April 23, 2010

Hyannis Air Service, Inc., dba Cape Air

Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601 (508) 862-9719

Please direct media inquiries to Michelle Haynes, Communications Director: (508) 862-9714

Proposal of Hyannis Air Service, Inc., dba Cape Air to provide subsidized Essential Air Service for:

Kirksville, MO

Docket DOT-OST-1997-2515

Three daily non-stop flights to/from Lambert-St. Louis International Airport 

with codeshare expected 
1

Cape Air is a small but robust commuter airline, 

operating and growing since 1989

 First route was Boston –

Provincetown, begun in October 1989 with 

three aircraft

 Presently flying 59 Cessna 402s in five 

regions, and two ATR-42s in Micronesia

 Operating up to 550 flights daily

 In 2009 flew more than 610,000 

passengers

 Stable, mature and growing company 

Key facts Cape Air: Leading the pack nine* at a time

Photo courtesy Mark Garfinkel (August 7, 2000, Boston)

*Kirksville service with the American code would have two pilots, and therefore eight passenger seats
2

For smaller communities and niche markets, 

Cape Air’s nine-seat* planes have proven to be a great fit

 High-frequency, non-stop service

 Interline eticketing and baggage agreements

 Complete GDS sales channels

 Reliability

 Subsidies used to lower fares

 MOCHA HAGoTDI culture and community 

investment

Cape Air highlights “Key West Express”

*Eight seats with the American Airlines codeshare
3

Cape Air began service in 1989 with three aircraft...
4

...And one route: Boston – Provincetown 

Provincetown

Boston

Original Cape Air route map

November 1989 route map
5

Today, Cape Air serves 17 communities in the Northeast...

Northeast route map

Nantucket

Martha’s Vineyard

Providence

Provincetown

Boston

Hyannis New Bedford

Rockland

Lebanon

Plattsburgh

Saranac Lake

Rutland

Albany

Watertown

Ogdensburg

Massena

April 2010 route map

White Plains
6

...And has developed niches along the East Coast, 

in the Caribbean, Midwest and Micronesia

Caribbean

Florida Keys

Micronesia

Continental Connection

Ft. Myers

Key West

Florida

Mid-Atlantic

Ponce

Mayaguez

San Juan

Vieques

St. Croix

St. Thomas

Tortola

Apr 2010 route maps; Maps not to scale

Midwest

Quincy

Cape Girardeau

Marion

St. Louis

Illinois

Missouri
7

Cape Air is developing a track record of growing enplanements 

in EAS markets; in the first year of service at Rutland, Cape Air 

more than doubled enplanements

0

100

200

300

400

500

600

700

800

900

1,000

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Beech 1900 Predecessor

Cape Air

Rutland, Vermont passengers

Cape Air’s first year of service YE10/08

Sources: Rutland Airport and Cape Air
8

Enplanements in Saranac Lake are up 45% and climbing 

vs. our predecessor’s best year

5,574 5,571

8,119

9,384

6,468

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2005 2006 2007 2008 2009

Saranac Lake passengers

Sum of inbound and outbound

+45%

Partial year

Cape Air

Cape Air

Sources: DOT and Cape Air’s Revenue Report
9

Cape Air is an experienced community airline 

with the features smaller communities need

Feature Established

Tickets sold through 

Expedia, Orbitz, Travelocity

Sabre reservations system

Interline eticketing

Checked luggage transfer

TSA security program
Cape Air’s Lambert-St. Louis service began operations on 

November 8, 2009, and is off to a good start

10

Cape Air’s St. Louis region route map

April 2010

Cape Air’s first St. Louis arrival taxis in!

November 8, 2009; Sandi Dorrin, STL Asst. Station Manager
In the first full quarter of operations, 1Q10, Cape Air increased 

enplanements compared with the predecessor’s service at 

each of the airports served to St. Louis...

11

1.3

7.0

5.8

9.4

15.1 14.9

0

2

4

6

8

10

12

14

16

Cape Girardeau Marion Quincy

YE1Q09

Cape Air 1Q10

St. Louis routes’ passengers daily each way

Sources: DOT and Cape Air
...And the enplanement trend is positive

12

567

885 763 856

1066

539

914

805

884

1034

285

536

523

486

688

0

500

1,000

1,500

2,000

2,500

3,000

Nov-09 Dec-09 Jan-10 Feb-10 Mar-10

Cape Girardeau

Marion

Quincy

St. Louis routes’ passengers

Sum of both directions, since inception of Cape Air service Nov. 8, 2009

Partial month
Codeshare with XXXXXXxXXXXXX started in April 2010,

and Cape Air expects to be able to offer 

the AA code to Kirksville

13 AA’s codeshare means this will be an eight-seat aircraft, with copilot
To compliment the codeshare with American, Cape Air will 

soon be moving to Concourse C at St. Louis, 

steps away from American’s gates

14

Cape Air
Cape Air interlines checked luggage at St. Louis with:

American, Continental, Delta, United and US Airways

15

A Cape Air interline bag cart in action at St. Louis

Cape Air’s 

interline bag cart

at St. Louis 
16

Cape Air is already embedded

in the global distribution systems (GDS)

Cape Air is sold through:
Cape Air has built its business over 20 years by providing 

reliable service for smaller communities

17

Plane and pilots based 

in Kirksville

Full service Cape Air 

maintenance base in 

St. Louis

Spare aircraft located in 

St. Louis

Factors in Cape Air reliability
Cape Air brings a time-tested approach to marketing 

small community air service

• A dedicated regional marketing manager 

just for the Midwest

• Cape Air’s proposal includes $41,000 for 

marketing of Kirksville’s air service

• Kirksville city ticket office

– To ensure that the airport and Cape Air’s 

service has heightened visibility in the 

community

• The Bird’s Eye View magazine

– Feature stories about Cape Air 

destinations

18

Marketing highlights Costumed for Nantucket’s Daffodil Weekend
19

Cape Air’s Telephone Reservations Center

Cape Air has had its own reservations center, using the 

industry-standard , system, for more than 15 years

Toll free reservations: 866-CAPE-AIR

Never a booking fee!
20

Our company mantra: 

Have

A

Good

Time

Doing

It!

Make

Our

Customers

Happy,

And

Cape Air celebrates Valentine’s Day at a Caribbean station
21

Cape Air proposes serving Kirksville with the Cessna 402

 Right-sized to grow Kirksville enplanements

 Two pilots*

 Eight passenger seats*

Features

* Assumes AA codeshare
22

Cape Air proposes three daily round trips, seven days per 

week, with Kirksville having its own originator and 

terminator for best connectivity

Draft 3x daily schedule—actual schedule requires connectivity analysis and community input

To St. Louis From St. Louis

Departure Arrival Departure Arrival

0615 0721 0900 1006

1045 1151 1400 1506

1630 1736 1754 1900

Note: If selected, Cape Air intends to 

start service in late September 2010

Weekend schedules can be adjusted for later morning flights, but would still be three round trips per day

At the community’s request on 4/21/10, connectivity will be optimized for top cities like New York, Chicago, Phoenix and Nashville
Cape Air proposes service for Kirksville at an annual 

subsidy rate of $1.4M, which is expected to result in a 

subsidy less than $200 per passenger

23

Lambert - St. Louis to/from: Kirksville

Flt Hrs 2,117

Daily RTs 3.0

Stage (naut. miles) 130

Passenger Seats per Dpt 8

Annual Sched. Dpts 2,190

Completion Rate 97%

Annual Actual Dpts 2,124

PDEW 10.0

Pax/Dpt 3.4

Load Factor 43%

Annual Passengers 7,308

Avg. Net Fare $43.00

Passenger Rev/Dpt $148

Fuel $508,726

Maintenance $474,157

Pilots $229,950

Ownership $70,188

Rents $34,399

Staff $144,574

Landing Fees $42,274

Marketing $41,063

General & Admin./Other $104,190

Operating expense $1,649,520

Return of 5% $86,817

Economic Expense $1,736,336

Passenger Revenue $314,226

Profit ($1,422,110)

Annual Operating Subsidy Required $1,422,110

Subsidy Per Departure $669

Per Passenger $195

Drivers

Annual Expenses
24

Cape Air would be proud to serve Kirksville

 Full interline connectivity, allowing same-ticket connections and checked luggage 

transfer with the world on most major airlines

 Expected codeshare with 

 A reliable airline with three flights per day each way

 Global ticket distribution and sales through Expedia, Orbitz and Travelocity

Cape Air offers the airline amenities Kirksville needs:

Thank you for choosing Cape Air 

to serve Kirksville

Hyannis Air Service, Inc., dba Cape Air

Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601 (508) 862-9719

Please direct media inquiries to Michelle Haynes, Communications Director: (508) 862-9714
Appendix

Interline Examples on Online Travel Agencies
26

Cape Air is on Expedia.com

Screenshot from Expedia.com showing Cape Air 

LNS-PHX search for travel 22SEP09
27

Cape Air is on Travelocity.com

Screenshot from Travelocity.com showing Cape Air 

ATL-MAZ search for travel 22SEP09
28

Cape Air is on Orbitz.com

Screenshot from Orbitz.com showing Cape Air 

ART-DCA search for travel 22SEP09