## Proposal to Provide Essential Air Service at 

## Harrison, Arkansas Jonesboro, Arkansas Docket DOT

-OST - 1997-2935
Direct Inquiries Regarding this Proposal to:

Shane Storz, CEO Air Choice One Airlines 12300 Old Tesson Road, Suite 200 F, Saint Louis, MO 63128 Phone: (866) 435 -9847 Fax : (314) 843 -8527 E - mail: shane@airchoiceone.com



# Multi -Aero Inc. d/b/a Air Choice One

# Our Commitment

07/12/2011 Air Choice One is aware of the many challenges facing the local Harrison and Jonesboro, Arkansas communities. This proposal will give the best access to the national transportation system for the communities at reasonable prices. We understand the efforts of a dedicated air carrier are critical to having scheduled airline service in the future. Air Choice One is that air carrier and we believe the strategy outlined in our proposal will support and complement airport development efforts. We have proven our strategy works with other EAS communities and we are committed to delivering these same dramatic increases in enplanements and sustaining these numbers over time. Analyzing the challenges ahead, we feel it is a sound approach for Air Choice One to begin operation under our current part 1 35 air carrier certification. We propose to provide non -sterile service to accommodate the current absence of TSA at these airports . As a further provision for the lack of TSA out of Harrison and Jonesboro Airports, our non -sterile service will also include a dedicated shuttle van service at Lambert St. Louis International Airport. Our private shuttle van will increase the ease of t ravel for our passengers and simplify the process of connecting to other carriers. Additionally, this proposal allocates substantial resources to support marketing efforts. Our achievements in our other EAS markets demonstrate that our marketing strategies are successful. Through on -site community outreach, community-specific advertising, consistent flight schedules, and outstanding customer service we will build consumer recognition in the community and drive passengers back to your airport. As we grow ridership, we will turn our attention to sustaining this growth. We p ropose to work with local airport authorities in support of TSA returning services to your airport. Reestablishing a TSA presence w ill return services travelers both want and need when connecting to a medium or large hub airport. These services also serve as an additional pathway to sustaining growth. Increased passenger loads will provide the resources needed for Air Choice One to continue its growth and for the airport to regain full Part 139 status. We commit to providing you with outstanding service. We believe our successes in our other EAS markets, analysis, planning, a nd dedication to the community enables us to overcome the current challenges at these airports and recapture the confidence of l oca l travelers. We will continue working with you throughout our term to provide the next level of air service that will bring us all success.

# Market Growth Strategy - Airport Partnerships Air Choice One will team with your local airport and Lambert St. Louis International Airport to raise awareness about your communities’ air service and increase enplanements.
• LOCAL AIRPORT INITIATIVES WILL GROW RIDERSHIP • Provide Financial Support Through Discounted Fuel Costs, Landing Fees, and Rental Agreements • Educate the Community about the EAS Program and Air Choice One’s Service • Draft and Distribute Press Releases • Community Involvement • Participate in TV and Radio Coverage • Distribute Information Pertaining to Air Choice One at Local Business Events


### • LAMBERT ST. LOUIS INTERNATIONAL AIRPORT (STL) INITIATIVES WILL GROW RIDERSHIP • Aggressively pursuing EAS Communities Through Partnership Programs

– Local Visits and Financial Support

– Annual EAS Summit Held at STL Airport

– STL Currently Supports Over 50 Daily Flights to Seven EAS Communities • EAS Communities Partnering With STL Have Benefited From a Steady Increase in Ridership • Provide Marketing Funds to Both Air Choice One and the Local Community • Market Vacation Packages to STL and Beyond and to Local Communities From STL • Expedited Security Passes— Passengers With Connections Enter Security Through First/Business Class Line • Discount Coupons for Airport Shopping and Concessions 07/12/2011

# Market Growth Strategy –

Partnering With the Community

07/12/2011 

### Air Choice One and Lambert St. Louis International Airport are dedicated to working with your community to reinvigorate the service at your airport and sustain growth that will launch us into the future.


### • WE ARE YOUR NEIGHBORS • Corporate Headquarters in Midwest • Increase Local Career Opportunities • WE ARE IN YOUR COMMUNITY • Routine On - Site Sales Visits 

### • Chamber of Commerce Participation and Membership • St. Louis Airport Affiliate Participation • STRONG PUBLIC RELATIONS AND MEDIA OUTREACH • Business Incentive Programs • Travel Agent Discounts 

### • Business to Business Communication • Attendance at Public Events • WE KEEP YOU INFORMED • Monthly Airport Board Updates

# Market Growth Strategy – Marketing Investment

07/12/2011 Air Choice One reinvests in our served communities and will grow ridership

• TRADITIONAL MEDIA • Radio-Talk Shows/Commercials • TV Commercials and Event Coverage • Print- Newspaper/Magazines • Billboards • Web Based

– E - Blasts

– Monthly E - Mail Promotions

– City Representation on Our Website • SOCIAL MEDIA • Twitter, Facebook, Linked In • INTERACTIVE MEDIA • Contests • You Tube/Videos • EVENTS AND SPONSORSHIPS • Local Charitable Support- March of Dimes, Make -A-Wish Foundation, Red Cross, etc. • Business/Community Support- Golf Tournaments, Business Luncheons, Air Shows, etc. • COMMUNITY TICKET OFFICE

# Market Growth Strategy – Reliability & Growth

• CONSISTENT SERVICE TO STL WILL INCREASE RIDERSHIP • Proven Success in Other EAS Markets • Builds Passenger Confidence in Carrier • Dedicated Aircraft for your Airport

– 102% Flight Completion Ratio as Reported by DOT YR 2010

– Spare Aircraft Availability 

### • AIR CHOICE ONE’S REVENUE INCREASED BY OVER 20% YE 2010 VS. 2009

07/12/2011 

### 75

80 85 

### 90 95 100 105

Am. 

### Eagle Gr. Lakes Sea Port Air 

### Choice Completion %



## Airline Airline Completion Ratios

Works Cited: T- 100 Segment Report DOT 2010 Calendar Year

# Market Growth Strategy – Accessibility

• VISIBILITY • Global Distribution Systems

– Apollo, Worldspan, Travelport, Amadeus, etc. • Consumer Sites

– Expedia, Travelocity, Priceline, Orbitz, etc. • Web based booking



### – www.airchoiceone.com • Call Center

– Open 7 Days a Week


### • CONNECTIVITY • United Airlines Agreement • Actively Pursuing More Legacy Agreements 07/12/2011

# Market Growth Strategy – Pricing Air Choice One offers the right price for the right ticket at the right time. We take all things into consideration and enter the market with low fares. We work hard to establish a winning price point through targeted market analysis. We believe consistent pricing builds consumer confidence.
• BUILDING & SUSTAINING RIDERSHIP THROUGH PRICE • Introductory Fares Peak Interest and Drive Passengers to Air Choice One and Your Airport 

### • On - Going Affordable Fares = Full Planes! • Full Planes Establish the Customer Base Needed to Reduce Future Subsidy Requirements 07/12/2011 

## 0 500 1000 1500 2000 2500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec # of Passengers

Month of Service Air Choice One Ridership Growth EAS Markets 2010-2011*



### 2010 2011 *Numbers Reflect O & D

# Marketing Growth Strategy -

New Hub, New Opportunities ST. LOUIS’ COMBO OF LOW FARE CARRIERS AND ENDLESS CONNECTIONS ARE THE KEY TO 

# SELLING MORE TICKETS AND GROWING RIDERSHIP!

07/12/2011 

## • 244 Daily Flights to 60 Domestic & International Markets as of August, 2011.
• More than 24,700 Daily Outbound Seats.

Source: Innovata Schedules, August 2011 . Destinations STL

Price MEM

Price Savings LAS : Las Vegas, NV $290 $557 $267 LAX : Los Angeles, CA $327 $627 $300 LGA : New York, NY $310 $401 $91 FLL : Fort Lauderdale, FL $241 $607 $366 MKE : Milwaukee, WI $178 $506 $328 ORD : Chicago, IL $248 $529 $281 

## St. Louis Saves You 

## Money!

# Marketing Growth Strategy -

New Hub, New Opportunities

07/12/2011 

# SHUTTLE SERVICE We provide curbside service to connecting flights from all terminals in St. Louis. Our shuttle van service offers a hassle -free travel experience. 

# NON -STERILE OPERATION Due to absence of TSA services in the local community, we are offering non sterile service in STL. Over time, as passenger loads increase, we will support 

### efforts to bring TSA back to your local airport. Regaining local TSA will further contribute to ridership growth.

# Market Growth Strategy -

BONUS Service to Memphis

07/12/2011 

### WE ARE OFFERING TWO HUBS TO SERVE THE NEEDS OF THE COMMUNITY We understand the importance of smooth and timely connectivity for local corporate 

### travelers. We are aware local corporations utilize HRO as a travel portal to Memphis under the current subsidy. Air Choice One will offer non -subsidized air service to MEM. NON -SUBSIDIZED SERVICE TO MEMPHIS
• Increased Passenger Options Grow Ridership • Accommodate Local Corporations’ Travel Needs • Increase Capacity Through Additional Flight Segments • Dual Hubs Increase Connectivity

# Options Index Harrison, Arkansas

07/12/2011 OPTION 1, 2 YEAR SERVICE – STL SERVICE CESSNA GRAND CARAVAN Harrison, Arkansas – Lambert St. Louis International Airport Cessna Grand Caravan 18 Round Trips Per Week

# Options Index Jonesboro, Arkansas

OPTION 1, 2 YEAR SERVICE – STL SERVICE CESSNA GRAND CARAVAN Jonesboro, Arkansas – Lambert St. Louis International Airport Cessna Grand Caravan 18 Round Trips Per Week

07/12/2011

### Harrison, Arkansas – Cessna Grand Caravan Option 1: 2 Year Service 18 Total Round Trips Per Week – Based on 98% Completion Rate 

## Harrison, Arkansas – Lambert St. Louis International Airport – Caravan Operation Revenues HRO-STL Revenues $ 495,600.00 Other Revenues 4,956.00 Total Operating Revenues $ 500,556.00 Direct Operating Expenses Flying Operations $ 275,940.00 Fuel and Oil 592,696.13 Maintenance 436,905.00 Aircraft Leases 395,000.00 Total Direct $ 1,700,541.13 Marketing 63,435.12 Indirect 388,722.00 Total Operating Expenses $ 2,152,698.25 Operating Loss $ 1,652,142.25 Profit Element (5% total Oper. Exp.) 107,634.91 Compensation Required $ 1,759,777.16 Compensation per PAX $ 298.27 Compensation per Departure $ 956.61 # Passengers: 5,900 Average Fare: $ 84.00 Departures: 1,840 Block Hours: 2,300 Revenue Passenger Miles: 1,362,900 Available Seat Miles: 3,390,267

07/12/2011 Representative Schedule Departure Arrival HRO 5:30 AM STL 6:45 AM STL 8:00 AM HRO 9:15 AM HRO 10:00 AM STL 11:15 AM STL 12:00 PM HRO 1:15 PM HRO 2:00 PM STL 3:15 PM STL 7:30 PM HRO 8:45 PM

### Jonesboro, Arkansas – Cessna Grand Caravan Option 1: 2 Year Service 18 Total Round Trips Per Week – Based on 98% Completion Rate 

## Jonesboro, Arkansas – Lambert St. Louis International Airport – Caravan Operation Revenues JBR-STL Revenues $ 418,300.00 Other Revenues 4,183.00 Total Operating Revenues $ 422,483.00 Direct Operating Expenses Flying Operations $ 243,287.10 Fuel and Oil 558,502.56 Maintenance 465,418.80 Aircraft Leases 325,000.00 Total Direct $ 1,592,208.46 Marketing 66,614.32 Indirect 379,524.00 Total Operating Expenses $ 2,038,346.78 Operating Loss $ 1,615,863.78 Profit Element (5% total Oper. Exp.) 101,917.34 Compensation Required $ 1,717,781.12 Compensation per PAX $365.49 Compensation per Departure $ 933.78 # Passengers: 4,700 Average Fare: $89.00 Departures: 1,840 Block Hours: 2,116 Revenue Passenger Miles: 954,100 Available Seat Miles: 2,979,325

07/12/2011 Representative Schedule Departure Arrival JBR 5:30 AM STL 6:40 AM STL 8:00 AM JBR 9:10 AM JBR 9:30 AM STL 10:40 AM STL 12:00 PM JBR 1:10 PM JBR 2:00 PM STL 3:10 PM STL 7:30 PM JBR 8:40 PM

# The Best Choice to Succeed

07/12/2011 

### • Proven Enplanement Increase in EAS Markets • Successful Pricing Strategy • Demonstrated Growth in Community Support • Proven Reliability • Outstanding Completion Ratio • Great Hub Connectivity 

### • Successful Marketing and Public Relations Outreach • Raise Awareness About Local Air Service • We Cater to Community and Business Needs 

# We Look Forward to Serving You!