Proposal to Provide Essential Air Service

at

El Dorado/Camden, Arkansas

Harrison, Arkansas 

Hot Springs, Arkansas 

Docket DOT-OST-1997-2935

May 16, 2013

Direct Inquiries Regarding this Proposal to:

Shane Storz, CEO

Air Choice One Airlines

12300 Old Tesson Road, Suite 200 F, Saint Louis, MO 63128

Phone: (866) 435-9847 Fax: (314) 843-8527 E-mail: shane@airchoiceone.com

Multi-Aero Inc. 

d/b/a

Air Choice One
Our Commitment

05/16/2013

Air Choice One is aware of the many challenges facing the Harrison, Hot Springs, and El Dorado, Arkansas, 

communities. This proposal will give the best access to the national transportation system for the communities 

at reasonable prices. We understand the efforts of a dedicated air carrier are critical to having scheduled 

airline service in the future. We have proven our strategy works in the neighboring community of Jonesboro, 

Arkansas and with our other EAS communities. We are committed to delivering these same dramatic 

increases in enplanements and sustaining these numbers over time. 

As a provision for the lack of TSA out of your airports, our non-sterile service will include dedicated shuttle van 

services at Lambert St. Louis International Airport and Memphis International Airport. Our private shuttle van 

will increase the ease of travel for our passengers and simplify the process of connecting to other carriers. 

Additionally, this proposal allocates substantial resources to support marketing efforts. Achievements in our 

other EAS markets demonstrate that our marketing strategies are successful. Through on-site community 

outreach, community-specific advertising, consistent flight schedules, and outstanding customer service we 

will build consumer recognition in the community and drive passengers back to your airport. 

We commit to providing you with outstanding service. We will continue working with you throughout our term 

to provide the next level of air service that will bring us all success.
Our Fleet

Cessna Grand Caravan

05/16/2013

Exceptional Cargo Space

Well-Appointed Cabin

Proven Reliability
Market Growth Strategy – Marketing 

Investment

05/16/2013

Air Choice One reinvests in our served communities and will grow ridership

• TRADITIONAL MEDIA

• Radio-Talk Shows/Commercials

• TV Commercials and Event Coverage

• Print-Newspaper/Magazines

• Billboards

• Web Based

– E-Blasts

– Monthly E-Mail Promotions

– City Representation on Our Website 

• SOCIAL MEDIA

• Twitter, Facebook, Linked In

• INTERACTIVE MEDIA

• Contests

• You Tube/Videos 

• EVENTS AND SPONSORSHIPS

• Local Charitable Support-March of Dimes, Make-A-Wish Foundation, Red Cross, etc.

• Business/Community Support-Golf Tournaments, Business Luncheons, Air Shows, etc.

• LOCAL TICKET OFFICE
Marketing Growth Strategy –

New Hub, New Opportunities

05/16/2013

ST. LOUIS’ COMBO OF LOW FARE CARRIERS AND ENDLESS CONNECTIONS ARE THE 

KEY TO SELLING MORE TICKETS AND GROWING RIDERSHIP!

• 234 Daily Departures to 64 

Domestic & International 

Markets

•Over 24,000 Daily Outbound 

Seats

St. Louis

Connects You

to the World!

Source: St. Louis International Airport
Marketing Growth Strategy –

New Hub, New Opportunities

05/16/2013

Source: St. Louis International Airport/Diio schedule file

2.0

4.0

6.0

8.0

10.0

12.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2007 2008 2009 2010 2011 2012 2013

Seats in Millions (Year ending)

BNA MCI MEM STL

STL air service 

is growing while 

MEM continues 

to decline

This is a trend 

we see 

continuing with 

STL ultimately 

being the 

predominant 

airport in the 

mid-west
Marketing Growth Strategy –

New Hub, New Opportunities

05/16/2013

Source: St. Louis International Airport/T100 non-directional average

Jonesboro 

passenger 

count increased 

significantly 

with move to 

STL

The same can 

be true of HRO

Airline HUB Destination

3rd Quarter Passengers

2011 2012 Change

3E STL JBR Jonesboro, AR 1,441 1,441 

K5 MEM

ELD El Dorado, AR 382 195 (187)

HOT Hot Springs, AR 260 187 (74)

HRO Harrison, AR 821 840 20 

JBR Jonesboro, AR 313 (313)

Total 1,776 2,663 887 

• We are Offering Harrison Two Hubs to Better Serve the Community

• Dual Hubs Increase Connectivity

• Increased Passenger Options Grow Ridership

• Air Choice One Will Increase Capacity Through Additional Unsubsidized Flight Segments 

Should Passenger Usage Warrant

• Flight Patterns of the Current Carrier Make it Impossible to Determine Actual Passenger 

Loads Originating/Ending in Harrison verses Pass-Thru Traffic 
Jonesboro: A Success Story

05/16/2013

944 910 925

667 664

928

79 97 100

23

249

691 692

877 863

1,082

1,030

769

0

200

400

600

800

1,000

1,200

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

Passenggers O & D

Month

JONESBORO, AR - PASSENGER ORIGIN & DESTINATION

DOT FY 2012-2013

DOT FY 2011-2012

Previous Airline
Meeting DOT Challenges

05/16/2013

• Order Re-Selecting Carrier for Burlington, IA, & Decatur, IL (December 22, 2011)

– DOT Challenge

• “This selection may be extended an additional three years at both communities, if Air Choice One 

fully implements an electronic ticketing and baggage agreement with a major airline with a hub 

operation at Chicago O’Hare and/or St. Louis, by January 31, 2013.” (Source: www.regulations.gov

Order: 2011-12-17 Served: December 22, 2011 DOT-OST-2001-8731 & DOT-OST-2006-23929)

• Order Extending Service Period for Burlington, IA, & Decatur, IL (December 31, 2012)

– DOT Decision

• “Since Air Choice One fully implemented its distribution capabilities in advance of the January 31, 

2013, date as described in Order 2011-12-17, we will extend Air Choice One’s service period by three 

years, from February 1, 2013, through January 31, 2016.” (Source: www.regulations.gov Order 2012-

12-23 Served: December 31, 2012 DOT-OST-2001-8731 & DOT-OST-2006-23929) 

• Order Extending Service Period for Jonesboro, AR (February 25, 2013)

– DOT Decision

• “Because Jonesboro’s continued eligibility was in flux at the time of the carrier-selection Order in 

December 2011, and because Air Choice One and the community have significantly increased 

passenger usage since the carrier inaugurated service, we will extend Air Choice One’s service period 

for an additional 12 months, through February 28, 2014.” (Source: www.regulations.gov Order: 2013-

2-24 Served: February 25, 2013 Docket DOT-OST-1997-2935)
Options Index – Standalone Service

Harrison, Arkansas

05/16/2013

OPTION 3, 2 YEAR SERVICE WITH OPTIONAL DISCOUNT FOR 4 YEAR TERM – MEM SERVICE

Harrison, Arkansas – Memphis International 

Cessna Grand Caravan 18 Round Trips Per Week

OPTION 1, 2 YEAR SERVICE WITH OPTIONAL DISCOUNT FOR 4 YEAR TERM

DUAL HUBS – MEM & STL SERVICE

Harrison, Arkansas – Memphis International & St. Louis Lambert International

Cessna Grand Caravan 10 RT/MEM + 8 RT/STL = 18 Round Trips Per Week

OPTION 2, 2 YEAR SERVICE WITH OPTIONAL DISCOUNT FOR 4 YEAR TERM – STL SERVICE

Harrison, Arkansas – St. Louis Lambert International

Cessna Grand Caravan 18 Round Trips Per Week
Harrison, Arkansas – Dual Hubs

Option 1: 2 Year Standalone Service With Discount For 4 Year Term

18 Total Round Trips Per Week – Based on 98% Completion Rate

05/16/2013

Harrison, Arkansas – Dual Hubs – Memphis International & St. Louis Lambert International – Caravan

Operation Revenues

HRO-MEM & HRO-STL Revenues $ 648,600

Other Revenues 6,486

Total Operating Revenues $ 655,086

Direct Operating Expenses

Flying Operations $ 308,235

Fuel and Oil 701,164

Maintenance 580,905

Aircraft Leases 425,000

Total Direct $2,015,304

Marketing & Distribution 143,700

Indirect 650,063

Total Operating Expenses $2,809,067

Operating Loss $2,153,981

Profit Element (5% total Oper. Exp.) 140,454

Compensation Required $2,294,435

Compensation per PAX $244

Compensation per Departure $1,247

# Passengers: 9,400

Average Fare: $69.00

Departures: 1,840

Block Hours: 2,371

Revenue Passenger Miles: 2,006,400

Available Seat Miles: 3,121,198

Departure Arrival

Representative Schedule – Monday-Friday

HRO 6:00 AM MEM 7:15 AM

MEM 7:30 AM HRO 8:45 AM

HRO 4:30 PM MEM 5:45 PM

MEM 6:05 PM HRO 7:20 PM

Representative Schedule – Sunday, Monday, 

Thursday, Friday

HRO 9:30 AM STL 10:50 AM

STL 12:00 PM HRO 1:20 PM

STL 2:00 PM HRO 3:20 PM

HRO 2:15 PM STL 3:35 PM

DISCOUNTED SUBSIDY

$2,271,491/Year

$1,235/Departure

DISCOUNT FOR 4-YEAR TERM
Harrison, Arkansas – St. Louis Lambert International 

Option 2: 2 Year Standalone Service With Discount For 4 Year Term

18 Total Round Trips Per Week – Based on 98% Completion Rate

05/16/2013

Harrison, Arkansas – St. Louis Lambert International – Caravan

Operation Revenues

HRO-STL Revenues $ 726,800

Other Revenues 7,268

Total Operating Revenues $ 734,068

Direct Operating Expenses

Flying Operations $ 334,807

Fuel and Oil 754,282

Maintenance 643,860

Aircraft Leases 425,000

Total Direct $2,157,949

Marketing & Distribution 208,539

Indirect 462,062

Total Operating Expenses $2,828,550

Operating Loss $2,094,482

Profit Element (5% total Oper. Exp.) 141,428

Compensation Required $2,235,910

Compensation per PAX $243

Compensation per Departure $1,215

# Passengers: 9,200

Average Fare: $79.00

Departures: 1,840

Block Hours: 2,575

Revenue Passenger Miles: 2,125,200

Available Seat Miles: 3,390,267

Representative Schedule

Departure Arrival

HRO 6:00 AM STL 7:20 AM

STL 7:45 AM HRO 9:05 AM

HRO 10:00 AM STL 11:20 AM

STL 12:00 PM HRO 1:20 PM

HRO 4:30 PM STL 5:50 PM

STL 6:05 PM HRO 7:25 PM

DISCOUNTED SUBSIDY

$2,213,551/Year

$1,203/Departure

DISCOUNT FOR 4-YEAR TERM
Harrison, Arkansas – Memphis International 

Option 3: 2 Year Standalone Service With Discount For 4 Year Term

18 Total Round Trips Per Week – Based on 98% Completion Rate

05/16/2013

Harrison, Arkansas – Memphis International – Caravan

Operation Revenues

HRO-MEM Revenues $ 621,000

Other Revenues 6,210

Total Operating Revenues $ 627,210

Direct Operating Expenses

Flying Operations $ 286,978

Fuel and Oil 658,668

Maintenance 551,880

Aircraft Leases 425,000

Total Direct $1,922,526

Marketing & Distribution 144,258

Indirect 523,027

Total Operating Expenses $2,589,811

Operating Loss $1,962,601

Profit Element (5% total Oper. Exp.) 129,491

Compensation Required $2,092,092

Compensation per PAX $232

Compensation per Departure $1,137

# Passengers: 9,000

Average Fare: $69.00

Departures: 1,840

Block Hours: 2,208

Revenue Passenger Miles: 1,782,000

Available Seat Miles: 2,905,943

Representative Schedule

Departure Arrival

HRO 6:00 AM MEM 7:15 AM

MEM 7:30 AM HRO 8:45 AM

HRO 10:00 AM MEM 11:15 AM

MEM 12:00 PM HRO 1:15 PM

HRO 4:30 PM MEM 5:45 PM

MEM 6:05 PM HRO 7:20 PM

DISCOUNTED SUBSIDY

$2,071,171/Year

$1,126/Departure

DISCOUNT FOR 4-YEAR TERM
Options Index – Inseparable Service

Hot Springs, AR & El Dorado/Camden, AR

05/16/2013

OPTION 1, 2 YEAR SERVICE WITH OPTIONAL DISCOUNT FOR 4 YEAR TERM

INSEPARABLE – MEM SERVICE

Hot Springs, Arkansas & El Dorado/Camden, Arkansas – Memphis International

Cessna Grand Caravan 18 RT/HOT + 18 RT/ELD Per Week
Hot Springs & El Dorado/Camden, AR 

Option 1: 2 Year Inseparable Service With Discount For 4 Year Term

HOT & ELD - 18 Total Round Trips Each Per Week - Based on 98% Completion Rate

05/16/2013

Operation Revenues

HOT-MEM Revenues $ 454,300

Other Revenues 4,543

Total Operating Revenues $ 458,843

Direct Operating Expenses

Flying Operations $ 263,063

Fuel and Oil 603,780

Maintenance 505,890

Aircraft Leases 425,000

Total Direct $1,797,733

Marketing & Distribution 105,535

Indirect 395,339

Total Operating Expenses $2,298,607

Operating Loss $1,839,764

Profit Element (5% total Oper. Exp.) 114,930

Compensation Required $1,954,694

Compensation per PAX $254

Compensation per Departure $1,062

Operation Revenues

ELD-MEM Revenues $ 424,800

Other Revenues 4,248

Total Operating Revenues $ 429,048

Direct Operating Expenses

Flying Operations $ 319,355

Fuel and Oil 668,078

Maintenance 581,681

Aircraft Leases 425,000

Total Direct $1,994,114

Marketing & Distribution 98,683

Indirect 395,339

Total Operating Expenses $2,488,136

Operating Loss $2,059,088

Profit Element (5% total Oper. Exp.) 124,407

Compensation Required $2,183,495

Compensation per PAX $303

Compensation per Departure $1,187

Inseparable Service – Hot Springs, AR & El Dorado/Camden, AR – Memphis International – Cessna Caravan

Total Subsidy Required for HOT & ELD Inseparable 2 Year Service: $4,138,189 (Discounted for 4 Year Term: $4,096,807)
Hot Springs & El Dorado/Camden, AR

Option 1: 2 Year Inseparable Service

HOT & ELD - 18 Total Round Trips Each Per Week - Based on 98% Completion Rate

05/16/2013

EL DORADO, AR

Representative Schedule

Departure Arrival

ELD 6:00 AM MEM 7:15 AM

MEM 8:45 AM ELD 10:00 AM

ELD 11:30 AM MEM 12:45 PM

MEM 1:30 PM ELD 2:45 PM

ELD 4:30 PM MEM 5:45 PM

MEM 6:30 PM ELD 7:45 PM

HOT SPRINGS, AR

Representative Schedule

Departure Arrival

HOT 6:30 AM MEM 7:40 AM

MEM 8:20 AM HOT 9:30 AM

HOT 11:00 AM MEM 12:10 PM

MEM 1:00 PM HOT 2:10 PM

HOT 4:00 PM MEM 5:10 PM

MEM 6:00 PM HOT 7:10 PM

# Passengers: 7,700

Average Fare: $59.00

Departures: 1,840

Block Hours: 2,024

Revenue Passenger Miles: 1,524,600

Available Seat Miles: 2,905,943

# Passengers: 7,200

Average Fare: $59.00

Departures: 1,840

Block Hours: 2,281

Revenue Passenger Miles: 1,663,200

Available Seat Miles: 3,390,267

Inseparable Service – Hot Springs, AR & El Dorado/Camden, AR – Memphis International – Cessna Caravan
Air Choice One Has The Keys

To Your Success

05/16/2013

TSA SECURITY 

PROGRAM