### ROBERT B. KARNS 

## 105 Main Street (701) 278-3747
E-Mail: bob@sovereignairinc.com VPGM January 15, 2013


### Dennis

### J. DeVany, Chief ,.. , ;-•- __.._

...... -.

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# ~oberetgn**~tr** 

# 3Jnc. BELCOURT, ND 58316



### EAS & 

### DomesticAnalysis Division, X-53 Office ofAviation Analysis Department ofTransportation 1200 NewJerseyAve, SE Washington, DC 20590 Re: Proposal to Provide Essential Air Service at: CARLSBAD, NEW MEXICO DOCKET DOT-OST-2002-12802 Dear Mr. DeVany: The purpose ofthis proposal is to provide basic air service as required by order, 2012-12-4. Sovereign Air can be ready to provide EAS service ifselected. Sincerely,

# ~);p Robert B. Karns VP GM Sovereign Air Inc. MINNEAPOLIS 5701 KENTUCKY AVE. N Suite 153 MINNEAPOLIS, MN 55428-3302 (763) 535-4198 PRINTED ON RECYCLED PAPER 

### COMMUNITY AIRLINE DEVELOPMENT

## SOVEREIGN AIR INC. Compensation Annual Requirementsfor Essential Air Service at January 15,2013 CARLSBAD,NEW MEXICO 7 Daily (14 Weekly) Round Trips One Stop Carlsbad -Roswell- Albuquerque With 19 seatJrtstream 31 2 Engine turboprop pressured aircraft, Standup Cabin with flight attendent 97 

### %completion rate

Departures: Mileagest: Block Hours: Aircraft PassengerSeats: Revenue Passenger Miles: Available Seat Miles: Revenue:

Total Revenues: Expenses:
Total Expenses:
Loss Profit Passengers (CNM) Passengers (ROW) OutherRevenue

Direct Indirect

Compensation Annual Required:

NOTE: Albuquerque Hub

5,571 2,824 8,395 Propsal 

### # 1

2% Passenger Revenue 16,790
At Per Bblock Hr.

5.0%Total Expenses at ai

Schedulewill meetthecarlsbad air servise requirements (aircraft is commited to Carlsbad ONLY) This proposal covers thetotal expense required to initiate and operateCarlsbad's scheduled airserice. Aircraft commitedtocarlsbad- Albuquerque service only. $98.00 $59.00

$1,100.00

Sovereign Air Should beoperational90to 120days afterfunding which comeswith selectingSovereignAir Sovereign Air will have passenger, (ticketing, baggage and cargo) agreementswith mostmagoraircarries and discount carries as well.With increasing ridership morescheduledflights may be added ora 30 seatJetstream thatwould greatly reduced operatingcost per seat reducingticketpricing. $545,958 $166,616 $14,251
$1,811,700

$425,458 1,412 237 1,647

19 1,989,615 6,358,236

$726,825

$2,237,158 $1,510,333

$111,858 $1,422,426

## SOVEREIGN AIR INC. Compensation Annual Requirements for Essential Air Service at January 15,2013 CARLSBAD,NEW MEXICO 7 Daily (14 Weekly)Non Stop Round Trips in 19 seat Aircraft Jetstream 31 

### 2 Engine turboprop pressured aircraft, Standup Cabin with flight attendent 97 

### % completion rate Departures: Mileage st: Block Hours: Aircraft Passenger Seats: Revenue Passenger Miles: Available Seat Miles: Revenue: Passengers Outher Revenue Total Revenues: Expenses: Direct Indirect Total Expenses: Loss Profit Compensation Annual Required:

NOTE: Albuquerque Hub Propsal 

### # 

### 2

5,571 at $99.00 2% Passenger Revenue

At Per Bblock Hr. $1,100.00

5.0% Total Expenses

Ifenplanemens increase by 4 passengers a day athird week day will be added $551,529 $11,031
$1,553,200

$325,936

Jetstream 31 is a 19seat aircraftthat will carry 12 passengers in large executive seats with aflightattendant Seats will be added as passenger load grows Jetstream has head room with stand up cabin as well as a restroom Schedule will meetthe CARSLBAD airservise requirements (aircraft is commited to CARSLBAD 

### ONLY) This proposal covers the total expense required to initiate and operate CARLSBAD'S scheduled air serice. Aircraft commited to CARSLBAD- ALBUQUERQUE service only. Sovereign Air Should be operational 90 to 120 days afterfunding which comes with selecting Sovereign Air Sovereign Air will have passenger, (ticketing, baggage and cargo) agreements with 1,412 230 1,412 19 1,281,330 6,170,440

$562,560

$1,879,136 $93,957 $1,410,533

most magor aircarries and discount carries as well. With increasing ridership the operating cost perseat goes down reducing ticket pricing.

# SOVEREIGN AIR INC. Compensation Annual Requirements for Essential Air Service at January 15,2013 CARLSBAD,NEW MEXICO 2 daily (12 Weekly) Round Trip Non Stop Carlsbad to Albuqureque With 12seat Kingair- 200 Aircraft

Departures: Mileage st: Block Hours: Aircraft Passenger Seats: Revenue Passenger Miles: Available Seat Miles: Revenue: Passengers Outher Revenue Total Revenues: Expenses: Direct Indirect Total Expenses: Loss Profit 

### 2 Engine turboprop pressured aircraftwith flight attendent 97 % completion rate

Albuquerque Hub Propsal 

### # 

### 3

5,571 at $89.00 2% Passenger Revenue

At Per Bblock Hr. $1,050.00

5.0% Total Expenses Compensation Annual Required;

NOTE: Ifenplanemens increase by4 passengers a day a third week daywill be added $495,819 $9,916
$1,271,550

$325,936 1,211 230 1,211 

### 13 1,281,330 3,620,890

$505,735

$1,597,486 $1,091,751 $79,874 

### $1,171,625

The Kingair is 12 seat aircraftthat will configured to carry 9 passengers seats with more legeoom and a flightattendant Seats will be added as passenger load grows Schedule will meetthe CARLSBAD air servise requirements (aircraft is commited to CARLSBAD 

### ONLY) This proposal covers the total expense required to initiate and operate CARLSBAD'S scheduled air serice. Aircraft commited to CARLSBAD- ALBUQUERQUE service only. Sovereign Air Should be operational 90 to 120 days afterfunding which comes with selecting Sovereign Air Sovereign Air will have passenger, (ticketing, baggage and cargo) agreements with most magor aircarries, some discount carries as well. With increasing ridership the operating cost perseat goes down reducing ticket pricing.

# SOVEREIGN AIR INC. Compensation Annual Requirements for Essential Air Service at January 15,2013 CARLSBAD,NEW MEXICO 3 daily (19 Weekly} Round Trip One Stop Carlsbad toAlbuqureque With 12 seat Kingair- 200 Aircraft

Departures: Mileage st: Block Hours: Aircraft Passenger Seats: Revenue Passenger Miles: Available Seat Miles: Revenue: Passengers (CNM) Passengers (ROW) Outher Revenue Total Revenues: Expenses: 

### 2 Engine turboprop pressured aircraftwith flight attendent 97 

### %completion rate

Albuquerque Hub

5,571 2,824 8,395 Propsal #4

2% Passenger Revenue at ai $98.00 $59.00 $545,958 $166,616 $14,251

Direct Indirect Total Expenses: At Per Bblock Hr. $1,050.00 $1,843,800 $325,936
Loss Profit Compensation Annual Required:

NOTE: 5.0% Total Expenses

IfCarlsbad enplanemens increase by 11 passengers a day aJetstream 31 will replace the Kingair 1,916 237 1,756 

### 13 1,989,615 5,903,196

$726,825

$2,169,736 $1,442,911

$108,487 $1,551,397

The Kingair is 12 seat aircraftthatwill configured to carry 9 passengers seats with more legeoom and aflightattendant Seats will be added as passenger load grows Schedule will meet the CARSLBAD airservise requirements (aircraft is commited to CARLSBAD 

### ONlY) This proposal covers the total expense required to initiate and operate CARLSBAD'S scheduled airserice. Aircraft commited to CARSLBAD- ALBUQUERQUE service only. Sovereign Air Should be operational 90to 120 days afterfunding which comes with selecting Sovereign Air Sovereign Air will have passenger, (ticketing, baggage and cargo) agreements with most magor aircarries and discountcarries as well. With increasing ridership the operating cost perseat goes down reducing ticket pricing.