## Proposal to Provide Essential Air Service at

Jonesboro, Arkansas

Docket DOT

- OST

- 1997

- 2935 November 26, 2013

Direct Inquiries Regarding this Proposal to:

Shane Storz, CEO
Air Choice One Airlines 12300 Old Tesson Road, Suite 200 F, Saint Louis, MO 63128 Phone: (866) 435

- 9847 Fax : (314) 843

- 8527 E

- mail: shane@airchoiceone.com



# Multi

- Aero Inc. d/b/a Air Choice One

# Our Commitment Leads to Success

11/26/2013 Throughout the current service period Air Choice One has worked in partnership with the community of Jonesboro to reestablish their standing within the Essential Air Service Program. In less than 2 years Jonesboro has gone from potential of expulsion from the EAS program, completed a successful probationary period supported by Air Choice One, to this current contract renewal process. In that time Air Choice One has overcome many major challenges; the results of which are highlighted below:

• AVERAGE ENPLANEMENTS: At the time of the 2011 RFP Jonesboro was averaging 1.5 enplanements per day. For the year ending March, 2013 Jonesboro is now averaging 16.5 daily enplanements which exceeds the DOT minimum of 10 per day by 65%.

• AVERAGE PER PASSENGER SUBSIDY: In the 2011 RFP Jonesboro’s average per passenger subsidy for the 12 months ended January, 2011, was $840; far exceeding the $200 cap. For the period ending September, 2013, Air Choice One is averaging $177 which brings Jonesboro into compliance with the DOT cap and represents an enormous improvement over the previous average.

• SERVICE IMPROVEMENTS: In the past Jonesboro patrons were transported to Memphis International Airport whose passenger service options were (and remain) on the decline. By connecting to a new hub in St. Louis, Jonesboro passengers now have greatly improved service options through multiple carriers operating approximately 234 daily departures to 64 domestic and international markets.

• FIND A CREATIVE SOLUTION TO ABSENCE OF TSA IN JONESBORO: Air Choice One inaugurated plane

- side passenger shuttle service upon arrival at Lambert St. Louis Airport which provides convenient transport while maintaining passenger control until delivery at the appropriate security checkpoint in Terminal 1 or 2.

Air Choice One has been committed since we entered our proposal in the 2011 RFP process. That commitment has not waivered and we have demonstrated that commitment through our actions. We are confident we will continue to provide the community of Jonesboro with the highest level of service if selected for the upcoming service period

.

# Market Growth Strategy

- Airport Partnerships

Air Choice One will team with your local airport and Lambert St. Louis International Airport to raise awareness about your communities’ air service and increase enplanements.

• LOCAL AIRPORT INITIATIVES WILL GROW RIDERSHIP

• Provide Financial Support Through Discounted Fuel Costs, Landing Fees, and Rental Agreements

• Educate the Community about the EAS Program and Air Choice One’s Service

• Draft and Distribute Press Releases

• Community Involvement

• Participate in TV and Radio Coverage

• Distribute Information Pertaining to Air Choice One at Local Business Events

• LAMBERT ST. LOUIS INTERNATIONAL AIRPORT (STL) INITIATIVES WILL GROW RIDERSHIP

• Aggressively pursuing EAS Communities Through Partnership Programs

– Local Visits and Financial Support

– Annual EAS Summit Held at STL Airport

– STL Currently Supports Over 50 Daily Flights to Seven EAS Communities

• EAS Communities Partnering With STL Have Benefited From a Steady Increase in Ridership

• Provide Marketing Funds to Both Air Choice One and the Local Community

11/26/2013Air Choice One reinvests in our served communities and will grow ridership

• TRADITIONAL MEDIA

• Radio

- Talk Shows/Commercials

• TV Commercials and Event Coverage

• Print

- Newspaper/Magazines

• Billboards

• Web Based

– E

- Blasts

– Monthly E

- Mail Promotions

– City Representation on Our Website

• SOCIAL MEDIA

• Twitter, Facebook, Linked In

• INTERACTIVE MEDIA

• Contests

• You Tube/Videos

• EVENTS AND SPONSORSHIPS

• Local Charitable Support

- March of Dimes, Make

- A

- Wish Foundation, Red Cross, etc.

• Business/Community Support

- Golf Tournaments, Business Luncheons, Air Shows, etc.

• COMMUNITY TICKET OFFICE 

# Market Growth Strategy

–

Marketing Investment

11/26/2013

# Market Growth Strategy

– Pricing

Air Choice One offers the right price for the right ticket at the right time.

We take all things into consideration and enter the market with low fares. We work hard to establish a winning price point through targeted market analysis. We believe consistent pricing builds consumer confidence.

• BUILDING & SUSTAINING RIDERSHIP THROUGH PRICE

• Introductory Fares Peak Interest and Drive Passengers to Air Choice One and Your Airport

• On

- Going Affordable Fares = Full Planes!

11/26/2013 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

FY 10-11 FY 11-12 FY 12-13

1,794 7,672 9,798 Passengers

Fiscal Year Jonesboro Total Passenger Maturation As Of September, 2013

# Options Index Jonesboro, Arkansas

OPTION 1, 2 YEAR SERVICE

– STL SERVICE CESSNA GRAND CARAVAN

Jonesboro, Arkansas

– Lambert St. Louis International Airport

Cessna Grand Caravan 18 Round Trips Per Week

11/26/2013 OPTION 2 , 4 YEAR SERVICE

– STL SERVICE CESSNA GRAND CARAVAN

Jonesboro, Arkansas

– Lambert St. Louis International Airport

Cessna Grand Caravan Discounted for Years 3

- 4 18 Round Trips Per Week

## Jonesboro, Arkansas

– Cessna Grand Caravan

Option 1: 2 Year Service
18 Total Round Trips Per Week

– Based on 98% Completion Rate



## Jonesboro, Arkansas

– Lambert St. Louis International Airport

– Caravan
Operation Revenues

JBR

- STL Revenues $ 499,800

Other Revenues 0 Total Operating Revenues $ 499,800

Direct Operating Expenses Flying Operations $ 264,443

Fuel and Oil 597,058

Maintenance 613,506
Aircraft Leases 415,000
Total Direct $1,890,007 Marketing 50,000
Indirect 386,365 Total Operating Expenses $2,326,372

Operating Loss $1,826,572 Profit Element (5% total Oper. Exp.) 116,318 Compensation Required $1,942,890

Compensation per PAX $190 Compensation per Departure $1,056 # Passengers: 10,200 Average Fare: $49.00 Departures: 1,840 Block Hours: 2,116 Revenue Passenger Miles: 2,070,600 Available Seat Miles: 2,979,325

11/26/2013 Representative Schedule

Departure Arrival

JBR 6:30 AM STL 7:55 AM

STL 10:50 AM JBR 12:20 PM

JBR 12:40 PM STL 2:05 PM

STL 2:35 PM JBR 4:05 PM

JBR 4:25 PM STL 5:50 PM

STL 7:00 PM JBR 8:30 PM

## Jonesboro, Arkansas

– Cessna Grand Caravan
Option 2: 4 Year Service (Discounted for Years 2

- 4)

18 Total Round Trips Per Week

– Based on 98% Completion Rate



## Jonesboro, Arkansas

– Lambert St. Louis International Airport

– Caravan
Operation Revenues

JBR

- STL Revenues $ 499,800

Other Revenues 0 Total Operating Revenues $ 499,800

Direct Operating Expenses Flying Operations $ 264,443

Fuel and Oil 597,058

Maintenance 613,506
Aircraft Leases 415,000
Total Direct $1,890,007 Marketing 50,000
Indirect 386,365 Total Operating Expenses $2,326,372

Operating Loss $1,826,572 Profit Element (5% total Oper . Exp.) 116,318 Compensation Required $1,942,890

Compensation per PAX $190 Compensation per Departure $1,056 # Passengers: 10,200 Average Fare: $49.00 Departures: 1,840 Block Hours: 2,116 Revenue Passenger Miles: 2,070,600 Available Seat Miles: 2,979,325

11/26/2013 Representative Schedule

Departure Arrival

JBR 6:30 AM STL 7:55 AM

STL 10:50 AM JBR 12:20 PM

JBR 12:40 PM STL 2:05 PM

STL 2:35 PM JBR 4:05 PM

JBR 4:25 PM STL 5:50 PM

STL 7:00 PM JBR 8:30 PM

DISCOUNTED SUBSIDY $1,923,462/Year $1,045/Departure DISCOUNTED FOR YEARS 3

- 4

# The Best Choice to Succeed

11/26/2013 

### We Are Proud of what We have A ccomplished Together and Welcome the Opportunity to Further Serve the Community of Jonesboro!



### • Successfully Supported Jonesboro through DOT Probation thereby Securing Current Opportunity for EAS Service Renewal

• 445%+ Improvement in Origin/Destination Passenger Numbers

• Proven Enplanement Increase in Jonesboro Market with an Average of 16.5 Passenger Enplanements Per Day up from 1.5



### • Significant Reduction in Per Passenger Subsidy from $840 to $176

• Demonstrated Reliability and Outstanding Completion Ratio