MI (KMBL) in an Embraer 145. ADI was

awarded the contract after a larger carrier pulled their aircraft from servicing this route.

• Intel Corporate Airline (2004 – 2013) – Operating the world’s largest private airline service - 33 daily flights operating seven Embraer 135’s /

Beech 1900 transporting over 300,000 passengers annually while boasting a 98.7% dispatch reliability rating, along with a 97.0% on-time

performance ratio–each ranked 1st amongst ERJ operators worldwide.

• Dow Chemicals (2002 – 2011) –Operating daily flights in an Airbus 319 between Saginaw, MI and Lake Jackson, TX and Philadelphia, PA. Dow

Chemical’s corporate shuttle which logged nearly 1400 flight hours annually. ADI maintained a 99% reliability and mission completion rating

throughout the Airbus program.

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About Our Company: ADI Proven Airline Success

Specializing In...

• Essential Air Services (EAS)

• Part 380 Scheduled Flights

• Government Contracts

• NASCAR Team Travel

• Corporate Shuttles

• Collegiate Sports Travel

• Energy Company Shuttles

• Live Entertainment Transportation

• Pro & Semi-Pro Sports
• Previous largest private airline & shuttle operator in the 

United States. Operated for Intel Corporation under FAR 

Part 125

• Past Experience includes: Detroit Pistons, Detroit Red Wings, 

Michael Jordan (MJ Air) and other professional sports teams.

• Top tier insurance – ADI carriers $500 million in total liability 

from A++ Insurance Underwriters

• ADI has previously been certified by the Department of Defense

• FAR Part 121 & 135 Certifications – BUEA634C

• 54 year accident & incident free history. 1 of 2 FAA air carriers 

with this distinction.

• Previous operational experience with 35+ flights conducted daily.

• Stringent and Rigorous training program with Flight Safety 

International.

• Aircraft handling capabilities including turbo prop planes, small 

& midsize jets, as well as large commercial airliners.

• Performs scheduled & unscheduled (or chartered) services 

around the world.

• Full aircraft management, in-flight catering, TSA approved 

security, aircraft handling, passenger scheduling solutionsthat 

will build traffic and generate growth

 Highly trained professional Pilots and Flight Attendants eager to 

serve your passengers

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About Our Company: Proven Operational Success

Capabilities & Expertise

Operated Aircraft

Airbus A320

Max Passengers: 179

Embraer ERJ 145

Max Passengers: 50

Gulfstream IV

Max Passengers: 19

ADI Locations

 Corporate Offices: Cleveland, OH

 Operations: Atlanta, GA

Customers Served
• Operations Specifications with worldwide authority and 

Canadian Air Transport approval

• Best Passenger Experience

• Highest TSA Approval – In house private program approved –

ultimate convenience with no hassles to you.

• FAA approved deviation (ops specs a-005) allowing ADI to use 

non-139 airports

• Fifty-four years of accident free service

• 24/7 flight operations center

• Multiple aircraft fleet – Built in contingency plan

• Outstanding safety record - NBAA, FAA, industry audits

• Combined Federal Aviation Regulation Part 121/135 FAA 

approved air carrier

• Complete turnkey services including ground handling, 

transportation, in-flight services and more.

Additional Benefits

• Superior Aircraft Type that will attract passengers and restore 

public confidence

• Your Community will enjoy the speed and amenities of true 

“Jet” Service

• All ADI aircraft and crew provide a quality level unsurpassed in 

the market

www.flyadi.com

FAA Part 135 & 121 Airline Services

About Our Company: the ADI Advantage
Most operators tend to advertise “Safety First” or “Just Safety Culture” however, at ADI we embrace all concepts of Safety and

Regulatory Compliance. From implementing “Best Practices” to ensuring compliance with worldwide regulatory requirements safety

is always at the forefront. Our commitment to safety is universal throughout our organization, it reaches out to our Management

Team, Administration, Regulatory Compliance, Training, Maintenance and Quality Control equally, we utilize interfacing concepts in

any and all decisions made to ensure we provide the utmost in safety and compliance consistently.

Safety Highlights

• ADI maintains outstanding Zero- Accident safety record for the last 54 years

• In-house TSA security program

Safety Certifications

• ADI participates in mandatory and volunteer safety audits to exceed strict guidelines authorized by numerous groups.

Operations Positions

• Chief Operating Officer and Director of Operations – Larry Hecht

• Chief Pilot – RK Smithley

• Director of Maintenance – Matthew Moreau

• Chief Inspector – Robert Anderson

• Director of Safety – Bob Looney

• Director of Inflight Services – Brenda Valenti

• Manager of Flight Following – Fernando Pineda

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About Our Company: A Commitment To Safety
ADI Certifications

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FAA Part 121 Certificate IS-BAO Stage II Certificate
ADI Certifications

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D085 Certificate ARGUS Platinum Certification
ADI’s fleet is comprised of Embraer ERJ 145’s, capable of accommodating up to 50 passengers, with excellent “hot & high” performance. It was

specifically designed to fly medium sized groups shorter distances at greater speeds. The ERJ 145 has a impressive mission completion rate of

99.7%. The ERJ worldwide fleet has flown over fifteen million miles since its first flight in 1995 with zero fatalities. Sit back, relax, and enjoy the

safety of the Embraer ERJ 145.

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About Our Aircraft: The ADI Fleet 

Tail Number Aircraft Type Seating Configuration

1. N359AD Embraer 145EP 50 Passenger configured

2. N459AD Embraer 145EP 50 Passenger configured

3. N974RP Embraer 145MP 50 Passenger configured

4. N975RP Embraer 145MP 50 Passenger configured *

5. N976RP Embraer 145MP 50 Passenger configured

(* Currently in Certification)
Performance & Specifications

Maximum Range: 1,017 nm

(with Reserves)

Normal Cruise Speed: mach 0.78

Cabin Height: 6 ft

Cabin Width: 6 ft 11 in

Usable Baggage: 2600 lbs.

Comfort

• Flight Attendants

• 31” Seat Pitch

• Rear Cabin Lavatory

• Catering Available

• Forward Cabin Galley

• 34 Large Windows

• Overhead Storage Bins

About Our Aircraft: the Embraer ERJ 145

www.flyadi.com
www.flyadi.com

About Our Aircraft: the Embraer ERJ 145 

Unparalleled Comfort:

Stand-up Cabin

Overhead Storage

Onboard Lavatory

Onboard Flight Attendant
14 www.flyadi.com

About Our Proposal: The Denver Hub

ADI proposes to operate flights, under its 

independent identity to the major hub 

airport of Denver, Colorado. Denver 

International Airport is the nation’s 5

th

busiest with over 1,550 daily departures to 

over 180 cities worldwide. 

In 2013 DEN hosted some 

52,556,359 passengers
15 www.flyadi.com

About Our Proposal: The Denver Hub
16 www.flyadi.com

About Our Proposal: The Denver Hub
17 www.flyadi.com

About Our Proposal: The Denver Hub
18 www.flyadi.com

About Our Proposal: Service to Pierre, South Dakota

AERODYNAMICS, INC. Service Proposals:

Service Option 1

24 Weekly frequencies between Pierre, Nebraska and Denver, Colorado with a 

Dedicated Aircraft and Set of Crews

Aerodynamics, Inc. proposes to operate these flights under our independent 

brand and through anticipated codeshare relationships. The timing of these 

flights would be optimized for connections to and from legacy carriers in 

Denver. ADI proposes to encourage connecting traffic by using a simplified 

“add on” fee structure, an average fare of $125 one way (including applicable 

taxes and fees) is proposed, whereby passengers connecting to or from other 

airline flights would pay only a low incremental fare for the ADI segment. 

Additionally, no bag fees are assumed for the first 2 checked bags. Given this 

low average fare and the addition of regional jet service, a traffic stimulation 

of 30% is forecast versus 2013 enplanements, similar to what actually 

occurred with the addition of regional jet service at Grand Island, NE. The 

anticipated service pattern features two weekday roundtrips operating on a 

nonstop routing Weekend service would consist of one round trip, nonstop 

flight on Saturday and one roundtrip, nonstop flight on Sunday. ADI intends 

to acquire ticket counter space in the East Terminal in DIA and plans to work 

from the ground load A Gates. Total annual subsidy required for this 

operation would be $4,655,030.

FROM TO DEP ARR EQP FREQ STOPS

Pierre Denver 833am 900am ERJ X7 0

Pierre Denver 333pm 400pm ERJ X6 0

Denver Pierre 1100am 120pm ERJ X7 0

Denver Pierre 600pm 820pm ERJ X6 0

----------------------------------------------------------------------------------------

(Note: These schedules are for illustration and may not represent the final selling 

product pending consultations with the community with its scheduling preferences.)
19 www.flyadi.com

About Our Proposal: Service to Pierre, South Dakota

(Dedicated Aircraft and Crews) Option 1

Pierre

Hub Served Denver

Number of Roundtrips per Service Day 2

Non-stop

O perating Statistics (12rt/week)

Assumed Completion % 98%

Annual Adjusted Block Hours 1,711.61

Annual Adjusted Departures 1,229.90

Annual Adjusted ASMs 23,675,575

Annual RPMs 12,503,157

Projected Load Factor 52.8%

Revenue Projections

Enplaned Passengers 32,476

Mileage (Average as Operated) 385

Average Fare $ 107.35

Passenger Revenue $ 3,486,232

Miscellaneous Revenue $ 87,155.81

Expense Projections

Flight Operations $838,288

Ownership $652,500

Maintenance $1,042,757

Reservations, Stations & Administration $1,830,124

Fuel $3,377,914

Marketing $12,000

Total Annual Expenses $7,753,583

Projected Profit / (Loss) ($4,267,351)

Profit Element $387,679

Annual Subsidy Required $4,655,030

Subsidy per Departure $3,784.89

Subsidy per Passenger $143.34
20 www.flyadi.com

About Our Proposal: Service to Pierre, South Dakota

Service Option 2

24 Weekly frequencies between Pierre, South Dakota and Denver, Colorado

One-Stop Service via Scottsbluff, Nebraska (No Incremental Aircraft)

Aerodynamics, Inc. proposes to operate these flights under our independent brand 

and through anticipated codeshare relationships. The timing of these flights would 

be optimized for connections to and from legacy carriers in Denver. ADI proposes 

to encourage connecting traffic by using a simplified “add on” fee structure, an 

average fare of ONLY $99 one way (including applicable taxes and fees) is 

proposed, whereby passengers connecting to or from other airline flights would 

pay only a low incremental fare for the ADI segment. Additionally, no bag fees are 

assumed for the first 2 checked bags. The anticipated service pattern features two 

weekday roundtrips operating on a one-stop routing via Scottsbluff, Nebraska 

Weekend service would consist of one round trip, one-stop flight on Saturday and 

one roundtrip, one-stop flight on Sunday. ADI intends to acquire ticket counter 

space in the East Terminal in DIA and plans to work from the ground load A Gates. . 

Total annual subsidy required for this operation would be $2,048,076.

FROM TO DEP ARR EQP FREQ STOPS

Pierre Denver 741am 854am ERJ X7 1

Pierre Denver 231pm 344pm ERJ X6 1

Denver Pierre 1100am 211pm ERJ X7 1

Denver Pierre 600pm 936pm ERJ X6 1 

-----------------------------------------------------------------------------------------------------------------

(Note: These schedules are for illustration and may not represent the final selling product 

pending consultations with the community with its scheduling preferences.)
21 www.flyadi.com

About Our Proposal: Service to Pierre, South Dakota

Option 2

Pierre

Hub Served Scottsbluff

Number of Roundtrips per Service Day 2

Non-stop

O perating Statistics (12rt/week)

Assumed Completion % 98%

Annual Adjusted Block Hours 1,127.41

Annual Adjusted Departures 1,229.90

Annual Adjusted ASMs 14,820,295

Annual RPMs 6,020,501

Projected Load Factor 40.6%

Revenue Projections

Enplaned Passengers 24,981

Mileage (Average as Operated) 241

Average Fare $ 83.16

Passenger Revenue $ 2,077,517

Miscellaneous Revenue $ 51,937.93

Expense Projections

Flight Operations $404,413

Ownership $0

Maintenance $724,307

Reservations, Stations & Administration $1,209,050

Fuel $1,579,366

Marketing $12,000

Total Annual Expenses $3,929,136

Projected Profit / (Loss) ($1,851,619)

Profit Element $196,457

Annual Subsidy Required $2,048,076

Subsidy per Departure $1,665.24

Subsidy per Passenger $81.98
22 www.flyadi.com

About Our Proposal: Service to Pierre, South Dakota

Service Option 3

24 Weekly frequencies between Pierre, South Dakota and Denver, Colorado

Inside Turns using Previously Established DEN Assets (No Incremental Aircraft)

Aerodynamics, Inc. proposes to operate these flights under our independent brand and 

through anticipated codeshare relationships. The timing of these flights would be 

optimized for connections to and from legacy carriers in Denver. ADI proposes to 

encourage connecting traffic by using a simplified “add on” fee structure, an average 

fare of $125 one way (including applicable taxes and fees) is proposed, whereby 

passengers connecting to or from other airline flights would pay only a low incremental 

fare for the ADI segment. Additionally, no bag fees are assumed for the first 2 checked 

bags. Given this low average fare and the addition of regional jet service, a traffic 

stimulation of 15% is forecast versus 2013 enplanements , 15% less than what actually 

occurred with the addition of regional jet service at Grand Island, NE. The anticipated 

service pattern features two weekday roundtrips operating on a nonstop routing 

Weekend service would consist of one round trip, nonstop flight on Saturday and one 

roundtrip, nonstop flight on Sunday. ADI intends to acquire ticket counter space in the 

East Terminal in DIA and plans to work from the ground load A Gates. Total annual 

subsidy required for this operation would be $3,913,626.

FROM TO DEP ARR EQP FREQ STOPS

Pierre Denver 1050am 1117am ERJ X7 0

Pierre Denver 650pm 717pm ERJ X6 0

Denver Pierre 800am 1020am ERJ X7 0

Denver Pierre 400pm 620pm ERJ X6 0

------------------------------------------------------------------------------------------------------

(Note: These schedules are for illustration and may not represent the final selling product 

pending consultations with the community with its scheduling preferences.)
23 www.flyadi.com

About Our Proposal: Service to Pierre, South Dakota

(Inside Turns - Using Existing Acft) Option 3

Pierre

Hub Served Denver

Number of Roundtrips per Service Day 2

Non-stop

O perating Statistics (12rt/week)

Assumed Completion % 98%

Annual Adjusted Block Hours 1,711.61

Annual Adjusted Departures 1,229.90

Annual Adjusted ASMs 23,675,575

Annual RPMs 11,060,485

Projected Load Factor 46.7%

Revenue Projections

Enplaned Passengers 28,729

Mileage (Average as Operated) 385

Average Fare $ 107.35

Passenger Revenue $ 3,083,975

Miscellaneous Revenue $ 77,099.37

Expense Projections

Flight Operations $530,355

Ownership $0

Maintenance $1,042,757

Reservations, Stations & Administration $1,701,356

Fuel $3,377,914

Marketing $12,000

Total Annual Expenses $6,664,382

Projected Profit / (Loss) ($3,580,407)

Profit Element $333,219

Annual Subsidy Required $3,913,626

Subsidy per Departure $3,182.07

Subsidy per Passenger $136.23
www.flyadi.com

In conclusion, Aerodynamics, Inc. believes that this proposal will provide this community with superior 

air service options. We feel the passengers will benefit from service to one of the nation’s busiest hub 

airport in Denver, Colorado. With a renewed focus on price, schedule connectivity and reliability, ADI 

intends to grow this market. ADI has proven itself as a dependable Air Service provider and brings a 

commitment to work with these communities to address their travel needs. Integrity of service that 

has been a hallmark of the ADI Charter operation and we look forward to extending our brand into the 

Scheduled service arena.

Respectfully Submitted: October 15, 2014

______________________

Scott Beale

Chief Executive Officer

Aerodynamics, Inc.

About Our Proposal: Conclusion
www.flyadi.com

AERODYNAMICS

404.410.7612

sales@flyadi.com

www.flyadi.com

Corporate

25700 Science Park Drive

Suite 210

Beachwood, OH 44122

Operations

1690 Stone Village Lane

Building 100, Suite 121

Kennesaw, GA 30152