ROBERTB. KARNS

105 Main Street

(701) 278-3747

COMMUNllY AIRLINE

DEVELOPMENT

E-Mail: bob@sovereignairinc.com

VPGM

~obereign ~ir lfnt.

BELCOURT, ND 58316

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

OCT. 2, 2012

Re: Proposal to Provide Essential Air Service at:

ELCENTRO, CALIFORNIA DOCKET DOT-OST-2008-0299

Dear Mr. DeVany:

This proposal is to provide basic air service required by order 2012-8-18 (August 17, 2012). Sovereign Air

with the communities help should be ready January 1, 2013.

(fJ!Jf}~

~OBERT B. KARNS

VPGM

Sovereign Air Inc.

763-535-4198

MINNEAPOLIS

5701 KENTUCKY AVE. N

Suite 153

MINNEAPOLIS, MN 55428-3302

(763) 535-4198

PRINTED ON RECYCLED PAPER
SOVEREIGN AIR INC.

Compensation Annual Rrquirements for Essential Air Service at

10/2/2012

ELCENTRO CA

Four Round Trips a Day 24 a Week With A 19 seat Jetstream 31 or 32

97%completion rate

Los Angeles Hub

Proposal #1

DOCKET DOT-OST-2008-0299

Departures:

Mileage st:

Block Hours:

Aircraft Passenger Seats:

Revenue Passenger Miles:

Avaible Seat Miles:

Revenue:

Passengers 14,000 at $75 $1,050,000

Other Revenue

Total Revenues:

2% Passenger revenue $21,000

Expenses:

Direct

Indircet

Atrcraft Lease Perches

Per Block Hour $1,247 $2,263,305

$513,286

$600,000 $300,000

Total Expenses:

Loss

Profit 5.0% Total Expenses

Compensation Annual Required:

Passengers Per departure

L/F

5.78273441

0.30435444

Note: Sovereign will work hand in hand with the Community to get well over 14,000 passengers per year.

To keep funds in EI Centro.

To do reservations in EI Centro.

To base aircraft in EI Centro.

To have crews live in EI Centro.

Sovereign Air will become a member of the EI Centro community.

With EI Centro's assistance Sovereign Air will be certified and operational in time to preform the EI Centro EAS service

2421

181

1815

19

2,534,000

8,325,819

$1,071,000

$3,076,591

($2,005,591)

$153,830

(1,851,761)
SOVEREIGN AIR INC.

Compensation Annual Rrquirements for Essential Air Service at

10/2/2012

ELCENTRO CA

Three Round Trips a Day - 19 a Week With A 30 seat Jetstream 41

97%completion rate

Los Angeles Hub

Proposal 2

DOCKET DOT-OST-2008-0299

Departures:

Mileage st:

Block Hours:

Aircraft Passenger Seats:

Revenue Passenger Miles:

Avaible Seat Miles:

Revenue:

Passengers 14,000 at $75 $1,050,000

Other Revenue

Total Revenues:

2% Passenger revenue $21,000

Expenses:

Direct

Indircet

Atrcraft Lease Perches

Per Block Hour $1,800 $2,299,200

$513,286

$600,000 $300,000

Total Expenses:

Loss

Profit 5.0% Total Expenses

Compensation Annual Required:

Passengers Per departure

L/F

7.31

0.38

Note: Sovereign will work hand in hand with the Community to get well over 14,000 passengers per year.

To keep funds in EI Centro.

To do reservations in EI Centro.

To base aircraft in EI Centro.

To have crews live in EI Centro.

Sovereign Air will become a member of the EI Centro community.

With EI Centro's assistance Sovereign Air will be certified and operational in time to preform the EI Centro EAS service

1916

181

1277

30

2,534,000

10,403,880

$1,071,000

$3,112,486

($2;041,486)

$155,624

($1,885,862)