January 6, 2012

Proposal of Hyannis Air Service, Inc. dba “Cape Air” to provide subsidized Essential Air Service for:

Bar Harbor, Maine

DOCKET DOT-OST-2011-0185

Non-stop to/from Boston 3x Daily in Winter; 1x Daily in Summer

Hyannis Air Service, Inc., dba Cape Air

Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601 

(508) 862-9719
1

Cape Air is a small but robust commuter airline, 

operating and growing since 1989

 First route was Boston –

Provincetown, begun in October 1989 with 

one aircraft

 64 Cessna 402s in five regions, and two 

ATR-42s in Micronesia

 Operating up to 600 flights daily

 In 2011 flew almost 700,000 passengers

 Stable, mature and growing company 

Key facts Cape Air: Leading the pack nine at a time

Photo courtesy Mark Garfinkel (August 7, 2000, Boston)
Cape Air 2011

• 2011 revenue approached $100M 

• Consistently profitable

• Cape Air has purchased six more 

Cessnas, which will bring the fleet total to 70

• 39 airports served, 16 in EAS

2

Captain Krista Poppe

Hyannis based
3

For smaller communities and niche markets, 

Cape Air’s nine-seat planes have proven to be a good fit

 High-frequency, non-stop service

 Interline e-ticketing and baggage agreements

 Complete GDS sales channels:

 866-Cape-Air

 In-house Sabre reservations office

 Reliability thanks to spare aircraft availability

 MOCHA HAGoTDI† culture and community 

investment

Cape Air highlights “Key West Express”

† Make Our Customers Happy And Have A Good Time Doing It
4

Cape Air began service in 1989 with three aircraft...
5

...And one route: Boston – Provincetown 

Provincetown

Boston

Original Cape Air route map

November 1989 schedule
6

Today, Cape Air serves 16 communities in the Northeast...

Northeast route map

Nantucket

Martha’s Vineyard

Provincetown

Boston

Hyannis

New Bedford

Rockland

Lebanon

Saranac Lake

Rutland

Albany

Ogdensburg

Massena

January 2012 route map (including summer-seasonal service)

White Plains

Providence

Augusta
7

...And has developed niches along the East Coast, 

in the Caribbean, Midwest and Micronesia

Florida Keys

Ft. Myers

Key West

Florida

Mid-Atlantic

January 2012 route maps; Maps not to scale

Kirksville

Micronesia

Guam

Rota

Saipan

Anguilla

Nevis

St. Croix

Vieques

Mayaguez

Tortola

St. Thomas

San Juan

Caribbean

Quincy

Ft. Leonard Wood

Cape Girardeau

Marion Owensboro

Kentucky

Missouri

Illinois

St. Louis
8

The Cessna 402 is the workhorse of Cape Air’s fleet
9

Over more than 20 years in business Cape Air has 

invested in the airline features smaller communities need

Feature Established

Reliability

Tickets sold through 

Expedia, Orbitz, Travelocity

Interline e-ticketing 

with all legacy airlines

Checked luggage transfer

with all legacy airlines

TSA security program
AIR SERVICE FOR BAR HARBOR

Thriving in Maine

10
Since Cape Air entered the Maine market in late 2008 with 

service at Knox County Regional Airport, 

their ridership has increased above historical highs

11

13,808

12,768 12,316

11,119

11,744 

14,286 14,234 

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2005 2006 2007 2008 2009 2010 2011

Rockland passengers

Source: US DOT RFPs and Cape Air
When Cape Air started serving Augusta in late 2010,

ridership also increased to modern highs

12

9,178

8,460 8,177

6,569

7,061

8,035

11,034

0

2,000

4,000

6,000

8,000

10,000

12,000

2005 2006 2007 2008 2009 2010 2011

Augusta passengers

Source: US DOT RFPs and Cape Air
The popularity of Cape Air’s Maine service is due to 

complex, inter-related contributions

by Cape Air and our community partners

Low fares

Reliable service

Convenient 

schedule and 

high frequency

Interline ability 

with all network 

carriers

Special 

relationship with

Fully-functioning 

global 

distribution

Community 

partnership

13

Popular 

service

Low fares are a 

powerful tool to 

increase 

ridership. Cape 

Air proposes 

fares averaging 

just $60! 
Cape Air’s partner at Boston, jetBlue, is the largest airline 

at Boston, with 25% of capacity; Cape Air also interlines 

with all of the other legacy airlines

14

JetBlue

25%

American

13%

Delta

13%

United

9%

US Airways

7%

Other

33%

Boston available seat miles

March 2012

Source: OAG
15

Cape Air cities connect seamlessly within 

Logan’s Terminal C with JetBlue, and now United, too

Source: Massport
JetBlue serves most major markets from Boston non-stop,

with a total of 100 daily departures

Rank Destination Daily Departures Rank Destination Daily Departures

1 Fort Lauderdale, FL 8.0 21 Los Angeles, CA 1.8

2 Orlando, FL 7.0 22 Richmond, VA 1.8

3 New York-JFK, NY 6.8 23 Aruba, AW 1.6

4 Washington-National, DC 6.7 24 Cancun, MX 1.2

5 Fort Myers, FL 5.9 25 Austin, TX 1.0

6 Baltimore, MD 5.0 26 New Orleans, LA 1.0

7 West Palm Beach, FL 5.0 27 Nassau, BS 1.0

8 Tampa, FL 5.0 28 Phoenix, AZ 1.0

9 Newark, NJ 3.9 29 San Diego, CA 1.0

10 Washington-Dulles, VA 3.8 30 Seattle/Tacoma, WA 1.0

11 Raleigh/Durham, NC 3.7 31 Sarasota/Bradenton, FL 1.0

12 San Juan, PR 3.0 32 St. Thomas, VI 0.8

13 Buffalo, NY 2.8 33 Long Beach, CA 0.6

14 Pittsburgh, PA 2.8 34 Santo Domingo, DO 0.6

15 San Francisco, CA 2.8 35 Punta Cana, DO 0.5

16 Charlotte-Douglas, NC 2.0 36 Santiago, DO 0.4

17 Jacksonville, FL 2.0 37 St. Maarten, SX 0.4

18 Chicago-O'Hare, IL 2.0 38 Montego Bay, JM 0.3

19 Denver, CO 1.8 39 Providenciales, TC 0.3

20 Las Vegas, NV 1.8 40 San Jose, CA 0.1

16

JetBlue Airways’ daily flights from Boston

March 2012

Source: OAG
JetBlue connections stretch from coast to coast

17

JetBlue Airways’ Boston route map

March 2012

Source: OAG
As with all Cape Air cities served from Boston,

Bar Harbor connections would appear on Jetblue.com

18
Itineraries connecting between Cape Air and Continental 

are available on continental.com

19
At Boston Cape Air interlines with all of the big airlines;

we sell joint e-tickets, and connect checked luggage

20
21

Participation in the global distribution system gives Cape Air’s 

communities access to the world

Cape Air is sold through:
22

Cape Air’s Telephone Reservations Center

Cape Air has had its own reservations center, using the 

industry-standard , system, for more than 15 years

Toll free reservations: 866-CAPE-AIR

Never a booking fee!
23

The key to Cape Air’s success is our friendly people...

Daffodil “Daffy” Day at Cape Air reservations
24

...And our mantra: 

Have

A

Good

Time

Doing

It!

Make

Our

Customers

Happy,

And

Cape Air celebrates Valentine’s Day in the Caribbean
Cape Air takes its environmental responsibility seriously, 

and now powers its headquarters with a rooftop solar array

25
Cape Air’s economical Cessnas can provide 3 daily round 

trips during the off-season, and can be complemented by 

summer-seasonal service in larger aircraft

26

0

1

2

3

4

1/1 2/1 3/1 4/1 5/1 6/1 7/1 8/1 9/1 10/1 11/1 12/1

Proposed daily Bar Harbor – Boston round trips by Cape Air

Memorial Day Weekend through 

Labor Day Weekend Cape Air’s 

service drops to 1 daily round trip 

in deference to service by larger 

aircraft that can more efficiently 

meet peak summer demand. 

Cape Air’s single daily summer 

round trip keeps open the Cape 

Air pilot base. 

Cape Air’s summer reduction would run 102 days from 

the Friday before Memorial Day through Labor Day Monday
27

Nominal Bar Harbor – Boston schedule

To Boston From Boston

Departure Arrival Departure Arrival

6:00 AM 7:24 AM 10:00 AM 11:18 AM

11:38 AM 1:02 PM 2:00 PM 3:18 PM

3:38 PM 5:02 PM 5:27 PM 6:45 PM

To Boston From Boston

Departure Arrival Departure Arrival

6:00 AM 7:24 AM 5:27 PM 6:45 PM

Winter: Tuesday after Labor Day through the Thursday before Memorial Day

Summer: Memorial Day Weekend through Labor Day Weekend
Cape Air proposes Bar Harbor service 

at an annualized rate of $1.67M

28

Drivers

Economics

Frequency note:

To accommodate the unusually strong seasonality of the Bar Harbor market 

Cape Air proposes 3x daily service from the Tuesday after Labor Day through 

the Thursday before Memorial Day. From the Friday before Memorial Day 

through Labor Day Cape Air proposes one daily round trip. This service pattern 

can be complimented by summer-seasonal service in a larger aircraft.

Sched. RTs/Day 2.37

Annual Sched. Dpts 1,784

Completion Rate 97%

Annual Actual Dpts 1,730

PDEW 10.5

Pax/Dpt 4.4

Load Factor 49%

Annual Passengers 7,631

Fuel $583,246 

Maintenance $581,803 

Pilots $171,640 

Ownership $88,969 

Stations $269,239 

Marketing $56,015 

De-icing $29,341 

ARFF $156,891 

General & Admin./Other $85,256 

Operating expense $2,022,401 

Return of 5% $106,442 

Economic Expense $2,128,844 

Passenger Revenue $458,912 

Profit ($1,669,932)

Two-year contract

Subsidy Required $1,669,932 

Per Departure $963 

Four-year contract discount

Subsidy Required $1,631,223 

Per Departure $941 
29

Cape Air would be a great air service provider for Bar Harbor

 Low fares

 Improved non-stop frequency

 Ample fleet of back-up aircraft available at Boston and Hyannis to ensure reliability

 Same terminal connections to JetBlue, Boston’s largest airline

 Full interline connectivity, allowing same-ticket connections with the world

 Global distribution

Cape Air offers the airline amenities Bar Harbor needs:

Cape Air is a great choice for 

Bar Harbor

Hyannis Air Service, Inc., dba Cape Air

Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601 

(508) 862-9719
30

Thank you!
Appendix

Interline Examples on Online Travel Agencies
32

Cape Air is on Expedia.com

Screenshot from Expedia.com showing Cape Air 

LNS-PHX search for travel 22SEP09
33

Cape Air is on Travelocity.com

Screenshot from Travelocity.com showing Cape Air 

ATL-MAZ search for travel 22SEP09
34

Cape Air is on Orbitz.com

Screenshot from Orbitz.com showing Cape Air 

ART-DCA search for travel 22SEP09
Appendix

Boston Air Service Route Maps from Massport
Note: Includes Seasonal Service, Source: OAG & Innovata Schedules

Boston Logan has Nonstop Domestic Service 

to 72 Destinations
Note: Includes Seasonal Service, Source: OAG & Innovata Schedules

Boston Logan has Nonstop International Service 

to 29 Destinations