Essential Air Service Service at

McCook NE Docket 

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

ALASKA JUNEAU AERONAUTICS, INC.

DBA

WINGS OF ALASKA

&

SEAPORT AIRLINES

PROPOSAL TO PROVIDE ESSENTIAL AIR SERVICE

AT

McCook, NE

DOCKET

OST 1997‐3005

Alaska Juneau Aeronautics, Inc. dba

SeaPort Airlines

7505 NE Airport Way, Portland, OR. 97217
Compa yn Overview

SeaPort SeaPort Airlines Airlines is a dba of Alaska Juneau Aeronautics, Aeronautics, an FAA Part 135 certified certified

scheduled air service provider with 27 years experience in commercial aviation. Our

company’s foundation is built on efficient and reliable service to rural communities.

Both SeaPort Airlines and our sister company Wings of Alaska currently operate

routes under the Essential Air Service program, as well as un‐subsidized operations

on est bli h d tablished competitive routes.

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 Kake, 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 planes from Cessna

206 and 207’s to Cessna Grand Caravans.
HIT THE SKY RUNNING ® RUNNING.® : SeaPort SeaPort Airlines Airlines currently currently operates operates 

scheduled flights in five Northwest cities and 24 daily schedule

in five Mid‐South cities. Soon we will offer an additional 6 dail

in the Mid West.

EAS 6 RoutesSpeculative 1 RouteState Contractual 2 Routes

SeaPort Airlines
Bringing Bringing Southeast Southeast Alaska Closer Together: Together: Wings of Alaska cu

cu

operates 36 daily scheduled flights to seven Southeast Alaska c

Wings of Alaska

EAS 2 RoutesSpeculative 5 Routes
Our Aircraft

SeaPort Airlines operates 7 Pilatus PC‐12 aircraft. The PC‐12 is a Swiss‐built

pressurized turboprop aircraft typically found in corporate aviation, but utilize

SeaPort Airlines in a nine seat commuter configuration The world's best sellin

u a

SeaPort Airlines in a nine seat commuter configuration. The world s best‐sellin

turbine business aircraft, still in production today, the PC‐12 can shuttle you w

comfort and speed with each seat both a window and aisle.

Pilatus Pilatus, the world market leader in the manufacture manufacture of turboprop turboprop aircraft aircraft and 

only Swiss company to develop, produce and sell aircraft and training systems 

the world.http://www.pilatus‐aircraft.com
Right-Sized for McCook

SeaPort proposes three direct round trips per day between McCook and Denver. This s

offer more than enough inventory to provide for the historical traffic of the last several 

keeping keeping capacity capacity “right‐sized” and avoiding avoiding an unnecessary unnecessary flooding flooding of empty seats and 

higher operating costs. Please see Exhibit “2” for details.

SeaPort has constructed the schedule to maximize traffic flow with flights morning, mid

evening. SeaPort believes that traffic will increase in year two as the speed and conven

service become more familiar to the residents of these communities.

In addition, a daily plane overnight in McCook will prove reliable to the above schedule

recommendation similar to the overnight success SeaPort experiences in the Northwes

We are therefore able to offer these communities the best possible fit with:

• Comfortable and fast pressurized Pilatus PC‐12 aircraft

• Convenient schedules

• Affordable fares

• A reasonable and sust i bl a na e sub ids y amount
EAS History

Whereas many communities have been promised service that has never transSeaPort delivers Essential Air Service to eight communities: Excursion Inlet, Ala

k l k dl b k l d k

y

Kake, Alaska, Pendleton, Oregon, Jonesboro, Arkansas, El Dorado, Arkansas, H

Springs, Arkansas, Harrison, Arkansas, and Salina, Kansas. Additionally, SeaPo

serves Newport, OR and Astoria, OR under a combined state and federal grant

program.

In every case, after award, we have started on time, on budget, and with fares 

at or below that which we outlined in our bid, as compared to so many other 

who place bids with unreasonable fares that are never realized by the travelin

public.
SeaPort’s Proposed Plan

SeaPort Airlines emphasizes customer service and convenience, and in so doing our platform is reminisc

commercial air service of the past in that our passengers only need to arrive 20 minutes prior to departuany of our terminals.

In Denver, SeaPort SeaPort would use the business business aircraft aircraft center for an enhanced enhanced travel experience experience. From this 

we will provide complimentary shuttle van service to and from Denver’s main terminal for those passen

needing to connect to, or returning from, more distant destinations. This model has proven itself well a

in Portland, Oregon and is no less convenient than a typical gate change—only with this one you get a

complimentary shuttle ride.

Further, a no‐TSA model will offer the communities tremendous appeal for quick trips to and from Kansa

Denver, and other potential major market connections to be served by SeaPort. Finally, a no‐TSA model 

greatest potential to draw business and leisure traffic from Denver that would otherwise travel by highw

traditional TSA‐restricted airline was the only flight option.

L tl as y, the $119 d ll o ar fare in our proposal is an average fare. T l rave to Denver will as low as $79 00 . one 

far less than the current operator.
No TSA. No Hassles.

SeaPort Airlines is unique in that it proactively markets to travelers the ease and convenience of by‐passsecurity screening. Below are a few inherent cost saving benefits and customer benefits passed to you t

a

security screening. Below are a few inherent cost saving benefits and customer benefits passed to you t

when partnering with a carrier such as SeaPort Airlines:

•Lower fares thanks to no gate fees

•Increase reliability in arrival and departure times•Quicker turn times

•Arrive just 20 minutes before departure, board, and go

•No lines. No rubber gloves. No need to take your shoes off.

We found what air travel lost:Ease and Convenience
Efficiency & Reach

 April 2010 full GDS visibility(Travelocity, Expedia, etc.)

y a

 Reservations available online at SeaPortAir.com, toll‐free at 888.573.2767, o

local travel agents Low Fares thanks to low op g erating costs and efficient aircraft eq p ui ment

 High‐frequency, non‐stop daily service – up to 6 segments in this proposal

 Customer focused bring g in the convenience of a private plane to the averag

for the same cost as commercial airlines.
EAS Testimonial

Larry Dalrymple Dalrymple – Airport Airport Manager Manager , Pendleton Pendleton Regional Regional Airport: Airport:“Eastern Oregon Regional Airport at Pendleton had been struggling since schedule changes following 9/

carrier flying 37 seat aircraft. Low passenger count attributed to poor schedule, which then contributed 

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

community balked at this suggestion and went in search of alternatives. The solution found through the was SeaPort Air flying a 9 passenger Pilatus, that would eliminate the need for TSA security as well as m

standby, saving the Airport personnel costs in an already short budget. The passengers have welcomed service, much better schedule, and are elated with "no security check" and stand by time. Passengers tolove 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 p

and customer customer service service we need and desire ” desire.”
Customer Feedback

Deborah A. Burton, PhD, RN, CNAA said:

“I am the VP and Chief Nursing Officer for Providence. We are located in 5 western states, operate 28 hospitals, and em

people and 15,000 nurses. Needless to say, air travel is my life. This past four days I had one of the most delightful exp

oth i erw se grueling t l rave life: I flew SPt ea or from B i oe ng to P tl d or an to At i s or a and b k ac . Sh ld ou you be consid i er ng ot

please let me know (we are in Alaska, Montana, Washington, Oregon and southern California). I am now officially a loy

traveler. Thanks for the great service and convenience.”

Dylan Hardman said:

“WOW! What a great product! From being picked up curbside at KPDX to walking out the door at KAST, this was truly a 

experience. G t rea f ilit ac y at KPDX, f i dl r en y ground st ff a , profi l ess onal crew, clean ai ft rcra , (same with the At i s or a f ilit ac 

total VIP experience without the hefty price tag. I WILL be back!”

Sebastian said:

“Thursday evening I flew your airline from Portland to Seattle and had a superior experience. Avoiding the whole airpo

security rigmarole was a tremendous time saver. I was spoiled. SeaPort Air is clearly the most efficient way for intellige

prof l essionals to commute between Portl d an and Seattle. Our car ride home on Sunday seemed to take forever. Th k an 

the vision to offer this service. I will share this positive experience with my colleagues and if I may ever be of assistance 

let me know.”
Recent News

For a list of SeaPort news articles visit http://www.SeaPortAir.com/pressEconomy doesn't ground airline start‐ups (click here)USA Today :: 11/16/2009

They're just realistic about the history of this industry and the likelihood (a) new start‐up 

survive," says Craford, who helped launch SeaPort in ...

Scheduled air service returns to Region 8 (click here)KAIT TV:: 10/26/2009SeaPort Airlines will link Memphis and four Arkansas cities » The ... (click here)Gloria Levston of Signature Flight Support adds fuel to a SeaPort Airlines Pilatus PC12 pla

SeaPort facility at Memphis International Airport The ...
Recent SeaPort News

‘This is a great day for El Dorado’SeaPort Airlines welcomed as new air service provider

By: John WorthenPublished: 10/28/2009Approximately 50 people gathered Tuesday morning at the South Arkansas Regional Airport terminal to celebrate the return of air service to El Dorado.

Representatives from SeaPort Airlines, who arrived on a flight from Memphis International Airport to commemorate the occasion, were greeted with cheers and s

local officials.

The Portland, Ore.‐based company will offer round‐trip flights between El Dorado and Memphis on the Swiss‐built Pilatus PC‐12, a pressurized turbo‐prop airplane

are 4:10 a.m., 11:20 a.m., and 8:20 p.m., according to SeaPort’s website.

SeaPort will also operate round‐trip flights to Memphis from Harrison, Hot Springs and Jonesboro.

These communities, along with El Dorado, have been without regular service since 2008, when Air Midwest, a subsidiary of Mesa Airlines, pulled out of the market

companies that submitted p p ro osals to the Department of Transportation and signed a two‐year contract to provide the service for a $, , 6 047 789 federal subsidy. T

subsidizes airlines to provide service that wouldn’t be profitable on the open market.

SeaPort officially opened Monday in El Dorado with a 4:30 a.m. flight from SARA to Memphis International. At the ceremony Tuesday, local officials touted SeaPor

El Dorado’s economic engine hum.

Jeff Teague, chairman of the El Dorado Airport Commission, called the day a “bright one,” despite cloudy, mist‐filled skies that had the SARA socked in.

Getting this airline “has been an arduous task, but we got the best service we could have,” Teague said. “Transportation is the key issue in economic development

Dorado for the past year or so has really not been a good thing. And now, with all that’s going on in El Dorado, with the conference center and the new high schoo

icing on the cake.”

Kent Craford, chief executive officer of SeaPort, called Tuesday “an exciting day for us at SeaPort. We feel that our small nine‐passenger airplane is a perfect fit for 

the fact that we will be offering three trips a day allows for better connection service and same day travel opportunities to Memphis and beyond. We are your hom

El Dorado Mayor Mike Dumas spoke highly of SeaPort officials and said he looks forward to working with them throughout their tenure here.

“This is a great day for El Dorado,” Dumas said. “We have been working on this for more than a year, and it’s great to finally have air service back in El Dorado. We 

thank you for your service.”

More information and reservation information is available by logging on to the SeaPort Web site at www.seaportair.com.
SeaPort welcomes this opportunity to be chosen to provide essential air

service at MC k c oo , Nb k e ras a for the next two year peri do . We b ir ng a f h res

approach, and believe we have presented a proposal that will meet the EASneeds of the communities at reasonable subsidy levels. Thank you for your

consideration.

Rob McKinney

Respectfully submitted,

McKinney

PresidentSeaPort Airlines7505 NE Airport WayPortland, OR 97218

(971) 340‐1711

www.SeaPortAirlines.com
Alaska Juneau Aeronatics, Inc. d/b/a SeaPort Airlines

Essential Air Service Proposal

Docket OST-1997-3005

Annual Subsidy Requirement

July, 2010 - June, 2011

McCook

Factor MCK-DEN

Revenue:

 Passenger: Forecasted Passengers 3,978 Average Revenue / Pax:

 Current: Oct 2008 - Sept 2009 119.00 $  Revenue / Pax Change 1.00%

 Average Revenue / Pax $ 120.19

 Passenger Revenue 478,116 $  Other Revenue: Ratio to Passenger Revenue 1.00% Other Revenue 4,781 $  Total Revenue 482,897 $ 

Operating Expenses

 Completed Block Hours 2,188.80 Direct Flight Crews $ 157,594 72.00

 Fuel

 Gallons / Block Hour 74 Into Plane Cost / Gallon 3.45 $ 

 Fuel Cost / Block Hour $ 558,801 255.30

 Insurance $ 109,812 50.17

 Maintenance $ 462,275 211.20

 Aircraft Lease $ 387,615 177.09

 Total Direct 1,676,097 $  Indirect Expense 39.00% 653,678 Total Operating Exp 2,329,775 $ 

Return 5.00% 116,489Total Economic Cost $ 2,446,264

Surplus / (Deficit) (1,963,367) $ 

Annual Subsidy $ 1,963,367
Alaska Juneau Aeronautics, Inc. d/b/a SeaPort Airlines

Essential Air Service Proposal

Docket OST-1997-3005

Annual Subsidy Requirement

July, 2011 - June, 2012

McCook

Factor MCK-DEN

Revenue:

 Passenger Forecasted Passengers 4,177 Average Revenue / Pax

 Estimate: Oct 2009 - Sept 2010 120.19 $  Revenue / Pax Change 0.00%

 Average Revenue / Pax $ 120.19

 Passenger Revenue 502,022 $  Other Revenue: Ratio to Passenger Revenue 1.00% Other Revenue 5,020 $  Total Revenue 507,042 $ 

Operating Expenses

 Completed Block Hours 2,188.80 Direct Flight Crews $ 165,473 75.60

 Fuel

 Gallons / Block Hour 74 Into Plane Cost / Gallon 3.62 $ 

 Fuel Cost / Block Hour $ 586,752 268.07

 Insurance $ 109,812 50.17

 Maintenance $ 462,275 211.20

 Aircraft Lease $ 387,615 177.09

 Total Direct 1,711,927 $  Indirect Expense 39.00% 667,652 Total Operating Exp 2,379,579 $ 

Return 5.00% 118,979Total Economic Cost $ 2,498,558

Surplus / (Deficit) (1,991,516) $ 

Annual Subsidy $ 1,991,516
Alaska Juneau Aeronautics, Inc. d/b/a SeaPort Airlines

Essential Air Service Proposal

Docket OST-1997-3005

Proposed Departure Schedules

July, 2010 - June, 2012

Sched Sched Sched 

Sched Block Sched Block Block Sched Comp 

City Block Sched Hours / Freq / Hours / Hours / Seg / Comp Seg / 

Community Pair Time Seg Seg Week Week

Year

Year Factor Year

MCK MCK 0545

DEN 0650 1 1.20 6 7.20 374.40 312 97.50% 304 

DEN 0935

MCK 1040 1 1.20 6 7.20 374.40 312 97.50% 304 

MCK 1055

DEN 1200 1 1.20 6 7.20 374.40 312 97.50% 304 

DEN 1520

MCK 1625 1 1.20 6 7.20 374.40 312 97.50% 304 

MCK 1640

DEN 1745 1 1.20 6 7.20 374.40 312 97.50% 304 

DEN 1955

MCK 2100 1 1.20 6 7.20 374.40 312 97.50% 304 

 7.20 6 6 43.20 2,246.40 1,872 97.00% 1,824 
Alaska Juneau Aeronautics, Inc. d/b/a SeaPort Airlines

Essential Air Service Proposal

Docket OST-1997-3005

Performance Summary

July, 2010 - June, 2011

McCook

MCK-DEN

Performance:

Rev Block Hours Scheduled 2,246.40 Completion % 97.50%

 Completed Block Hours 2,188.80

Rev Departures Scheduled 1,872 Completion % 97.50%

 Completed Departures 1,824

Rev Passengers PY 2009 Passengers 3,900 Forecasted Growth Rate 2.00%

 Total Passengers

 Average Segment Share 100.00%

 Segment Passengers 3,978 Available Seats 16,416

 Average Load Factor 24.23%

 Average Pax / Flight 2.2
Alaska Juneau Aeronautics, Inc. d/b/a SeaPort Airlines

Essential Air Service Proposal

Docket OST-1997-3005

Performance Summary

July, 2011 - June, 2012

McCook

MCK-DEN

Performance:

Rev Block Hours Scheduled 2,246.40 Completion % 97.50%

 Completed Block Hours 2,188.80

Rev Departures Scheduled 1,872 Completion % 97.50%

 Completed Departures 1,824

Rev Passengers Jul 2011 - Jun 2012 Est Pax 3,978 Forecasted Growth Rate 5.00%

 Total Passengers

 Average Segment Share 100.00%

 Segment Passengers 4,177 Available Seats 16,416

 Average Load Factor 25.44%

 Average Pax / Flight 2.3