TransportAzumah 

Essential Air Service Proposal 

McCook, NE (MCK) – Denver, CO (DEN) 

March 2010 
TransportAzumah Essential Air Service: McCook, NE to Denver, CO 

1.0 Executive Summary 

TransportAzumah proposes to provide air service from McCook, NE to Denver, CO. The 

McCook essential air service is currently flown by Great Lakes Aviation. This route will 

carry primarily connecting traffic to Denver for flights to other locations. It is expected 

that 15,000 passengers will use the service in its first year with two round trip flights per 

day seven days per week. 

McCook has the ability to service many more passengers than it is currently serving. 

However, most passengers do not use the current air service because it is not a cost 

effective way of accessing the national air transportation system. Flights are priced in a 

similar manner to flights that are designed to carry primarily origin and destination 

traffic, but the purpose of this flight is to be a feeder. Thus, the market currently does not 

respond to the air service currently provided. 

TransportAzumah will use the services of Charter Air Transport to fly this market. 

Charter Air Transport has already obtained commuter authority to fly scheduled services 

in other markets and is fully qualified to provide the flying in question. TransportAzumah 

will manage the service by providing schedules, fares, marketing, and other management 

tasks. It is expected that as regional capacity is pulled down nationally, the cost of flying 

this market will decrease for both Charter Air Transport and TransportAzumah. 
2.0 Company Summary 

TAZ Airways will offer airline grade service from day 1. This is achieved by 

subcontracting the flying to Part 121 carriers and using existing airline ground handling 

services whenever possible. Our company structure minimizes fixed costs and overhead 

in order to keep ticket prices affordable and competitive with other airlines. 

2.1 Company Structure & Ownership

TransportAzumah’s operating authority will be structured as a Part 380 Indirect Air 

Carrier. The president is Joel Anabilah-Azumah. Mr. Anabilah-Azumah has had 

experience in the transportation business for seven years. The company’s specialty is 

market planning and logistics. 

2.2 Start-up Summary

As part of the Essential Air Service program, the McCook-Denver route will be 

subsidized by the United States Department of Transportation. The service will be 

initiated using one Embraer EMB-120 aircraft seating 30 passengers in a 2+1 

configuration. 

The expected first year performance is provided below: 

Flights Per Week 14 

Subsidy $2,412,865.20

Passengers 15,000 

Cost Per Passenger $160.86 

Aircraft EMB-120 

Seats Per Flight 30 

Load Factor 70.81% 

2.3 Company Location & Facilities

TransportAzumah is headquartered in Brooklyn, NY. An on-site station manager will be 

provided in McCook to coordinate operations locally. We may consider hiring the station 

manager from the current service provider if we were to displace them. Service will be 

provided from the MCK and DEN airports. 
3.0 Services 

3.1 Service Description

TransportAzumah will provide a reasonably priced regional air service in the McCookDenver corridor. It is expected that the peak travel flow will be towards Denver in the 

morning and towards McCook in the afternoon. By providing a service into a major 

airport, we will provide McCook with the ability to access the national air transportation 

system in a timely fashion. 

3.2 Competitive Comparison

Our main competitor for this route will be Great Lakes Aviation and the automobile. 

Currently, Great Lakes operates more than half of the continental Essential Air Service 

network. The airline is known for having low operating costs and it has been operating 

essential air services since 1980. Due to the collapse of several regional airlines, Great 

Lakes has expanded its service area and volume of service provided. The aircraft of 

choice for this airline is the Beechcraft 1900D 19 passenger airliner. The automobile is 

always a fierce competitor in EAS markets because it has a more flexible schedule than a 

scheduled service. In addition, it can provide access to any desired hub or other 

competitive airport if time is not of the essence. 

TransportAzumah believes that it can grow the McCook – Denver market for several 

reasons. First, the primary purpose of this route is to feed connecting passengers and we 

have priced our fares so that this is feasible. Second, the lack of restrooms onboard the 

current air service unnerves potential customers. While most customers do not need to 

use the bathroom on a flight, the availability of such facilities provides them comfort that 

they can use it if needed. Lastly, TransportAzumah’s goal in the essential air service 

program is to increase traffic substantially so that the subsidies expended benefits more 

passengers. The program has come under intense scrutiny because a substantial number 

of flights operate with very small numbers of passengers. McCook’s average of 5.6 

enplanements per day indicates that the current service methodology does not work. 

The use of the Denver International Airport (DEN) as the hub access point will provide 

passengers easy access to the national air transportation system. Connecting passengers 

will have their choice of dozens of carriers that go to locations across the United States 

and the globe. Denver is currently a hub for three airlines of substantial size: Republic, 

Southwest, and United. 

Currently, air service at McCook is provided by a 19 passenger aircraft. 

TransportAzumah will use an Embraer EMB-120ER turboprop to provide service. 

Customers are used to this aircraft as United Express operator SkyWest Airlines also 

operates the type in numerous turboprop markets. In the current configuration, this 

aircraft seats 30 passengers and 29 seats will be sold. 
Electronic ticketing will be provided via the internet as well as over the phone. 

Customers will receive a receipt that will be scanned at the check in desk or gate. 

Ticketing will be straightforward and simple as trips are listed by date and time. 

3.3 Sales Literature

TransportAzumah is in the process of preparing market specific sales literature. Our 

focus in the McCook area will be on reintroducing the air service as an option to 

passengers that do not currently use it. It is estimated that most EAS markets only attract 

1-2% of the potential passengers in their catchment area, so the most important point to 

convey to the passengers is to check McCook first for air service. 

3.4 Fulfillment

TransportAzumah is expected to hire Charter Air Transport Inc. as our main direct air 

carrier. Charter Air Transport will provide Embraer EMB-120ER aircraft seating 30 

passengers. The contract will be an ACMI (aircraft, crew, maintenance, insurance) 

contract in order to minimize staffing requirements. Charter Air Transport currently flies 

four EMB-120 aircraft and several Hawker business jet for various clients and they have 

a good reputation in the airline industry. It is expected that our ground handling at Chico 

will be done by a fixed base operator. 

3.5 Technology

The technology used to provide our services will be state of the art, but simple. The 

Embraer EMB-120ER is a well known and reliable turboprop airliner. Passengers will 

find the amenities and comfort similar to or superior than the typical network carrier. 

We are considering the use of a global distribution system to distribute fares in this 

market. However, we would like to determine which carriers our customers transfer to 

most so that a platform that is complementary with that carrier’s ticketing system can be 

used. Initially, a simple web ticketing platform will be used to collect passenger fares. 

3.6 Future Services

Service on the McCook-Denver route will be provided by single class aircraft in a coach 

configuration. In the future, it is possible that larger aircraft could be added if demand 

exceeds projections. We would also evaluate the feasibility of an interline agreement with 

another carrier at Denver. 
4.0 Market Analysis Summary 

The McCook-Denver route is a good route for an essential air service carrier because the 

market is underdeveloped. With fares ranging from $99 30 days out to a $259 refundable 

fare, demand is being crushed on this route by fares that are out of line with the purpose 

of the service. Currently, only 76 seats per day are provided at McCook. The addition of 

TAZ Airways service will add 42 seats to the market each day. By providing 

substantially lower fares, the McCook-Denver route will experience a substantial increase 

of traffic in the market. 

A chart of the current market size is provided below: 

Catchment Area Analysis 

 

City / Town State Population

 

MCCOOK NE 7,994 

INDIANOLA NE 642 

BARTLEY NE 355 

CAMBRIDGE NE 1,041 

ARAPAHOE NE 1,028 

OXFORD NE 876 

STAMFORD NE 202 

DANBURY NE 127 

WILSONVILLE NE 118 

BEAVER CITY NE 641 

CULBERTSON NE 594 

TRENTON NE 507 

STRATTON NE 396 

MAX NE 

BENKELMAN NE 1,006 

WAUNETA NE 625 

IMPERIAL NE 1,982 

HAYES CENTER NE 240 

ELWOOD NE 761 

FARNAM NE 223 

MOOREFIELD NE 52 

MAYWOOD NE 331 

CURTIS NE 832 

STOCKVILLE NE 36 

DICKENS NE 

ELSIE NE 139 

WELLFLEET NE 76 

GRANT NE 1,225 

WALLACE NE 329 

MADRID NE 265 

ALMENA KS 469 
OBERLIN KS 1,994 

NORTON KS 3,012 

ATWOOD KS 1,279 

ST FRANCIS KS 1,497 

BIRD CITY KS 482 

 31,376 

Current Service Usage – McCook, NE 

Year Quarter Inbound 

Pax 

 Outbound 

Pax 

 Total 

2006 4 609 616 1,225 

2007 1 564 659 1,223 

2007 2 746 794 1,540 

2007 3 785 810 1,595 

5,583 Total 

2007 4 699 753 1,452 

2008 1 400 403 803 

2008 2 328 350 678 

2008 3 532 479 1,011 

3,944 Total 

2008 4 436 457 893 

2009 1 416 388 804 

2009 2 468 408 876 

2009 3 485 448 933 

3,506 Total 

Average daily enplanements – 5.6 passengers / day 

4.1 Market Segmentation

The McCook-Denver route has two distinct target markets and they are both attracted 

differently to this service. The business traveler will appreciate the ability to make a day 

trip to many locations and back as well as the reasonable walk up cost. In this market, 

walk up fares can reach $259 one way at times. Our walk up fare will be no higher than 

$59. The leisure traveler will be attracted to the service by the competitiveness of the 

fares with driving to and parking at another airport. 

4.2 Service Business Analysis
The model of an indirect air carrier provides substantial flexibility in comparison to the 

standard Part 121 model. First, Part 380 carriers do not have to report their loads to the 

federal government. It allows us to protect our ridership information from other carriers. 

Second, the burden of operational support of the planes (maintenance, crew scheduling 

etc.) falls on the shoulders of the direct air carrier. This allows our staffing to be minimal 

and the jobs we must fill require no special technical know how in most cases. Part 380 

rules also dictate that all passenger fares must be placed in escrow until the flight leaves. 

Although this creates an initial financial headache, our passengers can be confident in the 

fact that they are fully protected in case something happens that their flight cannot 

operate. 
5.0 Strategy & Implementation 

In order to increase boardings on this route, TransportAzumah will have to be very 

aggressive with regards to its marketing and pricing strategy. The marketing program is 

designed to get the information into the hands of prospective customers by a continuous 

onslaught of local advertising. Repetition is the key to brand awareness and we will make 

sure that our product information reaches our core market quickly. The pricing strategy is 

designed to minimize the USDOT subsidy per passenger and stimulating to the market. In 

particular, the lower walk up fare will allow businesses to travel on short notice at an 

affordable price. 

5.1 Marketing Strategy

The bulk of advertising for TransportAzumah will consist of inserts and advertising in 

newspapers. A repeated series of ads 1⁄4 page to 1⁄2 page in size will be run in local and 

regional newspapers to provide a steady stream of brand awareness. In addition, flyers 

would be distributed at major transportation centers used for airport access. Some limited 

additional marketing may be done through radio advertising, but the bulk of advertising 

would be in print. 

5.2 Sales Strategy

The fare structure for the McCook-Denver route is as follows: 

 Advanced Purchase: $29-49 

 Walkup Fare: $59 

 Average Fare Proposed By Current Carrier in prior bid: $126.78 

The TransportAzumah fee structure for the McCook-Denver market is as follows: 

Fee Online Call Center Airport 

Convenience Fee $0 $15 $0 

Priority Boarding Fee N/A N/A N/A 

1st Checked Bag $0 $0 $0 

2nd Checked Bag $15 $15 $35 

Oversized Bag Fee ... ... $25 

Overweight Bag Fee ... ... $1 per pound

Ticket Change Fee ... $25 $25 
Projected First Year Performance: 

 Total 

97% 

Completion 

Flights Per Week 14 

Weeks 52 

Total Flights 728 706 

Travel Time MCK-DEN 0.92 

Travel Time DEN-MCK 0.83 

Hours 637 618 

Passengers 15,000 

 

Flight Operations $1,730,092.00 

Departure Costs $282,464.00 

Per Passenger Costs $75,000.00 

Overhead $313,133.40 

Total Expenses $2,400,689.40 

Profit $120,034.47 

Financing Costs $492,141.33 

Total Compensation $3,012,865.20 

 

Revenue Per Passenger $40.00 

Total Revenue $600,000.00 

 

Subsidy $2,412,865.20 

 

Cost Per Passenger $160.86 

 

Aircraft EMB-120 

Seats Per Flight 30 

Total Seats 21,185 

Passengers 15,000 

Load Factor 70.81% 

Tickets will be sold over the phone and via the internet as well as at the airport. Initially, 

tickets would be sold through our website at http://www.transportazumah.com using a 

well-known credit card processing company. If demand warrants, the system will be 

upgraded to a GDS compatible platform. 
6.0 Service Schedule & Aircraft Information 

6.1 Proposed Schedule

Monday – Saturday 

Origin DpTime Dest ArTime FltDur Equipment Stops 

MCK 8:30 DEN 8:25 0:55 EM2 0 

MCK 16:00 DEN 15:55 0:55 EM2 0 

Origin DpTime Dest ArTime FltDur Equipment Stops 

DEN 13:30 MCK 15:20 0:50 EM2 0 

DEN 20:00 MCK 21:50 0:50 EM2 0 

Sunday 

Origin DpTime Dest ArTime FltDur Equipment Stops 

MCK 13:00 DEN 12:55 0:55 EM2 0 

MCK 16:00 DEN 15:55 0:55 EM2 0 

Origin DpTime Dest ArTime FltDur Equipment Stops 

DEN 13:30 MCK 15:20 0:50 EM2 0 

DEN 20:00 MCK 21:50 0:50 EM2 0 

6.2 Aircraft Information

Contact Information: 

Joel Anabilah-Azumah 

E-mail: jazumah@transportazumah.com

Phone: 866-641-4295