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-OST-2008-0299

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, Inc., 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 offered by the incumbent carrier. 

The requested subsidy levels in the proposals, during 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 explains our 

proposal in detail and to answer any questions. In the interim and throughout 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.com
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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 California is planned for 2013. Our approximately 180 professionals operate a fleet of 

14 aircraft on an average of 90 daily departures to 20 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 airlines and their regional partners who no 

longer have a strategic desire, or the economic capability, 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 that would not be possible using larger aircraft, and to set fares at a level that 

are attractive 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 six communities: 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 contrasts with a number of airlines that submit EAS 

proposals with unreasonably low fares that are never realized by the traveling 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 developing 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 

communities by fostering long-term, stable relationships that result in increased ridership and, 

eventually, reduced subsidy requirements.

We 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 frequencies that can only be economically provided with 

smaller aircraft. Combined with affordable fares and highly-personal service, this has resulted in 

SeaPort Airlines enjoying strong community support in each of our EAS communities. 

 

1

Includes Athens, GA scheduled to begin on November 1, 2012.
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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 reselection 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 reselected at 

Pendleton, Oregon during 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 El 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 evidence of our ability to develop strong partnerships and provide El 

Centro/Imperial with reliable, customer-focused air service is demonstrated through community 

and customer comments 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 CheapOAir. 

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

interline 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 attracting numerous transfer 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. 

Produced 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. 
El Centro/Imperial, CA: DOT-OST-2008-0299

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 passengers 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 Imperial 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 

rarer 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 specified 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 cubic 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.
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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 and, 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 frequent, economical and reliable air service at Imperial County 

Airport, we are including in this proposal the option of service with twin-engine Piper Chieftains.

The Chieftain is a stretched version of the Piper Navajo that operates with two pilots and 8

passengers. 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 indicates 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 with smaller aircraft.” 

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

consideration:

 Option #1: 29 weekly roundtrips to San Diego

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

 Option #3: 17 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 community and take into consideration connecting 

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

 

4

See footnote 3.
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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 with 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 passengers 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.

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

6:30am 7:15am ExSun 0 8:15am 9:00am ExSun 0

9:45am 10:30am ExSun 0 11:00am 11:45am ExSun 0

12:30pm 1:15pm ExSatSun 0 1:45pm 2:30pm ExSatSun 0

3:00pm 3:15pm ExSat 0 3:45pm 4:30pm ExSat 0

5:15pm 6:00pm ExSat 0 6:45pm 7:30pm ExSat 0

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

9:00am 10:35am ExSun 0 11:05am 12:40pm ExSun 0

3:45pm 4:30pm ExSat 0 5:00pm 6:35pm ExSat 0

6:20am 7:05am ExSun 0 7:45am 8:30am ExSun 0

1:15pm 2:00pm ExSatSun 0 2:30pm 3:15pm ExSatSun 0

7:00pm 7:45pm ExSat 0 8:15pm 9:00pm ExSat 0

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

6:00am 7:15am ExSun 0 7:45am 9:00am ExSun 0

3:00pm 4:15pm ExSat 0 4:45pm 6:00pm ExSat 0

9:30am 10:15am ExSun 0 10:45am 11:30am ExSun 0

12:30pm 1:15pm ExSatSun 0 1:45pm 2:30pm ExSatSun 0

6:30pm 7:15pm ExSat 0 7:45pm 8:30pm ExSat 0

Illustrative Schedule Pattern

Option #1

SeaPort Airlines, Inc.

Imperial/El Centro to San Diego San Diego to Imperial/El Centro

29 Weekly RTs to San Diego (SAN)

Imperial/El Centro to Phoenix Phoenix to Imperial/El Centro

Option #2

17 Weekly RTs to San Diego (SAN) + 12 Weekly RTs to Phoenix (PHX)

Imperial/El Centro to San Diego

Imperial/El Centro to San Diego San Diego to Imperial/El Centro

San Diego to Imperial/El Centro

Option #3

17 Weekly RTs to San Diego (SAN) + 12 Weekly RTs to Burbank (BUR)

Imperial/El Centro to Burbank/Los Angeles Burbank/Los Angeles to Imperial/El Centro
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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 

Airport, 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 

International (ACI) that capture passenger appraisal of service factors, from check-in through to 

departure at the gate. This 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. 

This airport is served by 17 major airlines (including affiliated regional partners) offering nonstop 

service to over 50 destinations on an average of 250 daily departures. As shown on the map

below, this includes domestic service as well as service to Canada, Mexico, and the United 

Kingdom. Japan Airlines will begin nonstop service to Tokyo, Japan (Narita Airport) in 

December 2012 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 accepted 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 

passenger, it is the responsibility of the passenger to retrieve his/her excess baggage from the airport. When 

applicable, excess baggage charges of interline connecting airlines still apply.
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As noted, SeaPort Airlines anticipates implementing an interline e-ticketing and baggage 

agreement with Alaska Airlines becomes 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 offers 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 International Airport in Aeromexico, AirTran Airways, 

Alaska Airlines, American Airlines, British Airways, Delta Air Lines, Frontier Airlines, Great 

Lakes Airlines, Hawaiian Airways, jetBlue Airways, United Airlines, 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 to Burbank

This option provides the connecting opportunities afforded in option #1 at San 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 minutes 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 Burbank, 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 

Station which 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, Southwest 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 next page.

 

6

SOURCE: Diio, October 1, 2012 
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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 multiple terminals at LAX. For travellers departing BUR, it is a 

short walk from the parking shuttle to short security lines and onto the aircraft. For arriving 

travellers, there is curb-side pick-up, convenient access to rental 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 indicated 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 Airlines 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 incurring any change fee or, if desired, 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 permit 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 highest 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. 
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October 2, 2012 Page | 10

This strategy allows SeaPort to set price points in a manner that makes our service 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 enplanements 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/from 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). 

Marketing & 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: SeaPort’s plan to increase 

awareness and support for air service at Imperial County Airport includes establishing a city 

ticket office in a central location. Borrowing from the success of such offices by other 

regional airlines 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 communities. With

our growing presence in regions that have large Hispanic populations (i.e., Texas, Central 

Summary of Fare Rules FullFlex Free2Flex NoFlex

Advance Purchase - # Days 0 3 3 7 14 21

Refundable Yes No No No No No

Change Fee $0 $0 $50 $50 $50 No Chg

Fare Code YR B3F M3L H7L Q14L L21X

FlyerFlex Loyalty Program Credit 200% 150% 100% 100% 100% 0%

Imperial/El Centro to: FullFlex Free2Flex NoFlex

Burbank/Los Angeles (BUR) $139 $109 $89 $79 $69 $49

Phoenix (PHX) $149 $129 $109 $89 $79 $59

San Diego (SAN) $119 $99 $79 $69 $59 $39

Flex4Fee

Flex4Fee
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Washington, and soon Southern California) SeaPort Airlines intends to route Spanishspeaking reservation telephone lines to city ticket offices and, if selected to provide EAS at 

Imperial County Airport, this market will be the first where this strategy will be implemented.

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’ community 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 as 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 

effectively 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 unveiling major enhancements to 

our FlyerFlex program the fourth quarter of 2012, include a wider range of travel 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 

realizing 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 

airlines.
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October 2, 2012 Page | 12

Community & Customer Feedback 

To this point in the proposal, SeaPort Airlines has outlined why it believes that it is well 

positioned to provide El Centro/Imperial with reliable and reasonably 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 service 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 enplanements 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. 
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“Working with SeaPort has been nothing but a pleasure from the bottom to the top of their 

organization, 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 thinking ‘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 called 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 controllers. 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 about 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)
El Centro/Imperial, CA: DOT-OST-2008-0299

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. 

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

this fall! Thanks a bunch 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. Demetrius 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 from 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)
El Centro/Imperial, CA: DOT-OST-2008-0299

October 2, 2012 Page | 15

Subsidy Requests & Supporting Calculations

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

service 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 by 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 welcomes any 

questions or comments from the communities and/or the Department.

Respectfully submitted on behalf of 

SeaPort Airlines, Inc.

Timothy Sieber

Vice President – Commercial

October 2, 2012

Cessna Chieftain Cessna Chieftain Cessna Chieftain

Year 1 $1,896,342 $1,989,187 $2,395,584 $2,683,157 $2,156,275 $2,364,175

Year 2 $1,991,159 $2,088,647 $2,515,363 $2,817,315 $2,264,089 $2,482,384

Total $3,887,501 $4,077,834 $4,910,947 $5,500,472 $4,420,364 $4,846,559

Option #1 Option #2 Option #3

29 RTs to SAN 17 RTs to SAN + 12 RTs to PHX 17 RTs to SAN + 12 RTs to BUR
El Centro/Imperial, CA: DOT-OST-2008-0299

October 2, 2012 Page | 16 Year 1 Year 2

Operating Projections

Average Sector Length (sm) 94 94

Scheduled Departures 3,016 3,016

Scheduled Block Hours 2,262.0 2,262.0

Projected Completion Factor 99.0% 99.0%

Projected Completed Departures 2,986 2,986

Projected Completed Block Hours 2,239.4 2,239.4

Passenger Projections

Projected Passengers 11,999 12,359

Passengers per Departure 4.0 4.1

Projected Average Fare $49.10 $50.08

Revenue Passenger Miles (RPMs) 1,127,906 1,161,743

Available Seat Miles (ASMs) 2,526,021 2,526,021

Projected Load Factor 44.7% 46.0%

Financial Projections

Revenues

Passenger Ticket Revenues $589,151 $618,962

Ancillary Revenues $11,783 $12,379

Total $600,934 $631,341

Expenses

Flight Operations $192,270 $201,884

Aircraft Ownership/Lease $456,000 $456,000

Fuel & Oil $567,988 $596,388

Sales & Marketing $50,000 $50,000

Traffic Servicing $308,208 $323,619

Insurance $40,716 $42,752

Maintenance $452,955 $475,602

Sub-Total - Direct $2,068,137 $2,171,544

Indirect $310,221 $325,732

Total Expenses $2,378,358 $2,497,275

Projected Operating Profit/(Loss) ($1,777,424) ($1,866,295)

Subsidy Calculations

Operating Loss $1,777,424 $1,866,295

Economic Return @ 5% $118,918 $124,864

Required Subsidy $1,896,342 $1,991,159

Subsidy per Departure $635.11 $666.87

Subsidy per Passenger $158.04 $161.11

Avg. Enplanements per Operational Day 19.2 19.8

Service Pattern Option #1: El Centro/Imperial, CA

SeaPort Airlines, Inc.

Aircraft Type: Cessna Caravan

29 Weekly RTs to San Diego
El Centro/Imperial, CA: DOT-OST-2008-0299

October 2, 2012 Page | 17 Year 1 Year 2

Operating Projections

Average Sector Length (sm) 142 142

Scheduled Departures 3,016 3,016

Scheduled Block Hours 3,302.0 3,302.0

Projected Completion Factor 99.0% 99.0%

Projected Completed Departures 2,986 2,986

Projected Completed Block Hours 3,269.0 3,269.0

Passenger Projections

Projected Passengers 12,657 13,037

Passengers per Departure 4.2 4.4

Projected Average Fare $65.76 $67.08

Revenue Passenger Miles (RPMs) 1,802,531 1,856,607

Available Seat Miles (ASMs) 3,827,023 3,827,023

Projected Load Factor 47.1% 48.5%

Financial Projections

Revenues

Passenger Ticket Revenues $832,370 $874,488

Ancillary Revenues $16,647 $17,490

Total $849,018 $891,978

Expenses

Flight Operations $277,863 $291,756

Aircraft Ownership/Lease $456,000 $456,000

Fuel & Oil $820,841 $861,883

Sales & Marketing $50,000 $50,000

Traffic Servicing $443,127 $465,284

Insurance $58,842 $61,784

Maintenance $580,368 $609,386

Sub-Total - Direct $2,687,041 $2,821,393

Indirect $403,056 $423,209

Total Expenses $3,090,097 $3,244,602

Projected Operating Profit/(Loss) ($2,241,079) ($2,353,133)

Subsidy Calculations

Operating Loss $2,241,079 $2,353,133

Economic Return @ 5% $154,505 $162,230

Required Subsidy $2,395,584 $2,515,363

Subsidy per Departure $802.31 $842.43

Subsidy per Passenger $189.27 $192.94

Avg. Enplanements per Operational Day 20.3 20.9

Service Pattern Option #2: El Centro/Imperial, CA

SeaPort Airlines, Inc.

17 Weekly RTs San Diego + 12 Weekly RTs to Phoenix

Aircraft Type: Cessna Caravan
El Centro/Imperial, CA: DOT-OST-2008-0299

October 2, 2012 Page | 18 Year 1 Year 2

Operating Projections

Average Sector Length (sm) 132 132

Scheduled Departures 3,016 3,016

Scheduled Block Hours 2,886.0 2,886.0

Projected Completion Factor 99.0% 99.0%

Projected Completed Departures 2,986 2,986

Projected Completed Block Hours 2,857.1 2,857.1

Passenger Projections

Projected Passengers 12,602 12,980

Passengers per Departure 4.2 4.3

Projected Average Fare $59.81 $61.01

Revenue Passenger Miles (RPMs) 1,664,333 1,714,263

Available Seat Miles (ASMs) 3,549,031 3,549,031

Projected Load Factor 46.9% 48.3%

Financial Projections

Revenues

Passenger Ticket Revenues $753,757 $791,897

Ancillary Revenues $15,075 $15,838

Total $768,832 $807,735

Expenses

Flight Operations $242,857 $255,000

Aircraft Ownership/Lease $456,000 $456,000

Fuel & Oil $717,428 $753,299

Sales & Marketing $50,000 $50,000

Traffic Servicing $433,308 $454,973

Insurance $51,429 $54,000

Maintenance $471,428 $495,000

Sub-Total - Direct $2,422,449 $2,543,571

Indirect $363,367 $381,536

Total Expenses $2,785,816 $2,925,107

Projected Operating Profit/(Loss) ($2,016,985) ($2,117,834)

Subsidy Calculations

Operating Loss $2,016,985 $2,117,834

Economic Return @ 5% $139,291 $146,255

Required Subsidy $2,156,275 $2,264,089

Subsidy per Departure $722.17 $758.28

Subsidy per Passenger $171.11 $174.43

Avg. Enplanements per Operational Day 20.2 20.8

Aircraft Type: Cessna Caravan

Service Pattern Option #3: El Centro/Imperial, CA

SeaPort Airlines, Inc.

17 Weekly RTs San Diego + 12 Weekly RTs to Burbank
El Centro/Imperial, CA: DOT-OST-2008-0299

October 2, 2012 Page | 19 Year 1 Year 2

Operating Projections

Average Sector Length (sm) 94 94

Scheduled Departures 3,016 3,016

Scheduled Block Hours 2,211.7 2,211.7

Projected Completion Factor 99.0% 99.0%

Projected Completed Departures 2,986 2,986

Projected Completed Block Hours 2,189.6 2,189.6

Passenger Projections

Projected Passengers 11,999 12,359

Passengers per Departure 4.0 4.1

Projected Average Fare $49.10 $50.08

Revenue Passenger Miles (RPMs) 1,127,906 1,161,743

Available Seat Miles (ASMs) 2,245,352 2,245,352

Projected Load Factor 50.2% 51.7%

Financial Projections

Revenues

Passenger Ticket Revenues $589,151 $618,962

Ancillary Revenues $11,783 $12,379

Total $600,934 $631,341

Expenses

Flight Operations $232,232 $243,844

Aircraft Ownership/Lease $192,000 $192,000

Fuel & Oil $625,368 $656,636

Sales & Marketing $50,000 $50,000

Traffic Servicing $302,930 $318,077

Insurance $86,258 $90,570

Maintenance $656,241 $689,053

Sub-Total - Direct $2,145,028 $2,252,279

Indirect $321,754 $337,842

Total Expenses $2,466,782 $2,590,121

Projected Operating Profit/(Loss) ($1,865,848) ($1,959,141)

Subsidy Calculations

Operating Loss $1,865,848 $1,959,141

Economic Return @ 5% $123,339 $129,506

Required Subsidy $1,989,187 $2,088,647

Subsidy per Departure $666.21 $699.52

Subsidy per Passenger $165.78 $169.00

Avg. Enplanements per Operational Day 19.2 19.8

Aircraft Type: Piper Chieftain

29 Weekly RTs to San Diego

Service Pattern Option #1: El Centro/Imperial, CA

SeaPort Airlines, Inc.
El Centro/Imperial, CA: DOT-OST-2008-0299

October 2, 2012 Page | 20 Year 1 Year 2

Operating Projections

Average Sector Length (sm) 142 142

Scheduled Departures 3,016 3,016

Scheduled Block Hours 3,230.9 3,230.9

Projected Completion Factor 99.0% 99.0%

Projected Completed Departures 2,986 2,986

Projected Completed Block Hours 3,198.6 3,198.6

Passenger Projections

Projected Passengers 12,657 13,037

Passengers per Departure 4.2 4.4

Projected Average Fare $65.76 $67.08

Revenue Passenger Miles (RPMs) 1,802,531 1,856,607

Available Seat Miles (ASMs) 3,401,798 3,401,798

Projected Load Factor 53.0% 54.6%

Financial Projections

Revenues

Passenger Ticket Revenues $832,370 $874,488

Ancillary Revenues $16,647 $17,490

Total $849,018 $891,978

Expenses

Flight Operations $335,856 $352,648

Aircraft Ownership/Lease $192,000 $192,000

Fuel & Oil $904,411 $949,631

Sales & Marketing $50,000 $50,000

Traffic Servicing $435,740 $457,527

Insurance $124,746 $130,984

Maintenance $882,444 $926,566

Sub-Total - Direct $2,925,196 $3,071,456

Indirect $438,779 $460,718

Total Expenses $3,363,976 $3,532,175

Projected Operating Profit/(Loss) ($2,514,958) ($2,640,706)

Subsidy Calculations

Operating Loss $2,514,958 $2,640,706

Economic Return @ 5% $168,199 $176,609

Required Subsidy $2,683,157 $2,817,315

Subsidy per Departure $898.63 $943.56

Subsidy per Passenger $211.99 $216.11

Avg. Enplanements per Operational Day 20.3 20.9

17 Weekly RTs San Diego + 12 Weekly RTs to Phoenix

Aircraft Type: Piper Chieftain

Service Pattern Option #2: El Centro/Imperial, CA

SeaPort Airlines, Inc.
El Centro/Imperial, CA: DOT-OST-2008-0299

October 2, 2012 Page | 21 Year 1 Year 2

Operating Projections

Average Sector Length (sm) 132 132

Scheduled Departures 3,016 3,016

Scheduled Block Hours 2,814.9 2,814.9

Projected Completion Factor 99.0% 99.0%

Projected Completed Departures 2,986 2,986

Projected Completed Block Hours 2,786.8 2,786.8

Passenger Projections

Projected Passengers 12,602 12,980

Passengers per Departure 4.2 4.3

Projected Average Fare $59.81 $61.01

Revenue Passenger Miles (RPMs) 1,664,333 1,714,263

Available Seat Miles (ASMs) 3,154,694 3,154,694

Projected Load Factor 52.8% 54.3%

Financial Projections

Revenues

Passenger Ticket Revenues $753,757 $791,897

Ancillary Revenues $15,075 $15,838

Total $768,832 $807,735

Expenses

Flight Operations $292,612 $307,243

Aircraft Ownership/Lease $192,000 $192,000

Fuel & Oil $787,963 $827,361

Sales & Marketing $50,000 $50,000

Traffic Servicing $424,865 $446,108

Insurance $108,685 $114,119

Maintenance $738,498 $775,423

Sub-Total - Direct $2,594,623 $2,724,354

Indirect $389,193 $408,653

Total Expenses $2,983,816 $3,133,007

Projected Operating Profit/(Loss) ($2,214,984) ($2,325,734)

Subsidy Calculations

Operating Loss $2,214,984 $2,325,734

Economic Return @ 5% $149,191 $156,650

Required Subsidy $2,364,175 $2,482,384

Subsidy per Departure $791.80 $831.39

Subsidy per Passenger $187.60 $191.25

Avg. Enplanements per Operational Day 20.2 20.8

Service Pattern Option #3: El Centro/Imperial, CA

17 Weekly RTs San Diego + 12 Weekly RTs to Burbank

Aircraft Type: Piper Chieftain

SeaPort Airlines, Inc.
El Centro/Imperial, CA: DOT-OST-2008-0299

October 2, 2012 Page | 22

ATTACHMENT

LETTER OF SUPPORT FROM 

BURBANK-GLENDALE-PASADENA AIRPORT AUTHORITY
El Centro/Imperial, CA: DOT-OST-2008-0299

October 2, 2012 Page | 23