### BEFOR E TH E DEPARTMEN T O F TRANSPORTATIO N

WASHINGTON , D.C
. 

# im\m \O F •/.'•ISPORWIO N r:;: T OPER/VftON S i-r rI 0 A 10

: 1 1

Essential Air

Servic e at 

### GLASGOW , MONTAN A GLENDIVE , MONTAN A HAVRE , MONTAN A ) OST-1997-260 5 LEWISTOWN , MONTAN A MILE S CITY , MONTAN A SIDNEY , MONTAN A WOL F POINT , MONTAN A Under 4 9 U.S.C
. §4173 1 e t

seq .
GULFSTREA M INTERNATIONA L AIRLINE S PROPOSA L T O PROVID E SUBSIDIZE D AI RSERIC E A T GLENDIVE
. GLASGOW
. HAVRE
. LEWISTOWN
. MILE S CITY
. SIDNE Y AND WOL F POINT , MONTAN A Correspondenc e wit

h regardto thi s documen t

shoul db e addresse dto : Micke y Bowma

n Vic e President

o f Corporate Development Gulfstrea mInternational Airline s 320 1 Griffin Road , 4 * Floo r Ft
. Lauderdale , F

L 3331 2 Telephone : 270-689-218 0 Fax:270-689-218 0 E-Mail : mbowman@gulfstreamair.co m Gulfstrea mInternationa l Airline s ("Gulfstream" ) cordiall y submit s it s proposal s to provid e subsidize dair servic e t o Glasgow , Glendive , Havre , Lewistown , Mile s City , Sidne y an dWol f Point , Montana , Gulfstrea mhereb y offer s on e "al l o r nothing " optio n fo

r service
. Gulfstrea mpropose s t o operat e flights, unde r it s independen t

Gulfstrea mInternational Airline s identit y to th e hu b airpor

t o f Billings , Montana
. A forme r EA S carrier

produce dsignificantl y highe r traffi c tha

n i s bein g carrie dtoday whe n al l o f thes e citie s wer e provide dacces s t o th e regional busines s center o f Billings
. Gulfstrea mha s maintaine dinterlin e ticketin g an dbaggag e agreement s wit h mos t legac y carrier s andwil l schedul e it s flight s to allo w connectin g opportunities
. Gulfstrea mcontend s tha

t reasonabl e local fare s wil l stimulate deman dan dth e variet y o f destination s availabl e fro

mBilling s wil l allo w thes e market s t o recaptur e traffi c tha

t ha s bee n los t

ove r th e years . Towar

dtha t endw e wil l establis h afar e structure predicate don a$15 0 roundtri p far e betwee n thes e citie s an dBillings
. Gulfstrea mflight s wil l b e availabl e fo r sal e throug h al l major

reservatio n portal s an dw e wil l maintai n ou r ow n web base dbookin g site a s wel l a s areservatio n cal l center
.I n complianc e wit

h Publi c La

w 100-223 , Gulfstrea

mpropose s to operat e thes e flight s usin g Beec h 1900D turboprop s tha

t ar e pressurize dan daccommodat e 1 9 passenger s to Billings
. Th e 1900D feature s stan du p headroo man dapressurize dcabi n that w e feel i s critica l in recoverin g los t passenger s wit

h ampl e carg o capacit y t o accommodate eve n bulk y militar y duffl e bags
. On e o f th e hallmark s o f

th e Gulfstrea

moperatio n i s ou r

ability t o provid e saf

e an dreliabl e transportation
. Towardthi s end , Gulfstrea mwoul destablis h aregional maintenanc e bas e in Billing s t o suppor t thes e flights
. Thi s mov e wil l ad droughl y 1 8 technical suppor t job s t o th e Montan aeconomy . Additionall y thi s proposal include s a

n additional aircraf

t tha t woul db e adedicate dspare . Wit h thi s spare locate di

n Billings , w e woul dhav e grea

t flexibilit y in respondin g t o any operational challenge s an dassure thes e communitie s receiv e th e leve l o f

operational performanc e the y deserve
. Servic e Optio n 1 (Al l Seve n Communitie s - Al l o r Nothing ) 24WeekI y frequencie s betwee n Glasgow , Montan aan dBillings , Montana ; 2 4 weekl y frequencie s betwee n Glendive , Montan aan dBillings , Montana ; 2 4 weekl y frequencie s betwee n Havre , Montan a an dBillings , Montana ; Lewistown , Montan aan dBillings , Montana ; 2 4 weekl y frequencie s betwee n Mile s Cit y an dBillings , Montana ; 3 4 weekl y frequencie s betwee n Sidney , Montan aan dBillings , Montan aan d2 4 weekl y frequencie s betwee n Wol f Point , Montan aan dBillings , Montan a Gulfstrea mpropose s t o operat e thes e flight s unde r i t ow n independen t

marketin g identity
. The timin g o f thes e flight s wil l b e optimize dfo r connection s t o an dfro

mbot h legac y an dlo w cos t

airlin e flight s a

t Billing s Gulfstrea

mpropose s to encourag e connectin g traffi c b y usin g asimplifie dlocal fe e structur e whereb y passenger s connectin g to o r fro mothe r airlin e flight s woul dpa

y onl y th e low , local far

e in additio n t o th e lo w fare s alread y afeatur e a t Billings
. The basi c servic e patter n woul dconsis t

o f tw o roundtrip s eac h weekday t o Billing s fromsi x o f th e citie s with Sidne y receivin g athir dweekday roundtrip
. A singl e roundtri p fro

meac h cit

y woul doperate o n Saturday s an dSunday s to Billings
.

Servic e Optio n 1 FRO M T O ST A ST A Gulfstrea mAirline s Sampl e Fligh t

Schedul e
DE P TIM E AR R TIM E FL T NU M EQUI P FRE Q STO P
BILLING S BILLING S GLENDIV E

GLENDIV E 103 0

173 0 120 0 190 0 257 4 257 8 BE l BE l X 7 X 6 GLENDIV E GLENDIV E BILLING S

BILLING S 061 5

122 0 074 5 135 0 257 9 257 5 BE l BE l X 7 X 6 FRO M ST A T O

ST A DE P AR RFL T EQUI P FRE Q STO P

TIM E TIM E NUM BILLING S BILLING S BILLING S GLASGO W

GLASGO W GLASGO W 110 0 120 5

110 0 124 0 193 0 211 0 257 0

256 9 256 8 BE l BE l BE l X6 7 0 6 1 X 6 1 GLASGO W GLASGO W GLASGO W BILLING S

BILLING S BILLING S 050 0 064 5

122 0 140 5 141 0 151 5 256 1

257 1 257 1 BE l BE l BE l X 7 1 7 1 X6 7 0FRO M ST A T O

ST A DE P AR RFL T EQUI P FRE Q STO P

TIM E TIM E NU M BILLING S BILLING S HAVR E

HAVR E 102 5

172 5 120 0 190 0 257 2 257 6 BE l BE l X 7 X 6 HAVR E HAVR E BILLING S

BILLING S 061 5

122 0 075 0 135 5 257 7 257 3 BE l BE l X 7 X 6 FRO M ST A T O

ST A DE P AR RFL T

TIM E TIM E NUM EQUI P FRE Q STO P
BILLING S BILLING S LEWISTOW N 102 5

LEWISTOW N 172 5 LEWISTOW N BILLING S LEWISTOW N BILLING S 102 5 172 5 071 0 131 5 110 5 180 5 075 0 135 5 257 2 257 6 257 7 257 3 BE l BE l BE l BE l X 7 X 6 X 7 X 6 0 0 0 0
FRO M ST A BILLING S BILLING S T O

ST A MILE S CIT Y MILE S CIT Y DE P

TI M 103 0 173 0 AR RFL T TIM E TIM E NU M EQUI P FRE Q STO P
111 5 181 5 257 4 257 8 BE l BE l X 7 X 6 MILE S CIT Y BILLING S 070 0 074 5 257 9 BE l X 7 0 MILE S CIT Y BILLING S 130 5 135 0 257 5 BE l X 6 0 FRO M ST A T O

ST A DE P AR RFL T EQUI P FRE Q STO P

TIM E TIM E NU M BILLING S BILLING S BILLING S WOL F POIN T 110 0

WOL F POIN T 110 0 WOL F POIN T 193 0 WOL F POIN T BILLING S WOL F POIN T BILLING S WOL F POIN T BILLING S 110 0 110 0 193 0 054 0 130 0 133 0 124 5 120 0 203 0 064 5 140 5 151 5 257 0 256 9 256 8 256 1 257 1 257 1 BE l BE l BE l BE l BE l BE l X6 7 6 X 6 X 7 7 X6 7 1 0 0 0 0 1 FRO M ST A T O

ST A DE P AR RFL T EQUI P FRE Q STO P

TIM E TIM E NUM BILLING S BILLING S BILLING S SIDNE Y SIDNE Y SIDNE Y SIDNE Y

SIDNE Y SIDNE Y BILLING S BILLING S BILLING S 072 0

142 0 162 0 084 5 154 5 174 5 083 0 153 0 173 0 100 0 170 0 190 0 256 4 256 2 256 6 256 3 256 5 256 7 BE l BE l BE l BE l BE l BE l X 7 X6 7 X 6 X 7 X6 7 X 6 0 0 0 0 0 0 (BIL = Billings ; GGW = Glasgow ; GDV = Glendive ; HVR = Havre ; LWT=Lewistown ; MLS=Mile s City ; OLF = Wol f

Point ; SDY = Sidney ) (Note : Thi s Schedul e i s fo r illustrativ e purpose s an dma y no t reflec t th e final publishe dproduct )GULFSTREA M INTERNATIONA L AIRLINE S Essentia l Ai r

Servic e Proposa l T o Provid e Servic e at : Glendive , Glasgow , Havre , Lewistown , Mile s City , Sidne y an dWoi f Point , Montan a

Hu b Serve d Numbe r o f Roundtrip s per

Servic e Da

y

Opiatin g Statistic s Assume dCompletio n % Annua l Adjuste dBloc

k Hour s Annua l Adjuste dDeparture s Annua l Adjuste dASM s Annua l RPM s Projecte dLoa

dFacto r
Revenu e Proiection s Enplane dPassenger s Mileag e (Averag e a s Operated ) Averag e Far

e Passenge r Revenu e Expens e Projection s Fligh t Operation s Ownershi p Maintenanc e Reservations , Station s & Administratio n Fuel Marketin e Tota l Annua l Expense s Projecte dProfi

t / (Loss )

Profit Element
Annua l Subsid y Require d
Subsid y pe r Departur e Subsid y pe r Passenge r Optio n 1 Lewistow n Billing s 2

; Non-Sto p

, (I2rt/weck ) ! 97 % 809.2 6 1,213.8 9 2,214,13 4 336,53 8 ; 15.2 %

: 2,06 6 9 6 $ 69.3 8 $

. 143,31 5

, $107,45 9 S106,14 1 $330,48 9 ; $509,11 5

. ; $339,88 9 ) S6,00 0

— 1 1 $1,399,09 3

1 ($1,255,778 )



## .. 1 ,; / $69,95 5

' " $1,325,73 3

-. i 

### S I f $1,092.1 4 ; : $641.7 5 Optio n 1 Havr e Billing s 2 On e Sto p Vi aLW T (12n/wcek ) 97 % 809.2 6 1,213.8 9 2,398,64 5 149,73 9 6.2 %

1,44 0 10 4 $ 69.3 8 $ 99,88 6

$107,45 9 $106,14 1 $330,48 9 $312,13 2 $339,88 9 $6,00 0 $1,202,11 0
($1,102,224 ) $60,10 5 $1,162,32 9
$957.5 3 $807.2 9 •

. 1 ¥• !

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. 

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£ • • Optio n 1 Mile s Cit y Billing s 2

Non-Sto p (12rt/week ) 97 % 1,011.5 7 1,213.8 9 3,113,62 5 321,13 8 10.3 %

1,75 3 13 5 $ 69.3 8 $ 121,60 1

$134,32 3 $132,67 7 $440,65 3 $521,88 8 $424,86 1 $6,00 0 $1,660,40 2
($1,538,801 ) $83,02 0 $1,621,82 1 $1,336,0 5 $925.2 7 Optio n 1

Glendiv e Billing s 2 On e Sto p Vi aML S (12rt/wcek) 97 % 809.2 6 1,213.8 9 1,637,53 6 44,44 6 2.7 %

62 6 7 1 $ 69.3 8 $ 43,42 9

$107,45 9 $106,14 1 $314,75 2 $303,68 3 $339,88 9 $6,00 0 $1,177,92 4
($1,134,495 ) $58,89 6 $1,1933 1
$983.1 1 $1,906.3 8 Optio n 1 

## « i
» Sidne y Billing s 1 3 I ; . v

i Non-Sto p ; t 1 (17rt/week ) : % I 97 % ; ^ J 2,149.6

0 i 1.719.6 8 /

- 8,005,09 2 J- c ; 1,349,65 6 ; t i 16.9%

••.::• ; ^••; ^ 5,50 9 "•• i 24 5

;•:;!••' ; $ ' #69.3 8 §. , $ ;:: ; 382,17 3 

# A Xg i $285,43 7 { i $281,93 8

• • #$936,38 7
v f 5 $743,90 9 :f k $902,83 0 $6,00 0

: ; $3,156,50 0

: • ($2,774,327 )

. • $157,82 5
•S' i $2,932,15 2
J ; $1,705.0 6 $532.2 7 Optio n 1

Glaseo w Billing s 2 1 Non-sto p 1 On e Sto p Vi aOL F (12n/wcek ) 97 % 800.8 3 1,112.7 3 2,381,34 7 376,99 8 15.8 %

2,31 6 11 3 $ 69.3 8 $ 160,68 6

$106,33 9 $105,03 6 $312,12 9 $397,70 5 $336,34 8 $6,00 0 $1,263,55 7
($1,102,871 ) $63,17 8 $1,166,04 9 $1,047.9 2 $503.4 3 Optio n 1

Wol f Poin t Billing s 2 1 Non-sto p 1 On e Sto p Vi aGG W (12rt/wcck) 97 % 1,020.0 0 1,315.0 5 3,403,84 6 560,16 6 16.5 %

1,81 5 13 6 $ 69.3 8 $ 125,94 3

$135,44 3 $133,78 2 $403,93 2 5443,22 5 $428,40 2 56,00 0 $1,550,78 3
($1,424,839 ) $77,53 9 $1,50237 8 $1,142.4 5 $827.5 7 Optio n 1

Syste mTota l Billing s

97 % 7,409.7 8 9,003.0 1 23,154,22 5 3,138,68 1 13.6 %

15,52 5 13 5 $ 69.3 8 $ 1,077,03 3 $ 983,91 7 $ 971,85 6 s 3,068,83 1 $ 3,231,65 7 $ 3.112,10 8 S 42,00 0 $ 11,410,36 9 $ (10.333.336 ) $ 570.51 8 $ 10,903,85 4 $1,211.1 3 $702.3 5I n conclusion , Gulfstrea

mbelieve s that

thi s proposal wil l provid e thes e Montan acommunitie s wit h superio r ai r servic e options
. We feel th e passenger s wil l benefi t fro mth e fact tha t Billing s i s th e financial an dbusines s center

o f Montan aan dtha

t Gulfstrea mwil l connec t

i t wit h eac h o f thes e seve n citie s on a dail y basis
. W

e wil l provid e thi s servic e on stan dup , pressurize dairliner s an dth e infrastructure w e wil l establis h in suppor

t o f thi s operatio n wil l ad djob s to th e Montan aeconomy . Additionall y th e integrit y o f servic e tha

t ha s bee n ahallmar

k o f th e Gulfstreamoperatio n wil l return bot h dependabilit

y an dreliabilit

y t o th e travelin g publi c an dresul t in increase dridershi p andpassenge r satisfaction
. Respectfull y Submitted : December 9 , 201 0

Micke y Bowma

n Vic e President

o f Corporate Developmen t Gulfstrea mInternational Airline s