BEFORE THE UNITED STATES DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Essential Air Service at JOHNSTOWN, PENNSYLVANIA DOT-OST-2002-11451
Under 49 U.S.c. §41731 et seq.

CITY LINK AIR, INC. (CLA) PROPOSAL TO PROVIDE SUBSIDIZED AIR SERVICE AT JOHNSTOWN (JST), PENNSYLVANIA Please address all correspondence to: Telephone: (866) 435-9252 Fax: (888) 259-6008 E-Mail: josh @ citylinkair.com City Link Air, Inc. Attn: Joshua G. Newsteder, CEO 11890 Hidden Hills Drive Jacksonville , FL 32225-1656
Planned schedules and economics for this proposal have not chan~ed. CLA submitted its first proposal (140417-3 ) on April 17 , 2014. This update clarifies key points of interest. We believe that CLA is offering Johnstown the safest, most reliable, and realistic proposal. CLA submits this proposal (140527-3) to provide subsidized air service from Pennsylvania' s Pittsburgh International Airport (PIT) to the community of Johnstown (JST), Pennsylvania. In compliance with Public Law 100-223 , CLA proposes to operate these flights using pressurized, multiengine, turbine powered aircraft piloted by two fully qualified pilots

. Aircraft will be equipped, and pilots will be trained to fly to the lowest instrument approach minimums at every airport served. This allows on time arrivals at the lowest, legal weather limits for any runway CLA can use. With an average of 160 daily departures, PIT is the ideal hub to connect Johnstown passengers to 37 non stops and hundreds of connecting opportunities worldwide. The convenience and proximity of non-stop flights to Johnstown enable CLA to meet connecting schedules without the problems endemic to other, super-saturated hubs. Specifically, there are no restrictions on slots and gates. Flow control into Pittsburgh is rarely a problem.

Planned non-stop service from JST to PIT takes 33 minutes This service provides the best opportunity to quickly fly to/from PIT while simultaneously refining robust connection opportunities. Working closely with the Allegheny County Airport Authority (ACAA) , CLA has arranged gate services closest to the center of all four concourses (gates D-77 or C-52). This provides the shortest walking time for passengers to all connecting flights while minimizing bag transfer times. Competitively priced, short trips will realize a more leisurely and un-rushed experience , ultimately resulting in lower overall costs and shorter travel times in most markets.

140527-3 CLAEAS PIT JST Page 1Customer Advocacy

Each EAS community served will have a dedicated CLA station manager whose primary job after safety will be customer advocacy. It is imperative that our single most important touch point with passengers is
a full time employee with their best interests in mind

. This employee will be a locally recommended, community minded advocate that continuously engages all civic interests for CLA. This station manager will ensure CLA always provides the best possible air service. Service Map for this Proposal



### Johnstown (JSn



# - ----- Q

. (PIT) Pittsburgh

Although CLA ' s planned aircraft are not equipped with an onboard lavatory it should be noted that the longest planned flight for this market is 33 minutes. CLA will initially operate under FAA scheduled commuter rules (Part 135) as it continues to pursue full , Part 121 certification. During this period CLA will use nine seat configured Beech 200 / 300s.

140527 -3 CLAEAS PIT JS T Page 2

# Essential Air Service

Planned Aircraft 

# for FAA 121 

# Operations

Beechcraft 1900D

- Two Pilots 19 Seat, Two Engines, Pressurized Turboprop Proposal Speed: 230 mph (200 Knots) Top speed: 328 mph (285 Knots) Max. Altitude: 25,000 feet

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### Cabin Interior

# Essential Air Service

Initial Aircraft for FAA 135 Operations

Beechcraft 200/300 - Two Pilots 9 Seat, Two Engines, Press urized Turboprop Proposal Speed: 230 mph (200 Knots) Top speed: 328 mph (285 Knots) Max. Altitude: 3 1,000 feet

Beechcraft' s 200 and 300 both share the s ame cabin size , customer experience will be

, the same
. Whether f

lying the 200/300 or Beech 1 900, performance is similar
.



# - 7 

# ••

Cabin Interior With nine seats every passenger enjoys 33 inches of legroom (2 inches more than a coach seat on larger jets). Every passenger is afforded 112 pounds of luggage.



### Exterior Luggage 60 cubic feet of underbelly storage accommodates TSA checked bags. This easily carries up to six golf bags.

140527- 3 CLA EAS PIT IST Page 4 CLA intends to provide this service as an FAA part 121 airline. Its current certification (FAA Part l35 ) prohibits using the 19 seat Beech 1900. Therefore , CLA will use Beechcraft 200/300s configured with nine seats (pictured here) until full FAA 12 1 certification i s achieved. Once 121 certification is achieved, CLA will match each market with the most efficient aircraft. CLA will always fly these markets with two pilots

.CLA ' s schedules will be optimized to achieve the best connection opportunities in Pitt sburgh. Planned weekday roundtrips to JST are shown. One day of similar roundtrips would also be offered over the weekend, usually split between Saturday morning and Sunday evening.

Planned typical Monday-Saturday / Sunday Flight Schedule To Dep. Arr. Stops Price Pittsburgh 7:57 AM 8:30 AM Non-Stop $75.00 Pittsburgh 2:23 PM 2:55 PM Non-Stop " Pittsburgh 8:48 PM 9:20 PM Non-Stop " To Dep. Arr. Stops Johnstown 6:55 AM 7:27 AM Non-Stop Johnstown 12:20 PM 12:53 PM Non-Stop Johnstown 7:45 PM 8:18 PM Non-Stop Schedules

From Johnstown Johnstown Johnstown From Pittsburgh Pittsburgh Pittsburgh $75.00

"

" Schedules shown are planned and may change to better serve the community/maximize best connections. CLA will work with its local station manager/customer advocate and each community to determine the best schedules that fit into the economics of our business model. Making Connections CLA is aggressively pursuing interline and codeshare agreements and is confident that one or more will be in place with the dominant carrieres) when service begins

. It is our intention to provide the customer with a seamless, transparent travel experience to and through Pittsburgh. Meeting early morning and late evening connection banks upholds the true spirit of the EAS program. Our schedule identifies the maximum number of one-stop travel options from JST while providing the community with safe , reliable , and reasonably priced service that fits within the economics of our model. Dispatch Reliability The America made Beechcraft all have excellent records of dispatch reliability. The ubiquity of parts and maintenance allow for a planned 98 % dispatch reliability. CLA will have a pre-positioned, ready spare aircraft located at its maintenance base in Clarksburg, West Virginia. Scheduled travel time from Clarksburg to Johnstown is 30 minutes. Depending on EAS contracts awarded this " banked " aircraft may be pre-positioned in Pittsburgh. Five full crews per aircraft will allow CLA to meet all FAA mandates for schedules , rest, training and standby. No crews will ever exceed schedule restrictions (FAR part 117, etc.)

No pilots will ever fly a late night flight prior to an early morning flight. Ticket Prices Prices shown are the maximum price

- As a stand alone bid CLA has to ensure it can responsibly provide the proposed level of service if awarded this one EAS contract. Additional EAS contract awards will achieve economies of scale

. CLA will pass on these multi-contract savings to reduce ticket prices.

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### Annual Financial & 

### Operational Metric Summary

Beechcraft 200

/ 300 1 , 878 1 , 021 11,268 67 % (~ 6 Seats) $ 75.00 148 ,433 891 1 ,3 36 Aircraf t Type Departures Block Hours 

## o & D Passengers Average Load Factor Average One Way Fare Statute Miles Flown Revenue Passenger Miles (000) Available Seat Miles (000) Annual Revenue Gro ss Ticket Revenue CPE & Fees (PFC , 911 , FET , & SF) Net Ticket Sales Annual Expenses Distribution (ODS , OTA , CC) Fuel & Consumables Pers onnel Maint

. & Maint

. Re serves Station Fees & Rents Aircraft Rents Marketing Other Fixed and Variable Overhead Total Annual Expenses Profit (loss ) 5% Margin on Cost Required EAS Subsidy Required EAS Subsidy per Pax $ 845,100 $ 296 , 630 $ 548 ,470
$ 7 9 , 228 $ 425 ,449 $ 836 , 775 $ 36 1 ,601 $ 322 ,436 $ 295 , 282 $ 80 , 000 $ 150 , 000 $ 2 , 550 , 772 $ (2,002, 3 02) $ 127 , 539 $ 2 , 129 , 841 $ 189

Respectfully Submitted : May 27 , 2014 Joshua G

. Newsteder Chief Executive Officer City Link Air, Inc

.

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