mofjr'-j^cmm 

BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Essential Air Service at 

ALTOONA, PENNSYLVANIA 

JOHNSTOWN, PENNSYLVANIA 

Under 49 U.S.C. §41731 et seq. 

OST-2002-11446 

OST-2002-11451 

GULFSTREAM INTERNATIONAL AIRLINES PROPOSAL 

TO PROVIDE SUBSIDIZED AIR SERICE AT 

ALTOONA AND JOHNSTOWN. PENNSYLVANIA 

Correspondence with regard to this document should be addressed to: 

Mickey Bowman 

Vice President of Corporate Development 

Gulfstream International Airlines 

3201 Griffin Road, 4* Floor 

Ft. Lauderdale, FL 33312 

Telephone: 270-689-2180 

Fax: 270-689-2180 

E-Mail: mbowman@gulfstreamair.com 

Gulfstream International Airlines ("Gulfstream") cordially submits its proposal to provide subsidized air 

service to Altoona and Johnstown, Pennsylvania. Gulfstream would like to offer several service options for 

both of these communities 

In the first service option, Gulfstream would propose to operate flights under its existing codeshare 

agreement with Continental Airlines to its established hub in Cleveland, Ohio. Gulfstream believes that the 

strength of the Continental hub at Cleveland Hopkins International Airport will have a positive effect on 

ridership. For the summer schedule Continental will have roughly 196 departures from CLE to some 66 

destinations. Other carriers boost the overall Cleveland activity to roughly 283 daily departures, Since 

establishing our CLE feeder operation in September of 2008, Gulfstream has achieved a 98% controllable 

completion factor with an arrival: 14 rate of nearly 90%. We are pleased to offer a combined service 

option involving four roundtrips each service day to Cleveland to be operated in a "round robin" fashion 

such as Cleveland-Altoona-Johnstown-Cleveland, or vice versa. 

The second set of service options we put forth would involve operations from both Altoona and Johnstown 

to Pittsburgh, PA. These options are part of the "Pittsburgh Connector" initiative that Gulfstream has been 

working to develop with the State of Pennsylvania, The Greater Pittsburgh International Airport and the 

Pennsylvania Air Service Committee. Pittsburgh remains the economic hub of western Permsylvania and 

area residents have been supportive of this concept. Under this scenario, flights to and from PIT would be 

operated under the Gulfstream's independent identity. Interline traffic would be accommodated with 

interline baggage and ticketing agreements, including e-ticketing agreements, and direct access into the 

various Global Distribution Systems. Potential codeshare agreements are not ruled out for these scenarios. 
but likely not be in place for the launch of service. Pittsburgh remains a very viable connecting hub with 

non-stop service to some 36 destinations on roughly 160+ departures per day. Pittsburgh has become a 

haven for low cost carriers and consequently Altoona and Johnstown passengers could benefit by taking 

advantage of these lower rates. We are pleased to offer an option involving three non-stop roundtrips each 

service day to each of the cities from Pittsburgh. We also offer a second, combined service option 

involving four roundtrips each service day to Pittsburgh to be operated in a "round robin" fashion such as 

Pittsburgh-Altoona-Johnstown-Pittsburgh, or vice versa. 

In compliance with Public Law 100-223, Gulfstream proposes to operate these flights using Beech 1900D 

turboprops that are pressurized and accommodate 19 passengers to the, FAA defined, medium-sized hubs 

at Cleveland, OH or Pittsburgh, PA. 
Service Option 1 

48 Weekly Frequencies between Johnstown/Altoona and Cleveland, Ohio 

Gulfstream proposes to operate these flights under our Continental Connection codeshare relationship with 

Continental Airlines. The timing of these flights would be optimized for connections to and from 

Continental flights at Cleveland. Gulfstream proposes to encourage connecting traffic by using a simplified 

"add on" fee structure whereby passengers connecting to or from CO flights would pay only an incremental 

$75 one way for the Gulfstream segment. This service constitutes four weekday roundtrips operating on a 

CLE-AOO-JST-CLE or CLE-JST-AOO-CLE routing. The schedule, as we currently envision it, would 

provide Altoona with two outbound non-stop flights along with two one-stop outbound departures each 

weekday. Weekday inbound service would consist of one non-stop and three one-stop flights. Johnstown 

would receive two non-stop outbound departures along with a two one-stop departure. Weekday inbound 

service would consist of three non-stop and one one-stop flights. Weekend service for each community 

would consist of one non-stop and one one-stop flight in each direction on both Saturday and Sunday. 

Service Option 1 

Gulfstream Airlines 

Sample Flight Schedule 

FROM TO DEP ARR FLT EQUIP FREQUENCY 

STA STA TIME TIME NUM 

STOP 

AOO CLE 600am 750am 9290 BEl 

AOO CLE 1030am 1150am 9291 BEl 

AOO CLE 145pm 335pm 9292 BEl 

AOO CLE 640pm 800pm 9293 BEl 

Monday thru Saturday 1 

Monday thru Saturday 0 

Sunday thru Friday 1 

Sunday thru Friday 0 

FROM TO 

STA STA 

DEP ARR FLT 

TIME TIME NUM 

EQUIP FREQUENCY STOP 

CLE AOO 835am 1020am 9291 BEl 

CLE AOO 1220pm 135pm 9292 BEl 

CLE AOO 445pm 630pm 9293 BEl 

CLE AOO 850pm 1035pm 9294 BEl 

Monday thru Saturday 1 

Monday thru Saturday 0 

Sunday thru Friday 1 

Sunday thru Friday 1 

FROM 

STA 

JST 

JST 

JST 

JST 

TO 

STA 

CLE 

CLE 

CLE 

CLE 

DEP ARR FLT 

TIME TIME NUM 

635am 750am 9290 

955am 1150am 9291 

220pm 335pm 9292 

605pm 800pm 9293 

EQUIP FREQUENCY STOP 

BEl Monday thru Saturday 0 

BEl Monday thru Saturday 1 

BEl Sunday thru Friday 0 

BEl Sunday thru Friday 1 

FROM TO DEP ARR FLT EQUIP FREQUENCY 

STA STA TIME TIME NUM 

STOP 

CLE JST 835am 945am 9291 BEl 

CLE JST 1220pm 210pm 9292 BEl 

CLE JST 445pm 555pm 9293 BEl 

CLE JST 850pm 1000pm 9294 BEl 

Monday thru Saturday 0 

Monday thru Saturday 1 

Sunday thru Friday 0 

Sunday thru Friday 0 

(Note: This Schedule is for illustrative purposes and may not reflect the final published product) 
GULFSTREAM INTERNATIONAL AIRLINES 

Essential Air Service Proposal 

Altoona & Johnstown, PA Combined 

4 Roundtrip Cleveland, OH Service 

Service Option 1 Grand Total 

Hub Sei'ved 

Number of Roundtrips per Service Day 

Altoona Johnstown Altoona 

Cleveland Cleveland Johnstown 

Altoona/Johnstown 

Cleveland 

4 

Operating Statistics 

Assumed Completion" 

Annual Adjusted Block Hours 

Annual Adjusted Departures 

Aimual Adjusted ASMs 

Annual RPMs 

Projected Load Factor 

Revenue Projections 

Enplaned Passengers 

(Average as 

Mileage Operated) 

Average Fare 

Passenger Revenue 

Expense Projections 

Flight Operations 

Ownership 

Maintenance 

Reservations, Stations & Administration 

Fuel 

Marketing 

Total Annual Expenses 

Projected Profit / (I^ss) 

Profit Element @ 5% 

Annual Subsidy Requii^:" " 

Subsidy per Departure 

Subsidy per Passenger 

1085.88 

868.70238 

3,301,069 

1,519,658 

46.0% 

9,614 

200 

$ 69.38 

$ 666,971 

$126,754 

$92,561 

$428,069 

$613,495 

$437,066 

$5,000 

$1,702,945 

($1,035,974) 

$85,147 

$i;i2i,i2i -T 

$1,290.57 

$116.61 

1848.12 

1584.10434 

5,267,147 

2,424,749 

46.0% 

11,840 

175 

$ 69.38 

$ 821,400 

$215,730 

$157,536 

$715,546 

$861,540 

$743,869 

$5,000 

$2,699,221 

($1,877,821) 

$134,961 

-$^'0^2,^82' '. 

$1,270.61 

$170.00 

660.04 

1584.10434 

812,646 

280,864 

34.6% 

0 

27 

$ 69.38 

$ 

$77,046 

$56,263 

$195,149 

$111,170 

$265,667 

$0 

$705,296 

($705,296) 

$35,265 

^ pkif^m-'l 

$467.49 

#DIV/0! 

3,594.04 

4,036.91 

9,380,861.50 

4,225,271.42 

45.0% 

21,454.00 

122 

$69.38 

$1,488,371 

$419,530 

$306,360 

$1,338,764 

$1,586,205 

$1,446,602 

$10,000 

$5,107,462 

-$3,619,091 

$255,373 

yHfW'M^ii-'- . 'w 

$959.76 

$180.59 
Service Option 2 

36 Weekly frequencies between Altoona, Pennsylvania and Pittsburgh, Pennsylvania. 

Gulfstream proposes to operate these flights under an independent marketing identity. The timing of these 

flights would be optimized for connections to and from other airline flights at Pittsburgh. Gulfstream 

proposes to encourage connecting traffic by using a greatly simplified fee structure whereby passengers 

connecting to or from other flights would pay only an incremental $50 one way for the Gulfstream 

segment. The basic service pattern would consist of three roundtrips each weekday with a single roundtrip 

on Saturday and two roundtrips on Sunday. 

Gulfstream Airlines 

Sample Flight Schedule 

Service Option 2 

FROM 

STA 

AOO 

AOO 

AOO 

FROM 

STA 

PIT 

PIT 

PIT 

TO 

STA 

PIT 

PIT 

PIT 

TO 

STA 

AOO 

AOO 

AOO 

DEP ARR FLT 

TIME TIME NUM 

555am 645am 9290 

1120am 1210pm 9291 

445pm 535pm 9292 

DEP ARR FLT 

TIME TIME NUM 

1015am 1105am9293 

340pm 430pm 9294 

905pm 955pm 9295 

EQUIP FREQUENCY STOP 

BEl Monday thru Saturday 0 

BEl Sunday thru Friday 0 

BEl Sunday thru Friday 0 

EQUIP FREQUENCY STOP 

BEl Monday thru Friday 0 

BEl Sunday thru Friday 0 

BEl Sunday thru Friday 0 

(Note: This Schedule is for illustrative purposes and may not reflect the final published product) 
GULFSTREAM INTERNATIONAL AIRLINES 

Essential Air Service Proposal 

Altoona, PA - Pittsburgh, PA 

Three Non-stop Roundtrips 

Hub Served 

Number of Roundtrips per Service Day 

Ooeratine Statistics 

Assumed Completion % 

Annual Adjusted Block Hours 

Annual Adjusted Departures 

Armual Adjusted ASMs 

Annual RPMs 

Projected Lx)ad Factor 

Revenue Proiections 

Enplaned Passengers 

(Average as 

Mileage Operated) 

Average Fare 

Passenger Revenue 

Expense Proiections 

Flight Operations 

Ownership 

Maintenance 

Reservations, Stations & Administration 

Fuel 

Marketing 

Total Annual Expenses 

Projected Profit / (Loss) 

Profit Element @ 5% 

Annual Subsi<rj^Requlir«l ' 

Subsidy per Departure 

Subsidy per Passenger 

Option 2 

Altoona 

Pittsburgh 

3 

98% 

1533.00 

1,840 

3,565,155 

1,111,321 

31.2% 

10,895 

102 

$ 46.25 

$ 503,908 

$180,156 

$153,180 

$553,146 

$860,842 

$617,034 

$5,000 

$2,369,357 

($1,865,450) 

$118,468 

.'$i>4.i^i 8 : 

$1,078.45 

$182.09 
Service Option 3 

36 Weekly frequencies between Johnstown, Pennsylvania and Pittsburgh, Pennsylvania. 

Gulfstream proposes to operate these flights under an independent marketing identity. The timing of these 

flights would be optimized for connections to and from other airline flights at Pittsburgh. Gulfstream 

proposes to encourage connecting traffic by using a greatly simplified fee structure whereby passengers 

connecting to or from other flights would pay only an incremental $50 one wav for the Gulfstream 

segment. The basic service pattern would consist of three roundtrips each weekday with a single roundtrip 

on Saturday and two roundtrips on Sunday. 

Service Option 

FROM TO 

STA STA 

JST PIT 

JST PIT 

JST PIT 

FROM TO 

STA STA 

PIT JST 

PIT JST 

PIT JST 

3 

DEP ARR FLT 

TIME TIME NUM 

600am 645am 9290 

1115am 1200pm 9291 

430pm 515pm 9292 

DEP ARR FLT 

TIME TIME NUM 

1015am 1100am 9293 

330pm 415pm 9294 

845pm 930pm 9295 

EQl 

BEl 

BEl 

BEl 

EQl 

BEl 

BEl 

BEl 

Gulfstream Airlines 

Sample Flight Schedule 

EQUIP FREQUENCY STOP 

Monday thru Saturday 0 

Sunday thru Friday 0 

Sunday thru Friday 0 

EQUIP FREQUENCY STOP 

Monday thru Friday 0 

Sunday thru Friday 0 

Sunday thru Friday 0 
GULFSTREAM INTERNATIONAL AIRLINES 

Essential Air Service Proposal 

Johnstown, PA - Pittsburgh 

Three Non-stop Roundtrips 

Option 3 

Hub Served 

Number of Roundtrips per Service Day 

Johnstown 

Pittsburgh 

3 

Operating Statistics 

Assumed Completion % 

Armual Adjusted Block Hours 

Aimual Adjusted Departures 

Aimual Adjusted ASMs 

Aimual RPMs 

Projected Ijjad Factor 

1379.70 

1,840 

2,621,437 

1,006,358 

38.4% 

Revenue Proiections 

Enplaned Passengers 

Mileage 

Average Faie 

(Average as 

Operated) 

13,418 

75 

46.25 

Passenger Revenue $ 620,587 

Expense Proiections 

Flight Operations 

Ownership 

Maintenance 

Reservations, Stations & Administration 

Fuel 

Marketing 

$162,140 

$153,180 

$474,125 

$907,908 

$555,331 

$5,000 

Total Annual Expenses $2,257,684 

Projected Profit / (Loss) 

Profit Element 

Annual Subsidy Required 

@5% 

($1,637,097) 

$112,884 

Subsidy per Departure 

Subsidy per Passenger 

$951.28 

$130.42 
Service Option 4 

48 Weekly Frequencies between Johnstown/Altoona and Pittsburgh, Pennsylvania 

Gulfstream proposes to operate these flights under an independent marketing identity. The timing of these 

flights would be optimized for connections to and from other airline flights at Pittsburgh. Gulfstream 

proposes to encourage connecting traffic by using a greatly simplified fee structure whereby passengers 

connecting to or from other flights would pay only an incremental $50 one wav for the Gulfstream 

segment. This service constitutes four weekday roundtrips operating on a PIT-AOO-JST-PIT or PIT-JSTAOO-PIT routing. The schedule, as we currently envision it, would provide Altoona with one outbound 

non-stop flight along with three one-stop outbound departures each weekday. Weekday inbound service 

would consist of two non-stop and two one-stop flights. Johnstown would receive three non-stop outbound 

departures along with a single one-stop departure. Weekday inbound service would consist of two nonstop and two one-stop flights. Weekend service for each community would consist of one non-stop and 

one one-stop flight in each direction on both Saturday and Sunday. 

Service Option 4 

FROM TO DEP ARR 

STA STA TIME TIME 

Gulfstream Airlines 

Sample Flight Schedule 

FLT 

NUM 

EQUIP FREQUENCY STOP 

AOO PIT 600am 720am 9290 BEl 

AOO PIT 1000am 1050am 9291 BEl 

AOO PIT 100pm 220pm 9292 BEl 

AOO PIT 530pm 620pm 9293 BEl 

Monday thru Saturday 1 

Monday thru Saturday 0 

Sunday thru Friday 1 

Sunday thru Friday 0 

FROM TO 

STA STA 

DEP ARR FLT 

TIME TIME NUM 

EQUIP FREQUENCY STOP 

PIT AOO 830am 950am 9291 BEl 

PIT AOO 1200pm 1250pm 9292 BEl 

PIT AOO 400pm 520pm 9293 BEl 

PIT AOO 840pm 1000pm 9294 BEl 

Monday thru Saturday 1 

Monday thru Saturday 0 

Sunday thru Friday 1 

Sunday thru Friday 1 

FROM TO 

STA STA 

DEP 

TIME 

ARR 

TIME 

FLT 

NUM 

EQUIP FREQUENCY STOP 

JST PIT 635am 720am 9290 BEl 

JST PIT 935am 1050am 9291 BEl 

JST PIT 135pm 220pm 9292 BEl 

JST PIT 455pm 620pm 9293 BEl 

Monday thru Saturday 0 

Monday thru Saturday 1 

Sunday thru Friday 0 

Sunday thru Friday 1 

FROM TO 

STA STA 

DEP ARR FLT 

TIME TIME NUM 

EQUIP FREQUENCY STOP 

PIT JST 830am 915am 9291 BEl 

PIT JST 1200pm 125pm 9292 BEl 

PIT JST 400pm 445pm 9293 BEl 

PIT JST 840pm 925pm 9294 BEl 

Monday thru Saturday 0 

Monday thru Saturday 1 

Sunday thru Friday 0 

Sunday thru Friday 0 

(Note: This Schedule is for illustrative purposes and may not reflect the final published product) 
GULFSTREAM INTERNATIONAL AIRLINES 

Essential Air Service Proposal 

Johnstown & Altoona, PA Combined 

4 Roundtrip Pittsburgh, PA Service 

Service Option 4 Grand Total 

Hub Served 

Number of Roundtrips per Service Day 

Altoona 

Pittsburgh 

Johnstown 

Pittsburgh 

Altoona 

Johnstown 

Altoona/Johnstown 

Pittsburgh 

4 

Operating Statistics 

Assumed Completion % 

Annual Adjusted Block Hours 

Annual Adjusted Departures 

Annual Adjusted ASMs 

Annual RPMs 

Projected Load Factor 

723.92 

869 

1,683,545 

775,026 

46.0% 

1,188.08 

1,584 

2,257,349 

1,039,178 

46.0% 

660.04 

1,584 

812,646 

280,864 

34.6% 

. 2,572.04 

4,036.91 

4,753,539.42 

2,095,068.00 

44.1% 

Revenue Proiections 

Enplaned Passengers 

Mileage 

Average Fare 

(Average as 

Operated) 

9,614 

102 

$46.25 

11,840 

75 

$46.25 

0 

27 

$46.25 

21,454.00 

62 

$46.25 

Passenger Revenue $ 444,648 $547,600 $0 $992,248 

Expense Proiections 

Flight Operations 

Ownership 

Maintenance 

Reservations, Stations & Administration 

Fuel 

Marketing 

$85,389 

$86,227 

$273,848 

$588,412 

$291,377 

$5,000 

$1,330,253 

($885,606) 

$66,513 

-»1W 

$1,096.02 

$99.03 

$140,138 

$141,514 

$416,062 

$819,214 

$478,201 

$5,000 

$2,000,129 

($1,452,529) 

$100,006 

"•'r$i0$isS6i--

$980.07 

$131.13 

$77,854 

$78,619 

$225,498 

$113,846 

$265,667 

$0 

$761,484 

($761,484) 

$38,074 

$799,558' 

$504.74 

#DrV/0! 

$303,381 

$306,360 

$915,408 

$1,521,471 

$1,035,246 

$10,000 

Total Annual Expenses 

Projected Profit / (Loss) 

Profit Element @ 5% 

Ahnual SubSidj'Kequireil', 

Subsidy per Departure 

Subsidy per Passenger 

$4,091,867 

-$3,099,619 

$204,593 

$818.50 

$154.01 
In conclusion, Gulfstream believes that these proposals will provide the communities of Altoona and 

Johnstown, Pennsylvania with superior air service. We feel the communities will benefit from the strength 

of the Continental codeshare in our Cleveland option or from the low fares of our Pittsburgh options. Most 

importantly we feel both cities will benefit from the integrity of service that has been a hallmark of the 

Gulfstream operation and our willingness to work with these communities to meet their air travel needs. 

Respectfully Submitted: March 24, 2010 

Mickey Bowman 

Vice President of Corporate Development 

Gulfstream International Airlines