August 29, 2012

Proposal of Hyannis Air Service, Inc. dba “Cape Air” to provide subsidized Essential Air Service for:

Ft. Leonard Wood, Missouri

DOCKET DOT-OST-1996-1167

Four daily non-stop flights to/from Lambert - St. Louis International Airport

With --------------------------- codeshare

Hyannis Air Service, Inc., dba Cape Air

Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601 

(508) 862-9719
Cape Air has been privileged to serve the Waynesville –

St. Robert Regional Airport since December 2010

1

Ribbon cutting for Cape Air’s service at Ft. Leonard Wood, MO

December 14, 2010
Since then ridership has increased to 15,843 passengers, 

up 78% from the predecessor’s final year

2

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Sep-08

Nov-08

Jan-09

Mar-09

May-09

Jul-09

Sep-09

Nov-09

Jan-10

Mar-10

May-10

Jul-10

Sep-10

Nov-10

Jan-11

Mar-11

May-11

Jul-11

Sep-11

Nov-11

Jan-12

Mar-12

May-12

Jul-12

Ft. Leonard Wood air service ridership

Year ending 15,843

8,884
Cape Air’s customized service for Ft. Leonard 

Wood, including a dedicated freighter aircraft when needed, 

meets the route’s extraordinary baggage requirement

3

Supervisor Carola Prewett and Capt. Eric Hodges marvel at a flight’s checked luggage
EXTRA! EXTRA!

Ridership at Ft. Leonard Wood has been strong enough to 

support extra, unsubsidized flights every Friday

4

Strong ridership trends

augur well for even more extra 

flights outside the EAS program

From Ft. Leonard Wood to St. Louis From St. Louis to Ft. Leonard Wood

Depart Arrive Flight # Operates Depart Arrive Flight # Operates

530 622 1180 X67 930 1024 1181 X7 

700 752 1184 6 1205 1259 1185 7

1045 1137 1186 Daily 1240 1334 1185 X7 

1400 1452 1188 Daily 1530 1624 1187 Daily

1655 1747 1190 Daily 1845 1939 1191 6

2013 2105 1194 5*7 1859 1953 1189 5*7

2145 2239 1195 X6 

Cape Air’s Ft. Leonard Wood – St. Louis schedule

*Extra frequencies operated outside EAS highlighted in red
The empirical success in ridership growth at Ft. Leonard 

Wood is due to a service solution that fits

Low fares

Safe and 

conservative 

operating 

philosophy

Convenient 

schedule

Interlines with 

all legacy 

airlines at St. 

Louis

Codeshare with

Fully-functioning 

global distribution

plus local outreach

Effective 

baggage 

solution

5

Popular 

service

Constellation of success
Cape Air is flying more passengers now in nine-seat aircraft 

than our predecessors were flying in larger aircraft

6

The quality and 

completeness of the entire 

airline package is 

demonstrably a more 

important driver of 

ridership growth than 

aircraft size and 

amenities. 

15,000+ people said so 

in the last year!
Supporting community events is the best part of the job!

7

Independence Day Celebration

Passing out candy at Christmas on the Square

Passing out in-flight meals at Music on the Square
Cape Air respectfully requests the privilege 

of continuing to serve Ft. Leonard Wood

8
CORPORATE UPDATE

Cape Air

9
Cape Air Update: Summer 2012

• Growing steadily and profitably

• YE1H12 revenue exceeded $100M 

• Cape Air has purchased three more 

Cessnas, which will bring the fleet total to 70

• 40 airports served; 17 in EAS

10

Captain Krista Poppe

Boston based
San Juan

Map not to scale

Guam

Rota

Saipan

Micronesia

Caribbean

Florida

Midwest

Mid-Atlantic

Northeast

Provincetown

Hyannis

Nantucket

Providence

New Bedford

Martha’s Vineyard

Boston

Augusta

Lebanon

Rutland

Ogdensburg Saranac Lake

Massena

White Plains

Albany

Ft. Leonard Wood

Cape Girardeau

Marion

Kirksville Quincy

St. Louis

Lancaster

Hagerstown

Baltimore

Key West

Ft. Myers

Mayaguez

Vieques St. Croix

Tortola

St. Thomas

Anguilla

Nevis

Cape Air Routes

August 2012

Cape Air is proud to be 

America’s largest and most 

mature commuter airline

Owensboro

Manhattan

Rockland

Bar Harbor
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Over more than 20 years Cape Air has invested 

in the airline features smaller communities need

Feature Established

Reliability

Tickets sold through 

Expedia, Orbitz, Travelocity

Interline e-ticketing 

with all legacy airlines

Checked luggage transfer

with all legacy airlines

TSA security program
On February 25, 2012 Cape Air became the launch 

customer for ’s new passenger service system

13
Cape Air’s St. Louis service now features 

a very popular inter-terminal shuttle

• Secure, ramp-side shuttle transports Cape Air 

Passengers from our gate to connecting flights 

on other concourses

• Return passengers call the shuttle for pick up 

from courtesy phones located in each of the 

concourses

• Airport signage is a work in progress

14

Eliminates TSA rescreening 

in St. Louis

Shuttle highlights
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Cape Air has been an interline carrier since 1993

enabling connectivity with most major airlines...

• Interline e-ticket agreements are in place with all US legacy airlines

• Cape Air operates flights in Micronesia as

• Flights in the Caribbean have a code 

• Cape Air is one of only a few airlines that can interline with 

• Flights in the Midwest operate with the code of 

Interline highlights
...And interlines with all of the legacy airlines 

plus JetBlue and Frontier

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Luggage gets checked through to the final destination

17

A Cape Air interline bag cart in action at St. Louis

Cape Air’s 

interline bag cart

at St. Louis 
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Participation in the global distribution system gives Cape Air’s 

communities access to the world

Cape Air is sold through:
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Cape Air’s Telephone Reservations Center

Cape Air has its own internal reservations center...

800-CAPE-AIR

Never a booking fee!
...And a new ticket office opening soon 

in downtown Waynesville

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Cape Air’s St. Louis service began operations on 

November 8, 2009 

21

Cape Air’s St. Louis region route map

As of November 2009

Cape Air’s first St. Louis arrival taxis in!

November 8, 2009; Sandi Dorrin, STL Asst. Station Manager
The operation now includes six EAS cities, 

ten aircraft and up to 64 flights per day

22

Cape Air’s St. Louis route map

As of August 2012
Cape Air’s ridership in St. Louis has grown steadily 

to more than 80,000 annual passengers

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St. Louis passengers on Cape Air

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

OWB

TBN

IRK

UIN

MWA

CGI

80,463
In addition to interline ability with all network carriers at St. 

Louis, Cape Air’s service is codeshared with American Airlines

24

Codeshare partners: American Airlines and Cape Air

Photo source: Jim Schnobrich; Used with permission
Ft. Leonard Wood connecting itineraries 

are sold on AA’s website 

25
Cape Air is co-located with American Airlines

in St. Louis’ Concourse C

26

Cape Air
Ft. Leonard Wood is on United.com, too,

through Cape Air’s long-standing relationship with United

27
To best serve the Ft. Leonard Wood community’s 

travelers, Cape Air proposes continued passenger and 

freighter service, with the freighter used only as required

28

Drivers

Passenger Economics

Two year contract

Daily RTs 4.0

Annual Sched. Dpts 2,920

Pax/Dpt 5.6

Load Factor 62%

Annual Passengers 15,805

Avg. Net Fare $87.31 

Passenger Rev/Dpt $487 

Fuel $731,703 

Maintenance $662,588 

Pilots $294,312 

Ownership $191,464 

Rents $18,269 

Staff $171,146 

Ops and Landing Fees $115,620 

Freighter Fixed Expenses $277,106 

Marketing $44,923 

General & Admin./Other $227,920 

Operating expense $2,735,052 

Return of 5% $143,950 

Economic Expense $2,879,002 

Passenger Revenue $1,379,861 

Profit ($1,499,141)

Annual Operating Subsidy Required $1,499,141 

Subsidy Per Departure $529 

Per Passenger $95 

Discount for four-year contract

Annual Operating Subsidy Required $1,449,385 

Subsidy Per Departure $512 

Per Passenger $92 

Required Usage Pct Dpts Annual

50% 1,460 $827,443 

60% 1,752 $992,932 

70% 2,044 $1,158,420 

80% 2,336 $1,323,909 

85% 2,482 $1,406,653 

Freighter: $567/dpt

Freighter notes: 

•Freighter only used when needed 

•Utilization of the freighter is a function of 

enplanements, which will keep the per-passenger 

subsidy below $200.

•Maximum eligible usage is proposed at 85%

Cape Air offers (and prefers) a four-year discounted 

contract to improve stability and planning 
29

Cape Air would be honored to continue serving 

Ft. Leonard Wood!

 Four daily flights to/from St. Louis with a proven baggage solution

 Spare aircraft in the region helps ensure a reliable operation

 ----------------------------- codeshare, plus interline connections, ticketing and bag transfer with most 

major airlines; global distribution

 A healthy, strong, independent airline that cares passionately about serving communities

Proposal highlights

Cape Air is a great choice for 

Ft. Leonard Wood

Hyannis Air Service, Inc., dba Cape Air

Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601 

(508) 862-9719
30

Thank you!
Appendix

Interline Examples on Online Travel Agencies
32

Cape Air is on Expedia.com

Screenshot from Expedia.com showing Cape Air 

LNS-PHX search for travel 22SEP09
33

Cape Air is on Travelocity.com

Screenshot from Travelocity.com showing Cape Air 

ATL-MAZ search for travel 22SEP09
34

Cape Air is on Orbitz.com

Screenshot from Orbitz.com showing Cape Air 

ART-DCA search for travel 22SEP09