1: ' \ ; i \ ^ : ' i



# Sovereig nMr , Inc
. Marc h 24 , 201 0 Denni s J
. DeVany , Chie f EA S & Domesti cAnalysi s Division , X-5 3 Offic e o fAviatio n Analysi s Departmen to fTransportatio n 120 0 Ne wJerseyAve
. S E Washington , D

C 2059 0 Re : Proposa l t o Provid e Essentia l Ai rServic e at : Altoona , P

A(AOO ) an d Johnstown , P A(JST ) t o Washington , D.C

. (IAD ) 

### DOT-OST-2002-11446 , & DOT-OST-2002-1145 1
Dea rMr
. DeVany : I n respons e t o Orde r2010-2-28 , Sovereig n Air , Inc
. offer s th e followin g proposal : Sovereig n Air , Inc
. (SAI ) i s plannin g t o us e th e Kin g Ai r35 0 a s it s primar yaircraf tfo rthi s Essentia l Ai r Servic e route
. I twil l b e configure d wit h nine passenge rseat s i fAltoon a an d Johnstow n ar e t o b e serve d separately , an d wil l b e expande d t o twelv e seat s i fth e rout e i s t o b e combined
. Th e aircraf ti s typ e certificate d fo ru p t o fiftee n passenge rseats
. Sovereig n Ai ri s proposin g th e aircraf tfo rth e exclusiv e us e (n o up-lin e o rdown-lin e service ) o fth e propose d EA

S routes
. Ou rflight s wil l servic e onl yth e EA S city(ies ) an d th e indicate d Hub
. Sovereig n Ai r believe s tha twit h goo d schedules , prope rpricin g an d a recoverin g economy , th e loa d factor s wil l likel y increas e i n thes e markets
. SA I wil l bas e it s aircraft , crew s an d maintenanc e personnel , bankin g an d purchas e fue l i n th e EA S cities
. Thi s wil l hel p kee p th e EA S monie s i n th e loca l communities
. SA I wil l hav e baggag e an d ticke tagreement s wit h th e majo rai rcarrier s i n Washington , D.C

. (IAD)

. SA I wil l hav e carg o agreement s fo rbot h domesti can d internationa l ai rfreigh tmovements
. SA I ha s bee n HAZMA

Tapprove d an d wil l b e workin g i n conjunctio n wit h hospital s t o expedit e variou s HAZMA Tmaterial s tha tthe ynee d t o transport
. SAI' s goa l i s t o wor k

hand-in-han d wit h EA S communitie s t o reduc e th e nee d fo rEA S subsidie s withi n th e nex tfou rt o si xyears . Sovereig n Ai ri s currentl yi n th e proces s o facquirin g it s Schedule d Servic e Authorit yan d anticipate s bein g abl e t o star tthi s Essentia l Ai rServic e b yJun e 1st
. Sovereig n Ai rwil l b e full yintegrate d int o th e Globa l Distributio n Syste m (GDS) i n conjunctio n wit h Worldspan
. SA I i s no ttie d t o jus ton e airline , allowin g Sovereig n Ai rbette rvisibilit yi n th e variou s reservatio n systems
. Passenger s wil l hav e a broa d rang e o fchannel s throug h whic h t o purchas e tickets
.includin g al l airlin e reservatio n system s an d trave l agencies
. Customer s wil l b e abl e t o cal l ou r

reservatio n offic e o rvisi tou rwebsit e t o boo k flights

. Passengers ca n als o purchas e ticket s an d mak e reservation s a tou rticke tcounters
. SAI' s fina l schedule s wil l b e develope d byth e EA S Cit yAirpor tBoard s an d SA I t o reduc e layove rtime s i n IA D an d provid e th e bes tpossibl e arriva l an d departur e time s fo rth e travellin g public
. A s such , th e followin g schedule s wil l likel yb e adjusted : Propose d Schedul e Option s Optio n 1 (5RT) : 5 roun d trip s dail ybetwee n JST , AO O an d IA D 

## JST-AOO-IA D 5XSchedul e 7 DayWee k
Depar t 

### JS T 60 0 100 0 130 0 160 0 180 0 Arriv

e 

### AO O 61 0 101 0 131 0 161 0 181 0 Depar t



### AO O 61 5 101 5 131 5 161 5 181 5 Arriv

e 

### IA D 64 5 104 5 134 5 164 5 184 5 Depar t



### IA D 80 0 110 0 140 0 170 0 190 0 Arriv

e 

### AO O 83 0 113 0 143 0 173 0 193 0 Depar t



### AO O 83 5 113 5 143 5 173 5 193 5 Arriv

e 

### JS T 85 0 115 0 145 0 175 0 195 0 Optio n 2 (4RT) : 4 roun d trip s dail ybetwee n JS Tan d IA D 

## JST-IA D 4XSchedul e 7 DayWee k
Depar t 

### JS T 60 0 100 0 140 0 170 0 Arriv e 

### IA D 64 0 104 0 144 0 174 0 Depar t 

### IA D 80 0 110 0 150 0 190 0 Arriv e 

### JS T 84 0 114 0 154 0 194 0 Optio n 3 (4RT) : 4 roun d trip s dail ybetwee n AO O an d IA D 

## AOO-IA D 4XSchedul e 7 DayWee k
Depar t 

### AO O 60 0 100 0 140 0 170 0 Arriv e 

### IA D 63 5 103 5 144 0 174 0 Depar t 

### IA D 80 0 110 0 150 0 190 0 Arriv e 

### AO O 83 5 113 5 153 5 193 5

### OPTIO N 1

Annua l Compensatio n Requiremen tfo rEssentia l Ai rServic e fo r JST-AOO-IA D Aircraf tTyp e Availabl e Seat s Pe rDepartur e Passenger s Pe rTri p 5r tdail y Beechcraf t35 0

1 2 

### 8. 1
Bloc k Hour s Departure s Tota l Passenger s Averag e Far e Revenu e Passenge rMile s Availabl e Sea tMile s Passenge rRevenu e Othe rRev
. @

. 6 ofpax . Rev
. % Tota l Revenue Aircraf tan d Hul l Insuranc e Fue l an d Oil Flyin g Operation s Othe rDirect Cost s Maintenanc e Tota l DirectCost s 2,41 9 3,54 1 28,60 4 $69.0 0 3,749,98 4 5,569,91 5 $1,973,676.0 0 $11,842.0 6 $1,985,518.0 6 $25,000.0 0 $907,253.1 3 $222,579.4 3 $479,776.3 0 $117,356.9 5 $1,751,965.8 1 Tota l IndirectCost s 

### $1,190,054.1 9 Tota l Operatin g Expense s 

### $2,942,020.0 0 Operatin g Los s Profi t@ 5 %

Completio n Rat e Subsid ype rle g Loa d Facto r $956,501.9 4 $147,101.0 0 Annua l Compensatio n

Requiremen t$1,103,602.9 4 Monthl yCompensatio n

Requiremen t$91,966.9 1 

### 97 % $311.7 1 67.3 %

### OPTIO N 2

Annua l Compensatio n Requiremen tfo rEssentia l Ai rServic e fo r JST-IA D 4rtdail y
Aircraf tTyp e Availabl e Seat s Pe rDepartur e Passenger s Pe rTri p Beechcraf t35 0 9 (u p t o 12 ) 5. 6
Bloc k Hour s 

### 1,46 3 Departure s Tota l Passenger s Averag e Far e Revenu e Passenge rMile s Availabl e Sea tMile s Passenge rRevenue Othe rRev
. @

. 6 ofpax . Rev
. % Tota l Revenu e Aircraf tan d Hul l Insuranc e Fue l an d Oi l Flyin g Operation s Othe rDirectCost s Maintenanc e Tota l DirectCost s 2,83 2 15,78 6 $69.0 0 1,888,00 6 3,048,79 5 $1,089,234.0 0 $6,535.4 0 $1,095,769.4 0 $25,000.0 0 $548,777.5 0 $134,633.4 1 $444,917.2 4 $83,453.8 3 $1,236,781.9 9 Tota l Indirect Cost s 

### $871,014.4 4 Tota l Operatin g Expense s Operatin g Los s Profi t @ 5 %

Completio n Rat e Subsid ype rle g Loa d Facto r $2,107,796.4 3 $1,012,027.0 2 $105,389.8 2 Annua l Compensatio n

Requiremen t$1,117,416.8 4 Monthl yCompensatio n

Requiremen t$93,118.0 7 97 % $394.5 1 61.9 %

### OPTIO N 3

Annua l Compensatio n Requiremen tfo rEssentia l Ai rServic e fo r AOO-IA D Aircraf tTyp e Availabl e Seat s Pe rDepartur e Passenger s Pe rTri p 4rtdail y Beechcraf t35 0

9 (u p t o 12 ) 4. 5
Bloc k Hours 

### 1,322 Departure s Tota l Passenger s Averag e Far e Revenu e Passenge rMile s Availabl e Sea t Mile s 2,83 2 

### 12,81 8 $69.0 0 1,326,66 3 2,638,38 1 Passenge rRevenu e Othe rRev
. @

. 6 o

fpax . Rev
. % Tota l Revenu e 

### $884,442.0 0 $5,306.6 5 $889,748.6 5 Aircraf tan d Hul l Insuranc e Fue l an d Oil Flyin g Operation s Othe rDirect Cost s Maintenanc e Tota l DirectCost s $25,000.0 0 $495,670.0 0 $121,604.3 7 $434,343.8 9 $73,022.1 0 $1,149,640.3 7 Tota l IndirectCost s 

### $871,014.4 4 Tota l Operatin g Expense s $2,020,654.8 1 Operatin g Los s Profi t@ 5 %

Completio n Rat e Subsid ype rle g Loa d Facto r Annua l Compensatio n Requiremen t Monthl yCompensatio n

Requiremen t 

### $1,130,906.1 6

$101,032.7 4 $1,231,938.9 0 $102,661.5 7 97 % 

### $434.9 5 50.3 %Custome rsafet yan d servic e ar e Priorit yOn e wit h SAI

. Sovereig n Ai rlook s forwar d t o providin g

Essentia l Ai rServic e t o Altoon a an d Johnstown , PA
.
Sincerely ,

Jo n Payne , CF

O Sovereig n Air , Inc
.