January 21, 2011

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

Mayaguez, Puerto Rico

DOCKET DOT-OST-2004-19622

Four daily non-stop flights to/from San Juan International Airport

With ------------------------- codeshare

Hyannis Air Service, Inc., dba Cape Air

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

(508) 862-9719

Please direct media inquires to Leslie Myrbeck, director of community relations, at 508-862-9764 
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

 Presently flying 62 Cessna 402s in five 

regions, and two ATR-42s in Micronesia

 Operating up to 600 flights daily

 In 2010 flew almost 650,000 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)
2

For smaller communities and niche markets, 

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

 High-frequency, non-stop service

 codeshare at Mayaguez

 Interline e-ticketing and baggage agreements 

with most other major airlines

 Complete GDS sales channels:

 866-Cape-Air

 In-house “Sabre” reservations office

 Reliability

 MOCHA HAGoTDI† culture and community 

investment

Cape Air highlights Ready for the next flight from Mayaguez to San Juan

† Make Our Customers Happy And Have A Good Time Doing It
3

Cape Air began service in 1989 with three aircraft...
4

...And one route: Boston – Provincetown 

Provincetown

Boston

Original Cape Air route map

November 1989 schedule
5

Today, Cape Air serves 17 communities in the Northeast...

Northeast route map

Nantucket

Martha’s Vineyard

Provincetown

Boston

Hyannis New Bedford

Rockland

Lebanon

Saranac Lake

Rutland

Albany

Watertown

Ogdensburg

Massena

January 2011 route map

White Plains

Providence

Augusta
Midwest

Illinois

Missouri Cape Girardeau

Marion

Quincy

St. Louis

Ft. Leonard Wood

6

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

in the Caribbean, Midwest and Micronesia

Florida Keys

Ft. Myers

Key West

Florida

Mid-Atlantic

Jan. 2011 route maps; Maps not to scale

Kirksville

Caribbean

Ponce

Mayaguez

San Juan

Vieques

St. Croix

St. Thomas

Tortola

Anguilla

Micronesia

Guam

Rota

Saipan
7

Cape Air has been an interline carrier since 1993

enabling connectivity with most major airlines

• Twenty-five interline agreements are in place, with almost all legacy airlines

• Cape Air has completed migration to interline e-ticketing, the updated industry norm 

• Cape Air operates flights in Micronesia as

• Flights in the Caribbean have a code 

• Five Boston routes have a code, and in the Caribbean JetBlue and 

Cape Air interline 

• Flights in the Midwest operate with the code of 

Interline highlights
8

Participation in the global distribution system gives Mayaguez 

access to the world, and the world access to Mayaguez

Cape Air is sold through:
9

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!
Cape Air’s proposal includes a city ticket office in 

Mayaguez to enhance airline and airport awareness

• Increases the visibility of the airport and air 

service within the community

• Provides a welcoming place for people to learn 

about the air service from friendly Cape Air 

agents

• Enables the redemption of targeted 

promotions, providing wide latitude in 

marketing the air service

• Enhances the central business district with a 

vibrant new retail space

10

City ticket office highlights

A typical city ticket office
Cape Air has built its business over 20 years by providing 

reliable service for communities like Mayaguez

11

Planes and pilots based 

in Mayaguez

Full service Cape Air 

maintenance base in 

San Juan

Spare aircraft located in 

San Juan

Factors in reliability
12

The key to Cape Air’s success, however, 

is our friendly people

Daffodil “Daffy” Day at Cape Air reservations
Cape Air proposes a 5-year term to position Cape Air for 

more investment in marketing and community relations, 

as well as to enhance stability and consistency

• Locks in reliable air service

• Provides stability and the ability to plan for both 

the Mayaguez and Cape Air

• Enables Cape Air to invest more in the 

community

– Robust marketing campaign

– City ticket office

– Employee domicile

• Reduces the cost of service due to Cape Air’s 

ability to secure less expensive longer-term 

contracts

13

Key reasons for a 5-year term Cape Air’s Mayaguez crew
Cape Air proposes continued EAS at Mayaguez for a two-year 

term, but also proposes and prefers a five-year term

14

Daily Round Trips 4.0

Stage (naut. miles) 66

Seats per Dpt 9

Annual Sched. Dpts 2,920

Completion Rate 97%

Annual Actual Dpts 2,832

Load Factor 45%

Annual Passengers 11,746

PDEW 16

Avg. Net Fare $52.70

Passenger Rev. $600,469

Expenses

Drivers

Fuel $494,254

Maintenance $401,128

Pilots $205,897

Ownership $66,230

Rents $11,324

Staff $153,615

Landing Fees $112,719

Customer Service $130,211

Marketing $43,800

General & Admin./Other $118,743

Operating expense $1,737,922

Return of 5% $91,470

Economic Expense $1,829,391

Passenger Revenue $600,469

Profit ($1,228,923)

Annual Subsidy Required--2 year term $1,228,923

Per Departure $434

Annual rate with 5-year term discount $1,198,824

Per Departure $423
15

Cape Air would be honored to continue serving Mayaguez

 Four daily flights to San Juan International Airport

 Spare aircraft in the region helps ensure a reliable operation

 Codeshare with plus interline connections with most major airlines 

 A healthy, strong, independent airline that cares passionately about serving communities

Summary

Cape Air is a great choice for 

Mayaguez

Hyannis Air Service, Inc., dba Cape Air

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

(508) 862-9719

Please direct media inquires to Leslie Myrbeck, director of community relations, at 508-862-9764 
Appendix

Interline Examples on Online Travel Agencies
17

Cape Air is on Expedia.com

Screenshot from Expedia.com showing Cape Air 

LNS-PHX search for travel 22SEP09
18

Cape Air is on Travelocity.com

Screenshot from Travelocity.com showing Cape Air 

ATL-MAZ search for travel 22SEP09
19

Cape Air is on Orbitz.com

Screenshot from Orbitz.com showing Cape Air 

ART-DCA search for travel 22SEP09