Before the United States Department of Transportation· 

January31,2013 z;:u 

Proposal to Provide Essential Air Service at 

MACON, GEORGIA Docket OST -2007-28671 

Under 49 U.S.C. 41731 et seq. 

Proposal of SeaPort Airlines, Inc. 

to Provide Essential Air Service at 

Macon, Georgia 

Q: 32 

By Order 2013-1-5, the U.S. Department of Transportation ("the Department") requested proposals 

for Essential Air Service (EAS) at Macon, Georgia no later than January 31, 2013. 

In response, SeaPort Airlines, Inc. respectfully submits this proposal to provide subsidized essential 

air service to the community of Macon, Georgia. The proposal contained herein provides a service 

pattern that connects Middle Georgia Regional Airport with the national air transportation system via 

Charlotte, NC (CL T) and Nashville, TN (BNA). This proposal is for a two-year period at an annual 

subsidy rate of $2,499,837. This proposal is contingent on the Department issuing a Service Change 

Order for EAS at Athens, GA, as described herein. This change in service has agreement from the 

Athens community, and does not increase the level of subsidy for Athens (Docket OST -2002-11348) 

previously awarded to SeaPort Airlines by the Department. 

After this proposal is docketed, SeaPort Airlines will contact the Airport Director at Middle Georgia 

Regional Airport to schedule a meeting with the community, explain our proposal in detail, and 

answer any questions. In the interim and throughout the carrier selection process, questions 

regarding this proposal should be directed to: 

Timothy Sieber 

Vice President - Commercial 

SeaPort Airlines, Inc. 

7505 NE Airport Way 

Portland, OR 97218 

(971) 340-1716 

tsieber@seaportair.com 
SEA·:tPORT ••• :=. ==.AIRLr:<E 

Description of Proposed Service 

Company Introduction 

SeaPort Airlines, Inc. is a FAA certified scheduled airline based in Portland, Oregon with 30 years of 

experience in commercial aviation. In addition to Portland, the company has operational bases at 

Memphis (MEM) and Juneau (JNU). Service from a fourth operational base located at San Diego 

(SAN) is scheduled to begin on March 1, 2013 with service to lmperiai/EI Centro, California. 

Our approximately 185 professionals operate a fleet of 14 aircraft on an average of 90 scheduled 

departures each day, increasing to over 100 each day during the peak tourist season in Southeast 

Alaska. 1 Including new service to lmperiai/EI Centro, the company serves 21 cities in nine states as 

illustrated on the map below. 

WHERE WE FLY 

1 SeaPort Airlines operate in Southeast Alaska branded as "Wings of Alaska." The company operates an additional 8-

10 "flightseeing" tours each day during the summer, which are marketed by major cruise lines such as Princess, 

Carnival, and Royal Caribbean directly to their passengers onboard the ships. These flights, which offer views of 

Alaska landscape and wildlife, are not included in the count of scheduled departures. 

OST-2007-28671 

January 31, 2013 Page 12 
SeaPort Airlines' service to eight of the communities on our route map is provided under the EAS 

program: Athens, Georgia; Pendleton, Oregon; El Dorado, Hot Springs, and Harrison, Arkansas; 

Salina, Kansas; Jackson, Tennessee; and lmperiai/EI Centro, California. 

A primary focus of SeaPort Airlines is to provide affordable and reliable air service to small and rural 

communities across America. This includes many communities that the major airline brands no 

longer view as strategically important to their own business objectives or are unable to serve 

profitably or with a reasonable level of subsidy. This is due to passenger ticket revenue being below 

the threshold necessary to support cost structures and increasingly larger aircraft of regional airlines 

that provide capacity on a contract (i.e., "fee per departure") basis. Simply put, while the big guys are 

focusing on slots in Munich our concern will be for the needs of customers in Macon. 

To serve these communities, SeaPort operates aircraft with operating costs and passenger capacity 

that are appropriate to a market's true demand. This strategy allows us to offer higher frequencies 

and greater choice of departure times than is possible with larger aircraft, including the next 

increment in plane size seating 19-30 passengers. The pricing strategy employed by SeaPort 

Airlines in EAS communities is to incentivize use of the local airport so that enplanements maintain 

EAS program eligibility, but do not result in shifting the "true cost" of air travel to the Department's 

EAS budget. Most importantly, we are focused on providing our customers with attentive and 

personal service that, in many of our markets, is commonly known as "The SeaPort Experience." 

Once SeaPort Airlines is awarded an EAS contract and service is launched, we develop a 

partnership with each community by participating in local events, donation of tickets, on-going 

dialogue with airport management and community leaders, and presentations to civic clubs and 

other similar organizations. We also have a reputation of being responsive to community needs, 

affording them the opportunity to comment on schedule and fare changes before they become 

effective. It is SeaPort's view that airlines and communities, who we view as our customer, need not 

be at odds with each other. We have a shared interest in fostering grass roots support for local air 

service, which therefore builds enplanements to the level needed assuring continued eligibility in the 

EAS program. 

Our commitment to communities similar to Macon is demonstrated by the fact that in every "Lower 

48" community that SeaPort serves in the EAS program, we have been re-selected for subsequent 

terms at the end of our first contract period. This includes reselection during 2012 to four-year 

contract renewals (rather than the standard two-years) at both Salina, Kansas and Pendleton, 

Oregon, after both communities voiced their overwhelming support for SeaPort Airlines. 

Later in this document we have provided comments submitted by customers and airport managers 

that lend support to our commitment and capability to deliver outstanding customer service. 

Nonetheless, we encourage the Macon community to contact the airport manager in any of our EAS 

communities to discuss the responsive, affordable, and reliable air service that SeaPort Airlines 

provides them with each and every day. 

Aircraft 

SeaPort Airlines presently provides service in all of our EAS communities with single engine 

aircraft and, as noted above, every one of our EAS communities in the Lower 48 has reselected us 

for additional contract periods with those same aircraft. We strongly believe that modern singleengine aircraft represent the best platform to provide EAS service that is frequent, affordable, 

and reliable. 

OST-2007-28671 

January 31, 2013 Page 13 
SEA ORT 

Specifically, SeaPort Airlines' proposal at Macon contemplates operations with Cessna 

Caravans which will allow us to offer safe, comfortable, and affordable air transportation in a 

modern and economical aircraft. We suspect that many air travelers that use Middle Georgia 

Regional Airport are familiar with the Cessna Caravan, as this is the same aircraft presently 

operated by Pacific Wings dba Georgia Skies (this is where any similarity with Pacific Wings 

ends). Given the urgent need to rebuild customer confidence in air service at Middle Georgia 

Regional Airport, we believe that the attributes of the Cessna Caravan are perfectly suited for 

this market. 

Produced in the USA, the "Caravan" was originally designed in the 1980's to replace an aging 

fleet of piston-powered aircraft, such as the De Havilland Otter and Piper Chieftain. Over 2,000 

Caravans have been built logging a total of over 12.5 million flight hours. The Caravan is 

certified for single-pilot operation, however SeaPort typically operates with both a Captain and 

First Officer. 

N20BGC 

-, , :J -. SEA/ PORT ._,, X d:=, 

The large cargo pod on the Caravan allows for more baggage than can be accommodated on 

older piston twins (i.e., Piper Chieftain and Cessna 402) and allows us to segregate passenger 

baggage for security purposes. 2 

2 The cargo pod on the Cessna Caravan has a maximum capacity of 111 cubic feet and 1,090 pounds. In 

comparison, the Piper Chieftain has a maximum capacity of 65 cubic feet and 700 pounds in its nose compartment 

and two wing lockers. 

OST -2007-28671 

January 31, 2013 Page 14 
SEA,~tPORT 

Proposed Service Pattern 

In Order 2013-1-5, the Department noted "With specific respect to Macon, given the very low 

passenger levels, we ask that carriers submit proposals for two nonstop roundtrip flights per day (12 

a week) to Atlanta with any sized aircraft. We will also entertain proposals to seNe other hubs that 

provide access to the national air system in order to give the Department and the community as 

broad an array of proposals as possible from which to choose. '

0 

Our proposal to provide EAS at Macon includes 12.5 weekly nonstop roundtrips (25 segments) to 

Charlotte and 6 weekly roundtrips (12 segments) to Nashville International Airport on a one-stop 

basis over Athens, GA. We recognize that 18.5 weekly roundtrips is higher than directed by the 

Department, however our experience rebuilding traffic in EAS communities where Pacific Wings was 

the previous carrier, indicates that a minimum of 18 weekly roundtrips is necessary for Macon to 

achieve the required enplanement levels needed for continued eligibility in the EAS program. 

When this concern was expressed to the Department, staff indicated a willingness to consider all 

reasonable proposals. For the reasons outlined below, SeaPort Airlines respectfully submits that this 

proposal follows the verbal guidance of staff: 

Connecting Hubs: Charlotte & Nashville 

As noted, in Order 2013-1-5 the Department requested proposals for EAS service to Atlanta but also 

provided for other acceptable alternatives. SeaPort Airlines has included in this proposal a service 

pattern that includes service to Charlotte and Nashville. SeaPort Airlines believes that a key 

component of rebuilding traffic at Macon and further differentiating itself from the previous EAS 

operator, is to offer customers a preferable "Atlanta Alternative." 

Charlotte and Nashville meet that objective and, as the table and discussion below illustrate, are 

viable proxies to Atlanta in providing Macon's needed access to the national air transportation 

system. 

+ Charlotte is the largest hub for US Airways and the carrier's recent growth there has included 

a growing number of nonstop flights to Europe and the carrier's first ever service to South 

America. Since first being developed by Piedmont Airlines in the early 1980's, the Charlotte 

hub has built a reputation as a convenient alternative to the congested skies and massive 

terminal complex of Atlanta. Finally, given Charlotte's role as a viable alternative to Atlanta 

and lack of an American Airlines hub in the region, a US Airways-American Airlines merger 

would be very likely to positively create additional connection options at Charlotte. 

+ Nashville's service profile is very different than Charlotte's, increasing the overall benefits 

that a second hub typically offers. Whereas Charlotte has nonstop service to over 1 00 

destinations due to its role as hub for a major airline (US Airways), over 50% of the seats 

offered at Nashville International Airport are provided by the country's largest low-fare airline: 

Southwest Airlines. 

3 OST 2013-1-5, pg. 3 

OST-2007-28671 

January 31, 2013 Page 15 
Comparison of Service Levels & Average Fares 

Atlanta v Charlotte & Nashville 

Com arative Metric Atanta ATL Nashville BNA Charlotte CL 

Schedule Data- March 2013 

Number of Airlines (1) 15 8 9 

Number of Nonstop Destinations 216 47 139 

Avg Daily Departures - ALL Carriers 1,247 185 730 

Avg Daily Departures - Low Cost Carriers 173 98 22 

% of Departures on LCC (2) 14% 53% 3% 

Avg Daily Departing Seats- ALL Carriers 154,224 19,133 72,234 

Avg Daily Departing Seats- Low Cost Carriers 23,367 10,303 3,122 

% of Seats on LCC 15% 54% 4% 

Avg Seats per Departure 123.7 103.4 99.0 

Fares & Traffic Data- YE 302012 

Total Domestic O&D Passengers (3) 13,619,366 3,743,496 4,709,425 

Avg Domestic Fare (incl. taxes & fees) $225.03 $210.45 $236.58 

NOTES 

(1) "Number of Airlines" counts AirTran + Southwest and American + US Airways as separate airlines 

(2) LCC's include AirTran, Southwest, Frontier, and jetBiue 

(3) Only includes those passengers walking in or out of terminal front door, passengers who connect have been filtered from count 

Frequency Level 

If selected, Macon will be the third community where SeaPort Airlines replaces Pacific Wings as the 

provider of EAS. Under Pacific Wings, enplanement levels declined precipitously during that carrier's 

tenure through no fault of the community. The end result has been inclusion of a warning from the 

Department about continued eligibility for EAS when issuing an Order seeking proposals for 

replacement service. 

The Department included such language in Order 2013-1-5, but also included a request that carriers 

submit proposals which include 12 weekly roundtrips at Macon. Based on our experience as the 

replacement carrier for Pacific Wings in other markets, SeaPort Airlines firmly believes a minimum of 

three weekday roundtrips is necessary. Lower frequency levels would work against the aligned 

objectives of the Department, community, and SeaPort Airlines to achieve the desired 10 

enplanements to maintain the eligibility of Macon in the EAS program. 

Finally, Order 2013-1-5 requesting 12 weekly departures was issued after Sun Air, which the 

Department had selected to provide EAS at Macon four months earlier, notified the Department that 

it would be unable to begin the service. 4 In that Order, the Department awarded Sun Air annual 

subsidy of $1,946,266 to operate 24 weekly roundtrips (48 segments) between Macon and Atlanta. 

In comparison, SeaPort Airlines is requesting $2,499,837 to operate 18.5 weekly roundtrips to 

Macon, split between Charlotte and Nashville. The 28% difference in subsidy between SeaPort's 

proposed service pattern and the service pattern previously selected by the Department, i~ primarily 

due to the longer stage length to the proposed hubs relative to Atlanta and, to a lesser degree, 

Seaport's plan to fly modern single-engine turboprops versus the piston-twin that Sun Air had 

planned to operate. 

4 Order 2012-9-6 

OST -2007-28671 

January 31, 2013 Page 16 
Illustrative Flight Schedule 

An Illustrative schedule for the service pattern in this proposal is provided below. If selected to 

provide EAS at Macon, SeaPort Airlines will solicit community comment on proposed flight 

schedules prior to making them available for sale to the public. As much as practical, these 

comments will be incorporated into the final schedule and factoring any impact on flight schedules at 

Athens. 

Depart 

5:45am 

2:30pm 

9:45am 

Arrive 

Docket OST -2007-28671 

Macon, GA (MCN) 

Proposed Flight Schedule 

Frequency Stops Depart Arrive Frequency 

From Macon to Charlotte From Charlotte to Macon 

7:35am Daily 0 8:30am 9:25am ExSun 

4:20pm ExSat 0 5:00pm 650pm ExSat 

From Macon to Nashville From Nashville to Macon 

11:40am ExSun 1 12:30pm 3:10pm ExSat 

"Stops 

0 

0 

1 

We believe the schedule outlined provides a choice of departure times for the consumer while 

allowing us to route the aircraft to our Memphis maintenance base via revenue flight segments. This 

benefits the Department by resulting in a lower overall subsidy request. 

Contingency: Department Approval of Change in Service Pattern at Athens, GA 

By Order 2012-9-27, the Department selected SeaPort Airlines to provide EAS at Athens, GA for a 

two-year term. 5 The service pattern selected by the Department and presently operated by SeaPort 

is 12 weekly roundtrips between Athens and Nashville at an annual subsidy of $1,533,093, or $1,257 

per departure during the first year of service, increasing to $1,630,430 in the second year of service, 

or $1 ,320 per departure. 

This proposal to provide EAS at Macon is contingent on the Department issuing an Alternative 

Service Order allowing SeaPort Airlines to adjust the service pattern and frequency level it provides 

at Athens, GA. The request for a service pattern change by SeaPort Airlines and letter from the 

Athens community confirming their support of this change will be filed separately in the Athens EAS 

Docket. 

The requested change would result in SeaPort operating 11.5 weekly roundtrips (25 segments) 

between Athens and Charlotte, 6 weekly roundtrips (12 segments) between Athens and Nashville (6 

roundtrips), and 6 weekly roundtrips (12 weekly roundtrips) between Athens and Macon. The 

schedule resulting from this change is illustrated on the next page. 

5 Docket OST -2002-11348 

OST-2007-28671 

January 31, 2013 Page 17 
Docket OST -2002-11348 

Athens, GA (AHN) 

SE 

Proposed Flight Schedule w/ Change in Service Pattern 

Depart Arrive Frequency Stops Depart Arrive Frequency Stops 

From Athens to Charlotte From Charlotte to Athens 

6:00am 6:55am ExSun 0 9:30am 10:25am Daily 0 

4:00pm 4:55pm ExSatSun 0 6:30pm 7:25pm ExSat 0 

From Athens to Nashville From Nashville to Athens 

10:45am 11 :40am ExSun 0 9:15am 12:05pm ExSat 0 

ORT 

This request for a change in service pattern would result in no additional expense to the EAS 

program. Specifically, for the same amount of annual subsidy awarded in Order 2012-9-27, SeaPort 

Airlines will request that it be permitted to operate 11.5 weekly roundtrips between Athens and 

Charlotte and 6 weekly roundtrips between Athens and Nashville. This would equate to a subsidy 

per departure of $1,117 for the remainder of year one and $1,173 for all of year two. 6 

Finally, note that the service pattern would result in an average of three daily departures from Athens 

to a hub airport: 2 to Charlotte and 1 to Nashville. The nonstop flights to Charlotte ensure that 

Athens travelers have exclusive access to the same number of departing seats as with the current 

service pattern. Assuming a 50/50 split of the seats onboard the MCN-AHN-BNA flights, the net 

result is an increase of 4.5 daily departing seats for a total of 22.5 per week. 

Pricing Model 

In all markets, regardless of whether on subsidized or strictly speculative basis, SeaPort Airlines 

offers a range of fares that, as noted above, strike a balance between stimulation of market demand 

and avoids shifting the "true cost" of air transportation to the Department. 

All of SeaPort's fares are priced on a one-way basis, including all taxes and fees, and structured as 

follows: 

The highest price point (branded as "FuiiFiex") provides our customers with total flexibility to 

change their travel plans or, if they choose, obtain a full refund without incurring a service 

charge. 

The lowest price point (branded as "NoFiex") targets customers who are certain about their 

travel plans. This fare requires an advance purchase of 21-days, is non-refundable, and 

does not permit any changes from the original booked itinerary. 

+ In between, SeaPort offers a range of fares ("Free2Fiex" and "Fiex4Fee") with price points 

based on how much flexibility a customer has in their travel plans. Except for the two highest 

price points, fares are also subject to capacity controls meaning that the farther in advance a 

reservation is made, the more likely a customer is to get a lower fare. 

The table below summarizes the range of proposed ticket prices in the Macon market, as of the date 

of this proposal and after expiration of introductory fares, along with the rules and restrictions 

applicable to each price point. 

6 As the subsidy request for EAS at Macon includes the 12 weekly segments between Macon and Athens that 

provide the Macon community with one-stop access to Nashville, these are not included in the calculations of subsidy 

per departure. 

OST-2007-28671 

January 31, 2013 Page 18 
SeaPort Airlines Illustrative Fares 

Macon, GA 

SEA:s~PORT ==:=.,\IS: l.: 

Fare Category+ FuiiFiex Free2Fiex Flex4Fee No Flex ..,._, Summary of Fare Rules 

Booking Class/Fare Basis Code YR B3F M3L Q14L L21X 

Min. Advance Purchase (Days) 0 3 3 14 21 

Change Fee $0 $0 $50 $50 Not Permitted 

Refundable Yes No No No No 

FlyerFiex Loyalty Program Credit 200% 150% 100% 

Macon- Charlotte (Avg $66.10) $109 $89 $69 $49 $39 

Macon - Nashville (Avg $69.55) $119 $99 $79 $59 $49 

NOTE: Listed price points include Federal Excise Tax, segments fee, and 9/11 security fee 

SeaPort Airlines' calculation of subsidy requirements is based on a projection of an average ticket 

price of $68.69 and $91.04 to Charlotte and Nashville, respectively. No local passengers or revenue 

are assumed for the "tag segment" between Macon and Athens. 

During the first 30 days of service, SeaPort Airlines would offer an introductory fare of $39 (including 

all taxes and fees) on every seat, on every flight to and from Macon. Our experience at both Jackson · 

and Athens indicates that this type of pricing incentive is necessary to entice customers back to the 

local airport and provide SeaPort Airlines the opportunity to differentiate itself from the previous 

provider of EAS. 

In addition to reasonable fares, SeaPort Airlines seeks to attract customers with customer friendly 

policies and reasonable fees and service charges. For example, SeaPort Airlines does not charge a 

fee for the first checked bag, and the second checked bag is only $25. We do not penalize 

customers with a "service charge" for service from a real person, either via our toll-free telephone 

reservation center or at airport ticket counters. 7 

SeaPort Airlines believes that this combination of fares and polices, combined with reliable operation 

of the outlined service pattern, will be effective in restoring confidence in air service at Middle 

Georgia Regional Airport, and help ensure that the community maintains EAS eligibility by achieving 

a minimum of 10 enplanement per day. 

Interline Connectivity & GDS Display 

SeaPort Airlines tickets may be purchased by calling our toll-free reservation number, online at 

www.SeaPortAirlines.com, at any travel agent connected to the major global distribution systems 

(GDS), or all of the major online travel agencies and meta-searchers such as Orbitz, Travelocity, 

Expedia, Kayak, Hipmunk, and CheapoAir. 

SeaPort presently has an interline ticketing agreement with US Airways, the dominant carrier at 

Charlotte Douglas International Airport and is working toward implementation of an interline 

agreement with a major airline by the end of the first quarter of 2013 which includes E-ticketing and 

thru baggage check-in. SeaPort Airlines is in discussions with two other major airlines and, following 

the current implementation, anticipates beginning implementation of the next agreement. 

7 Similar to our strategy of utilizing our own personnel at airports described elsewhere in this proposal only SeaPort 

Airlines employees answer our reservation lines. We operate a modest reservation call center at Memphis 

International Airport and, during periods of no flight operations, calls are routed to airport ticket counters. The 

company has plans to open its first Spanish-speaking call center in El Centro, California. 

OST -2007-28671 

January 31,2013 Page 19 
Airport Locations & Staffing Plan 

SeaPort Airlines views the use of our own employees as a critical part of our formula to provide 

excellent customer service and build a partnership in our EAS communities.8 If selected to provide 

EAS at Macon, we would utilize our own personnel to provide customer service and ramp 

operations, and maintain the security screening operations that are performed by the Transportation 

Security Administration (TSA). 

The company has an established contract with American Eagle Airlines at Nashville International 

Airport to provide passenger and aircraft servicing for our existing EAS service to Athens, GA and 

Jackson, TN. We anticipate entering into a similar agreement at Charlotte Douglas International 

Airport if selected to serve Macon and, consistent with the view articulated above, will have our own 

staff Middle Georgia Regional Airport. 

All Macon flights would be operated by crews from our pilot base at Memphis International Airport, 

which also is the location of our Mid-South maintenance operations. For unscheduled maintenance 

at Macon and other airports in the proposal's service pattern, SeaPort Airlines will (or has, as 

applicable) contract with an FAA certified Part 145 repair station for "on-call" maintenance. 

Marketing & Public Relations Strategy 

Recognizing the low volume of traffic under the current EAS provider and the requirement of at least 

10 enplanements per day for continued EAS eligibility, SeaPort is prepared to implement a 

comprehensive marketing and public relations strategy if selected to serve the Macon market. In 

addition to local advertising, these activities include: 

• Local Event Marketing: Recognizing the success of visible participation in local events for both 

legacy and low-cost airlines, SeaPort has implemented a similar strategy in all of its 

communities. These have ranged from SeaPort Airlines community Easter egg hunts, to 

presenting at business expos, to hosting "after hours" events at local Chamber of Commerce 

meetings. In addition, SeaPort often makes "in kind" donations of tickets for use by local 

charities, either for their own business needs or as a fundraising tool (i.e., raffles, silent auctions, 

etc.). This type of public outreach maintains awareness of the local airport, which is often on the 

edge of the community and suffers from an "out of sight, out of mind" syndrome. 

• Social Media: SeaPort Airlines effectively leverages social media to engage our customers in a 

dynamic two-way conversation using Internet sites such as Facebook, Twitter, and Linkedln. We 

have found social media to be an excellent tool for generating passenger referrals and 

information sharing in our communities, and expect similar results in Macon. As a measure of 

how successful our social media strategy has been, the only U.S. regional airline with more 

"Likes" on Facebook than SeaPort Airlines is an airline that carries five-times as many 

passengers each year. 

• FlyerFiex Customer Rewards: To thank our customer's for their business, SeaPort maintains a 

customer loyalty program called "FiyerF/ex." This program provides a variety of benefits to our 

frequent flyers including free flights, waivers to excess baggage and ticket change fees, and, 

coming in 2013, participation in the TSA's "Pre-Check" program. 

8 The exception to this is Jackson, TN where the FBO (owned and operated by the Jackson-Madison County Airport 

Authority) has been contracted to provide passenger check-in and aircraft ramp handling for a market-standard fee 

per departure. This agreement was only entered into after concluding the airport authority shared our view that 

exceptional customer service was a requirement to rebuild traffic following the previous EAS operator, and that its 

geographic position of our Mid-South route system would allow us to maintain a community presence and be 

responsive in a timely manner to customer service issues. 

OST -2007-28671 

January 31, 2013 Page 110 
EA ORT 

• Value Accounts: SeaPort offers Corporate Value Accounts that encourage businesses to make 

a long-term investment in their local air service by offering a variety of benefits, such as waivers 

to change fees and savings of 5% to 15%. It is important to note that unlike the corporate travel 

programs of major airlines that are not designed to serve small businesses in rural communities, 

SeaPort's program can provide savings to a company of virtually any size and can be used by 

any employee of a company. 

In this proposal, SeaPort Airlines has allocated $50,000 per year for marketing and sales activity in 

Macon. This budget factors media costs in the Macon media markets and that traffic typically 

originates in the EAS community rather than the hub market. This advertising budget will be 

effectively leveraged with "new media" such as social networking, blogs, opt-in email, etc., all 

intended to engage customers and build relationships on a more personal level. 

Equally as important, there are lessons learned from our service in Jackson, TN (McKellar-Sipes 

Regional Airport) that will be valuable in the effort to rebuild traffic levels at Macon. At Jackson, we 

replaced Pacific Wings, the same carrier which presently serves Macon, and like Athens that 

community experienced a significant decline in ridership over the carrier's tenure as the EAS 

provider. While we implemented the marketing strategy described above, offered affordable fares, 

and operated with high dispatch reliability, the increase in traffic while dramatic compared to our 

predecessor initially was not as strong as we had hoped. 

In response, we reached out to decision makers at companies in the Jackson market known to 

generate demand for air travel. At these face-to-face meetings, we explained details of our service, 

emphasized differentiation with the previous operator, outlined the importance of supporting local air 

service and its impact on the Jackson economy, and communicated the requirements for continued 

eligibility in the EAS program. This strategy, which effectively was a throwback to when airlines sold 

business travelers using sales calls rather than email, produced results. 9 Enplanements at Jackson 

have increased and SeaPort intends to use this experience as a template for producing similar 

results for Macon. 

9

Considering the well-publicized performance of the previous EAS operator, we knew that rebuilding customer trust in 

air service offered at Jackson (McKellar-Sipes Regional Airport) would be a "process" not an "event." Because the 

TSA has refused to provide passenger screening at Jackson, arrivals at the connecting hub must be in a non-sterile 

area away from the main passenger terminal, and shuttling passengers in a van to the main terminal for connecting 

flights. We are working with elected representatives, as well as bureaucratic channels, to reverse the TSA's decision 

that is negatively impacting perception of local air service and impeding our ability to rebuild traffic. 

OST -2007-28671 

January 31, 2013 Page \11 
Community & Customer Feedback 

The Department noted in Order 2013-1-5 that traffic at Middle Georgia Regional Airport has fallen off 

significantly during the years that it has been served by Pacific Wings. In this proposal, SeaPort 

Airlines has identified a number of specific actions it will take to halt this slide and rebuild traffic at 

Macon. 

Most of the identified tactics have been utilized with success at both Jackson, TN and Athens, GA. 

These communities faced the same challenge for the same reasons that Macon does today. Using 

many of the strategies and tactics outlined in this proposal, SeaPort has made measurable progress 

toward the 10 enplanements per day needed for continued EAS eligibility. The most effective of 

these tactics, however, will simply be for SeaPort to do what it does best and does every day which 

is to build a partnership with the community, operate safely and reliably, and provide our customers 

with a great experience: "The SeaPort Experience." 

Provided below is a small sample of the comments that SeaPort Airlines regularly receives from our 

customers and from EAS community partners: 

Our Essential Air Service Community Partners 

"Eastern Oregon Regional Airport at Pendleton had been struggling since schedule changes 

following 9111 served by a carrier flying 37 seat aircraft. Low passenger count attributed to poor 

schedule, which then contributed to poorer passenger count. The carrier's solution was to bring in 

larger aircraft and fly to a different hub. The Airport and community balked at this suggestion and 

went in search of alternatives. The solution found through the EAS process was SeaPort Air flying a 

9 passenger Pilatus. The passengers have welcomed the new service, much better schedule, and 

are elated with 'no security check' and stand by time. Passengers today will say, '/love the service', 

'great customer service,' and 'I'm sure glad I finally tried it, cause I'll be back' 

"In our particular market, the 9 passenger aircraft is perfect, and SeaPort Air provides the schedule, 

the professionalism, and customer service we need and desire." 

Larry Dalrymple (Retired) 

Airport Manager 

Pendleton Regional Airport 

"/ understand the importance of having dependable, reliable air service with an affordable cost. Not 

only will SeaPort Airlines meet these needs, but excel by providing great customer service, a high 

level of community involvement, and an eagerness to become a community partner'. 

Luci Larson 

Former Mayor of Salina & 

Owner of Action Travel 

Salina, KS 

"South Arkansas Regional Airport and the entire South-central Arkansas region suffered from the 

loss of air service previously provided by Mesa Airlines in the Spring of 2008. Unreliable service and 

a poor schedule were already negatively impacting enplanements before Mesa pulled out, but at that 

OST -2007-28671 

January 31,2013 Page \12 
EA>tPORT 

point, the nearest option for air se!Vice of any kind was almost a two hour drive away. After sorting 

through applications from many different interested carriers, the El Dorado Airport Commission, 

along with El Dorado's Mayor, chose SeaPort to restore air service to South Arkansas. This was the 

beginning of a great partnership between SeaPort and our local community. 

"Working with SeaPort has been nothing but a pleasure from the bottom to the top of their 

organization, and their commitment to excellence shines through the glowing comments that I hear 

from people who fly with them. In addition to hearing comments from others, I have flown SeaPort 

on several occasions, and have come away from the experience thinking 'This is how all air service 

should be." 

Our Customers 

Josh Zylks 

Airport Manager 

South Arkansas Regional Airport 

(Goodwin Field) 

"I'm a SeaPort MKL-BNA commuter. My job is on the 5 day 4 night plan and I head out to work sites 

across the nation on Monday and fly home in time for dinner on Friday. Thanks Seaport for the 

se!Vice it beats using a car and parking at the airport." 

Calvin Phillips 

(Jackson to Nashville) 

We needed to change our reservation with SeaPort after having booked with priceline.com. Priceline 

was less than helpful. Frustrated I emailed SeaPort with our needs about 1 0:30PM. The next 

morning at 9:00 we got a call from Cindy in reservations advising that our request had been taken 

care of and was already booked. I NEVER EXPECTED THIS LEVEL OF SERVICE! We are 

satisfied and grateful for the intense personal attention we received. 

Michael McDonell 

(Hot Springs - Dallas) 

"My husband and I recently had to make a fast trip to Dallas for the funeral of a dear friend. I was not 

interested in making that drive over a fast weekend. Then I remembered that SeaPort had recently 

started flights between Hot Springs and Dallas. I called SeaPort, Jim and Bob were so quick to get 

us booked, last minute so we could fly down and attend the funeral and visit with family and friends 

that we don't get to see very often. 

Everyone was so friendly, helpful and professional. It was a dream trip, even to attend a funeral. The 

pilot going down was so kind. When he found out that my husband had been a ball turret gunner in 

WW/1, he gave him a set of headphones so he could listen to the communication between the pilots 

and the air traffic controllers. To say the least, my husband was impressed. It was such a blessing to 

have been taken care of in such a kind and professional manner, especially under the circumstances 

of our trip. Thank you, Jim, Bob, Chris, Doug, Rodney and Michael." 

OST -2007-28671 

January 31, 2013 

Catherine Martin 

(Hot Springs to Dallas) 

Page 113 
'''"'===AI LlNES 

"For two decades I have been picking my mother up at the airport and for two decades I have been 

met with the defeated, hang-dog look that the ordeal of air travel has given her. I guess it pretty 

much does it to all of us, but (as she is well into her 80's) I worry about the toll it takes on her more 

and more lately. 

"When I picked her up today from her SeaPort flight K52325 from Dallas and saw she was smiling, 

you could have knocked me over with a feather! She couldn't stop raving about how pleasant the 

flight was. Let me be clear. My mother is a tough-as-nails Mid-western Yankee from the old school 

who has been around the world a couple of times since the late 1940's. She doesn't bestow idle 

praise and she seldom raves. 

"I'm in the service industry myself and I know how often complaints come through. I just want to be 

sure to let you know how well everyone did on this flight. In the future, I will look to SeaPort first for 

my travel needs and will spread the good word to my friends. 

"A smile and a kind word go a long way y'all. Thank you for getting this one so right." 

"Loved it ... only way to travel!" 

Mark Davis Peterson 

(Dallas to Memphis) 

Phyllis Donnally 

(Dallas to Hot Springs) 

"I cannot say enough wonderful things about my experience with your company. My son, who is 7, 

flew for the first time as an unaccompanied minor. Let's just say that my son and I were very 

nervous. 

On arrival to Kansas City I was welcomed with front row parking and an employee that was 

welcoming and reassuring. When his plane landed the pilot, Demetrius came and talked to me and 

my son for twenty minutes about safety and just reassuring me. He then allowed me to walk my son 

to the plane and see him off. Demetrius started buckling my son into his seat and my son started to 

cry, I could see him reassuring him that everything was going to be ok. All of your employees were 

wonderful and were conscious of safety and the well-fare of my son. My son's flights from Kansas 

City to Memphis were wonderful and because of the extra attention he feels comfortable and 

unafraid of flying by himself 

You have made me a lifelong customer. My son will be flying at least once a year to see his 

Grandparent. I have told all my friends, family and co-workers about your company and how if they 

have an opportunity they should fly with SeaPort. Thank You again for making a nervous mother and 

a scared child feel comfortable." 

Misty Strayhorn 

(Kansas City to Memphis) 

"I would like to tell you of my recent experience at your airline in Memphis, TN. On the evening of 

September 25th I took my friend to the airport to catch her flight to Harrison, AR. I went inside to help 

her with her bags and to say goodbye. Returning to my car to leave it would not start. I went back to 

the waiting area to ask the lady at check in if someone that worked there might have jumper cables. 

OST -2007-28671 

January 31, 2013 Page 114 
===AiRLI 

Waiting a few minutes I saw a pilot friend of mine, Mark Emrath. He had jumper cables but could not 

get my car to start. He went for help and brought back three mechanics with tools. Mark finally left to 

go home after staying to help for over 30 minutes. The other men kept troubleshooting and finally 

removed the battery to have it tested first before making any diagnosis. My daughter had left work to 

come help me by this time and we went to AutoZone and purchased a replacement battery. When 

we returned to the airport the men put my new battery in and checked the car fluids and other parts 

letting me know I needed to have some things fixed. As a single lady it is always frustrating when I 

have car issues, so I was extremely grateful for the help I received at Seaport. The mechanics at the 

Memphis airline were so professional, courteous, and knowledgeable that I wanted to take the time 

to let you know how much I appreciated the SeaPort Airline employees helping me." 

Nita Carr 

(Memphis to Harrison) 

On Saturday June 11, 2005, 17-year-old Theo Allen died after his glider crashed north of Pangborn 

Memorial Airport in Wenatchee, Washington. The following letter was received from his mother in 

June 2012: 

"I wanted to thank your airline and pilots for one of the most amazing Mother's Day gifts. On the 

flight from Yakima to Wenatchee they diverted from the typical route and flew over the ridge my 

son's plane went down in hopes of finding a marker. To see the world from 'Thea's' viewpoint that 

day was extremely healing. I will never forget this kindness and have told many of my friends about 

your airline." 

OST-2007-28671 

January 31, 2013 

Susan Allen 

(Portland to Wenatchee) 

Page 115 
SEA ORT 

Subsidy Request & Supporting Calculations 

The following pages contain the service proposal of SeaPort Airlines to provide EAS at Macon, 

Georgia (Middle Georgia Regional Airport). As noted, this proposal is contingent on the 

Department's approval of SeaPort's request for a change in service pattern at Athens, GA. Our 

formal request, as well as a letter supporting this change from the Athens community, will be 

submitted to that Docket separately. 

We believe this proposal provides Macon with the assurance of reliable, affordable, and customerfocused air service, and look forward to partnering with the community, and the Department to 

rebuild enplanements at Middle Georgia Regional Airport. 

Respectfully submitted, 

Timothy Sieber 

Vice President- Commercial 

SeaPort Airlines, Inc. 

January 31, 2013 

OST -2007-28671 

January 31,2013 Page 116 
OST-2007-28671 

January 31, 2013 

===J\1 Li ES 

SeaPort Airlines, Inc. 

Calculation of EAS Subsidy Requirement at Macon, GA 

12.5 Weekly RTs: Macon, GA- Charlotte, NC 

6 Weekly RTs: Macon, GA- Nashville, TN (via AHN) 

Operating Projections 

Average Sector Length (sm) 

Scheduled Departures 

Scheduled Block Hours 

Projected Completion Factor 

Projected Completed Departures 

Projected Completed Block Hours 

Passenger Projections 

Projected Passengers 

Passengers per Departure 

Projected Average Fare 

Revenue Passenger Miles (RPMs) 

Available Seat Miles (ASMs) 

Projected Load Factor 

Financial Projections 

Revenues 

Passenger Ticket Revenues 

Ancillary Revenues 

Total 

Expenses 

Flight Operations 

Aircraft Ownership/Lease 

Fuel & Oil 

Sales & Marketing 

Traffic Servicing 

Insurance 

Maintenance 

Sub-Total - Direct 

Indirect 

Total Expenses 

Projected Operating Profiti(Loss) 

Subsidy Calculations 

Operating Loss 

Economic Return @ 5% 

l Required Subsidy 

Subsidy per Departure 

Subsidy per Passenger 

Avg. Enplanements per Operational Day 

Proforma Projection 

186 

1,924 

2,808.0 

98.5% 

1,895 

2,779.9 

6,429 

3.4 

$68.28 

1,197,754 

3,177,535 

37.7% 

$438,983 

$8,780 

$447,763 

$262,702 

$300,000 

$788,107 

$50,000 

$413,506 

$46,703 

$581,413 

$2,442,432 

$364,806 

$2,807,238 

($2,359,476) 

$2,359,476 

$140,362 

$2,499,8371 

$1,319.08 

$388.82 

10.3 

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