### BEFORE THE

DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

__________________________________________ Essential Air Service at ) ) 

### BRADFORD, PENNSYLVANIA ) Docket OST-2003-14528 DUBOIS, PENNSYLVANIA ) Docket OST-2004-17617 FRANKLIN/OIL CITY, PENNSYLVANIA ) Docket OST-1997-2523 JAMESTOWN, NEW YORK ) Docket OST-2003-14950 PARKERSBURG, WEST VIRGINIA/ ) Docket OST-2005-20734 MARIETTA, OHIO ) ) Under 49 U.S.C. §41731 et seq. ) __________________________________________)

SILVER AIRWAYS PROPOSAL TO PROVIDE SUBSIDIZED AIR SERVICE TO THE COMMUNITIES OF BRADFORD, DUBOIS, AND FRANKLIN/OIL CITY, PENNSYLVANIA AS WELL AS JAMESTOWN, NEW YORK AND PARKERSBURG, WEST VIRGINIA/MARIETTA, OHIO

Correspondence with regard to this document should be addressed to:

Mickey Bowman

Vice President Essential Air Service Silver Airways 1100 Lee Wagener Blvd, Suite 201 Ft. Lauderdale, FL 33315 Telephone: 954-302-5929

Fax: 270-689-2180 E-Mail: mbowman@gosilver.com

Silver Airways cordially submits its proposal to provide con tinuing subsidized air service to the communities of Bradford, DuBois, and Franklin/Oil City, Pennsylvania as well as to the cities of Jamestown, New York and Parkersburg, West Virginia/Marietta, Ohio (hereafter referred to as Parker sburg) to the United Airlines hub at Cleveland Hopkins International Airport. Silver Airways proposal is for a two year period from start of service.

Silver Airways proposes to operate flights, under its existing Un ited Airlines codeshare. The recent merger of Continental and United Airlines has created the largest passenger airline in the world and Silver is proud to bring such a world class product to these cities. Most of these communities are be nefiting from an economic lif t being generated by the development of the Marcellus Shell natural gas field. The combination of these factors should provide for increasing passenger traffic from all of these locations.

Cleveland Hopkins International Airport is a United Airlines’ hub with nearly 200 online daily departures to over 62 cities worldwide. The bank structure at Cleveland is designed to ma ximize connections and enable a seamless travel experience.

Via the United Airlines codeshar e passengers will continue to enjoy through ticketing and pr icing, online and interline baggage connectivity and exposure throughout the Global Distribution Port als. Additionally passengers would continue to enjoy conveniences such as advanced seat selection and pa rticipation in United Airlines’ Frequent Traveler Program.

In compliance with Public Law 100-223, Silver Airways pr oposes to operate these flights using Beech 1900D turboprops that accommodate 19 passengers. The 1900D features additiona l amenities such as stand up headroom and a pressurized cabin. Additionally all Silver Airways flight s will operate under full Part 121 regulations.One of the hallmarks of the Silver Airways operation is our ab ility to provide safe and reliable transportation. Toward this end, Silver Airways intends to utilize its regional maintenan ce base in DuBois, Pennsylvania. This base, established in the fall of 2008, is staffed by some of our airline’s most seas oned technicians. Additionally Silver Airways plans to avail itself of a spare aircraft that will be positioned in DuBois as pa rt of this operation. With this spare aircraft we have great flexibility in responding to any operational challenges and can assure these communities receive the level of operational performance they desire.

This is an “All or Nothing” bid with th e award of all five cities required.

Silver Airways requests that the Department of Transpor tation and the communities of Br adford, DuBois, Franklin/Oil City, PA as well as Jamestown, NY and Parkersburg, WV/Mar ietta, OH waive the right to hold-in Silver Airways upon

issuance of a 120 notice to terminate service. While we do not foresee this to be an issue and plan on serving these communities for many years to come if selected again, we cannot be operationally constrained and kept in a market indefinitely, without the ability to adapt to the changing marketplace.On-line United Domestic Destinations Available Via the Cleveland Hub:

Albany, NY; Atlanta, GA; Austin, TX; Hartford, CT; Bradford, PA; Boston, MA; Burlington, VT; Buffalo, NY; Baltimore, MD; Charlotte, NC; Columbus, OH; Cancun, Mexico ; Cincinnati, OH; Dayton, OH; Denver, CO; Dallas, TX; DuBois, PA; Newark, NJ; Erie, PA; Franklin, PA; Flint, MT ; Grand Rapids, MI; Green Bay, WI; Greenville-Spartanburg, SC; Houston, TX; Indianapolis, IN; Jack sonville, FL; Jamestown, NY; Las Vegas, NV; Los Angeles, CA; New York LaGuardia, NY; Kansas City, MO; Or lando, FL; Harrisburg, PA; Manchester, NH; Milwaukee, WI; Madison, WI; Minneapolis, MN; New Orleans, LA; Chicago, IL; Philadel phia, PA; Phoenix, AZ; Pittsburgh, PA; Parkersburg, WV; Providence, RI; Portland, ME; Raleigh Durham, NC; Richm ond, VA; Rochester, NY; Ft Myers, FL; South Bend, IN; Louisville, KY; Seattle, WA; San Francisco, CA; San Juan, PR; St Louis, MO; Syracuse, NY; Tampa, FL; Montreal, Canada; Toronto, Canada; Washington, DC; Washington Dulles, VA.Service Option 1 36 Weekly frequencies between Bradford, PA; Jamestow n, NY and Cleveland Hopkins International Airport

Silver Airways proposes to operate these flights under its estab lished codeshare relationship with United Airlines. The timing of these flights would be optimized for connections to and from the United Airlines connecting banks in Cleveland. This service constitutes three weekday roundtrips operating in a “round robin” fashion. Thr ee total roundtrips would be operated over the weekend period as well

Silver Airways Sample Flight Schedule Service Option 1

FROM TO DEP ARR FLT EQP FREQ STOP

STA STA TIME TIME NUM

Bradford Cleveland 6:00 am 7:40 am 4023 BE1 X7 1 Bradford Cleveland 12:45 pm 2:20 pm 4024 BE1 7 Only 1 Bradford Cleveland 1:10 pm 2:20 pm 4024 BE1 X67 0 Bradford Cleveland 4:45 pm 6:20 pm 4025 BE1 X6 1

Cleveland Bradford 11:20 am 12:55 pm 4024 BE1 X7 1 Cleveland Bradford 3:25 pm 4:30 pm 4025 BE1 X6 0 Cleveland Bradford 7:25 pm 9:00 pm 4026 BE1 X6 1

---------------------------------------------------------------------------------------------------------------------- Jamestown Cleveland 6:40 am 7:40 am 4023 BE1 X7 0 Jamestown Cleveland 12:25 pm 2:20 pm 4024 BE1 X6 1 Jamestown Cleveland 1:25 pm 2:20 pm 4024 BE1 7 Only 0 Jamestown Cleveland 5:25 pm 6:20 pm 4025 BE1 X6 0

Cleveland Jamestown 11:20 am 12:15 pm 4024 BE1 X7 0 Cleveland Jamestown 3:25 pm 5:15 pm 4025 BE1 X6 1 Cleveland Jamestown 7:25 pm 8:20 pm 4026 BE1 X6 0

(Note: This Schedule is for illustrative purposes an d may not reflect the final published product)

Annualized BFD

‐ CLE BFD

‐ JHW CLE

‐ JHW

Stats & Assumptions @98% @98% @98%

Aircraft Type B19 B19 B19

Departures 461 1,380 1,380

Block Hours 469 658 1,418Service Option 1 48 Weekly frequencies between DuBois, PA a nd Cleveland Hopkins International Airport

Silver Airways proposes to operate these flights under its estab lished codeshare relationship with United Airlines. The timing of these flights would be optimized for connections to and from the United Airlines connecting banks in Cleveland. This service constitutes four weekday ro undtrips with two of those operating in a “round robin” fashion paired with Franklin/Oil City, PA. Four total roundtrips would be opera ted over the weekend period as well, again with two of those roundtrips paired with Franklin/Oil City, PA.

Silver Airways Sample Flight Schedule Service Option 1

FROM TO DEP ARR FLT EQP FREQ STOP

STA STA TIME TIME NUM

DuBois Cleveland 6:00 am 7:35 am 4014 BE1 X7 1

DuBois Cleveland 10:30 am 11:40 am 4015 BE1 X67 0 DuBois Cleveland 1:30 pm 2:40 pm 4016 BE1 Daily 0 DuBois Cleveland 4:50 pm 6:25 pm 4017 BE1 X6 1

Cleveland DuBois 8:40 am 10:15 am 4015 BE1 X67 1 Cleveland DuBois 12:15 pm 1:20 pm 4016 BE1 X7 0 Cleveland DuBois 3:30 pm 4:35 pm 4017 BE1 Daily 0 Cleveland DuBois 7:30 pm 9:05 pm 4018 BE1 X6 1

----------------------------------------------------------------------------------------------------------------------

(Note: This Schedule is for illustrative purposes an d may not reflect the final published product)Service Option 1 24 Weekly frequencies between Franklin/Oil City, PA and Cleveland Hopkins International Airport

Silver Airways proposes to operate these flights under its estab lished codeshare relationship with United Airlines. The timing of these flights would be optimized for connections to and from the United Airlines connecting banks in Cleveland. This service constitutes two weekday roundtri ps and operating in an up-line/down-lin e fashion paired with DuBois, PA. Two total roundtrips would be opera ted over the weekend period as well.

Silver Airways Sample Flight Schedule Service Option 1

FROM TO DEP ARR FLT EQP FREQ STOP

STA STA TIME TIME NUM

Franklin Cleveland 6:45 am 7:35 am 4014 BE1 X7 0 Franklin Cleveland 5:35 pm 6:25 pm 4017 BE1 X6 0

Cleveland Franklin 8:40 am 9:30 am 4015 BE1 X7 0 Cleveland Franklin 7:30 pm 8:20 pm 4018 BE1 X6 0

----------------------------------------------------------------------------------------------------------------------

(Note: This Schedule is for illustrative purposes an d may not reflect the final published product)

Annualized CLE

‐ DUJ CLE

‐ FKL DUJ

‐ FKL

Stats & Assumptions @98% @98% @98%

Aircraft Type B19 B19 B19

Departures 1,022 1,022 1,022

Block Hours 1,141 852 600Service Option 1 48 Weekly frequencies between Parkersburg, WV and Cleveland Hopkins International Airport

Silver Airways proposes to operate these flights under its estab lished codeshare relationship with United Airlines. The timing of these flights would be optimized for connections to and from the United Airlines connecting banks in Cleveland. This service constitutes four weekday roundtrips. Four tota l roundtrips would be operated over the weekend period as

well.

Silver Airways Sample Flight Schedule Service Option 1

FROM TO DEP ARR FLT EQP FREQ STOP

STA STA TIME TIME NUM

Parkersburg Cleveland 6:00 am 7:00 am 4001 BE1 X7 0 Parkersburg Cleveland 9:45 am 10:40 am 4002 BE1 X67 0 Parkersburg Cleveland 1:35 pm 2:30 pm 4003 BE1 Daily 0 Parkersburg Cleveland 5:25 pm 6:20 pm 4004 BE1 X6 0

Cleveland Parkersburg 8:35 am 9:30 am 4002 BE1 X67 0 Cleveland Parkersburg 12:25 pm 1:20 pm 4003 BE1 X7 0 Cleveland Parkersburg 4:15 pm 5:10 pm 4004 BE1 Daily 0 Cleveland Parkersburg 9:00 pm 9:55 pm 4005 BE1 X6 0

----------------------------------------------------------------------------------------------------------------------

(Note: This Schedule is for illustrative purposes an d may not reflect the final published product)

Annualized CLE

‐ PKB

Stats & Assumptions @98%

Aircraft Type B19

Departures 2,454

Block Hours 2,279

### Detailed Cost and Revenue Forecast

Service Option 1 All Markets

Assumed 98% Completion Grd. Total

Aircraft Type B19

Departures 8,741

Block Hours 7,419

Revenue

Pax Ticket Rev 3,582,726 $

EAS Subsidy Required 10,348,117 $

Total 13,930,843 $

DoT Presented Exp Amounts

Fuel 3,565,088 $

Pilot Comp 1,099,042 $

Pilot Training 471,018 $

Crew Travel 141,305 $

Mx ‐ A/F & Line 1,004,839 $

Mx ‐ Engines 1,656,414 $

Mx ‐ Parts & Other 926,336 $

Dist & Other 548,684 $

Station Turns 2,462,151 $

A/C Ownership 1,011,640 $

Promotion

‐ $

Fixed Overhead 380,952 $

Total 13,267,470 $

5% Profit Margin 663,373 $In conclusion, Silver Airways believes that this proposal will provide these communities with superior air service options. We feel the passengers will benefit from seamless, codeshar e service to the United Airlines hub at the Cleveland Hopkins International Airport. With a stimulatory effect of th e recent Continental/United Airlines merger and the economic boon associated with the development of the Ma rcellus Shale Gas Field, Silver Airways hopes to grow these markets. Silver Airways has proven itself as a dependable Essential Air Servi ce provider and has demonstrated a commitment to work

with these communities to address their travel needs. Integrity of service that h as been a hallmark of the Silver Airways operation and we look forward to continuing our relationship with all of the fine cities.

Respectfully Submitted: June 29, 2012

______________________ Mickey Bowman

Vice President Essential Air Service Silver Airways