History 

BOUTIQUE AIR 

340 Pine Street, Suite 503 

San Francisco, CA 

t. 415-449.0505 

f. 415-738-7671 

Carlsbad's first Essential Air Service (EAS) determination was given in Order 84-1 0-1 0. 

That order calls for a minimum service level of 54 inbound and 54 outbound seats when the 

community is served with aircraft that have fewer than 15 seats. 

Furthermore, while 47 U.S.C. 41733(e) allows the Secretary to review and adjust the level of 

service at EAS communities, it specifically prohibits lowering the level of service below the 

original determination - in this case, the determination set by Order 84-10-10. 

As such, it is our opinion that Carlsbad, NM is entitled to, and should receive, a level of service 

commensurate with its original determination. To that end, we propose as Option 3 a scenario 

that fulfills the Department's expectations, but also provided an option for what we believe to be 

the correct level of service in Option 1. 

About Boutique Air 

Boutique Air (formerly Shasta Flyers Aviation) has been in operation since 2007. We began by 

flying air attack missions for the U.S. Forestry Department. In addition to that, we now provide 

charter service out of Van Nuys, CA with our PC-12. While providing charter services we have 

received certification from both ARG/US and Wyvern, passing stringent due diligence checks for 

operator safety. 

We have also worked to develop our distribution channels. We have connections in place with 

all of the major Global Distribution Systems (GDSs), which travel agents use to access the 

market. You'll find us on Worldspan and Apollo (Travelport), Sabre, and Amadeus. In addition, 

we are on the major Online Travel Agencies (OTAs). This includes Expedia, Travelocity, 

Priceline, and Cheap0Air. 1 

We also have our direct channels, such as our website and call center - which will be staffed 

by Carlsbad locals. We intend to keep two aircraft (under either Option 1 or 2) overnight at 

CNM. That means we'll be also be doing maintenance in Carlsbad, providing reliable morning 

departures and allowing easier connections in Albuquerque or Dallas. 

1 We have signed an agreement with Orbitz and Cheap Tickets, and expect that to be live in February. 
BOUTIQUE AIR 

340 Pine Street, Suite 503 

San Francisco, CA 

t. 415-449-0505 

f. 415-738.7671 

Of course, we'll also be hiring a local station manager and customer service agents to ensure 

Carlsbad locals get the support and attention they expect and deserve. We will be active in the 

community--participating in the Chamber of Commerce, local businesses, charities, and events. 

Our Policies 

At Boutique Air, we have a different philosophy than most carriers. For one thing, you're 

going to have to look pretty hard to find fees. We don't charge change fees, we don't charge 

unaccompanied minor fees, we don't charge pet fees, and we don't charge baggage fees. 

In fact, our baggage policy couldn't be simpler. Each guest can bring 40 pounds of baggage. If 

you have more than that, we'll accommodate it if we can - no extra charge. If you know you'll 

have extra baggage and you want to be sure there's room, we'll let you send it on an earlier 

flight and hold it at your destination until you get there. 

Proposal 

Our proposal consists of three different options for Carlsbad. All options would be flown in 

nine-seat Pilatus PC-12 aircraft. These aircraft are pressurized, and are much faster than the 

Cessna Caravan, which is the current aircraft serving Carlsbad. This will provide a quicker, 

more comfortable trip. 

It should be noted that we firmly believe that the two hub service will increase Carlsbad's traffic 

significantly. This proven method has been used in other EAS communities a number oftimes. 2 

One way we intend to increase passenger counts is by recapturing traffic that has leaked to 

Roswell to fly to DFW. With our projected fares to Dallas ranging from $69 to $129, we will be 

significantly more economical than flying out of Roswell. 3 

For flights to Albuquerque, we are projecting fares ranging from $49 to $99. From time to time 

we will also have sales on both routes to increase both awareness and passenger counts. 

2 BRL, DEC, ELD, HOT, and HRO are all examples of EAS communities where traffic has increased 

under nine-passenger carriers flying to two hubs. 

3 Currently the lowest fare from Roswell to DFW is $159 and requires a 21-day advance purchase. The 

lowest walk-up fare is $280. 
BOUTIQUE AIR 

340 Pine Street, Suite 503 

San Francisco, CA 

t. 415-449.0505 

f. 415-738-7671 

Each option is being proposed as either a two or four year contract. 

Option 1 would provide the full level of service the community is entitled to, consisting of 24 

weekly round trips to Albuquerque, NM and 12 weekly round trips to Dallas, TX. 

Option 2 is something of a compromise between the current level of service and the entitled 

level of service. It consists of 12 weekly round trips to Albuquerque, NM and 12 weekly round 

trips to Dallas, TX. 

Finally, Option 3 offers service at the level requested by the DOT, providing 12 weekly round 

trips to Dallas, TX. 

Community Input 

We have spoken with the airport manager and the mayor's office in order to determine what 

the preferences of the community are. Some suggestions we were able to accomodate (such 

as staffing the airport during flights for passenger assistance) and some we were not (more 

intrastate destinations, for example). 

While we can't promise we'll be able to implement everyone's suggestions, we welcome 

feedback from the citizens of Eddy County, as well as anyone who may have an interest in 

the proposed flights. What we can promise is that we'll listen to your feedback, and give it the 

attention and consideration it deserves. 

We also encourage everyone to let the DOT know which proposal you like best (even if it's not 

ours) by commenting on the bid. Go to boutiqueair.com/CNM to send your comments directly to 

the DOT. 

With respect and appreciation, 

Shawn Simpson 

CEO 
BOUTIQUE AIR 

340 Pine Street, Suite 503 

San Francisco, CA 

t. 415.449.0505 

f. 415.738.7671 

Option 1 - Bid 

12 

Origin CNM DFW CNM ABQ 

Destination DFW CNM ABQ CNM 

Operations 

Flights 624 624 1,248 1,248 

Block Hours 1,140 1,140 1,368 1,368 

Seats 5,616 5,616 11,232 11,232 

ASMs 2,369,952 2,369,952 2,594,592 2,594,592 

Revenue 

Passengers 2,500 2,500 3,483 3,483 

Average Fare $87.21 $87.21 $62.33 $62.33 

Load Factor 44.52% 44.52% 31.01% 31.01% 

Fare Revenue $218,023.26 $218,023.26 $217,046.81 $217,046.81 

Ancillaries $1,250.00 $1,250.00 $0.00 $0.00 

Total Revenue $219,273.26 $219,273.26 $217,046.81 $217,046.81 

Expenses 

Fuel $404,700.00 $404,700.00 $485,640.00 $485,640.00 

Aircraft Expense $167,797.75 $167,797.75 $201 ,357.30 $201,357.30 

Maintenance and Reserves $262,200.00 $262,200.00 $314,640.00 $314,640.00 

Staff $185,475.00 $185,475.00 $184,870.00 $184,870.00 

Marketing and Distribution $10,000.00 $10,000.00 $13,930.00 $13,930.00 

Other Indirect Costs $62,898.41 $36,750.00 $44,933.35 $13,541.16 

Total Costs $1,093,071.16 $1,066,922.75 $1 ,245,370.66 $1,213,978.46 

Route Profit or Loss $54,653.56 $53,346.14 $62,268.53 $60,698.92 

Margin 5.00% 5.00% 5.00% 5.00% 

Subsidy $928,451.46 $900,995.63 $1 ,090,592.38 $1 ,057,630.57 

Total Subsidy $3,977,670 
BOUTIQUE AIR 

340 Pine Street, Suite 503 

San Francisco, CA 

t. 415-449-0505 

f. 415-738-7671 

Option 1 - Schedule 

12 

Depart Arrive Service Days Depart 

6:00am 7:06am Monday - Friday 7:21am 

8:42am 9:48am Everyday 10:03 am 

11:52 am 12:58 pm Monday - Friday 2:13pm 

3:34pm 4:40pm Everyday 5:35pm 

Depart Arrive Service Days Depart 

5:00am 7:50am Monday - Saturday 10:47 am 

11:24 am 2:14pm Sunday- Monday 6:02pm 

to 

Arrive Service Days 

8:27am Monday - Friday 

11:09 am Everyday 

3:19pm Monday - Friday 

6:41pm Everyday 

Arrive Service Days 

11:37 am Monday - Saturday 

6:52pm Sunday - Monday 

These schedules are representative of what the final schedules may be. Final schedules will be 

determined after more community input has been gathered. 
Option 2 - Bid 

12 

Origin 

Destination 

Operations 

Flights 

Block Hours 

Seats 

ASMs 

Revenue 

Passengers 

Average Fare 

Load Factor 

Fare Revenue 

Ancillaries 

Total Revenue 

Expenses 

Fuel 

Aircraft Expense 

Maintenance and Reserves 

Staff 

Marketing and Distribution 

Other Indirect Costs 

Total Costs 

Route Profit or Loss 

Margin 

Subsidy 

Total Subsidy 

BOUTIQUE AIR 

340 Pine Street, Suite 503 

San Francisco, CA 

t. 415-449.0505 

f. 415.738.7671 

2 

CNM DFW 

DFW CNM 

624 624 

1,140 1,140 

5,616 5,616 

2,369,952 2,369,952 

2,500 2,500 

$87.00 $87.00 

44.52% 44.52% 

$218,023.00 $218,023.00 

$1,250.00 $1,250.00 

$219,273.26 $219,273.26 

$404,700.00 $404,700.00 

$199,785.95 $199,785.95 

$262,200.00 $262,200.00 

$185,475.00 $185,475.00 

$10,000.00 $10,000.00 

$62,148.41 $36,000.00 

$1 '124,309.36 $1 ,098,160.95 

$56,215.47 $54,908.05 

5.00% 5.00% 

$961 ,251.57 $933,795.75 

$2,965,492 

CNM ABQ 

ABQ CNM 

624 624 

684 684 

5,616 5,616 

1,297,296 1,297,296 

2,786 2,786 

$62.33 $62.33 

49.61% 49.61% 

$173,637.00 $173,637.00 

$0.00 $0.00 

$173,637.45 $173,637.45 

$242,820.00 $242,820.00 

$119,871.57 $119,871.57 

$157,320.00 $157,320.00 

$123,310.00 $123,310.00 

$11 '144.00 $11,144.00 

$28,487.26 $12,791.16 

$682,952.83 $667,256.73 

$34,147.64 $33,362.84 

5.00% 5.00% 

$543,463.02 $526,982.12 
BOUTIQUE AIR 

340 Pine Street, Suite 503 

San Francisco, CA 

t. 415-449-0505 

f. 415-738-7671 

Option 2 - Schedules 

1 2 

Depart Arrive Service Days Depart 

6:00am 7:06am Monday - Saturday 7:21am 

3:34pm 4:40pm Sunday - Monday 5:35pm 

From 

Depart Arrive Service Days Depart 

5:00am 7:50am Monday - Saturday 10:47 am 

11:24 am 2:14pm Sunday- Monday 6:02pm 

to 

Arrive Service Days 

8:27am Monday - Saturday 

6:41pm Sunday - Monday 

Arrive Service Days 

11:37 am Monday- Saturday 

6:52pm Sunday - Monday 

These schedules are representative of what the final schedules may be. Final schedules will be 

determined after more community input has been gathered. 
Option 3 - Bid 

12 W@'l!eK 

Origin 

Destination 

Operations 

Flights 

Block Hours 

Seats 

ASMs 

Revenue 

Passengers 

Average Fare 

Load Factor 

Fare Revenue 

Ancillaries 

Total Revenue 

Expenses 

Fuel 

Aircraft Expense 

Maintenance and Reserves 

Staff 

Marketing and Distribution 

Other Indirect Costs 

Total Costs 

Route Profit or Loss 

Margin 

Subsidy 

Total Subsidy 

BOUTIQUE AIR 

340 Pine Street, Suite 503 

San Francisco, CA 

t. 415-449.0505 

f. 415.738.7671 

CNM 

DFW 

624 

1,140 

5,616 

2,369,952 

2,750 

$87.21 

48.97% 

$239,825.58 

$1,375.00 

$241,200.58 

$404,700.00 

$246,842.98 

$262,200.00 

$199,275.00 

$11,000.00 

$67,248.41 

DFW 

CNM 

624 

1,140 

5,616 

2,369,952 

2,750 

$87.21 

48.97% 

$239,825.58 

$1,375.00 

$241 ,200.58 

$404,700.00 

$246,842.98 

$262,200.00 

$199,275.00 

$11,000.00 

$41,100.00 

$1 '191 ,266.38 $1 '165, 117.98 

$59,563.32 $58,255.90 

5.00% 5.00% 

$1 ,009,629.12 $982,173.29 

$1,991,802 
BOUTIQUE AIR 

340 Pine Street, Suite 503 

San Francisco, CA 

t. 415-449.0505 

f. 415.738.7671 

Option 3 - Schedules 

12 Vii!PII"H 

Depart Arrive Service Days Depart 

5:00am 7:50am Monday - Saturday 10:47 am 

11:24 am 2:14pm Sunday - Monday 6:02pm 

Arrive Service Days 

11:37 am Monday - Saturday 

6:52pm Sunday- Monday 

These schedules are representative of what the final schedules may be. Final schedules will be 

determined after more community input has been gathered.