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September 14, 2010 

Dennis J. DeVany, Chief 

EAS & Domestic Analysis Division, X-53 

Office of Aviation Analysis 

Department of Transportation 

1200 New Jersey Ave. SE 

Washington, DC 20590 

Re: Proposal to Provide Essential Air Service at: 

Pendleton, OR 

DOT-OST-2004-19934 

Dear Mr. DeVany: 

In response to Order 2010-8-8, Sovereign Air, Inc. offers the following proposal: 

Sovereign Air, Inc. (SAI) is planning to use the Cessna 208 Caravan as its primary aircraft for this Essential 

Air Service route. It will be configured with nine passenger seats, and seats will be added as needed. 

Sovereign Air is proposing the aircraft for the exclusive use (no up-line or down-line service) of the 

proposed EAS route. Our flights will service only the EAS city and the indicated Hub. Sovereign Air 

believes that with good schedules, proper pricing and a recovering economy, the load factors will likely 

increase in these markets. SAI will base its aircraft, crews and maintenance personnel, banking and 

purchase fuel in the EAS city. This will help keep the EAS monies in the local community. We anticipate 

relocating at least five families to the Pendleton area to operate this run. 

SAI will have baggage and ticket agreements with the major air carriers in Portland. SAI will have cargo 

agreements for both domestic and international air freight movements. 

SAI has been HAZMAT approved and will be working in conjunction with hospitals to expedite various 

HAZMAT materials that they need to transport. 

SAI's goal is to work hand-in-hand with EAS communities to increase passenger loads and reduce the 

need for EAS subsidies within the next four to six years. 

Sovereign Air is currently in the process of acquiring its Scheduled Service Authority and anticipates 

being able to start this Essential Air Service on schedule. 

Sovereign Air will be fully integrated into the Global Distribution System (GDS) in conjunction with 

Worldspan. SAI is not tied to just one airline, allowing Sovereign Air better visibility in the various 

reservation systems. Passengers will have a broad range of channels through which to purchase tickets, 

including all airline reservation systems and travel agencies. Customers will be able to call our 
reservation office or visit our website to book flights. Passengers can also purchase tickets and make 

reservations at our ticket counters. 

The Cessna Caravan is the most economical 9 passenger turbine aircraft for up to 250 miles. It can carry 

9 passengers with their baggage at the lowest per mile cost from Pendleton to Portland, allowing an 

average ticket price of $79 one way, or $150 round trip. Advance purchase prices for one way will be 

$55 to $65 and there will be no baggage charges. 

The Caravan has room for skis, golf bags, fishing poles, and regular passenger luggage, so nothing gets 

left behind. A nice restroom is installed in the aft. The Caravan is a U.S. manufactured aircraft with 

excellent parts availability at lower costs. It is used in scheduled service all over the world. This is a 

simple aircraft that is easy to maintain, and it has a very high dispatch rate, so there should be very few 

mechanical delays. 

Because of the lower operating costs, 4 round trips can be run at a reasonable EAS subsidy, saving both 

the passenger and the government money. 

Sovereign air's unique reservation system, combined with interline agreements to be put in place, will 

allow passengers to be ticketed to their final destination without concern for baggage transfers. 

SAI's final schedules will be developed by the EAS City Airport Board and SAI to reduce layover times in 

PDX and provide the best possible arrival and departure times for the travelling public. As such, the 

following schedules will likely be adjusted: 

Proposed Schedule Options 

PDT-PDX-PDT 3X Schedule 7 Days/ Week 

Depart 

PDT 

630 

1030 

1700 

Arrive 

PDX 

735 

1135 

1805 

Depart 

PDX 

900 

1200 

1900 

Arrive 

PDT 

1005 

1305 

2005 

PDT-PDX-PDT 4X Schedule 5 Days/ Week, 

3X on Weekend Days 

Depart 

PDT 

630 

1030 

1330 

1700 

Arrive 

PDX 

735 

1135 

1435 

1805 

Depart 

PDX 

900 

1200 

1500 

1900 

Arrive 

PDT 

1005 

1305 

1605 

2005 

M-FOnly 
;ssna 208 

3 Round Trips 

2,124 

2,301 

14,000 

1,106,000 

15,211 

1,121,211 

Direct Costs 

169,920 

509,760 

198,000 

211,333 

192,000 

1,281,013 

Indirect Costs 

1,009,230 

Total Costs 

2,290,243 

Portland PDX - Pendleton DPT 

Departures 

Block Hours 

Passengers 

Pax rev @ $79 

Other rev 

Total Revenues 

Crew Expenses 

Fuel 

Insurance 

Maintenance 

Aircraft Lease 

Total Direct Costs 

Sovereign Air 

4 Round Trips 

2,644 

2,701 

14,000 

1,106,000 

15,211 

1,121,211 

Direct Costs 

211,520 

613,408 

198,000 

263,071 

192,000 

1,477,999 

Indirect Costs 

1,009,230 

Total Costs 

2,487,229 

Departures 

Block Hours 

Passengers 

Pax rev @ $79 

Other rev 

Total Revenues 

Crew Expenses 

Fuel 

Insurance 

Maintenance 

Aircraft Lease 

Total Direct Costs 

1,169,032 Costs-Rev 

114,512 Total Costs * 5% 

1,283,544 Annual Subsidy 

1,366,018 Costs-Rev 

124,361 Total Costs * 5% 

1,490,379 Annual Subsidy 

73% Load Factor 59% Load Factor 

Customer safety and service are Priority One with SAI. Sovereign Air looks forward to providing 

Essential Air Service to the subject cities. 

Sincerely, 

Jon Payne, CFO 

Sovereign Air, Inc.