August 13, 2014

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

Ft. Leonard Wood, Missouri

DOCKET DOT-OST-1996-1167

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

With --------------------------- codeshare

Hyannis Air Service, Inc., dba Cape Air

Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601 

(508) 862-9719
Cape Air has been privileged to serve the Waynesville – 

St. Robert Regional Airport since December 2010

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Ribbon cutting for Cape Air’s service at Ft. Leonard Wood, MO

December 14, 2010
CAPE AIR 

About

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3 

Cape Air has grown from a single aircraft and route in 1989 

into America’s largest commuter airline

 First route was Boston – Provincetown, 

begun in October 1989 with one aircraft

 Today’s fleet

 76 Cessna 402s in four regions 

 Four Britten-Norman Islanders

 Two ATR-42s in Micronesia

 Operating up to 550 flights daily

 In 2013 flew 728,000 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) 
Cape Air 2014

• Annual revenue of $120M 

• Financially stable

• 44 airports served, 20 in EAS

• 83 aircraft

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Captain Krista Poppe

Augusta based
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

July 2014

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

Proud to be America’s 

finest commuter airline! Block Island
One of Cape Air’s best features is interline connections 

with all of the legacy airlines plus JetBlue

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Cape Air’s Ft. Leonard Wood flights offer 

American Airlines codeshare, so...

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Codeshare partners: American Airlines and Cape Air

Photo source: Jim Schnobrich; Used with permission
...Ft. Leonard Wood connecting itineraries 

are sold on AA’s website as American flights

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Itineraries connecting between Cape Air and United are 

available on united.com

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Through Expedia and other OTAs, Cape Air connects 

EAS communities like Ft. Leonard Wood with the world

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Over more than 20 years in business Cape Air has 

invested in the airline features smaller communities need

Feature Established

Reliability 

Tickets sold through Expedia, 

Orbitz, Travelocity

Interline e-ticketing and 

bag transfers 

with all legacy airlines 

American Airlines codeshare

TSA security program
CAPE AIR SERVICE

Ft. Leonard Wood 

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The empirical success in ridership growth at Ft. Leonard 

Wood is due to a service solution that fits

Low fares

Safe and 

conservative 

operating 

philosophy

Convenient 

schedule

Interlines with 

all legacy 

airlines at St. 

Louis

Codeshare with

Fully-functioning 

global distribution

plus local outreach

Effective 

baggage 

solution

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Popular 

service 

Constellation of success
Ridership has plateaued at a healthy level but we seek to 

recapture the momentum interrupted by the government 

shutdown

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15,785

Cape Air passengers STL-TBN

Year-ending

0 

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Sep-08

Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

Mar-12

Jun-12

Sep-12

Dec-12

Mar-13

Jun-13

Sep-13

Dec-13

Mar-14

Jun-14
Cape Air’s customized service for Ft. Leonard Wood, 

including a dedicated freighter aircraft when needed, 

meets the route’s extraordinary baggage requirement

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Supervisor Carola Prewett and Capt. Eric Hodges marvel at a flight’s checked luggage
Ft. Leonard Wood fares are down 6% in three years

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$88$87$87$87$87

$86$87$86

$85

$85

$84

$83$83$83

$82

$81$81$81

$80$80$80$81$81$81$81$81$81$81$81$81$82$82

$76

$78

$80

$82

$84

$86

$88

$90

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Cape Air fares at Ft. Leonard Wood

Net average, year ending
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Cape Air offers commuter books of tickets at Ft. Leonard 

Wood that price out to just $52 per ticket

• Several Cape Air routes have more than 66% of passengers using 

commuter books

• Each book contains 10 one-way tickets: $520

• Commuter book tickets are: 

– Transferable

– Unrestricted

– Valid on any departure

• Great for members of the local community!

Key features of commuter books: 
Cape Air’s St. Louis service now features 

a very popular inter-terminal shuttle

• Secure, ramp-side shuttle transports Cape Air 

passengers from our gate to connecting flights 

on other concourses

• Return passengers call the shuttle for pick up 

from courtesy phones located in each of the 

concourses

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Eliminates TSA rescreening 

in St. Louis

Shuttle highlights
Cape Air loves marketing and community events!

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Cape Air booth with ticket give-away

at the Fourth of July 2013 celebration on post
In January 2013 the Ft. Leonard Wood community cut the 

ribbon on our Waynesville ticket office and IT center

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Waynesville ticket office ribbon cutting

January 22, 2013
Cape Air is working to field this FoxAir air conditioning unit 

at Ft. Leonard Wood; ground power is the critical path at 

this point

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FoxAir beta testing, June 4, 2014, Hyannis, MA
EAS PROPOSAL

Ft. Leonard Wood

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To best serve the Ft. Leonard Wood community’s travelers, 

Cape Air proposes continued passenger and freighter 

service, with the freighter used only as required

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Drivers

Passenger Economics—Year 1

Two year contract

Freighter: $586/dpt

Freighter notes: 

•Freighter only used when needed 

•Utilization of the freighter is a function of 

enplanements, which will keep the per-passenger 

subsidy below $200.

•Maximum eligible usage is proposed at 70%

•Year 1

Daily RTs 4.0

Annual Sched. Dpts 2,920

Completion rate 97%

Actual Depts 2,832

Pax/Dpt 5.5

Load Factor 61%

Annual Passengers 15,664

Avg. Net Fare $82.49 

Passenger Rev/Dpt $456 

Fuel $722,441 

Maintenance $725,190 

Pilots $274,462 

Ownership $183,712 

Rents $69,425 

Staff $225,679 

Ops and Landing Fees $114,156 

Freighter Fixed Expenses $233,374 

Marketing $66,532 

General & Admin./Other $215,609 

Operating expense $2,830,580 

Return of 5% $148,978 

Economic Expense $2,979,558 

Passenger Revenue $1,292,074 

Profit ($1,687,484)

Annual Operating Subsidy Required $1,687,484 

Subsidy Per Departure $596 

Per Passenger $108 

Discount for four-year contract

Annual Operating Subsidy Required $1,631,476 

Subsidy Per Departure $576 

Per Passenger $104 

Required Usage Pct Dpts Annual

40% 1,168 $684,390 

50% 1,460 $855,487 

60% 1,752 $1,026,585 

70% 2,044 $1,197,682 

Year 1 Year 1

Notes:

•For stability and planning Cape Air proposes a discounted four-year reselection

•See next page regarding annual escalation factor
To align revenue with costs over time 

Cape Air proposes a 4% annual escalation factor

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Annual proposed subsidy including escalation

Two-year reselection Pax Freighter (Max)

Year 1 $1,687,484 $1,197,682 

Year 2 $1,754,983 $1,245,590 

Four-year reselection

Year 1 $1,631,476 $1,197,682 

Year 2 $1,696,735 $1,245,590 

Year 3 $1,764,605 $1,295,413 

Year 4 $1,835,189 $1,347,230 
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Cape Air would be honored to continue serving 

Ft. Leonard Wood!

 Four daily flights to/from St. Louis with a proven baggage solution

 Spare aircraft in the region helps ensure a reliable operation

 ----------------------------- codeshare, plus interline connections, ticketing and bag transfer with most 

major airlines; global distribution

 A healthy, strong, independent airline that cares passionately about serving communities

Proposal highlights

Cape Air is a great choice for 

Ft. Leonard Wood

Hyannis Air Service, Inc., dba Cape Air

Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601 

(508) 862-9719
It is a privilege to serve Ft. Leonard Wood. Thank you!

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Military Appreciation Day

November 2013

Hyannis Air Service, Inc., dba Cape Air

Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601 

(508) 862-9719