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

WASHINGTON , D.C
. Essential Air

Servic e a t 

### MACON , GEORGI A Unde r 4 9 U.S.C
. §4173 1 et

seq . OST-2007-2867 1

GULFSTREA M INTERNATIONA L AIRLINE S PROPOSA L T O PROVID E SUBSIDIZE D AI R SERIC E A T

MACON
. GEORGI A Correspondenc e wit

h regard t o thi s document

shoul d b e addresse d to : Micke y Bowma

n Vic e Presiden t

o f Corporat e Developmen t GulfstreamInternational 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 proposa l t o provid e subsidize d ai r servic e to Macon , Georgia
. Gulfstrea mhereb y offer s on e optio n fo r service
. Gulfstrea mpropose s t o operat e flights , under it s existin g codeshar e agreemen t wit h Continental Airlines , t o th e hub airport s o f

bot h Orland o an d Tampa , Florida
. Gulfstrea mintend s t o focu s o n thes e tw o leisur e destination s to retai n traffi c tha t ha s historicall y leake d to Atlanta
. Orland o i s 32 5 ai r mile s fro mMaco n whil e Tamp ai s 33 2 air

miles , wel l withi n th e rang e o f our Beec h 1900D equipment
. Ke y in thi s offe r i s th e assumptio n o f

afar e o f onl y $45.33 , th e bas e o f

$49.00
. Low fare s driv e traffic , particularl y to leisure destination s suc h a s Orland o an d Tampa
. Carrier s suc h a s Allegian t hav e prove n thi s fact

repeatedly
. W e believ e thes e lo w local fare s wil l driv e bot h Origin/Destinatio n passenger s and flow traffi c ove r thes e hubs
. Wit h th e inclusio n o f

amajor airlin e codeshare , th e Maco n marke t wil l hav e achanc e to retur n t o it s histori c enplanemen t

levels , give n th e abilit

y o f passenger s t o connec t

bot h onlin e an d to other

legac y operators . Our

servic e wil l featur

e asingl e roundtri p eac h servic e da y t o Orland o an d asingl e roundtri p eac h servic e da

y to Tampa
. Tamp aservic e ha s th e adde d benefi t o f linkin g Robbin s Ai

r Forc e Bas e to th e MacDil l Ai

r Forc e Bas e facilit

y an d it s 6" ' Ai

r Mobilit y Wing
. Th e MS A populatio n o f Maco n i s i

n exces s o f 220,00 0 residents
. We firmly believ e th e far e level s and servic e pattern s w e ar e proposin g wil l capture los t traffic
. A stud y o f

histori c Maco n traffi c reveal s th e abilit y o f th e communit

y t o enplan e fa

r mor e passenger s tha

n w e are forecasting
. Accordin g t o DO T T-lOO statistics , fo r ful l yea r 2006 , Maco n enplane d 12,73 0 passenger s whil e deplanin g ove r 14,00 0 wit

h amajo r airlin e codeshare
. I

n 2005 , thos e number s were 16,30 7 enplane d passenger s wit h 17,41 7 deplaned
. Obviousl y ther e i s fa r greate r potential fo

r ridershi p tha t i s currentl y bein g captured
.I n complianc e wit

h Publi c La

w 100-223 , Gulfstrea

mpropose s t o operat e thes e flights usin g Beec h 1900 D turboprop s tha

t are pressurize d an d accommodate 1 9 passenger s t o the , FA A defined , hub s a t Orlando , F

L and Tampa , FL
. Th e 1900D feature s stan d u p headroo man d apressurize d cabi n tha t w e fee l i s critical i

n recoverin g los t

passengers .

Servic e Optio n 1 24Weekl y frequencie s betwee n Macon , Georgi aan d Orlando , Florida/Tampa , Florid a Gulfstrea mpropose s to operat e thes e flights under our Continental Connectio n codeshar e relationshi p wit h Continental Airlines
. Th e timin g o f thes e flights woul d b e optimize d fo r connection s to an d fi-om Continental flights a

t eac h airpor

t a s wel l a s optimiz e loca

l traffic
. Gulfstreampropose s to encourag e connectin g traffi c b y usin g asimplifie d loca l fe e structure whereb y passenger s connectin g to o r fro mother airlin e flights woul d pay onl y th e low , loca l far e i n additio n to th e lo w fare s alread y afeatur e a t bot h Orland o and Tampa
. Th e basi c servic e patter n woul d consis t

o f On e roundtri p eac h weekda y t o Orland o and On e roundtri p eac h weekda y t o Tampa
. A singl e roundtri p o n Saturda y woul d operat e t o Orland o and asingl e roundtri p on Sunda y woul d operat e to Tampa
.

Gulfstrea mAirline s Sampl e Fligh t

Schedul e Servic e Optio n 1 FRO M T O DE P ST A ST A TIM E AR R TIM E FL T NU M EQUI P FREQUENC Y STO P
MC N MC O 900a m1040am931 0 BE l Monda y thr u Saturda y 0 MC N TP A 130p m310p m931 1 BE l Sunda y thr u Frida y 0 FRO M T O DE P AR R FL T EQUI P FREQUENC Y STO P STA ST A TIM E TIM E NUM MC O MC N 1120am100p m931 0 BE l Monda y thr u Frida y 0 TP A MC N 400p m540p m931 1 BE l Sunda y thr u Frida y 0 (Note : Thi s Schedul e i s fo r illustrativ e purpose s an d ma y no t reflec t th e final publishe d product )GULFSTREA M INTERNATIONA L AIRLINE S Essentia l Ai r

Servic e Proposa l Macon , G A 1 Roundtrip s t o Orlando , FL , 1 Roundtrip s t o Tampa , F L

Hub Serve d Numbe r o f Roundtrip s per

Servic e Da

y Macon
. GA

Orlando/Tamp a
Operatin g Statistic s Assume d Completio n % Annual Adjuste d Bloc k

Hour s Annua l Adjuste d Departure s Annual Adjuste d ASM s Annua l RPM s Projecte d Loa

d Facto r 98 % 2,044.4 1 1,226 7,573,04 1 4,468,75 0 59.0 % Revenu e Projection s Enplane d Passenger s Mileag e Averag e Far

e (Averag e a s

Operated ) 13,75 0 32 9 $45.3 3 Passenge r

Revenu e 623,21 9 Expens e Proiection s Flight Operation s Ownershi p Maintenanc e Reservations , Station s & Administratio n Fue l Marketin g $236,57 2 $306,36 0 $816,16 0 $902,96 9 $905,26 7 $30,00 0 Tota l Annua l Expense s $3,197,32 7 Projecte d Profit

/ (Loss ) Profit Element @ 5 % ($2,574,109 ) $159,86 6 Annua l Subsid y Require d $2,733,97 5 Subsidy per

Departure Subsidy per

Passenger $2,229.2 6 $198.8 3 Note , fo r purpose s o f

thi s bid , th e tw o route s ar e show n collectivel y giv e th e fact that th e stag e length s are virtuall y identical an d our station s cost s ver

y similar
. Additionall y w e feel th e traffi c wil l b e roughl y equivalen t whethe r to and fro mOrland o o r

Tampa
. I n conclusion , Gulfstrea

mbelieve s tha

t thi s proposal wil l provid e th e communit y o f Macon , Georgi awit

h superio r ai r service
. W e feel th e communit y wil l benefi t

fro mth e strengt

h o f th e Continenta l codeshare , th e potential t o retai n leisure traffi c tha t ha s historicall y bee n los t

to Atlanta , th e abilit

y to seamlessl y connec t to an d fro mother legac y carrier s vi abot

h th e Orland o and Tamp ahubs , an d finall y th e integrit y o f servic e tha

t ha s bee n ahallmar

k o f th e Gulfstrea

moperation
.Respectfull y Submitted : Jun e 21 , 201 0

Micke y Bowma

n Vic e Presiden t

o f Corporat e Development Gulfstrea mInternational Airline s