# Sover eig nMr , Inc , ^^ OF^TR/ f POHIATiO N Januar y6 , 201 0
• V " - ' • '-" ^ \ : 01. 1 Denni s J
. DeVany , Chie f EA S & Domesti cAnalysi s Division , X-5 3 Offic e o fAviatio n Analysi s Departmen to fTransportatio n 120 0 Ne wJerseyAve
. S E Washington , D

C 2059 0 Re : Proposa l t o Provid e Essentia l Ai rServic e at : Salina , K S (SLN ) t o Kansas City , M O (MCI ) DOT-OST-2002-1137 6
Dea rMr
. De\/any : I n respons e t o Orde r2009-11-25 , Sovereig n Air , Inc
. offer s th e foilow/in g proposal : Sovereig n Air , Inc
. (SAI ) i s plannin g t o us e th e Kin g Ai r35 0 a s it s primar yaircraf tfo rthi s Essentia l Ai r Servic e route . I twil l b e configure d wit h nine passenge rseat s an d wil l b e expande d t o twelv e seat s a s needed
. Th e aircraf ti s typ e certificate d fo ru p t o fiftee n passenge rseats . I twil l b e fitte d wit h a bell y po d an d win g locker s t o mee tth e baggag e requirement s o fth e military
. Back-u p aircraf twil l includ e a Kin g Ai r20 0 an d a Cessn a Citatio n 501SP
. SA I i s i n positio n t o ad d extr a flight s a s passenge rdemand s mayrequire
. SA I wil l als o provid e extr a seat s fo rSL N specia l events , Sovereig n Ai ri s proposin g th e aircraf tfo rth e exclusiv e us e (n o up-lin e o rdown-lin e service ) o fth e propose d EA

S route . Ou rflight s wil l servic e onl yth e EA S cit yan d th e indicate d Hub , so tha tmor e seat s ar e actuall yavailabl e fo rth e communities
. Sovereig n Ai rbelieve s tha twit h goo d schedules , prope r pricin g an d a recoverin g economy , th e loa d factor s wil l likel yincreas e i n thes e markets
. SA I wil l bas e it s aircraft , crew s an d maintenanc e personnel , bankin g an d purchas e al l fue l i n SLN
. Thi s wil l hel p kee p th e EA S monie s i n th e Salin a community
. SA I wil l basicall yhav e onl ya singl e clas s fare
. SAI' s far e structure s wil l b e 10 % t o 20 % les s tha n existin g fares
. A s th e loa d facto rincrease s t o a 60 % average , SA I wil l retur n a portio n o fth e revenue s t o th e communit yfo rth e economi cdevelopmen to fth e Salin a ai rtransportatio n service
. SA I wil l wor k

closel ywit h th e thre e trave l agencie s i n Salin a t o develo p publishe d throug h fare s a s wel l a s join tfare s wit h th e majo rai rcarrier s t o th e primarydestination s indicate d byth e thre e trave l agencies
. SA I wil l als o develo p add-o n fare s t o b e use d byth e agencie s fo rdiscoun tai rcarriers
. SA I wil l have baggag e an d ticke tagreement s wit h th e majo rai rcarrier s i n Kansa s City(MCI)
. SA I wil l hav e carg o agreement s fo rbot h domesti can d internationa l ai rfreigh tmovements . SA I wil l utiliz e th e freigh ttermina l a tMC I fo rcarg o receivin g an d dispensing
. SA I has bee n HAZMA

Tapprove d an d wil l b e workin g i n conjunctio n wit h hospital s t o expedit e variou s HAZMA Tmaterial s tha tthe ynee d t o transport .SAI' s goa l i s t o wor k hand-in-han d wit h SLN t o reduc e th e nee d fo rEA S subsidie s withi n th e nextfou rt o si xyears . SA I wil l wor k

wit h Kansas Stat e Universit yt o develo p transportatio n an d trainin g contract s Complaint s an d problem s wil l b e handle d a tth e SL N an d MC I stations
. SAI' s statio n manua l include s a custome rservic e progra m wit h a communication s progra m so tha tpassengers ca n communicat e directl ywit h bot h statio n an d executiv e managemen tlevels
. Sovereig n Ai ri s currentl yi n th e proces s o facquirin g it s Schedule d Servic e Authorit yan d anticipate s bein g abl e t o star tthi s Essentia l Ai rServic e b yApri l 1st
. SA I wil l fil e point-to-poin ta s require d fo rmilitar ytransportatio n wit h refundabl e tickets
. Thes e fare s wil l no t includ e excessive baggag e charges
. SA I wil l leas e space a tMC I t o b e use d a s a holdin g are a fo r militar ypersonne l travellin g t o an d fro m SLN
. SAI , i n conjunctio n wit h SLN , wil l establis h a n SO S agree d upo n governmen tpoint-to-poin tfare
. Sovereig n Ai rwil l b e full yintegrate d int o th e Globa l Distributio n Syste m (GDS) i n conjunctio n wit h Worldspan
. SA I i s no ttie d t o jus ton e airline , allowin g Sovereig n Ai rbette rvisibilit yi n th e variou s reservatio n systems . Passenger s wil l have a broa d rang e o fchannel s throug h whic h t o purchas e tickets , includin g al l airlin e reservatio n system s an d trave l agencies
. Customers wil l b e abl e t o cal l ou r reservatio n offic e o rvisi tou rwebsit e t o boo k flights
. Passenger

s ca n als o purchas e ticket s an d mak e reservation s a tou rticke tcounters . SAI' s schedule s wil l b e develope d byth e SLN Airpor tBoard an d SA I t o reduc e layove rtime s i n MC I an d provid e th e bes tpossibl e arriva l an d departur e time s fo rth e travellin g public
. A s such , th e followin g schedule s wil l likel yb e adjusted : Propose d Schedul e Option s Optio n 1 (5RT) : 5 roun d trip s dail ybetwee n SLN an d MC I SLN Departur e MC I Arriva l MC I Departur e 6:0 0 6:3 0 6:4 5 

### 8:0 0 12:0 0 14:0 0 16:0 0 

### 8:3 0

12:3 0 14:3 0 16:3 0 

### 8:4 5

12:4 5 14:4 5 16:4 5 SLN Arriva l



### 7:1 5 9:1 5 13:1 5 15:1 5 17:1 5Optio n 2 (4RT) : 4 roun d trip s dail ybetwee n SLN an d MC I

SLN Departur e MC I Arriva l MC I Departur e SL N Arriva l 6:0 0 6:3 0 6:4 5 7:1 5 8:0 0 8:3 0 8:4 5 9:1 5 14:0 0 14:3 0 14:4 5 15:1 5 16:0 0 16:3 0 16:4 5 17:1 5Sovereig n Air , Inc
. Optio n 1

Annua l Compensatio n Requiremen tfo rEssentia l Ai rServic e fo r SLN-MC I 5r tdail y Aircraf tTyp e Availabl e Seat s Pe rDepartur e Passenger s Pe rTri p Beechcraft35 0 

### 9 2. 8 Bloc k Hours 

### 2,00 1 Departure s 

### 3,53 1 Tota l Passenger s Averag e Fare 

### 10,00 0 $105.0 0 Revenu e Passenge rMile s Availabl e SeatMile s 

### 1,650,25 0 5,244,03 2 Passenge rRevenu e Othe rRev
. @
. 6 o

fpax . Rev
. % Tota l Revenu e Aircraf t an d Hul l Insuranc e Fue l an d Oil Flyin g Operation s Othe rDirectCost s Maintenanc e Tota l DirectCost s $1,050,000.0 0 $6,300.0 0 $1,056,300.0 0 $25,000.0 0 $770,302.8 7 $182,071.5 9 $267,370.8 6 $150,059.0 0 $1,394,804.3 1 Tota l IndirectCost s Tota l Operatin g Expense s 

### $468,333.7 8 $1,863,138.1 0 Operatin g Los s Profi t@ 5 %

Subsid ype rle g Loa d Facto r Annua l Compensatio n Requiremen t Monthl yCompensatio n

Requiremen t 

### $806,838.1 0

$93,156.9 0 $899,995.0 0 $74,999.5 8 $254.9 0 

### 31 %Sovereig n Air , Inc
. Optio n 2

Annua l Compensatio n Requiremen tfo rEssentia l Ai rServic e fo r SLN-MC I 

### 4r t dail y Aircraf tTyp e Availabl e Seat s Pe rDepartur e Passenger s Pe rTri p Beechcraft35 0 9 3. 2 Bloc k Hours 

### 1,60 1 Departure s 2,82 5 Tota l Passenger s Averag e Fare 

### 9,00 0 $95.0 0 Revenu e Passenge rMile s Availabl e Seat Mile s 

### 1,485,22 5 4,195,22 6 Passenge rRevenu e Othe rRev
. @
. 6 ofpax . Rev
. % Tota l Revenu e Aircraf tan d Hul l Insuranc e Fue l an d Oi l Flyin g Operation s Othe rDirect Cost s Maintenanc e Tota l DirectCost s $855,000.0 0 $5,130.0 0 $860,130.0 0 $25,000.0 0 $616,242.2 9 $145,657.2 7 $242,696.6 9 $120,047.2 0 $1,149,643.4 5 Tota l Indirect Cost s 

### $469,554.4 0 Tota l Operatin g Expense s 

### $1,619,197.8 5 Operatin g Los s Profi t@ 5 %

Subsid ype rle g Loa d Facto r Annua l Compensatio n Requiremen t Monthl yCompensatio n

Requiremen t 

### $759,067.8 5

$80,959.8 9 $840,027.7 4 $70,002.3 1 $297.39 35 %Custome rsafet yan d servic e ar e Priorit yOn e wit h SAI
. Sovereig n Ai rlook s forwar d t o providin g

Essentia l Ai rServic e t o Salina , Kansas
. Sincerely ,
Jo n Payne , CF

O Sovereig n Air , Inc
.