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# ..es**Kentucky Si<i** **~~ s**  Cost-effective, sustainable rural air service solutions.Generous free checked baggage allowance Aircraft fleet averaging less than six years old Electronic ticketing with major airlines Modern, turbine-powered aircraft Worldwide travel agency sales and ticketing Fares under $90 for more than two years Re-accommodation to m issed connecting flights at no cost Ticketing through all major Internet travel sites Pets accepted in cabin with approved airline kennel Hunting , fishing and sports equipment accepted as checked baggage 2417 toll-free Reservations and Customer Service 

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### Continuous scheduled operations since 1974 Scheduled daily flights throughout Hawaii, New Mexico, Georgia, Kentucky and Tennessee Two-pilot 

### IFRNFR operations with state-of-the art avionics and safety technology Excellent operating and safety history; named Hawaii's best airline by Airways Magazine Sterile and non-sterile airport operations under TSA approved security plans Exemption from Part 139 requirements may save some airports money Scalable, cost-effective model adapts easily to unique rural service delivery requirements Delivering reliable, economically sustainable air transportation for more than thirty-five years

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### • • Ticketed by travel agencies and internet travel portals worldwide Interline ticketing and baggage agreements with more than 65 partner airlines worldwide Electronic Interline ticketing with major domestic and international airlines worldwide, including Continental, Northwest, Delta and US Airways Electronic travel agency ticketing via SABRE, Amadeus and Worldspan GDS Featured in leading consumer-direct travel web sites, including Travelocity, Expedia, ORBITZ, Kayak and Priceline, among others 

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# r olu - n Saving taxpayer dollars, conserving natural resources and reducing carbon emissions through elimination 

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### Efficient , factory new commuter aircraft, scaled to rural utilization trends Dramatically reduced carbon emissions Significant operational savings enable lower fares Reduction and elimination of taxpayer subsidies Unparalleled safety, performance and reliability Multiple aircraft easily scale capacity whenever 18 , 27 or more seats are required Economical, sustainable and proven 

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PASSENGER TRAFFIC FOR ALAMOGORDO 120

100

80

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a**r-------~--------~------------------~------------------------------------~** Oct-10 Nov-10 Oec-lO Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11Pacific Wings, L.L.C. d.b.a. New Mexico Airlines Provision for Esse'ntial Air Service at Alamogordo, NM Albuquerque Service Calculation of Annual Subsidy Needed

ALM -ABO Aircraft type Seats per departure Average completion factor: Departures Block hours:

Other revenue Total operating revenue Operating expense: Flying Operations Fuel and Oil Aircraft and Hull Insurance Maintenance Into aircraft and lease expense

Direct Expense Indirects Total Operating Expense Return at 5% of operating expense

Total Economic Cost Annual Subsidy Need @ 98% 12 roundtrips per week Cessna 208B 9 98% 1,223 1,122

Passengers Average net fare 800 $84.00 Appendix

Total $67,200

67,200 672 $67,872 $140,191 $338,141

$70,500 $134,583 $228,000 $911,415 $284,207 $1,195,622 59,781 $1,255,403 $1,187,531