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# Ai rChoic e On e Multi-Aer o Inc . d/b/ a Ai rChoic e On e Proposa l t o Provid e Essentia l Ai rServic e a t Thie fRive rFalls , Minnesot a

an d Chisholm/Hibbing , Minnesot a Docke t DOT-OST-2001-1064 2 Docke t DOT-OST-2003-1579 6

Direc t inquirie s Regardin g thi s Proposa l to :

Siian e St.on , CEO Ai rChoic e On e Airline s 1.2300 Ol d lesso n Road , Suit e 200 f , S/iin t louis , hA O 6312 3 l^'hone : (866 ) 435'984 7 Fax : (314 ) 843852 7 E rnai h shane@airr.hoiceone.co m'-^'•'' . DTf , jrM Tfi r l-i/•^^!lv1r^j | u r 

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# Ai rChoic e On e Ou rCommitmen t
Ai rChoic e On e i s awar e o fth e man ychallenge s facin g th e Thie fRive rFall s an d Chisholm/Hibbing , Minnesot a communities . W e understan d th e effort s o fa dedicate d ai r carrie rar e critica l t o havin g schedule d airlin e servic e i n th e future . Ai rChoic e On e i s tha t ai rcarrie ran d w e believ e th e strateg youtline d i n ou rproposa l wil l support an d complemen t airport developmen t efforts . W e hav e prove n ou rstrateg ywork s wit h othe r EA S communitie s an d w e are committe d t o deliverin g thes e sam e result s fo rThie fRive r Fall s an d Chisholm/Hibbing . Ou rproposa l wil l giv e th e bes t acces s t o th e nationa l transportatio n syste m fo rth e communit ya t reasonabl e prices . Thi s proposa l i s submitte d a s a standalon e offerin g fo rcombine d servic e t o thes e tw o cities . Ou rproposa l allocate s substantia l resource s t o support marketin g efforts . Ou r achievement s i n ou rothe rEA S market s demonstrat e tha t ou rmarketin g strategie s are successful . Throug h on-sit e communit youtreach , community-specifi cadvertising , consisten t fligh t schedules , an d outstandin g custome rservic e w e wil l quickl ybuil d consume rrecognitio n i n th e communit yensurin g retentio n o fcurren t passenge r momentu m whil e als o workin g t o increas e demand . W e commi t t o providin g yo u wit h outstandin g servic e an d wil l continu e workin g wit h yo u throughou t ou rter m t o provid e th e next leve l o fai rservic e tha t wil l brin g u s al l success . O/lI/JOl l

# Ai rChoice On e Marke t Growt h Strateg y- Airpor t Partnership s Ai rChoic e On e wil l tea m wit h you rloca l airport t o rais e awarenes s abou t you r communities ' ai rservic e an d increas e enplanements .

• LOCA L AIRPOR TINITIATIVE S • Provid e Groun d Handlin g • Provid e Financia l Suppor t Throug h Discounte d Fue l Costs , Landin g Fees , an d Renta l Agreement s • Provid e Telephon e an d Interne t Servic e • Educat e th e Communityabou t th e EAS Progra m an d Ai rChoic e One' s Servic e • Draf t an d Distribut e Pres s Release s • CommunityInvolvemen t • Participat e i n T

V an d Radi o Coverag e • Distribut e Informatio n Pertainin g t o Ai rChoic e On e at Loca l Busines s Events • Hig h VisibilityPresenc e o n CityWebslte(s ) an d Electroni cSignag e

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# Ai rChoice On e Marke t Growt h Strateg y

Airpor t Partnership s Ai rChoic e On e wil l tea m wit h you rchose n destinatio n airport t o promot e touris m opportunitie s an d encourag e ai rtrave l t o you rcommunity , again , increasin g enplanements .

• MINNEAPOLIS-ST.PAU L INTERNATIONA L AIRPOR T(MSP ) INITIATIVE S • EA S Communitie s Receivin g Reliabl e Servic e t o Hu b Airport s Have Benefite d Fro m a Stead y Increas e i n Ridershi p • Marke t Vacatio n Package s t o MS P an d Beyon d an d t o Loca l Communitie s Fro m MS P • Ai rChoic e On e Flight s wil l b e Service d byDelt a Groun d Service s (DGS )

10/l;!/201 1

# Ai rChoic e On e Marke t Growt h Strateg y-

Partnerin g Wit h th e Communit y Ai rChoic e On e I s dedicate d t o workin g wit h you rcommunity t o relnvigorat e th e servic e a t you rairpor t an d sustai n growt h tha t wil l launc h u s int o th e future .

• W E AR E YOU R NEIGHBOR S •Corporat e Headquarters I n Midwest ' " • •Increas e Loca l Caree rOpportunitie s • W E AR E I N YOU R COMMUNIT Y •Routin e On-Sit e Sale s Visit s
, .••Chambe rofCommerc e Participatio n an d Membershi p •Airpor t Affiliat e Participatio n • STRON G PUBLI C RELATION S AN D MEDI AOUTREAC H •Busines s Incentiv e Program s •Trave l Agen t Discount s •Busines s t o Busines s Communicatio n •Attendanc e a t Publi cEvents • W E KEE P YO U INFORME D •Monthl yAirpor

t Board Update s

# Ai rChoic e On e Marke t Growt h Strateg y Marketin g Investmen t Ai rChoic e On e reinvest s i n ou rserve d communities .

•TRADITIONA L MEDI A •Radio-Tal k

Shows/Commercial s •TV Commercial s an d Even t Coverag e •Print-Newspaper/IVIagazine s •Billboard s •We b Base d

- E-Blasts - Constan t Contact

- Monthl yE-Mai l Promotion s

- CityRepresentatio n o n Ou rWebsit e •SOCIA L MEDI A •Twitter , Facebook , Linke d I n •INTERACTIV E MEDI A •Contest s •Yo u TubeA/ideo s •EVENT S AN D SPONSORSHIP S •Loca l Charitabl e Suppor t - Marc h o fDimes , Make-A-Wis h Foundation , Re d Cross , etc . •Business/CommunitySuppor t - Gol fTournaments , Busines s Luncheons , Ai rShows , etc . •COMMUNITYTICKE TOFFIC E -!MWiS5^5^|8 W

I0/i;:/20 U

# Ai rChoic e On e Marke t Growt h Strateg y- Reliabilit y& Growt h

Airlin e Completio n Ratio s

Worl<s Cited : T-lOO Segmen t Repor t DO T201 0 Calenda rYea r Am . Gr. Lake

s Se a Por t Ai r Eagl e Choic e 

### Airlin e •CONSISTEN TSERVIC E I S KE Y •Prove n Succes s i n Othe rEA S Market s •Build s Passenge rConfidenc e i n Carrie r •Dedicate d Aircraf t fo ryou rAirpor t

- 102 % Fligh t Completio n Rati o a s Reporte d b yDO TY R 201 0

- Spar e Aircraf t Availabilit y 

### •AI R CHOIC E ONE' S REVENU E INCREASE D B YOVE R 20 % Y E 201 0 VS . 200 9

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# Ai rChoic e On e Marke t Growt h Strateg y Accessibilit y

• VISIBILIT Y •Globa l Distributio n System s -Sabre , Apollo , Worldspan , Travelport , Amadeus , etc . •Consume rSfte s -Expedia , Travelocity , Prlceline , Orbitz , etc . •We b base d bookin g -www.aircholceone.co m •Cal l Cente r -Ope n 7 Days a Wee k



### • CONNECTIVIT Y •Unite d Airline s Agreemen t •Additiona l Legac

yAgreement s Pendin g Departin g fligh t fro m Burlington , l A(BRL ) t o Me wYor k City , N Y( t 'A-e d ou!2 0 20'I-K8d , Jul2 7 201 1 fo r1 Adul t

I $29 0 Tota l S326 Toia

l $32 6

ste p 1 ; Selec ta rtin g Fligh tFro m S tLouis , M O t o Burlington , l A

LowfstFanSummir Y 10/i::/201. i 56 0 5» . ••mmmmi^mmim^^^ .

# Ai rChoic e On e Marke t Growt h Strateg y- Pricin g Ai rChoic e On e offers th e righ t pric e fo rth e righ t ticke t a t th e righ t time . W e take al l thing s int o consideratio n an d ente rth e marke t wit h lowfares . W e wor k hard t o establis h a winnin g pric e poin t throug h targete d marke t analysis . W e believ e consisten t pricin g build s consume r confidence .

• BUILDIN G & SUSTAININ G RIDERSHI P THROUG H PRIC E •Introductor

yFare s Pea k

Interes t an d Drive Passengers t o Ai rChoic e On e an d You rAirpor

t •On-Goin g Affordabl e Fare s = Ful l Planes ! •Ful l Plane s Establis h th e Custome r Bas e Neede d t o Reduce Future Subsid yRequirement s Ai rChoic e On e Ridershi p Growt h EA S Market s 2010-2011 * 3,00 0 1 2 2,50 0 

### I 2,000 (A 

### I 1,50 0 5 1,00 0 50 0 0 H201 0 B2o n a (

D o 9 - o 

## ^ < t Mont h o f Servic e

'Number s Reflect O & D 10/.i;:/20 U

# Ai rChoic e On e Marketin g Growt h Strateg y-

Buildin g O n AGrea t Foundatio n AI R CHOIC E ON E WIL L BUIL D O N MINNEAPOLIS-STPAU L INTERNATIONAL' S MOMENTUM !

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# Ai rChoic e On e Option s Inde x- Combine d Servic e Thie fRive rFall s & Chisholm/Hibbing , M N

OPTIO N 1 , 2 YEAR SERVIC E - MS P COMBINE D SERVIC E

CESSN AGRAN D CARAVA N Combine d Servic e - Thie fRive rFall s & Chisholm/Hibbing , Minnesot a - Minneapolis-St . Pau l Internationa l Airpor t Cessn a Gran d Carava n TVF/1 8 & HIB/3 6 Roun d Trip s Pe rWeel <

10/i2/201. 1

# Ai rChoic e On e Combine d Servic e - Thie fRive rFall s & Chisholm/Hibbing , Minnesot a - Cessn a Gran d Carava n Optio n 1 : 2 Yea rServic e TVF/1 8 & HIB/3 6 Tota l Roun d Trip s Pe rWee k - Base d o n 98 % Completio n Rate Combine d Servic e -Thie fRive rFall s & Chisholm/Hibbing , iVl N - Minneapolis-St . Pau l Internationa l Airpor t - Carava n Operatio n Revenue s TVF-HIB-MS P & HIB-IVIS P Revenue s $ 1,551,70 0 Othe rRevenue s 0 Tota l Operatm g Revenue s Direc t Operatin g Expense s Flyin g Operation s Fue l an d Oi l Maintenanc e Aircraf t Leases Tota l Direc t •Marketin g Indirec t Tota l Operatin g Expense s Operatin g Los

s Profi t Elemen t (5 % tota l Oper . Exp. ) $ 1,551,70 0 $ 567,88 4 1,505,43 5 1,054,64 3 760.00 0 $3,887,96 2 120,00 0 ^ M 1.354.53 9 $5,362,50 1 $3,810,80 1 268.12 5 # Passengers : Averag e Fare : Departures : Bloc k Hours : Revenu e Passenge rMiles : Availabl e Sea

t Miles : 26,30 0

$59.0 0 5,51 9 5,40 8 4,523,40 0 8,554,40 4

Compensatio n Require d $4,078,92 6 Compensatio n pe rPA

X Compensatio n pe rDepartur e $15 5 $73 9 lo/nnoi i

# Ai rChoic e On e Combine d Servic e - Thie fRive rFall s & Chisholm/Hibbing , Minnesot a - Cessn a Gran d Carava n Optio n 1 : 2 Yea rServic e TVF/1 8 & HIB/3 6 Tota l Roun d Trip s Pe rWeek - Based o n 98 % Completio n Rate Combine d Servic e - Thie fRive rFall s & Chisholm/Hibbing , M N - Minneapolis-St . Pau l Internationa l Airpor t - Carava n Representativ e Schedul e Departur e TV F @ 5:0 0 A M C

T MS P @ 8:0 0 A M C

T MS P @ 5:3 0 A M C

T MS P @ 8:0 5 A M C

T MS P @ 10:4 0 A M C

T TV F @ 11:0 0 A M C

T MS P @ 2:0 0 P M C

T MS P @ 2:0 0 P M C

T TV F @ 5:0 0 P M C

T MS P @ 8:2 5 P M C

T MS P @ 5:1 0 P M C

T MS P @ 7:3 5 P M C

T Arriva l HIB@5:50AMC T HI B @ 8:5 0 A M C

T HI6 @ 6:2 0 A M C

T HI B @ 8:5 5 A M C

T HI B @ 11:3 0 A M C

T HI B (5 ) 11:5 0 A M C

T HI B @ 2:5 0 P M C

T HI B @ 2:5 0 PMC T HI B @ 5:5 0 P M C

T HI B @ 9:1 5 PMC T HI B @ 6:0 0 P M C

T HI B @ 8:2 5 P M C

T Departur e HI B @ 6:0 5 A M C

T HI B @ 9:0 5 A M C

T HIB- @ 6:3 5 A M C

T HI B @ 9:1 0 A M C

T HI B @ 11:4 5 A M C

T HI B @ 12:0 5 P M C

T HI B @ 3:0 5 P M C

T HI B @ 3:3 5 P M C

T HI B @ 6:0 5 P M C

T HI B @ 9:3 0 P M C

T HI B @ 6:1 5 P M C

T HI B @ 8:4 0 P M C

T Arriva l MS P @ 6:5 5 A M C

T TV F @ 9:5 5 A M C

T MS P @ 7:2 5 A M C

T MS P @ 10:0 0 A M C

T MS P @ 12:3 5 P M C

T MS P @ 12:5 5 P M C

T TV F @ 3:5 5 P M C

T MS P @ 4:1 5 P M C

T MS P @ 6:5 5 P M C

T TV F @ 10:2 0 P M C

T MS P @ 7:0 5 P M C

T MS P @ 9:3 0 P M C

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# Ai rChoic e On e Th e Bes t Choic e t o Succee d

•Prove n Enplanemen t Increase s i n EA S Market s •Successfu l Pricin g Strateg y •Demonstrate d Growt h i n Communit ySupport •Prove n Reliabilit y •Outstandin g Completio n Rati o •Grea t Hu b Connectivit y •Successfu l Marketin g an d Publi cRelation s Outreac h •Rais e Awarenes s Abou t Loca l Ai rServic e •W e Cate rt o Communit yan d Busines s Need s 

# W e Loo k

Forwar d t o Servin g You l

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