# Sovereig nMr , Inc
. DtPIOFTRANSPORlAllO N !';:)Ci;'-T S Apri l1 , 201 0
•'^''' < - O i' D ? : j O Denni s J
. DeVany , Chie f EA S & Domesti cAnalysi s Division , X-5 3 Offic e o fAviatio n Analysi s Departmen to fTransportatio n 120 0 Ne wJerseyAve
. S E Washington , D

C 2059 0 Re : Proposa l t o Provid e Essentia l Ai rServic e at : Laurel/Hattiesburg , Mississipp i 

### DOT-OST-2001-1068 5
Dea rMr
. DeVany : I n respons e t o Orde r2010-2-29 , Sovereig n Air , Inc
. offer s th e followin g proposal : Sovereig n Air , Inc
. (SAI ) i s plannin g t o us e th e Jetstrea m 3 2 a s it s primar yaircraf tfo rthes e Essentia l Ai r Servic e routes
. I twil l b e configure d wit h ninetee n passenge rseat s an d a bell ypo d fo radditiona l storag e space . Sovereig n Ai ri s proposin g th e aircraf tfo rth e exclusiv e us e (n o up-lin e o rdown-lin e service ) o fth e propose d EA

S route
. Ou rflight s wil l servic e onl yth e EA S cit yan d th e indicate d Hub
. Th e Ne wOrlean s HU B i s selecte d t o offe rmor e connectio n capability
. Sovereig n Ai rbelieve s tha twit h goo d schedules , prope rpricin g an d a recoverin g economy , th e loa d factor s wil l likel yincreas e i n thi s market
. SA I wil l bas e it s aircraft , crew s an d maintenanc e personnel , bankin g an d purchas e fue l i n th e EA S city
. Thi s wil l hel p kee p th e EA

S monie s i n th e loca l community
. SA I wil l have baggag e an d ticke tagreement s wit h th e majo rai rcarrier s i n Ne wOrlean s (MSY)
. SA I wil l hav e carg o agreement s fo rbot h domesti can d internationa l ai rfreigh tmovements
. SA I has bee n HAZMA

Tapprove d an d wil l b e workin g i n conjunctio n wit h hospital s t o expedit e variou s HAZMA Tmaterial s tha tthe ynee d t o transport
. SAI' s goa l i s t o wor k

hand-in-han d wit h EA

S communitie s t o reduc e th e nee d fo rEA S subsidie s withi n th e nex tfou rt o si xyears . Sovereig n Ai ri s currentl yi n th e proces s o facquirin g it s Schedule d Servic e Authorit yan d anticipate s bein g abl e t o star tthi s Essentia l Ai rServic e byJul y1st
. Sovereig n Ai rwil l b e full yintegrate d int o th e Globa l Distributio n Syste m (GDS) i n conjunctio n wit h Worldspan
. SA I i s no ttie d t o jus ton e airline , allowin g Sovereig n Ai rbette rvisibilit yi n the,variou s reservatio n systems
. Passenger s wil l have a broa d rang e o fchannel s throug h whic h t o purchas e tickets , includin g al l airlin e reservatio n system s an d trave l agencies
. Customer s wil l b e abl e t o cal l ou rreservatio n offic e o rvisi tou rwebsit e t o boo k flights
. Passenger

s ca n als o purchas e ticket s an d mak e reservation s a t ou rticke tcounters
. SAI' s fina l schedule s wil l b e develope d byth e EA S CityAirpor tBoard an d SA I t o reduc e layove rtime s i n MS Yan d provid e th e bes tpossibl e arriva l an d departur e time s fo rth e travellin g public
. A s such , th e followin g schedule s wil l likel yb e adjusted : Propose d Schedul e

Laurel(LUL)/Hattiesburg(HBG ) t o Ne wOrleans(MSY ) DE P LU L 6:0 0 10:0 0 14:0 0 18:0 0 AR R

MS Y 6:5 0 10:5 0 14:5 0 18:5 0 DE P

MS Y 8:0 0 12:0 0 15:0 0 20:0 0 ARR

LU L 8:5 0 12:5 0 15:5 0 20:5 0Sovereig n Air , Inc
.

Annua l Compensatio n Requiremen tfo rEssentia l Ai rServic e fo r LUL/HBG-MS Y 4rtdail y Aircraf t Typ e Availabl e Seat s Pe r Departur e Passenger s Pe r Tri p Jetstrea m 3 2 1 9 9. 5
Bloc k Hours Departure s Tota l Passenger s Averag e Far e Revenu e Passenge rMile s Availabl e Sea t Mile s Passenge r Revenu e Othe rRev
. @
. 6 ofpax . Rev
. % Tota l Revenu e Aircraftan d Hul l Insuranc e Fue l an d Oil Flyin g Operation s Othe rDirectCost s Maintenanc e Tota l DirectCost s 1,88 8 2,83 2 26,77 7 $73.0 0 3,541,25 8 7,117,11 3 $1,954,721.0 0 $11,728.3 3 $1,966,449.3 3 $25,000.0 0 $830,837.3 3 $173,720.5 3 $739,541.6 0 $135,955.2 0 $1,905,054.6 7 Tota l Indirect Cost s 

### $919,419.4 4 Tota l Operatin g Expense s 

### $2,824,474.1 1 Operatin g Los s Profi t@ 5 %

Completio n Rat e Subsid ype rle g Loa d Facto r Annua l Compensatio n Requiremen t Monthl yCompensatio n

Requiremen t 

### $858,024.7 8

$141,223.7 1 $999,248.4 9 $83,270.7 1 97 % $352.7 9 49.8 %Custome rsafet yan d servic e ar e priorit yon e wit h SAI
. Sovereig n Ai rlooks forwar d t o providin g Essentia l

Ai rServic e t o Laurel , MS
. Sincerely ,
Jo n Payne , CF

O Sovereig n Air , Inc
.