BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

im\m\ OF 

•/.'•ISPORWION 

r:;:T OPER/VftONS 

i-rr I 0 A 10: 11 

Essential Air Service at 

GLASGOW, MONTANA 

GLENDIVE, MONTANA 

HAVRE, MONTANA ) OST-1997-2605 

LEWISTOWN, MONTANA 

MILES CITY, MONTANA 

SIDNEY, MONTANA 

WOLF POINT, MONTANA 

Under 49 U.S.C. §41731 et seq. 

GULFSTREAM INTERNATIONAL AIRLINES PROPOSAL 

TO PROVIDE SUBSIDIZED AIR SERICE AT 

GLENDIVE. GLASGOW. HAVRE. LEWISTOWN. 

MILES CITY. SIDNEY AND WOLF POINT, MONTANA 

Correspondence with regard to this document should be addressed to: 

Mickey Bowman 

Vice President of Corporate Development 

Gulfstream International Airlines 

3201 Griffin Road, 4* Floor 

Ft. Lauderdale, FL 33312 

Telephone: 270-689-2180 

Fax:270-689-2180 

E-Mail: mbowman@gulfstreamair.com 

Gulfstream International Airlines ("Gulfstream") cordially submits its proposals to provide subsidized air 

service to Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney and Wolf Point, Montana, 

Gulfstream hereby offers one "all or nothing" option for service. 

Gulfstream proposes to operate flights, under its independent Gulfstream International Airlines identity to 

the hub airport of Billings, Montana. A former EAS carrier produced significantly higher traffic than is 

being carried today when all of these cities were provided access to the regional business center of Billings. 

Gulfstream has maintained interline ticketing and baggage agreements with most legacy carriers and will 

schedule its flights to allow connecting opportunities. Gulfstream contends that reasonable local fares will 

stimulate demand and the variety of destinations available from Billings will allow these markets to 

recapture traffic that has been lost over the years. Toward that end we will establish a fare structure 

predicated on a $150 roundtrip fare between these cities and Billings. Gulfstream flights will be available 

for sale through all major reservation portals and we will maintain our own web based booking site as well 

as a reservation call center. 
In compliance with Public Law 100-223, Gulfstream proposes to operate these flights using Beech 1900D 

turboprops that are pressurized and accommodate 19 passengers to Billings. The 1900D features stand up 

headroom and a pressurized cabin that we feel is critical in recovering lost passengers with ample cargo 

capacity to accommodate even bulky military duffle bags. 

One of the hallmarks of the Gulfstream operation is our ability to provide safe and reliable transportation. 

Toward this end, Gulfstream would establish a regional maintenance base in Billings to support these 

flights. This move will add roughly 18 technical support jobs to the Montana economy. Additionally this 

proposal includes an additional aircraft that would be a dedicated spare. With this spare located in Billings, 

we would have great flexibility in responding to any operational challenges and assure these communities 

receive the level of operational performance they deserve. 

Service Option 1 (All Seven Communities - All or Nothing) 

24WeekIy frequencies between Glasgow, Montana and Billings, Montana; 24 weekly frequencies 

between Glendive, Montana and Billings, Montana; 24 weekly frequencies between Havre, Montana 

and Billings, Montana; Lewistown, Montana and Billings, Montana; 24 weekly frequencies between 

Miles City and Billings, Montana; 34 weekly frequencies between Sidney, Montana and Billings, 

Montana and 24 weekly frequencies between Wolf Point, Montana and Billings, Montana 

Gulfstream proposes to operate these flights under it own independent marketing identity. The timing of 

these flights will be optimized for connections to and from both legacy and low cost airline flights at 

Billings Gulfstream proposes to encourage connecting traffic by using a simplified local fee structure 

whereby passengers connecting to or from other airline flights would pay only the low, local fare in 

addition to the low fares already a feature at Billings. The basic service pattern would consist of two 

roundtrips each weekday to Billings from six of the cities with Sidney receiving a third weekday roundtrip. 

A single roundtrip from each city would operate on Saturdays and Sundays to Billings. 

Service Option 1 

FROM TO 

STA STA 

Gulfstream Airlines 

Sample Flight Schedule 

DEP 

TIME 

ARR 

TIME 

FLT 

NUM 

EQUIP FREQ STOP 

BILLINGS 

BILLINGS 

GLENDIVE 

GLENDIVE 

1030 

1730 

1200 

1900 

2574 

2578 

BEl 

BEl 

X7 

X6 

GLENDIVE 

GLENDIVE 

BILLINGS 

BILLINGS 

0615 

1220 

0745 

1350 

2579 

2575 

BEl 

BEl 

X7 

X6 

FROM 

STA 

TO 

STA 

DEP ARR FLT EQUIP FREQ STOP 

TIME TIME NUM 

BILLINGS 

BILLINGS 

BILLINGS 

GLASGOW 

GLASGOW 

GLASGOW 

1100 1205 

1100 1240 

1930 2110 

2570 

2569 

2568 

BEl 

BEl 

BEl 

X67 0 

6 1 

X6 1 

GLASGOW 

GLASGOW 

GLASGOW 

BILLINGS 

BILLINGS 

BILLINGS 

0500 0645 

1220 1405 

1410 1515 

2561 

2571 

2571 

BEl 

BEl 

BEl 

X7 1 

7 1 

X67 0 
FROM 

STA 

TO 

STA 

DEP ARR FLT EQUIP FREQ STOP 

TIME TIME NUM 

BILLINGS 

BILLINGS 

HAVRE 

HAVRE 

1025 

1725 

1200 

1900 

2572 

2576 

BEl 

BEl 

X7 

X6 

HAVRE 

HAVRE 

BILLINGS 

BILLINGS 

0615 

1220 

0750 

1355 

2577 

2573 

BEl 

BEl 

X7 

X6 

FROM 

STA 

TO 

STA 

DEP ARR FLT 

TIME TIME NUM 

EQUIP FREQ STOP 

BILLINGS 

BILLINGS 

LEWISTOWN 1025 

LEWISTOWN 1725 

LEWISTOWN BILLINGS 

LEWISTOWN BILLINGS 

1025 

1725 

0710 

1315 

1105 

1805 

0750 

1355 

2572 

2576 

2577 

2573 

BEl 

BEl 

BEl 

BEl 

X7 

X6 

X7 

X6 

0 

0 

0 

0 

FROM 

STA 

BILLINGS 

BILLINGS 

TO 

STA 

MILES CITY 

MILES CITY 

DEP 

TIM 

1030 

1730 

ARR FLT 

TIME TIME NUM 

EQUIP FREQ STOP 

1115 

1815 

2574 

2578 

BEl 

BEl 

X7 

X6 

MILES CITY BILLINGS 0700 0745 2579 BEl X7 0 

MILES CITY BILLINGS 1305 1350 2575 BEl X6 0 

FROM 

STA 

TO 

STA 

DEP ARR FLT EQUIP FREQ STOP 

TIME TIME NUM 

BILLINGS 

BILLINGS 

BILLINGS 

WOLF POINT 1100 

WOLF POINT 1100 

WOLF POINT 1930 

WOLF POINT BILLINGS 

WOLF POINT BILLINGS 

WOLF POINT BILLINGS 

1100 

1100 

1930 

0540 

1300 

1330 

1245 

1200 

2030 

0645 

1405 

1515 

2570 

2569 

2568 

2561 

2571 

2571 

BEl 

BEl 

BEl 

BEl 

BEl 

BEl 

X67 

6 

X6 

X7 

7 

X67 

1 

0 

0 

0 

0 

1 

FROM 

STA 

TO 

STA 

DEP ARR FLT EQUIP FREQ STOP 

TIME TIME NUM 

BILLINGS 

BILLINGS 

BILLINGS 

SIDNEY 

SIDNEY 

SIDNEY 

SIDNEY 

SIDNEY 

SIDNEY 

BILLINGS 

BILLINGS 

BILLINGS 

0720 

1420 

1620 

0845 

1545 

1745 

0830 

1530 

1730 

1000 

1700 

1900 

2564 

2562 

2566 

2563 

2565 

2567 

BEl 

BEl 

BEl 

BEl 

BEl 

BEl 

X7 

X67 

X6 

X7 

X67 

X6 

0 

0 

0 

0 

0 

0 

(BIL= Billings; GGW= Glasgow; GDV= Glendive; HVR= Havre; LWT=Lewistown; MLS=Miles 

City; OLF= Wolf Point; SDY= Sidney) 

(Note: This Schedule is for illustrative purposes and may not reflect the final published product) 
GULFSTREAM INTERNATIONAL AIRLINES 

Essential Air Service Proposal To Provide Service at: 

Glendive, Glasgow, Havre, Lewistown, Miles City, Sidney and Woif Point, Montana 

Hub Served 

Number of Roundtrips per Service Day 

Opiating Statistics 

Assumed Completion % 

Annual Adjusted Block Hours 

Annual Adjusted Departures 

Annual Adjusted ASMs 

Annual RPMs 

Projected Load Factor 

Revenue Proiections 

Enplaned Passengers 

Mileage (Average as Operated) 

Average Fare 

Passenger Revenue 

Expense Projections 

Flight Operations 

Ownership 

Maintenance 

Reservations, Stations & Administration 

Fuel 

Marketine 

Total Annual Expenses 

Projected Profit / (Loss) 

Profit Element 

Annual Subsidy Required 

Subsidy per Departure 

Subsidy per Passenger 

Option 1 

Lewistown 

Billings 

2 

; Non-Stop 

, (I2rt/weck) 

! 97% 

809.26 

1,213.89 

2,214,134 

336,538 

; 15.2% 

: 2,066 

96 

$ 

69.38 

$ 

. 143,315 

, 

$107,459 

S106,141 

$330,489 

; $509,115 

.; $339,889 

) S6,000 

— 1 

1 $1,399,093 

1 ($1,255,778) 

..1 

,;/ $69,955 

'" $1,325,733 

-.i 

SI 

f $1,092.14 

; : $641.75 

Option 1 

Havre 

Billings 

2 

One Stop 

Via LWT 

(12n/wcek) 

97% 

809.26 

1,213.89 

2,398,645 

149,739 

6.2% 

1,440 

104 

$ 

69.38 

$ 

99,886 

$107,459 

$106,141 

$330,489 

$312,132 

$339,889 

$6,000 

$1,202,110 

($1,102,224) 

$60,105 

$1,162,329 

$957.53 

$807.29 

•. 1 

¥•! 

' ;•"•:: . 

1::: 

'•4 

. '/-^ 

•0i 

• n 

> 'f 

•• •}'.} ^ 

. \L 

:J 

' 1 

• .1 

•? 

i 

•1 

i 

'%:. 

£ • • 

Option 1 

Miles City 

Billings 

2 

Non-Stop 

(12rt/week) 

97% 

1,011.57 

1,213.89 

3,113,625 

321,138 

10.3% 

1,753 

135 

$ 

69.38 

$ 

121,601 

$134,323 

$132,677 

$440,653 

$521,888 

$424,861 

$6,000 

$1,660,402 

($1,538,801) 

$83,020 

$1,621,821 

$1,336,05 

$925.27 

Option 1 

Glendive 

Billings 

2 

One Stop 

Via MLS 

(12rt/wcek) 

97% 

809.26 

1,213.89 

1,637,536 

44,446 

2.7% 

626 

71 

$ 

69.38 

$ 

43,429 

$107,459 

$106,141 

$314,752 

$303,683 

$339,889 

$6,000 

$1,177,924 

($1,134,495) 

$58,896 

$1,19331 

$983.11 

$1,906.38 

Option 1 

« i 

» Sidney 

Billings 

1 3 

I; . vi 

Non-Stop ; 

t 1 (17rt/week) : % 

I 97% 

;^ J 2,149.60 

i 1.719.68 

/ - 8,005,092 

J-c ; 1,349,656 

;t i 16.9% 

••.::• ; 

^••;^ 5,509 

"••i 245 

;•:;!••' ; $ 

'# 69.38 

§., $ 

;::; 382,173 

A 

Xgi $285,437 

{ i $281,938 

• • # $936,387 

vf 5 $743,909 

:fk $902,830 

$6,000 

: ; $3,156,500 

: • ($2,774,327) 

. • $157,825 

•S'i $2,932,152 

J ; $1,705.06 

$532.27 

Option 1 

Glaseow 

Billings 

2 

1 Non-stop 

1 One Stop 

Via OLF 

(12n/wcek) 

97% 

800.83 

1,112.73 

2,381,347 

376,998 

15.8% 

2,316 

113 

$ 

69.38 

$ 

160,686 

$106,339 

$105,036 

$312,129 

$397,705 

$336,348 

$6,000 

$1,263,557 

($1,102,871) 

$63,178 

$1,166,049 

$1,047.92 

$503.43 

Option 1 

Wolf Point 

Billings 

2 

1 Non-stop 

1 One Stop 

Via GGW 

(12rt/wcck) 

97% 

1,020.00 

1,315.05 

3,403,846 

560,166 

16.5% 

1,815 

136 

$ 

69.38 

$ 

125,943 

$135,443 

$133,782 

$403,932 

5443,225 

$428,402 

56,000 

$1,550,783 

($1,424,839) 

$77,539 

$1,502378 

$1,142.45 

$827.57 

Option 1 

System Total 

Billings 

97% 

7,409.78 

9,003.01 

23,154,225 

3,138,681 

13.6% 

15,525 

135 

$ 

69.38 

$ 

1,077,033 

$ 

983,917 

$ 

971,856 

s 

3,068,831 

$ 

3,231,657 

$ 

3.112,108 

S 

42,000 

$ 

11,410,369 

$ 

(10.333.336) 

$ 

570.518 

$ 10,903,854 

$1,211.13 

$702.35 
In conclusion, Gulfstream believes that this proposal will provide these Montana communities with 

superior air service options. We feel the passengers will benefit from the fact that Billings is the financial 

and business center of Montana and that Gulfstream will connect it with each of these seven cities on a 

daily basis. We will provide this service on stand up, pressurized airliners and the infrastructure we will 

establish in support of this operation will add jobs to the Montana economy. Additionally the integrity of 

service that has been a hallmark of the Gulfstream operation will return both dependability and reliability to 

the traveling public and result in increased ridership and passenger satisfaction. 

Respectfully Submitted: December 9, 2010 

Mickey Bowman 

Vice President of Corporate Development 

Gulfstream International Airlines