BEFOR E TH E DEPARTMEN T O FTRANSPORTATIO N OFFIC E O F TH E SECRETAR Y WASHINGTON , D.C . 

### -vViTMEN T O F

Essential Air

Servic e a t MUSCL E SHOALS , ALABAM A Under 4 9 U.S.C . 4173 1 e t

seq . Docke t DOT-OST-2000-785 6 

### 5 3

PROPOSA L I N RESPONS E T O ORDE R2010-10-1 3 Pursuan t t o Order 2010-10-13 , Charter

Ai r Transport , Inc . (CAT ) an dPubli c Charters , Inc . (PC ) hereb y submi t

thei r join t proposal t o provid e essential ai r transportatio n servic e a

t Muscl e Shoals , Alabam ahereinafter referre dto a s th e "EA S community. " Abou t th e Offeror s CAT i s aU . S . Direc t

Ai r Carrie r (certificate number

GNOA005I ) authorize dby th e FA A to operate under

1 4 CFRPar

t 135 . CAT i s als o authorize dby th e USDO T t o operate a s a Commuter

Ai r Carrie r under 1 4 CF RPar t 29 8 (se e Order

2010-3-29) . CAT presentl y operate s five (5 ) Embraer

EMB-12 0 "Brasilia " 30-passenge r regional airliner s i

n additio n to other turbine-powere daircraft . PC i s aU.S . Charter

Operato r authorize dpursuan t

t o 1 4 Par t 38 0 to organiz e an dsel l Publi c Charter s a s a

n Indirec t Ai r Carrier . P

C i s authorize dby lAT A t o us e th e two-letter cod e "PI " an dha s distributio n right s on certai n GD S platforms , throug h certai n onlin e trave l agencies , an dha s a n agreement

to settl e ticke t

sale s throug h ARC . It

own s proprietar

y web-base dsoftwar

e product s tha

t togethe r addres s al l aspect s o f

ticke t sales , distribution , e-ticketing , baggag e tracking , an dinterlin e communications . PC i s TS A Secure Fligh t compliant , providin g bot

h domesti c an dinternational TS A clearances . PC als o ha s direc t experienc e i n al l aspect s o f air carrier statio n operation s an dmanagement .CAT andPC jointl y mak e thi s proposal to provid e Essential Ai r Servic e to th e EA S communit y a s publi c charter s i

n accordanc e wit

h 1 4 CF RPar t 380 . A s set

fort h i n our Petitio n fo

r Reconsideratio n o f

th e DOT' s finding i n Order 2010-9-26 , filedon Octobe r 20 , 201 0 andhereb y incorporate db y reference , DO T ma y provid e EA S subsidy t o suppor t thi s propose dservice . Withou t limitin g th e forgoing , CAT/P C hereb y request s tha t th e DO T an dth e EA S communit y waiv e th e necessar

y provision s o f

4 9 U.S.C . § 4173 2 s o tha t w e ma y operat e th e propose d servic e a s publi c charters . Propose dSchedul e CAT/P C propose s thre e option s servic e option s fo r th e EA S community : Optio n 1 : non-sto p servic e to Hartsfield-Jackso n Atlant aInternational Airpor t (ATL ) in Atlanta , Georgi a1 2 time s pe r week (tw o roun dtrip s pe r

da y Monda y throug h Frida

y an don e roun dtri p eac h da

y on Saturda

y andSunday ) a s set

fort h in th e followin g pro-form aschedul e (day s an dtime s are flexible):

Optio n 2 : non-sto p servic e t o Memphi s International Airpor t (MEM ) i n Memphis , Tennesse e 1 2 time s pe r

week (tw o roun dtrip s pe r

da y Monda y throug h Frida

y andon e roun d tri p eac h da

y o n Saturda

y an dSunday ) a s se t

fort h i n th e followin g pro-form aschedul e (day s an d time s are flexible):Pro-Form a Schedule : Optio n 2 - Twic e Eac h Weekda y wit h On e Roun d Tri p o n Saturda y an d On e Roun d Tri p o n Sunda y Deo t (Loca l Time )



## . w a
, ; MB A WS t ME M 6:0 0 A M

8.-00A M 3;3 0 P M 5:3 0 P M Arriv e (Loca l Time )

ME M MS L ME M MS l 6:5 0 A M

S.-SOA M 4:2 0 P M 6:2 0 P M Stop s 0 0 . 0 0 Tim e

.8 0 ^ 0 .81 0 .8 0 Optio n 3 : non-sto p servic e t o Nashvill e Internationa l Airpor t (BNA ) i n Nashville , Tennesse e 1 2 time s pe r

wee k (tw o roun dtrip s pe r

da y Monda y throug h Frida y an don e roun d tri p eac h da y o n Saturda y an dSunday ) a s se t forth i n th e followin g pro-form aschedul e (day s an d time s ar e flexible):
Pro-Form a Schedule : Optio n 3 - Twic e Eac h Weekda y wit h On e Roun d Tri p o n Saturda y an d On e Roun d Tri p o n Sunda y Dep t (Loca l Time ) i:^m.i,n' S Arriv e (Loca l Time ) Stop s Tim e 

## 0 M " '*<i%y""'< ) '>j« ' - 4 

# m . i^^M A 0 ..7 5 

# 'mm . riM ' 19151 / 

### Ji l fW'.f u ^ W' W 'n-pi^i i 

## 4 m 4:aQ M M ^J^nl^||^.l.J|ilifOll»»lel>l l Si30f> M 

## I m 9:2 0 (> M 

### 3 Annua l Compensatio n Optio n 1 : W e hav e determine dth e annua l compensatio n requiremen t fo r ou r service s propose di n Optio n 1 t o b e $2,190,143 . A summar y o f ou r projecte drevenue s an dexpense s fo r Optio n 1 appear s i n Exhibi t A hereto . Optio n 2 : W e hav e determine dth e annua l compensatio n requiremen t fo r ou r service s propose di n Optio n 2 t o b e $2,195,765 . A summar y o f ou r projecte drevenue s an dexpense s fo r Optio n 2 appear s i n Exhibi t B hereto . Optio n 3 : W e hav e determine dth e annua l compensatio n requiremen t fo r ou r service s propose di n Optio n 3 t o b e $2,166,494 . A summar y o f ou r projecte drevenue s an dexpense s appear s i n Exhibi t

C hereto .Aircraf

t an dOperation s CAT/P C propose s operation s usin g CAT' s EMB-12 0 "Brasilia " aircraft . The EMB-12 0 i s apressurize dtwin-engin e turbopro p airline r buil t an dregulate dto 1 4 CF

RPar t 2 5 standards . It s cre w complimen t

include s aCaptain , Firs t

Officer , an dFlight

Attendant . The EMB-12 0 ha s a readily-accessibl e mai n cabi n tha t seat s 3 0 passenger s an dha s th e feature s tha t th e publi c expect s o f a n airlin e operation , includin g overheadluggag e bins , agalle y capabl e o f dispensin g ho t

and col ddrinks , an daftill-size privat e lavatory . Th e EMB-12 0 als o feature s aflight dec k tha t i s physicall y separate dfro

mth e mai n passenge r

cabi n an dapressurize dcarg o hol dwit h 1,20 0 pound s o f capacity . A s note dabove , CAT presentl y ha s five (5 ) EMB-12 0 aircraf t in it s fleet, providin g ampl e reserv e capacit y t o addres s plarme dan dunplanne daircraf t maintenanc e requirements . Al l operation s wil l b e conducte dto an dfro mth e mai n terminal s a

t each airpor

t on th e route . Al l passenger s an dth e aircraf t wil l underg o ful

l TS A screenin g in th e mai n terminal a t thei r trip' s point

o f origin . Connection s A t eac h hub airport , w e wil l us e iimovativ e approache s suc h a s combinin g interne t boardin g pas s printin g technolog y wit h colo r code dbaggag e identificatio n tag s to facilitate th e transfer o f passenger s andbaggag e to an dfro mothe r carrier s throug h steril e terminal operations . Our statio n personne l wil l wor k one-on-on e wit

h th e statio n persoime l o f

th e other carrier s usin g thes e andother

creativ e method s to provid e seamles s boardin g an dbaggag e handlin g fo r ou r cotmectin g passengers .Sale s Sale s wil l b e conducte db y usin g PC' s "PI " lAT A cod e throug h it s proprietar y computerize dreservatio n syste m(CRS) . PC' s CR S ha s "Typ e A " connectivit y an dha s bee n certifie dfo

r E-Ticketin g on bot

h th e Sabr e an dAmadeu s Global Distributio n System s (GDS) . On e o f th e feature s tha

t GD S participatio n provide s i s acces s to informatio n abou t al l availabl e cormection s a

t th e EA S hub airport . GD S participatio n als o make s fare s availabl e world-wide , maximizin g exposure fo

r th e EA S Communities . In additio n t o GD S distribution , our flights wil l b e availabl e fo r purchas e throug h a number o f interne t trave l agents , includin g bu t no t limite dto Travelocit

y an dExpedia , a s wel l a s throug h our

ow n web site . Throug h GD S an dinterne t distribution , w e enabl e passenger s o r thei r trave l agent s to construc t itinerarie s usin g multipl e carrier s b y purchasin g ticket s o n eac h carrier separately . Trave l agent s ca

n us e aspecial "segmen t

select " functio n tha

t enable s the n t o buil deach segment o f flight wit h differen t carrier s o n th e sam

e itinerar y regardles s if

ther e i s a n existin g interlin e agreement . We receiv e complete electroni c informatio n o n al l o f our bookings , includin g multipl e carrier

itineraries . Ou

r syste mi s designe dt o identif y suc h booking s an dto provid e th e pertinen t dat at o ou

r uplin e an ddownlin e statio n personnel . Our local statio n persorme l wil l wor k closel y wit

h th e connectin g carrier s t o ensure th e mos t expeditiou s transfer s o f

bot h passenger s an dbaggag e to th e final destinatio n points . We wil l fiill

y compl y wit

h th e 1 4 C.F.R . Par

t 38 0 provision s governin g tour operator participan t

contracts . Scree n display s wil l disclos e th e informatio n require db y Par t 38 0 and DO T guidanc e on advertisin g an dinterne t sales . Also , a s par

t o f th e purchas e process , passenger s or

thei r trave l agent s wil l receiv e electroni c copie s o f th e Operato r

Participan t Contrac t an dth e CAT Contrac t

o f Carriage .Fund s fromal l GD S an donlin e sale s will b e cleare dthroug h th e Airlin e Reportin g Cotporatio n an dremitteddirectl y int o th e depositor y escro w accoun t require db y Par

t 380 . I n addition , passenger s wil l protecte db y Part 38 0 bondin g an descro w requirement s applicabl e t o bot h CA T an dPC . CAT' S Contrac t

o f Carriag e fo r

EA S flight s will incorporat e al l DO T regulation s providin g consume r protectio n tha t

ar e applicabl e t o commute r ai r carriers , meetin g consume r expectation s fo r schedule dservic e operation s with aircraf t havin g fewe r

tha n 6 0 passenge r

scats . Marketin g Ou r marketin g pla n includes , bu t i s no t limite dto :
• A n aggressiv e pricin g structur e (w e estimat e a n averag e on e way far e o f $89.00 )

• Us e o f

media , includin g loca l televisio n an dradio , t o promot e th e airport s an dEA S

• Direc t sellin g t o businesse s withi n aone-hou r driv e o f eac h EA S airpor t

• A progra mprovidin g selection s of unsubsidize dflights fro meac h communit y t o destination s o f interes t t o promot e awarenes s o f th e loca l airport

an dth e EA S progra m I n all o f ou r marketin g an dsale s efforts , CAT/P C wil l tak e al l step s necessar y t o compl y with DOT' S consume r

protectio n regulation s an dt o ensur e that ou r trad e practice s ar e fair . ctfull y submitte dthi s IT" " day of Decembe r

2010 ,

CHARTE RAI RTRANSPORT , INC . Davi dA . Lucas , Vic e President/CF O 230 1 Nort h Margina l Roa d Cleveland , Ohi o 4411 4 216-348-1415 . x21 0 (voice ) 216-348-143 2 (fax) dlucas<S)chafterairtransport.co m(e-mail ) BLI C CHARTERS , INC . JimGallagher , President/CE O 20 1 Hanga

r Roa d Avoca , P A 1870 2 570-457-195 0 (voice ) 570-457-411 3 (fax ) JG727(qaaol.co

m(e-mail )Exhibi t A CAT/P C Annua l Compensatio n Requirement s fo r Essentia l Ai rSerivc e a t Muscl e Shoals , Alabam a 12/17/201 0

Optio n 1 - MSL-ATL-MS L (2 xPall y Monda y throug h Friday : I x Saturda y an d Sunday ) Departure s Hour s Revenu e Passenge rMile s Availabl e Sea t Mile s 1,23 6 1,23 6 3,691,05 1 7,439,32 8 Projecte d Operatin g Revenue :

MC N Tota l Passenger s Averag e Far e Revenu e 18,57 6 $ 88.8 3 $ 1,650,060.0 0 Tota l Projecte d Operatin g Revenu e $
_ 1,650,060.0 0 Projecte d Operatin g Expenses : Aircraft , Insurance , Cre w $ 1,140,293.8 4 Maintenanc e $ 794,046.1 6 Fue l $ 611,820.0 0 0£eration s $ 866,756.0 0 Tota l Projecte d Direc t Expense s $ Tota l Projecte d Indirec t Expense s $ Tota l Projecte d Operatin g Expense s Projecte d Ne t Gai n (Loss ) Fro m Operations : $ $ 3,412,916.0 0 427.287.5 5 3,840,203.5 5 (2,190,143.55 ) Annua l Compensatio n Requiremen t $ 2,190,143.5 5Exhibi t B CAT/P C Annua l Compensatio n Requirement s fo r Essentia l Ai rSerivc e a t Muscl e Shoals , Alabam a 12/17/201 0

Optio n 2 - MSL-MEM-MS L (2 x Dail y Monda y throug h Friday : I x Saturda y an d Sunday ) Departure s Hour s Revenu e Passenge rMile s Availabl e Sea t Mile s 1,23 6 98 9 2,033,74 1 5,084,35 2 Projecte d Operatin g Revenue :

MC N Tota l Passenger s Averag e Far e Revenu e 14,85 6 $ 98.8 4 $ 1,468,368.0 0 Tota l Projecte d Operatin g Revenu e $
_ 1,468,368.0 0 Projecte d Operatin g Expenses : Aircraft , Insurance , Cre w $ 1,265,904.0 0 Maintenanc e $ 686,976.0 0 Fue l $ 489,456.0 0 Operation s $ 855;536.0 0 Tota l Projecte d Direc t Expense s $ 3,297,872.0 0 Tota l Projecte d Indirec t Expense s $ 366,260.6 7 Tota l Projecte d Operatin g Expense s Projecte d Ne t Gai n (Loss ) Fro m Operations : $ $ 3,664,132.6 7 (2,195,764.67 ) Annua l Compensatio n Requiremen t $ 2,195,764.6 7Exhibi t C CAT/P C Annua l Compensatio n Requirement s fo r Essentia l Ai rSerivc e a t Muscl e Shoals , Alabam a 12/17/201 0

Optio n 3 - MSL-BNA-MS L (2 xDail y Monda y throug h Friday : I x Saturda y an d Sunday ) Departure s Hour s Revenu e Passenge rMile s Availabl e Sea t Mile s 1,23 6 92 7 1,620,40 3 4,051,00 8 Projecte d Operatin g Revenue :

MC N Tota l Passenger s Averag e Far e Revenu e 14,85 6 $ 98.8 4 $ 1,468,368.0 0 Tota l Projecte d Operatin g Revenu e $
_ 1,468,368.0 0

Proiecte d Operatin g Expenses : Aircraft , Insurance , Cre w $ 1,276,410.0 0 Maintenanc e $ 670,290.0 0 Fue l $ 458,865.0 0 Operation s $ 863,036.0 0 Tota l Projecte d Direc t Expense s $ Tota l Projecte d Indirec t Expense s $
_ Tota l Projecte d Operatin g Expense s Projecte d Ne t Gai n (Loss ) Fro m Operations : 3,268,601.0 0 366,260.6 7 3,634,861.6 7 (2,166,493.67 ) Annua l Compensatio n Requiremen t $ 2,166,493.6 7CERTIFICAT E O FSERVIC E

I hereb y certif y tha t I have thi s dat

e servedacopy o f

th e foregoin

g motion o

n the followin

g person b y electroni c mail : Mr . Denni s DeVany , Divisio n Chief , USDO T EA S Program .

1 7 Decembe

r 201 0 

# I 

# J.J ' \rr/cfh 3 DavidA . Lucas , VP/CFO Charte r Ai r Transport , Inc .