# Dor-osr-zoo4-i<l^5 4

Sovereia n JAi rIn cnFPARTMENTO F •''^g'OPERATION G I P : S A;n:5 b Septembe r14 , 201 0 Denni s J
. DeVany , Chie f EA S & Domesti cAnalysi s Division , X-5 3 Offic e o fAviatio n Analysi s Departmen t o fTransportatio n 120 0 Ne wJerse yAve
. S E Washington , D

C 2059 0 Re : Proposa l t o Provid e Essentia l Ai rServic e at : Pendleton , OR DOT-OST-2004-1993 4 Dea rMr
. DeVany : I n respons e t o Orde r2010-8-8 , Sovereig n Air , Inc
. offer s th e followin g proposal : Sovereig n Air , Inc
. (SAI ) i s plannin g t o us e th e Cessn a 20 8 Carava n as it s primar yaircraf tfo rthi s Essentia l Ai rServic e route . I t wil l b e configure d wit h nine passenge rseats , an d seat s wil l b e adde d a s needed
. Sovereig n Ai ri s proposin g th e aircraf t fo rth e exclusiv e us e (n o up-lin e o rdown-lin e service ) o fth e propose d EA

S route . Ou rflight s wil l servic e onl yth e EA S cit yan d th e indicate d Hub
. Sovereig n Ai r believe s tha t wit h goo d schedules , prope rpricin g an d a recoverin g economy , th e loa d factor s wil l likel y increas e i n thes e markets
. SA I wil l bas e it s aircraft , crew s an d maintenanc e personnel , bankin g an d purchas e fue l i n th e EA S city
. Thi s wil l hel p kee p th e EA S monie s i n th e loca l community
. W e anticipat e relocatin g a t leas t fiv e familie s t o th e Pendleto n are a t o operat e thi s run . SA I wil l hav e baggag e an d ticke t agreement s wit h th e majo rai rcarrier s i n Portland
. SA I wil l hav e carg o agreement s fo rbot h domesti can d internationa l ai rfreigh tmovements . SA I has bee n HAZMA

Tapprove d an d wil l b e workin g i n conjunctio n wit h hospital s t o expedit e variou s HAZMA Tmaterial s tha t the ynee d t o transport . SAI' s goa l i s t o wor k

hand-in-han d wit h EA S communitie s t o increas e passenge rload s an d reduc e th e nee d fo rEA

S subsidie s withi n th e nex t fou rt o si xyears . Sovereig n Ai ri s currentl yi n th e proces s o facquirin g it s Schedule d Servic e Authorit yan d anticipate s bein g abl e t o star t thi s Essentia l Ai rServic e o n schedule
. Sovereig n Ai rwil l b e full yintegrate d int o th e Globa l Distributio n Syste m (GDS) i n conjunctio n wit h Worldspan
. SA I i s no t tie d t o jus t on e airline , allowin g Sovereig n Ai rbette rvisibilit yi n th e variou s reservatio n systems . Passenger s wil l hav e a broa d rang e o fchannel s throug h whic h t o purchas e tickets , includin g al l airlin e reservatio n system s an d trave l agencies
. Customer s wil l b e abl e t o cal l ou rreservatio n offic e o rvisi t ou rwebsit e t o boo k flights
. Passengers ca n als o purchas e ticket s an d mak e reservation s a t ou rticke t counters . Th e Cessn a Carava n i s th e mos t economica l 9 passenge rturbin e aircraf tfo ru p t o 25 0 miles
. I tca n carry 9 passengers wit h thei rbaggag e a t th e lowes tpe rmil e cos tfro m Pendleto n t o Portland , allowin g a n averag e ticke t pric e o f$7 9 on e way , o r$15 0 roun d trip
. Advanc e purchas e price s fo ron e wa ywil l b e $5 5 t o $6 5 an d ther e wil l b e n o baggag e charges
. Th e Carava n ha s roo m fo rskis , gol fbags , fishin g poles , an d regula rpassenge rluggage , so nothin g get s lef t behind
. Anic e restroo m i s installe d i n th e aft
. Th e Carava n i s a U.S
. manufacture d aircraf twit h excellen t part s availabilit ya t lowe rcosts . I ti s use d i n schedule d servic e al l ove rth e world
. Thi s i s a simpl e aircraf t tha t i s easyt o maintain , an d i thas a veryhig h dispatc h rate , s o ther e shoul d b e veryfe w mechanica l delays
. Becaus e o fth e lowe roperatin g costs , 4 roun d trip s ca n b e ru n a ta reasonabl e EA S subsidy , savin g bot h th e passenge ran d th e governmen t money . Sovereig n air' s uniqu e reservatio n system , combine d wit h interlin e agreement s t o b e pu ti n place , wil l allo wpassengers t o b e tickete d t o thei rfina l destinatio n withou tconcer n fo rbaggag e transfers
. SAI' s fina l schedule s wil l b e develope d byth e EA S CityAirpor tBoar d an d SA I t o reduc e layove rtime s i n PD Xan d provid e th e bes t possibl e arriva l an d departur e time s fo rth e travellin g public
. A s such , th e followin g schedule s wil l likel yb e adjusted : Propose d Schedul e Option s



## PDT-PDX-PD

T3 XSchedul e 7 Days/

Wee k Depar t 

### PD T 63 0 103 0 170 0 

### Arriv e



### PD X 73 5 113 5 180 5 Depar t



### PD X 90 0 120 0 190 0 

### Arriv e



### PD T 100 5 130 5 200 5 

## PDT-PDX-PD

T4 XSchedul e 5 Days/

Week , 3 Xo n Weeken d Day

s Depar t 

### PD T 63 0 103 0 133 0 170 0 Arriv

e 

### PD X 73 5 113 5 143 5 180 5 Depar t



### PD X 90 0 120 0 150 0 190 0 Arriv

e 

### PD T 100 5 130 5 160 5 200 5 M-FOnl y;ssn a 20 8 3 Roun d Trip s 2,12 4 2,30 1 14,00 0 1,106,00 0 15,21 1 1,121,21 1 Direc t Costs 169,92 0 509,76 0 198,00 0 211,33 3 192,00 0 1,281,01 3 Indirec t Costs 1,009,23 0 Tota l Costs 2,290,24 3 Portlan d PD X- Pendleto n DP

T

Departure s Bloc k Hours Passenger

s Pa xre v@ $7 9 Othe rre v Tota l Revenue s
Cre wExpense s Fue l Insuranc e Maintenanc e Aircraf t Leas e Tota l Direc t Costs Sovereig n Ai r 4 Roun d Trip s 2,64 4 2,70 1 14,00 0 1,106,00 0 15,21 1 1,121,21 1 Direc tCost s 211,52 0 613,40 8 198,00 0 263,07 1 192,00 0 1,477,99 9 Indirec tCost s 1,009,23 0 Tota l Cost s 2,487,22 9 Departure s

Bloc k Hours Passenger

s Pa xre v@ $7 9 Othe rre v Tota l Revenue s
Cre wExpense s Fue l Insuranc e Maintenanc e Aircraf t Lease Tota l Direc tCosts

1,169,03 2 Costs-Rev 114,51 2 Tota l Costs * 5 % 1,283,54 4 Annua l Subsid y 1,366,01 8 Costs-Rev 124,36 1 Tota l Costs * 5 % 1,490,37 9 Annua l Subsid y 73 % Loa d Facto r 59 % Loa d Facto r
Custome rsafet yan d servic e ar e Priorit yOn e wit h SAI
. Sovereig n Ai rlook s forwar d t o providin g Essentia l Ai rServic e t o th e subjec t cities
. Sincerely ,
Jo n Payne , CF

O Sovereig n Air , Inc
.