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Sovereign Mr, Inc. 

March 24, 2010 

Dennis J. DeVany, Chief 

EAS & Domestic Analysis Division, X-53 

Office of Aviation Analysis 

Department of Transportation 

1200 New Jersey Ave. SE 

Washington, DC 20590 

Re: Proposal to Provide Essential Air Service at: 

Altoona, PA (AOO) and Johnstown, PA (JST) 

to Washington, D.C. (IAD) 

DOT-OST-2002-11446, & 

DOT-OST-2002-11451 

Dear Mr. DeVany: 

In response to Order 2010-2-28, Sovereign Air, Inc. offers the following proposal: 

Sovereign Air, Inc. (SAI) is planning to use the King Air 350 as its primary aircraft for this Essential Air 

Service route. It will be configured with nine passenger seats if Altoona and Johnstown are to be served 

separately, and will be expanded to twelve seats if the route is to be combined. The aircraft is type 

certificated for up to fifteen passenger seats. 

Sovereign Air is proposing the aircraft for the exclusive use (no up-line or down-line service) of the 

proposed EAS routes. Our flights will service only the EAS city(ies) and the indicated Hub. Sovereign Air 

believes that with good schedules, proper pricing and a recovering economy, the load factors will likely 

increase in these markets. SAI will base its aircraft, crews and maintenance personnel, banking and 

purchase fuel in the EAS cities. This will help keep the EAS monies in the local communities. 

SAI will have baggage and ticket agreements with the major air carriers in Washington, D.C. (IAD). SAI 

will have cargo agreements for both domestic and international air freight movements. 

SAI has been HAZMAT approved and will be working in conjunction with hospitals to expedite various 

HAZMAT materials that they need to transport. 

SAI's goal is to work hand-in-hand with EAS communities to reduce the need for EAS subsidies within the 

next four to six years. 

Sovereign Air is currently in the process of acquiring its Scheduled Service Authority and anticipates 

being able to start this Essential Air Service by June 1st. 

Sovereign Air will be fully integrated into the Global Distribution System (GDS) in conjunction with 

Worldspan. SAI is not tied to just one airline, allowing Sovereign Air better visibility in the various 

reservation systems. Passengers will have a broad range of channels through which to purchase tickets. 
including all airline reservation systems and travel agencies. Customers will be able to call our 

reservation office or visit our website to book flights. Passengers can also purchase tickets and make 

reservations at our ticket counters. 

SAI's final schedules will be developed by the EAS City Airport Boards and SAI to reduce layover times in 

IAD and provide the best possible arrival and departure times for the travelling public. As such, the 

following schedules will likely be adjusted: 

Proposed Schedule Options 

Option 1 (5RT): 5 round trips daily between JST, AOO and IAD 

JST-AOO-IAD 5X Schedule 7 Day Week 

Depart 

JST 

600 

1000 

1300 

1600 

1800 

Arrive 

AOO 

610 

1010 

1310 

1610 

1810 

Depart 

AOO 

615 

1015 

1315 

1615 

1815 

Arrive 

IAD 

645 

1045 

1345 

1645 

1845 

Depart 

IAD 

800 

1100 

1400 

1700 

1900 

Arrive 

AOO 

830 

1130 

1430 

1730 

1930 

Depart 

AOO 

835 

1135 

1435 

1735 

1935 

Arrive 

JST 

850 

1150 

1450 

1750 

1950 

Option 2 (4RT): 4 round trips daily between JST and IAD 

JST-IAD 4X Schedule 7 Day Week 

Depart 

JST 

600 

1000 

1400 

1700 

Arrive 

IAD 

640 

1040 

1440 

1740 

Depart 

IAD 

800 

1100 

1500 

1900 

Arrive 

JST 

840 

1140 

1540 

1940 

Option 3 (4RT): 4 round trips daily between AOO and IAD 

AOO-IAD 4X Schedule 7 Day Week 

Depart 

AOO 

600 

1000 

1400 

1700 

Arrive 

IAD 

635 

1035 

1440 

1740 

Depart 

IAD 

800 

1100 

1500 

1900 

Arrive 

AOO 

835 

1135 

1535 

1935 
OPTION 1 

Annual Compensation Requirement for Essential Air Service for 

JST-AOO-IAD 

Aircraft Type 

Available Seats Per Departure 

Passengers Per Trip 

5rt daily 

Beechcraft 350 

12 

8.1 

Block Hours 

Departures 

Total Passengers 

Average Fare 

Revenue Passenger Miles 

Available Seat Miles 

Passenger Revenue 

Other Rev. @ .6 of pax. Rev. % 

Total Revenue 

Aircraft and Hull Insurance 

Fuel and Oil 

Flying Operations 

Other Direct Costs 

Maintenance 

Total Direct Costs 

2,419 

3,541 

28,604 

$69.00 

3,749,984 

5,569,915 

$1,973,676.00 

$11,842.06 

$1,985,518.06 

$25,000.00 

$907,253.13 

$222,579.43 

$479,776.30 

$117,356.95 

$1,751,965.81 

Total Indirect Costs $1,190,054.19 

Total Operating Expenses $2,942,020.00 

Operating Loss 

Profit @ 5% 

Completion Rate 

Subsidy per leg 

Load Factor 

$956,501.94 

$147,101.00 

Annual Compensation 

Requirement $1,103,602.94 

Monthly Compensation 

Requirement $91,966.91 

97% 

$311.71 

67.3% 
OPTION 2 

Annual Compensation Requirement for Essential Air Service for 

JST-IAD 4rt daily 

Aircraft Type 

Available Seats Per Departure 

Passengers Per Trip 

Beechcraft 350 

9 (up to 12) 

5.6 

Block Hours 1,463 

Departures 

Total Passengers 

Average Fare 

Revenue Passenger Miles 

Available Seat Miles 

Passenger Revenue 

Other Rev. @ .6 of pax. Rev. % 

Total Revenue 

Aircraft and Hull Insurance 

Fuel and Oil 

Flying Operations 

Other Direct Costs 

Maintenance 

Total Direct Costs 

2,832 

15,786 

$69.00 

1,888,006 

3,048,795 

$1,089,234.00 

$6,535.40 

$1,095,769.40 

$25,000.00 

$548,777.50 

$134,633.41 

$444,917.24 

$83,453.83 

$1,236,781.99 

Total Indirect Costs $871,014.44 

Total Operating Expenses 

Operating Loss 

Profit @ 5% 

Completion Rate 

Subsidy per leg 

Load Factor 

$2,107,796.43 

$1,012,027.02 

$105,389.82 

Annual Compensation 

Requirement $1,117,416.84 

Monthly Compensation 

Requirement $93,118.07 

97% 

$394.51 

61.9% 
OPTION 3 

Annual Compensation Requirement for Essential Air Service for 

AOO-IAD 

Aircraft Type 

Available Seats Per Departure 

Passengers Per Trip 

4rt daily 

Beechcraft 350 

9 (up to 12) 

4.5 

Block Hours 1,322 

Departures 

Total Passengers 

Average Fare 

Revenue Passenger Miles 

Available Seat Miles 

2,832 

12,818 

$69.00 

1,326,663 

2,638,381 

Passenger Revenue 

Other Rev. @ .6 of pax. Rev. % 

Total Revenue 

$884,442.00 

$5,306.65 

$889,748.65 

Aircraft and Hull Insurance 

Fuel and Oil 

Flying Operations 

Other Direct Costs 

Maintenance 

Total Direct Costs 

$25,000.00 

$495,670.00 

$121,604.37 

$434,343.89 

$73,022.10 

$1,149,640.37 

Total Indirect Costs $871,014.44 

Total Operating Expenses $2,020,654.81 

Operating Loss 

Profit @ 5% 

Completion Rate 

Subsidy per leg 

Load Factor 

Annual Compensation 

Requirement 

Monthly Compensation 

Requirement 

$1,130,906.16 

$101,032.74 

$1,231,938.90 

$102,661.57 

97% 

$434.95 

50.3% 
Customer safety and service are Priority One with SAI. Sovereign Air looks forward to providing 

Essential Air Service to Altoona and Johnstown, PA. 

Sincerely, 

Jon Payne, CFO 

Sovereign Air, Inc.