October 30, 2013 Proposal of Hyannis Air Service, Inc., dba Cape Air to provide subsidized Essential Air Service for: 

# Saranac Lake/Lake Placid, NY

DOT Docket: OST 2000

- 8025



## 3x Daily Non

- Stop to/from Boston’s Logan Airport

With an Option for an Incremental 1x Daily to New York City

Hyannis Air Service, Inc., dba Cape Air Attn: Andrew Bonney, VP Planning, 660 Barnstable Road, Hyannis, MA 02601 andrew.bonney@capeair.com or (508 ) 862

- 9719San Juan

Mayaguez

St. Croix Vieques Tortola St. Thomas

Anguilla

Nevis Virgin Gorda Culebra Provincetown Hyannis

Nantucket

Providence New Bedford Martha’s Vineyard Augusta

Lebanon Rutland Saranac Lake Ogdensburg Massena

White Plains Albany

Manhattan Rockland Bar Harbor

Boston



# Cape Air Routes

December 2013 Ft. Leonard Wood

Cape Girardeau Quincy Kirksville

St. Louis

Owensboro Marion Havre Glasgow

Wolf Point Sidney

Glendive

Billings

Map inset not to scale Rota Saipan

Guam Micronesia Denotes seasonal service 

# Cape Air:

The Biggest Little Airline

The World!

# Cape Air has been privileged to serve Adirondack Regional Airport since February 2008

2 A ceremonial First Icicle presented to the first arriving Cape Air crew!

February 12, 2008

# Cape Air’s service has garnered ridership highs not seen since the 1980 Olympics

• Three daily flights to Boston Logan

• Cape Air has provided incremental

**unsubsidized** flights during the last three

summers

• Subsidy per passenger of $131, well below the DOT’s threshold of $200

• Committed community partner

3 8,119 9,384 11,155 11,511 11,809

0 2,000 4,000 6,000 8,000 10,000 12,000

2008 2009 2010 2011 2012 Saranac Lake Passengers Cape Air service summary

# Access Boston for connections to the world

4 

# Boston Logan: The Adirondack’s Access to the WorldNote: Includes Seasonal Service, Source: OAG & Innovata Schedules 

# Boston Logan has Nonstop Domestic Service

to 75 DestinationsNote: Includes Seasonal Service, Source: OAG & Innovata Schedules 

# Boston Logan has Nonstop International Service

to 33 Destinations

# Cape Air is led by a dedicated senior team many of whom have been with the company more than twenty years

7

Cape Air’s senior leadership team

January 7, 2013

# Adirondack Regional Airport has benefitted from Cape Air’s interline connections with all of the legacy airlines plus

JetBlue and Frontier

8

# Cape Air’s affiliation with JetBlue ensures that

Saranac Lake is on JetBlue’s website

9

# Through Cape Air, Saranac Lake is also on

United Airlines’ website

10

# Through Expedia and other OTAs, Cape Air connects

Saranac Lake with all network airlines

11

# Cape Air proposes an additional service option for Saranac Lake, 3x daily BOS plus 1x daily service to/from NYC via

White Plains modeled on Lebanon’s successful EAS service

• The Boston service at 3x daily retains a convenient service pattern for the local Boston market and connecting passengers

• The addition of New York City service via White

Plains connects the Adirondacks with the enormous local market of New York City

• Cape Air provides complimentary ground transportation between White Plains Airport and

Midtown Manhattan

12 NYC Option Highlights

Image source: Bleff13 At Adirondack Regional Airport, skip TSA screening

Fly 1:39 to White Plains

Arrive at a private VIP terminal

Coordinated ground transportation to Manhattan ensures

stress

- free connections

Arrive Midtown at 35th St. and 8th Ave. near Penn Station 

# Cape Air’s service to Midtown Manhattan would provide an elegant link between New York City and the Adirondacks

How it works

# Cape Air’s New York City service pioneered at Lebanon, NH is working extremely well

14 LEB

- HPN passengers, 2x daily

3,245 6,508 7,114

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

2010 2011 201215 

# Cape Air arranges for exclusive ground transportation between White Plains and Manhattan to meet each plane

• Complimentary ground transportation service to a single Midtown Manhattan destination

– 35 th St & 8th Ave, near Penn Station

• Hold plane for van or vice versa, if necessary



## Cape Air

White Plains Airport Midtown Manhattan 

# 75 Minutes Van logistics

# Pick up/drop off location: 8th Ave & 35 th 

# St

16 Penn Station

Source: Google Maps Manhattan pick up/drop off location`

# MARKETING & PR Saranac Lake

17

# Cape Air has a comprehensive marketing program for the Adirondack Regional Airport service

# Promoting the Airport, And Having Fun Doing It!

• Traditional

• Local media o utlets

• Web

- based

• Consumer site visibility

• Social media

• Non

- traditional

• Community outreach Sightseeing flights at Saranac Lake’s 2013 PumpkinFest

Captain Rusty Bannister briefs his young fliers, October 5, 201320 

# To increase local visibility and provide better community

service Cape Air proposes a Ticket Office in downtown

Saranac Lake

# Cape Air takes environmental sustainability seriously by investing in fuel

- saving aircraft technologies and powering its offices with solar panels

21 Cape Air’s “Green Machine”

# PROPOSAL Essential Air Service

22

# Cape Air proposes continued Boston service or continued

Boston service plus NYC service on either a 2

- year term, or the preferred discounted 4

- year option

23 Drivers Expenses

Option A Option B
3x Boston 3x BOS + 1x HPN

- NYC Daily RTs 3 4 Pax/Dpt 5.0 4.8

LF 55% 54% Completion Rate 97% 97% Fare (net) $99 $104

Pax Rev $1,041,013 $1,420,201 Option A Option B
3x Boston 3x BOS + 1x HPN

- NYC

Fuel $899,143 $1,233,378

Maintenance $884,332 $1,221,713

Pilots $169,767 $251,385 Ownership $121,267 $184,578

Stations $402,855 $618,512
Landing Fees $65,451 $71,399
Marketing $73,584 $77,964

General & Admin./Other $169,447 $219,925 Operating expense $2,785,846 $3,878,853

Return of 5% $146,623 $204,150

Economic Expense $2,932,469 $4,083,003
Passenger Revenue $1,041,013 $1,420,201

Profit ($1,891,456) ($2,662,802)

Subsidy Required $1,891,456 $2,662,802
Per Departure $890 $940
Per Passenger $180 $194

4

- Year Contract Discount $1,832,064 $2,579,190
Per Departure $862 $91124 

# Thank you for the privilege of serving Adirondack Regional Airport; we would be honored to be reselected!

 Build on a great relationship!

 Continue successful service 3x daily to/from Boston

 Option for incremental 1x daily NYC service via White Plains Airport

 City Ticket Office in a downtown location

 4

- year contract option for planning and stability and DOT cost savings Proposal highlights



## We look forward to continuing our successful partnership!25 

# Thank you!