BEFORE THE . - ., :-, .:-.'T G~

UNITED STATES DEPARTMENT OF TRANSPORTATION",s <+;T' " "

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WASHINGTON, D.C. , .;r (I)t-J'-j' ""c

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Essential Air Service at

PARKERSBURG, WEST VIRGINIA

Under 49 U.S.c. g41731 et seq,

l:;~ ;,:Y 23 P :2:0'1

DOT-OST-200S-20734

CITY LINK AIR, INC. (CLA) PROPOSAL TO PROVIDE SUBSIDIZED AIR SERVICE

AT PARKERSBURG fPKB), WEST VIRGINIA

Please address all correspondence to: City Link Air, 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

~ RedefinIng AI, 1h:Jve'

Planned schedules and economics for this proposal have not changed.

CLA submitted its first proposal (140417-6) on April 17,2014. This update clarifies key points of

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

CLA submits this proposal (140527-6) to provide subsidized air service from Pennsylvania's Pittsburgh

International Airport (PIT) to the community of Parkersburg (PKB), West Virginia.

In compliance with Public Law 100-223, CLA proposes to operate these flights using pressurized, multiengine, 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 Parkersburg passengers to 37 non

stops and hundreds of connecting opportunities worldwide. The convenience and proximity of non-stop

flights to Parkersburg 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 PKB to PIT takes 46 minutes

This proposed service begins and ends locally. 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-n 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.

140527-6 CLA EAS PIT PKB Page I
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

,.

! to ... -:, ~ .. (PIT)

Pittsburgh

• •

..

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 46 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.

140527-6 CLA EAS PIT PKB Page 2
-

Essential Air Service

Planned Aircraft for fAA 12 I Operations

Beechcra(t 1900D - Two Pilots

19Seat, Two Engines, Pressurized Turboprop

Proposal speed: 230 mph (200 Knots)

Top speed: 328 mph (285 Knots)

Max. Altitude: 25,000 Feet

----=----~-- ~ - - ~-- - ,.

-

. cuo:.t.l.. I

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Cabin Interior

140527-6 CLA EAS PIT PKB .Page 3
Essential Air Service

Initial Aircraft for fAA 135 Operations

8eechcraft 200/300 - Two Pilots

9 Seat, Two Engines, Pressurized Turboprop

Proposal Speed: 230 mph (200 Knots)

Top speed: 328 mph (285 Knots)

Max. Altitude: 31,000 Feet

"..--------~-~--~-~--------

I Beechcraft's 200 and 300 both share the

I same cabin size, customer experience will be

, the same. Whether flying the 200/300 or

I Beech r 900, performance is similar.

I

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 ofluggage.

exterior Luggage

60 cubic feet of underbelly storage accommodates TSA

checked bags. This easily carries up to six golf bags.

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 12I 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 oilots.

--I

- --

i40527-6 CLA EAS PIT PKB Page 4
Schedules

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

weekday roundtrips to PKB 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

From To Dep. Arr. Stops Price

Parkersburg Pittsburgh 5:45AM 6:31 AM Non-Stop $75.00

Parkersburg Pittsburgh II :34 AM 12:21 PM Non-Stop "

Parkersburg Pittsburgh 2:07 PM 2:53 PM Non-Stop "

Parkersburg Pittsburgh 4:39 PM 5:25 PM Non-Stop "

From To Dep. Arr. Stops

Pittsburgh Parkersburg 10:18AM 11:04AM Non-Stop $75.00

Pittsburgh Parkersburg 12:51 PM 1:37 PM Non-Stop "

Pittsburgh Parkersburg 3:23 PM 4:09PM Non-Stop "

Pittsburgh Parkersburg 10:13 PM 10:59 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.

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 mornin"gand late evening connection banks upholds tlie true spirit of the EAS program.

Our schedule identifies the maximum number of one-stop travel options from PKB 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 reliabiliiy.

CLA will have a pre-positioned, ready spareaircraft located at its maintenance base in Clarksburg, West

Virginia. Scheduled travel time from Clarksburg to Parkersburg is 36 minutes. Depending on EAS

contracts awarded this "banked" 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 II 7, 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 this one EAS contract. Additional EAS contract awards will

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

140527-6 CLA EAS PIT PKB Page 5
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 Miles (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

2,504

1,925

17,528

78% (~7 Seats)

$ 75.00

270,190

1,891

2,432

$ 1,314,600

$ 549,065

$ 765,535

$ 123,244

$ 806,308

$ 836,775

$ 682,136

$ 284,478

$ 295,282

$ 80,000

$ 150,000

$ 3,258,223

$ (2,492,687)

$ 162,911

$ 2,655,598

$ 152

140527-6 CLA EAS PIT PKB Page 6