## Proposal to Provide Essential Air Service at


## Jackson, Tennessee

Docket DOT

- OST

- 2000

- 7857

Direct Inquiries Regarding this Proposal to:

Shane Storz, CEO Air Choice One Airlines 12300 Old Tesson Road, Suite 200 F, Saint Louis, MO 63128 Phone: (866) 435

- 9847 Fax : (314) 843

- 8527 E

- mail: shane@airchoiceone.com



# Multi

- Aero Inc. d/b/a Air Choice One

# Our Commitment

09/30/2011 Air Choice One is aware of the many challenges facing the Jackson, Tennessee community. Our proposal will give the best access to the national transportation system for the community at reasonable prices. We understand the efforts of a dedicated air carrier are critical to having scheduled airline service in the future. Air Choice One is that air carrier and we believe the strategy outlined in our proposal will support and complement airport development efforts. We have proven our strategy works with other EAS communities and we are committed to delivering these same dramatic increases in enplanements and sustaining these numbers over time. Analyzing the challenges ahead, we are prepared to offer non

- sterile service to accommodate the current absence of TSA at McKellar

- Sipes Regional Airport. As a further provision, our non

- sterile service will include dedicated shuttle van service at your choice of either Lambert St. Louis International Airport or Nashville International Airport. Our private shuttle will increase the ease of travel for our passengers and simplify the process of connecting to other carriers. Additionally, our proposal allocates substantial resources to support marketing efforts. Our achievements in our other EAS markets demonstrate that our marketing strategies are successful. Through on

- site community outreach, community

- specific advertising, consistent flight schedules, and outstanding customer service we will build consumer recognition in the community and drive passengers back to your airport. We commit to providing you with outstanding service. We believe our successes in our other EAS markets, our analysis, planning, and dedication to the community will enable us to overcome the current challenges in Jackson and recapture the confidence of local travelers. We will continue working with you throughout our term to provide the next level of air service that will bring us all success.

# Market Growth Strategy

- Airport Partnerships

Air Choice One will team with your local airport to raise awareness about your communities’ air service and increase enplanements.

• LOCAL AIRPORT INITIATIVES

• Provide Ground Handling

• Provide Financial Support Through Discounted Fuel Costs, Landing Fees, and Rental Agreements

• Provide Telephone and Internet Service

• Educate the Community about the EAS Program and Air Choice One’s Service

• Draft and Distribute Press Releases

• Community Involvement

• Participate in TV and Radio Coverage

• Distribute Information Pertaining to Air Choice One at Local Business Events

• High Visibility Presence on City Website(s) and Electronic Signage

09/30/2011

# Market Growth Strategy

- Airport Partnerships

Air Choice One will team with your chosen destination airport to promote tourism opportunities and encourage air travel to your community, again, increasing enplanements.

• LAMBERT ST. LOUIS INTERNATIONAL AIRPORT (STL) INITIATIVES

• Aggressively pursuing EAS Communities Through Partnership Programs

– Local Visits and Financial Support

– Annual EAS Summit Held at STL Airport

– STL Currently Supports Over 50 Daily Flights to Seven EAS Communities

• EAS Communities Partnering With STL Have Benefited From a Steady Increase in Ridership

• Provide Marketing Funds to Both Air Choice One and the Local Community

• Market Vacation Packages to STL and Beyond and to Local Communities From STL

• Expedited Security Passes

— Passengers With Connections Enter Security Through First/Business Class Line

• Discount Coupons for Airport Shopping and Concessions



### • NASHVILLE INTERNATIONAL AIRPORT ( BNA ) INITIATIVES

• EAS Communities Receiving Reliable Service to Hub Airports Have Benefited From a Steady Increase in Ridership

• Market Vacation Packages to BNA and Beyond and to Local Communities From BNA

• Air Choice One Flights will be Serviced by American Airlines

09/30/2011

# Market Growth Strategy

–

Partnering With the Community

09/30/2011 

### Air Choice One is dedicated to working with your community to reinvigorate the service at your airport and sustain growth that will launch us into the future.

• WE ARE YOUR NEIGHBORS



### • Corporate Headquarters in Midwest

• Increase Local Career Opportunities

• WE ARE IN YOUR COMMUNITY

• Routine On

- Site Sales Visits

• Chamber of Commerce Participation and Membership



### • Airport Affiliate Participation

• STRONG PUBLIC RELATIONS AND MEDIA OUTREACH

• Business Incentive Programs

• Travel Agent Discounts

• Business to Business Communication



### • Attendance at Public Events

• WE KEEP YOU INFORMED

• Monthly Airport Board Updates

# Market Growth Strategy

– Marketing Investment

09/30/2011 Air Choice One reinvests in our served communities.

• TRADITIONAL MEDIA

• Radio

- Talk Shows/Commercials

• TV Commercials and Event Coverage

• Print

- Newspaper/Magazines

• Billboards

• Web Based

– E

- Blasts

- Constant Contact

– Monthly E

- Mail Promotions

– City Representation on Our Website

• SOCIAL MEDIA

• Twitter, Facebook, Linked In

• INTERACTIVE MEDIA

• Contests

• You Tube/Videos

• EVENTS AND SPONSORSHIPS

• Local Charitable Support

- March of Dimes, Make

- A

- Wish Foundation, Red Cross, etc.

• Business/Community Support

- Golf Tournaments, Business Luncheons, Air Shows, etc.

• COMMUNITY TICKET OFFICE

# Market Growth Strategy

– Reliability & Growth

• CONSISTENT SERVICE IS KEY

• Proven Success in Other EAS Markets

• Builds Passenger Confidence in Carrier

• Dedicated Aircraft for your Airport

– 102% Flight Completion Ratio as Reported by DOT YR 2010

– Spare Aircraft Availability



### • AIR CHOICE ONE’S REVENUE INCREASED BY OVER 20% YE 2010 VS. 2009

09/30/2011 

### 75 80 85 90 95 100 105

Am. Eagle Gr. Lakes Sea Port Air Choice Completion %



## Airline Airline Completion Ratios

Works Cited: T

- 100 Segment Report DOT 2010 Calendar Year

# Market Growth Strategy

– Accessibility

• VISIBILITY

• Global Distribution Systems

– Apollo, Worldspan, Travelport, Amadeus, etc.

• Consumer Sites

– Expedia, Travelocity, Priceline, Orbitz, etc.

• Web based booking



### – www.airchoiceone.com

• Call Center

– Open 7 Days a Week



### • CONNECTIVITY

• United Airlines Agreement

• Additional Legacy Agreements Pending

09/30/2011

# Market Growth Strategy

– Pricing

Air Choice One offers the right price for the right ticket at the right time.
We take all things into consideration and enter the market with low fares. We work hard to establish a winning price point through targeted market analysis. We believe consistent pricing builds consumer confidence.

• BUILDING & SUSTAINING RIDERSHIP THROUGH PRICE

• Introductory Fares Peak Interest and Drive Passengers to Air Choice One and Your Airport



### • On

- Going Affordable Fares = Full Planes!

• Full Planes Establish the Customer Base Needed to Reduce Future Subsidy Requirements

09/30/2011 

## 0 500 1000 1500 

## 2000 2500 3000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec # of Passengers

Month of Service Air Choice One Ridership Growth EAS Markets 2010
- 2011*



### 2010 2011 *Numbers Reflect O & D

# Marketing Growth Strategy

-

New Hub, New Beginnings

ST. LOUIS’ COMBO OF LOW FARE CARRIERS AND ENDLESS CONNECTIONS AR E THE

KEY TO 

# SELLING MORE TICKETS!

09/30/2011 *Source : Southwest Airlines Website, September 2011, 14 Day Advance Purchase 

### • Air Choice One Operates from Gate E33, Terminal 2

• 244 Daily Flights to 60 Domestic & International Markets as of August, 2011.

• More than 24,700 Daily Outbound Seats. Destinations (One Way) ACO

Fare Southwest

Fare* Total

Fare
LAS : Las Vegas, NV $49 $183 $232

LAX : Los Angeles, CA $49 $141 $190
LGA : New York, NY $49 $134 $183

FLL : Fort Lauderdale, FL $49 $154 $203

DAL : Dallas, TX $49 $88 $137

# Marketing Growth Strategy

-

New Hub, New Opportunities

09/30/2011 

# NON
- STERILE OPERATION Due to absence of TSA services in the local community, we are offering non

- sterile service in STL. 

# ST. LOUIS SHUTTLE SERVICE To enhance our hassle

- free travel experience Air Choice One provides ramp 

### side transfer service to and from all concourses for connecting flights at Lambert St. Louis International Airport.

# Marketing Growth Strategy

–

Establish Presence in Nashville

AIR CHOICE ONE HAS SECURED ON

- SITE OPERATIONAL AREAS AT NASHVILL E INTERNATIONAL AIRPORT

- KEY TO 

# SELLING MORE TICKETS!

09/30/2011 

### • Air Choice One will Operate from Gate C13

• 380 Daily Flights to 70 Markets as of June, 2011

• Serving More than 10 Million Passengers Per Year

*Source : Southwest Airlines Website, September 2011, 14 Day Advance Purchase Destinations (One Way) ACO

Fare Southwest

Fare* Total

Fare

LAS : Las Vegas, NV $39 $193 $232

LAX : Los Angeles, CA $39 $157 $196

LGA : New York, NY $39 $99 $138

FLL : Fort Lauderdale, FL $39 $113 $152

DAL : Dallas, TX $39 $128 $167

# Marketing Growth Strategy

-

New Hub, New Opportunities

09/30/2011 

# SHUTTLE SERVICE We provide curbside service to connecting flights to and from all terminals at Nashville International Airport. Our shuttle van service offers a hassle

- free travel experience.


# NON
- STERILE OPERATION Due to absence of TSA services in the local community, we are offering non

sterile service in BNA.

# Options Index Jackson, Tennessee

OPTION 2 , 2 YEAR SERVICE
– BNA S ERVICE CESSNA GRAND CARAVAN Jackson, Tennessee
– Nashville International Airport
Cessna Grand Caravan 18 Round Trips Per Week

09/30/2011 OPTION 1, 2 YEAR SERVICE
– STL SERVICE CESSNA GRAND CARAVAN Jackson, Tennessee
– Lambert St. Louis International Airport
Cessna Grand Caravan 18 Round Trips Per WeekOperation Revenues

MKL

- STL Revenues $ 445,900.00 Other Revenues 4,459.00 Total Operating Revenues $ 450,359.00

Direct Operating Expenses Flying Operations $ 264,902.40 Fuel and Oil 576,217.91 Maintenance 474,616.80 Aircraft Leases 375,000.00 Total Direct $1,690,737.11 Marketing 60,000.00 Indirect 402,643.18 Total Operating Expenses $2,153,380.29

Operating Loss $1,703,021.29 Profit Element (5% total Oper. Exp.) 107,669.01 Compensation Required $1,810,690.30

Compensation per PAX $198.98 Compensation per Departure $984.28 

### Jackson, Tennessee
– Cessna Grand Caravan

Option 1: 2 Year Service 18 Total Round Trips Per Week

– Based on 98% Completion Rate 

## Jackson, Tennessee

– Lambert St. Louis International Airport

– Caravan
# Passengers: 9,100 Average Fare: $49.00 Departures: 1,840 Block Hours: 2,208 Revenue Passenger Miles: 2,102,100 Available Seat Miles: 3,814,050

09/30/2011 Representative Schedule Departure Arrival
MKL 6:00 AM STL 7:10 AM STL 10:30 AM MKL 11:40 AM MKL 12:10 PM STL 1:20 PM STL 3:00 PM MKL 4:10 PM MKL 5:10 PM STL 6:20 PM STL 7:00 PM MKL 8:10 PM

### Jackson, Tennessee
– Cessna Grand Caravan Option 2: 2 Year Service 18 Total Round Trips Per Week

– Based on 98% Completion Rate 

## Jackson, Tennessee

– Nashville International Airport

– Caravan Operation Revenues MKL

- BNA Revenues $ 347,100.00 Other Revenues 3,471.00 Total Operating Revenues $ 350,571.00

Direct Operating Expenses Flying Operations $ 254,324.70 Fuel and Oil 384,538.95 Maintenance 472,317.30 Aircraft Leases 375,000.00 Total Direct $1,486,180.95 Marketing 60,000.00 Indirect 446,459.42 Total Operating Expenses $1,992,640.37

Operating Loss $1,642,069.37 Profit Element (5% total Oper. Exp.) 99,632.02 Compensation Required $1,741,701.39

Compensation per PAX $195.70 Compensation per Departure $946.78 # Passengers: 8,900 Average Fare: $39.00 Departures: 1,840 Block Hours: 1,453 Revenue Passenger Miles: 1,165,900 Available Seat Miles: 2,162,946

09/30/2011 Representative Schedule Departure Arrival
MKL 6:00 AM BNA 6:40 AM BNA 10:30 AM MKL 11:10 AM MKL 12:30 PM BNA 1:10 PM BNA 3:00 PM MKL 3:40 PM MKL 5:00 PM BNA 5:40 PM BNA 7:00 PM MKL 7:40 PM

# The Best Choice to Succeed

09/30/2011 

### • Proven Enplanement Increases in EAS Markets

• Successful Pricing Strategy

• Demonstrated Growth in Community Support

• Proven Reliability

• Outstanding Completion Ratio

• Great Hub Connectivity



### • Successful Marketing and Public Relations Outreach

• Raise Awareness About Local Air Service

• We Cater to Community and Business Needs 

# We Look Forward to Serving You!