Essential Air Service at

SIOUX CITY. IOWA Under 49 U.S.C.

### !i41731 

### etseq. BEFORETHE DEPARTMENT OFTRANSPORTATION

WASHINGTON. D.C.

Docket: DOT-OST-20U-Q131 Submitted: December 2. 2013

United AlrUnes Proposal to Provide Essential Air Service at Sioux City, Iowa
United Airlines, Inc. ("United"), awholly owned subsidiary of United Continental Holdings, respectfully 

### , submits its proposal to provide subsidized Essential Air Service to Sioux Gateway Airport ("SUX") in Sioux City, IA. United seeksto operate 13weekly, year-round subsidized flights to and from its hub at Chicago O'Hare International Airport ("ORO"). These Essential Air Service flights would beflown by 50-seat jet aircraft. United Airlines' regional feed isoperated under the United Express brand. United Airlines, along with our United Express partners (Atlantic Southeast Airlines, Chautauqua Airlines, Commut Air, ExpressJet Airlines, GoJet Airlines, Mesa Airlines, Republic Airways, Shuttle America, Silver Airways, SkyWest Airlines, and Trans States Airlines), offers the largest airline network inthe world. Our network allows communities of any size accessto more than 360 cities on sixcontinents, available through more than 5,300 flights aday. In addition, United isafounding member of StarAlliance, which provides service to 195 countries via 28 member airlines. Sioux City flights would be operated byone of the United Express partners, carrying the "UA" code. The service proposed by United Airlines continues existing Sioux City service to Chicago O'Hare, one of United's largest hub airports. United isthe largest airline in Chicago with over 570 flights serving more than 160 destinations. This direct accesswill retain Sioux City's connections to large markets like New York, Washington D.C., LosAngeles and Seattle, while adding accessto destinations inthe U.S.and around the world. United serves over 70 destinations from Chicago that are not served bythe carrier currently providing EASservice inthe Sioux City market, with 119 more daily departures from Chicago than the existing carrier. United's bid reflects abelief that Essential Air Service subsidies provide vital opportunities for service to small-hub and rural communities. United and United Expressserve over 150 such communities today, and our commitment to serving and growing these markets isdemonstrated bythe fact that we have added seven new small-hub and rural communities to our network inthe past two years. It isnotuncommon for United to begin service to anew community with two daily flights and, ifthe service

performs well, increase to athird or add service to asecond hub. Denver, for example, isslightly further from Sioux Citythan isChicago, and also offers passengers one-stop connections to over 350 flights and 130 destinations. Successwith Chicago for Sioux City could lead United to consider acompelling casefor Denver service inthe future. Aspart of this proposal, United requests that the Department and the Sioux City community waive the right to hold-in United Express service at SUXupon receipt of 120-days' notice to terminate service. Although United plans to continue developing the Sioux City market, we must retain the flexibility to respond to market conditions. United appreciates the community's and the Department of Transportation's consideration of United Airlines service.
Respectfully submitted,

Brian Znotins Vice President - Network United Airlines, Inc.

## Market Projections

SiouxCity, fA

# toChicago O'Hare

Annual Flight Statistics Aircraft: Number of seats per departure: Mileage: Block Hours per departure: Completion Rate: Departures:
Revenues Passengers Segment Fare Total Revenue Expenses Flight Variable Passenger Variable Ownership Other Total Expenses
Base Profit/(Loss) 5% Profit Margin Subsidy Required Subsidy / Departure Subsidy / Passenger

Proposed Schedule Regional Jet 

### 50 436 1.5 98% 1,331

54,823 $117 $6,404,390
$5,636,521 $307,271 $719,304 $779,825 $7,442,921 ($1,038,532) $372,146 $1,410,678 $1,060 $25.73

Segment ORDSUX SUXORD ORDSUX SUXORD Depart



### 11:55 13:55 20:20 6:00 Arrive 

### 13:25 15:30 21:55 7:40 Frequency

xSat xSat Daily Daily Note: Schedule isshown for illustrative purposes only. United Airlines reserves the rightto changewithout notice. Alltimes are local.