February 23rd, 2011

Essential Air Service at

Victoria, Texas Docket OST 2005 20454

under 49 U.S.C. 41731 et seq.

SEAPORT AIRLINES

PROPOSAL TO PROVIDE ESSENTIAL AIR SERVICE

AT

Victoria, Texas

Docket OST 2005 20454

SeaPort Airlines, Inc.

7505 NE Airport Way, Portland, OR 97218
Company Overview

SeaPort Airlines is a FAA certified scheduled air service provider with 27 years 

experience in commercial aviation. Our company’s foundation is built on efficient 

and reliable service to rural communities. Both SeaPort Airlines and our sister 

company Wings of Alaska currently operate routes under the Essential Air Service 

program, as well as un-subsidized operations on established competitive routes.

Wings of Alaska is the premier airline serving Southeast Alaska. Providing 

scheduled passenger service, fast freight and charter service between Juneau and 

Skagway, Haines, Hoonah, Gustavus, and weekly flights to Excursion Inlet.

Wings of Alaska grew in reputation and size, becoming one of the most successful 

regional air carriers in Alaska, now comprised of a fleet of seven planes from Cessna 

207’s to Cessna Grand Caravans.
IT’S ABOUT TIME : SeaPort Airlines currently operates 30 daily 

scheduled flights in five Northwest cities and 32 daily scheduled flights 

in five Mid-South cities. Effective April 19th, 2010 SeaPort Airlines 

began operating 8 daily flights in the Midwest.

EAS 6 Routes

Speculative 1 Route

State Contractual 2 Routes

SeaPort Airlines
Bringing Southeast Alaska Closer Together: Wings of Alaska currently 

operates 38 daily scheduled flights to six Southeast Alaska cities.

Wings of Alaska

EAS 1 Route

Speculative 5 Routes
SeaPort Airlines operates 7 Pilatus PC-12 aircraft. The PC-12 is a Swiss-built 

pressurized turboprop aircraft typically found in corporate aviation, but utilized by 

SeaPort Airlines in a nine seat commuter configuration. The world's best-selling 

turbine business aircraft, still in production today, the PC-12 can shuttle you with 

comfort and speed with each seat both a window and aisle.

Pilatus, the world market leader in the manufacture of turboprop aircraft and the 

only Swiss company to develop, produce and sell aircraft and training systems all over 

the world.

http://www.pilatus-aircraft.com

Our Aircraft
Whereas many communities have been promised service that has never transpired, 

SeaPort delivers Essential Air Service to seven communities: Excursion Inlet, Alaska, 

Pendleton, Oregon, Jonesboro, Arkansas, El Dorado, Arkansas, Hot Springs, Arkansas, 

Harrison, Arkansas, and Salina, Kansas. Additionally, SeaPort serves Newport, OR and 

Astoria, OR under a combined state and federal grant program. 

In every case, after award, we have started on time, on budget, and with fares either 

at or below that which we outlined in our bid, as compared to so many other airlines 

who place bids with unreasonable fares that are never realized by the traveling 

public.

EAS History
SeaPort proposes for Victoria, three direct round trips per day between Victoria and Dallas (Love), 

seven days a week. This service level will offer more than enough inventory to provide for the historical 

traffic of the last several years. This allows us to keep the schedule flexible to be responsive to requests 

for schedule or destination changes in the future.

SeaPort has constructed the schedule to maximize traffic flow with flights morning, midday and 

evening. SeaPort believes that traffic will increase in year two as the speed and convenience of our 

service become more familiar to the residents of these communities. 

In addition, a daily plane overnight in Victoria, Texas adds reliability to the above schedule 

recommendation similar to the overnight success SeaPort experiences in our other EAS cities.

Lastly, the $99 fare in our proposal is an average fare. Travel will be as low as $49 one way. This fare is 

far less than the current operator.

We are therefore able to offer these communities the best possible fit with:

• Comfortable and fast pressurized Pilatus PC-12 aircraft

• Convenient schedules

• Affordable fares

• A reasonable and sustainable subsidy amount 

Right-Sized for Victoria, Texas
• Full GDS visibility (Sabre, Amadeus, Apollo, Galileo, Worldspan) for any travel agent

• Visibility on Expedia.com and Travelocity.com. Orbitz.com March 2011.

• Interline ticketing agreement with US Airways 

• Reservations available online at SeaPortAirlines.com, toll-free at 888.573.2767,

• Low Fares thanks to low operating costs and efficient aircraft equipment

• High-frequency, non-stop daily service

•Customer focused bringing the convenience of a private plane to the 

average traveler for the same cost as commercial airlines.

Efficiency & Reach
February 21, 2011

Current Service for Victoria, Texas

Continental Connection (Colgan) is the current air service provider with flights from Victoria, Texas to 

Houston, Texas. Non-refundable fares, depending on time of day, are $214.00 per segment based on 

availability and time of booking. 

What can Victoria, Texas and Dallas, Texas 

airports expect from SeaPort Airlines:

• Notification of any fare/schedule changes 

• Community involvement through 

advertising/marketing

• A cohesive partnership focused on economic 

development and increased load factors

• Affordable fares

• A hassle-free travel experience for your 

community
EAS Testimonial

Larry Dalrymple – Airport Manager :

“Eastern Oregon Regional Airport at Pendleton had been struggling since schedule changes following 9/11 served by a 

carrier flying 37 seat aircraft. Low passenger count attributed to poor schedule, which then contributed to poorer 

passenger count. The carrier's solution was to bring in larger aircraft and fly to a different hub. The Airport and 

community balked at this suggestion and went in search of alternatives. The solution found through the EAS process 

was SeaPort Air flying a 9 passenger Pilatus, that would eliminate the need for TSA security as well as mandatory ARFF 

standby, saving the Airport personnel costs in an already short budget. The passengers have welcomed the new 

service, much better schedule, and are elated with "no security check" and stand by time. Passengers today will say, "I 

love the service", "great customer service", and "I'm sure glad I finally tried it, cause I'll be back".

In our particular market, the 9 passenger aircraft is perfect, and SeaPort Air provides the schedule, the professionalism, 

and customer service we need and desire.”

Pendleton Regional Airport
February 21, 2011 Alasks Juneau Aeronautics, Inc. dba SeaPort 

Airlines

Luci Larson – Former Mayor of the city of Salina Kansas & owner of Action Travel:

The Department of Transportation (DOT) announced on the selection of SeaPort Airlines as Salina’s new essential air 

service provider. Service to Salina from Kansas City will start as early as April 19th with three daily roundtrip flights 

Sunday through Friday. 

“I understand the importance of having dependable, reliable air service with an affordable cost. Not only will SeaPort 

Airlines meet these needs, but excel by providing great customer service, a high level of community involvement and 

an eagerness to become a Salina partner.” Says Luci Larson - former Mayor of the city of Salina and owner of Action 

Travel. The letter supports a few key deliverables that only SeaPort Airlines can support, such as: greater frequency, a 

9-seat “right sized” aircraft, affordable fares, military/government fares, and an active community marketing plan. “I 

applaud their entrepreneurship and look forward to our working relationship. Their presence here in the Midwest is a 

win-win situation for all of us. The "door-to-door" service they will provide will be truly appreciated by all passengers. 

Want to travel like rock star? Fly SeaPort Airlines!” Says former Mayor Larson.

EAS Testimonial

Salina Municipal Airport
Customer Feedback

Ruth Ann Smith – Hot Springs to Memphis:

“Two hours before the flight I booked my ticket to Memphis from Hot Springs. Wow! What a surprise; it was simple, 

convenient, great price, and impeccable service. It far exceeded my expectations and I will be flying to Memphis on 

SeaPort Airlines instead of driving from now on. The customer service was fabulous!”

Barbara Covell – Portland to Newport:

“This is a class operation, very professional and the staff provide the kind of customer service that most people can 

only dream about. I have flown several times in order to avoid the LONG car trip from the Oregon central coast to 

Portland airport. Today my husband had to get to the emergency room at Portland VA Medical Center. The staff and 

crew actually held the flight in Newport while we made haste to get there. If that wasn't enough, they had a taxi 

waiting when he arrived at Portland airport. Many, many thanks!”
February 21, 2011 Alasks Juneau Aeronautics, Inc. dba SeaPort 

Airlines

Community Involvement
Recent News

SeaPort Airlines drives to aid stranded passengers (click here)

The East Oregonian: 12/29/2010

“They didn’t want their passengers to miss Christmas,” said Larry Dalrymple, Pendleton airport 

manager. “What other airline would do that?” 

SeaPort business continues to climb higher (click here) 

East Oregonian:11/ 07/2010 

The number of passengers flying SeaPort Airlines from Pendleton continues its gentle climb.

Seaport Airlines puts passenger first (click here) 

The Salina Journal: 05/25/2010

“Now that is great customer service," Melissa McCoy, Salina Airport Authority spokeswoman, wrote 

in an e-mail to the Journal. 

For a list of SeaPort news articles visit http://www.SeaPortAir.com/press

Trip with SeaPort a pleasant experience (click here) 

The El Dorado News-Times: 03/10/2010

Hit the Sky Running: Interview with SeaPort Airlines (click here) 

Aviation Buzz: 02/24/2010

Whether you fly SeaPort in the Northwest of the Mid-South, the brand is consistent.
Other News

‘This is a great day for El Dorado’

SeaPort Airlines welcomed as new air service provider

By: John Worthen

Published: 10/28/2009

Approximately 50 people gathered Tuesday morning at the South Arkansas Regional Airport terminal to celebrate the return of air service to El Dorado. 

Representatives from SeaPort Airlines, who arrived on a flight from Memphis International Airport to commemorate the occasion, were greeted with cheers and smiles by 

community members and local officials. 

The Portland, Ore.-based company will offer round-trip flights between El Dorado and Memphis on the Swiss-built Pilatus PC-12, a pressurized turbo-prop airplane. Departure 

times from the SARA are 4:10 a.m., 11:20 a.m., and 8:20 p.m., according to SeaPort’s website. 

SeaPort will also operate round-trip flights to Memphis from Harrison, Hot Springs and Jonesboro. 

These communities, along with El Dorado, have been without regular service since 2008, when Air Midwest, a subsidiary of Mesa Airlines, pulled out of the markets. SeaPort 

beat out several companies that submitted proposals to the Department of Transportation and signed a two-year contract to provide the service for a $6,047,789 federal 

subsidy. The Essential Air Services program subsidizes airlines to provide service that wouldn’t be profitable on the open market. 

SeaPort officially opened Monday in El Dorado with a 4:30 a.m. flight from SARA to Memphis International. At the ceremony Tuesday, local officials touted SeaPort as a quality 

airline that will help El Dorado’s economic engine hum. 

Jeff Teague, chairman of the El Dorado Airport Commission, called the day a “bright one,” despite cloudy, mist-filled skies that had the SARA socked in. 

Getting this airline “has been an arduous task, but we got the best service we could have,” Teague said. “Transportation is the key issue in economic development, and not 

having air service in El Dorado for the past year or so has really not been a good thing. And now, with all that’s going on in El Dorado, with the conference center and the new 

high school, (Sea-Port’s arrival) is just the icing on the cake.” 

Kent Craford, chief executive officer of SeaPort, called Tuesday “an exciting day for us at SeaPort. We feel that our small nine-passenger airplane is a perfect fit for El Dorado’s 

air service needs. And the fact that we will be offering three trips a day allows for better connection service and same day travel opportunities to Memphis and beyond. We 

are your hometown airline.” 

El Dorado Mayor Mike Dumas spoke highly of SeaPort officials and said he looks forward to working with them throughout their tenure here. 

“This is a great day for El Dorado,” Dumas said. “We have been working on this for more than a year, and it’s great to finally have air service back in El Dorado. We welcome 

you, SeaPort, and we thank you for your service.” 

More information and reservation information is available by logging on to the SeaPort Web site at www.seaportair.com. 
Rob McKinney

President

SeaPort Airlines

7505 NE Airport Way

Portland, OR 97218

(971) 340-1711

www.SeaPortAirlines.com

SeaPort welcomes this opportunity to be chosen to provide essential air service at Victoria, 

Texas for the next two year period. We bring a fresh approach, and believe we have 

presented a proposal that will meet the EAS needs of the communities at reasonable 

subsidy levels. Thank you for your consideration. 

Respectfully submitted,
SeaPort Airlines

Essential Air Service Proposal

Docket OST-2005-20454

Annual Subsidy Requirement

July 2011 - June 2012

Exhibit 1A

Victoria

Factor VCT-DAL

Revenue:

 Passenger:

 Forecasted Passengers 10,100

 Average Revenue / Pax:

Year 1 $ 99.00

 Revenue / Pax Change 0.00%

 Average Revenue / Pax $ 99.00

 Passenger Revenue $ 999,900

 Other Revenue:

 Ratio to Passenger Revenue 1.00%

 Other Revenue $ 9,999

 Total Revenue $ 1,009,899

Operating Expenses

 Completed Block Hours 2,612.52

 Direct

 Flight Crews $ 72.00 188,101

 Fuel

 Gallons / Block Hour 74

 Into Plane Cost / Gallon $ 5.00

 Fuel Cost / Block Hour $ 370.00 966,632

 Insurance $ 50.17 131,070

 Maintenance $ 211.20 551,764

 Aircraft Lease $ 200.00 522,504

 Total Direct $ 2,360,071

 Indirect Expense 22.00% 519,216

 Total Operating Exp $ 2,879,287

Return 5.00% 143,964

Total Economic Cost $ 3,023,251

Surplus / (Deficit) $(2,013,352)

Annual Subsidy $ 2,013,352

Completed Departures 2,124 
SeaPort Airlines

Essential Air Service Proposal

Docket OST-2005-20454

Annual Subsidy Requirement

July 2012 - June 2013

Exhibit 1B

Victoria

Factor VCT-DAL

Revenue:

 Passenger

 Forecasted Passengers 10,100

 Average Revenue / Pax

 Year 2 $ 99.00

 Revenue / Pax Change 0.00%

 Average Revenue / Pax $ 99.00

 Passenger Revenue $ 999,900

 Other Revenue:

 Ratio to Passenger Revenue 1.00%

 Other Revenue $ 9,999

 Total Revenue $ 1,009,899

Operating Expenses

 Completed Block Hours 2,612.52

 Direct

 Flight Crews $ 75.60 197,507

 Fuel

 Gallons / Block Hour 74

 Into Plane Cost / Gallon $ 5.25

 Fuel Cost / Block Hour $ 388.50 1,014,964

 Insurance $ 50.17 131,070

 Maintenance $ 211.20 551,764

 Aircraft Lease $ 200.00 522,504

 Total Direct $ 2,417,809

 Indirect Expense 22.00% 531,918

 Total Operating Exp $ 2,949,727

Return 5.00% 147,486

Total Economic Cost $ 3,097,213

Surplus / (Deficit) $(2,087,314)

Annual Subsidy $ 2,087,314

Completed Departures 2,124 
SeaPort Airlines

Essential Air Service Proposal

Docket OST-2005-20454

Proposed Departure Schedules

July 2011 - June 2013

Exhibit 2

Sched Sched Sched Comp

Sched Block Sched Block Block Sched Comp Block

City Block Sched Hours / Freq / Hours / Hours / Seg / Comp Seg / Hours /

Community Pair Time Seg Seg Week Week Year Year Factor Year Year

VCT VCT 0545

DAL 0700 1 1.23 7 8.61 447.72 364 97.50% 354 435.42

DAL 0925

VCT 1040 1 1.23 7 8.61 447.72 364 97.50% 354 435.42

VCT 1055

DAL 1210 1 1.23 7 8.61 447.72 364 97.50% 354 435.42

DAL 1520

VCT 1635 1 1.23 7 8.61 447.72 364 97.50% 354 435.42

VCT 1650

DAL 1805 1 1.23 7 8.61 447.72 364 97.50% 354 435.42

DAL 1820

VCT 1935 1 1.23 7 8.61 447.72 364 97.50% 354 435.42

 6 7.38 7 51.66 2,686.32 2,184 97.50% 2,124 2,612.52
SeaPort Airlines

Essential Air Service Proposal

Docket OST-2005-20454

Performance Summary

July 2011 - June 2012

Exhibit 3A

Victoria

VCT-DAL

Performance:

Rev Block Hours

 Scheduled 2,686.32

 Completion % 97.30%

 Completed Block Hours 2,612.52

Rev Departures

 Scheduled 2,184

 Completion % 97.30%

 Completed Departures 2,124

Rev Passengers

 Year 1 10,100

 Forecasted Growth Rate 0.00%

 Total Passengers

 Average Segment Share 100.00%

 Segment Passengers 10,100

 Available Seats 19,116

 Average Load Factor 52.84%

 Average Pax / Flight  4.8
SeaPort Airlines

Essential Air Service Proposal

Docket OST-2005-20454

Performance Summary

July 2012 - June 2013

Exhibit 3B

Victoria

VCT-DAL

Performance:

Rev Block Hours

 Scheduled 2,686.32

 Completion % 97.30%

 Completed Block Hours 2,612.52

Rev Departures

 Scheduled 2,184

 Completion % 97.30%

 Completed Departures 2,124

Rev Passengers

 Year 2 10,100

 Forecasted Growth Rate 5.00%

 Total Passengers

 Average Segment Share 100.00%

 Segment Passengers 10,605

 Available Seats 19,116

 Average Load Factor 55.48%

 Average Pax / Flight 5.0