Before the United States Department of Transportation 

January 7, 2015 

Proposal to Provide Essential Air Service at 

EL CENTRO/IMPERIAL, CALIFORNIA Docket OST-2008-0299 

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

Proposal of SeaPort Airlines, Inc. to Provide 

Essential Air Service at El Centro/Imperial, California 

By Order 2014-12-2, the U.S. Department of Transportation ("the Department") requested proposals 

from carriers interested in providing Essential Air Service (EAS) at El Centro/Imperial, California no 

later than January 7, 2015. 

SeaPort Airlines, Inc. respectfully submits this timely proposal to provide subsidized EAS at El 

Centro/Imperial as follows: 

• 12 weekly roundtrips to Burbank Bob Hope Airport; and 

• 12 weekly roundtrips to San Diego International Airport. 

The requested annual level of subsidy for this service is $2,264,009. This proposal is submitted on 

the basis of a four year contract award. 

After this proposal is docketed, SeaPort Airlines will schedule a meeting with the community to 

explain our proposal in detail and answer any questions. In the interim and throughout the carrier 

selection process, questions regarding this proposal should be directed to: 

Timothy Sieber 

Executive Vice President 

SeaPort Airlines, Inc. 

7505 NE Airport Way 

Portland, OR 97218 

(971) 340-1716 

tsieber@seaportair.com 
SEA PORT 

Discussion of Proposal 

Company Introduction 

SeaPort Airlines, Inc. is a FAA certified scheduled airline based in Portland, Oregon with over 

30 years of experience in commercial aviation. In addition to Portland, the company has 

operational bases at Memphis, Tennessee (MEM); San Diego, California (SAN); and Juneau, 

Alaska (JNU). 

Over 300 professionals provide service to 23 cities across ten states and two countries with a 

fleet of 21 aircraft. The company's route map as of the date of this proposal is provided below: 1 

Southeast Alaska 

The primary focus of SeaPort Airlines is to provide affordable and reliable air service to small 

and rural communities across America. Service to 11 of the communities on our route map is 

provided under the EAS program: Muscle Shoals, Alabama; Tupelo, Mississippi; Pendleton, 

Oregon; El Dorado, Hot Springs, and Harrison, Arkansas; Salina and Great Bend, Kansas; 

Jackson, Tennessee; and El Centro/Imperial, California. 

1 SeNice to Muscle Shoals, AL begins on January 12, 2015. 

OST -2008-0299 

January 7, 2015 Page 12 
==AIR INES 

In December, the Department awarded SeaPort the contract to provide EAS at Visalia, 

California. Beginning in February 2014, service will be provided to both Burbank Bob Hope 

Airport (Los Angeles Basin) and Sacramento International Airport. 

Increasing our presence in California is a major focus of SeaPort Airlines. This was 

demonstrated most recently on December 15, 2015 with the launch of our first international 

service, connecting San Diego International Airport with San Felipe, Mexico. Along with service 

to one additional destination in Mexico, SeaPort has identified four intra-California routes that, 

subject to available aircraft, may be added during 2015. 

Aircraft 

SeaPort Airlines' proposal to provide EAS at El Centro/Imperial assumes operations with 9-

passsenger Cessna Caravans. That will allow us to offer safe, comfortable, and affordable air 

transportation with a reasonable level of frequency. 

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 2,500 

Caravans have been built logging over 13 million flight hours. SeaPort operates a total of 14 

Cessna Caravans, including three recently delivered brand new from the factory. 

The new aircraft, which SeaPort anticipates taking additional deliveries of during 2015, are 

equipped with the all-glass Garmin G 1000 avionics suite which incorporates Synthetic Vision 

Technology(SVT) that includes topographical displays of terrain, visualization of other air traffic, 

and real-time data from both aircraft and engine that improves situational awareness and trend 

monitoring to facilitate pre-emptive maintenance that reduces flight delays and cancellations 

attributable to mechanical issues. 

OST -2008-0299 

January 7, 2015 Page 13 
SEA PORT 

Further benefits of the Garmin 1000 include an advanced autopilot system that can perform 

virtually all pilot actions from climb-out through final descent and reduces pilot workload with 

precise vertical and horizontal guidance. These capabilities will result in higher flight completion 

rates, even during the most challenging weather conditions, as well as enhanced levels of 

safety and comfort. While the Caravan is certified for single-pilot operation, SeaPort typically 

operates with both a Captain and First Officer. 

The recently delivered aircraft are equipped with a TKS anti-ice/de-ice system that exudes 

glycol-based fluid through laser drilled holes on the leading edge of the wing and other critical 

surfaces. The fluid prevents precipitation from adhering the aircraft, further enhancing both 

safety and operational reliability 

Proposed Service Patterns & Illustrative Flight Schedules 

SeaPort's proposal to provide EAS at El Centro/Imperial includes a schedule similar to that 

which we currently provide. This includes 12 weekly roundtrips to Burbank and 12 weekly 

roundtrips to San Diego, and is illustrated below: 

EL CENTRO/IMPERIAL, CALIFORNIA 

Flight# Depart Arrive Step Freque~cy Flight# Stops Frequency 

TO: BURBANK (LOS ANGELES) FROM: BURBANK (LOS ANGELES) 

5111 5:45am 7:00am 0 ExSatSun 5112 7:30am 8:45am 0 ExSatSun 

5197 7:00am 8:15am 0 SatOnly 5198 8:45am 10:00am 0 SatOnly 

5115 3:00pm 4:15pm 0 ExSat 5210/5114 11:35am 1:45pm SAN TueWedFri 

5116 4:45pm 6:00pm 0 ExSatSun 

TO: SAN DIEGO FROM: SAN DIEGO 

5111/5201 5:45am 8:45am BUR ExSatSun 5114 1:00pm 1:45pm 0 ExSun 

5113 9:55am 10:40am 0 ExSatSun 5205/5116 2:00pm 6:00pm BUR ExSatSun 

5199 10:30am 11 :15am 0 Sa!Only 5118 7:30pm 8:15pm 0 ExSat 

5117 6:15pm 7:00pm 0 ExSat 

We anticipate no major changes to the above schedule over the term of the next contract 

period. Any changes that might occur would only be after consultation with, or at the request of, 

the community. An example of SeaPort's willingness to work with the El Centro/Imperial, CA 

community was the recent adjustment of a departure time from Burbank ten minutes later to 

better accommodate connections with a Southwest Airlines flight from Sacramento. 

The maps on the next page show nonstop destinations from both San Diego International 

Airport and Burbank Bob Hope Airport. 2 

2 Published schedules for June 2015 as of December 19, 2014. 

OST-2008-0299 

January 7, 2015 Page 14 
SEA PORT ==.AIR INES 

Nonstop Destinations Served from San Diego International Airport 

May 2015 

Nonstop Destinations Served from Burbank Bop Hope Airport 

May 2015 

OST-2008-0299 

January 7, 2015 Page 15 
SEA PORT ==,~,IRL1NES 

Fares & Pricing 

SeaPort Airlines projections of traffic and revenue in this proposal assume the continued use of 

a low-fare pricing fare model that allows for the customer's fare from El Centro/Imperial to be an 

"add-on" to the fare of a connecting airline at the hub and still result in reasonable overall trip 

cost. 

The table below illustrates the fares SeaPort plans to offer at El Centro/Imperial to both Burbank 

and San Diego, along with the rules and restrictions applicable to the three basic fare families of 

our company. 

Illustrative Fares at El Centro/Imperial, Ca 

.iiJIIill. 

IMPERIAUEL CENTRO to/from BURBANK $119 $89-$59 $49 

IMPERIAUEL CENTRO to/from SAN DIEGO $89 $69-$59 $49 

Advance Purchase (Days Before De~arture) 0 3-7 7-14 

Refunds Permitted Yes No No 

Fee to Change Itinerary $0 $50 Not Permitted 

Stand-by For Earlier Flight Same Day $0 $25 Not Permitted 

#of Free Checked Bags (50 lbs each) 2 1 1 

Fee for Oversize/Excess Checked Bags $50 $50 $50 

Fee for Bookin~ at Airport/on Phone $0 $0 $25 

In addition to the fares listed above, customers in El Centro/Imperial will have access to new 

products that SeaPort is rolling out over the next six months: 

• Commuter Books that offer 10 tickets at a discounted prices and waiver of certain 

restrictions. 

• Student stand-by fares for $25 each-way, based on available seats. 

• Private negotiated fares that allow companies to realize progressive savings based on 

level of activity and/or share of their air travel budget committed to local air service. 

Interline Connectivity & GDS Display 

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

www.SeaPortAirlines.com, at any travel agent connected to a major global distribution system 

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

Travelocity, Expedia, Kayak, Hipmunk, and CheapoAir. 

On March 23, 2014, SeaPort Airlines became the first US airline to be completely hosted by the 

Amadeus Altea reservation platform. This system is one the top three distribution systems in the 

world and is the same reservation system for such leading airlines as Air France/KLM, Qantas, 

Emirates, Korean Airlines, and others. 

OST -2008-0299 

January 7, 2015 Page 16 
SEA PORT ==AIRLINES 

With this new system, SeaPort has unsurpassed capability compared to other regional airlines 

with respect to interline ticketing, offering optional services, through baggage check-in, InterAirline Thru Check-In (IATCI), SMS notifications to customers of schedule changes and flight 

irregularities, the ability for customers to make online changes to reservations, and (eventually) 

online check-in. 

Most importantly, however, Altea enabled SeaPort Airlines to implement its first bilateral interline 

e-ticketing and baggage agreement. 3 That agreement with Alaska Airlines was activated on 

March 24, 2014, the day after the reservation migration was completed. A second interline 

agreement with Hawaiian Airlines was activated on December 15, 2014. 

The company has initiated discussions with multiple airlines about potential incremental revenue 

from connecting SeaPort customers to build a business case for interline agreements similar to 

the one with Alaska Airlines and Hawaiian Airlines. 

In addition to reservations, SeaPort Airlines offers rental cars and hotels on its website. SeaPort 

plans to enhance this offering in 2015 with a dynamic booking process for business trips and 

vacations that will allow customers to book flights (including those of interline partners), rental 

car, and hotel in a single transaction and all from a single screen. This will be included as part of 

an overall makeover of the company's website in late 2015 that will be designed for better 

functionality with mobile devices and complies with new US DOT requirements for accessibility. 

Sales & Marketing 

SeaPort Airlines proposal to provide EAS at El Centro/Imperial, California includes a 

commitment to spend $25,000 during each year of the contract term for advertising and 

promotional activities. These expenditures are intended to help increase traffic in the market 

and maintain a level above 10 enplanements per operational day. 

Advertising 

Advertising activities will focus on radio, print, online, and outdoor (i.e., roadside signs and 

sports stadium boards) throughout the catchment area of Imperial County Airport. On a limited 

basis, we would purchase commercials during local television news broadcasts. 

Sales & Community Relations 

Advertising will be supported by aggressive and sustained sales activities focused on 

companies and organizations in the El Centro/Imperial area with a need for reliable, affordable 

travel options. The sales message would include explanation the value proposition of flying 

compared to driving, connectivity possibilities, service enhancements, and the importance of 

local businesses to support local air service. The costs associated with sales activities (i.e., 

printing, travel, etc.) are not included in the $25,000 advertising budget. 

3 Bilateral agreements allow both participating carriers to make reservations and issue tickets on each other's flights. A unilateral 

agreement only allows one carrier to sell and issue tickets. 

OST-2008-0299 

January 7, 2015 Page 17 
==,~IRLINES 

Subsidy Request Calculations 

As noted on page one, SeaPort Airlines is requesting annual subsidy of $2,264,009 at El 

Centro/Imperial, California to provide 12 weekly roundtrips to San Diego and 12 weekly 

roundtrips to Burbank. This calculates to subsidy of $925.57 per departure. The next page 

contains the calculations to support the requested subsidy amount. 

This proposal is being submitted on the basis of an award of a four-year contract. 

Timothy Sieber 

Executive Vice President 

SeaPort Airlines, Inc. 

January 7, 2015 

OST-2008-0299 

January 7, 2015 Page 18 
OST-2008-0299 

January 7, 2015 

SEA :'PORT 

OST -2008-0299 

Cessna Caravan, Two-Pilots 

12 Weekly RTs: El Centro/Imperial- Burbank 

12 Weekly RTs: El Centro/Imperial- San Diego 

Operating Projections 

Average Sector Length (sm) 

Scheduled Departures 

Scheduled Block Hours 

Projected Completion Factor. 

Projected Completed Departures 

Projected Completed Block Hours 

Passenger Projections 

Projected Passengers 

Passengers per Departure 

Projected Average Fare 

Revenue Passenger Miles (RPMs) 

Available Seat Miles (ASMs) 

Projected Load Factor 

Financial Projections 

Revenues 

Passenger Ticket Revenues 

Ancillary Revenues 

Total 

Expenses 

Flight Operations 

Aircraft ONnership/Lease 

Fuel & Oil 

Sales & Marketing 

Traffic Servicing 

Insurance 

Maintenance 

Sub-Total - Direct 

Indirect 

Total Expenses 

Projected Operating Profiti(Loss) 

Subsidy Calculations 

Operating Loss 

Economic Return @ 5% 

I Required Subsidy 

Proforma Data 

140 

2,496 

2,496.0 

98.0% 

2,446 

2,446.1 

7,675 

3.1 

$72.24 

1,074,500 

3,082,061 

34.9% 

$554,428 

$13,861 

$568,288 

$269,069 

$531,000 

$614,211 

$25,000 

$451,337 

$51,368 

$403,603 

$2,345,587 

$351,838 

$2,697,425 

($2, 129, 137) 

$2,129,137 

$134,871 

$2,264,0091 

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