Before the United States Department of Transportation 

May 16, 2013 

Proposal to Provide Essential Air Service at 

EL DORADO, ARKANSAS 

HARRISON, ARKANSAS 

HOT SPRINGS, ARKANSAS 

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

Docket DOT-OST-1997-2935

Proposal of SeaPort Airlines, Inc. 

to Provide Essential Air Service for the Arkansas Communities of 

El Dorado, Harrison, and Hot Springs 

By Order 2013-4-6, the Department requested proposals from carriers interested in providing 

Essential Air Service (EAS) at El Dorado/Camden (El Dorado), Harrison, and Hot Springs, 

Arkansas, with or without subsidy, for a contract term beginning on November 1, 2013. 

SeaPort Airlines currently provides service to all three communities and is pleased to submit this 

proposal for reselection to provide EAS at El Dorado, Harrison, and Hot Springs and is 

requesting a new annual subsidy for all three markets of $5,865,372 ($1,977,153 for El Dorado, 

$2,251,207 for Harrison, $1,637,012 for Hot Springs). 

The requested level of subsidy is lower than the current annual subsidy rate of $5,990,780. The 

difference reflects growth in traffic and revenue that SeaPort has been able achieve to date and 

which is projected to continue during the next contract term as a result of planned 

enhancements to our distribution and interline capabilities in the first and second years of the 

contract term, as well as lower operating costs resulting from a change in aircraft type, 

incremental economies of scale, and targeted improvements to operational efficiency across all 

of SeaPort Airlines operations. 

The proposals herein are submitted on an inseparable basis and for a four year contract term. 

Immediately after this proposal is docketed, SeaPort Airlines will contact the Airport Manager 

and local government officials at each airport to answer any questions and/or schedule public 

meetings where we may present our proposal to local residents, businesses, and community 

leaders. In the interim, questions regarding this proposal should be directed to: 

Timothy Sieber 

Executive Vice President 

SeaPort Airlines, Inc. 

7505 NE Airport Way 

Portland, OR 97218 

(971) 340-1716 

tsieber@seaportair.com
Docket DOT-OST-1997-2935 

May 16, 2013 Page | 2 

SeaPort in Arkansas: A Proven Track Record 

Introduction 

SeaPort Airlines has provided Essential Air Service (EAS) for El Dorado, Harrison, and Hot Springs 

since October 2009. In addition to these Arkansas communities, SeaPort provides EAS at Athens, 

Georgia; Imperial/El Centro, California; Jackson, Tennessee; Pendleton, Oregon; and Salina, 

Kansas. 

As the communities and Department are familiar with SeaPort Airlines, we opted not to include the 

introductory narrative typical in our proposals and directly proceed to our proposal to continue to 

build on our success over the last four years. 

EAS Background: El Dorado, Harrison, and Hot Springs 

As noted above, SeaPort Airlines inaugurated service at El Dorado, Harrison, and Hot Springs 

in October 2009. This followed a period of 19 months during which these communities were 

without scheduled air service due to the bankruptcy of the previous EAS operator, and 

unwillingness of subsequent awardees to commence replacement service.1

 

The effect of this dormancy period was a change in these communities’ travel habits that 

created significant challenges to rebuilding the customer base and restoring confidence in the 

air service that SeaPort offered at El Dorado (ELD), Harrison (HRO), and Hot Springs (HOT). In 

partnership with each community over the nearly past four years, SeaPort has been able to 

gradually rebuild traffic at these airports. 

SeaPort Airlines Traffic Trends: 2010-2012 

O&D Traffic at El Dorado, Harrison, and Hot Springs 

 

1

 After Air Midwest ceased operations, the Department awarded the EAS contract at El Dorado, Harrison, and Hot 

Springs first to Island Air and then to Great Lakes Airlines. Neither of these carriers initiated service, resulting in the 

DOT issuing another subsequent request for proposals which resulted in the initial selection of SeaPort. 
Docket DOT-OST-1997-2935 

May 16, 2013 Page | 3 

SeaPort’s success in rebuilding traffic at these Arkansas communities was noted by the 

Department in Order 2013-4-6: 

“We note that traffic at all three communities has increased significantly since SeaPort 

inaugurated service in late 2009 and the community and the carrier’s efforts should be 

commended.”2

That said, and particularly with respect to Hot Springs, SeaPort proposes to take the lessons 

learned over the nearly past four years, apply them during the next four years, and secure the 

future of EAS in these communities. 

 

 

 

2

 Order 2013-4-6, p3 
Docket DOT-OST-1997-2935 

May 16, 2013 Page | 4 

Discussion of Service Plan 

Service Pattern 

The following pages provide an overview of schedules, aircraft type, pricing tactics, and 

marketing strategies that SeaPort Airlines has planned if reselected to provide EAS at El 

Dorado, Harrison, and Hot Springs. It should be noted that we employed many of these tactics 

which have been validated by our success in rebuilding ridership in these communities following 

the extended dormancy period when there was no EAS service. 

Impact of Changes to Delta Hub at Memphis 

As noted, SeaPort Airlines launched service from our new Memphis hub to El Dorado, Harrison, 

and Hot Springs in October 2009. At this time, Memphis International Airport was a large hub for 

Delta Air Lines making it a highly effective portal to the national air transportation system. 

Beginning in March 2011, however, Delta began a gradual downsizing of the Memphis hub 

which has negatively impacted its functionality as a gateway to the air transportation system. 

This is reflected on the graph below, showing the decline from 205 average daily departures in 

October 2009 (the month that SeaPort started service at MEM) to 80 in December 2012. 

Delta Air Lines

Average Daily Departures at MEM: Oct 2009 – Dec 2012

SOURCE: DOT T100 via Diio

0

50

100

150

200

250

Avg. Daily Departures, 

Oct 2009 = 205

Avg. Daily Departures, 

Dec 2012 = 80

 
Docket DOT-OST-1997-2935 

May 16, 2013 Page | 5 

The service reductions at Memphis by Delta have reduced that airport’s effectiveness as a 

gateway to the national air transportation system. SeaPort responded by, with the Department’s 

approval, redirecting some of our three Arkansas communities’ flights to alternative hubs at 

Kansas City and Dallas (Love Field). This “multiple gateway” strategy has driven strong 

enplanement growth in the Arkansas markets and, as outlined below, our proposal for the next 

contract term aims to build on this success by incorporating community feedback and fine tuning 

schedules. 

El Dorado (ELD) 

The proposed service pattern at El Dorado includes 12 weekly nonstops to Dallas Love Field, 

and nine weekly direct flights to Memphis via Hot Springs. In addition, every day except 

Saturday, there is a single westbound flight between Memphis and El Dorado. 

The formatted timetable on page 7 illustrates the proposed changes to El Dorado schedules that 

will allow travelers to fly to Dallas in the morning, complete a full day of business, and return 

home the same evening. Business travelers from Dallas will benefit from an improved schedule 

that provides 4.5 hours in El Dorado before returning home in a single day. 

Schedules to Memphis would be modified to include a one-stop in Hot Springs with the intention 

of lowering per passenger subsidy levels at both El Dorado and Hot Springs.3

 Additionally, and 

in response to requests from El Dorado-based Murphy Oil, Memphis flights would be retimed to 

enable connections with SeaPort’s Nashville service.4

 

Finally, and again in response to community comments, weekend schedules will be adjusted to 

better meet the needs of leisure travelers. This will result in more flights on Saturday mornings 

that would be offset by a reduction of Sunday morning flights. 

Harrison (HRO) 

At Harrison, SeaPort proposes to provide 12 weekly roundtrips to Memphis and six weekly 

roundtrips to Kansas City. As the Department noted in Order 2013-4-6, SeaPort provides 

Harrison with additional frequency on an unsubsidized basis and, if reselected, intends to 

continue this practice during the next contract term.5

While service to Memphis provides Harrison access to the six airlines serving that airport, there 

is significant local demand in this city-pair that results from Harrison being the headquarters for 

FedEx Ground. As the formatted timetable illustrates, the 18 weekly roundtrips to Memphis (12 

subsidized plus 6 unsubsidized) are well-balanced and enable a single-day roundtrip in either 

direction. 

Nonstop service to Kansas City will continue providing Harrison customers with access to 

connecting markets at fares which are typically lower than available at Memphis. This is a direct 

 

3

 The proposed schedule does include a single nonstop from Memphis to El Dorado in the evenings. 

4

 Murphy Oil is headquartered in El Dorado but retail operations are based in Franklin, TN, a suburb of Nashville. 

5

 This continues our current practice of providing Harrison with frequencies above the level awarded by the 

Department for subsidized service, but at no additional cost to taxpayers. 
Docket DOT-OST-1997-2935 

May 16, 2013 Page | 6 

result of Southwest Airlines having the largest market share at MCI and, as a result, applying 

downward pressure on the fares of all airlines serving that airport. 

Hot Springs (HOT) 

As the Department noted in Order 2013-4-6, subsidy levels at Hot Springs are presently above 

the $200 statutory limit. If reselected to serve Hot Springs and the other Arkansas communities, 

SeaPort Airlines will address this issue using a list of specific “action items” that are explained 

beginning on page 10 of this proposal. However, first among the action items will be an 

adjustment to flight schedules.

With the proposed schedule illustrated on page 7, travelers between Dallas and Hot Springs are 

provided a choice of 18 one-stop flights (six westbound and 12 eastbound, six days per week) 

each week with a brief stop in El Dorado. The introduction of DAL service in 2011 marked a 

turning point in SeaPort’s efforts to rebuild traffic at HOT and the proposed schedule is intended 

to build on that success. Of particular note, the schedule would include a Saturday morning 

inbound from Dallas aimed at attracting visitors to “America’s First Resort.” 

The proposed schedule also provides 12 flights each week to and six flights each week from 

Memphis. While connecting options at Memphis have declined, as outlined previously, demand 

between Hot Springs and Memphis has remained firm. SeaPort believes this is in response to 

increased advertising in the market and more aggressive pricing tactics. The flight times 

between Hot Springs and Memphis in the proposed schedule include adjustments to create 

connecting opportunities with SeaPort’s service to Jackson and Nashville. 

Illustrative Flight Schedule 

Illustrative flight schedules for El Dorado, Harrison, and Hot Springs are provided on the next 

page. As outlined, many of the changes are responsive to community feedback that we have 

received via email, telephone conversations, and community meetings in recent months. 

Nonetheless, if reselected to provide EAS in these communities, we will again solicit comment 

on schedules and, as much as practical, incorporate community requests into the final schedule. 

 
Docket DOT-OST-1997-2935 

May 16, 2013 Page | 7 

SeaPort Airlines Illustrative Flight Schedule 

EAS at El Dorado, Harrison, and Hot Springs, Arkansas 

 

Flt Dep Arr Stops Freq Flt Dep Arr Stops Freq

TO: DALLAS FROM: DALLAS

100 0615 0750 0 ExSun 101 0815 0950 0 ExSun

321 1420 1555 0 ExSat 322 1615 1750 0 Exsat

TO: HOT SPRINGS FROM: HOT SPRINGS

101 1005 1100 0 ExSun 312 1310 1405 0 ExSun

313 1805 1900 0 ExSat

TO: JACKSON FROM: JACKSON

101/102 1005 1445 MEM ExSatSun 311/312 0900 1405 MEM ExSun

417/418 1750 2020 MEM ExSat

TO: MEMPHIS FROM: MEMPHIS

101 1005 1235 1 ExSun 312 1135 1405 1 ExSun

313 1805 2030 1 ExSat 418 1900 2020 0 ExSat

TO: NASHVILLE FROM: NASHVILLE

101/102 1005 1605 MEM ExSatSun 311/312 0740 1405 MEM ExSun

417/418 1630 2020 MEM ExSat

TO: KANSAS CITY FROM: KANSAS CITY

206 1130 1305 0 ExSat 207 1330 1505 0 ExSat

TO: MEMPHIS FROM: MEMPHIS

205 0810 0930 0 ExSatSun 204 0630 0750 0 ExSatSun

207 1515 1635 0 ExSat 206 1000 1120 0 ExSat

209 1845 2005 0 ExSun 208 1710 1830 0 ExSun

TO: SALINA FROM: SALINA

206/522 1130 1455 MCI ExSatSun 521/207 1130 1505 MCI ExSatSun

TO: DALLAS FROM: DALLAS

312 1310 1555 1 ExSat 101 0815 1100 1 ExSun

313 1615 1800 1 ExSat

TO: EL DORADO FROM: EL DORADO

312 1310 1405 0 ExSat 101 1005 1100 0 ExSun

313 1805 1900 0 ExSat

TO: JACKSON FROM: JACKSON

101/102 1115 1445 MEM ExSatSun 311/312 0900 1255 MEM ExSun

TO: MEMPHIS FROM: MEMPHIS

101 1115 1235 0 ExSun 312 1135 1255 0 ExSat

313 1910 2030 0 ExSat

TO: NASHVILLE FROM: NASHVILLE

101/102 1115 1605 MEM ExSatSun 311/312 0740 1255 MEM ExSun

EL DORADO, AR

HARRISON, AR

HOT SPRINGS, AR

UNSUBSIDIZED
Docket DOT-OST-1997-2935 

May 16, 2013 Page | 8 

Aircraft Type 

Current Fleet: Pilatus PC-12 

Since 2009, SeaPort Airlines has provided service to El Dorado, Harrison, and Hot Springs 

using the Swiss-built Pilatus PC-12. This aircraft type was the launch platform for SeaPort 

Airlines and until fairly recently represented 100% of our fleet in the “Lower 48.” The PC-12s in 

SeaPort’s fleet will be retired as leases expire and/or EAS contracts come due for renewal. 

Fleet Renewal Plan: Cessna Caravan 208 

To replace PC-12s and grow our route network, SeaPort Airlines is transitioning to the Cessna 

Caravan as our 9-passenger platform. This aircraft, which already comprises the majority of our 

fleet, allows us to offer the same 9-seats at a lower acquisition cost and also lower hourly 

operating costs than the PC-12. 

Consistent with this fleet plan, SeaPort’s proposal to provide EAS at El Dorado, Harrison, and 

Hot Springs is based on flights operated with Cessna Caravans. With the better operating 

economics outlined above, and aided by operational efficiency initiatives, SeaPort Airlines is 

able to submit this proposal to continue providing our customers in Arkansas with safe, reliable, 

and affordable service, but at a lower subsidy rate than our current EAS contract. 

Produced in the USA, the Caravan’s design is simple but robust. Caravans have high dispatch 

reliability which is a factor we deem critical to maintaining customer confidence in the scheduled 

service at their “hometown airport.” 

Another major benefit of the Caravan is the large cargo pod, which accommodates more 

baggage (volume and weight) than any other 9-passenger aircraft. For example, previously our 

customers were limited to 35 pounds of checked baggage. The Caravan allows us to increase 

that limit to 50 pounds, but at no additional cost to the customer. Equally important, the cargo 

pod allows for segregation of passengers and their baggage, a TSA requirement and necessity 

of interline agreements that include transfer of checked baggage between airlines. 
Docket DOT-OST-1997-2935 

May 16, 2013 Page | 9 

Fares & Pricing Structure 

In all of our markets, whether with subsidy or entirely at risk, SeaPort employs a fare structure that 

includes a full range of price points with varying levels of restrictions intended to attract a wide 

spectrum of customers. This includes fully flexible fares that can be purchased right up until 

departure (and are reasonable compared to “walk-up” of other airlines) and which allows customers 

to change their itinerary or obtain a refund without a service charge. The low fare option provides 

less flexibility however it stimulates additional traffic volume in the form of net-new customers and/or 

more frequent travel by existing customers. 

This pricing strategy has played an integral part in SeaPort’s rebuilding of traffic at El Dorado, 

Harrison, and Hot Springs, and will continue to be major part of the mix of services and products that 

make up “The SeaPort Experience.” 

The table below summarizes SeaPort’s current fares in the Arkansas communities as of May 15, 

2013. 

SeaPort Airlines Fare Structure 

El Dorado, Harrison, and Hot Springs 

NOTE: Listed price points include Federal Excise Tax and segment fees 

The level of requested subsidy in this proposal is based on calculations that use the average fare 

shown next to each destination. While we are unable to guarantee fares over the term of an EAS 

contract due to fuel prices being subject to significant volatility. 

Enhancements to Distribution & Interline Connectivity 

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

www.SeaPortAirlines.com, at any “brick and mortar” travel agency connected to major global 

distribution systems (GDS), and all of the major online travel agencies and meta-searchers such as 

Orbitz, Travelocity, Expedia, Kayak, Hipmunk, and CheapoAir. 

FARE BRAND 

 SUMMARY OF FARE RULES

Booking Class/Fare Basis Code YR B3F M3L Q14L L21X

Advance Purchase (days prior to departure) 0 3 3 14 21

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

Refundable Yes No No No No

PUBLISHED FARES TO/FROM EL DORADO:

Dallas $199 $119 $89 $59 $49

Hot Springs $99 $79 $59 $49 $39

Jackson $169 $109 $99 $79 $59

Memphis $149 $89 $69 $49 $39

Nashville $199 $139 $129 $109 $89

PUBLISHED FARES TO/FROM HARRISON:

Kansas City $189 $129 $79 $69 $59

Memphis $189 $129 $79 $69 $59

Salina $199 $149 $139 $119 $89

PUBLISHED FARES TO/FROM HOT SPRINGS:

Dallas $199 $129 $99 $79 $69

El Dorado $99 $79 $59 $49 $39

Jackson $159 $129 $99 $79 $59

Memphis $149 $99 $69 $49 $39

Nashville $199 $149 $129 $109 $89

FullFlex Free 2 Flex Flex 4 Fee No Flex
Docket DOT-OST-1997-2935 

May 16, 2013 Page | 10 

These distribution channels were not all available during the early months that SeaPort served the 

Arkansas communities when we were dependent on only two channels for sale: the telephone and 

our website (www.SeaPortAirlines.com). Subsequently, investments in new systems have been 

made that resulted in SeaPort’s inventory being available through the channels named above and 

which resulted in measurable traffic growth. During 2012 and into 2013, SeaPort Airlines made 

further investments in reservations and distribution technology. 

SeaPort is committed to making additional IT investments into 2014 that will permit implementation 

of interline agreements with multiple airlines which include e-ticketing, thru baggage check-in, and 

(with select carriers) issuance of connecting boarding passes. These new capabilities are projected 

to generate traffic growth far in excess of that experienced as a result of our earlier enhancements. 

Specifically, with interline agreements, customers from virtually anywhere in the world will be able to 

easily find, price, and purchase a travel itinerary to anywhere in our route system, including the 

Arkansas markets. 

Action Plan to Increase Passengers & Lower Subsidies at Hot Springs 

In Order 2013-4-6 the Department noted: 

“The Department is prohibited from subsidizing air service at a community where the subsidy 

per passenger exceeds $200, unless the community is more than 210 highway miles from the 

nearest large or medium hub airport. Hot Springs is 198 miles from Memphis International 

Airport and based on CY2012 data (January 1, 2012, through December 31, 2012), 4,749 

passengers were enplaned and deplaned at Hot Springs. The annual subsidy amount for Hot 

Springs is $1,474,388. Therefore, the subsidy per passenger at Hot Springs is $310. Rather 

than terminate the community’s eligibility, at this stage, the Department will solicit proposals for 

EAS and evaluate all proposals submitted before either committing to a new rate term or making 

a final determination on Hot Springs’ continuing eligibility to receive EAS in light of its current 

subsidy per passenger being above the $200 ceiling. Before proposals are due, we expect the 

community to work aggressively with all potential applicants to mitigate some of the risks that 

carriers may face in an attempt to lower their subsidy levels. We also expect air carriers to detail 

in their proposals how they will work with the community in lowering the subsidy per passenger 

below the $200 cap.” 

As outlined in this proposal and noted by the Department in Order 2013-4-6, SeaPort and the 

community have been able to rebuild traffic at Hot Springs after the dormancy period. However, 

additional work will be required to ensure continued eligibility in the EAS program. SeaPort 

Airlines believes the specific tactics listed below, some of which have been discussed in detail 

elsewhere in this proposal, directly address the Department’s concerns and will be effective 

over the following four year term in reducing subsidy levels at HOT to below $200 per 

passenger. 

Adjustments to Flight Schedules 

SeaPort’s proposed flight schedule includes continued connectivity to the national air transportation 

system at Dallas and Memphis, but represents an improvement by spreading departures more 

evenly throughout the day and shifting limited frequencies to the weekend with the aim of increasing 

tourist traffic. 

 
Docket DOT-OST-1997-2935 

May 16, 2013 Page | 11 

Lower Operating Costs of Caravan 

As outlined, the Cessna Caravan will allow SeaPort to offer the same number of seats per departure 

as the PC-12 but with reduced costs. 

Advertising 

During the 2012 Christmas season, SeaPort Airlines experimented with advertising that emphasized 

sale fares. Limited to the daily newspaper, the objective was to gauge the market’s elasticity and 

whether this tactic could be applied more aggressively in the form of “flash sales” when advance 

bookings appear weak. 

This experiment was successful with December traffic up and, it appears, a benefit from the resultant 

awareness that lingers after the fare sales expired. As a result of this, SeaPort continues to tactically 

purchase and trade media placements in the Hot Springs media. 

Sales Visits to Major Employers & Travel Agents 

In a number of EAS markets, SeaPort Airlines has reverted to a “back to future” strategy with respect 

to sales calls on larger employers and travel generators. This person-to-person interaction has 

produced verifiable traffic gains, and therefore we intend to increase our “housecalls.” 

Dynamic Packaging of Hot Springs 

SeaPort Airlines has partnered with a third-party to package travel on a dynamic basis that will allow 

us to reach deeper into the leisure market, of which Hot Springs is believed to have the strongest 

potential among the Arkansas communities. With this new partnership, our customers will be able to 

purchase air fare, hotel, ground transportation, and (in some cases) entry to attractions and shows, 

in a single transaction. 
Docket DOT-OST-1997-2935 

May 16, 2013 Page | 12 

Annual Subsidy Request 

The following pages contain the proposals of SeaPort Airlines to continue providing EAS at the 

Arkansas communities of El Dorado, Harrison, and Hot Springs for a new term beginning on 

November 1, 2013. The proposed service patterns at these communities, and summarized earlier in 

this proposal, results in an annual subsidy request of $5,865,372 summarized as follows: 

Summary of EAS Subsidy Requests in Arkansas 

(Docket DOT-OST-1997-2935) 

EAS Community Service Pattern Requested Annual 

Subsidy 

El Dorado (ELD) 

24 segments per week between ELD and 

Dallas Love Field + 6 weekly segments 

between Memphis and ELD + 18 weekly 

segments between ELD and Memphis 

(charged to HOT subsidy request) 

$1,977,153 

Harrison (HRO) 

24 weekly segments between HRO and 

Memphis (plus 12 weekly segments provided 

on a subsidized basis) + 12 weekly segments 

between HRO and Kansas City 

$2,251,207 

Hot Springs (HOT) 

18 weekly segments between HOT and 

Memphis + 18 segments between HOT and 

El Dorado that also provides one-stop service 

to/from Dallas/Love Field 

$1,637,012 

TOTAL $5,865,372 

The subsidy request incorporates the following assumptions and data points: 

 The proposals for each EAS community are being submitted on an inseparable basis. 

 The proposals are being submitted with the request that the Department award SeaPort 

Airlines a four-year contract term. 

 For each of the three EAS communities, the proposal provides nonstop and/or one-stop 

flights to hub airports at Dallas, Kansas City, and/or Memphis. 

 The proposal for each EAS community assumes that all flights operate with Cessna 

Caravan. These aircraft are more cost efficient and have higher operational reliability 

than the Pilatus PC-12 they will replace. 

 Traffic and revenue projections reflect the enhanced selling capability that SeaPort will 

realize from 1) enhanced distribution of inventory and pricing, 2) increased number of 

interline agreements, and 3) introduction of packaging capabilities (i.e., hotels, rental 

cars, attraction tickets) to capture a higher percentage of current market demand and 

stimulation of net-new demand. 
Docket DOT-OST-1997-2935 

May 16, 2013 Page | 13 

 On-going efforts to improve operating efficiencies through cost reductions also resulted 

in a lower total subsidy request. 

The most important component of our proposal, however, is SeaPort’s commitment to continue 

to provide each community with reliable, affordable, and customer-focused air service. The 

specific proposals to provide EAS at El Dorado, Harrison, and Hot Springs are provided on the 

following pages. 

Respectfully submitted, 

Timothy Sieber 

Executive Vice President 

SeaPort Airlines, Inc. 

 
Docket DOT-OST-1997-2935 

May 16, 2013 Page | 14 

Proforma Data

Operating Projections

Average Sector Length (sm) 230

Scheduled Departures 1,560

Scheduled Block Hours 2,080.0

Projected Completion Factor 99.5%

Projected Completed Departures 1,552

Projected Completed Block Hours 2,069.6

Passenger Projections

Projected Passengers 6,892 

Passengers per Departure 4.4 

Projected Average Fare $60.66

Revenue Passenger Miles (RPMs) 1,583,782

Available Seat Miles (ASMs) 3,210,260

Projected Load Factor 49.3%

Financial Projections

Revenues

Passenger Ticket Revenues $418,072

Ancillary Revenues $8,361

Total $426,433

Expenses

Flight Operations $335,275

Aircraft Ownership/Lease $300,000

Fuel & Oil $698,490

Sales & Marketing $50,000

Traffic Servicing $266,876

Insurance $51,740

Maintenance $341,484

Sub-Total - Direct $2,043,865

Indirect $245,264

Total Expenses $2,289,129

Projected Operating Profit/(Loss) ($1,862,696)

Subsidy Calculations

Operating Loss $1,862,696

Economic Return @ 5% $114,456

Required Subsidy $1,977,153

Subsidy per Departure $1,273.77

Subsidy per Passenger $286.88

Avg. Enplanements per Operational Day 11.0

18 Weekly Segments: El Dorado - Hot Springs (continued to MEM)

24 Weekly Segments: El Dorado - Dallas (Love Field)

6 Weekly Segments: Memphis - El Dorado (westbound)

SEAPORT AIRLINES, INC.

EL DORADO, ARKANSAS
Docket DOT-OST-1997-2935 

May 16, 2013 Page | 15 

Proforma Data

Operating Projections

Average Sector Length (sm) 207

Scheduled Departures 1,872

Scheduled Block Hours 2,652.0

Projected Completion Factor 99.5%

Projected Completed Departures 1,863

Projected Completed Block Hours 2,638.7

Passenger Projections

Projected Passengers 11,001 

Passengers per Departure 5.9 

Projected Average Fare $60.55

Revenue Passenger Miles (RPMs) 2,280,874

Available Seat Miles (ASMs) 3,475,686

Projected Load Factor 65.6%

Financial Projections

Revenues

Passenger Ticket Revenues $666,086

Ancillary Revenues $23,313

Total $689,399

Expenses

Flight Operations $459,141

Aircraft Ownership/Lease $300,000

Fuel & Oil $890,575

Sales & Marketing $50,000

Traffic Servicing $299,439

Insurance $65,969

Maintenance $435,392

Sub-Total - Direct $2,500,515

Indirect $300,062

Total Expenses $2,800,576

Projected Operating Profit/(Loss) ($2,111,178)

Subsidy Calculations

Operating Loss $2,111,178

Economic Return @ 5% $140,029

Required Subsidy $2,251,207

Subsidy per Departure $1,208.61

Subsidy per Passenger $204.64

Avg. Enplanements per Operational Day 17.6

HARRISON, ARKANSAS

SEAPORT AIRLINES, INC.

12 Weekly Segments: Harrison - Kansas City

24 Weekly Segments: Harrison - Memphis
Docket DOT-OST-1997-2935 

May 16, 2013 Page | 16 

Proforma Data

Operating Projections

Average Sector Length (sm) 135

Scheduled Departures 1,872

Scheduled Block Hours 2,106.0

Projected Completion Factor 99.5%

Projected Completed Departures 1,863

Projected Completed Block Hours 2,095.5

Passenger Projections

Projected Passengers 6,027 

Passengers per Departure 3.2 

Projected Average Fare $65.37

Revenue Passenger Miles (RPMs) 813,645

Available Seat Miles (ASMs) 2,263,108

Projected Load Factor 36.0%

Financial Projections

Revenues

Passenger Ticket Revenues $393,957

Ancillary Revenues $13,789

Total $407,746

Expenses

Flight Operations $303,843

Aircraft Ownership/Lease $264,000

Fuel & Oil $565,777

Sales & Marketing $50,000

Traffic Servicing $175,839

Insurance $33,528

Maintenance $345,753

Sub-Total - Direct $1,738,740

Indirect $208,649

Total Expenses $1,947,388

Projected Operating Profit/(Loss) ($1,539,642)

Subsidy Calculations

Operating Loss $1,539,642

Economic Return @ 5% $97,369

Required Subsidy $1,637,012

Subsidy per Departure $878.87

Subsidy per Passenger $271.61

Avg. Enplanements per Operational Day 9.7

HOT SPRINGS, ARKANSAS

SEAPORT AIRLINES, INC.

18 Weekly Segments: Hot Springs - Memphis

18 Weekly Segments: Hot Springs - El Dorado (continue to DAL)
Docket DOT-OST-1997-2935 

May 16, 2013 Page | 17