BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

-vViTMENT OF 

Essential Air Service at 

MUSCLE SHOALS, ALABAMA 

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

Docket DOT-OST-2000-7856 

53 

PROPOSAL IN RESPONSE TO ORDER 2010-10-13 

Pursuant to Order 2010-10-13, Charter Air Transport, Inc. (CAT) and Public Charters, 

Inc. (PC) hereby submit their joint proposal to provide essential air transportation service at 

Muscle Shoals, Alabama hereinafter referred to as the "EAS community." 

About the Offerors 

CAT is a U. S. Direct Air Carrier (certificate number GNOA005I) authorized by the FAA 

to operate under 14 CFR Part 135. CAT is also authorized by the USDOT to operate as a 

Commuter Air Carrier under 14 CFR Part 298 (see Order 2010-3-29). CAT presently operates 

five (5) Embraer EMB-120 "Brasilia" 30-passenger regional airliners in addition to other 

turbine-powered aircraft. 

PC is a U.S. Charter Operator authorized pursuant to 14 Part 380 to organize and sell 

Public Charters as an Indirect Air Carrier. PC is authorized by lATA to use the two-letter code 

"PI" and has distribution rights on certain GDS platforms, through certain online travel agencies, 

and has an agreement to settle ticket sales through ARC. It owns proprietary web-based software 

products that together address all aspects of ticket sales, distribution, e-ticketing, baggage 

tracking, and interline communications. PC is TSA Secure Flight compliant, providing both 

domestic and international TSA clearances. PC also has direct experience in all aspects of air 

carrier station operations and management. 
CAT and PC jointly make this proposal to provide Essential Air Service to the EAS community 

as public charters in accordance with 14 CFR Part 380. As set forth in our Petition for 

Reconsideration of the DOT's finding in Order 2010-9-26, filed on October 20, 2010 and hereby 

incorporated by reference, DOT may provide EAS subsidy to support this proposed service. 

Without limiting the forgoing, CAT/PC hereby requests that the DOT and the EAS community 

waive the necessary provisions of 49 U.S.C. § 41732 so that we may operate the proposed 

service as public charters. 

Proposed Schedule 

CAT/PC proposes three options service options for the EAS community: 

Option 1: non-stop service to Hartsfield-Jackson Atlanta International Airport (ATL) in 

Atlanta, Georgia 12 times per week (two round trips per day Monday through Friday and one 

round trip each day on Saturday and Sunday) as set forth in the following pro-forma schedule 

(days and times are flexible): 

Option 2: non-stop service to Memphis International Airport (MEM) in Memphis, 

Tennessee 12 times per week (two round trips per day Monday through Friday and one round 

trip each day on Saturday and Sunday) as set forth in the following pro-forma schedule (days and 

times are flexible): 
Pro-Forma Schedule: Option 2 - Twice Each Weekday with 

One Round Trip on Saturday and One Round Trip on Sunday 

Deot (Local Time) 

. wa 

, ; MBA 

WSt 

MEM 

6:00 AM 

8.-00AM 

3;30 PM 

5:30 PM 

Arrive (Local Time) 

MEM 

MSL 

MEM 

MSl 

6:50 AM 

S.-SOAM 

4:20 PM 

6:20 PM 

Stops 

0 

0 . 

0 

0 

Time 

.80 

^0 

.810 

.80 

Option 3: non-stop service to Nashville International Airport (BNA) in Nashville, 

Tennessee 12 times per week (two round trips per day Monday through Friday and one round 

trip each day on Saturday and Sunday) as set forth in the following pro-forma schedule (days and 

times are flexible): 

Pro-Forma Schedule: Option 3 - Twice Each Weekday with 

One Round Trip on Saturday and One Round Trip on Sunday 

Dept (Local Time) 

i:^m.i,n'S 

Arrive (Local Time) Stops Time 

" '*<i%y""'< 0) '>j« M ' - 4 m. 

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Annual Compensation 

Option 1: We have determined the annual compensation requirement for our services 

proposed in Option 1 to be $2,190,143. A summary of our projected revenues and expenses for 

Option 1 appears in Exhibit A hereto. 

Option 2: We have determined the annual compensation requirement for our services 

proposed in Option 2 to be $2,195,765. A summary of our projected revenues and expenses for 

Option 2 appears in Exhibit B hereto. 

Option 3: We have determined the annual compensation requirement for our services 

proposed in Option 3 to be $2,166,494. A summary of our projected revenues and expenses 

appears in Exhibit C hereto. 
Aircraft and Operations 

CAT/PC proposes operations using CAT's EMB-120 "Brasilia" aircraft. The EMB-120 

is a pressurized twin-engine turboprop airliner built and regulated to 14 CFR Part 25 standards. 

Its crew compliment includes a Captain, First Officer, and Flight Attendant. The EMB-120 has a 

readily-accessible main cabin that seats 30 passengers and has the features that the public expects 

of an airline operation, including overhead luggage bins, a galley capable of dispensing hot and 

cold drinks, and a ftill-size private lavatory. The EMB-120 also features a flight deck that is 

physically separated from the main passenger cabin and a pressurized cargo hold with 1,200 

pounds of capacity. As noted above, CAT presently has five (5) EMB-120 aircraft in its fleet, 

providing ample reserve capacity to address plarmed and unplanned aircraft maintenance 

requirements. 

All operations will be conducted to and from the main terminals at each airport on the 

route. All passengers and the aircraft will undergo full TSA screening in the main terminal at 

their trip's point of origin. 

Connections 

At each hub airport, we will use iimovative approaches such as combining internet 

boarding pass printing technology with color coded baggage identification tags to facilitate the 

transfer of passengers and baggage to and from other carriers through sterile terminal operations. 

Our station personnel will work one-on-one with the station persoimel of the other carriers using 

these and other creative methods to provide seamless boarding and baggage handling for our 

cotmecting passengers. 
Sales 

Sales will be conducted by using PC's "PI" lATA code through its proprietary 

computerized reservation system (CRS). PC's CRS has "Type A" connectivity and has been 

certified for E-Ticketing on both the Sabre and Amadeus Global Distribution Systems (GDS). 

One of the features that GDS participation provides is access to information about all available 

cormections at the EAS hub airport. GDS participation also makes fares available world-wide, 

maximizing exposure for the EAS Communities. 

In addition to GDS distribution, our flights will be available for purchase through a 

number of internet travel agents, including but not limited to Travelocity and Expedia, as well as 

through our own web site. 

Through GDS and internet distribution, we enable passengers or their travel agents to 

construct itineraries using multiple carriers by purchasing tickets on each carrier separately. 

Travel agents can use a special "segment select" function that enables then to build each segment 

of flight with different carriers on the same itinerary regardless if there is an existing interline 

agreement. We receive complete electronic information on all of our bookings, including 

multiple carrier itineraries. Our system is designed to identify such bookings and to provide the 

pertinent data to our upline and downline station personnel. Our local station persormel will 

work closely with the connecting carriers to ensure the most expeditious transfers of both 

passengers and baggage to the final destination points. 

We will fiilly comply with the 14 C.F.R. Part 380 provisions governing tour operatorparticipant contracts. Screen displays will disclose the information required by Part 380 and 

DOT guidance on advertising and internet sales. Also, as part of the purchase process, 

passengers or their travel agents will receive electronic copies of the Operator Participant 

Contract and the CAT Contract of Carriage. 
Funds from all GDS and online sales will be cleared through the Airline Reporting 

Cotporation and remitted directly into the depository escrow account required by Part 380. In 

addition, passengers will protected by Part 380 bonding and escrow requirements applicable to 

both CAT and PC. 

CAT'S Contract of Carriage for EAS flights will incorporate all DOT regulations providing 

consumer protection that are applicable to commuter air carriers, meeting consumer expectations 

for scheduled service operations with aircraft having fewer than 60 passenger scats. 

Marketing 

Our marketing plan includes, but is not limited to: 

• An aggressive pricing structure (we estimate an average one way fare of $89.00) 

• Use of media, including local television and radio, to promote the airports and EAS 

• Direct selling to businesses within a one-hour drive of each EAS airport 

• A program providing selections of unsubsidized flights from each community to destinations 

of interest to promote awareness of the local airport and the EAS program 

In all of our marketing and sales efforts, CAT/PC will take all steps necessary to comply with 

DOT'S consumer protection regulations and to ensure that our trade practices are fair. 

ctfully submitted this IT"" day of December 2010, 

CHARTER AIR TRANSPORT, INC. 

David A. Lucas, Vice President/CFO 

2301 North Marginal Road 

Cleveland, Ohio 44114 

216-348-1415. x210 (voice) 

216-348-1432 (fax) 

dlucas<S)chafterairtransport.com (e-mail) 

BLIC CHARTERS, INC. 

Jim Gallagher, President/CEO 

201 Hangar Road 

Avoca, PA 18702 

570-457-1950 (voice) 

570-457-4113 (fax) 

JG727(qaaol.com (e-mail) 
Exhibit A 

CAT/PC Annual Compensation Requirements 

for 

Essential Air Serivce at 

Muscle Shoals, Alabama 

12/17/2010 

Option 1 - MSL-ATL-MSL (2x Pally Monday through Friday: Ix Saturday and Sunday) 

Departures 

Hours 

Revenue Passenger Miles 

Available Seat Miles 

1,236 

1,236 

3,691,051 

7,439,328 

Projected Operating Revenue: 

MCN 

Total Passengers Average Fare Revenue 

18,576 $ 88.83 $ 1,650,060.00 

Total Projected Operating Revenue $_ 1,650,060.00 

Projected Operating Expenses: 

Aircraft, Insurance, Crew $ 1,140,293.84 

Maintenance $ 794,046.16 

Fuel $ 611,820.00 

0£erations $ 866,756.00 

Total Projected Direct Expenses $ 

Total Projected Indirect Expenses $ 

Total Projected Operating Expenses 

Projected Net Gain (Loss) From Operations: 

$ 

$ 

3,412,916.00 

427.287.55 

3,840,203.55 

(2,190,143.55) 

Annual Compensation Requirement $ 2,190,143.55 
Exhibit B 

CAT/PC Annual Compensation Requirements 

for 

Essential Air Serivce at 

Muscle Shoals, Alabama 

12/17/2010 

Option 2 - MSL-MEM-MSL (2x Daily Monday through Friday: Ix Saturday and Sunday) 

Departures 

Hours 

Revenue Passenger Miles 

Available Seat Miles 

1,236 

989 

2,033,741 

5,084,352 

Projected Operating Revenue: 

MCN 

Total Passengers Average Fare Revenue 

14,856 $ 98.84 $ 1,468,368.00 

Total Projected Operating Revenue $_ 1,468,368.00 

Projected Operating Expenses: 

Aircraft, Insurance, Crew $ 1,265,904.00 

Maintenance $ 686,976.00 

Fuel $ 489,456.00 

Operations $ 855;536.00 

Total Projected Direct Expenses $ 3,297,872.00 

Total Projected Indirect Expenses $ 366,260.67 

Total Projected Operating Expenses 

Projected Net Gain (Loss) From Operations: 

$ 

$ 

3,664,132.67 

(2,195,764.67) 

Annual Compensation Requirement $ 2,195,764.67 
Exhibit C 

CAT/PC Annual Compensation Requirements 

for 

Essential Air Serivce at 

Muscle Shoals, Alabama 

12/17/2010 

Option 3 - MSL-BNA-MSL (2x Daily Monday through Friday: Ix Saturday and Sunday) 

Departures 

Hours 

Revenue Passenger Miles 

Available Seat Miles 

1,236 

927 

1,620,403 

4,051,008 

Projected Operating Revenue: 

MCN 

Total Passengers Average Fare Revenue 

14,856 $ 98.84 $ 1,468,368.00 

Total Projected Operating Revenue $_ 1,468,368.00 

Proiected Operating Expenses: 

Aircraft, Insurance, Crew $ 1,276,410.00 

Maintenance $ 670,290.00 

Fuel $ 458,865.00 

Operations $ 863,036.00 

Total Projected Direct Expenses $ 

Total Projected Indirect Expenses $_ 

Total Projected Operating Expenses 

Projected Net Gain (Loss) From Operations: 

3,268,601.00 

366,260.67 

3,634,861.67 

(2,166,493.67) 

Annual Compensation Requirement $ 2,166,493.67 
CERTIFICATE OF SERVICE 

I hereby certify that I have this date served a copy of the foregoing motion on the following 

person by electronic mail: Mr. Dennis DeVany, Division Chief, USDOT EAS Program. 

17 December 2010 

I J.J ' \rr/cfh3 

David A. Lucas, VP/CFO 

Charter Air Transport, Inc.