# Sovereig nMr , Inc
.

Jun e 16 , 201 0 Denni s J
. DeVany , Chie f EA S & Domesti cAnalysi s Division , X-5 3 Offic e o fAviatio n Analysi s Departmen to fTransportatio n 120 0 Hev j Jerse yAve
. SE Washington , D C 2059 0 Re : Proposa l t o Provid e Essentia l Ai rServic e at : ATHENS , GEORGIA , DOT-OST-2002-1134 8 MACON , GEORGIA , DOT-OST-2007-2867 1

Dea rMr
. DeVany : I n respons e t o Orde r2010-5-33 , Sovereig n Air , Inc
. offer s th e followin g proposal : Sovereig n Air , Inc
. (SAI ) i s plannin g t o us e a on e 9-sea t Kin g Ai raircraf t an d ad d a secon d a s th e Maco n passenge rloa d increase s ,fo rthes e Essentia l Ai rServic e routes
. Ou rflight s wil l servic e onl yth e EA S citie s an d th e AT LHub
. Sovereig n Ai rbelieve s tha t wit h excellen t baggag e handling , prope rschedules , inexpensiv e pricing , a comfortable-quiet - pressurize d aircraft , an d a recoverin g economy , th e loa d factor s wil l increas e i n thes e markets
. SA I wil l bas e it s aircraft , crew s an d maintenanc e personnel , bankin g an d purchas e fue l fo rth e firs t aircraf t i n Athen s an d th e secon d aircraf ti n Maco n wit h th e increase d passenge rloads
. EasyAi rwil l kee p mos t o fth e EA S monie s i n th e loca l communities
. Additiona l flight s wil l b e adde d a s neede d t o accommodat e period s o fincrease d deman d fo rth e Universit yo fGeorgi a an d Robin s AFB
. SA I wil l hav e baggag e an d ticke tagreement s wit h th e majo rai rcarrier s i n Atlant a b yth e star t o fthi s EA S service
. SA I wil l als o hav e carg o agreement s fo rbot h domesti can d internationa l ai rfreigh t movements
. SA I ha s bee n HAZMA Tapprove d an d wil l b e workin g i n conjunctio n wit h hospital s t o expedit e variou s HAZMA Tmaterial s tha tthe ynee d t o transport
. SAI' s goa l i s t o wor k

hand-in-han d wit h th e communitie s t o reduc e th e nee d fo rEA S subsidie s withi n th e nex tfou rt o si xyears . Sovereig n Ai ri s currentl yi n th e proces s o facquirin g it s Schedule d Servic e Authorit yan d anticipate s bein g abl e t o star t thi s Essentia l Ai rServic e b ySeptembe r1 , 2010
. Sovereig n Ai rwil l b e full yintegrate d int o th e Globa l Distributio n Syste m (GDS ) i n conjunctio n wit h Worldspan
. SA I i s no t tie d t o jus t on e airline , allowin g Sovereig n Ai rbette rvisibilit yi n th e variou s reservatio n systems
. Passenger s wil l hav e a broa d rang e o fchannel s throug h whic h t o purchas e tickets , includin g al l airlin e reservatio n system s an d trave l agencies , Orbitz , Priceline , Expedia , ect:
. Customer s

### wil l b e abl e t o cal l ou rreservatio n offic e o rvisi tou rwebsit e t o boo k flights

. Passenger

s ca n als o purchas e ticket s an d make reservation s atou rticke tcounters
. SAI' s fina l schedule s wil l b e develope d byth e Cit yAirpor tBoard s an d SAI t o reduc e layove rtime s i n ATL an d provid e th e bes tpossibl e arriva l an d departur e time s fo rth e travellin g public
. A s such , th e followin g schedule s wil l likel yb e adjusted : Propose d Schedul e Option s Athen s Schedul e Flt # 1 0 1 1 2 0 2 1 3 0 3 1 Fre q 123456 7 123456 7 2345 6 2345 6 123456 7 123456 7
Maco n Schedul e Flt # 1 0 1 1 3 0 6 Fre q 123456 7 123456 7 123456 7 123456 7 Fro m

AH N MC N AH N AT L AH N MC N

Fro m AT L MC N AT L MC N T O

AT L AT L AT L AH N AT L AT L

T O MC N AT L MC N AT L Dpt-Ar r

6:30-7:0 0 8:30-9:0 0 10:00-10:3 0 12:00-12:3 0 05:00-05:3 0 07:00-07:3 0

Dpt-Ar r 7:30-8:0 0 9:00-9:3 0 06:00-06:3 0 07:00-07:3 0

### Custome rsafetyan d servic e ar e Priorit yOn e wit h SAI

. Sovereig n Ai rlooks forwar d t o providin g

Essentia l Ai rServic e t o bot h Athen s an d Macon
. Sincerely ,
Jo n Payne , CF

O Sovereig n Air , Inc
.

### 9-seat Kin g Ai r

Sovereig n Air , Inc
. Annua l Compensatio n Requiremen tfo rEssentia l Ai rServic e fo r AHN-AT L AircraftTyp e Availabl e Seat s Pe rDepartur e Passengers Pe rTri p 2 1 Roun d trip s Pe rWeek * Two 9-seat s Kin g Ai r 9 4. 2
Bloc k Hours Departure s Tota l Passengers Averag e Fare $4 9 on e wa yAHN-AT L 1,12 6 2,11 8 10,00 0

Revenu e Passenge rMile s Availabl e SeatMile s 670,00 0 1,277,15 4 Passenge rRevenu e Othe rRev
. @

. 6 o fpax . Rev
. % Tota l Revenu e Aircraftan d Hul l Insuranc e Fue l an d Oi l Flyin g Operation s Othe rDirectCost s Maintenanc e Tota l DirectCost s Tota l IndirectCost s Tota l Operatin g Expense s Operatin g Los s Profi t@ 5 %

Completio n Rat e Loa d Facto r Annua l Compensatio n Requiremen t

*Whe n loa d facto ri s u p t o 50 % a fourt h $490,000.0 0 $29,400.0 0 $519,400.0 0 $220,000.0 0 $354,690.0 5 $130,774.8 8 $222,444.5 0 $171,543.5 6 $999,452.9 9 $258,756.0 0 $1,158,208.9 9 $638,808.9 9 $31940.4 5 $670,749.4 4
97 % 47 %

### on e 9-sea t Kin g Ai r Sovereig n Air , Inc
. Annua l Compensatio n Requiremen tfo rEssentia l Ai rServic e fo r MCI - AT L AircraftTyp e Availabl e Seat s Pe rDepartur e Passengers Pe rTri p Bloc k Hours Departure s Tota l Passengers Averag e Fare 1 4 roun d trip s pe rweek * 9-seat Kin g Ai r 9 Avg
. 2. 4 70 6 141 2 350 0 $6 9 on e wayMCI-AT L

Revenu e Passenge rMile s Availabl e SeatMile s Passenge rRevenu e Othe rRev
. @

. 6 o fpax . Rev
. % Tota l Revenu e Aircraftan d Hul l Insuranc e Fue l an d Oi l Flyin g Operation s Othe rDirect Cost s Maintenanc e Tota l DirectCost s Tota l IndirectCost s Tota l Operatin g Expense s Operatin g Los s Profi t@ 5 %

Completio n Rat e Loa d Facto r Annua l Compensatio n Requiremen t

*Whe n loa d facto ri s u p t o 50 % a thir d fligh twil l b e adde d an d secon d aircraft wil l b e added
. 263,50 0 953,10 0 $241,50 0 $14,49 0 $255,99 0 $50,000.0 0 $255,390.8 7 $100,377.9 9 $122,444.5 0 $101,592.5 6 $629,756.9 2 $158,756.0 0 $788,512.9 2 $532,522.9 2 $39,425.6 5 $571,948.5 7
97 % 27 %