### BEFORE THE

• • ! 

### U.S. DEPARTl\'IENT OF**TRAl~SPORTATION** 

### OFFICE OF THE SECRETARY

Essential Air Service at 

### MCN 1\'IACON, GEORGIA ) ) ) ) ) under49 U.S.C. 41731 et seq. ) 

### WASHINGTON, D.C. ·:•1J? 1:;,:/f. 

### ?b


## e.Z!f;; 

# 11 Docket**DOT-OST-2007-~**

PROPOSAL OF AMERICAN AVIATION GROUP, INC. d/b/a TWIN AIR CALYPSO TO PROVIDE ESSENTIAL AIR SERVICE AT MCN MACON, GEORGIA

Communications with respect to this document should be sent to: Clayton I. Gamber President Twin Air Calypso 498 S. 34th Street Ft. Lauderdale, Florida 33315

. ..**':/.'.~.-·:·:',** ..:: .. -·· .

June 18,2012 George M. Brown, Chairman/CEO American Aviation Group, Inc., d/b/a Twin Air Calypso 317 Eagle Ridge Road, Macon, Georgia 31216 wii<:me@yahoo.<;om Tel: 478-361-4861 Fax: 478-788-8752 Perse

# ., Essential Air Service at 

### MCN MACON, GEORGIA . ..**B,E~ORE** 

### THE

. . .. _ U.S. DEPARTI\-IENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

) ) ) ) ) 

### Docket DOT-OST-2007-29671

under49 U.S.C. 41731 et seq. ) ,,..

PROPOSAL OF AMERICAN AVIATION GROUP, INC. d/b/a TWIN.AIR CALYPSO TO PROVIDE ESSENTIAL AIR SERVICE AT MCN MACON, GEORGIA

AmericanAviation Group, Inc. d/b/aTwinAir Calpyso submits the following proposal to provide Essential Air Service (EAS) to MCN Macon, Georgia. This proposal is submitted in response to-order 2012-5-25, Served on May 24, 2012.
AmericanAviation group make the following statements:

...... _ .. L .•\mericanAviation Group, .Inc. was incorporated on November 02;**~WO/i,** in the stale of Georgia, expressly l(>r the acquisition of Twin Air Calypso Airline and its Ft. Lauderdale, Florida operations (MAMCO). Twin Air Calypso, as the Hying arm of American Aviation Group, will
usc its operating llect of seven, R passenger planes lo maintain its current routes while American Aviation Group will expand operations lo include service from :\lacon (:\ICN), GA to the Following locations:

A ,\tlanla (ATL), GA ,l. Kissimmee (ISM) A Ft. Lauderdale, FL**~l.** \Vashington (lAD), D.C.**~l.** :\Iississippi GulfCoast areas.

'2.

.\mcrican Aviation Group seeks to lake advanlai{C of the undcrscrvcd \lacon, G,\ markcl while . ,....**ke~pi_ng th~.** **pl<~~le.s i~1** **-~.l~a.~ntqlan_ce** rotation thro\tg_h ths. 

### I,"L**Lau(\sr~l.~~lc IJlaintcn;m~c**  lit_cility
' ·.• . . t •. . - •.**~.** . •'

. •.**·~** . ;**~** . . ' • • ·. (lVIAMCO)·. ··' T'his 

### will be

.

### ;~cco;nplished, in part, by the

### immedi~tte additi<;n. ol"two (2) 

### 1.9-

. passenger/freight airplanes, and within 12 months, the secondary addition of two (2) 

### ::H>-

passenger/freight airplanes. Over the next live years, Americ;in Aviati(m's goal is to convert the lll<\iority of the Twin Air Calypso Airline 11cet to a standardized thirty-passenger airplane (ex. Embraer 120 Brasilia, Saah iHO), while phasing out the current four 0) Cessna l02s, and maintaining the three (::3) Nav<\io's for private charter purposes.
3. American Aviation Group, Inc. operating plan will enable Twin Air Calypso to provide a total of
one hundred fourteen seats per day (to ATL) in each direction spread over six departures.
4. The annual subsidy rate of $1,386,306 outlined in order 2012-5-25 served on May 24, 2012 will provide a measure of financial support as this operation is being implemented but in no way 

### '

. 

## .. does this amount define the financial potenthil of the Middle Georgia Market (see Market and Marketing Plan in this document). American Aviation Group, Inc. and Twin Air Calypso will have as one ofits goals to reduce and or eliminate the need for this subsidy.
5. Twin Air Calypso has 

# an ol.ttstanding history of providing aircraft service and aircraft · maintenance to the Ft. Lauderdale, Florida community. In conjunction with this proposal, Twin Air Calypso is making application to the FAA for authorization to fly and service the 19 and 30 passenger BAE airplanes.
6. The following exhibits are appended to this proposal:

Attachment 1: Annual Subsidy Requirements for Essential air Service at 1\'ICN Attachment 2: Proposed Operating Schedule for MCN Attachment 3: American Aviation Group, Inc. Market and 1\'Iarketing Plan for 1\'ICN Attachment 4: Required Federal Certifications of Compliance

7. American Aviation Group, Inc. d/b/a Twin Air Calypso, request that the Department of 

## .**~** ....

. 

# .. 

# --.... ·•·'!·**Transport~ti9·? s~l~~t**  

### itS.**prop9~-~l**

## {?**pr~~!d(! -~S~y?F~l** **A.i~ ~~r~i~~** **~t ¥~.~_¥aeon,** **Georgi~** for**~}wo-**
• w. •**~** year term to commence withTwinAir Calypso's inauguration ofscheduled service between MCN .,;'. Macon, Ga and Atlanta Hartsfield-Jackson International Airport (ATL). Respectfully submitted,



# .. George M. Brown Chairman/CEO Perse



# ..

June 18, 2012**l'RPPOSA~** 

### OF 'WINGS AIR TO PROVIDE ESSENJ'IAL AIR SERVICE AT**:[\~lACON,** 

### ;GA. ..;_·**.·.,;.~·<- .·.·~**  ::.- -.• •' ·".'**·~··** ..\ '. ·. • '•:· ' ·'"' '• ..-:'• ', • I • ,; • ;•·\ , '**'··~··** .• '"' ' , ,· •**-~: ~**  '• 

### ATTACHl\tiENT 1 WINGS AIR Annual Subsidy Requirements for Essential Air Service Macon, Georgia 

### '\:'EAR 1: 2012

STATIS'fiCS '**~** 

### "'L\CON, GEOllGL\ COMPLETION FACTOR 99% 

# . DEPARTURES 1.859 BLOCK HOURS 223,106 REVENUE PASSENGER 3,004,800 MILES AVAILABLE SEAT 5,709,120 MILES PASSENGERS PER 9 OPERATION SEGMENT REVENUE $99

PER PASSENGER OPERA'l'ING REVENUES PASSENGER REVENUE $1,673,298

CARGO REVENUE $167,329 OTHER TOTAL $1,840,627 OPJ;J&\'l,ING

li1XPJ;JNSES PERSONNEL EXPENSES $892,360 DIRECT MAINTENANCE $212,415 FUEL 5605,267 AIRCRAFT LEASING $120,000 TOTAL OPERATING 

# .. EXPENCES $1.830,042

- o•r.JIER .,. , ., ..**li1Xl~JiJNSJiJS** PASSENGER VARIABLE COST $-1-5,000 VARIABLE STATION COSTS $523,675 MARKETING

EXPENSES $800,000 FACILITIES EXPENSES $36,000 TOTAL OTHER

EXPENSES $1,504,675 I COST INFLATION (2.-1-% PER YEAR) I TOTAL EXPENSE I $3,234,717 I OPERATING PROFIT/LOST ($1 ,394,090) I PROFIT MARGIN 15"1> OFTOTAL EXI'E:-<SESI $161,735 ANNUAL COMPENSATION 

### s1.555,825 REQUIRE:\1 ENT 

### YEAR2:2013**~L\CON,** 

### GEORGL\ 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
($1,021,173) ··""'**~**

$163,541 SI,I84.71.J...:. 

## .. ,_' 

### .·. ·: 

### Al\tiRICAN AVIATION GROUP, Inc. d/b/a TWIN AIR CALYPSO

PROPOSED SERVICE FOR 1\'IACON 

### IATLANTA, GEORGIA ATTACHIVIENT 2

' 

# ... . 

### ...,


### MA.CON 

## IATLANTA, GEORGIASERVICE MACONTOATLANTA ATLANTATOMA.CON FLIGHT DEPARTURE ARRIVAL FLIGHT DEPARTURE ARRIVAL 6:30 7:00 9:00 9:30 7:30 8:00 10:00 10:30**~: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 21:30

--

• • •**~** o'O<
- 4**--~** ••.'··1 •.**~·** \\. I**~.','** 

### ATTA.CHlVIENT 3 i.. 

### American. Aviation Group, Inc. 1\'Iarket and Marketing Plan for 1\'ICN l\'larket and Marketing Plan: A ·natural market has been created because of the population increase in the Middle Georgia Metropolitan Area. This market demands fast, safe and cost effective 

### scheduled

.air transportation to cities within 300 to 600 miles of Macon.The market requirements (or**m~ving** passengers and cargo of existing business, new business and the business oflarger carriers will be the focus ofTwinAirCalypsoAirlines. The Macon area is the third largest MSA (Metropolitan Statistical Area) in Georgia. The Middle Georgia Regional Airport (MCN), Airport CatchmentArea (ACA) consists of 21 counties in central Georgia. The ACA is impacted by the proximity to Atlanta's Hartsfield-Jackson International Airport which is less than 100 miles distance and is the busiest airport in the world. However, the convenience ofthe MCN as a selected destinations makes it the airport of choice when other factors such as schedules and relative airfares are considered. The ACAhas an estimated population of583,000 people, with 

### a"true market"at 256,6J:h1nnu:al·enplanements. Bibb County and Houston County are the two most populous counties in the 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. 

### l\'farketing is the "vital element" for successful and profitable openition in this ACA. Just putting an airplane at the airport 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

.

.**_Map~gement** believes strongly that it is addressing a**~ark,et destinedto.grows,t;JJ.st.~th_llly**  within the

next three (3) to five (5) years. · ·· The current market require 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 depicts the difference between what is at MCN today and what AmericanAviation Group, Inc. will replace them with:

## ,Cur,rent_i\ircraftused at

## .MCN

. ·

8 Passenger Caravan 

## ProposedAircraft for MCN

19**Passeng~r** 

### BAE 31

fiLE

30 Passenger BAE 42..**~** _. 

## American A\4atic:>n Group, Inc Route PlanUNiTED STATES OPAMERICA

. 

### ':>

### ~ :' .•,. ;;; DEPARTI\-IENT OFTRANSPORTATION OFFICE OFTHE SECRETARY OFFICE OFAVIATION ANALYSIS CERTIFICATION REGARDING INFLUENCINGACTIVITIES Certjfication for Contracts, Grants, Loans_and CooperativeAgreements

. The undersigned certifies, to the best ofhis or her knowledge and belief, that: (1) No Federal appropriated funds have beenpaid or will be paid, by oron behalfofthe undersigned to any person for influencing or attempting to influence an officer or employee ofany agency, a lVIember ofCongress, an officer oremployee ofCongress, or an employee ofa Member of Congress in connection with the awarding of any Federal contract, the making ofany Federal grant, the making of any federal loan, the entering intoany**cooper~tive a~ree~ent'.** **~nd** the extens{on, continuation, renewal,**am~9-dment,** or modificalron of anyFederalcontract, grant, loait"or cooperative agreement. · ·· (2) If.any funds other than Federalappropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee ofany agency, a Member ofCongress, an officer or employee of Congress or an employees ofa Member of Congress in connection with this Federal contract, grant, loan or cooperative agreement, 'the undersigned shall complete and submit Staiidard forin-LLL, ''Disclosure Form to Report InfluencingActivities," in accordance with its instructions. (3) The undersigned shall require that the language ofthis certification is included in the award documents for**~II** subawards at all tiers (including subcontracts, subgrants, and cor1tracts tmder. grants, loans and cooper,ative agreements} and th;it_all subrecipients sh,all 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 or entering 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. ,June 18, 2012 Signature Date Chairman/CEO American Aviation Group, Inc. d/b/a Twin Air Calypso Title Air Currier Macon, Georgia Essential Air SenicePoint to Which Certiticution Applies



## ..'**.~iii,.** 

### _**UNTFE.RSTATES..O~Al\tiERICA** 

### .. . .

..**-~DEPARTMENT.OFTRANSPOktATi:ON.** 

### OFFICE OFTHE SECRETARY OFFICE OFAVIATION ANALYSIS TITLE VI ASSURANCE (Implementing Title VI ofthe Civil Rights Act of 1964, as amended) '



### ASSURANCE CONCEERINGNONDISCRil\tHNATION ON THE BISIS OFDISABILITY ON

FEDERALLY-ASSISTED PROGRAMS AND ACTIVITIESRECEIVIN OR BENEFITING FROl\tl FEDERALDINANCIALASSISTANCE (Implementing the Rehabilitation Act of 1973, as amended, and the Air CarrierAccess Act of 1986) 49 CFR Parts 21 and 27 and 14 CFR Parts 271 and 382
Ametfcari Aviation Group, Inc. d/b/a Twin

### ~Air Calypso

## ·(the Recipient) HERBYAGREES THAT, (Name ofRecipient) · 

### 1. As a condition ofthe Civil Rights Act of 1964, as amended, 42 U.S.C. 2000d

- 42 U.S.C. 2000D-4; all requirements imposed by or pursuant to: Title 49, Code ofFederal Regulations, part 21, Nondiscrimination in Federally -'Assisted Programs ofthe Department of Transportation- Effectuation :OfTitle VI ofthe,Civil Rights Act of 1964; and other pertinent directives so that no person in the United States shall, on the grounds ofrace, color or national origin, be excluded from the participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity 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



### 7 . . ' ' ·' ; '

- -**~** 

### . ·, ' ' '

. . '

. ' 2 1.9(c). ·· ' · •. ·· ·· · · · ·· 2. As a condition to receiving any Federal financial assistance from the Department of Transportation, it will comply with: section 504 ofthe Rehabilitation Act of 1973, as amended (29 U.S.C. 794); the Air CarrierAccess Act of 1986 (49 U.S.C. 1374 (c)); and all requirements imposed by orpursuant to Title 49, Code ofFederal Regulations, Part 27, Nondiscrimination on the Basis ofHandicap in Programs and Activities Receiving ofBenefitting from Federal Financial Assistance, Title 14, Code offederal Regulations, Part 382, Nondiscrimination on the Basis of Handicap in Air Travel: and other pertinent directives so that not otherwise qualified person with a disability, be excluded from participation in, be denied the benefits of, be discriminated against by reason ofsuch handicap in the provision of airtransportation, or otherwise be subjected to discrimination Jmder any program for which the Recipient receives Federal financial assistance from the Department ofTransportation. This assurance is required by the Title 49, Code of Federal Regulations, section 27.9 and Title 14, code ofFederal regulation, sections 271.9(c) and 382.9. ' 3. It 

### will promptly take any measures necessary to effectuate this agreement. The recipient further agrees that it shall take reasonable actions to guarantee that it , its contractors and subcontractors subject to the Department ofTransportation regulations cited

### .above, trallsfert:es, and successor in interest**wil~**

### comply with all**.requirementsJmpo~ed** 

### or**~-** 

## r.: ..**pu.rs~ant** 

### to the·statues and Department'ofTrarisportation:.regulaii9ns sited above, other : pertinent**directives~** 

### and above assurances. 4. These assurances obligate the Recipient for the period during which 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 under the statutes and Department of Transportation regulations cited above, other pertinent directives, and the above assurances.

' . ; ' "**~**



# . .s:**Th~se** assurances are given for the purpose 'or obtaining Federal subsidy under the. Essential Air Service Program and are binding on the Recipient, contractors, subcontractors, transferees, successors in interest, and all other participants receiving Federal subsidy in the Essential Air Service Program. The person or persons 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 past year that allege violation(s) by the Recipient ofTitle VI ofthe CiviJ Rights'A,ct of 1964, as amended, section 504 ofthe Rehabilitation Act .of 1973, as amenci'ed, or theAirCarrierAccess Act of 1086; or a statement that there have been 

## llo**~·** 

## · complaints filed against it. The summery should include the date the complaint was filed, the nature ofthe complaint, the status-'Or outcome ofthe complaint (i.e., whether it is still pending or how it was resolved).

· .June18, 2012 Date

..**~** 

### ... ' .' 

### .**~** :, . ,J • • '.

. . ••. _, ·. ·' > 

### American Aviation Group,**Inc~** 

### d/b/aTwin A:ir Calypso Legal Name ofRecipient

By:

### ~--------- .......

### -------.J.•-=:;C~h~a~ir~m:::a~n.::..I.;:;:C:.:.E:..:.O~ Signature ofAuthorized Ofticial', 

# ..

. ' .. :,:·..·> ....... :

,. ' 

### UNITED STATES OFAMEIUCA

. 'DEPARTMENT

# OFTiANSPORTATION 

# . . . . . . . . . .. '.,_. 

### OF.FICE OFTHE SECRETARY

.OFFICE OFAVIATION ANALYSIS CERTIFICATION REGAREING DRUG- FREE \VORPLACE REQUIRE:MENTS IN THE PERFORlVIANCE OFSUBSIDIZED ESSENTIALARE SERVICE A. The subsidized essential air service**c~rrier** 

### certifies that it will, or will continue, to provide a drug·""- fre·e 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 the workplace; 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 

## arequirement that each employee to be engaged inthe performance of work supported by the subsidy be given a copy ofthe statement required by paragraph (a); ' .

. ...**~.,,."'** ""'' ><"

. .. . . ... -**~-.** ' 

### · (d) Notifying the employee in 

### itie statement required by paragraph (a) that, as a condition

ofemployment supported by the subsidy, the employee will:**-~.t~>·~·.'** 

### (l.)Abide by the terms ofthe statement; and (2.)Notify the employer in writing ofhis orher conviction for a violation ofa criminal drug statute occurring in the workplace no later than five calendar days after such conviction; (e) Notifying the agency in writing within ten calendar days after receiving notice under paragraph (d)(2) from an employee or otherwise receiving actual notice ofconviction. Employer ofconvicted employees must provide notice, including position title, to the Office ofAviation Analysis. Notice shall include the order number ofeach affected subsidized service; :..-_ ,

• #

## . _(0 Taking_,Oflf!**oft~~- follo)_Vin~** **-~~tiQI1s,** 

### witb.in_**~9 ~ays.p(.r~ceivtng**  

### n.o.tice_under**~-** 

### . '· ·paragraph ( d)(2); 

### with respect tQ any employee who· is so convicted; · (!.)Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements ofthe Rehabilitation Act 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 or local health, law enforcement, orother appropriate apncy; . . . (g) 

### l\tlaking 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). For the provision ofessential air service, workplaces include outstations,**maiQ.tenanc~** 

### sites, headquarters,,**offic~** 

### locations, training sites and any other worksites where work is performed that is supported by the subsidy.

Check [ ] ifthere are workplaces on file that are not identified here. American Aviation Group, Inc. d/b/a Twin Air Calypso

•· " •**~.c.'** •' 4',, ;.**''-~·** ..', ·..**':,~.-** .....**·~** ., 

### By: , Chairman/CEO**~Si-gn-at-ur-e·--~--------------~~~~~~~** 

### June 18,2012 Date 

# -.

•