Before the United States Department of Transportation

September 13, 2011

Proposal to Provide Essential Air Service at

Owensboro, Kentucky

Under 49 U.S.C. 41731 et seq.

DOT-OST-2000-7855

SeaPort Airlines, Inc.

Proposal to Provide Essential Air Service at

Owensboro, Kentucky

By Order 2011-8-6, the Department requested proposals for Essential Air Service at 

Owensboro, Kentucky due on September 13, 2011.

Pursuant to that Order, SeaPort respectfully submits this timely proposal to provide subsidized 

essential air service to the community of Owensboro, Kentucky for a two year term beginning on 

or about November 1, 2011, or other date as may be agreed upon with the Department, 

community, and current provider of air service at Owensboro-Davies County Regional Airport.

Correspondence regarding this proposal should be directed to:

Timothy Sieber

Vice President – Strategy & Corporate Development

SeaPort Airlines, Inc.

7505 NE Airport Way

Portland, OR 97218

(971) 340-1716

tsieber@seaportair.com
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SeaPort Airlines: Focused On Serving Small Communities

Company Overview

SeaPort Airlines, Inc. is a FAA certified scheduled airline with nearly 29 years of experience in 

commercial aviation. Our company’s foundation is built on efficient and reliable service to rural 

communities. Both SeaPort Airlines, and our sister brand Wings of Alaska, currently operate 

service under the Essential Air Service program as well as on an unsubsidized basis.

1

SeaPort’s approximately 200 professionals operate an average of 100 daily departures to 20 

cities in nine states with a business that is focused on providing service to smaller communities. 

This is in sharp contrast to the strategies of the mega-airline brands, which no longer have the 

operational or economic capability, or strategic desire, to serve rural America. 

SeaPort delivers Essential Air Service to seven communities: Excursion Inlet, Alaska; 

Pendleton, Oregon; Jonesboro, El Dorado, Hot Springs, and Harrison, Arkansas; and Salina, 

Kansas. In each of these cases, after award of the EAS contract by US DOT, we have started 

by the date promised and with fares either at or below those outlined in our proposal. We would 

note that this stands in contrast to some other airlines that place bids with unreasonable fares 

that are never realized by the traveling public, delay the start of service, or do not launch service 

that has been awarded by the Department.

A Track Record of Rebuilding Local Air Service

SeaPort Airlines is keenly aware of the air service issues that the Owensboro market has faced 

in recent years: 

 Big Sky Airlines ceased service on January 6, 2008;

 Great Lakes Aviation was selected as the replacement carrier but did not begin service

which resulted in Owensboro being without service from January 6, 2008 through August 

30, 2009 a period of 20 months; and

 Pacific Wings inaugurated service on August 31, 2009, but traffic failed to rebuild anywhere 

near historical levels.2

The Arkansas communities of El Dorado, Jonesboro, Harrison, and Hot Springs experienced a 

period of sixteen (16) months without any air service, and suffered inferior service prior to the 

hiatus. SeaPort Airlines, as the new provider of essential air service in these communities, has 

worked diligently to reestablish affordable and reliable air service that has resulted in residents 

and businesses returning to their local airport.

 

1 Wings of Alaska is the premier airline serving Southeast Alaska. Providing scheduled passenger service, fast 

freight and charter service between Juneau and Skagway, Haines, Hoonah, Gustavus, and weekly flights to 

Excursion Inlet. Wings of Alaska grew in reputation and size, becoming one of the most successful regional air 

carriers in Alaska, now comprised of a fleet of seven Cessna 207’s and Grand Caravans. Wings of Alaska presently

operates an average of 38 daily scheduled flights to six Southeast cities in Alaska.

2 US DOT Order 2011-8-6
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To illustrate this point, the graph below compares SeaPort’s monthly enplanements since we 

reestablished scheduled service at the four Arkansas communities during the fall of 2009 to 

enplanements at Owensboro during the approximate same period.

3

Monthly Enplanements

SeaPort Arkansas Markets v OWB

September 2009 – August 2011

0

50

100

150

200

250

300

350

400

PacWings - OWB

SeaPort - HOT

SeaPort - HRO

SeaPort - ELD

Seaport - JBR

Revenue Passenger Enplanements

It is clear that SeaPort has experienced success in reestablishing air service in the Arkansas 

communities and we reasonably believe similar success can be achieved in Owensboro with the 

right combination of schedule, fares, destination, reliable service, and community partnership. 

A Track Record of Building Community Partnerships

With respect to community partnerships, SeaPort Airlines prides itself on those which it has 

been able to develop in each market served. This includes participation in local events, donation 

of tickets, regular community meetings, and advance notification of and opportunity for input 

related to schedule changes and fares.

 

3 Note that Pacific Wings started service in Owensboro on August 31, 2009, with the first complete month of service 

being September 2009. SeaPort Airlines started service in Arkansas during October 2009, with the first complete 

month being November 2009. The data illustrated begins with the first complete month of service for each carrier. 

Data for SeaPort Airlines ends in August 2011, the last complete month prior to the filing deadline of this Docket. 

Pacific Wings enplanements were sourced from T-100 market reports, May 2011 being the most recent publicly 

available data. 
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We believe this approach serves our own interests equally with those of the communities served 

by fostering long-term, stable relationships that result in increased ridership and, eventually, 

reduced subsidy requirements. SeaPort’s partnership approach is beginning to get recognized 

by those who watch the Essential Air Service program as evidenced by the following weblog 

entry from Skyland Centre for Essential Air Service:4

We invite the Owensboro community to contact any of our EAS partner communities for 

additional information. Additional evidence of our ability to develop a strong community 

partnership and provide Owensboro with reliable, customer-focused air service is demonstrated

through community and customer comments that are provided later in this proposal.

 

4

SkyLand Centre for Essential Air Services offers news, information, expert opinion and industry insights through 

www.SkyLandNews.com home page, where breaking news is posted as it comes in and a weekly news digest, 

currently circulated to 5,000 essential air service professionals around the world.
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The SeaPort Airlines Experience

Below, we have summarized for the benefit of the Department and the community key elements 

of SeaPort’s operating model and service strategy that we intend to employ at Owensboro KY if 

selected to provide essential air service.

Aircraft

SeaPort Airlines is proposing service at Owensboro with 9-passenger Cessna Caravan aircraft. 

Currently manufactured in the USA, the Caravan was originally designed in the 1980’s to 

replace an aging fleet of fleet of piston-powered aircraft, such as the De Havilland Otter and 

Cessna 402. 

SeaPort Airlines Cessna Caravan

The Caravan has a spacious cabin that is highlighted by a large aisle and huge windows for all 

around excellent visibility. The large cargo pod on the belly of the aircraft facilitates carriage of 

baggage volumes and weights much greater than that which can be accommodated on older 

piston-powered twins.

We believe the Cessna Caravan offers the “right size” increment of capacity to rebuild 

passenger traffic at OWB, enabling us to offer optimal frequency levels and reasonable fares to 
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the community, while at the same time minimizing the required level of subsidy by the 

Department. 

Airport Terminals

SeaPort Airlines is offering three proposal options for consideration by the community and 

Department that include service to St. Louis, Nashville, and Memphis. For service at each 

airport, SeaPort proposes the following terminal arrangements:

 St. Louis (STL): SeaPort Airlines will operate from the main terminal complex with all 

passengers being screened by the Transportation Security Administration (TSA). 

 Nashville (BNA): SeaPort Airlines would operate from the main terminal with TSA-screened 

operations. We have obtained the airport’s schedule of rates and charges and, unlike the 

current EAS provider at Owensboro, have no indication that we would be “unable to procure 

counter or gate space at [Nashville International Airport] on reasonable terms.”5

 Memphis (MEM): SeaPort would utilize its existing business terminal at Memphis 

International Airport, which offers convenience for quick trips to and from the Memphis 

metropolitan area. We provide a complimentary and quick shuttle service to and from the 

main airline terminal for passengers connecting to, or from, distant destinations. Passengers 

departing Owensboro would go through TSA screening. Passengers departing Memphis 

would not go through TSA screening and would be deplaned into a non-sterile area at 

Owensboro.

Distribution Strategy

SeaPort has invested heavily in improving our inventory distribution abilities. We are now in all 

five major global distribution systems and are available on all major online travel agencies and 

meta-searchers including Orbitz, Travelocity, Expedia, Kayak.com, Hipmunk.com, and 

CheapoAir.com. 

SeaPort currently has an interline ticketing agreement with US Airways and is working toward 

securing agreements with other carriers that will facilitate single ticket itineraries from

Owensboro to destinations all around the world.

Pricing Model

Generally, SeaPort Airlines employs a simplified pricing strategy of all fares being one-way with 

varying levels of advance purchase and capacity controls.6 The objective of this strategy is to 

offer a community attractive fares that encourage use of the local airport, while at the same time 

minimizing required levels of subsidy provided by the Department. Equally as important, we 

oppose the notion of “baiting” a community with ridiculously low fares and inflated traffic 

projections that are neither attainable nor sustainable and, in reality, shift the true and fair cost 

of air transportation from consumers to the Department and EAS program.

 

5 US DOT Order 2011-8-6, p. 2

6

From time to time SeaPort offers promotional fare sales that offer additional savings to passengers. We anticipate, 

for example, offering introductory fares in the Owensboro market to generate market awareness of SeaPort Airlines 

as the new provider of regular air service at OWB and, depending on the service option selection by the community 

and Department, the new service option.
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Consistent with our pricing model, SeaPort charges reasonable fees for ticket changes ($35 v 

$100+ on most major airlines), pet travel, and unaccompanied minors. These fee levels reflect 

SeaPort’s philosophy of building customer loyalty through quality service at reasonable prices 

rather than opportunistically “nickel and diming” passengers at every possible turn.

Marketing & Public Relations Strategy

SeaPort will implement a comprehensive marketing and public relations strategy aimed at 

introducing the brand and service model to the community and promoting increased ridership 

levels. Among the marketing activities that SeaPort has implemented in other markets and 

which will be applied at Owensboro are the following:

 Local Event Marketing. Recognizing that visible participation in local events has been 

successful for both legacy and low-cost airlines, SeaPort has implemented a similar strategy 

in all of its communities. These have ranged from SeaPort Airlines community egg hunts, to 

presenting at business expos, to hosting “after hours” events at local Chamber of 

Commerce meetings. In addition, SeaPort often makes “in kind” donations of tickets for use 

by local charities, either for their own business needs or as a fundraising tool (i.e., raffles, 

silent auctions, etc.).

 Website: The majority of SeaPort’s passengers book through the Company’s website 

(www.SeaPortAir.com) which is currently undergoing a redesign to improve user navigation

and facilitate an easier booking process. 

 Social Media: Since 2010, SeaPort Airlines has managed a successful social media 

campaign that has allowed the Company to dynamically engage its customer base in a twoway conversation through sites such as Facebook, Twitter, FourSquare & LinkedIn. We 

have found social media to be an excellent tool for generating passenger referrals and 

information sharing in our communities, and expect similar results in Owensboro.

 FlyerFlex Customer Rewards: During 2011, SeaPort launched a new and improved 

customer loyalty program called “FlyerFlex.” This program provides customers with a variety 

of benefits including free flights, service charge waivers, bonus points, gift memberships, 

and personalized baggage tags. SeaPort anticipates unveiling further enhancements of the 

FlyerFlex program during 2012 that will include a wider choice of travel rewards. 

 Value Accounts: SeaPort will offer its Corporate Value Account at Owensboro, a program 

that encourages businesses to make a long-term investment in local air service by offering a 

variety of benefits and savings, including 5%-to-15% savings. It is important to note that 

unlike corporate travel programs of major airlines that are not designed to serve small 

businesses in rural communities, SeaPort’s Corporate Value Accounts can provide savings 

to a company of virtually any size and can be used by any employee of a company, not just 

specific employees named on a sales contract. 
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Sample SeaPort Airlines Advertising
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Community & Customer Feedback 

While SeaPort Airlines has outlined above why we believe our airline is well positioned to

ensure that reliable and reasonably priced air transportation continues to play a vital role in the 

local economy and quality of life in both of these communities, the strongest proof resides in the 

accolades we receive. Below is just a small sample of the comments SeaPort has received from 

our customers and community partners:

“Eastern Oregon Regional Airport at Pendleton had been struggling since 

schedule changes following 9/11 served by a carrier flying 37 seat aircraft. Low 

passenger count attributed to poor schedule, which then contributed to poorer 

passenger count. The carrier's solution was to bring in larger aircraft and fly to a 

different hub. The Airport and community balked at this suggestion and went in 

search of alternatives. The solution found through the EAS process was SeaPort 

Air flying a 9 passenger Pilatus. The passengers have welcomed the new 

service, much better schedule, and are elated with "no security check" and stand 

by time. Passengers today will say, "I love the service", "great customer service", 

and "I'm sure glad I finally tried it, cause I'll be back".

In our particular market, the 9 passenger aircraft is perfect, and SeaPort Air 

provides the schedule, the professionalism, and customer service we need and 

desire.”

− Larry Dalrymple 

Airport Manager

Pendleton Regional Airport

“I have never had such a positive experience connected with any airline. I read 

about Seaport Air last October when they opened the Mid-South Route, but didn’t 

have the chance to fly until March. Usually the dread of the process comes then 

you just grin and bear it; however, with SeaPort Air I could arrive 15 minutes 

early. The hassle free no TSA is wonderful and made me feel special. I have 

flown twice in the last 2 months and the customer service from start to finish is 

outstanding. I will be a regular customer and have already recommended the 

airline to several associates. Thank you, SeaPort Air, for making me feel like a 

queen!”

− Catherine Martin

Customer (few from Memphis to 

Harrison)

“For two decades I have been picking my mother up at the airport and for two 

decades I have been met with the defeated, hang-dog look that the ordeal of air 

travel has given her. I guess it pretty much does it to all of us, but (as she is well 

into her 80's) I worry about the toll it takes on her more and more lately.
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When I picked her up today from her SeaPort flight K52325 from Dallas and saw 

she was smiling, you could have knocked me over with a feather! She couldn't 

stop raving about how pleasant the flight was. Let me be clear. My mother is a 

tough-as-nails Mid-western Yankee from the old school who has been around 

the world a couple of times since the late 1940's. She doesn't bestow idle praise 

and she seldom raves.

Since it was a 9-seater plane that had to stop for a bathroom break, I can only 

conclude that it was the above average service she received from your staff. 

She, in fact, said as much. From the ticket counter in Dallas to the ride she got 

to the main terminal in Memphis she was impressed. She even liked the way 

she was asked to turn off her mobile phone and the help she was given doing so 

(she's not a big techie).

I'm in the service industry myself and I know how often complaints come 

through. I just want to be sure to let you know how well everyone did on this 

flight. In the future, I will look to SeaPort first for my travel needs and will spread 

the good word to my friends.

A smile and a kind word go a long way y'all. Thank you for getting this one so 

right.”

− Mark Davis Peterson

Customer (flew from Dallas 

to Memphis)

“I want to let you know that Alan, the owner, and I were stuck in the horrendous 

traffic getting to the airport. Your people called to see where we were at. Called a 

few times to try and get us out of the jam – which was impossible, we were too 

far from the Gateway and we already had been on the road 11⁄2 hours. Did 

manage to break free taking 102 (I think) and called close to the Embassy to let 

them know we were just a minute away and they held the plane for us!! Amazing 

and kudos to your team!! I have been telling everyone of the stellar customer 

service and you will be our flight of choice going forward.”

− Joanne Bosworth

Customer (flew from Portland to 

Seattle)

“Two hours before the flight I booked my ticket to Memphis from Hot Springs. 

Wow! What a surprise; it was simple, convenient, great price, and impeccable 

service. It far exceeded my expectations and I will be flying to Memphis on 

SeaPort Airlines instead of driving from now on. The customer service was 

fabulous!”

− Ruth Ann Smith 

Customer (flew from Hot 

Springs to Memphis)
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Service Proposal

Service Pattern

SeaPort Airlines is offering three service options for consideration by the Owensboro community

as summarized on the map below.

SeaPort Airlines

Service Pattern Options at Owensboro, KY

Option #1

18 weekly round trips to Nashville, TN

Option #2

12 weekly round trips to St. Louis, MO

+ 6 weekly round trips to Memphis, TN

Option #3

12 weekly round trips to St. Louis, MO

+ 6 weekly round trips to Nashville, TN

St. Louis, MO (STL)

Memphis, TN (MEM)

Nashville, TN (BNA)

Owensboro, KY (OWB)

Note that options #2 and #3 would provide the community with access to two different 

connecting hubs. We believe that this enhanced option of two connecting points will help 

facilitate faster restoration of passenger traffic at OWB. We have found this to be true in our 

Arkansas communities, where the addition of Dallas and/or Kansas City to existing Memphis 

service has resulted in significant recent traffic growth (see graph on page 3), and believe 

similar results can be achieved in Owensboro.

In the case of Memphis, access would be afforded to virtually every major airline in the United 

States and is a major hub for Delta Air Lines. St. Louis and Nashville offer similar access to 

legacy carriers, with the added benefit of access to low-fare airlines such as Southwest and 

Frontier.

7

 

 

7 While SeaPort Airlines (along with every other U.S. based airline) does not have an interline ticketing and baggage 

agreement with Southwest Airlines, Internet savvy consumers figured out long ago how to build “end to end” 

connecting itineraries with this carrier, as well as others. This has been validated in a number of our other EAS 

markets that are linked with airports served by Southwest (as well as other low-fare airlines). 
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Projected Passenger Traffic

The Department provided historical traffic in Appendix B of Order 2011-8-6 to “assist carriers in 

developing traffic and revenue projections for their performance.” That data indicates traffic at 

Owensboro has been in a “free fall” since service was initiated by the current air carrier.8

To develop passenger and revenue projections, SeaPort Airlines reviewed historical traffic data 

back to 2003. This data is provided below and compared to SeaPort’s own traffic forecast during 

the first year of service at Owensboro for each option.

Passenger Traffic at OWB

Historical Levels v SeaPort Forecast

SOURCE: Historical traffic data from T-100 filings

0

2,000

4,000

6,000

8,000

10,000

12,000

STL BNA MEM CVG

SeaPort’s passenger forecast is reasonable when compared 

against those years during which Owensboro had reliable, 

affordable, and – most importantly – stable air service

While SeaPort’s projected passenger levels are higher than recent historical data, they should 

not be viewed as unreasonable when the community’s ability to generate passenger traffic is 

considered over a longer period of time. 

We raise this point because during communication with the EAS Division related to another 

docket Seaport Airlines was advised the Department’s calculation of whether a proposal meets 

statutory requirements is based on actual passenger counts and not a specific carrier’s forecast. 

If we were to submit a bid using the actual numbers for the period that Owensboro has been 

served by Pacific Wings, the level of subsidy requested would have to be substantially higher

and would have exceeded the statutory cap of $200 per passenger.

 

8

See graph on page 3.
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Service Proposal Detail & Subsidy Request

Projected revenue and operating expenses that form the economic basis of this proposal are 

summarized on the tables on the next page for a two year period. Note that the requested level 

of subsidy for each option declines during the second year as SeaPort is confident that, similar 

to our experience in Arkansas, we will be able to restore consumer confidence in scheduled air 

service at Owensboro-Davies County Regional Airport.

Projections are based on the assumption of one-way fares from Owensboro as low as:

 $99 to Memphis;

 $79 to St. Louis; and

 $59 to Nashville.9

Notwithstanding the risk of cost inflation in coming years (particularly related to fuel) that could

possibly outstrip traffic growth and reasonable fare increases, SeaPort is offering the 

Department the option to contract the proposed annual subsidy for a four year period at no 

increase in annual subsidy beyond that level specified for the second year of each option in this 

proposal. We believe this offer provides the community with the assurance of stable air service 

for an extended period and reduces the administrative burden on both the Department and 

ourselves.

SeaPort Airlines appreciates the opportunity to submit this proposal and welcomes any 

questions from the community or the Department.

Respectfully submitted,

Timothy Sieber

Vice President – Strategy & Corporate Development

SeaPort Airlines, Inc.

 

9

Inclusive of all taxes and fees.
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Operating Projections Year 1 Year 2

Average Sector Length (sm) 115 115

Scheduled Departures 1,872 1,872

Scheduled Block Hours 1,747.2 1,747.2

Projected Completion Factor 98.0% 98.0%

Projected Completed Departures 1,835 1,835

Projected Completed Block Hours 1,712.3 1,712.3

Passenger Projections

Projected Passengers 5,200 5,720

Projected Average Fare $72.50 $73.95

Revenue Passenger Miles (RPMs) 598,000 657,800

Available Seat Miles (ASMs) 1,898,770 1,898,770

Projected Load Factor 31.5% 34.6%

Financial Projections

Revenues

Passenger Ticket Revenues $377,000 $422,994

Ancillary Revenues $11,395 $12,789

Total $388,395 $435,783

Expenses

Flight Operations $196,909 $200,163

Aircraft Ownership/Lease $162,664 $162,664

Fuel & Oil $404,520 $412,611

Traffic Servicing $53,572 $60,108

Insurance $34,245 $34,930

Maintenance $282,522 $288,173

Sub-Total - Direct $1,134,433 $1,158,649

Indirect $215,542 $231,730

Total Expenses $1,349,976 $1,390,379

Projected Operating Profit/(Loss) ($961,581) ($954,595)

Subsidy Calculations

Operating Loss $961,581 $954,595

Economic Return @ 5% $67,499 $69,519

Required Subsidy $1,029,080 $1,024,114

Subsidy per Departure $560.94 $558.23

Subsidy per Block Hour $601.01 $598.11

Subsidy per Passenger $197.90 $179.04

18 Weekly Roundtrips: Owensboro, KY - Nashville, TN

Option #1

SeaPort Airlines, Inc.
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Operating Projections Year 1 Year 2

Average Sector Length (sm) 206 206

Scheduled Departures 1,872 1,872

Scheduled Block Hours 2,780.4 2,780.4

Projected Completion Factor 98.0% 98.0%

Projected Completed Departures 1,835 1,835

Projected Completed Block Hours 2,724.8 2,724.8

Passenger Projections

Projected Passengers 6,500 7,475

Projected Average Fare $108.81 $110.98

Revenue Passenger Miles (RPMs) 1,341,167 1,542,342

Available Seat Miles (ASMs) 3,406,778 3,406,778

Projected Load Factor 39.4% 45.3%

Financial Projections

Revenues

Passenger Ticket Revenues $707,250 $829,604

Ancillary Revenues $21,371 $25,086

Total $728,621 $854,690

Expenses

Flight Operations $307,085 $312,159

Aircraft Ownership/Lease $253,679 $253,679

Fuel & Oil $630,859 $643,477

Traffic Servicing $100,499 $117,888

Insurance $53,406 $54,474

Maintenance $440,600 $449,412

Sub-Total - Direct $1,786,129 $1,831,089

Indirect $143,502 $272,004

Total Expenses $1,929,631 $2,103,093

Projected Operating Profit/(Loss) ($1,201,010) ($1,248,403)

Subsidy Calculations

Operating Loss $1,201,010 $1,248,403

Economic Return @ 5% $96,482 $105,155

Required Subsidy $1,297,492 $1,353,557

Subsidy per Departure $707.25 $737.81

Subsidy per Block Hour $476.18 $496.75

Subsidy per Passenger $199.61 $181.08

SeaPort Airlines, Inc.

Option #2

6 Weekly Roundtrips: Owensboro, KY - Memphis, TN

12 Weekly Roundtrips: Owensboro, KY - St. Louis, MO
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Operating Projections Year 1 Year 2

Average Sector Length (sm) 164 164

Scheduled Departures 1,872 1,872

Scheduled Block Hours 2,281.6 2,281.6

Projected Completion Factor 98.0% 98.0%

Projected Completed Departures 1,835 1,835

Projected Completed Block Hours 2,236.0 2,236.0

Passenger Projections

Projected Passengers 6,500 7,475

Projected Average Fare $89.42 $91.21

Revenue Passenger Miles (RPMs) 1,063,833 1,223,408

Available Seat Miles (ASMs) 2,702,307 2,702,307

Projected Load Factor 39.4% 45.3%

Financial Projections

Revenues

Passenger Ticket Revenues $581,250 $681,806

Ancillary Revenues $17,562 $20,610

Total $598,812 $702,417

Expenses

Flight Operations $251,997 $256,161

Aircraft Ownership/Lease $208,172 $208,172

Fuel & Oil $517,690 $528,044

Traffic Servicing $82,595 $96,885

Insurance $43,826 $44,702

Maintenance $361,561 $368,792

Sub-Total - Direct $1,465,840 $1,502,755

Indirect $322,485 $360,661

Total Expenses $1,788,325 $1,863,416

Projected Operating Profit/(Loss) ($1,189,513) ($1,161,000)

Subsidy Calculations

Operating Loss $1,189,513 $1,161,000

Economic Return @ 5% $89,416 $93,171

Required Subsidy $1,278,929 $1,254,171

Subsidy per Departure $697.13 $683.64

Subsidy per Block Hour $571.97 $560.90

Subsidy per Passenger $196.76 $167.78

SeaPort Airlines, Inc.

Option #3

6 Weekly Roundtrips: Owensboro, KY - Nashville, TN

12 Weekly Roundtrips: Owensboro, KY - St. Louis, MO