# CHARTE R AI R Revise dProposa l t o Provid e Essentia l Ai r Servic e a t Ironwood , Manistee/Ludington , Michiga n DOT-OST-1996-1266 ; DOT-OST-1996-171 1 Dated : 07/06/201 0 Introductio n Charter Air Transport , Inc . i s aCharter Operato r tha t currentl y ha s a"Sho w Cause " Order fo r Commuter

Fitnes s . •!

, Detenninatio n (Docke t

#DOT-OST-2009-0187 ) wit h afleet o f fou r 3 0 sea t Turb o Pro p EMB-12 0 aircrafrWit h a n optio n t o purchas e 2 additional EMB-12 0 aircraf t an dtw o 1 9 sea

t BAE320 0 Jetstreamaircraft . We als o operate aircraf t includin g Hawker Jet , Citatio n Jet , Beec h Jet , an dmanage s Kin g Air-20 0 equipment . Charter Air Transpor t i s a n Ai r Carrier tha t trul y provide s th e mos t

flexibilit y withi n it s curren t

fleet t o operate aircraf

t an dgro w wit

h eac h communit

y w e serve . W e hav e entere dinto apartnershi p Aviatio n Technologies , Inc. , wh o commonl y own s Publi c Charters , Inc. , to enhanc e our inventor y distributio n (sea

t sales ) b y als o operatin g thes e flight s a s publi c charter s an ddistributin g the mthroug h th e majo r Globa l Distributio n System s (GDS ) use dby al l o f th e major Schedule dAirline s t o sel l thei r inventor y to th e worldwid e Trave l Agent

Community . So , in additio n t o th e classi c Interne t base dReservation s Syste msales ; EA S seat s woul db e availabl e to th e Trave l Communitie s i n Nort h Americ aincludin g Canada , Mexico , an dth e Caribbean fo r tru e global distribution . Whil e filing thes e seat s a s publi c charter s i s no t require dt o serv e EA S markets ; th e extr apotentia l sea t sale s hav e increase dour

market projection s to over

doubl e th e curren t

ridershi p i

n eac h communit

y fro mthei r curren t level s o f enplanements . Ou

r goa l i s to maximiz e loadfactor s an dfl y prove n route s fo

r each community . Thi s pubh c charter

inventor y woul db e loade dinto Publi c Charters , Inc.' s lAT A certifie dCR S syste m(Computerize d Reservation s System) tha

t currentl y interface s wit

h th e Sabr e an dAmadeu s GD S systems . Thes e system s are commonl y use db y Trave l Agencie s worldwide , an dare th e portal o f sale s fo r larg e clearin g house s lik

e Travelocit

y an dExpedia . Usin g Publi c Charters , Inc.' s advance dCR S enable s u s to distribut e sea t inventor y seamlessl y throug h th e GD S system s by settlin g th e sale s throug h ARC (Airlin e Reportin g Company) . Al l ticke t sale s are additionall y protecte dwhe n filing ou r flight inventor y throug h th e publi c charte r venue , a s al l ticke t

sale s revenu e i s directe dinto aDO T certifie d& bonde d escro w ban

k an dhel dunti l flight

completion . Al l flight

informatio n displaye don th e GD S system s woul dinclud e th e statement : "Operate db y Charter Ai r Transport" . Thi s i s exactl y th e wa y tha t commuter

operator s displa

y fo r th e major airlines . Publi c Charters , Inc.' s CR S syste mals o contain s aDeparture Contro l Syste m(DCS ) tha t include s acomplet e baggag e an d ticketin g syste mfo

r aconvenient

airpor t check-i n process . Sinc e thi s syste mha s Typ e "A " cormectivity , i t provide s th e basi c component s fo

r baggag e an dticketin g agreement s wit h mos t main-lin e carriers . I

t i s certifie dE-Ticketin g wit h bot h Sabr e an dAmadeus ; andha s plan s to implemen t wit h Travelpor

t (Worldspan ) i

n th e nea r fliture . Thi s wil l enabl e our inventor y t o als o b e picke du

p by Orbit z an dPric e Lin e for additional distributio n opportunities . Additionall y w e us e th e Chec k TSA , Inc . syste mtha

t offer s th e lates t

securit y technologie s tha

t are use dfo

r TS A screenin g includin g complianc e wit

h Secur e Fligh t an dCB P AQ Q communicatio n fo r International API S transmissions . You ca n visi t thei r securit y web-site a

t www.ChcckTSA.co mfo

r more information .

1 I P a g e

# CHARTE R JMRUrampor t

Charter Ai r Transpor t woul dlik

e t o fac e th e challeng e o f

providin g servic e t o EA S communities , mainl y by identifyin g better , but mor e condense dschedule s tha t serv e alarge r

part o f communit

y traffi c fo

r O& D (originatio n an ddestination ) routes . Whil e w e continu e to wor k o n our Interlinin g agreements , gettin g passenger s to thei r final destinatio n convenientl y andmore efficiently ha s alway s bee n th e goal . Becaus e th e DC S describe dabov e i s a100 % Interne t base dSystem ; w e ar e abl e to provid e on-site check-in s wit h an y connectin g Carrier

tha t permit s Interne t

check-in s a s par

t o f thei r web-site services . Thi s enable s th e passenge r to prin t thei r boardin g cardfo

r thei r cormectin g flight

a t th e EA S departure airport . Returnin g passenger s ma y obtai n thei r

boardin g pas s a t th e Charter

Air Transport/Publi c Charter s gat e an dd o no t hav e to g o t o th e check-i n counter . Onc e w e get th e passenger s delivere dto th e steril e gate areas ; the y woul dalready hav e thei r cormectin g boardin g card s an dw e woul d artang e aloca

l transfer o f baggag e eithe r

directl y to th e gate or

throug h aloca

l baggag e arrangemen t

wit h eac h cartier . W

e continu e to wor

k wit h severa l major airline s fo

r Interlin e an dTicketin g agreements , an dar e confident that ; wit h our current busines s practices ; tha

t th e trave l experienc e wil l b e practical , expeditious , an dconvenien t fo r eac h passenger . W e us e acolo r

code d"Disne y Type " baggag e codin g fo r convenient

recognitio n o f

interline dbaggag e bot

h fo r out boun d andinboun dflight

baggag e retrieval an dtransfers . Whil e w e do no t charg e baggag e fees , w e mus t collec t any fee s tha

t ma y b e charge db y other

carriers . Thes e charge s wil l b e poste do n ou r web-site an dcollecte da

t th e time o f

check-in . W

e hav e bee n advise db

y carrier s lik

e Southwes t

Airlines , that

if apassenge r

i s carryin g aSouthwes t

Boardin g cardor

ha s a Southwes t ticket , the y wil l b e treate dlik e aSouthwes t

passenger . Thi s include s th e acceptanc e o f baggage . Thi s i s tru e fo

r mos t majo r airlines . There are several regulation s tha t expec t cartier s t o accommodate interlinin g traffi c fo r feede r flights. Bot h Charter Ai r Transpor t an dPubli c Charters , Inc . are committe dt o th e highes t

on-tim e performanc e an dflight completio n record s t o our

passengers . I n th e even t

o f a n aircraf t mechanical , our

first resourc e t o i s us e bac k

u p aircraf t fro mwithi n th e Charter

Ai r Transpor t fleet. However , w e are no t limite dto thes e resource s an dhav e acces s t o retai n sub servic e utilizin g other

certifie dFAA Ai r

Cartier' s aircraf

t tha t coul dconsis t

o f aircraf t typ e rangin g frompressurize dTwi n Turb o Pro p aircraf

t t o Corporate Je t

aircraft . Shoul dsub-servic e b e necessary , w e wil l utiliz e aircraf t sufficient t o provid e coverag e base don th e actual tickete dpassenger s fo r eac h flight

leg . Whether

w e us e on e or

tw o aircraf

t t o complete a flight sequence , w e provid e thi s servic e wit h n o surcharg e o r

penalt y t o th e EA S Communit

y Service . On e o f our motto s i s "G o wit

h U s s o that

w e can Gro w wit

h You! " Charter

Air Transpor t ca n offe r dail y servic e operatin g multipl e flights per

da y fo r an y EA S route that

i s u p to 15 0 nautical mile s poin t to poin t fro mth e originatio n cit

y to th e destinatio n city . W

e no w offe r th e choic e o f

operatin g wit

h eithe r th e Jetstream1 9 sea

t aircraf t (o r 1 8 wit h on e lavatory ) or th e 3 0 sea t EMB-12 0 (includin g on e Flight Attendant ) to serv e th e community' s trave l needs . Whil e w e recogniz e tha t communitie s want

more frequenc y an dlarger aircraft , th e statistic s an dhistor y hav e dictate dtha

t thes e route s nee dt o b e revampe dan drebuil t

to meet th e tru e communit

y need . We offe

r prim e tim e departure s an darrivals , includin g earl y mornin g an dlate afternoon , to optimiz e bot h th e O& D an dpotential cormectin g passenger enplanements . Our

desire i s t o provid e th e loca

l communitie s flight

servic e to a

n airpor t tha t wil l provid e th e mos t

vantag e point s fo

r cormectin g int o the Nationa l Transportatio n Systema t large . The combine dpartnershi p betwee n Charte r Ai r Transpor t an dPubli c Charters , Inc . i s designe dt o flt eac h marke t

need , offering capabilitie s t o provid e additional aircraf t capacitie s i

n order t o gro w wit

h eac h communit

y w e serve ; whil e providin g enhance dticke t

sal e distribution .

2 I P a

# CHARTE RAI R{Transpor t ^ Proposal s Included : IW D an dMBL-MK E Combine dServic e No n Sto p & On e Sto p Servic e - Appendi x "A " Aircraf t Type : 3 0 Sea

t EMB-12 0 Aircraf t Base : IW

D Serve s Milwauke e (MKE ) 2 time s pe r da y Monda y throug h Frida

y an d1 tim e pe r

da y o n Saturda

y an dSunda

y 1 2 Non Stop & On e Stop flights pe r week . Averag e On e Wa y Fare : $79.0 0 Requeste dsubsid y amoun t pe r year : $3,491,513.0 0 Pleas e refe

r to Appendi x "A " o f

thi s proposal fo

r detaile dflight

schedule s an dcos t

models . Pleas e contac t

either Charter Ai r Transport , Inc . or

Publi c Charters , Inc . wit

h any question s yo u ma

y have . Fo r Charter Air Transport , Inc. : Fo r Publi c Charters , Inc. : Pau l Kahalle y Ji mGallagher Phone : 216-348-141 5 Phone : 570-457-414 7 Fax : 216-348-143 2 Fax : 570-457-411 3 Email : PaulKfa'CharterAirTransport.co mEmail : JG727rt<'aol.com Our tentativ e schedule s are subjec t t o final gat e an dslo t

approval for

eac h airpor

t w e serve .

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