Sovereign Mr, Inc. DtPIOFTRANSPORlAllON 

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April 1, 2010 

• '^'''< - O i'D ? : j O 

Dennis J. DeVany, Chief 

EAS & Domestic Analysis Division, X-53 

Office of Aviation Analysis 

Department of Transportation 

1200 New Jersey Ave. SE 

Washington, DC 20590 

Re: Proposal to Provide Essential Air Service at: 

Laurel/Hattiesburg, Mississippi 

DOT-OST-2001-10685 

Dear Mr. DeVany: 

In response to Order 2010-2-29, Sovereign Air, Inc. offers the following proposal: 

Sovereign Air, Inc. (SAI) is planning to use the Jetstream 32 as its primary aircraft for these Essential Air 

Service routes. It will be configured with nineteen passenger seats and a belly pod for additional storage 

space. 

Sovereign Air is proposing the aircraft for the exclusive use (no up-line or down-line service) of the 

proposed EAS route. Our flights will service only the EAS city and the indicated Hub. The New Orleans 

HUB is selected to offer more connection capability. Sovereign Air believes that with good schedules, 

proper pricing and a recovering economy, the load factors will likely increase in this market. SAI will 

base its aircraft, crews and maintenance personnel, banking and purchase fuel in the EAS city. This will 

help keep the EAS monies in the local community. 

SAI will have baggage and ticket agreements with the major air carriers in New Orleans (MSY). SAI will 

have cargo agreements for both domestic and international air freight movements. 

SAI has been HAZMAT approved and will be working in conjunction with hospitals to expedite various 

HAZMAT materials that they need to transport. 

SAI's goal is to work hand-in-hand with EAS communities to reduce the need for EAS subsidies within the 

next four to six years. 

Sovereign Air is currently in the process of acquiring its Scheduled Service Authority and anticipates 

being able to start this Essential Air Service by July 1st. 

Sovereign Air will be fully integrated into the Global Distribution System (GDS) in conjunction with 

Worldspan. SAI is not tied to just one airline, allowing Sovereign Air better visibility in the,various 

reservation systems. Passengers will have a broad range of channels through which to purchase tickets, 

including all airline reservation systems and travel agencies. Customers will be able to call our 
reservation office or visit our website to book flights. Passengers can also purchase tickets and make 

reservations at our ticket counters. 

SAI's final schedules will be developed by the EAS City Airport Board and SAI to reduce layover times in 

MSY and provide the best possible arrival and departure times for the travelling public. As such, the 

following schedules will likely be adjusted: 

Proposed Schedule 

Laurel(LUL)/Hattiesburg(HBG) to New Orleans(MSY) 

DEP 

LUL 

6:00 

10:00 

14:00 

18:00 

ARR 

MSY 

6:50 

10:50 

14:50 

18:50 

DEP 

MSY 

8:00 

12:00 

15:00 

20:00 

ARR 

LUL 

8:50 

12:50 

15:50 

20:50 
Sovereign Air, Inc. 

Annual Compensation Requirement for Essential Air Service for 

LUL/HBG-MSY 4rt daily 

Aircraft Type 

Available Seats Per 

Departure 

Passengers Per 

Trip 

Jetstream 32 

19 

9.5 

Block Hours 

Departures 

Total Passengers 

Average Fare 

Revenue Passenger Miles 

Available Seat 

Miles 

Passenger 

Revenue 

Other Rev. @ .6 of pax. Rev. 

% 

Total Revenue 

Aircraft and Hull Insurance 

Fuel and Oil 

Flying Operations 

Other Direct Costs 

Maintenance 

Total Direct Costs 

1,888 

2,832 

26,777 

$73.00 

3,541,258 

7,117,113 

$1,954,721.00 

$11,728.33 

$1,966,449.33 

$25,000.00 

$830,837.33 

$173,720.53 

$739,541.60 

$135,955.20 

$1,905,054.67 

Total Indirect 

Costs $919,419.44 

Total Operating Expenses $2,824,474.11 

Operating Loss 

Profit @ 5% 

Completion Rate 

Subsidy per leg 

Load Factor 

Annual Compensation 

Requirement 

Monthly Compensation 

Requirement 

$858,024.78 

$141,223.71 

$999,248.49 

$83,270.71 

97% 

$352.79 

49.8% 
Customer safety and service are priority one with SAI. Sovereign Air looks forward to providing Essential 

Air Service to Laurel, MS. 

Sincerely, 

Jon Payne, CFO 

Sovereign Air, Inc.