BEFOR E TH E •'^.'flilS ! DEPARTMEN T O F TRANSPORTATIO N ;':-^^'^Vppn/IVlM O

WASHINGTON , D.C

. „ i .Jt [ „ ,,\,iUU o Essential ai r

servic e a t STAUNTON , VIRGINI A " H :h: [ ? Q A 1| : 2 8 Docke t DOT-OST-2002-1137 8

PROPOSA L O F COLGA N AIR , INC

. T O PROVID E SUBSIDIZE D ESSENTIA L AI RSERVIC E FO RTH E COMMUNIT Y O F STAUNTON , VIRGINI A

Communication s wit

h respec t to thi s documen t

shoul db e directe dto Dou g Shocke y Chie f Operatin g Office r Pinnacl e Airline s Cor p 176 9 Parago n Driv e Suit e 100 Mempliis , T N 3813 2 (901 ) 348-410 0BEFOR E TH E DEPARTMEN T O F TRANSPORTATIO N

WASHINGTON , D.C

. Essential ai r

servic e a t STAUNTON , VIRGINI A Docke t DOT-OST-2002-1137 8
PROPOSA L O F COLGA N AIR , INC

. T O PROVID E SUBSIDIZE D ESSENTIA L AI RSERVIC E FO RTH E COMMUNIT Y O F STAUNTON , VIRGINI A B y orde r 2010-12-09 , th e Departmen t requeste dproposal s fro

mcarrier s intereste din providin g Essential Ai r

Servic e fo

r afutur e two-yea r period

. Colgan Air , Inc. , awholl y owne dsubsidiar y o f Pinnacl e Airline s Corp. , (hereinafter "Colgan" ) respectfull y submit s aproposal to provid e subsidize dservic e betwee n th e communit y o f Staunton , Virgini aan dWashington-Dulle s International Airport

. Thi s proposal woul drequir e a

n annual subsidy o f

$2,180,461

. Th e propose dservic e optio n fo r th e Shenandoa

h Valle y communit

y i s a s follows : Staunton , VA 1 8 round-trip s pe r week operate da s non-sto p servic e t o Washington-Dulles

. Th e Staunton , VA servic e pattern enable s th e operatio n o f Essential Ai r

Servic e to Beckley , WV , fo

r whic h Colgan currentl y provide s servic e throug h Jul y 31 , 201 2 (unde r orde r 2010-6-25)

. B y operatin g th e rout e i n conjunctio n wit h anothe r Essential Ai r

Servic e city , Colga

n i s abl e to provid e Staunton , V A wit h a n additional roundtri p abov e th e standardtwic e dail y pattern typicall y provide dfo r b y Essential Ai r

Servic e awards

. Th e servic e wil l utiliz e aSaa

b 340 , athirty-fou r

passenger , cabi n clas s aircraf t operate db y a cre w o f tw o pilot s an dafligh

t attendant

. Colgan i s aregional airlin e operatin g Saa b 34 0 aircraft

. Colgan operate s regional schedule dservic e a s Unite dExpres s unde r agreemen t

wit h Unite dAirlines

. Th e service s offere dby Colgan allo w seamles s connectio n to United' s domesti c an dinternational rout e syste mvi ath e Unite dAirline s hub a t Washington-Dulle s International Airport

. Colgan Ai r ha s alon g operatin g histor y wit h Unite da

t Washington-Dulle s an dha s consitent y demonstrate dacommitment t o outstandin g passenge r

servic e t o th e communitie s w e serve . Th e schedul e proposal attache dpresent s optimize dtimin g to maximiz e connectin g option s wit h th e Unite dAirline s syste mou t o f Washington-Dulles

. In addition , th e option s provid e attractiv e schedulin g option s fo r bot h busines s an dleisur e traveler s utilizin g Unite dAirlines ' membershi p in th e Sta r Allianc e Networ

k whic h ha s aconsiderabl e domesti c an dinternational presenc e a t Washington-Dulle s (United' s Washington-Dulle s rout e networ

k attached)

. Respectfull y submitted , Dou g Shocke y Chie f Operatin g Office

r Pinnacl e Airline s Cor

pAnnua l Statistic s
E A S Cycle s (i s roun dtrip s / 3 6 segment s per

week ) Pa x 1,87 2 20,93 8 Bloc k Flight Blk/Fl t Rati o 1,66 9 94 0 56 % Avai l Seat s RPM s ASMS Loa dFacto r 61,73 9 1,926,29 6 5,166,72 0 37 %
Annua l Profi t

/ (Loss ) Summar y Passenge r Revenu e 1,513,01 6 Tota l Revenu e 1,513,01 6
Fue l M X Operation s Flight Operation s Groun dServic e Landin g Fee s Ticketin g an dPassenge r

Relate d Local Marketin g Campaig n Aviatio n Insuranc e Tota l Cas h Cost s Ownershi p Tota l Overhea d Tota l Operatin g Ex p @ 97 % Completio n Operatin g Income/(Loss ) 750,44 6 671,30 1 653,81 5 513,64 4 101,40 5 481,32 6 25,00 0 5,65 4 3,202,59 0 225,00 0 90,00 8 3,517,59 8 (2,004,582 )

Margi n a t 5 % Tota l Economi c Cos t

/ Subsid y 175,88 0 2,180,46 1 EA S Cycle s a

t 97 % Subsid y Pe r

Departur e a t

97 % 1,81 6 1,200.6 9Staunton , VA t o Washington-Dulle s Washington-Dulle s t o Staunton , VA Weekday s De p - Ar r

- Stop s 6:55a m 2:38p m 7:42p m
10:30a m
10:30a m 2:38p m 7:44a

m 3:28p m 8:32p m Saturda y 11:19a m Sunda y 11:19a m 3:28p m 0

0 0
0

0 0 Weekday s

De p - Ar r

- Stop s 12:38p m1:35p

m 5:55p m6:55p m 10:00p m10:53p m 6:00p m 12:46p m 6:00p m Saturda y

7:00p m Sunda y 1:43p m 7:00p m 0

0 0

0 0 CERTIFICAT E O F SERVIC E I hereb y certif

y tha t I hav e cause dacop y o f

th e forgoin g Proposal t o Provid e Subsidize d Essentia l Ai r

Servic e t o b e serve dthi s 18t h da y o f January , 2011 , upo n eac h o f th e followin g persons : Denni s DeVan y Chief , EA S & Domesti c Analysi s Offic e o f Aviatio n Analysi s Unite dState s Departmen t

o f Transportatio n 1200 Ne w Jerse y Av e S.E

. Roo mW86-30 8 Washington , D.C

. 2059 0 Sea n T
. Connaughto n Secretar y o f Transportation , Commonwealt h o f Virgini a P.O

. Bo x 147 5 Richmond , V

A 2321 8 Lac y B
. King , Jr
. Mayo r - Staunton , V

A P.O

. Box 5 8 Staunton , V A 24402-005 8 Gre g Campbel l Airpor t Manager Shenandoa

h Valle y Regional Airpor

t P.O

. Bo x 125 Weyer s Cave , V

A 2448 6