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) 862-9719
San 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

Ogdensburg Saranac Lake

Massena

White Plains

Albany

Manhattan

Rockland

Bar Harbor

Boston

Cape Air Routes

December 2013

Ft. Leonard Wood

Cape Girardeau

Quincy Kirksville

St. Louis

Marion Owensboro

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

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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

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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

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

Boston Logan has Nonstop Domestic Service 

to 75 Destinations
Note: 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

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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

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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

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NYC Option Highlights

Image source: Bleff
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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

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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 2012
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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 

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

• Hold plane for van or vice versa, if necessary

Cape Air

White Plains Airport 75 Minutes Midtown Manhattan

Van logistics
Pick up/drop off location: 8th Ave & 35th St

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Penn Station

Source: Google Maps

Manhattan pick up/drop off location`
MARKETING & PR

Saranac Lake

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Cape Air has a comprehensive marketing program 

for the Adirondack Regional Airport service
Promoting the Airport, And Having Fun Doing It!

•Traditional

• Local media outlets

•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, 2013
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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 

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Cape Air’s “Green Machine”
PROPOSAL

Essential Air Service 

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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 

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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 $911
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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!
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Thank you!