### Respons e to Order 2010-5- 4 Submitted : Jun e 1,201 0 

## BEFOR E TH E UNITE D STATE S DEPARTMEN T O FTRANSPORTATIO N Essential Air

Servic e a t ELY , NEVAD A under 4 9 U.S.C
. 4173 1 e t

seq . Docket : DOT-OST-1995-36 1



## Proposa l o f

McCal l Aviation , Inc
. —" I

3 

## T o Provid e Essentia l Ai r Servic e r '

- - ( c 3 

### Summar y Thi s document

contain s McCal l Aviation , Inc.' s respons e to th e Department' s Order 2010-5- 4 requestin g proposal s fo

r essential air

servic e a t Ely , Nevada
. McCal l Aviatio n ha s provide d thre e differen

t options , whic h are summarize do n pag e 3 o f th e response . Thes e proposal s provid e fo

r different servic e level s an ddifferen t aircraf t type s fo r servic e t o Ely
. W e propos e non-sto p servic e t o th e Sal t Lake City , UT hub
. McCal l Aviatio n currentl y operate s twelv e aircraf t averagin g over

4,00 0 flights pe r

year , flying thousand s o f

passenger s betwee n 25 0 airport s i n th e Intermountai n West
. Our servic e reliabilit y i s excellent
. We prid e ourselve s o n 100 % dispatc h reliability an dfirst clas s customer service
. Whil e 100 % reliability i s no t unheardo f

i n th e on-deman dcharter environment , whe n yo u perfor mthousand s o f

flights ayear , i

t i s abi g accomplishment
. We woul dbrin g thi s sam e reliability andservic e commitment t o Ely
. Wit

h aportio n o f

ou r fleet dedicate dsolel y t o th e route , w e wil l no t b e negativel y impacte db y uplin e delay s o r cancelations
. McCal l Aviatio n wil l provid e interne t base don-lin e ticketin g vi aou r websit e alon g wit

h ticketin g b y phone
. Whil e w e d o no t currentl y hav e interlin e baggag e agreement s o r code

share marketin g agreement s with major domesti c air

carrier s operatin g a

t th e hub , w e d o no t se e thi s a s a

n insurmountabl e hurdl e like i t wa s year s ago . Thi s i s primaril y du e t o th e stron g presenc e o f

Southwes t

Airline s an dother

lo w cos t carrier s tha

t d o no t participat e in interlin e agreements . Today' s ai r

travele r i s accustome dt

o thi s anddoe s no t

se e it a s burdensome
. McCal l Aviatio n currentl y operate s withou t such agreement s fro

mBoise , ID , an db y havin g appropriate number s o f

qualifie dgate agent s andbaggag e handler s o n staff , w e are abl e t o minimiz e any inconveniences
. 1

### A ke y t o al l our option s i s th e flight

schedule
. Increase denplanement s an dmore satisfie d customer s wil l b e th e resul t o f providin g Ely wit

h non-sto p schedule s tha

t are define dwit

h thei r community need s a

t th e forefront
. Wit

h non-sto p flight

time s o f les s tha n 9 0 minute s enplanement s will increas e becaus e ai r trave l become s convenien t again , whic h i

t currentl y i s not . We are confident

tha t Salt Lak e Cit y i s abette r

hub fo r Ely than th e curren t

hub becaus e passenger s tha

t are travelin g beyon dth e hub wil l hav e ashorter total trave l tim e andthei r trave l cost s wil l b e les s b y traveUng vi aSLC insteado f DEN
. Wes t

coas t citie s an dLa s Vega s ar e bette r serve dfro

mSLC
. McCal l Aviatio n i s proposin g 8 sea t aircraf t fo r al l options
. Whil e Federal regulation s suppor t th e selectio n o f

1 5 seat aircraft , clearl y historical enplanement s a t El y d o no t

justif y anythin g larger tha n 8 seat s an dth e taxpaye r woul db e bette r

serve db y smalle r

aircraft
. I f

mor e seat s per da y are anecessity , w e hav e provide da n optio n wit

h 2 non-sto p roundtrip s pe r day
. Thi s result s i n mor e than 1 5 seat s daily , an dwit h tw o flights th e schedulin g option s are superior
. We acknowledg e that

smaller aircraf t ma y require a

n increase dmarketin g an dcustomer servic e effort , howeve r

w e fee l strongl y tha

t enplanement s ca

n increas e wit

h ou r program , whic h i s th e goal o f

bot h th e EA S progra

man dth e community
. Th e cos t saving s ar e th e greates t

b y usin g pisto n powere dtwin-engin e aircraft
. Nonetheless , w e hav e als o provide da

n optio n utilizin g turbin e powered , pressurized , Beechcraf t 20 0 aircraf

t a s a n alternativ e t o non-pressurize dpisto n aircraft
. A Beechcraf t 20 0 aircraf

t woul dprovid e th e pressurize dservic e desire db y some communit y member s withou t

eithe r th e expens e o f subsidizin g larger

aircraf t or th e expens e o f

maintainin g a1 4 CF

RPar t 13 9 airpor

t a t Ely
. Question s an dcomment s concernin g thi s proposal ca n b e directe dto : LauraM
. Scot

t President McCal l Aviation , Inc
. 30 0 DeinhardLan e McCall , ID 8363 8 (208)634-713 70 ) 0 ) C O 

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C O C OOptio n 1 - Ely , N V to/fro m Sal t Lak e City , U T usin g Pipe rChieftain s 1 Roun d Tri p pe rDa y
7 nonsto p roundtri p flight s / wee k SLC/ELY 28 0 statut e mile s on e wa y Usin g 8 passenge rPA-31-35 0 Pipe rChieftai n aircraf t Se e representativ e schedul e attache d

C Y 200 8 EL

Y Estimate d Passengers CY 200 9 EL

Y Estimate d Passengers CY2008-CY200 9 Av g ELY Passengers 55 2 estimat e base d o n 9 month s o f dat a availabl e 35 5 estimat e base d o n 1 0 month s o f dat a availabl e 45 4 97. 5 % Completio n Facto r ELY/SL C Departure s EL Y Fligh t Hours EL Y Bloc k Hours EL Y Revenu e Passenge rMile s EL Y Availabl e Sea t Mile s 71 0 1,092 1,31 0 126,98 0 1,589,95 2 Operatin g Revenue s

Passenger s SLC-ELY Othe r(freight ) Tota l Operatin g Revenu e 45 4 a t $ 300.0 0 $ 136,05 0 $ 68 0 $ 136,73 0 Direct Operatin g Expense s Aircraf t Fuel/Oi l Cre w Maintenanc e Insuranc e Fligh t Operation s Tota l Direct Operatin g Expense s Indirect Operatin g Expense s

Sales/Marketing/Reservation s

El yExpense s Sal t Lak e CityExpense s Management/Administratio n Tota l Indirect Operatin g Expense s $ $ $ $ $ $
$ $ $ $ 154,94 0 277,91 7 159,38 8 114,20 0 12,22 5 18,91 2

96,00 0 50,88 0 200,62 5 75,00 0 $ 737,58 1

$ 422,50 5 Operatin g Los s Profi t (5 % o f operatin g expenses ) $ (1,023,356 ) $ 58,00 4 Annua l Subsid yRequiremen t $ 1,081,36 0Optio n 2 - Ely , N V to/fro m Sal t Lak e City , U T usin g Beechcraf t B20 0 Kin g Air s 1 Roun d Tri p pe rDa y

7 nonsto p roundtri p flight s / wee k SLC/ELY 28 0 statut e mile s on e way Se e representativ e schedul e attache d Usin g 8 passenge rBE20 0 Beechcraf t Kin g Ai raircraft

CY 200 8 EL

Y Estimate d Passengers CY 200 9 EL

Y Estimate d Passengers CY2008-CY200 9 Av g EL Y Passenger s 55 2 estimat e base d o n 9 month s o f dat a availabl e 35 5 estimat e base d o n 1 0 month s o f dat a availabl e 45 4 97. 5 % Completio n Facto r ELY/SL C Departure s 71 0 EL Y Fligh t Hours 80 1 EL Y Bloc k Hours 1,01 9 EL Y Revenu e Passenge rMile s 126,98 0 EL Y Availabl e Sea t Mile s 1,589,95 2 Operatin g Revenue s Passenger s SLC-ELY Othe r(freight ) Tota l Operatin g Revenu e Direct Operatin g Expense s Aircraf t Fuel/Oi l Cre w Maintenanc e Insuranc e Fligh t Operation s Tota l Direct Operatin g Expense s 45 4 a t

$ 475,20 0 $ 424,54 9 $ 189,20 0 $ 212,70 0 $ 50,00 0 $ 23,22 9 $ 300.0 0 $ 136,05 0 $ 68 0 $ 136,73 0

$ 1,374,87 9 Indirect Operatin g Expense s

Sales/Marketing/Reservation s

El yExpense s Sal t Lak e Cit

yExpense s Management/Administratio n Tota l Indirect Operatin g Expense s $ 96,00 0 $ 50,88 0 $ 206,62 5 $ 75,00 0 $ 428,50 5 Operatin g Los s Profi t (5 % o f operatin g expenses ) $ (1,666,653 ) $ 90,16 9 Annua l Subsid yRequiremen t $ 1,756,82 2Optio n 3 - Ely , N V to/fro m Sal t Lak e City , U T usin g Pipe rChieftain s 2 Roun d Trip s pe rWeekda y+ 1 Roun d Tri p pe rWeeken d Da y

1 2 nonsto p roundtri p flight s / wee k SLC/ELY 28 0 statut e mile s on e wa y Se e representativ e schedul e attache d Usin g 8 passenge rPA-31-35 0 Pipe rChieftai n aircraf t CY 200 8 EL

Y Estimate d Passengers CY 200 9 EL

Y Estimate d Passengers CY2008-CY200 9 Av g ELY Passenger s 55 2 estimat e base d o n 9 month s o f dat a availabl e 35 5 estimat e base d o n 1 0 month s o f dat a availabl e 45 4 97. 5 % Completio n Facto r ELY/SL C Departure s 1,21 7 ELY Fligh t Hours 1,872 EL Y Bloc k Hours 2,24 6 EL Y Revenu e Passenge rMile s 126,98 0 EL Y Availabl e Sea t Mile s 2,725,63 2 Operatin g Revenue s Passenger s SLC-ELY Othe r(freight ) Tota l Operatin g Revenu e Direc t Operatin g Expense s Aircraf t Fuel/Oi l Cre w Maintenanc e Insuranc e Fligh t Operation s Tota l Direct Operatin g Expense s 45 4 a t

$ 284,54 0 $ 467,73 8 198,62 5 192,20 0 24,45 0 36,53 3 $ $ $ $ $ 300.0 0 $ $ 136,05 0

68 0 $ 136,73 0

$ 1,204,08 6 Indirect Operatin g Expense s

Sales/Marketing/Reservation s

El yExpense s Sal t Lak e CityExpense s Management/Administratio n Tota l Indirect Operatin g Expense s Operatin g Los s Profi t (5 % o f operatin g expenses ) $ 96,00 0 $ 50,88 0 $ 230,56 5 $ 75,00 0 $ 452,44 5 $ (1,519,801 ) $ 82,82 7 Annua l Subsid yRequiremen t 1,602,62 7Sal t Lak e City , U T to/fro m ELY , N V Representativ e Schedul e fo rOptio n 1 Fligh t # Frequenc y Rout e Departur e Arriva l Equi p 

### 211 1 211 2 123456 7

123456 7 SL C - EL Y

EL Y - SL C 071 5

083 0 080 0

111 5 PA G PA G
Sal t Lak e City , U T to/fro m ELY , N V Representativ e Schedul e fo rOptio n 2 Fligh t # Frequenc y Rout e Departur e Arriva l Equi p 

### 211 1 211 2 123456 7

123456 7 SL C - EL Y

EL Y - SL C 071 5

080 0 073 0

101 5 BE2 0 BE2 0
Sal t Lak e City , U T to/fro m Ely , N V Representativ e Schedul e fo rOptio n 3 Fligh t # Frequenc y Rout e Departur e Arriva l Equi p 

### 211 1 211 2 211 3 211 4 1234 5

1234 5 123456 7 123456 7 SL C - EL Y

EL Y - SL C SL C - EL Y EL Y - SL C 071 5

083 0 153 0 164 5 080 0

111 5 161 5 193 0 PA G PA G PA G PA G

Al l time s show n ar e loca l tim e