PROPOSAL TO PROVIDE ESSENTIAL AIR SERVICE AT 

Watertown, South Dakota

DOCKET OST-2001-10644

April 5th, 2011

7505 NE Airport Way Portland, Oregon 97218 
COMPANY OVERVIEW

• SeaPort Airlines is a FAA certified scheduled air service provider with 27 

years of experience in commercial aviation. Our company’s foundation is 

built on efficient and reliable service to rural communities. Both SeaPort 

Airlines and our sister company, Wings of Alaska, currently operate routes 

under the Essential Air Service program, as well as un-subsidized operations 

on established competitive routes.

• Wings of Alaska is the premier airline serving Southeast Alaska. Growing in 

reputation and size, it has become one of the most successful regional air 

carriers in Alaska providing scheduled passenger, freight, and charter 

services between Juneau and Skagway, Haines, Hoonah, and Gustavus, with 

weekly flights to Excursion Inlet.
IT’S ABOUT TIME

SeaPort Airlines currently operates 26 daily scheduled flights in four Northwest 

cities, 24 daily scheduled flights in five Mid South cities, and six daily scheduled flights 

in two Midwest cities. With six EAS routes, SeaPort Airlines currently has a fleet 

comprised of seven Pilatus PC-12’s.

Northwest

• 26 Daily Flights

• Three PC-12’s

• One EAS Route

Mid South/Midwest

• 24 Daily Flights

• Four PC-12’s

• Five EAS Routes
BRINGING ALASKA CLOSER

Wings of Alaska currently operates 30 daily scheduled flights to six Southeast 

Alaska cities with a fleet comprised of three Cessna 207’s and three Cessna 208 Grand 

Caravans. 

Southeast Alaska

• 30 Daily Flights

• Three Cessna 208’s

• Three Cessna 207’s

• One EAS Route
OUR AIRCRAFT

SeaPort Airlines operates the Pilatus PC-12 aircraft. The PC-12 is a Swiss-built 

pressurized turboprop aircraft typically found in corporate aviation, but utilized by 

SeaPort Airlines in a nine seat commuter configuration. The world's best-selling 

turbine business aircraft, still in production today, the PC-12 can shuttle you with 

comfort and speed.

Pilatus, the world market leader in the manufacture of turboprop aircraft and

the only Swiss company to develop, produce and sell aircraft and training

systems all over the world. http://www.pilatus-aircraft.com
EAS HISTORY

Whereas many communities have been promised service that has never transpired, 

SeaPort delivers Essential Air Service to seven communities: Excursion Inlet, 

Alaska; Pendleton, Oregon; Jonesboro, Arkansas; El Dorado, Arkansas; Hot Springs, 

Arkansas; Harrison, Arkansas; Salina, Kansas. 

In every case, after award, we have started on time, on budget, and with fares either

at or below that which we outlined in our bid, as compared to so many other airlines

who place bids with unreasonable fares that are never realized by the traveling

public.
PROPOSED PLAN

SeaPort proposes four direct round trips per day between Watertown and Minneapolis, 

seven days a week. This service level will offer more than enough inventory to provide 

for the historical traffic of the last several years. This allows us to keep the schedule 

flexible to be responsive to requests for schedule or destination changes in the future.

SeaPort has constructed the schedule to maximize traffic flow with flights morning,

midday, and evening. SeaPort believes that traffic will increase in year two as the speed 

and convenience of our service become more familiar to the residents of these 

communities. 

We are therefore able to offer these communities service with:

• Comfortable and fast pressurized Pilatus PC-12 aircraft

• Convenient schedules

• Affordable fares

• A reasonable and sustainable subsidy amount 
PROPOSED PLAN CONTINUED

SeaPort Airlines emphasizes customer service and convenience, and in so doing, our platform 

is reminiscent of commercial air service of the past in that our passengers only need to arrive 

20 minutes prior to departure.

In Minneapolis, SeaPort would use the business aircraft center for an enhanced travel 

experience. We will provide complimentary shuttle van service to and from the main terminal 

for those passengers needing to connect to, or returning from, more distant destinations. This 

model has proven itself well at our hubs in Portland, OR, Memphis, TN, and Kansas City, MO 

and is no less convenient than a typical gate change.

Further, a no-TSA model will offer the communities tremendous appeal for quick trips to and 

from the hub, or other potential major market connections to be served by SeaPort. A no-TSA 

model has the greatest potential to draw business and leisure traffic from the hub that 

would otherwise travel by highway if a traditional TSA-restricted airline was the only flight

option. However, SeaPort can provide a traditional service pattern inclusive of TSA screening 

if the community so chooses.

Lastly, the $69 dollar fare in our proposal is an average fare. Travel to the hub will be as low as 

$49.00 one way. This fare is far less than the current operator. 
NO LINES. 

NEVER ANY WAITING.

SeaPort Airlines is unique in that it markets to travelers the ease and convenience 

of by-passing TSA security screening. 

• Increased reliability in arrival and departure times.

• Quicker turn times.

• Arrive just 20 minutes before departure, board, and go.

• No Body Scanners. No rubber gloves. No need to take your shoes off.

WE FOUND WHAT AIR TRAVEL LOST:

EASE AND CONVENIENCE
EFFICIENCY AND REACH

• Full GDS visibility (Sabre, Amadeus, Apollo, Galileo, Worldspan) for any travel agent.

• Visibility on Expedia.com, Travelocity.com, Orbitz.com, and Priceline.com. 

• Interline ticketing agreement with US Airways. 

• Reservations available online at SeaPortAirlines.com, toll-free at 888.573.2767.

• Low Fares thanks to low operating costs and efficient aircraft equipment.

• High-frequency, non-stop daily service.

• Customer focused bringing the convenience of a private plane to the average 

traveler for the same cost as commercial airlines.
CURRENT SERVICE

Mesaba is the current air service provider with flights from Watertown to 

Minneapolis. Non-refundable fares are up to $579.00 per segment based on 

availability and time of booking. 

What Watertown and Minneapolis airports 

can expect from SeaPort Airlines:

• Notification of any fare/schedule changes 

• Community involvement through 

advertising/marketing

• A cohesive partnership focused on 

economic development and increased 

load factors

• Affordable fares

• A hassle-free travel experience for your 

community
FARE COMPARISON

Watertown to Las Vegas

• 1 stop

• $69 on SeaPort + $129.70 

on Sun Country Airlines

• $198.70 total 

Watertown to Las Vegas

• 1 stop

• Delta

• $405 total
FARE COMPARISON

Watertown to Los Angeles

• 1 stop

• $69 on SeaPort + $109.70 on 

Sun Country Airlines

• $178.70 total 

Watertown to Los Angeles

• 1 stop

• Delta

• $430 total
FARE COMPARISON

Watertown to Orlando 

• 1 stop

• $69 on SeaPort 

+ $85.70 on Sun Country

Airlines

• $158.70 total 

Watertown to Orlando

• 1 stop

• Delta

• $284 total
EAS TESTIMONIAL

Pendleton Regional Airport

Larry Dalrymple – Airport Manager :

“Eastern Oregon Regional Airport at Pendleton had been struggling since schedule changes 

following 9/11 served by a carrier flying 37 seat aircraft. Low passenger count attributed to

poor schedule, which then contributed to poorer passenger count. The carrier's solution was

to bring in larger aircraft and fly to a different hub. The Airport and community balked at this 

suggestion and went in search of alternatives. The solution found through the EAS process

was SeaPort Air flying a 9 passenger Pilatus, that would eliminate the need for TSA security as

well as mandatory ARFF standby, saving the Airport personnel costs in an already short 

budget. The passengers have welcomed the new service, much better schedule, and are

elated with "no security check" and stand by time. Passengers today will say, "I love the

service", "great customer service", and "I'm sure glad I finally tried it, cause I'll be back".

In our particular market, the 9 passenger aircraft is perfect, and SeaPort Air provides the 

schedule, the professionalism, and customer service we need and desire.”
CUSTOMER FEEDBACK

Ruth Ann Smith – Hot Springs to Memphis:

“Two hours before the flight I booked my ticket to Memphis from Hot Springs. Wow! What a 

surprise; it was simple, convenient, great price, and impeccable service. It far exceeded my 

expectations and I will be flying to Memphis on SeaPort Airlines instead of driving from now on. 

The customer service was fabulous!”

Catherine Martin – Memphis to Harrison:

“I have never had such a positive experience connected with any airline. I read about Seaport 

Air last October when they opened the Mid-South Route, but didn’t have the chance to fly until 

March. Usually the dread of the process comes then you just grin and bear it; however, with 

SeaPort Air I could arrive 15 minutes early. The hassle free no TSA is wonderful and made me 

feel special. I have flown twice in the last 2 months and the customer service from start to finish 

is outstanding. I will be a regular customer and have already recommended the airline to several 

associates. Thank you, SeaPort Air, for making me feel like a queen!”

Barbara Covell – Portland to Newport:

“This is a class operation, very professional and the staff provide the kind of customer service 

that most people can only dream about. I have flown several times in order to avoid the LONG 

car trip from the Oregon central coast to Portland airport. Today my husband had to get to the 

emergency room at Portland VA Medical Center. The staff and crew actually held the flight in 

Newport while we made haste to get there. If that wasn't enough, they had a taxi waiting when 

he arrived at Portland airport. Many, many thanks!”
COMMUNITY INVOLVEMENT
RECENT NEWS

For a list of SeaPort news articles visit http://www.SeaPortAir.com/press

SeaPort Airlines drives to aid stranded passengers (click here)

The East Oregonian: 12/29/2010 

“They didn’t want their passengers to miss Christmas,” said Larry Dalrymple, Pendleton airport

manager. “What other airline would do that?”

SeaPort business continues to climb higher (click here) 

East Oregonian:11/ 07/2010 

The number of passengers flying SeaPort Airlines from Pendleton continues its gentle climb.

Seaport Airlines puts passenger first (click here) 

The Salina Journal: 05/25/2010 

“Now that is great customer service," Melissa McCoy, Salina Airport Authority spokeswoman, wrote

in an e-mail to the Journal. 

Trip with SeaPort a pleasant experience (click here) 

The El Dorado News-Times: 03/10/2010

Hit the Sky Running: Interview with SeaPort Airlines (click here) 

Aviation Buzz: 02/24/2010

Whether you fly SeaPort in the Northwest of the Mid-South, the brand is consistent.
OTHER NEWS

SeaPort offers flexibility to fit Salina

Wednesday, March 9th, 2011

The Salina Post

SeaPort Airlines has a long reputation of departing early if all passengers are accounted for and ready to go, 

but when a group of local officials booked the 7:30 a.m. flight and left three hours early this morning, they may

have set a new record. The flight was booked weeks ago and completely filled with Salina representatives whose final 

destination is Washington, D.C.

“Salina community leaders will meet with our congressional delegation and share with them those federal 

policy issues and initiatives most important to Salina’s future,” explained City Manager Jason Gage. “It also 

provides an opportunity to learn more about the federal legislative process and to build important 

relationships which have a long-lasting, positive impact on our community.”

A week before the flight, SeaPort officials checked the passenger list and let the group know if they wanted to 

leave earlier it wouldn’t be a problem.

“Had we had additional passengers on the 7:30 flight we’d have had to figure something else out,” explain 

SeaPort Operations Manager Cullen Krause. “One of the benefits of SeaPort is that we have the ability to be 

flexible and work with the community on short notice to 

accommodate Salina’s air travel needs.”SeaPort Airlines’ convenience and flexibility not only saved the group 

money, but allotted them an extra day in Washington instead of travel.

Flying on SeaPort to Kansas City and then hopping a flight with a different airline to Washington, the group 

saved themselves a three-hour car ride in each direction, parking fees and a whole lot of headaches.

SeaPort added a plane to the regular flight schedule to accommodate the group as well as other passengers for 

their return to Salina.

“We are fortunate to have SeaPort as our travel option,” said Gage. “Their aircraft is comfortable and their 

convenient arrival and departure schedules are not only affordable, but match up well with the frequent flyer’s 

travel needs. SeaPort is truly an asset for Salina.”
SeaPort welcomes this opportunity to be chosen to provide essential 

air service at Watertown, South Dakota for the next two year period. We 

bring a fresh approach, and believe we have presented a proposal that 

will meet the EAS needs of the communities at reasonable subsidy 

levels. Thank you for your consideration. 

Respectfully submitted, 

Rob McKinney

President

SeaPort Airlines

7505 NE Airport Way

Portland, OR 97218

(971) 340-1711 www.SeaPortAirlines.com
SeaPort Airlines

Essential Air Service Proposal

Docket OST-2001-10644

Annual Subsidy Requirement

August, 2011 - July, 2012

Exhibit 1A

Watertown

Factor ATY-MSP

Revenue:

 Passenger:

 Forecasted Passengers 13,000

 Average Revenue / Pax:

Year 1 $ 69.00

 Revenue / Pax Change 0.00%

 Average Revenue / Pax $ 69.00

 Passenger Revenue $ 897,000

 Other Revenue:

 Ratio to Passenger Revenue 1.00%

 Other Revenue $ 8,970

 Total Revenue $ 905,970

Operating Expenses

 Completed Block Hours 2,463.84

 Direct

 Flight Crews $ 72.00 177,396

 Fuel

 Gallons / Block Hour 52

 Into Plane Cost / Gallon $ 6.25

 Fuel Cost / Block Hour $ 325.00 800,748

 Insurance $ 50.00 123,192

 Maintenance $ 211.20 520,363

 Aircraft Lease $ 200.00 492,768

 Total Direct $ 2,114,467

 Indirect Expense 28.00% 592,051

 Total Operating Exp $ 2,706,518

Return 5.00% 135,326

Total Economic Cost $ 2,841,844

Surplus / (Deficit) $ (1,935,874)

Annual Subsidy $ 1,935,874

Completed Departures 2,832
SeaPort Airlines

Essential Air Service Proposal

Docket OST-2001-10644

Annual Subsidy Requirement

August, 2012 - July, 2013

Exhibit 1B

Watertown

Factor ATY-MSP

Revenue:

 Passenger

 Forecasted Passengers 13,000

 Average Revenue / Pax

 Year 2 $ 69.00

 Revenue / Pax Change 0.00%

 Average Revenue / Pax $ 69.00

 Passenger Revenue $ 897,000

 Other Revenue:

 Ratio to Passenger Revenue 1.00%

 Other Revenue $ 8,970

 Total Revenue $ 905,970

Operating Expenses

 Completed Block Hours 2,463.84

 Direct

 Flight Crews $ 75.60 186,266

 Fuel

 Gallons / Block Hour 52

 Into Plane Cost / Gallon $ 6.56

 Fuel Cost / Block Hour $ 341.25 840,785

 Insurance $ 50.00 123,192

 Maintenance $ 211.20 520,363

 Aircraft Lease $ 200.00 492,768

 Total Direct $ 2,163,374

 Indirect Expense 28.00% 605,745

 Total Operating Exp $ 2,769,119

Return 5.00% 138,456

Total Economic Cost $ 2,907,575

Surplus / (Deficit) $ (2,001,605)

Annual Subsidy $ 2,001,605

Completed Departures 2,832

Subsidy Per Departure $ 706.78
SeaPort Airlines

Essential Air Service Proposal

Docket OST-2001-10644

Proposed Departure Schedules

August, 2011 - July, 2013

Exhibit 2

Sched Sched Sched Comp

Sched Block Sched Block Block Sched Comp Block

City Block Sched Hours / Freq / Hours / Hours / Seg / Comp Seg / Hours /

Community Pair Time Seg Seg Week Week Year Year Factor Year Year

ATY ATY 0600

MSP 0652 1 0.87 7 6.09 316.68 364 97.50% 354 307.98

MSP 0715

ATY 0807 1 0.87 7 6.09 316.68 364 97.50% 354 307.98

ATY 0900

MSP 0952 1 0.87 7 6.09 316.68 364 97.50% 354 307.98

MSP 1015

ATY 1107 1 0.87 7 6.09 316.68 364 97.50% 354 307.98

ATY 1330

MSP 1422 1 0.87 7 6.09 316.68 364 97.50% 354 307.98

MSP 1500

ATY 1552 1 0.87 7 6.09 316.68 364 97.50% 354 307.98

ATY 1700

MSP 1752 1 0.87 7 6.09 316.68 364 97.50% 354 307.98

MSP 1800

ATY 1852 1 0.87 7 6.09 316.68 364 97.50% 354 307.98

 8 6.96 7 48.72 2,533.44 2,912 97.50% 2,832 2,463.84
SeaPort Airlines

Essential Air Service Proposal

Docket OST-2001-10644

Performance Summary

August, 2011 - July, 2012

Exhibit 3A

Watertown

ATY-MSP

Performance:

Rev Block Hours

 Scheduled 2,533.44

 Completion % 97.50%

 Completed Block Hours 2,463.84

Rev Departures

 Scheduled 2,912

 Completion % 97.50%

 Completed Departures 2,832

Rev Passengers

 Year 1 13,000

 Forecasted Growth Rate 0.00%

 Total Passengers

 Average Segment Share 100.00%

 Segment Passengers 13,000

 Available Seats 25,488

 Average Load Factor 51.00%

 Average Pax / Flight 4.6
SeaPort Airlines

Essential Air Service Proposal

Docket OST-2001-10644

Performance Summary

August, 2012 - July, 2013

Exhibit 3B

Watertown

ATY-MSP

Performance:

Rev Block Hours

 Scheduled 2,533.44

 Completion % 97.50%

 Completed Block Hours 2,463.84

Rev Departures

 Scheduled 2,912

 Completion % 97.50%

 Completed Departures 2,832

Rev Passengers

 Year 2 13,000

 Forecasted Growth Rate 0.00%

 Total Passengers

 Average Segment Share 100.00%

 Segment Passengers 13,000

 Available Seats 25,488

 Average Load Factor 51.00%

 Average Pax / Flight 4.6