# Silver City, New Mexico Order 2014-7-6 Docket DOT-OST-1996-1903

September 4, 2014 Proposal of Pacific Wings L.L.C. dba New Mexico Airlines

to provide subsidized Essential Air Service for: Pacific Wings, L.L.C. P.O. Box 20280 Mesa, AZ 85277• Continuous scheduled operations since 1974 • Scheduled daily EAS and non-EAS flights throughout New Mexico since 2006 • Established presence in New Mexico enables immediate launch and seamless transition • Two-pilot EAS IFR/VFR operations using state-of-the art avionics and safety technology • Excellent operating and safety history; Service awards from aviation press • Sterile and non-sterile airport operations under TSA approved security plans • Exemption from Part 139 requirements may save some airports money • Scalable, cost-effective model tailored to rural New Mexico service delivery requirements 

# New Mexico Airlines

Delivering reliable, economically sustainable air transportation for forty years

### • Efficient, factory new commuter aircraft ,

scaled to rural utilization trends • Dramatically reduced carbon emissions • Significant operational savings enable lower fares • Reduction of taxpayer subsidies • Unparalleled safety, performance and reliability • Multiple aircraft easily scale capacity whenever 18, 27 or more seats are required • Economical, sustainable and proven service delivery model 

### Saving taxpayer dollars, conserving natural resources and reducing carbon emissions through elimination of waste



# The Green Solution

# Pre-Flight Checklist Generous free checked baggage allowance 

##  Factory-new aircraft fleet averaging less than eight years old 

##  Electronic ticketing with major airlines 

##  Modern, turbine-powered aircraft 

##  Worldwide travel agency sales and ticketing 

##  Existing New Mexico operations and personnel enable rapid service launch 

##  Re-accommodation to missed connecting Interline flights at no additional cost 

##  Electronic Ticketing through all major Global Distributon Systems and Internet travel portals 

##  Pets accepted in cabin with approved airline kennel 

##  Hunting, fishing and sports equipment accepted as checked baggage 

##  24/7 toll-free Reservations and Customer Service 

## 

### • Ticketed by travel agencies and internet travel portals worldwide
• Interline ticketing and baggage agreements with more than 65 partner airlines worldwide
• Electronic Interline ticketing with major domestic and international airlines worldwide, including Delta, United and Turkish Airlines
• Electronic travel agency ticketing via SABRE, Amadeus and Worldspan GDS
• Featured in leading consumer-direct travel web sites, including Travelocity, Expedia, ORBITZ, Kayak and Priceline, among others 

### Pacific Wings' distribution enables anyone in the US to purchase travel to EAS communities, no matter what airline, GDS, travel agency or website they prefer to use. There are also multiple options for booking abroad.



# Distribution

# Agency and Internet

Pacific Wings is featured in ALL major Global Distribution Systems and Internet travel portals

# Major Airline Partners

Pacific Wings exchanges electronic tickets and baggage with leading domestic and internatinal air carriers

# Service Delivery

• Two Weekday round-trips (am & pm departures) • One Saturday round-trip • One Sunday round-trip • Nine passenger, single-engine PropJets • Two-pilot IFR/VFR qualified crews • Non-sterile flight operations • Simplified everyday one-way fares under $100.00 • Immediate aircraft and crew availability Albuquerque

Silver CityAppendix
2 rountrips M-F, 1 roundtrip Saturday, 1 roundtrip Sunday Aircraft type Cessna 208B Seats per departure 9 Average completion factor: 95.0% Departures 1,186 Block hours: 1,383 Passengers Average fare Total SVC – ABQ 3,111 $94.16 $292,932 Other revenue 1,465 Total operating revenue $294,396 Operating expense: Flying Operations $345,800 Fuel and Oil $387,988 Aircraft and Hull Insurance $82,000 Maintenance $311,220 Into aircraft and lease expense $304,152 Direct Expense $1,431,160 Indirects $412,903 Total Operating Expense $1,844,062 Return at 5% of operating expense 92,203 Total Economic Cost $1,936,265 Annual Subsidy Need @ 95% $1,641,869 Pacific Wings, L.L.C. dba New Mexico Airlines Provision for Essential Air Service at Silver City, NM ABQ Service Calculation of Annual Subsidy Needed