## SOVEREIGN AIR'S PROGRAM IS A WINNER'**::~\FiTivlH·JT**

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!:**f'\:,C2P()~iT~T~ftr\t** LETS LOOK AT PENINSULA AIRWAYS CONCERNS ,

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First: Sovereign Air has a purchase agreementto purchase a company that has an operating Air Carrier certificate. This will take place when Sovereign is selected to provide subsidized air service.

Second: Sovereign's proposals are very realistic. Instead ofcosting millions Sovereign Air will save million. See lettere-mailed to US Senator Baucus 9/22/11. (Attached before Exhibits) Ifthe ticket prices stay the same PennAir could clear around $13,000,000 extra Profit over2 yrs. From the Bar Harbor, Presque/Houlton and Plattsburgh communities
. (See Exhibit P, Q 

### & R)
Presque IslePresque IslePresque/Houlton Maine to Boston: Segment length is 289NM center ofairportto center ofairport. (See attached satellite photo Exhibit A} SegmentTimes -DornierJet :42.45 min Block time on Proposal :SO min Jet Stream 51 :52.07 min Block time on Proposal :60 min The segment length is the onlyfixed constant in the proposal to centerthe cost ofoperation on. Aircraft maintenance is based on flighttime (wheels offthe ground to wheels on the ground). Almost all fuel used is from takeoffto landing. Then about 1.5 gal is used pertaxi min. Engine and componenttimes are recorded using flight time. Flight and some otheroperational costs determined bytravel time included in each segment. Segment time is calculated usingtrue airspeed (indicated airspeed corrected to true airspeed) in a no wind condition. Those are accurate calculations butto cover the variations thatoccur on each flight such as weather, an ATC delayorother unforeseen events 15 min ofthe aircraft operating costs are added, !5 minis added forflights up to 200 nm and 20 min forflights over 200nm, to the calculated segment costs. (See actual round trip flight plans PQI to BOS with winds Exhibits B

### & C)

1NOTE: The taxi time from gate to take offand the after landing taxi time to gate are added to flight time making BLOCK TIME. Sense costs are covered in segment operation any extra taxi expense comes from profits atthe cost of 1.5 gal offuel per min. Taxi time at PQI is minimal, (see PQI airport satellite photo Exhibit D) Boston being the 19th busiest AIRPORT in the United States with its terminal located nearthe active runways will require a little moretaxi 

### time, (see Boston airport diagram, Exhibit D 

### & E). This two year proposal includes 

### all expenses both fixed and variable. Extra sections can be added for onlythe cost offuel, maintenance burden and landing fees. DornierJet at $1825 per leg. (Average 14 Passengers per leg) Jetstream 41 at$1300 per leg, (Average 10 Passengers per leg)
PlattsburgPlattsburgto Boston: Segment length is 174NM center ofairportto center ofairport. (see attached satellite photo Exhibit F) Segment Times -Dornier Jet :26.2 min. Block time shown on Proposal :30 min. Jet Stream :41 min. Block time shown on Proposal :35 min. The segment length is the onlyfixed constant in the proposal to centerthe cost ofoperation on. Aircraft maintenance is based on flighttime (wheels offthe ground to wheels on the ground). Almost 

### allfuel used is from takeoffto landing. Then about 1.5 gal is used pertaxi min. Engine and componenttimes are recorded usingflighttime. Flight and some otheroperational costs determined by travel time included in each segment. Segmenttime is calculated usingtrue airspeed (indicated airspeed corrected to true airspeed) in a no wind condition. Those are accurate calcuiations butto coverthe variations that occuron each flight such as weather, an ATC delay orother unforeseen events 15 min ofthe aircraft operating costs are added, !5 minis added forflights up to 200 nm and 20 minforflights over200nm, tothe calculated segment costs. (see actual round tripflight plans KBG to BOS with winds Exhibits G 

### & H ) NOTE: The taxi time from gate to take offand the after landing taxi time to gate are added to flight time making BLOCKTIME. Sense costs are covered in segmentoperation any extra taxi expense comes from profits atthe cost of1.5 gal offuel per min. Taxi time at PBG is minimal, (see PBG airport satellite photo) Boston beingthe 19th busiest in the United States with its terminal located nearthe active runways will require a little moretaxi time, (see Boston airport diagram, Exhibits I 

### & 

### J ). This twoyear proposal includes all expenses both fixed and variable. Extra sections can be added for onlythe cost offuel, maintenance burden and landing fees. 

### 2DornierJet at $985 per leg. (11 passengers average per leg) Jetstream 41 at $645 per leg. (8 passengers average per leg)

Bar HaborBar HarborBar Harbor Maine to Boston: Segment length is 174NM center ofairport to center ofairport. (See attached satellite photo Exhibit K) Segment Times -DornierJet :26.10 min Block time on Proposal :30 min Jet Stream 41 :30.6 min Block time on Proposal :35 min The segment length is the only fixed constant in the proposal to center the cost ofoperation on. Aircraft maintenance is based on flight time (wheels offthe ground to wheels on the ground). Almost all fuel used is from takeoffto landing. Then about 1.5 gal is used pertaxi min. Engine and componenttimes are recorded using flight time. Flight and some other operational costs determined by travel time included in each segment. Segment time is calculated using true airspeed (indicated airspeed corrected to true airspeed) in a no wind condition. Those are accurate calculations butto cover the variations that occur on each flight such as weather, an ATC delay or other unforeseen events 15 min ofthe aircraft operating costs are added, !5 minis added forflights up to 200 nm and 20 min forflights over200nm, to the calculated segment costs. (see actual round trip flight plans BHB to BOS with winds Exhibits l 

### & M ) NOTE: The taxi time from gate to take offand the after landing taxi time to gate are added to flight time making BLOCK TIME. Sense costs are covered in segment operation any extra taxi expense comes from profits atthe cost of 1.5 gal offuel per min. Taxi time at BHB is minimal, (see BHB airport satellite photo) Boston being the 19th busiest in the United States with its terminal located nearthe active runways will require a little more taxi 

### time, (see Boston airport diagram, Exhibits N 

### & 

### 0). This two year proposal includes all expenses both fixed and variable. Extra sections can be added for onlythe cost offuel, maintenance burden and landing fees. DornierJet at $985 per leg. (11 passengers average per leg) Jetstream 41 at $645 per leg. (8 passengers average per leg)



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### Fourth: Sovereign Air will not have any problem acquiring interline ticket, baggage and cargo agreements as.well as being afrequent flier mileage programs partner when it is EAS selected
Sovereign Air has purchase agreements in place for both Dornier 328 Jets and Jetstream 41's with supporting equipment and training.

Fifth: Sovereign Air proposals give the Presque Isle/Houlton communities a choice of nonstop orone stop flights giving them more (550 flights peryear) than PenAir. Sovereign Air's nonstopJet service gives the communities 101 more flights a year than PenAir at a less EAS requested funds.

Sixth: Sovereign Air handles block time as itshould. let us look at PennAIR'S block times. First- PQI to BOS flight planning times PQI-BOS 1:35, 805-PQI 1:07 

### =2:42 HRS ROUND TRIP Exhibits (958,5 round trips peryear X2:42 hrs.

# = 2588hrs fit. Plan. Blocktime 3,355 hrs.- 2,588 hrs.

# = 767 block hrs. peryear. 767 block hrs. 

## I 1917 flights 

# = 24 min block perflight. At 10min block average perfit. That leaves 14 min. times 1917 

### =26,838 

## I 60 

### =447 hrs. Xyour operating cost per block hr. ($8,136,408 total cost ofoperations

## I 3355 block hrs,

# =$2,425 block cost per hour. X 447 hrs. 

### =$1,084,046 could be EAS funds notaccounted for 

### ? That is whySovereign Air uses the Segment length that never changes but block time does so when you use block time you can fudge and make sure you make money.



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