BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

In the Matter of Essential Air Service at:

Pellston, Michigan

Sault Ste. Marie, Michigan

Docket DOT -OST -2011-0133

Docket DOT -eST -2009-0303

PROPOSALS OF DELTA AIR LINES, INC.

Communications with respect to this document should be addressed to:

Alexander Van der Bellen

Managing Director - International and Regulatory

Affairs & Associate General Counsel

DELTA AIR LINES, INC.

1212 New York Avenue, NW.

Washington, D.C. 20005

(202) 842-4184

sascha. vanderbellen@delta.com

June 26, 2013
BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

In the Matter of Essential Air Service at:

Pellston, Michigan

Sault Ste. Marie, Michigan

Docket DOT -OST -2011-0133~

Docket DOT -OST -2009-0303

PROPOSALS OF DELTA AIR LINES, INC.

In response to Order 2013-5-13, Delta Air Lines, Inc~("Delta") is pleased to

submit the attached proposals for EAS service at Pellston and Sault Ste. Marie,

Michigan. Consistent with our current EAS contract for these cities, Delta will continue

to be the contracting carrier for purposes of this EAS bid. Delta will cause one or more

of the following Delta Connection carriers to perform the proposed services: ExpressJet,

Chautauqua, Compass, GoJet, or Pinnacle (soon to be renamed "Endeavor Air"). This

will provide Delta and the Delta Connection carriers with flexibility to manage their

schedules efficiently.

The proposed schedules, costs, and subsidy requirements are provided in the

attached exhibits.

Respectfully submitted,

Alexander Van der Bellen

Managing Director, Government Affairs

& Associate General Counsel

DELTA AIR LINES, INC,
Pellston, Michigan

At Pellston, the key hospitality infrastructure at the area's principal attraction, Mackinac Island,

operates from May - October, including most island ferries. There is little air passenger traffic

in the November - April off-season. Delta's proposal therefore is split between a May - October

in-season schedule and a November - April off-season schedule.

Delta proposes' to provide Pellston with fourteen (14) weekly non-stop flights to Detroit from

May - October and twelve (12) weekly non-stop flights to Detroit in the November - April offseason with a required annual subsidy of $1,077,413.

DTW-PLN

Orig Dest Dept Arr Equip Days StODS

DlW PLN 13:55 15:01 CRJ-200 May - Oct: Daily Non-stop

Nov - Apr. Mon-Fri

DlW PLN 20:10 21:23 CRJ-200 Daily Year-round Non-stop

PLN DlW 6:35 7:43 CRJ-200 Daily Year-round Non-stop

PLN DlW 15:30 16:42 CRJ-200 May - Oct: Daily Non-stop

Nov - Apr: Mon-Fri

EAS service proposal for service to :Pellston, Michigan

Docket DOT-oST.2011-Q133

EAS Station

Hub

Round trips per week

Completion Factor

Total Passengers

Total Block Hours

Total Departures

Passenger Revenue

Other Revenue

Total Revenue

Pilots

Fuel

Maintenance

A ircrnft

Total Directs

. Total Indirects

Total Operating

Inflation Rate allowance

Profit@5%

Economic Cost

RequiredAnnual Subsidy Rate

2.0"10

5.0%

fW

DTW

12-14

98%

42,230

1,553

1,330

$4,770,498

$653,558

$5,424,056

$592,546.

$1,634,528

$770,882

$769,669

$3,767,625

$2,308,515

$6,076,140

$121,523

$303.807

$6,501,469

$1,077,413
. .

Sault Ste. Marie, Michigan

Delta proposes to provide Sault Ste. Marie with thirteen (13) weekly non-stop flights to Detroit

with a required annual subsidy of$I,765,393.

DTW-CIU

Oria Dest DeDt Arr EauiD Davs StODs

DTW CIU 12:05 13:21 CRJ-200 Sun - Fri Non-stop

DTW CIU 20:10 .21:27 CRJ-200 Daily Non-stop

CIU DTW 5:45 . 7:06 CRJ-200 Daily Non-stop

CIU DTW 13:46 15:10 CRJ-200 Sun - Fri Non-stop

[AS service proposal for service to Sault Stc Marie, Michigan

Docket DOT-oST-2009-0303

EAS Station

Hub

Round trips per Yi'Cek

Completion Factor

Total Passengers .

Total Block Hours

Total Departures

Passenger Revenue

Other Revenue

Total Revenue

Pilots

Fuel

Maintenance

Aircraft

Total Directs

Total Indirects

Total Operating

Inflation Rate allowance

Profit@5%

Economic Cost

RequiredAnnual Subsidy Rate

2.0%

5.0%

.Ql.!

DTW

13

98"A,

40,732

1,662

1,330

$4,428,872

$6()6.755

$5,035,627

$634,095

$1,749,142

$824,936

$823,638

$4,031,811

$2,324,283

$6,356,093

$127,122

$317,805

$6,801,020

$1,765,393