BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

__________________________________________ 

)

Essential Air Service at )

)

MARION/HERRIN, IL ) OST-2000-7881

)

Under 49 U.S.C. §41731 et seq. )

__________________________________________ 

GULFSTREAM INTERNATIONAL AIRLINES PROPOSAL 

TO PROVIDE SUBSIDIZED AIR SERICE AT 

MARION/HERRIN, ILLINOIS

Correspondence with regard to this document should be addressed to:

Mickey Bowman

Vice President of Corporate Development

Gulfstream International Airlines

3201 Griffin Road, 4th Floor

Ft. Lauderdale, FL 33312

Telephone: 270-689-2180

Fax: 270-689-2180

E-Mail: mbowman@gulfstreamair.com

Gulfstream International Airlines (“Gulfstream”) cordially submits its proposals to provide subsidized air 

service to Marion/Herrin, Illinois. Gulfstream hereby offers one option for service.

Gulfstream proposes to operate flights under its independent Gulfstream International Airlines identity to 

the hub airport of Memphis, Tennessee. Gulfstream has maintained interline ticketing and baggage 

agreements with most legacy carriers and will schedule its flights to maximize connecting opportunities. 

Gulfstream contends that reasonable local fares will stimulate demand and the variety of destinations 

available from Memphis will allow this market to grow. Toward that end we will establish a fare structure 

predicated on a $150 roundtrip fare between this city and Memphis. Gulfstream flights will be available 

for sale through all major reservation portals and we will maintain our own web based booking site as well 

as a reservation call center.

It should also be noted that Gulfstream is in discussions with a major legacy carrier in an effort to offer a 

codeshare on these flights. Should those efforts be successful, Marion/Herrin passengers will enjoy 

amenities including through pricing and baggage check, advance seat selection, inclusion in the legacy 

carrier frequent flyer program and reservation service through all major online portals as well as the legacy 

carrier’s own website and call center. Moreover Marion/Herrin would benefit from its inclusion into a truly 

global travel network and would enjoy heightened visibility as a result.

In compliance with Public Law 100-223, Gulfstream proposes to operate these flights using Beech 1900D 

turboprops that are pressurized and accommodate 19 passengers. The 1900D features stand up headroom 

with ample cargo capacity to accommodate even bulky military duffle bags. 
One of the hallmarks of the Gulfstream operation is our ability to provide safe and reliable transportation. 

Toward this end, Gulfstream will establish a regional maintenance base in the Memphis region in support

of these flights. This move will add roughly 12 technical support jobs to the local economy. Additionally 

this proposal includes a second aircraft that would be a dedicated spare. With this spare located in 

Memphis, we would have great flexibility in responding to any operational challenges and assures this 

community receives the level of operational performance it deserves Gulfstream is committed to building 

its presence in Memphis and the establishment of these basic bits of infrastructure will provide a solid and 

reliable base for the future. This bid is contingent on Gulfstream being selected as the Essential Air Service 

provider at Muscle Shoals, AL. This stipulation is necessary as much of the cost of the necessary 

infrastructure to support these flights is shared by that bid.

Service Option 1 (Bid Contingent on Gulfstream’s Selection as the EAS provider in Muscle Shoals, AL)

36 Weekly frequencies between Marion/Herrin, Illinois and Memphis, Tennessee.

Gulfstream proposes to operate these flights under it own independent marketing identity, though it will 

work to secure a Legacy Carrier codeshare relationship prior to actual service start. The timing of these 

flights will be optimized for connections to and from other airline flights at Memphis The primary legacy 

carrier at Memphis operates three large, omni-directional banks per day that would be the focus of schedule 

design. Gulfstream proposes to encourage connecting traffic by using a simplified local fee structure 

whereby passengers connecting to or from other airline flights would pay only the low, local fare in 

addition to the low fares already a feature at Memphis. The basic service pattern would consist of three

roundtrips each weekday to Memphis. A single roundtrip would operate on Saturdays and two roundtrips 

would be operated on Sundays to Memphis. Gulfstream believes that given the amount of traffic produced 

in recent years at Marion/Herrin the resultant 57 seats per service day will be more than adequate to address 

the communities’ needs. 

Gulfstream Airlines

Sample Flight Schedule

Service Option 1

FROM TO DEP ARR FLT EQUIP FREQ STOP

STA STA TIME TIME NUM

MARION/HERRIN MEMPHIS 0640 0750 2601 BE1 X7 0

MARION/HERRIN MEMPHIS 1140 1250 2603 BE1 X6 0

MARION/HERRIN MEMPHIS 1635 1745 2605 BE1 X6 0

MEMPHIS MARION/HERRIN 0930 1040 2602 BE1 X7 0

MEMPHIS MARION/HERRIN 1445 1555 2604 BE1 X6 0

MEMPHIS MARION/HERRIN 1935 2045 2606 BE1 X6 0

(Note: This Schedule is for illustrative purposes and may not reflect the final published product)
GULFSTREAM INTERNATIONAL AIRLINES

Essential Air Service Proposal

Marion/Herrin, IL - Memphis, TN

(CONTINGENT BID) Option 1

Marion/Herrin, 

IL.

Hub Served Memphis

Number of Roundtrips per Service Day 3

(3 non-stop)

Operating Statistics

Assumed Completion % 98%

Annual Adjusted Block Hours 2,146.21

Annual Adjusted Departures 1,839.61

Annual Adjusted ASMs 6,815,737

Annual RPMs 2,583,839

Projected Load Factor 37.9%

Revenue Projections

Enplaned Passengers 13,250

Mileage

(Average as 

Operated) 195

Average Fare $ 69.38 

Passenger Revenue $ 919,251 

Expense Projections

Flight Operations $376,251

Ownership $323,952

Maintenance $771,548

Reservations, Stations & Administration $1,001,474

Fuel $901,406

Marketing $12,000

Total Annual Expenses $3,386,632

Projected Profit / (Loss) ($2,467,381)

Profit Element @ 5% $169,332

Annual Subsidy Required $2,636,713

Subsidy per Departure $1,433.30

Subsidy per Passenger $198.99
Memphis affords access to 74 non stop destinations on 186 domestic departures per day.

Memphis affords access to 5 international destinations on 5 international departures per day including daily 

access to the third largest international connecting hub in the world, Amsterdam’s Schiphol International.
In conclusion, Gulfstream believes this proposal will provide the community of Marion/Herrin with a 

superior air service option. We feel the passengers will benefit from the fact that Memphis is a primary

logistical and business center with an airport that serves as a hub for a major legacy carrier. In 2009 over 

5,000,000 passengers enplaned in Memphis. Memphis enjoys roughly 191 daily departures with non-stop 

service to some 79 destinations around the world. Gulfstream will provide this service on stand up, 

pressurized airliners and the infrastructure we will establish in support of this operation will add jobs to the 

local economy. Additionally the integrity of service that has been a hallmark of the Gulfstream operation 

will assure both dependability and reliability to the traveling public and result in increased ridership and 

passenger satisfaction.

Respectfully Submitted: January 6, 2011

______________________

Mickey Bowman

Vice President of Corporate Development

Gulfstream International Airlines