Before the United States Department of Transportation October 2, 2012

Proposal to Provide Essential Air Service at

EL CENTRO/IMPERIAL, CALIFORNIA

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

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## Proposal of SeaPort Airlines, Inc. to Provide

Essential Air Service at El Centro/Imperial , California

By Order 2012

- 8

- 18 , the Department requested proposals from carriers interested in providing

Essential Air Service (EAS) at Imperial /El Centro

, California no later than September 18, 2012

. By Memorandum and the request of SeaPort Airlines

, In c

., the Department extended the deadline for submission of proposals to October 2 , 2012. Pursuant to that Order, SeaPort

Airlines , Inc. respectfully submits this timely proposal to provide subsidized EAS at El

Centro /Imperial , CA (Imperial County Airport

- IPL ).

This proposal provides the communities of El Centro and Imperial three service pattern options, two of which offer flights to more than one hub airport, and all of which represent a greater than 100% increase in the number of departures over that currently offer ed by the incumbent carrier. The requeste d subsidy levels in the proposal s, duri ng year one, range from $1, 896,342 to $2, 683,157

.

Shortly after this proposal is docketed , SeaPort Airlines will contact the Interim Airport Manager at Imperial County Airport to schedule a presentation to the community that explain s our proposal in detail and to answer any questions. In the interim and t hroughout the carrier selection process, questions regarding this proposal should be directed to:

Timothy Sieber

Vice President

– Commercial SeaPort Airlines, Inc. 7505 NE Airport Way Portland, OR 97218 (971) 340

- 1716 tsieber@seaportair.comE l Centro/Imperial, CA: DOT

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October 2 , 2012 Page | 2 

# Description of Proposed Service

Company Overview

SeaPort Airlines , Inc. is a FAA certified scheduled airline with 30 years of experience in

commercial aviation

. The company is headquartered in Portland, Oregon and has additional operational bases in Memphis, Tennessee and Juneau, Alaska . A new operational base in

Southern C alifornia is planned for 2013. Our approximatel y 180 professionals operate a fleet of 14 aircraft on an average of 90 daily departures to 2 0 cities in nine states. 1

SeaPort’s business strategy is focused on providing efficient and reliable service to small and

rural communities , and stands in contrast to global airline s and their regional partners who no longer have a strategic desire

, or the economic cap ability

, to serve such communities. To serve these communities, SeaPort operates aircraft with operating costs and passenger capacity that

are aligned with a market’s true demand . This allows us to offer greater frequencies and choice of departure times tha t would not be possible using larger aircraft, and to set fares at a level that

are attractiv e to potential customers but do not unduly shift the true cost of air travel from the

customer to the EAS program . This is enveloped in attentive and personal service that, in many of our markets, has become commonly referred to as “The SeaPort Experience.”

Presently, SeaPort provides Essential Air Service to s ix commu nities: Pendleton, Oregon; El Dorado, Hot Springs, and Harrison, Arkansas; Salina, Kansas ; and Jackson, Tennessee , with service to Athens, GA scheduled to commence on November 1, 2012. In each case after being

selected to provide EAS , we have started service on time, on budget, and with fares at or below

those outlined in our proposal. This record contrast s with a number of airlines that submit EAS proposals with un reasonably low fares that are never r ealized by the travel ing public, that delay the start of service, or (in some cases) do not even launch service after being selected by the Department.



### A Track Record of Building Community Partnerships

More importantly, SeaPort Airlines prides itself on de veloping partnerships with each community

it serves as part of the EAS program . This includes participation in local events, donation of tickets, on

- going communication with our respective airport managers

, and regular community meetings. We believe this approach serves our own interests equally with those of our EAS

communit ies by fostering long

- term, stable relationships that result in increased ridership and, eventually, reduced subsidy requirements.

W e also note that , except in Alaska

, at every one of our EAS communities

, SeaPort Airlines represented the first time that service was offered with single

- engine aircraft. Any initial trepidation about aircraft size that may have existed , however, quickly dissipated as each community experienced the higher frequenc ies that can only be economically provided with

smaller aircraft. C ombined with affordable fares and highly

- pers onal service

, this has resulted in SeaPort Airlines enjoying strong community support in each of our EAS communit ies.

1 Includ es Athens, GA scheduled to begin on November 1, 2012.E l Centro/Imperial, CA: DOT

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October 2 , 2012 Page | 3 This is underscored by the fact that in every one of our EAS communities in the Lower 48 where

SeaPort has submitted a proposal at the end of the initial contract term, we have always been reselected for subsequent EAS renewal. This includes the recent re selection of SeaPort at Salina, Kansas for a four

- year contract (rather than the standard two

- year contract) based on overwhelmingly positive support from the community . Additionally, SeaPort was re select ed at Pendleton, Oregon d uring the last EAS cycle over a competing proposal from SkyWest with the

same 30

- passenger aircraft currently used at IPL

.

We encourage the communities of Imperial and E l Centro to contact the airport managers in any of our EAS communities to discuss the responsive, affordable, and reliable air service that we provide

. Additional evide nce of our ability to develop strong partnership s and provide El

Centro /Imperial with reliable, customer

- focused air service is demonstrated through community

and customer co mments that are provided later in this document.



### Interline Connections & GDS

All SeaPort Airlines flights are displayed in the major global distribution systems, making flights available for sale via travel agents and all primary online travel portals and meta

- searchers such as Orbitz, Travelocity, Expedia, Kayak, Hipmunk, and Cheap O Air.

Since 2009, SeaPort has maintained an interline ticketing agreement with US Airways . A new

interli ne agreement, including e

- ticketing (IET) and thru baggage check

- in

, with Alaska Airlines

is anticipated to be effective no later than October 31, 2012

. 2 This agreement will facilitate single

- ticket travel on itineraries that include flights of both SeaPort Airlines and Alaska Airlines

.

SeaPort recognizes the value to travelers of interline agreements and is working to secure additional agreements so our customers may purchase single

- ticket itineraries between their local airport and even more destinations around the world. We anticipate reaching at least one
more agreement by the end of 2012.

We would also point out, however that at each of the hubs we are proposing to serve from Imperial County Airport the airline with the most flights is Southwest Airlines. This carrier does

not have interline agreements with any other airline. However, our experience in other EAS

markets serving hubs where Southwest has a significant presence (i.e., Nashville, Kansas City, and Portland) point to that carrier’s low

- fare model attract ing numerous trans fer passengers utilizing “end

- to

- end” ticketing.



### Aircraft

SeaPort is proposing to serve Imperial County Airport with a choice between two aircraft types,

both of which are described below:

Cessna Caravan

SeaPort’ s recommended option is the modern and efficient Cessna Caravan turboprop.

P roduced in the USA, the “ Caravan ” was originally designed in the 1980’s to replace an aging

2 Testing of message switching between both carriers respective reservation system ’ s is complete with agreement of certain logistical details and execution of legal documents remaining.E l Centro/Imperial, CA: DOT

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October 2 , 2012 Page | 4 fleet of piston

- powered aircraft, such as the De Havilland Otter and Piper Chieftain. To date,

over 2,000 Caravans have been built which have logged a total of over 12.5 million flight hours.

The large cargo pod on the Caravan accommodates considerably more baggage than older piston twins (i.e., Piper Chieftain and Cessna 402) are capable of, and allows for easier segregation of passenger s and baggage for security purposes. 3

As noted earlier SeaPort operates single

- engine aircraft and enjoys strong community support

in all of the EAS markets that we serve

. This is because on a daily basis we demonstrate that the Cessna Caravan is the ideal platform for safe and reliable air transportation with higher frequencies than would be economically possible with larger aircraft . Our experience in other

markets gives us confidence that residents of Imperi al and El Centro will quickly appreciate the comfort and reliability of the Cessna Caravan, but offer the following points for consideration by

which our proposal is evaluated :

 The argument that single

- engine aircraft are less safe than multi

- engines is based on the presumption of engine failure. Failure of modern turbine engines is extremely rare

, and even

ra r e r that engine failure is the primary cause of an accident or incident.

 Multi

- engine aircraft experience asymmetric thrust and a loss of climb performance of up to 80%. In contrast, single

- engine aircraft don’t experience asymmetric thrust, and they typically have higher glide ratios and can land at slower speeds.

 As reliability has improved over the last 75 years, airlines have s pecified fewer engines on new aircraft designs

– “more is better” no longer applies.

 Newer, modern technology single

- engine turboprops aircraft provide a better customer experience than 35 year old piston

- powered twin engine aircraft.

3 The cargo pod on the Cessna Caravan has a maximum capacity of 111 cu bic feet and 1,090 pounds. In comparison, the Piper Chieftain has a maximum capacity of 65 cubic feet and 700 pounds in its nose compartment and two wing lockers.E l Centro/Imperial, CA: DOT

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October 2 , 2012 Page | 5 Piper Chieftain

49 U.S.C. 41732(b)(5) entitles communities to EAS service with twin

- engine aircraft, however

communities can waive their right to twin

- engine aircraft. SeaPort Airlines presently provides service in all of our EAS communities with single engine aircraft an d, as noted above, every one of our EAS communities in the Lower 48 has selected SeaPort Airlines to continue serving their market for an additional contract period. Notwithstanding our belief that the Cessna Caravan represents the best platform for freque nt, economical and reliable air service at Imperial County Airport

, we are including in this proposal the option of service with twin

- engine Piper Chieftain s

.

The Chieftain is a stretched version of the Pi per Navajo that operates with two pilot s and 8

pas sengers. The aircraft has two Lycoming piston engines and baggage storage in a nose compartment and wing lockers. 4 The aircraft offers adequate range with a full load of passengers to operate the service pattern offered in this proposal

.

Over 1,800 Chieftains were built between 1972 and 1984 by Piper Aircraft. Analysis of aircraft presently offered for sale indicate s that if the option of service with Chieftains is selected, we will not have any difficulty finding a suitable aircraft to serve El Centro /Imperial

.



### Schedules & Hub Options

In Order 2012

- 8

- 18, the Department states: “With specific respect to El Centro, we expect proposals consisting of two round trips per day (13 a week) if 30

- seat or larger equipment are proposed; three (18 a week) or four (24 a week) round trips per day with 19

- seat aircraft; and more frequencies wi

th smaller aircraft.”

In response to this request SeaPort is propos ing the three following different service options for

consideration :

 Option #1: 2 9 weekly roundtrips to San Diego

 Option #2: 1 7 weekly roundtrips to San Diego & 12 weekly roundtrips to Phoenix

 Option #3: 1 7 weekly roundtrips to San Diego & 12 weekly roundtrips to Burbank/Los Angeles

Illustrative schedules for each option are provided on the next page . Final schedules , however,

would be established in consultation with the communit y and take into consideration connecting

schedules at that time with those airlines which SeaPort has interline agreements

.

4 See footnote 3

.E l Centro/Imperial, CA: DOT

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October 2 , 2012 Page | 6 In each of the options, SeaPort will base an aircraft at Imperial County Airport that will be supported by an operational spare

. Flight crews and customer service agents will be based at IPL along w ith a maintenance support

.

Unlike the proposal that SeaPort submitted to service El Centro /Imperial in 2010, service in each of the options would be in main terminals with all passenger s and baggage undergoing full TSA screening. This is necessary to facilitate connections with interline partners.

Each of the service pattern options is discussed briefly on the following pages.E l Centro/Imperial, CA: DOT

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October 2 , 2012 Page | 7 Option #1: 29 weekly roundtrips to San Diego

San Diego International Airport ( SAN ) provides convenient access to the San Diego metropolitan area, including downtown San Diego, San Diego Cruise Ship Terminal , NAS North Island, and MCAS Miramar. With Naval Air Facility El Centro located near Imperial County Airp ort, nonstop service to SAN is expected to be valuable to the military personnel for local travel to San Diego and connections to/from points beyond

. 5

San Diego International Airport consistently ranks high in surveys conducted by Airports Council

Interna tional (ACI) that capture passenger appraisal of service factors, from check

- in through to departure at the gate. Th is airport has committed to provide marketing support if nonstop service between San Diego and El Centro /Imperial is initiated and that airport’s Director of Air Service Development will be submitting a letter stating such to the Docket under separate cover.

Th is airport is served by 17 major airline s (including affiliated regional partners) offering nonstop

service to over 50 desti nations on an average of 250 daily de partures. As shown on the map

below , this includes domestic service as well as service to Canada, M exico, and the United Kingdom. Japan Airlines will begin nonstop service to Tokyo, Japan (Narita Airport) in

December 20 12 using Boeing 787 aircraft.



## San Diego International Airport Nonstop Service

– October 2012

5 Excess baggage fees for military personnel traveling on orders or leave is ac cepted without charge on a space available basis for travel on SeaPort Airlines. If such baggage does not travel on the same flight as a military

passenge r

, it is the responsibil ity of the passenger to retrieve his/her excess baggage from the airport. When applicable, e xcess baggage charges of interline connecting airlines still apply.E l Centro/Imperial, CA: DOT

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October 2 , 2012 Page | 8 As noted, SeaPort Airlines anti c i pates implement ing an interline e

- ticketing and baggage agreement with Alaska Airlines becom es effective no later than October 31, 2012

. Alaska

Airlines operates an average of 17 daily departures from San Diego, including nonstop service to Fresno, Monterey, and Santa Rosa, CA; Honolulu and Kahului, HI; Orlando, FL; Portland, OR; Seattle/Tacoma, WA; and Puerto Vallarta and San Jose Cabo, Mexico.

Option #2: 17 weekly roundtrips to San Diego + 12 weekly roundtrips to Phoenix

This option provides an average of three daily roundtrips to San Diego and two daily roundtrips

to Phoenix , with reduced frequency on weekends.

The addition of a Phoenix nonstop offer s residents of and visitors to the Imperial Valley access to the hub operations of US Airways and Southwest at Sky Harbor International Airport. US Airways operates an average of 250 departures each day to 73 nonstop destinations from Phoenix, while Southwest offers 163 average daily departures to 47 nonstop destinations. 6 The intense level of competition between these two carriers results in Phoenix consistently having among the lowest fares of any city in the country

.

Other airlines serving Phoenix Sky Harbor Interna tiona l Airport in Aeromexico, AirTran Airways, Alaska Airlines, American Airlines, British Airways, Delta Air Lines, Frontier Airlines, Great Lakes Airlines, Hawaiian Airways, jetBlue Airways, United Air lines, and WestJet Airlines. These carriers provide a combined average of 89 daily departures to destinations ranging from Hawaii to Great Britain, and Mexico City to Calgary.

Option #3: 17 weekly roundtrips to San Diego + 12 weekly roundtrips t o B u rbank

This option provides the connecting opportunities afforded in option #1 at S an Diego along with

convenient access to the Los Angeles metro area via Burbank Bob Hope Airport (BUR).

Bob Hope Airport is 30 minutes to downtown Los Angeles compared to 40 min utes from Los Angeles International Airport, and is the closest airport to many of the most popular LA destinations, including Universal Studios, Warner Brothers Studios, Staples Center, Rose Bowl Stadium, Dodger Stadium, Kodak Theater, Getty Center, Santa Monica, Griffith Park, Hollywood Bowl, and The Grove.

The airport also offers travelers the convenience of multi

- model transportation. Ten Amtrak

trains and 29 Metrolink trains serve the airport’s train station daily, providing access to

Downtown Burban k, Glendale and Union Station in Downtown Los Angeles. In addition to train service, the airport offers free shuttle service to the Downtown Burbank Station, where connections can be made with the Santa Clarita Line, and to the North Hollywood Red Line

Sta tion wh ich Red Line provides easy access to Hollywood and Downtown Los Angeles.

As for connections, Bob Hope Airport offers an average of 75 nonstop flights daily on Alaska

Airlines , Delta Airlines , jetBlue Airways , Southwes t Airlines , United Airlines

, and US Airways to West Coast cities, mid

- continent hubs and New York City

. Among the connection opportunities are multiple frequencies to the capitol in Sacramento on Southwest Airlines. A map of all
nonstop destinations from Burbank is provided on the nex t page.

6 SOURCE: Diio, October 1, 2012E l Centro/Imperial, CA: DOT

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October 2 , 2012 Page | 9 

## Burbank Bob Hope Airport Nonstop Service

– September 2012

Burbank Bob Hope Airport offers a convenient travel experience for connecting passengers, particularly in comparison to LAX ’s complexity

. For instance, connecting flights at BUR are in

one terminal compared to the multip le terminals at LAX. For travel l ers departing BUR, it is a short walk from the parking shuttle to short security lines and onto the aircraft. For arriving

travel l ers, there is curb

- side pick

- up, convenient access to renta l cars, the aforementioned public transit options, quick parking shuttles, and freeways located less than a mile away.

Burbank Bob Hope Airport has recently implemented a new air service development program

and has indica ted they will apply those resources to support development of IPL

- BUR service if SeaPort is selected to provide EAS at Imperial County Airport. Please see attached letter dated October 1, 2012 and submitted by Burbank

- Glendale

- Pasadena Airport Authority in support of our proposal.



### Fare Structure

Throughout its route system, SeaPort Airli nes offers a range of fares all of which are priced on a

one

- way basis. The highest price point (branded as “FullFlex”) provides a customer with total flexibility to change travel plans without in curring any change fee or, if d esired, receive a total

refund. The lowest price point (branded as “NoFlex”) is best suited for customers who are certain about their travel plans

, requires an advance purchase of 21

- days, is non

- refundable, and does not perm it any changes from the original booked itinerary. In between is a range of fares (“ Free2Flex” ” and “Flex4Fee”) that provides a choice of price

- points based largely on how certain a customer is that their travel plans will not change. Except for the two hi ghest price points, fares are also subject to capacity controls meaning that the farther in advance a reservation is made, the more likely a customer is to get a lower fare.E l Centro/Imperial, CA: DOT

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October 2 , 2012 Page | 10 This strategy allows SeaPort to set price points in a manner that makes our serv ice attractive to virtually all segments of the market who might utilize air service at Imperial County Airport. This, combined with reliable service, is effective in maintaining the 10 enplanement s per day necessary for continued participation in the EAS program.

The table below summarizes the range of proposed ticket prices in the Imperial/El Centro market, as of the date of this proposal and after expiration of introductory fares, along with the rules and restrictions applicable to each price point.



## SeaPort Airlines Illustrative Fares Imperial/El Centro, California (IPL)

NOTE: Listed price points include Federal Excise Tax , segments fee

, and 9/11 security fee

From Imperial County Airport, SeaPort Airlines projects an average fare of $82.66 to/from Burbank, $95.70 to/from Phoenix, and $58.88 to/from San Diego. Net of taxes and fees, per

passenger revenue and the basis for calculation of subsidy requirements, is projected to be $49.10 to/from San Diego, $83.35 to/from Phoenix, and $ 71.22 to/fr om Burbank (Los Angeles)

.

During the first 30 days of service, SeaPort Airlines would offer an introductory fare on every seat and every flight at Imperial of $39 to/from San Diego and Burbank , or $59 to/from Phoenix (including all taxes and fees).



### Mar keting & Community Relations

In this proposal, SeaPort Airlines has allocated $50,000 per year for marketing and sales in Imperial and El Centro. If selected to provide EAS, we will employ a comprehensive mix of marketing and public relations strategies to introduce our brand to the community and increase enplanements at El Centro/Imperial

.

In addition to traditional advertising in each community, including a mix of print and radio, key strategies that we will employ include:

 City Ticket Offices & Spanish Speaking Call Center : S eaPort’s plan to increase awareness and support for air service at Imperial County Airport include s establishing a city

ticket office in a central location . Borrowing from the success of such offices by other regional airlin es in EAS markets , we believe that this will increase visibility of the airport and air service, create an additional opportunity to provide the highly

- personalized customer service on which we have built our reputation, and reinvest in the local communiti es. With our growing presence in regions that have large Hispanic populations (i.e., Texas, CentralE l Centro/Imperial, CA: DOT

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October 2 , 2012 Page | 11 Washington, and soon Southern California) SeaPort Airlines intends to route Spanish

speaking reservation telephone lines to city ticket offices and , if sele cted to provide EAS at Imperial County Airport, this market will be the first where this strategy will be implement ed

. This will result in the creation of additional jobs beyond flight crews and customer service agents based at Imperial County Airport.

 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’ communit y Easter 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 a s a fundraising tool (i.e., raffles, silent auctions, etc.).

 Social Media Strategy: Since 2010, SeaPort Airlines has managed a successful social media campaign that has allowed the Company to dynamically engage its customer base in

a two

- way conversation through sites such as Facebook, Twitter, and 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 both Imperial and El Centro. Our approach to budgeting for marketing is based on the philosophy that budgets can be

effectivel y leveraged with “new media” such as social networking, blogs, opt

- in email, etc. that can engage with customers on a more personal level.

 FlyerFlex Customer Rewards: SeaPort offers a customer loyalty program called

“ FlyerFlex

.” This program provides customers with a variety of benefits including free flights, service charge waivers, and bonus points. SeaPort will be unveil ing major enhancements to

our FlyerFlex program the fourth quarter of 2012, include a wider range of trave l award options, ability for customers to check balances and redeem awards online , and access to security checkpoint express lanes for elite frequent flyers

. 7

 Value Accounts: SeaPort offers Corporate Value Accounts that encourage businesses to make a long

- term investment in local air service by offering a variety of benefits, such as waivers to change fees and savings of as much as 15% off published fares. Unlike corporate travel programs of major airlines that typically prevent small businesses from

reali zing meaningful benefits, companies of virtually any size (and any employee of those companies) can realize real savings and benefits from SeaPort’s Value Account program.

7 As interline agreements are added

, SeaPort hopes to also offer credit accrual in the mileage programs of major

airline s.E l Centro/Imperial, CA: DOT

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October 2 , 2012 Page | 12 

# Community & Customer Feedback

To this point in the proposal

, S eaPort Airlines has outlined why it believes that it is well positioned to provide El Centro /Imperial with reliable and reaso nably priced air transportation

. The strongest proof of our ability to deliver what we promise is the accolades we receive from

both our customers and EAS community partners. Below is just a small sample of the

comments that we have received :

Our Essential Air Service 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

. 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 servi ce we need and desire.”

− Larry Dalrymple Airport Manager Pendleton Regional Airport

“I understand the importance of having dependable, reliable air service with an affordable cost. Not only will SeaPort Airlines meet these needs, but excel by providing great customer service, a high level of community involvement, and an eagerness to become a community partner”.

− Luci Larson Former Mayor & Owner of

Action Travel Salina, KS

“South Arkansas Regional Airport and the entire South

- central Arkansas region suffered from the loss of air service previously provided by Mesa Airlines in the Spring of 2008. Unreliable service and a poor schedule were already negatively impacting enplan ements before Mesa pulled out, but at that point, the nearest option for air service of any kind was almost a two hour drive away. After sorting through applications from many different interested carriers, the El Dorado Airport Commission, along with El Dorado’s Mayor, chose SeaPort to restore air service to South Arkansas. This was the beginning of a great partnership between SeaPort and our local community.E l Centro/Imperial, CA: DOT

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October 2 , 2012 Page | 13 “Working with SeaPort has been nothing but a pleasure from the bottom to the top of their

org anization, and their commitment to excellence shines through the glowing comments that I hear from people who fly with them. In addition to hearing comments from others, I have flown SeaPort on several occasions, and have come away from the experience thi nking ‘This is how

all air service should be.”

− Josh Zylks Airport Manager South Arkansas Regional Airport (Goodwin Field)

Our Customers

“My husband and I recently had to make a fast trip to Dallas for the funeral of a dear friend. I was not interested in making that drive over a fast weekend. Then I remembered that SeaPort had recently started flights between Hot Springs and Dallas. I call ed SeaPort, Jim and Bob were so quick to get us booked, last minute so we could fly down and attend the funeral and visit with family and friends that we don't get to see very often.

Everyone was so friendly, helpful and professional. It was a dream trip , even to attend a funeral. The pilot going down was so kind. When he found out that my husband had been a ball turret gunner in WWII, he gave him a set of headphones so he could listen to the communication between the pilots and the air traffic controller s. To say the least, my husband was impressed. It was such a blessing to have been taken care of in such a kind and professional manner, especially under the circumstances of our trip. Thank you, Jim, Bob, Chris, Doug, and Michael.”

− Catherine Martin ( Hot Springs to Dallas)

“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.

“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 ab out 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.

“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 ( Dallas to Memphis)E l Centro/Imperial, CA: DOT

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October 2 , 2012 Page | 14 “Had a great flight last Friday from Hot Springs AR to Dallas Love field...had Jeremy (The Flying Hawaiian) & Colin...Best flight ever! Highly recommend this airline....Great & friendly service! I will definitely fly this airline again!”

− Susan Gower (Hot Springs to Dallas)

“Flew with you guys from Wenatchee to Portland and back. Awesome trip, had a great flight.

TO NS more f

un than a bigger plane and a lot less hassle. Will be making the same trip again

this fall! Thanks a bun ch for the awesome service here .”

− Dan Brown ( Wenatchee to Portland)

“ Thanks for the great flight from North Bend to Portland. Super friendly people and great service! Thank you.”

Nicole Dunlop Katsikis (North Bend/Coos Bay to Portland)

“I cannot say enough wonderful things about my experience with your company. My son, who is 7, flew for the first time as an unaccompanied minor. Let’s just say that my son and I were very

nervous.

On arrival to Kansas City I was welcomed with front row parking and an employee that was welcoming and reassuring. When his plane landed the pilot, Demetrius came and talked to me and my son for twenty minutes about safety and just reassuring me. He then allowed me to walk my son to the plane and see him off. D emetrius started buckling my son into his seat and my son started to cry, I could see him reassuring him that everything was going to be ok. All of your employees were wonderful and were conscious of safety and the well

- fare of my son. My son’s flights fro m Kansas City to Memphis were wonderful and because of the extra attention he feels comfortable and unafraid of flying by himself.

You have made me a lifelong customer. My son will be flying at least once a year to see his Grandparent. I have told all my friends, family and co

- workers about your company and how if they have an opportunity they should fly with SeaPort. Thank You again for making a nervous

mother and a scared child feel comfortable.”

− Misty Strayhorn (Kansas City to Memphis)E l Centro/Imperial, CA: DOT

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October 2 , 2012 Page | 15 

# Subsidy Req uest s & Supporting Calculations

The following pages contain the service proposals of SeaPort Airlines to provide essential air

servi ce at El Centro /Imperial , California

. The level of requested subsidy, by airplane type, is

summarized on the table below.



## Imperial/El Centro, CA

Summary of Service Proposal Options b y Aircraft Type

Term Option

Each proposal is presented on the basis of annual subsidy requirement for each year over a two year term. Notwithstanding the risk of rising costs in subsequent years (particularly related to fuel costs) that could possibly outstrip traffic growth and our ability to respond with reasonable fare increases, SeaPort is offering the Department and the community the option to contract at

the second year subsidy level for each year of the four

- year period. We believe this provides the Imperial/El Centro with the assurance of stable air service for an extended period and reduces the administrative burden on both the Department and ourselves.

SeaPort Airlines, Inc. appreciates the opportunity to submit this proposal and welcome s any questions or comments from the communities and/or the Department.

Respectfully submitted on behalf of SeaPort Airlines, Inc.

Timothy Sieber

Vice President

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LETTER OF SUPPORT FROM

BURBANK

- GLENDALE

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