Before the United States Department of Transportation

August 15, 2012

Proposal to Provide Essential Air Service at

ATHENS, GEORGIA

Under 49 U.S.C. 41731 et seq.

Docket OST-2002-11348

SeaPort Airlines, Inc.

Proposal to Provide Essential Air Service at

Athens, Georgia

By Order 2012-7-15, the Department requested proposals for Essential Air Service (EAS) at Athens, 

Georgia no later than August 1, 2012. By Memorandum dated July 19, 2012, at the request of 

SeaPort Airlines and without objection from the community, the Department extended the due date 

for proposals until August 15, 2012.

Pursuant to that Memorandum, SeaPort Airlines, Inc. respectfully submits this proposal to provide 

subsidized essential air service to the community of Athens, Georgia. The proposal has two service 

options that connect Athens-Ben Epps Airport with the national air transportation system via 

Charlotte (CLT) and/or Nashville (BNA). Dependent on the service option selected, SeaPort Airlines 

is requesting first year annual subsidy levels of $1,553,093 or $1,616,887, increasing to $1,630,410 

or $1,697,420 during the second year of service.

After this proposal is docketed, SeaPort Airlines will contact the Airport Manager to schedule a 

meeting in Athens at which time we will explain our proposal in detail and answer any questions of 

the community. In the interim and throughout the carrier selection process, questions regarding this 

proposal should be directed to:

Timothy Sieber

Vice President – Commercial

SeaPort Airlines, Inc.

7505 NE Airport Way

Portland, OR 97218

(971) 340-1716

tsieber@seaportair.com
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Description of Proposed Service

Company Introduction

SeaPort Airlines, Inc. is a FAA certified scheduled airline with 30 years of experience in commercial 

aviation. The company is headquartered in Portland, Oregon and has operational bases at Portland, 

Memphis (Tennessee), and Juneau (Alaska). Our approximately 180 professionals operate a fleet of 

14 aircraft on an average of 90 daily departures to 20 cities in eight states. Presently, service to 

seven of these communities is provided under the EAS program: Excursion Inlet, Alaska; Pendleton, 

Oregon; El Dorado, Hot Springs, and Harrison, Arkansas; Salina, Kansas; and Jackson, Tennessee.

The focus of SeaPort’s business model is providing affordable and reliable service to small and rural 

communities that the global airline brands either characterize as no longer being strategically 

important to their own business model, or because the passenger ticket revenue generated by that 

community is not sufficient to support the cost structure and increasingly larger aircraft of regional 

airlines that provide capacity to those global brands on a contract (i.e., “fee per departure”) basis.

To serve these communities, SeaPort operates aircraft with operating costs and passenger capacity 

that are aligned with a market’s true demand, offers higher frequencies and departure time choices 

than possible with larger aircraft, sets all fares at a price point that is attractive to potential customers 

but does not result in shifting the true cost of air travel from the customer to the Department, and 

provides attentive and personal service that, in many of our markets, is commonly referred to as 

“The SeaPort Experience.”

When awarded an EAS contract, SeaPort Airlines begins service on time, on budget, and with fares 

at or below those in our service proposal. Once service is launched, we develop a partnership with 

each community by participating in local events, donation of tickets, regular dialogue with airport 

management and community leaders, and presentations to civic clubs and other similar 

organizations. These activities serve our own interests as equally as those of the community by 

fostering grass roots support for local air service, a positive relationship between the community and 

EAS carrier, and, as ridership builds, can lead to enplanement levels that ensure continued eligibility 

in the EAS program.

The strongest evidence of our commitment to provide quality air service and build community 

partnerships is demonstrated by the fact that in every one of our “Lower 48” EAS communities 

SeaPort Airlines has been re-selected as the EAS provider at the end of the first contract period. 

This includes the reselection of SeaPort Airlines earlier this year for a four-year contract (rather than 

the standard two-year contract) to in Salina, Kansas based on overwhelmingly positive support from 

the community, and the reselection of SeaPort Airlines at Pendleton, Oregon over a competing bid 

that offered 37-passenger aircraft and marketed with the brand of a major airline.

To further illustrate that our commitment and ability to deliver outstanding customer service, 

comments submitted by actual customers and airport managers in EAS communities are provided 

later in this proposal. Most importantly, however, we encourage the Athens community to contact 

the airport manager in any of our EAS communities to discuss the responsive, affordable, and 

reliable air service that we provide.

Further evidence of our commitment to providing reliable, customer-focused air service is 

demonstrated through community and customer comments that are provided later in this document.
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Aircraft

SeaPort Airlines presently provides service in all of our EAS communities with single engine 

aircraft and, as noted above, every one of our EAS communities in the Lower 48 has reselected us 

for additional contract periods with those same aircraft. We strongly believe that modern singleengine aircraft represent the best platform to provide EAS service that is frequent, affordable,

and reliable. 

The Cessna Caravan allows SeaPort Airlines to offer safe, comfortable, and affordable air 

transportation in a modern and economical aircraft. Given an urgent need to rebuild customer 

trust in the air service offered at Ben Epps Airport, the attributes of the Cessna Caravan are 

perfectly suited for this mission

Currently being produced in the USA, the “Caravan” was originally designed in the 1980’s to 

replace an aging fleet of piston-powered aircraft, such as the De Havilland Otter and Piper 

Chieftain. Over 2,000 Caravans have been built logging a total of over 12.5 million flight hours.

The Caravan is certified for single-pilot operation, however SeaPort typically operates with both 

a Captain and First Officer.

The large cargo pod on the Caravan allows for more baggage than can be accommodated on 

older piston twins (i.e., Piper Navajo and Cessna 402) and allows us to segregate passenger 

baggage for security purposes.1

 

1

The cargo pod on the Cessna Caravan has a maximum capacity of 111 cubic feet and 1,090 pounds. In 

comparison, the Piper Chieftain has a maximum capacity of 65 cubic feet and 700 pounds in its nose compartment 

and two wing lockers.
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Service Pattern

SeaPort Airlines is proposing the two following service options for consideration by the Athens 

community and the Department:

Option#1 12 roundtrips per week to Nashville International Airport

Option #2 − 12 roundtrips per week to Charlotte Douglas International Airport

and

6 roundtrips per week to Nashville International Airport 

In all cases, SeaPort Airlines would operate from the main terminals at Athens-Ben Epps Airport 

and both Charlotte and Nashville.2

In Order 2012-7-15, the Department noted low passenger levels of current EAS service at Athens 

and, as a result, requested proposals with frequency levels of two nonstop roundtrips per day (12 

per week). Option #1 provides the level of frequency requested by the Department by offering 12 

weekly nonstop to Nashville International Airport.

In our discussions with the community, however, it expressed a strong desire to see the return of 

Charlotte as a connecting point with the national air transportation system. With the belief that 

community support is necessary, Option #2 of our proposal includes 12 weekly roundtrips to 

Charlotte and 6 weekly roundtrips to Nashville International Airport. SeaPort recognizes that the total 

18 weekly roundtrips in our proposal is higher than number requested by the Department, however, 

for the following reasons we believe this option serves both the interests of the community and 

Department:

 Service to Charlotte is responsive to the community’s stated preference and provides access to 

a major hub for US Airways that includes a growing number of nonstop flights to Europe and US 

Airways’ first ever service to South America.

 The greater consumer choice afforded by the third frequency and second hub would increase 

the usefulness and marketability of EAS at Athens, allowing traffic at Ben Epps Airport to 

rebound more quickly and ease the path to the 10 enplanements per day necessary for 

continued eligibility in the EAS program.

 Nashville’s airline service profile is significantly different than Charlotte’s, increasing the 

overall benefits that a second hub typically offers. Specifically, Charlotte’s domination by a 

legacy carrier (US Airways) means that like other hub markets, the price of numerous

nonstop flights to many destinations is average fares higher than the national average. 

Conversely, Southwest Airlines operates 54% of all seats at Nashville International Airport 

meaning that it has fares which are less than the national average. 

 Despite 33% more departures and double the number of hub choices in Option #2, the

difference in subsidy requirement relative to Option #1 is a marginal $63,794 (4.0%) when 

revenues are factored. Operating AHN-BNA segments on a “open for sale” basis will allow 

 

2

SeaPort Airlines passenger and aircraft servicing at Nashville International Airport is contracted to American Eagle 

Airlines. If selected to provide EAS at Athens, the company will hire its own customer service personnel at Ben Epps 

Airport and contract passenger and aircraft servicing at Charlotte Douglas International Airport to another airline. 
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SeaPort Airlines to rotate aircraft into our existing Mid-South maintenance base, ensuring that 

Athens customers are provided with reliable service to their preferred hub (Charlotte) but in a 

manner than minimizes subsidy requirements.3

For these reasons, and specifically our understanding that the community wants service to Charlotte, 

SeaPort Airlines believes that Option #2 is the superior of the two proposals, one that provides the 

best opportunity for Athens to achieve enplanement levels needed to maintain eligibility, and 

represents a creative (yet appropriate) use of EAS funds to restore a market which under the current 

EAS provider has experienced a significant loss of ridership.

Illustrative Schedule 

Illustrative schedules for both service options are provided below. If selected to Athens, however, 

final schedules will not be established without community input.

We believe the schedule outlined for both service patterns provide a choice of departure times for 

the consumer while allowing us to route the aircraft to our Memphis maintenance base via a revenue 

flight segment. This benefits the Department by resulting in a lower overall subsidy request. 

Pricing Model

In all markets, SeaPort Airlines offers a range of fares all priced on a one-way basis. The highest 

price point (branded as “FullFlex”) provides a customer with total flexibility to change travel plans 

without incurring any change fee or, if desired, receive a total refund. The lowest price point

(branded as “NoFlex”) is best suited for customers who are certain about their travel plans and 

requires an advance purchase of 21-days, is non-refundable, and does not permit any changes from 

the original booked itinerary. In between is a range of fares (“Flex4Free” and “Flex4Fee”) that 

provides a choice of price-points based largely on how certain a customer is that their travel plans 

will not change. Except for the two highest price points, fares are also subject to capacity controls 

 

3

In earlier EAS proceedings, Department staff has indicated to us that repositioning costs necessary for operational 

reasons were permissible for inclusion in proposals provided that the resultant subsidy request was compliant with 

program statutory requirements for maintaining EAS eligibility. To this end, SeaPort Airlines calculated a subsidy 

requirement on the basis of operating 12 weekly roundtrips to Charlotte along with 3 weekly rotations (assuming zero 

revenue) between Athens and our maintenance base at Memphis International Airport. This approach would have 

required annual subsidy of $1,717,111 or $100,224 greater than Option #2 but without the positive impacts that a 

third frequency and second destination would have toward the minimum requirement of 10 enplanements per day.

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

6:30am 7:20am ExSun 0 8:30am 11:10am ExSun 0

3:00pm 3:50pm ExSat 0 4:30pm 7:10pm ExSat 0

Depart Arrive Frequency Stops Depart Arrive Frequency Stops

6:30am 7:25am ExSun 0 8:30am 9:25am ExSun 0

4:00pm 4:55pm ExSat 0 6:00pm 6:55pm ExSat 0

10:00am 10:50am ExSun 0 12:30pm 3:10pm ExSat 0

From Athens to Nashville From Nashville to Athens

Option #1

12 Weekly Roundtrips: Athens - Nashville

Aircraft Type: Cessna Caravan

From Athens to Nashville From Nashville to Athens

12 Weekly Roundtrips: Athens - Charlotte

Aircraft Type: Cessna Caravan

From Athens to Charlotte From Charlotte to Athens

6 Weekly Roundtrips: Athens - Nashville

Option #2
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meaning that the farther in advance a reservation is made, the more likely a customer is to get a 

lower fare. 

This strategy, which is not materially different from other airlines, allows SeaPort to set price points

in a manner that makes our service attractive to virtually all segments of the market who might utilize 

air service at Athens-Ben Epps Airport. This, combined with highly reliable service, will be an 

effective tool toward reaching the minimum 10 enplanement per day threshold necessary for 

continued participation in the EAS program.

The table below summarizes the range of proposed ticket prices in the Athens market, as of the date 

of this proposal and after expiration of introductory fares, along with the rules and restrictions 

applicable to each price point.

SeaPort Airlines Illustrative Fares

Athens, Georgia

NOTE: Listed price points include Federal Excise Tax, segments fee, and 9/11 security fee

SeaPort Airlines projects an average ticket price of $68.69 and $91.04 to Charlotte and Nashville, 

respectively, from Athens-Ben Epps Airport. Net of taxes and fees, revenue to SeaPort and the basis 

for calculation of subsidy requirements, is projected to be $58.22 per customer traveling to/from 

Charlotte and $78.99 per customer traveling to/from Nashville. 

During the first 30 days of service, SeaPort Airlines would offer an introductory fare of $39 (including 

all taxes and fees) on every seat, on every flight to and from Athens. Our experience in Jackson 

indicates that this type of pricing incentive is necessary to entice customers and provide the 

opportunity to differentiate SeaPort Airlines from the current EAS provider.

Interline Connectivity & GDS Display

SeaPort presently has an interline ticketing agreement with US Airways, the dominant carrier at 

Charlotte Douglas International Airport and is currently implementing an interline agreement, 

including E-ticketing and thru baggage, with another major airline that is scheduled to be available 

for sale on September 20, 2012. Upon completion of this implementation, agreements with other 

carriers will be sought and dialogues are currently underway with three other large airlines.

SeaPort Airlines tickets may be purchased by calling our toll-free reservation number, online at 

www.SeaPortAirlines.com, at any travel agent connected to the major global distribution systems

(GDS), or all of the major online travel agencies and meta-searchers such as Orbitz, Travelocity, 

Expedia, Kayak, Hipmunk, and CheapoAir. 

Summary of Fare Rules FullFlex Free2Flex NoFlex

Advance Purchase - # Days 0 3 3 7 14 21

Refundable Yes No No No No No

Change Fee $0 $0 $50 $50 $50 No Chg.

Fare Code YR B3F M3L H7L Q14L L21X

FlyerFlex Loyalty Program Credit 200% 150% 100% 100% 100% 0%

Athens to: FullFlex Free2Flex NoFlex

Charlotte (CLT) $119 $109 $89 $59 $49 $39

Nashville (BNA) $149 $139 $109 $79 $69 $59

Flex4Fee

Flex4Fee
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Marketing & Public Relations Strategy

Recognizing the low volume of traffic under the current EAS provider and the requirement of at least

10 enplanements per day for continued EAS eligibility, SeaPort is prepared to implement a 

comprehensive marketing and public relations strategy if selected to serve the Athens market. In 

addition to local advertising, these activities include:

 Local Event Marketing: Recognizing that visible participation in local events has been 

successful for both legacy and low-cost airlines, SeaPort has implemented a similar strategy in 

all of its communities. These have ranged from SeaPort Airlines community Easter egg hunts, to 

presenting at business expos, to hosting “after hours” events at local Chamber of Commerce 

meetings. In addition, SeaPort often makes “in kind” donations of tickets for use by local 

charities, either for their own business needs or as a fundraising tool (i.e., raffles, silent auctions, 

etc.).

 Social Media: SeaPort Airlines effectively leverages social media to engage our customers in a 

dynamic two-way conversation using Internet sites such as Facebook, Twitter, FourSquare & 

LinkedIn. We have found social media to be an excellent tool for generating passenger referrals 

and information sharing in our communities, and expect similar results in Athens.

 FlyerFlex Customer Rewards: During 2011, SeaPort launched a new and improved customer 

loyalty program called “FlyerFlex.” This program provides customers with a variety of benefits 

including free flights, service charge waivers, and bonus points. During the summer of 2012, 

SeaPort will be unveiling further enhancements to the FlyerFlex program including a wider range 

of travel award options and the ability for customers to check balances and redeem awards 

online.

 Value Accounts: SeaPort offers Corporate Value Accounts that encourage businesses to make 

a long-term investment in local air service by offering a variety of benefits, such as waivers to 

change fees and savings of 5% to 15%. It is important to note that unlike the corporate travel 

programs of major airlines that are not designed to serve small businesses in rural communities, 

SeaPort’s program can provide savings to a company of virtually any size and can be used by 

any employee of a company. 

In service proposals herein, SeaPort Airlines has allocated $50,000 per year for marketing and sales 

activity in Athens. This budget factors media costs in Athens media markets and that traffic typically 

originates in the EAS community rather than the hub market. This advertising budget will be 

effectively leveraged with “new media” such as social networking, blogs, opt-in email, etc., all 

intended to engage customers and build relationships on a more personal level.

Equally as important, there are lessons learned from our service in Jackson, TN (McKellar-Sipes 

Regional Airport) that will be valuable in the effort to rebuild traffic levels at Athens. At Jackson, we 

replaced the same carrier which presently serves Athens and, like Athens, that community 

experienced a significant decline in ridership over the carrier’s tenure as the EAS provider. While we 

implemented the marketing strategy described above, offered affordable fares, and operated with 

high dispatch reliability, the increase in traffic (while dramatic compared to our predecessor) was not 

as strong as we had hoped. 

In response, we reached out to decision makers at companies in the Jackson market known to 

generate demand for air travel. At these face-to-face meetings, we explained details of our service, 

emphasized differentiation with the previous operator, outlined the importance of supporting local air 

service and its impact on the Jackson economy, and communicated the requirements for continued 
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eligibility in the EAS program. This strategy, which effectively was a throwback to when airlines sold 

business travelers using sales calls rather than email, produced results.4 Enplanements at Jackson 

have increased and SeaPort intends to use this experience as a template for producing similar 

results for Athens. 

 

4 While traffic in the Jackson market has and continues to increase, the market remains below the 10 enplanement 

per day statutory requirement for continued EAS program eligibility. First, considering the well-publicized performance 

of the previous EAS operator, we knew that rebuilding customer trust in air service offered at McKellar-Sipes 

Regional Airport would be a “process” not an “event.” Second, the TSA has refused to provide passenger screening 

at Jackson, arrivals at the connecting hub must be in a non-sterile area away from the main passenger terminal and 

shuttling passengers in a van to the main terminal for connecting flights. We are working with elected representatives 

of the Jackson area, as well as bureaucratic channels, to reverse the TSA’s decision that is negatively impacting 

perception of local air service and impeding our ability to rebuild traffic.
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Community & Customer Feedback 

As noted by the Department in Order 2012-7-15, traffic at Athens-Ben Epps Airport has experienced 

a precipitous decline in recent years. Outlined in our service proposal, SeaPort Airlines has identified 

a number of specific tactics that it will undertake in order to rebuild traffic at Athens and meet the 

requirement of at least 10 enplanements per day for continued EAS eligibility. Most effective among 

these tactics, however, will simply be for SeaPort to do what it does best and does every day: 

Provide our customers with a great experience and build a partnership with the community. 

Provided below is a small sample of the comments that SeaPort Airlines regularly receives from our 

customers and from EAS community partners:

Our Essential Air Service Community Partners

“South Arkansas Regional Airport and the entire South-central Arkansas region suffered from the 

loss of air service previously provided by Mesa Airlines in the Spring of 2008. Unreliable service and 

a poor schedule were already negatively impacting enplanements before Mesa pulled out, but at that 

point, the nearest option for air service of any kind was almost a two hour drive away. After sorting 

through applications from many different interested carriers, the El Dorado Airport Commission, 

along with El Dorado’s Mayor, chose SeaPort to restore air service to South Arkansas. This was the 

beginning of a great partnership between SeaPort and our local community. 

“Working with SeaPort has been nothing but a pleasure from the bottom to the top of their 

organization, and their commitment to excellence shines through the glowing comments that I hear 

from people who fly with them. In addition to hearing comments from others, I have flown SeaPort 

on several occasions, and have come away from the experience thinking ‘This is how all air service 

should be.”

− Josh Zylks

Airport Manager

South Arkansas Regional Airport 

(Goodwin Field)

“Eastern Oregon Regional Airport at Pendleton had been struggling since schedule changes 

following 9/11 served by a carrier flying 37 seat aircraft. Low passenger count attributed to poor 

schedule, which then contributed to poorer passenger count. The carrier's solution was to bring in 

larger aircraft and fly to a different hub. The Airport and community balked at this suggestion and 

went in search of alternatives. The solution found through the EAS process was SeaPort Air flying a 

9 passenger Pilatus. The passengers have welcomed the new service, much better schedule, and 

are elated with ‘no security check’ and stand by time. Passengers today will say, ‘I love the service’, 

‘great customer service,’ and ‘I'm sure glad I finally tried it, cause I'll be back’

“In our particular market, the 9 passenger aircraft is perfect, and SeaPort Air provides the schedule, 

the professionalism, and customer service we need and desire.”

− Larry Dalrymple 

Airport Manager

Pendleton Regional Airport
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“I understand the importance of having dependable, reliable air service with an affordable cost. Not 

only will SeaPort Airlines meet these needs, but excel by providing great customer service, a high 

level of community involvement, and an eagerness to become a community partner”.

− Luci Larson

Former Mayor & Owner of 

Action Travel

Salina, KS

Our Customers

“Two hours before the flight I booked my ticket to Memphis from Hot Springs. Wow! What a 

surprise; it was simple, convenient, great price, and impeccable service. It far exceeded my 

expectations and I will be flying to Memphis on SeaPort Airlines instead of driving from now on. The 

customer service was fabulous!”

− Ruth Ann Smith 

Hot Springs to Memphis)

“My husband and I recently had to make a fast trip to Dallas for the funeral of a dear friend. I was not 

interested in making that drive over a fast weekend. Then I remembered that SeaPort had recently 

started flights between Hot Springs and Dallas. I called SeaPort, Jim and Bob were so quick to get 

us booked, last minute so we could fly down and attend the funeral and visit with family and friends 

that we don't get to see very often. 

Everyone was so friendly, helpful and professional. It was a dream trip, even to attend a funeral. The 

pilot going down was so kind. When he found out that my husband had been a ball turret gunner in 

WWII, he gave him a set of headphones so he could listen to the communication between the pilots 

and the air traffic controllers. To say the least, my husband was impressed. It was such a blessing to 

have been taken care of in such a kind and professional manner, especially under the circumstances 

of our trip. Thank you, Jim, Bob, Chris, Doug, Rodney and Michael.”

− Catherine Martin

(Hot Springs to Dallas)

“For two decades I have been picking my mother up at the airport and for two decades I have been 

met with the defeated, hang-dog look that the ordeal of air travel has given her. I guess it pretty 

much does it to all of us, but (as she is well into her 80's) I worry about the toll it takes on her more 

and more lately.

“When I picked her up today from her SeaPort flight K52325 from Dallas and saw she was smiling, 

you could have knocked me over with a feather! She couldn't stop raving about how pleasant the 

flight was. Let me be clear. My mother is a tough-as-nails Mid-western Yankee from the old school 

who has been around the world a couple of times since the late 1940's. She doesn't bestow idle 

praise and she seldom raves.
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“I'm in the service industry myself and I know how often complaints come through. I just want to be 

sure to let you know how well everyone did on this flight. In the future, I will look to SeaPort first for 

my travel needs and will spread the good word to my friends. 

“A smile and a kind word go a long way y'all. Thank you for getting this one so right.”

− Mark Davis Peterson

(Dallas to Memphis)

“I cannot say enough wonderful things about my experience with your company. My son, who is 7, 

flew for the first time as an unaccompanied minor. Let’s just say that my son and I were very 

nervous. 

On arrival to Kansas City I was welcomed with front row parking and an employee that was 

welcoming and reassuring. When his plane landed the pilot, Demetrius came and talked to me and 

my son for twenty minutes about safety and just reassuring me. He then allowed me to walk my son 

to the plane and see him off. Demetrius started buckling my son into his seat and my son started to 

cry, I could see him reassuring him that everything was going to be ok. All of your employees were 

wonderful and were conscious of safety and the well-fare of my son. My son’s flights from Kansas 

City to Memphis were wonderful and because of the extra attention he feels comfortable and 

unafraid of flying by himself. 

You have made me a lifelong customer. My son will be flying at least once a year to see his 

Grandparent. I have told all my friends, family and co-workers about your company and how if they 

have an opportunity they should fly with SeaPort. Thank You again for making a nervous mother and 

a scared child feel comfortable.”

− Misty Strayhorn

(Kansas City to Memphis)

“I have never had such a positive experience connected with any airline. I read about SeaPort Air 

last October when they opened the Mid-South Route, but didn’t have the chance to fly until March. 

Usually the dread of the process comes then you just grin and bear it; however, with SeaPort Air I 

could arrive 15 minutes early. The hassle free no TSA is wonderful and made me feel special. I have 

flown twice in the last 2 months and the customer service from start to finish is outstanding. I will be 

a regular customer and have already recommended the airline to several associates. Thank you, 

SeaPort Air, for making me feel like a queen!”

− Catherine Martin

(Memphis to Harrison)
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Subsidy Request & Supporting Calculations

The following pages contain the service proposals of SeaPort Airlines to provide essential air service 

at Athens-Ben Epps Airport. 

Each proposal is presented on the basis of annual subsidy requirement for each year in a two year 

term. Notwithstanding the risk of inflation in coming years (particularly related to fuel costs) that 

could possibly outstrip traffic growth and our ability to respond with reasonable fare increases, 

SeaPort is offering the Department and the community the option to contract the second year 

subsidy level for a four-year period (i.e., annual rate of $1,630,410 or $1,697,420 for each of 

the four years, depending on service option selected). We believe this provides the Athens

community with the assurance of stable air service for an extended period and reduces the 

administrative burden on both the Department and ourselves.

Respectfully submitted,

Timothy Sieber

Vice President – Commercial

SeaPort Airlines, Inc.

August 15, 2012
OST

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Operating Projections Year 1 Year 2

Average Sector Length (sm) 242 242

Scheduled Departures 1,248 1,248

Scheduled Block Hours 2,184.0 2,184.0

Projected Completion Factor 99.0% 99.0%

Projected Completed Departures 1,236 1,236

Projected Completed Block Hours 2,162.2 2,162.2

Passenger Projections

Projected Passengers 6,987 7,197

Passengers per Departure 5.7 5.8

Projected Average Fare $78.99 $80.57

Revenue Passenger Miles (RPMs) 1,690,854 1,741,580

Available Seat Miles (ASMs) 2,690,963 2,690,963

Projected Load Factor 62.8% 64.7%

Financial Projections

Revenues

Passenger Ticket Revenues $551,903 $579,829

Ancillary Revenues $11,038 $11,597

Total $562,941 $591,426

Expenses

Flight Operations $185,640 $194,922

Aircraft Ownership/Lease $240,000 $252,000

Fuel & Oil $601,474 $631,547

Sales & Marketing $50,000 $52,500

Traffic Servicing $279,227 $293,189

Insurance $39,312 $41,278

Maintenance $356,756 $374,594

Sub-Total - Direct $1,752,409 $1,840,030

Indirect $262,861 $276,004

Total Expenses $2,015,271 $2,116,034

Projected Operating Profit/(Loss) ($1,452,330) ($1,524,608)

Subsidy Calculations

Operating Loss $1,452,330 $1,524,608

Economic Return @ 5% $100,764 $105,802

Required Subsidy $1,553,093 $1,630,410

Subsidy per Departure $1,257.04 $1,319.61

Subsidy per Passenger $222.28 $226.55

Avg. Enplanements per Operational Day 10.3 10.6

Option #1

SeaPort Airlines, Inc.

Aircraft Type: Cessna Caravan

12 Weekly Roundtrips: Athens - Nashville
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Operating Projections Year 1 Year 2

Average Sector Length (sm) 188 188

Scheduled Departures 1,872 1,872

Scheduled Block Hours 2,236.0 2,236.0

Projected Completion Factor 99.0% 99.0%

Projected Completed Departures 1,853 1,853

Projected Completed Block Hours 2,213.6 2,213.6

Passenger Projections

Projected Passengers 7,797 8,031

Passengers per Departure 4.2 4.3

Projected Average Fare $65.35 $66.65

Revenue Passenger Miles (RPMs) 1,465,836 1,509,811

Available Seat Miles (ASMs) 3,135,750 3,135,750

Projected Load Factor 46.7% 48.1%

Financial Projections

Revenues

Passenger Ticket Revenues $509,501 $535,282

Ancillary Revenues $10,190 $10,706

Total $519,691 $545,987

Expenses

Flight Operations $188,159 $197,567

Aircraft Ownership/Lease $240,000 $252,000

Fuel & Oil $609,636 $640,118

Sales & Marketing $50,000 $52,500

Traffic Servicing $276,531 $290,357

Insurance $39,846 $41,838

Maintenance $365,251 $383,513

Sub-Total - Direct $1,769,423 $1,857,894

Indirect $265,413 $278,684

Total Expenses $2,034,836 $2,136,578

Projected Operating Profit/(Loss) ($1,515,145) ($1,590,591)

Subsidy Calculations

Operating Loss $1,515,145 $1,590,591

Economic Return @ 5% $101,742 $106,829

Required Subsidy $1,616,887 $1,697,420

Subsidy per Departure $872.45 $915.90

Subsidy per Passenger $207.37 $211.36

Avg. Enplanements per Operational Day 11.2 11.9

SeaPort Airlines, Inc.

Aircraft Type: Cessna Caravan

6 Weekly Roundtrips: Athens - Nashville

12 Weekly Roundtrips: Athens - Charlotte

Option #2