# mofjr'-j^cm m BEFOR E TH E DEPARTMENT O F TRANSPORTATIO N WASHINGTON , D.C
.
Essentia l Air

Servic e a t 

## ALTOONA , PENNSYLVANI A JOHNSTOWN , PENNSYLVANI A Unde r 4 9 U.S.C
. §4173 1 et

seq . OST-2002-1144 6 OST-2002-1145 1

GULFSTREA M INTERNATIONAL AIRLINE S PROPOSA L T O PROVID E SUBSIDIZED AI RSERIC E A

T ALTOON A AN D JOHNSTOWN
. PENNSYLVANI A
Correspondenc e wit

h regar dt o thi s documen t shoul db e addresse dto : Micke y Bowma n Vic e Presiden t

o f Corporat e Developmen t GulfstreamInternationa l Airline s 320 1 Griffi n Road , 4 * Floo r Ft
. Lauderdale , F L 3331 2 Telephone : 270-689-218 0 Fax : 270-689-218 0 E-Mail : mbowman@gulfstreamair.co m GulfstreamInternationa l Airline s ("Gulfstream" ) cordiall y submit s it s proposa l to provid e subsidize dai r servic e to Altoon aan dJohnstown , Pennsylvania
. Gulfstrea mwoul dlik e to offe r severa l servic e option s fo r bot h o f thes e communitie s I n th e firs t servic e option , Gulfstreamwoul dpropos e t o operat e flight s unde r it s existin g codeshar e agreemen t

wit h Continenta l Airline s to it s establishe dhu b i n Cleveland , Ohio
. Gulfstreambelieve s tha t th e strengt h o f th e Continenta l hu b a

t Clevelan dHopkin s Internationa l Airport wil l hav e apositiv e effec t o n ridership
. Fo r

th e summe r

schedul e Continenta l wil l hav e roughl y 19 6 departure s fromCL E t o som e 6 6 destinations
. Othe r

carrier s boos t

th e overal l Clevelan dactivity t o roughl y 28 3 dail y departures , Sinc e establishin g ou r

CL E feeder

operatio n in Septembe r

o f 2008 , Gulfstreamha s achieve da98 % controllabl e completio n facto r

wit h a n arrival : 1 4 rat e of

nearl y 90%
. W e ar e please dt o offe r acombine dservic e optio n involvin g fou

r roundtrip s eac h servic e da y t o Clevelan dt o b e operate di n a"roun drobin " fashio n suc h a s Cleveland-Altoona-Johnstown-Cleveland , o r vic e versa . Th e secon dse t

o f servic e option s w e pu t

fort h woul dinvolv e operation s frombot h Altoon aan dJohnstow n to Pittsburgh , PA
. Thes e option s ar e part o f th e "Pittsburg h Connector " initiativ e that Gulfstreamha s bee n workin g t o develo p wit

h th e Stat e o f

Pennsylvania , Th e Greate r Pittsburg h Internationa l Airport an dth e Pennsylvani aAi r

Servic e Committee
. Pittsburg h remain s th e economi c hu b o f western Permsylvani aan d are aresident s hav e bee n supportiv e o f thi s concept . Unde r

thi s scenario , flight s to an dfromPI T woul db e operate dunde r

th e Gulfstream' s independen t identity
. Interlin e traffi c woul db e accommodate dwit h interlin e baggag e an dticketin g agreements , includin g e-ticketin g agreements , an ddirec t acces s int o th e variou s Globa l Distributio n Systems
. Potentia l codeshar e agreement s ar e no t rule dou t fo r thes e scenarios
.but likel y no t

b e in plac e fo

r th e launc h o f

service
. Pittsburg h remain s aver y viabl e connectin g hu b wit h non-sto p servic e t o som e 3 6 destination s o n roughl y 160 + departure s pe r day
. Pittsburg h ha s becom e a have n fo r lo w cos t carrier s an dconsequentl y Altoon aan dJohnstow n passenger s coul dbenefi t b y takin g advantag e o f

thes e lowe r

rates . W e ar e please dt o offe r an optio n involvin g thre e non-sto p roundtrip s eac h servic e day t o eac h o f

th e citie s fro mPittsburgh
. W e als o offe r asecond , combine dservic e optio n involvin g fou

r roundtrip s eac h servic e day t o Pittsburg h t o b e operate din a"roun drobin " fashio n suc h a s Pittsburgh-Altoona-Johnstown-Pittsburgh , o r vic e versa . I n complianc e wit

h Publi c La w 100-223 , Gulfstreampropose s t o operat e thes e flight s usin g Beec h 1900 D turboprop s tha

t ar e pressurize dan daccommodat e 1 9 passenger s to the , FA A defined , medium-size dhub s a t Cleveland , O H o r

Pittsburgh , PA
.Servic e Optio n 1

4 8 Weekl y Frequencie s betwee n Johnstown/Altoon aan dCleveland , Ohi o Gulfstreampropose s t o operat e thes e flight s unde r ou r Continenta l Connectio n codeshar e relationshi p wit h Continenta l Airlines
. Th e timin g o f thes e flight s woul db e optimize dfo r connection s to an dfrom Continenta l flight s a

t Cleveland
. Gulfstreampropose s to encourag e connectin g traffi c by usin g asimplifie d "ad don " fe e structur e whereb y passenger s connectin g t o o r fro mC O flight s woul dpay onl y an incrementa l $7 5 on e wa

y fo r th e Gulfstreamsegment . Thi s servic e constitute s four weekday roundtrip s operatin g o n a CLE-AOO-JST-CL E o r

CLE-JST-AOO-CL E routing. Th e schedule , a s w e currentl y envision it , woul d provid e Altoon awit

h tw o outboun dnon-sto p flight s alon g wit h tw o one-sto p outboun ddeparture s eac h weekday
. Weekda y inboun dservic e woul dconsis t o f on e non-sto p an dthre e one-sto p flights
. Johnstow n woul dreceiv e tw o non-sto p outboun ddeparture s alon g wit h atw o one-sto p departure
. Weekday inboun d servic e woul dconsis t

o f thre e non-sto p an don e one-sto p flights
. Weeken dservic e fo r eac h community woul dconsis t

o f on e non-sto p an don e one-sto p flight in eac h directio n o n both Saturday an dSunday
.

Servic e Optio n 1 Gulfstrea mAirline s Sampl e Fligh t

Schedul e
FRO M T O DE P AR RFL T EQUI P FREQUENC Y ST A ST A TIM E TIM E NU M STO P
AO O CL E 600a m750a m929 0 BE l AO O CL E 1030a m1150a m929 1 BE l AO O CL E 145p m335p m929 2 BE l AO O CL E 640p m800p m929 3 BE l Monda y thr u Saturda y 1 Monda y thr u Saturda y 0 Sunda y thr u Frida y 1 Sunda y thr u Frida y 0 

### FRO M T O ST AST A DE P AR R FL T TIM E TIM E NU M EQUI P FREQUENC Y STO P
CL E AO O 835a m1020a m929 1 BE l CL E AO O 1220p m135p m929 2 BE l CL E AO O 445p m630p m929 3 BE l CL E AO O 850p m1035p m929 4 BE l Monda y thr u Saturda y 1 Monda y thr u Saturda y 0 Sunda y thr u Frida y 1 Sunda y thr u Frida y 1 FRO M ST A JS T JS T JS T JS T T O ST A CL E CL E CL E CL E DE P AR RFL T TIM E TIM E NU M 635a m750a m929 0 955a m1150a m929 1 220p m335p m929 2 605p m800p m929 3 EQUI P FREQUENC Y STO P
BE l Monda y thr u Saturda y 0 BE l Monda y thr u Saturda y 1 BE l Sunda y thr u Frida y 0 BE l Sunda y thr u Frida y 1 FRO M T O DE P AR RFL T EQUI P FREQUENC Y ST A ST A TIM E TIM E NU M STO P
CL E JS T 835a m945a m929 1 BE l CL E JS T 1220p m210p m929 2 BE l CL E JS T 445p m555p m929 3 BE l CL E JS T 850p m1000p m929 4 BE l Monda y thr u Saturda y 0 Monda y thr u Saturda y 1 Sunda y thr u Frida y 0 Sunda y thr u Frida y 0 (Note : Thi s Schedul e i s for illustrativ e purpose s an dma y no t reflec t th e fina l publishe dproduct )GULFSTREA M INTERNATIONA

L AIRLINE S Essentia l Air Servic e Proposal Altoon a& Johnstown , P A Combine d 4 Roundtri p Cleveland , O H Servic e Servic e Optio n 1 Gran d Total

Hu b Sei've d Numbe r o f Roundtrip s pe

r Service Da

y Altoon aJohnstow n Altoon a

Cleveland Clevelan d Johnstow n Altoona/Johnstow n Cleveland 4 Operatin g Statistic s Assume d Completion " Annual Adjuste dBloc k

Hour s Annua l Adjuste dDeparture s Aimual Adjuste dASM s Annua l RPM s Projecte dLoa dFacto r Revenu e Projection s Enplane dPassenger s (Averag e a s Mileag e Operated ) Averag e Fare Passenge r

Revenu e Expens e Projection s Fligh t Operation s Ownershi p Maintenanc e Reservations , Station s & Administratio n Fue l Marketin g Tota l Annua l Expense s Projecte dProfi t

/ (I^ss )
Profi t Elemen t @ 5 %
Annua l Subsid y Requii^:" "
Subsid y pe r

Departur e Subsid y pe r

Passenge r 1085.8 8 868.7023 8 3,301,06 9 1,519,65 8 46.0 %

9,61 4 20 0 $ 69.3 8 $ 666,97 1
$126,75 4 $92,56 1 $428,06 9 $613,49 5 $437,06 6 $5,00 0 $1,702,94 5 ($1,035,974 ) $85,14 7 $i;i2i,i2 i -

T $1,290.5 7 $116.6 1 1848.1 2

1584.1043 4 5,267,14 7 2,424,74 9 46.0 %

11,84 0 17 5 $ 69.3 8 $ 821,40 0
$215,73 0 $157,53 6 $715,54 6 $861,54 0 $743,86 9 $5,00 0 $2,699,22 1 ($1,877,821 ) $134,96 1 -$^'0^2,^82 ' '
. $1,270.6 1 $170.0 0 660.0 4

1584.1043 4 812,64 6 280,86 4 34.6 %

0 2 7 $ 69.3 8 $
$77,04 6 $56,26 3 $195,14 9 $111,17 0 $265,66 7 $ 0 $705,29 6 ($705,296 ) $35,26 5


### ^ pkif^m-'l $467.4 9 #DIV/0 ! 3,594.0 4 4,036.9 1 9,380,861.5 0 4,225,271.4 2 45.0 %

21,454.0 0 122 $69.3 8 $1,488,37 1
$419,53 0 $306,36 0 $1,338,76 4 $1,586,20 5 $1,446,60 2 $10,00 0 $5,107,46 2 -$3,619,09 1 $255,37 3 

### yHfW'M^ii-'

- . '

w $959.7 6 $180.5 9Servic e Optio n 2

3 6 Weekl y frequencie s betwee n Altoona , Pennsylvani aan dPittsburgh , Pennsylvania
. Gulfstreampropose s t o operat e thes e flight s unde r a n independen t

marketin g identity
. Th e timin g o f thes e flights woul db e optimize dfo r connection s t o an dfro mothe r airlin e flights a

t Pittsburgh
. Gulfstream propose s t

o encourag e connectin g traffi c b y usin g agreatl y simplifie dfe e structur e whereb y passenger s connectin g to o r

fromothe r

flights woul dpay onl y an incrementa l $50 on e wa y fo r th e Gulfstream segment . Th e basi c servic e patter n woul dconsis t o f thre e roundtrip s eac h weekday wit h asingl e roundtri p o n Saturday an dtw o roundtrip s o n Sunday
. Gulfstrea mAirline s Sampl e Fligh t

Schedul e Servic e Optio n 2
FRO M ST A AO O AO O AO O FRO M ST A PI T PI T PI T T O ST A PI T PI T PI T T O ST A AO O AO O AO O DE P AR RFL T TIM E TIM E NU M 555am645am

929 0 1120a m1210pm929 1 445p m535p m929 2 DE P AR RFL T TIM E TIM E NU M 1015a m1105am929 3 340p m430p m929 4 905p m955p m929 5 EQUI P FREQUENC Y STO P
BE l Monda y thr u Saturda y 0 BE l Sunda y thr u Frida y 0 BE l Sunda y thr u Frida y 0 EQUI P FREQUENC Y STO P
BE l Monda y thr u Frida y 0 BE l Sunda y thr u Frida y 0 BE l Sunda y thr u Frida y 0 (Note : Thi s Schedul e i s fo r illustrativ e purpose s an dma y no t reflec t th e final publishe dproduct )GULFSTREA M INTERNATIONA L AIRLINE S Essentia l Ai r

Servic e Proposa l Altoona , P A - Pittsburgh , P A Thre e Non-sto p Roundtrip s

Hu b Serve d Numbe r o f Roundtrip s pe r

Servic e Day Ooeratin e Statistic s Assume dCompletio n % Annua l Adjuste dBloc k

Hour s Annual Adjuste dDeparture s Armua l Adjuste dASM s Annual RPM s Projecte dLx)a

dFacto r Revenu e Proiection s Enplane dPassenger s (Averag e a s Mileag e Operated ) Averag e Far e Passenge r

Revenu e Expens e Proiection s Fligh t Operation s Ownershi p Maintenanc e Reservations , Station s & Administratio n Fue l Marketin g Tota l Annua l Expense s Projecte dProfi t

/ (Loss )
Profi t Elemen t @ 5 %
Annua l Subsi<rj^Requlir« l ' Subsid y pe r

Departur e Subsid y pe r

Passenge r Optio n 2
Altoon a Pittsburg h 3

98 % 1533.0 0 1,840 3,565,15 5 1,111,32 1 31.2 %

10,89 5 10 2 $ 46.2 5 $ 503,90 8
$180,15 6 $153,18 0 $553,14 6 $860,84 2 $617,03 4 $5,00 0 $2,369,35 7 ($1,865,450 ) $118,46 8 .'$i>4.i^i 8 : $1,078.4 5 $182.0 9Servic e Optio n 3

3 6 Weekl y frequencie s betwee n Johnstown , Pennsylvani aan dPittsburgh , Pennsylvania
. Gulfstreampropose s to operat e thes e flights unde r a n independen t

marketin g identity
. Th e timin g o f thes e flights woul db e optimize dfo r connection s to an dfro mothe r airlin e flights at

Pittsburgh
. Gulfstream propose s to encourage connectin g traffi c b y usin g agreatl y simplifie dfe e structur e whereb y passenger s connectin g t o o r

fromothe r

flights woul dpay onl y an incrementa l $50 on e wa v for th e Gulfstream segment . Th e basi c servic e pattern woul dconsis t o f thre e roundtrip s eac h weekda y wit h asingl e roundtri p o n Saturday an dtw o roundtrip s o n Sunday
.

Servic e Optio n
FRO M T O ST A ST A JS T PI T JS T PI T JS T PI T FRO M T O ST A ST A PI T JS T PI T JS T PI T JS T 3
DE P AR RFL T

TIM E TIM E NU M 600a m645a m929 0 1115a m1200p m929 1 430p m515p m929 2 DE P AR RFL T TIM E TIM E NU M 1015a m1100am929 3 330p m415p m929 4 845p m930p m929 5 EQ l
BE l BE l BE l EQ l
BE l BE l BE l Gulfstrea mAirline s Sampl e Fligh t

Schedul e
EQUI P FREQUENC Y STO P
Monda y thr u Saturda y 0 Sunda y thr u Frida y 0 Sunda y thr u Frida y 0 EQUI P FREQUENC Y STO P
Monda y thr u Frida y 0 Sunda y thr u Frida y 0 Sunda y thr u Frida y 0GULFSTREA M INTERNATIONA L AIRLINE S Essentia l Ai r

Servic e Proposa l Johnstown , P A - Pittsburg h Thre e Non-sto p Roundtrip s Optio n 3

Hu b Serve d Numbe r o f Roundtrip s per

Servic e Da

y Johnstow n Pittsburg h 3 Operatin g Statistic s Assume dCompletio n % Armua l Adjuste dBloc k

Hour s Aimual Adjuste dDeparture s Aimual Adjuste dASM s Aimual RPM s Projecte dIjja dFacto r 1379.7 0 1,840 2,621,43 7 1,006,35 8 38.4 %
Revenu e Proiection s EnplanedPassenger s Mileag e Averag e Fai e (Averag e a s Operated ) 13,41 8 7 5 46.2 5 Passenge r

Revenu e $ 620,58 7 Expens e Proiection s Fligh t Operation s Ownershi p Maintenanc e Reservations , Station s & Administratio n Fue l Marketin g $162,14 0 $153,18 0 $474,12 5 $907,90 8 $555,33 1 $5,00 0 Tota l Annua l Expense s $2,257,68 4 Projecte dProfi t

/ (Loss )
Profi t Elemen t Annua l Subsid y Require d @5 % ($1,637,097 ) $112,88 4

Subsid y pe r

Departur e Subsidy pe r

Passenge r $951.2 8 $130.4 2Servic e Optio n 4

4 8 Weekl y Frequencie s betwee n Johnstown/Altoon aan dPittsburgh , Pennsylvani a Gulfstreampropose s t o operat e thes e flights unde r an independen t

marketin g identity
. Th e timin g o f thes e flights woul db e optimize dfo r connection s to an dfro mothe r airlin e flights at

Pittsburgh
. Gulfstream propose s to encourag e connectin g traffi c b y usin g agreatl y simplifie dfe e structur e whereb y passenger s connectin g to o r

fro mothe r

flights woul dpay onl y an incrementa l $50 on e wa v fo r th e Gulfstream segment . Thi s servic e constitute s fou r weekday roundtrip s operatin g o n aPIT-AOO-JST-PI T o r PIT-JST

AOO-PI T routing. Th e schedule , a s w e currentl y envisio n it , woul dprovid e Altoon awit h on e outboun d non-sto p flight

alon g wit

h thre e one-sto p outboun ddeparture s eac h weekday
. Weekda y inboun dservic e woul dconsis t

o f tw o non-sto p an dtw o one-sto p flights. Johnstow n woul dreceiv e thre e non-sto p outboun d departure s alon g wit

h asingl e one-sto p departure
. Weekda y inboun dservic e woul dconsis t o f tw o non sto p an dtw o one-sto p flights. Weeken dservic e fo r eac h community woul dconsis t o f on e non-sto p an d on e one-sto p flight

in eac h directio n o n bot

h Saturday an dSunday
.

Servic e Optio n 4 FRO M T O DE P AR R ST A ST A TIM E TIM E Gulfstrea mAirline s Sampl e Fligh t

Schedul e FL T NU M EQUI P FREQUENC Y STO P
AO O PI T 600a m720a m929 0 BE l AO O PI T 1000a m1050a m929 1 BE l AO O PI T 100p m220p m929 2 BE l AO O PI T 530p m620p m929 3 BE l Monda y thr u Saturda y 1 Monda y thr u Saturda y 0 Sunda y thr u Frida y 1 Sunda y thr u Frida y 0 FRO M T O ST A ST A DE P AR RFL T

TIM E TIM E NU M EQUI P FREQUENC Y STO P
PI T AO O 830a m950a m929 1 BE l PI T AO O 1200p m1250p m929 2 BE l PI T AO O 400p m520p m929 3 BE l PI T AO O 840p m1000p m929 4 BE l Monda y thr u Saturda y 1 Monda y thr u Saturda y 0 Sunda y thr u Frida y 1 Sunda y thr u Frida y 1 

### FRO M T O ST AST A DE P TIM E AR R TIM E FL T NU M EQUI P FREQUENC Y STO P
JS T PI T 635a m720a m929 0 BE l JS T PI T 935a m1050a m929 1 BE l JS T PI T 135p m220p m929 2 BE l JS T PI T 455p m620p m929 3 BE l Monda y thr u Saturda y 0 Monda y thr u Saturda y 1 Sunda y thr u Frida y 0 Sunda y thr u Frida y 1 FRO M T O ST A ST A DE P AR RFL T

TIM E TIM E NU M EQUI P FREQUENC Y STO P
PI T JS T 830a m915a m929 1 BE l PI T JS T 1200p m125p m929 2 BE l PI T JS T 400p m445p m929 3 BE l PI T JS T 840p m925p m929 4 BE l Monda y thr u Saturda y 0 Monda y thr u Saturda y 1 Sunda y thr u Frida y 0 Sunda y thr u Frida y 0 (Note : Thi s Schedul e i s fo r illustrativ e purpose s an dma y no t reflec t th e fina l publishe dproduct )GULFSTREA M INTERNATIONA L AIRLINE S Essentia l Ai r

Servic e Proposa l Johnstow n & Altoona , P A Combine d 4 Roundtri p Pittsburgh , P A Servic e Servic e Optio n 4 Gran dTota l

Hu b Serve d Numbe r o f Roundtrip s pe r

Servic e Da

y Altoon a

Pittsburg h Johnstow n

Pittsburg h Altoon a

Johnstow n Altoona/Johnstow n Pittsburg h 4 Operatin g Statistic s Assume dCompletio n % Annua l Adjuste dBloc k

Hour s Annua l Adjuste dDeparture s Annua l Adjuste dASM s Annua l RPM s Projecte dLoa dFacto r 723.9 2 86 9 1,683,54 5 775,02 6 46.0 % 1,188.0 8

1,58 4 2,257,34 9 1,039,17 8 46.0 % 660.0 4

1,58 4 812,64 6 280,86 4 34.6 % . 2,572.0 4 4,036.9 1 4,753,539.4 2 2,095,068.0 0 44.1 %
Revenu e Proiection s Enplane dPassenger s Mileag e Averag e Far e (Averag e a s

Operated ) 9,61 4 102 $46.2 5 11,84 0

7 5 $46.2 5 0

2 7 $46.2 5 21,454.0 0 6 2 $46.2 5 Passenge r

Revenu e $ 444,64 8 $547,60 0 $ 0 $992,24 8 Expens e Proiection s Fligh t Operation s Ownershi p Maintenanc e Reservations , Station s & Administratio n Fue l Marketin g $85,38 9 $86,22 7 $273,84 8 $588,41 2 $291,37 7 $5,00 0 $1,330,25 3 ($885,606 ) $66,51 3 

## -»1 W $1,096.0 2 $99.0 3 $140,13 8

$141,51 4 $416,06 2 $819,21 4 $478,20 1 $5,00 0 $2,000,12 9 ($1,452,529 ) $100,00 6 

### "•'r$i0$isS6i-

- $980.0 7 $131.1 3 $77,85 4

$78,61 9 $225,49 8 $113,84 6 $265,66 7 $ 0 $761,48 4 ($761,484 ) $38,07 4 $799,558 ' $504.7 4 #DrV/0 ! $303,38 1 $306,36 0 $915,40 8 $1,521,47 1 $1,035,24 6 $10,00 0 Tota l Annua l Expense s Projecte dProfi t

/ (Loss )
Profi t Elemen t @ 5 %
Ahnua l SubSidj'Kequireil' , Subsid y pe r

Departur e Subsid y pe r

Passenge r $4,091,86 7 -$3,099,61 9 $204,59 3

$818.5 0 $154.0 1I n conclusion , Gulfstrea mbelieve s that thes e proposal s wil l provid e th e communitie s o f Altoon aan d Johnstown , Pennsylvani awit h superio r ai r service
. W e feel th e communitie s wil l benefi t fro mth e strengt

h o f th e Continenta l codeshar e i n ou r Clevelan doptio n o r

fro mth e lo w fare s o f

ou r Pittsburg h options
. Mos t importantl y w e feel bot

h citie s wil l benefi t

fromth e integrity o f

servic e that

ha s bee n ahallmark

o f th e Gulfstreamoperatio n an dou r willingnes s to wor

k wit h thes e communitie s t o mee t thei r ai r trave l needs
. Respectfull y Submitted : Marc h 24 , 201 0

Micke y Bowma n Vic e Presiden t

o f Corporat e Developmen t GulfstreamInternationa l Airline s