Cape Air is a small but robust commuter airline, 

operating and growing since 1989 

Key facts 

~First route was Boston- Provincetown, 

begun in October 1989 with one aircraft 

~ Now flying 69 Cessna 402s in four regions, 

and two ATR-42s in Micronesia 

~ Operating up to 600 flights daily 

~In 2012 flew 735,000 passengers 

~ Stable, mature and growing company 

Cape Air: Leading the pack nine at a time 

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

J ·· .. 

: f ( -';"" 

' ~ ... : ; . ~ ; 

·. ' £ 

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Cape Air began service in 1989 with a few aircraft ... 

:,:fJape Air Begins 

· Service From P'Town 

.'. ' Cape Air has begun operation of its 

· sche.duled commuter airline service betwee.n , the Prov~ncetown Airport and 

cBoston s Logan Airport. 

· ·Cape Air's fallFswinter schedule offers 

three. to four daily departures from 

Provmcetown and three to four departures 

from Gate No. 28, lo~er level of American 

Airlines Terminal Bin Boston. · 

O:pe Air is a diyision of Hyannis Air 

Service, Inc., an atr charter service and 

fixed base operator at the Barnstable 

Municipal Airport in Hyannis. For more 

information, call lFsB00-352-0714 or 

775-8171. 

3 
... And one route: Boston - Provincetown 

Original Cape Air route map 

I 

•' / 

November 1989 schedule 

4 

Cape Air is led by a dedicated senior team many of whom 

have been with the company more than twenty years 

Cape Air's senior leadership team 

January 7, 2013 

6 
Cape Air has grown steadily over the last ten years 

Cape Air revenue 

In millions 

$120 

$100 

$103.8 

$99.1 

$80 

$60 

$40 

$20 

$0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012: 

7 
 

One of Cape Air's best features is interline connections 

with all of the legacy airlines plus Frontier 

jetBlue AmericanAirlines~ AIRWAYS" 

AD E L TA .·'" UNITED 

AIR LINES 

• FRO,NTIER~ U·SAIRWAYS A I R L I N' E S 

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Cape Air codeshares with American and United 

Codeshare highlights 

• Cape Air operates flights in Micronesia as U N 1 T E ~ ~~® 

• Flights in the Caribbean have U N I T E D code 

• Flights in the Midwest and Caribbean operate with the code of AmericanAirlines'~ 

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Itineraries connecting between Cape Air and United are 

available on united.com 

One Way (Start New Search) 

D•p•tt Rutland, YT (RUT) 

Arn'Jo: Chicago, IL (ORO- O'Hare) 

Tue., Sep. 11, 20 12 Tm.t: 

With Stops 

from 

$149 

FleHible 

Fare 

from 

$491 

Fit"St 

Cabin 

from 

$1,644 

Fares listed are for the entire trip per person and include taxes and fees. Additional bag charges may apoly. 

The fare displayed is the lowest available for the dates requested; however some flights may not be in the cabin you requested. United flights include those operated by our Express partners. 

from 

$149 

Depart: 

7:00a.m. 

Tue •• Sep. 11. 2012 

Rutland, VT (RUT) 

Arrive: 

7:59a.m. 

Tue .• Sep. 11, 2012 

Boston, MA (BOS) 

Change Planes. Connect time in Boston, MA (BOS) is 1 hour 6 minutes. 

Depart: 

9:05a.m. 

Tue., Sep. 11, 2012 

Boston, MA (BOS) 

Depart: 

4:40p.m. 

TIIA Ci:a.n 11 ?01? 

Arri"Je: 

10:52 a.m. 

Tue., Sep. 11, 2012 

Chicago, IL (ORD- O'Hare) 

Arrive: 

5:39p.m. 

Tna. Ci:an 11 ?01? 

Flight Time: 

59 mn 

Flight Time: 

2 hr 47 mn 

Travel Time: 

4 hr 52 mn 

Flight Time: 

59 mn 

Award Miles/ 

Premier Qualifying*: 

Award Miles/ 

Premier Qualifying*: 

867/100% 

Total Award Miles: 

867 

Award Miles/ 

Premier Qualifying*: 

Flight: 9K52 

Opented by Cape Air. 

Aircraft: Cessna 402 

Fare Class: Economy (L) 

Meal: None 

See On-Time Petformance 

Flight: UA521 

Aircraft: Airbus A319 

Fare Class: United Economy (T) 

Meal: Snadcs for Pun:hase 

No Special Meal Offered. 

See On-Time Perform.ar.ce 

View Seats 

Flight: gK70 

C'perated b~· C.ape Air. 

Airrrilfl-: f.p .. ,.n.a 407 

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The paradox 

SMALLER PLANE, 

INCREASED RIDERSHIP 

(Strange but truel) 

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Why do nine-seat aircraft increase ridership? 

Features 

• Lower fares 

- Low absolute cost of the Cessna 402 allows Cape Air to offer low fares in EAS 

• Cape Air proposes all seats on all flights in Montana at $49 

- Subsidy per passenger stays low due to increased ridership 

• Schedule convenience 

- Smaller aircraft are permitted higher frequency 

- Non-stop to/from the hub 

• Reliability 

- Spare aircraft in the region 

- All maintenance and training are done by Cape Air staff 

• Great service 

- MOCHA HAGoTDI! (Making Our Customers Happy And Having A Good Time Doing !t!) 

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Since starting service at Rutland Southern Vermont 

Regional Airport in 2007 Cape Air increased ridership by 

more than 2.5 times 

Rutland Passengers 

14,000 ...,-------------------~~-----

• Cape Air 

• Predecessors 

2,000 

0 

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 

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Ridership at Adirondack Regional Airport is up 83% 

Adirondack Regional Airport Passengers 

Sum of both directions 

0 

2005 2006 2007 2008 2009 2010 2011 2012 

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In Quincy, IL ridership is up 4 fold! 

Quincy, IL Airport Passengers 

Sum of both directions 

25,000 ,.------------------------·---------

20,000 ·t---------------------------1-~7""1~9-1--

Cap~ 17,599 

15,000 +-----------------
The popularity of Cape Air's EAS service is due to 

complex, inter-related contributions 

by Cape Air and our community partners 

Marketing and 

community 

partnership 

Fully-functioning 

global 

distribution 

Low fares: $49 

all seats all 

flights in 

Montana 

Interline ability 

with all network 

carriers 

Convenient nonstop schedule 

Reliability 

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Over more than 20 years in business Cape Air has 

invested in the airline features smaller communities need 

Feature 

Reliability 

Tickets sold through 

Expedia, Orbitz, Travelocity 

Interline e-ticketing 

with all legacy airlines 

Checked luggage transfer 

with all legacy airlines 

TSA security program 

Established 

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Cape Air has its own internal reservations center 

Cape Air's Reservations Call Center 

800-CAPE-AIR 

Never a booking fee! 18 
The key to Cape Air's success is our friendly people ... 

Daffodil "Daffy" Day at Cape Air Reservations 

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... And our mantra: 

Cape Air celebrates Valentine's Day in the Caribbean 

Have 

-

Make A 

Our 

- Good 

Customers 

- Time 

!:fappy, 

And Qoing 

- It! 

-

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Marketing: Cape Air will hire a full-time regional marketing manager, 

based in Billings, to develop and execute a customized marketing plan 

for each community 
SERVICE PROPOSALS 

Service is proposed at the frequencies generally requested in 9-seat aircraft for markets previously 

served by 19-seat aircraft. Also, a lower total cost Option B is included at reduced frequencies 

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Option A: 3x daily (Sx for Sidney) round trips 

Cape Air proposes service for any combination of at least three cities 

Havre Glasgow Wolf Point Sidney Glendive 

Daily RTs 3 3 3 5 3 

Departures (net of completion) 2,124 2,124 2,124 3,541 2,124 

Pax/Opt 2.3 2.3 2.3 4.5 2.3 

LF 25% 25% 25% 50% 25% 

Fare (net) $42.00 $42.00 $42.00 $42.00 $42.00 

Pax Rev $200,746 $200,746 $200,746 $669,155 $200,746 

Fuel $766,341 $776,179 $845,047 $1,424,808 $697,474 

Maintenance $564,791 $570,218 $608,208 $1,022,725 $526,801 

Pilots $301,651 $301,651 $301,651 $301,651 $301,651 

Ownership $189,918 $192,484 $210,449 $355,026 $171,952 

Stations $407,396 $405,308 $413,658 $596,336 $405,308 

Landing Fees $9,368 $9,368 $9,368 $15,614 $9,368 

Marketing $43,116 $43,116 $43,116 $61,594 $43,116 

General & Admin./Other $353,156 $353,156 $353,156 $446,643 $353,156 

Operating expense $2,635,736 $2,651,480 $2,784,653 $4,224,397 $2,508,826 

Return of 5% $138,723 $139,552 $146,561 $222,337 $132,043 

Economic Expense $2,774,459 $2,791,032 $2,931,214 $4,446,734 $2,640,870 

Passenger Revenue $200,746 $200,746 $200,746 $669,155 $200,746 

Profit -$2,573,713-$2,590,286-$2,730,467-$3,777,579-$2,440,124 

Subsidy Required $2,573,713 $2,590,286 $2,730,467 $3,777,579 $2,440,124 

Per Departure $1,212 $1,219 $1,285 $1,067 $1,149 

Per Passenger $538 $542 $571 $237 $511 

ssumes two-year se ect1on term 

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Option 8: 2x daily (4x for Sidney) round trips 

Cape Air proposes service for any combination of at least three cities 

Daily RTs 

Departures (net of completion) 

Pax/Opt 

LF 

Fare (net) 

Pax Rev 

Fuel 

Maintenance 

Pilots 

Ownership 

Stations 

Landing Fees 

Marketing 

General & Admin./Other 

Operating expense 

Return of 5% 

Economic Expense 

Passenger Revenue 

Profit 

Subsidy Required 

Per Departure 

Per Passenger 

ssumes two-year se ect1on term 

Havre Glasgow Wolf Point Sidney Glendive 

2 2 2 4 2 

1,416 1,416 1,416 2,832 1,416 

2.7 2.7 2.7 5.0 2.7 

30% 30% 30% 55% 30% 

$42.00 $42.00 $42.00 $42.00 $42.00 

$160,597 $160,597 $160,597 $588,856 $160,597 

$522,247 $528,952 $575,884 $1,165,176 $475,316 

$384,895 $388,593 $414,482 $836,362 $359,005 

$264,675 $264,675 $264,675 $264,675 $264,675 

$129,425 $131,174 $143,417 $290,333 $117,182 

$416,449 $414,315 $422,851 $700,645 $414,315 

$6,384 $6,384 $6,384 $12,768 $6,384 

$45,333 $45,333 $45,333 $90,666 $45,333 

$317,600 $317,600 $317,600 $409,357 $317,600 

$2,087,009 $2,097,027 $2,190,627 $3,769,982 $1,999,811 

$109,843 $110,370 $115,296 $198,420 $105,253 

$2,196,851 $2,207,397 $2,305,923 $3,968,402 $2,105,064 

$160,597 $160,597 $160,597 $588,856 $160,597 

-$2,036,254 -$2,046,800 -$2,145,326 -$3,379,546 -$1,944,467 

$2,036,254 $2,046,800 $2,145,326 $3,379,546 $1,944,467 

$1,438 $1,445 $1,515 $1,193 $1,373 

$533 $535 $561 $241 $509 

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Cape Air offers all of the airline amenities smaller communities 

need to increase total ridership 

Features 

./ Low fares for EAS communities: all seats on all flights, including tax and fees: $49 

./ Non-stop service for each community 

./Full interline connectivity, allowing same-ticket connections with the world 

./ Global distribution 

./Strong airline with a successful track record of increasing ridership in EAS markets 

Cape Air would be honored to be selected 

to serve Montana's EAS communities 

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