ROBERTB. KARNS

105 Main Street

(701) 278-3747

COMMUNITY AIRLINE

DEVELOPMENT

E-Mail: bob@sovereignairinc.com ~obereign ~ir Jfnr.

VPGM BELCOURT, ND 58316

Dennis J. DeVany, Chief

EAS& Domestic Analysis Division, X-53

Office of Aviation Analysis

Department of Transportation

1200 New Jersey Ave. SE

Washington, DC 20590

OCT. 3, 2012

Re: Proposal to Provide Essential Air Service at:

PENDLETON, CALIFORNIA DOCKET DOT-OST-2004-19934

Dear Mr. DeVany:

This proposal is to provide basic air service required by order 2012-8-13 (August 10, 2012). Sovereign Air

with the communities help should be ready January 1, 2013.

/jJJ;~1}~ ROBERTB. KARNS '- »>

VPGM

Sovereign Air Inc.

763-535-4198

MINNEAPOLIS

S701 KENTUCKY AVE. N

Suite 1S3

MINNEAPOLIS, MN 55428-3302

(763) 535-4198

PRINTED ON RECYCLED PAPER
SOVEREIGN AIR INC.

Compensation Annual Rrquirements for Essential Air Service at

10/3/2012

PENDLETON, CA

Three Round Trips a Day 19 a Week With A 19 seat Jetstream 31 or 32

97%completion rate

Portland Hub

Proposal #1

DOCKET DOT-OST-2004-19934

Departures:

Mileage st:

Block Hours:

Aircraft Passenger Seats:

Revenue Passenger Miles:

Avaible Seat Miles:

Revenue:

Passengers 10,000 at $90 $900,000

Other Revenue

Total Revenues:

2% Passenger revenue $18,000

Expenses:

Direct

Indircet

Atrcraft lease Perches

Per Block Hour $1,500 $1,917,000

$506,886

$600,000 $300,000

Total Expenses:

loss

Profit 5.0% Total Expenses

Compensation Annual Required:

Passengers Per departure

l/F

5.21648409

0.27455179

Note: Sovereign will work hand in hand with the Community to get well over 14,000 passengers per year.

To keep funds in Pendleton.

To do reservations in Pendleton.

To base aircraft in Pendleton.

To have crews live in Pendleton.

Sovereign Air will become a member of the Pendleton community.

With Pendleton's assistance Sovereign Air will be certified and operational in time to preform the Pendleton EAS service

1917

181

1278

19

1,810,000

6,592,563

$918,000

$2,723,886

($1,805,886)

$136,194

(1,669,692)
SOVEREIGN AIR INC.

Compensation Annual Rrquirements for Essential Air Service at

10/3/2012

PENDLETON, CA

Three Round Trips a Day - 21 a Week With A 9 seat Kingair 100 or 200

97%completion rate

Portland Hub

Proposal 2

DOCKET DOT -05T -2004-199934

Departures:

Mileage st:

Block Hours:

Aircraft Passenger Seats:

Revenue Passenger Miles:

Avaible Seat Miles:

Revenue:

Passengers 10,000 at $90 $900,000

Other Revenue

Total Revenues:

2% Passenger revenue $18,000

Expenses:

Direct

Indircet

Atrcraft lease Perches

Per Block Hour $1,000 $1,588,500

$506,886

$900,000 $450,000

Total Expenses:

loss

Profit 5.0% Total Expenses

Compensation Annual Required:

Passengers Per departure

l/F

4.72

0.52

Note: Sovereign will work hand in hand with the Community to get well over 14,000 passengers per year.

To keep funds in Pendleton.

To do reservations in Pendleton.

To base aircraft in Pendleton.

To have crews live in Pendleton.

Sovereign Air will become a member of the Pendleton community.

With Pendleton's assistance Sovereign Air will be certified and operational in time to preform the Pendleton EAS service

2118

181

1589

9

1,810,000

3,450,222

$918,000

$2,545,386

($1,627,3136)

$127,269

($1,500,117)