BEFORE THE . ':' ~i:F.NT O~

UNITED STATES DEPARTMENT OF TRANSPORTATION ;ySPO

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WASHINGTON, D.C. Ah';: rJEF.ATj(jNS

U4 /J.Y 73 P /2: Oq

Essential Air Service at

DUBOIS, PENNSYLVANIA

FRANKLIN, PENNSYLVANIA

Under 49 U.S.C. !l41731 et se .

DOT-OST-2004-17617

DOT-OST-1997-2523

CITY LINK AIR. INC. (CLM PROPOSAL TO PROVIDE SUBSIDIZED AIR SERVICE

AT DUBOIS mU.D AND FRANKLIN <FKLl, PENNSYLVANIA

Please address all correspondence to: City LinkAir, Inc. ~

Telephone: (866) 435-9252 Attn: Joshua G. Newsteder, CEO

Fax: (888) 259-6008 11890 Hidden Hills Drive .

E-Mail: josh@citylinkair.com Jacksonville, FL 32225-1656 City Link Air

«l RedefinIng AI, TI'Gve'

Planned sehedules and eeonomies for this proposal have not ehanged.

CLA submitted its first proposal (140417-1) on April 17,2014. This update clarifies key points of

interest. We believe that CLA is offering DUJ & FKL the safest, most reliable, and realistic proposal.

CLA submits this proposal to provide subsidized air service from Pennsylvania's Pittsburgh International

Airport (PIT) to the communities of DuBois (OUJ) and Franklin (FKL), Pennsylvania.

In compliance with Public Law 100-223, CLA proposes to operate these flights using pressurized, mu1tiengine, turbine powered aircraft piloted by two fully qualified pilots. Aircraft will be equipped, and pilots

will be trained to fly to the lowest instrument approach minimums at every airport served. This allows on

time arrivals at the lowest, legal weather limits for any runway CLA can use.

With an average of 160 daily departures, PIT is the ideal hub to connect DuBois and Franklin passengers

to 37 non stops and hundreds of connecting opportunities worldwide. The convenience and proximity to

DuBois and Franklin enable CLA to meet connecting schedules without the problems endemic to other,

super-saturated hubs. Specifically, there are no restrictions on slots and gates. Flow control into

Pittsburgh is rarely a problem. .

Planned non-stop service from DUJ to PIT takes 35 minutes. and from FKL to PIT just 30 minutes.

This proposed service begins and ends locally, either at DUJ or FKL. This provides the best opportunity

to quickly fly to/from PIT while simultaneously refining robust connection opportunities.

Working closely with the Allegheny County Airport Authority (ACAA), CLA has arranged gate services

closest to the center of all four concourses (gates D-77 or C-52). This provides the shortest walking time

for passengers to all connecting flights while minimizing bag transfer times.

Competitively priced, short trips will realize a more leisurely and un-rushed experience, ultimately

resulting in lower overall costs and shorter travel times in most markets .

140527.) CLA EAS PITDUJ FKL . Page 1
Customer Advocacy

Each EAS community served will have a dedicated CLA station manager whose primary job after safety

will be customer advocacy. It is imperative that our single most important touch point with passengers is

a full time employee with their best interests in mind.

This employee will be a locally recommended, community minded advocate that continuously engages all

civic interests for CLA. This station manager will ensure CLA always provides the best possible air

service.

Service Map for this Proposal

Fr.nklin (FKL)

DuBois (DUJ)

l.

Although CLA's planned aircraft are not equipped with an onboard lavatory it should be noted that the

longest planned flight for this market is 35 minutes. CLA will initially operate under FAA scheduled

commuter rules (Part 135) as it continues to pursue full, Part 121 certification. During this period CLA

will use nine seat configured Beech 200/300s.

140527-1 CLAEAS PIT DUJFKL Page 2
Essential Air Service

Planned Aircraft for fAA 12 I Operations

Beechcraft 19000 - Two Pilots

19Seat, Two Engines, PressurizedTurboprop

Proposal Speed: 230 mph (200 Knots)

Top speed: 328 mph (285 Knots)

Max. Altitude: 25,000 Feet

. - -~ -~- - ~ - ~-- -- -

- ~------..

-

Cobin Interior

140527-1 CLA EAS PIT DUJ FKL Page 3
Essential Air Service

Initial Aircraft for FAA 135 Operations

Beechcraft 200/300 - Two Pilots

9 Seat, Two E.ng/nes, Pressurized Turboprop

Proposal Speed: 230 mph (200 Knots)

Top speed: 328 mph (285 Knots)

Max. Altitude: 31,000 Feet

I' Beeeheraft's 200 and 300 both share the

I: same cabin size, customer experience will be

I

the same. Whether flying the 200/300 or

I Beech 1900, performance is similar.

II

Cabin Interior

With nine seats every passenger enjoys 33 inches of

legroom (2 inches more than a coach seat on larger jets).

Every passenger is afforded 112 pounds of luggage.

£xterlor Luggage

60 cubic feet of underbelly storage accommodates TSA

checked bags. This easily carries up to six golfbags.

CLA intends to provide this service as an FAA part 121

airline. Its current certification (FAA Part 135) prohibits

using the 19 seat Beech 1900. Therefore, CLA will use

Beechcraft 200/300s configured with nine seats

(pictured here) until full FAA 121 certification is

achieved.

Once 121 certification is achieved, CLA will match each

market with the most efficient aircraft.

CLA will always fly these markets with two pilots.

140527.1 eLA EAS PIT DUJ FKL Page 4
Schedules

"

"

"

"

"

$75.00

$75.00

$75.00

From

DuBois

DuBois

DuBois

DuBois

From

Franklin

Franklin

Franklin

From

Pittsburgh

Pittsburgh

Pittsburgh

Pittsburgh

From

Pittsburgh

Pittsburgh

Pittsburgh

CLA's schedules will be optimized to achieve the best connection opportunities in Pittsburgh. Planned

weekday roundtrips to DUl FKL are shown. One day of similar roundtrips would also be offered over the

weekend, usually split between Saturday morning and Sunday evening.

Planned typical Monday-Saturday / Sunday Flight Schedule

To Dep. Arr. Stops Price

'Pittsburgh 5:45 AM 6:20 AM Non-Stop $75.00

Pittsburgh 9:55 AM 10:30 AM Non-Stop "

Pittsburgh 1:05 PM 1:41 PM Non-Stop "

Pittsburgh 5:15 PM 5:51 PM Non-Stop "

To Dep. Arr. Stops

Pittsburgh 7:50 AM 8:19 AM Non-Stop

Pittsburgh 3:10 PM 3:40 PM Non-Stop

Pittsburgh 7:20 PM 7:50 PM Non-Stop

To Dep. Arr. Stops

DuBois 8:49 AM 9:25 AM Non-Stop

DuBois 11:00 AM 11:35 AM Non-Stop

DuBois 4:10 PM 4:45 PM Non-Stop

DuBois 9:20 PM 9:55 PM Non-Stop

To Dep. Arr. Stops .

Franklin 6:50 AM 7:20 AM Non-Stop

Franklin 2:11 PM 2:40PM Non-Stop

Franklin 6:21 PM 6:50 PM Non-Stop

Schedules shown are planned and may change to better serve the community/maximize best connections.

CLA will work with its local station manager/customer advocate and each community to determine the

best schedules that fit into the economics of our business model.

140527-1 CLAEAS PITDUJ FKL Page 5
Making Connections

CLA is aggressively pursuing interline and codeshare agreements and is confident that one or more will

be in place with the dominant carrieres) when service begins. It is our intention to provide the customer

with a seamless, transparent travel experience to and through Pittsburgh.

Meeting early morning and late evening connection banks upholds the true spirit of the EAS program.

Our schedule identifies the maximum number or one-stop travel options from DUJ & FKL while

providing the community with safe, reliable, and reasonably priced service that fits within the economics

of our model.

Dispatch Reliability

The America made Beechcraft all have excellent records of dispatch reliability. The ubiquity of parts and

maintenance allow for a planned 98% dispatch reliability.

CLA wiII have a pre-positioned, ready spare aircraft located at its maintenance base in Clarksburg, West

Virginia. Scheduled travel time from Clarksburg to DUJ or FKL is 45 minutes. Depending on EAS

contracts awarded this "bimked" aircraft may be pre-positioned in Pittsburgh.

Five full crews per aircraft will allow CLA to meet all FAA mandates for schedules, rest, training and

standby. No crews will ever exceed schedule restrictions (FAR part 117, etc.)

No pilots will ever fly a late night flight prior to an early morning flight.

Ticket Prices

Prices shown are the maximum price - As a stand alone bid CLA has to ensure it can responsibly provide

the proposed level of service if awarded these two EAS contracts. Additional EAS contract awards will

achieve economies of scale.' CLA will pass on these multi-contract savings to reduce ticket prices.

140527.1 CLAEAS PITDUJ FKL Page 6
Annual Financial & Operational Metric Summary

Aircraft Type

Departures

Block Hours

o & D Passengers

Average Load Factor

Average One Way,Fare

Statute Miles Flown

Revenue Passenger Mile's (000)

Available Seat Miles (000)

Annual Revenue

Gross Ticket Revenue

CPE & Fees (pFC, 911, FET, & SF)

Net Ticket Revenue

Annual Expenses

, Distribution (GDS, OTA, CC)

Fuel & Consumables

Personnel

Main!. & Main!. Reserves

Station Fees & Rents

Aircraft Rents

Marketing

Other Fixed and Variable Overhead

Total Annual Expenses

Profit (loss)

5% Margin on Cost

Required EAS Subsidy

Required EAS Subsidy per Pax

Respectfully Submitted: May 27, 2014

Joshua G, Newsteder

Chief Executive Officer

City Link Air, Inc.

Beechcraft 200/300

4,382

2,405

17,528

44% (-4 Seats)

$ 75.00

351,754

1,407

3,166

$ 1,314,600

$ 549,065

$ 765,535

$ 123,244

$ ],022,247

$ 836,775

$ 852,066

$ 354,785

$ 295,282

$ 80,000

$ 225,000

$ 3,789,399

$ (3,023,864)

$ 189,470

$ 3,213,334

$ ]83

140527-1 CLA EAS PIT DUl FKL Page 7