BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Essential Air Service at 

MACON, GEORGIA 

Under 49 U.S.C. §41731 et seq. 

OST-2007-28671 

GULFSTREAM INTERNATIONAL AIRLINES PROPOSAL 

TO PROVIDE SUBSIDIZED AIR SERICE AT 

MACON. GEORGIA 

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 proposal to provide subsidized air 

service to Macon, Georgia. Gulfstream hereby offers one option for service. 

Gulfstream proposes to operate flights, under its existing codeshare agreement with Continental Airlines, to 

the hub airports of both Orlando and Tampa, Florida. Gulfstream intends to focus on these two leisure 

destinations to retain traffic that has historically leaked to Atlanta. Orlando is 325 air miles from Macon 

while Tampa is 332 air miles, well within the range of our Beech 1900D equipment. Key in this offer is the 

assumption of a fare of only $45.33, the base of $49.00. Low fares drive traffic, particularly to leisure 

destinations such as Orlando and Tampa. Carriers such as Allegiant have proven this fact repeatedly. We 

believe these low local fares will drive both Origin/Destination passengers and flow traffic over these hubs. 

With the inclusion of a major airline codeshare, the Macon market will have a chance to return to its 

historic enplanement levels, given the ability of passengers to connect both online and to other legacy 

operators. Our service will feature a single roundtrip each service day to Orlando and a single roundtrip 

each service day to Tampa. Tampa service has the added benefit of linking Robbins Air Force Base to the 

MacDill Air Force Base facility and its 6"' Air Mobility Wing. The MSA population of Macon is in excess 

of 220,000 residents. We firmly believe the fare levels and service patterns we are proposing will capture 

lost traffic. 

A study of historic Macon traffic reveals the ability of the community to enplane far more passengers than 

we are forecasting. According to DOT T-lOO statistics, for full year 2006, Macon enplaned 12,730 

passengers while deplaning over 14,000 with a major airline codeshare. In 2005, those numbers were 

16,307 enplaned passengers with 17,417 deplaned. Obviously there is far greater potential for ridership 

that is currently being captured. 
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 the, FAA defined, hubs at Orlando, FL 

and Tampa, FL. The 1900D features stand up headroom and a pressurized cabin that we feel is critical in 

recovering lost passengers. 

Service Option 1 

24Weekly frequencies between Macon, Georgia and Orlando, Florida/Tampa, Florida 

Gulfstream proposes to operate these flights under our Continental Connection codeshare relationship with 

Continental Airlines. The timing of these flights would be optimized for connections to and fi-om 

Continental flights at each airport as well as optimize local traffic. 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 both 

Orlando and Tampa. The basic service pattern would consist of One roundtrip each weekday to Orlando 

and One roundtrip each weekday to Tampa. A single roundtrip on Saturday would operate to Orlando and 

a single roundtrip on Sunday would operate to Tampa. 

Gulfstream Airlines 

Sample Flight Schedule 

Service Option 1 

FROM TO DEP 

STA STA TIME 

ARR 

TIME 

FLT 

NUM 

EQUIP FREQUENCY STOP 

MCN MCO 900am 1040am 9310 BEl Monday thru Saturday 0 

MCN TPA 130pm 310pm 9311 BEl Sunday thru Friday 0 

FROM TO DEP ARR FLT EQUIP FREQUENCY STOP 

STA STA TIME TIME NUM 

MCO MCN 1120am 100pm 9310 BEl Monday thru Friday 0 

TPA MCN 400pm 540pm 9311 BEl Sunday thru Friday 0 

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

Essential Air Service Proposal 

Macon, GA 

1 Roundtrips to Orlando, FL, 1 Roundtrips to Tampa, FL 

Hub Served 

Number of Roundtrips per Service Day 

Macon. GA 

Orlando/Tampa 

Operating Statistics 

Assumed Completion % 

Annual Adjusted Block Hours 

Annual Adjusted Departures 

Annual Adjusted ASMs 

Annual RPMs 

Projected Load Factor 

98% 

2,044.41 

1,226 

7,573,041 

4,468,750 

59.0% 

Revenue Projections 

Enplaned Passengers 

Mileage 

Average Fare 

(Average as 

Operated) 

13,750 

329 

$45.33 

Passenger Revenue 623,219 

Expense Proiections 

Flight Operations 

Ownership 

Maintenance 

Reservations, Stations & Administration 

Fuel 

Marketing 

$236,572 

$306,360 

$816,160 

$902,969 

$905,267 

$30,000 

Total Annual Expenses $3,197,327 

Projected Profit / (Loss) 

Profit Element @ 5% 

($2,574,109) 

$159,866 

Annual Subsidy Required $2,733,975 

Subsidy per Departure 

Subsidy per Passenger 

$2,229.26 

$198.83 

Note, for purposes of this bid, the two routes are shown collectively give the fact that the stage lengths are 

virtually identical and our stations costs very similar. Additionally we feel the traffic will be roughly 

equivalent whether to and from Orlando or Tampa. 

In conclusion, Gulfstream believes that this proposal will provide the community of Macon, Georgia with 

superior air service. We feel the community will benefit from the strength of the Continental codeshare, 

the potential to retain leisure traffic that has historically been lost to Atlanta, the ability to seamlessly 

connect to and from other legacy carriers via both the Orlando and Tampa hubs, and finally the integrity of 

service that has been a hallmark of the Gulfstream operation. 
Respectfully Submitted: June 21, 2010 

Mickey Bowman 

Vice President of Corporate Development 

Gulfstream International Airlines