BEFORE THE

UNITED STATES DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Essential Air Service at

ALTOONA, PENNSYLVANIA DOT-OST-2002-11446

Under 49 U.S.C. §41731 et seq.

CITY LINK AIR, INC. (CLA) PROPOSAL TO PROVIDE SUBSIDIZED AIR SERVICE AT ALTOONA (AOO ), PENNSYLVANIA

Please address all correspondence to: City Link Air, Inc. Telephone: (866) 435-9252 Attn: Joshua G. Newsteder, CEO Fax: (888) 259-6008 11890 Hidden Hills Drive E-Mail: josh@citylinkair.com Jacksonville, FL 32225-1656

CLA submits this proposal to provide subsidized air service from Pennsylvania’s Pittsburgh International Airport (PIT) to the community of Altoona (AOO), Pennsylvania.

In compliance with Public Law 100-223, CLA proposes to operate these flights using pressurized, 19 passenger Beechcraft 1900 (BE-1900) turboprop airplanes. Although the BE-1900 is not equipped with an onboard lavatory it should be noted that the longest planned flight for this market is 40 minutes. CLA may initially operate under FAA scheduled charter rules (Part 135) as it continues to pursue full, Part 121

certification. If this is the case a similar aircraft will be used until full 121 certification is achieved.

With an average of 160 daily departures, PIT is the ideal hub to connect Altoona passengers to 37 non stops and hundreds of connecting opportunities worldwide. The convenience and proximity to Altoona enable CLA to meet connecting schedules without the problems endemic to other, super-saturated hubs. Specifically, there are no restrictions on slots and gates. Flow control into Pittsburgh is rarely a problem.

Planned non-stop service from AOO to PIT takes 40 minutes

This proposed service begins and ends locally. This provides the best opportunity to quickly fly to/from PIT while simultaneously refining robust connection opportunities.

Working closely with the Allegheny County Airport Authority (ACAA), CLA has arranged gate services closest to the center of all four concourses. This provides the shortest walking time for passengers to all connecting flights while minimizing bag transfer times.

Interlining agreements will provide passengers with a seamless travel experience. Additionally, CLA will pursue codeshare agreements with existing, legacy carriers for greater convenience.

Meeting early morning and late evening connection banks upholds the true spirit of the EAS program while providing these communities with short, reasonably priced service that maximizes connectivity.

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### City Link Air

Redefining Air Travel ®Reliability

The Beechcraft 1900 and 300/350 both have excellent records of dispatch reliability. However, should a quick replacement aircraft be required, CLA will have a pre-position spare aircraft located within the region.

Competitively priced, short trips will realize a more leisurely and un-rushed experience for Altoona passengers, ultimately resulting in lower overall costs and shorter travel times in many markets.

Customer Advocacy

Each EAS community served will have a dedicated CLA station manager whose primary job after safety will be customer advocacy. It is imperative that our single most important touch point with passengers is a full time employee that has the best interests of the community in mind.

This employee will be a locally recommended, community minded advocate that continuously engages all civic interests. This station manager will ensure CLA always provides the best possible air service.

Service Map for this Proposal

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# Essential Air Service Planned Aircraft

Beechcraft 1900D - Two Pilots 19 Seat, Two Engines, Pressurized Turboprop Proposal Speed: 230 mph (200 Knots) Top speed: 328 mph (285 Knots )
Max. Altitude: 25,000 Feet



### Cabin InteriorPage 4 140417-2 CLA EAS PIT AOO Beechcraft 300 / 350 - Two Pilots 9 Seat, Two Engines, Pressurized Turboprop Proposal Speed: 230 mph (200 Knots) Top speed: 328 mph (285 Knots )
Max. Altitude: 31 ,000 Feet 

# Essential Air Service

Alternate Aircraft

Cabin Interior Although City Link Air intends to provide this service as an FAA part 121 airline its current certification (FAA Part 135) prohibits using the 19 seat Beech 1900. Therefore, City Link Air may use Beechcraft’s 300/350 configured with nine seats (pictured here) until full FAA 121 certification is achieved.
The 300/350 aircraft performs with similar reliability, safety, and speed of the 1900 and will always be piloted by two fully qualified pilots

.Schedules

CLA’s schedules will be optimized to achieve the best connection opportunities in Pittsburgh . Planned weekday roundtrips to AOO are shown. One day of similar roundtrips would also be offered over the weekend, usually split between Saturday morning and Sunday evening.

Planned typical Monday-Saturday / Sunday Flight Schedule

From To Dep. Arr. Stops Price Altoona Pittsburgh 5:45 AM 6:25 AM Non-Stop $75.00 Altoona Pittsburgh 11:10 AM 11:50 AM Non-Stop “ Altoona Pittsburgh 4:35 PM 5:15 PM Non-Stop “ From To Dep. Arr. Stops Pittsburgh Altoona 10:00 AM 10:40 AM Non-Stop $75.00 Pittsburgh Altoona 3:25 PM 4:05 PM Non-Stop “ Pittsburgh Altoona 9:50 PM 10:31 PM Non-Stop “

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### Annual Financial & Operational Metric Summary

Aircraft Type Beechcraft 1900

Departures 1,878 Block Hours 1,254 O & D Passengers 13,146 Average Load Factor 78% (~7 Seats) Average One Way Fare $ 75.00 Statute Miles Flown 202,166 Revenue Passenger Miles (000) 1,415 Available Seat Miles (000) 1,819

Annual Revenue Gross Ticket Revenue $ 985,950 Fees (PFC, 911, FET, & SF) $ 346,068 Net Ticket Revenue $ 639,882 Annual Expenses Distribution (GDS, OTA, CC) $ 92,433 Fuel & Consumables $ 556,320 Personnel $ 836,775 Maint. & Maint. Reserves $ 444,324 Station Fees & Rents $ 268,771 Aircraft Rents $ 295,282 Marketing $ 80,000 Other Fixed and Variable Overhead $ 150,000 Total Annual Expenses $ 2,723,905

Profit (loss) $ (2,084,024) 5% Margin on Cost $ 136,195 Required EAS Subsidy $ 2,220,219 Required EAS Subsidy per Pax $ 169

Respectfully Submitted: April 17 , 2014
Joshua G. Newsteder

Chief Executive Officer City Link Air, Inc.

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