Essential Air Service at

SIOUX CITY. IOWA

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

BEFORE THE

DEPARTMENT OF TRANSPORTATION

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"), a wholly 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 seeks to operate 13 weekly, year-round subsidized flights to and from its hub at Chicago

O'Hare International Airport ("ORO"). These Essential Air Service flights would be flown by 50-seat jet

aircraft.

United Airlines' regional feed is operated 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 in the world. Our network allows

communities of any size access to more than 360 cities on six continents, available through more than

5,300 flights a day. In addition, United is a founding member of Star Alliance, which provides service to

195 countries via 28 member airlines. Sioux City flights would be operated by one 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 is the largest airline in Chicago with over 570 flights serving more

than 160 destinations. This direct access will retain Sioux City's connections to large markets like New

York, Washington D.C., Los Angeles and Seattle, while adding access to destinations in the U.S. and

around the world. United serves over 70 destinations from Chicago that are not served by the carrier

currently providing EASservice in the Sioux City market, with 119 more daily departures from Chicago

than the existing carrier.

United's bid reflects a belief that Essential Air Service subsidies provide vital opportunities for service to

small-hub and rural communities. United and United Express serve over 150 such communities today,

and our commitment to serving and growing these markets is demonstrated by the fact that we have

added seven new small-hub and rural communities to our network in the past two years. It is not
uncommon for United to begin service to a new community with two daily flights and, if the service

performs well, increase to a third or add service to a second hub. Denver, for example, is slightly further

from Sioux City than is Chicago, and also offers passengers one-stop connections to over 350 flights and

130 destinations. Success with Chicago for Sioux City could lead United to consider a compelling case for

Denver service in the future.

As part of this proposal, United requests that the Department and the Sioux City community waive the

right to hold-in United Express service at SUX upon 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

Sioux City, fA to Chicago 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

x Sat

x Sat

Daily

Daily

Note: Schedule is shown for illustrative purposes only.

United Airlines reserves the right to change without

notice. All times are local.