EssentialAir Service at MCN MACON, GEORGIA BEFORE THE U.S. DEPARTMENT OFTRANSPORTATION OFFICE OFTHE SECRETARY WASHINGTON, D.C.

) ) ). ) Docket DOT-OST-2007-28671 ) under49 U.S.C. 41731 et ,s·eq. ) ,_: ··,
· .. ·, '--·: ·_,·'.

PROPOSAL OF AMERICAN AVIATION GROUP, INC. d/b/a SKY KING AIRLINES, Inc. TO PROVIDE ESSENTIAL AIR SERVICE AT MCN MACON, GEORGIA

Communications with respect to this document should be sent to:

Frank Visconti, President Sky King Airlines, Inc. Inc. 3600 Power Inn Road, Suite H Sacramento, CA 95826

January 31, 2013 George M. Brown, Chairman/CEO American Aviation Group, Inc., d/b/a Sky King Airlines,
317 Eagle Ridge Road, Macon, Georgia 31216

wjjcme@yahoo.com Tel: 478-361-4861 Fax: 478-788-8752

PerseBEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OFTHE SECRETARY WASHINGTON, D.C.

EssentialAir Service at MCN MACON, GEORGIA ) ) ) ) ) under 49 U.S.C. 41731 et seq. ) Docket DOT-OST-2007-28671

PROPOSAL OF AMERICAN AVIATION GROUP, INC. d/b/a SKY KING AIRLINES, Inc. TO PROVIDE ESSENTIAL AIR SERVICE AT MCN MACON, GEORGIA

AmericanAviation Group, Inc. d/b/a Sky King Airlines, Inc submits the following proposal to provide Essential Air Service (EAS) to MCN Macon, Georgia. This proposal is submitted in response to order 2013-1-5, Served on January 4, 2013.
AmericanAviation group makes the following statements: 1. Americm Aviation Group, Inc. was incorporated on**~O\'Clnber** 02, 2005 in the sLate of Georgia, expressly l(x providing regional airline passenger and freight services to ;md from the Middle Georgia Regional Airport. Sky King Airlines, Inc. is the FAA Part 121 !lying ann of American Aviation Group, Inc. and will add two (2) BAE 19 passenger airplanes to its FAA Part 121 Certificate (KNNA 122N-Sky King Inc) for direct support ofMCN. 2. Sky King vvill continue its current routes while American Aviation Group will expand operations to include service Ii·om Macon (l\1CN), GA. to the Following locations:
A Atlanta (ATL), G A A Kissimmee (ISM) A Ft. Lauderdale, FL A vVashington (lAD), D.C. A Mississippi GulfCoast areas.3. American A\'iation Group seeks to take advantage ofthe under-sen·ed**~lacon,** GA market while keeping the planes in maintenance rotation. This will be accomplished, in part, by the immediate addition of two (2) 19-passenger/freight airplanes, and within 12 months, the secondary addition oftwo (2) :·30-passenger/li·eight airplanes.
4. American Aviation Group, Inc. operating plan will enable SKY KING to provide as many as
one hundred fourteen seats per day spread over six departures with an "existing reservation throughput" that will allow passengers to book flights to any desired designation.

5. The annual subsidy rates outlined in order 2013-1-5 served on January 31,2013 will provide a measure of financial support as this operation is being implemented but in no way does this amount define the financial potential ofthe Middle Georgia Market (see Market and Marketing Plan in this document). American Aviation Group, Inc. and SKY KING will have as one ofits goals to reduce and or eliminate the need for this subsidy.
6. SKY KING has an outstanding history of providing aircraft service to the national and international community. In conjunction with this proposal, SKY KING is making application to the FAA for authorization to add two (2) BAE 19 passenger airplanes to its FAA Part 121 Certificate.

7. Sky King has an outstanding management team led by entrepreneurs and professionals with long and successful careers in the aviation, business, sports management and entertainment industries. Sky King, Inc. was founded in July of 1990, concurrent with the purchase ofa BAC 1-11 aircraft. In May 1991, Sky King obtained a Part 125 operating certificate. Over the next six years, Sky King contracted with entertainment groups, major corporate executives, and sp01is entities.

8. By the fall of 2001, Sky King was transporting 10 sports teams on long-term contracts, with demand from other entities continuing to be high. In October of2002, Sky King obtained a Part 121 operating certiflcate. Since that time, Sky King has continued to develop and expand its business foundation. Pmiicularly notew01ihy is the addition in 2004 ofscheduled service out of several East Coast airp01is, with routes to Mexico, the Caribbean, Guam, and other East Coast cities.9. The following exhibits are appended to this proposal: Attachment 1: Annual Subsidy Requirements for Essential air Service at MCN Attachment 2: Proposed Operating Schedule for MCN Attachment 3: American Aviation Group, Inc. Market and Marketing Plan for MCN Attachment 4: Required Federal Certifications ofCompliance

10. AmericanAviation Group, Inc. d/b/a SKY KING, request that the Department ofTransportation select its proposal to provide Essential Air Service at MCN Macon, Georgia for a two-year term to commence with Sky King's inauguration of scheduled service between MCN Macon, GA and Atlanta Hartsfield-Jackson InternationalAirport (ATL).
Respectfully submitted, 

## George M. Brown George M. Brown Chairman/CEO
Per seJanuary 31, 2013PROPOSAL OF SKY KING TO PROVIDE ESSENTIALAIR SERVICEAT MACON, GA ATTACHMENT 1 SKY KING, Inc. Annual Subsidy Requirements for EssentialAir Service Macon, Georgia 

### '\'EAR1: 2013**srrA'l~IsrriCS** 

### MA_(;ON, HEORHL"" COMPLETION FACTOR 99% DEPARTURES 1,859 BLOCK !·lOURS 223.106 REVENUE PASSENGER 3,004,800 MILES AVAILABLE SEArMILES 5,709,120 PASSENGERS PER 9 OPERATION SEGMENT REVENUE PER $99 PASSENGER**OPI~UA'l~ING IU~VtJNUI~S**  PASSENGER REVENUE $1,673,298

CARGO REVENUE $167,329 OTHER TOTAL $1.840,627**OPEUA'l~ING I~XPI~NSI~S**  PERSONNEL EXPENSES $892.360 DIRECT MAINTENANCE $212.415 FUEL $605,267 AIRCRAFT LEASING $120,000 TOTAL OPERATING EXPENCES $1,830,042**O'l~III~R I~XPI~NSI~S**  PASSENGER VARIABLE COST $45.000 VARIABLE STAr!ON COSTS $523,675 MARKETING EXPENSES $800,000 FACILITIES EXPENSES $36.000 TOTAL OTHEREXPENSES $1,504,675 I COST INFLATION (2.4% PER YEAR) I TOTAL EXPENSE $3,234,717 I OPERATING PROFIT/LOST ($1 ,394,090) I PROFIT MARGIN (5% OFTOTAL EXPE!'\SES) $161.735 ANNUAL COMPENSATION $1.555.825 REQUIREMENT '\'E.!\.R 

### 2:2014 MACON, HEORGL\. 99% 1.859 223,106 3,272,227 5.709,120 II 99

$2,045,142 $204.514 $2,249,656

$892.360 $212,415 $605,267 $120.000 $1.830,042

$45,000 $523.675 $800,000 $36,000 $1,504.675

$36.112 $3,270.829 J
($1,021,173)

$163.541 $1.184,714AMRICANAVIATION GROUP, Inc. d/b/a SKYKING PROPOSED SERVICE FOR MACON IATLANTA, GEORGIA ATTACHMENT 2



### MACON

## IATLANTA, GEORGIASERVICE MACONTOATLANTA ATLANTATOMACON FLIGHT DEPARTURE ARRIVAL FLIGHT DEPARTURE ARRIVAL 6:30 7:00 9:00 9:30 7:30 8:00 10:00 10:30 8:30 9:00 12:00 12:30 10:30 11:00 17:00 17:30 15:30 16:00 18:00 18:30 17:30 18:00 21:00 21:30ATTACHMENT 3 AmericanAviation Group, Inc. Market and Marketing Plan for MCN Market and Marketing Plan: A natural market has been created because of the population increase in the Middle Georgia MetropolitanArea. This market demands fast, safe and cost effective scheduled air transportation to cities within 300 to 600 miles ofMacon. The market requirements for moving passengers and cargo ofexisting business, new business and the business oflarger carriers will be the focus ofSKY KINGAirlines. The Macon area is the third largest MSA (Metropolitan StatisticalArea) in Georgia. The Middle Georgia Regional Airport (MCN), Airport CatchmentArea (ACA) consists of21 counties in central Georgia. The ACAis impacted by the proximity to Atlanta's Hartsfield-Jackson International Airport, which is less than 100 miles distance and is the busiest airpmi inthe world. However, the convenience ofMCN as a selected destination makes it the airport ofchoice when other factors such as schedules and relative airfares are considered. The ACAhas an estimated population of583,000 people, with a "true market" at 256,633 annual enplanements. Bibb County and Houston County are the two most populous counties inthe ACA. The airport is located in Bibb County only a few miles from the Houston County line. The balance ofthe drawing area already uses the Macon-Warner Robins area as the retail center for most ofthe consumer and business trade needs. Marketing is the '"vital element" for successful and profitable operation in this ACA. Justputting an airplane at the airpmi and hoping that passengers will show up with dollars in hand is wishful thinking and a road to failure. A sustained multimedia approach with the use ofTV, Radio, Newspapers, Magazines and Special Offers must be maintained. Management believes strongly that it is addressing a market destined to grow substantially withinthe next three (3) to five (5) years. The currentmarket requires an airplane that fulfills the psychological mindset ofwhat the flying public has in mind when they think ofan airline to fly. The following pictures and map depict the difference between what is at MCN today and whatAmericanAviation Group, Inc. will replace them with:

## CurrentAircraft used at MCN

8 Passenger Caravan 

## ProposedAircraft for MCN

19 PassengerBAE 31

30 PassengerBAE 42

## American Aviation Group, Inc Route Plan**America~** Aviation Group, Inc. Route Plan
Mt;N =**Middl~G.eq~gia** Regional Airport to:l**····~1** . . . :. ATL 

## = lllte{!lational**Airporf"fpirne,~)** lAD= Dulles

### lnt~rn~~ional**Aif'~orjt** {phase Z) GPT\=

### Gulf~.ort-Bilo~i lnternationCJl··AirP,91J

### (p,hase·~} \**{,~:;** 'i j ,, ' \\

lSMUNITED STATES OFAMERICA DEPARTMENT OFTRANSPORTATION OFFICE OFTHE SECRETARY OFFICE OFAVIATION ANALYSIS ATTACHMENT 4

CERTIFICATION REGARDING INFLUENCINGACTIVITIES Certification for Contracts, Grants, Loans and CooperativeAgreements The undersigned certifies, to the best ofhis orherknowledge and belief, that: (1) No Federal appropriated funds have been paid orwill be paid, by oron behalfofthe undersigned to any person for influencing or attempting to influence an officer or employee ofany agency, a MemberofCongress, an officer oremployee ofCongress, or an employee ofa Member ofCongress in connection with the awarding ofany Federal contract, the making ofany Federal grant, the making ofany federal loan, the entering into any cooperative agreement, and the extension, continuation, renewal, amendment, or modification ofany Federal contract, grant, loan orcooperative agreement. (2) Ifany funds otherthan Federal appropriated funds have been paid orwill be paid to any person for influencing or attempting to influence an officer or employee ofany agency, a MemberofCongress, an officer or employee ofCongress or an employees ofa Memberof Congress in connection with this Federal contract, grant, loan orcooperative agreement, the undersigned shall complete and submit Standard form-LLL, "Disclosure Form to Report InfluencingActivities," in accordance with its instructions. (3) The undersigned shall require thatthe language ofthis certification is included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation offact upon which reliance was place when this transaction was made or entered into. Submission ofthis certification is a prerequisite for making orentering into this transition imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty ofnot less than $10,000 and not more than $100,000 for each such failure. 

## George M. Brown January 31,2013 Signatm·e Date Chairman/CEO American Aviation Group, Inc. d/b/a SKYKING Title Air Canier Macon, Georgia Essential Air Service Point to Which Certification AppliesUNITED STATES OFAMERICA DEPARTMENT OFTRANSPORTATION OFFICE OFTHE SECRETARY OFFICE OFAVIATION ANALYSIS TITLE VI ASSURANCE (ImplementingTitle VI ofthe Civil RightsAct of 1964, as amended) ASSURANCE CONCEERINGNONDISCRIMINATION ON THE BISIS OFDISABILITYON FEDERALLY-ASSISTED PROGRAMSAND ACTIVITIES RECEIVIN OR BENEFITING FROMFEDERALDINANCIALASSISTANCE (Implementing the Rehabilitation Act of 1973, as amended, and the AirCarrierAccess Act of 1986) 49 CFR Parts 21 and 27 and 14 CFRParts 271 and 382

AmericanAviation Group, Inc. d/b/a SKY KING (the Recipient) HERBYAGREES THAT, (Name ofRecipient) 1. As a condition ofthe Civil RightsAct of 1964, as amended, 42 U.S.C. 2000d- 42 U.S.C. 2000D-4; all requirements imposed by orpursuant to: Title 49, Code ofFederal Regulations, part 21, Nondiscrimination in Federally- Assisted Programs ofthe Department of Transportation -Effectuation ofTitleVI ofthe Civil RightsAct of 1964; and otherpertinent directives so that no person in the United States shall, on the grounds ofrace, color ornational origin, be excluded from the participation in, be denied the benefits of, orbe otherwise subjected to discrimination under any program oractivity for which the Recipient receives Federal financial assistance from the Department ofTransportation. This assurance is required by Title 49, code ofFederal Regulations, section 21.7(a) and Title 14, Code ofFederal Regulations, section 271.9(c). 2. As a condition to receiving any Federal financial assistance from the Department of Transportation, itwill comply with: section 504 ofthe RehabilitationAct of 1973, as amended (29 U.S.C. 794); theAir CarrierAccess Act of 1986 (49 U.S.C. 1374 (c)); and all requirements imposed by orpursuant to Title 49, Code ofFederal Regulations, Part27, Nondiscrimination on the Basis ofHandicap in Programs andActivities Receiving ofBenefitting from FederalFinancial Assistance, Title 14, Code offederal Regulations, Part 382, Nondiscrimination on the Basis of Handicap in AirTravel: and otherpertinent directives so that not otherwise qualified personwith a disability, be excluded from participation in, be denied the benefits of, be discriminated against by reason ofsuch handicap in the provision ofairtransportation, or otherwise be subjected to discrimination under any program for which the Recipient receives Federal financial assistance from the Department ofTransportation. This assurance is required by theTitle 49, Code of Federal Regulations, section 27.9 and Title 14, code ofFederal regulation, sections 271.9(c) and 382.9. 3. Itwill promptly take any measures necessary to effectuate this agreement. The recipient further agrees that it shall take reasonable actions to guarantee that it , itscontractors and subcontractors subject to the Department ofTransportation regulations cited above, transferees, and successor in interestwill comply with all requirements imposed or pursuant to the statues and Department ofTransportation regulations sited above, other pertinent directives, and above assurances. 4. These assurances obligate the Recipient for the period duringwhich Federal financial assurance is extended. The recipient agrees that the United States has a right to seek judicial enforcement with regard to any matter arising underthe statutes and Department of Transportation regulations cited above, other pertinent directives, and the above assurances. 5. These assurances are given for the purpose ofobtaining Federal subsidy underthe EssentialAir Service Program and are binding on the Recipient, contractors, subcontractors, transferees, successors in interest, and all other participants receiving Federal subsidy in the EssentialAir Service Program. The person orpersons whose signatures appear below are authorized to sign this agreement on behalfofthe Recipient. 6. In addition to these assurances, the Recipient agrees to file: a summary ofall complaints filed against it within the pastyearthat allege violation(s) by the Recipient ofTitle VI ofthe Civil RightsAct of 1964, as amended, section 504 ofthe RehabilitationAct of 1973, as amended, ortheAir CarrierAccess Act of 1086; or a statement that there have been no complaints filed againstit. The summery should include the date the complaintwas filed, the nature ofthe complaint, the status oroutcome ofthe complaint (i.e., whetherit is still pending or how itwas resolved).
January 31, 2013 AmericanAviation Group, Inc. d/b/a SKY KING Date Legal Name ofRecipient

By: 

### George M. Brown, Chairman/CEO Signature ofAuthorized OfficialUNITED STATES OFAMERICA DEPARTMENT OFTRANSPORTATION OFFICE OFTHE SECRETARY OFFICE OFAVIATION ANALYSIS CERTIFICATIONREGAREINGDRUG- FREE WORPLACE REQUIREMENTS IN THE PERFORMANCE OF SUBSIDIZED ESSENTIALARE SERVICE A. The subsidized essential air service carrier certifies that itwill, orwill continue, to provide a drug- free workplace by: (a) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use ofa controlled substance is prohibited in the carrier's workplace, and specifying the actions that will be taken against employees for violation ofsuch prohibition; (b) Establishing an ongoing drug- free awareness program to inform employees about the following: 1. The dangers ofdrug abuse in theworkplace; 2. The grantee's policy ofmaintaining a drug

- free workplace; 3. Any available drug counseling, rehabilitation and employee assistance program; and 4. The penalties that may be imposed upon employees to the drug abuse violations occurring in the workplace. (c) Making it a requirement that each employee to be engaged in the performance of work supported by the subsidy be given a copy ofthe statement required by paragraph (a); (d) Notifying the employee in the statement required by paragraph (a) that, as a condition ofemployment supported by the subsidy, the employee will: (l.)Abide by the terms ofthe statement; and (2.)Notify the employerin writing ofhis orher conviction for a violation ofa criminal drug statute occurring in the workplace no laterthan five calendar days after such conviction; (e) Notifying the agency in writingwithin ten calendardays after receiving notice under paragraph (d)(2) from an employee or otherwise receiving actual notice ofconviction. Employerofconvicted employees must provide notice, including position title, to the Office ofAviationAnalysis. Notice shall include the ordernumber ofeach affected subsidized service;(f) Taking one ofthe following actions, within 30 days ofreceiving notice under paragraph (d)(2), with respect to any employee who is so convicted; (l.)Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements ofthe RehabilitationAct of 1973, as amended, or (2.)Requiring such employee to participate satisfactorily in a drug abuse assistance ofrehabilitation program approved for such purposes buy a Federal, State orlocal health, law enforcement, or other appropriate agency; (g) Making a good faith effort to continue to maintain a drug- free workplace through implementation ofparagraphs (a.), (b.), (c.), (d.), (e.), and (f.). B. The subsidized essential air service carrier may, but is not required to, insert in the space provided below the site for the performance ofthe work done in connection with the special grant. Places ofPerformance (street address, city, county, state, zip code). Forthe provision of essential air service, workplaces include outstations, maintenance sites, headquarters, office locations, training sites and any otherworksites where workis performed that is supported by the subsidy. 1000 Terminal Drive Macon, GA 31297

Check [ ] ifthere are workplaces on file that are not identified here.

AmericanAviation Group, Inc. d/b/a SKY KING

By: 

### George M. Brown, Chairman/CEO January 31, 2013 Signature Date