February 11, 2014 Mr. Kevin Schlemmer Director, Essential Air Service U.S. Department ofTransportation 1200 NewJersey Ave., SE Washington, DC, 20590 Re: Kalaupapa, HI Essential Air Service Dear Mr. Shlemmer: As the president and CEO ofMokulele Flight Services, Inc., dba Mokulele Airlines, I am respectfully requesting the opportunity to summarize the reasons that we feel Mokulele is uniquely qualified to provide Essential Air Service to Kalaupapa, Hawai'i. This is a follow-up to our EAS proposal dated October 30th, 2013. On a personal level, I have a strong commitmentto the state through my 52 years ofaviation history inHawai'i. Infact, this is where I learned to fly. My goal whenI purchased Mokulele in 2011 was to provide safe, affordable interisland travel and it is a goal I continue to be deeply committed to. We are well prepared and well equipped to provide the residents and visitors of Kalauapapa withreliable, cost-effective service ona schedule that makes it convenient for them to complete round-trip, same-day travel to and from Honolulu and Kahului. Itis our beliefthat Mokulele is uniquely qualified to serve this route for the following reasons:
• On-time performance and reliability. Mokulele operates more than 120 flights per day and we have consistently maintained dispatchreliability and on-time departure ratings in the mid-ninety percentrange.
• Modern fleet. In 2013, we invested $22 millionto add nine brand newnine-passenger Cessna Caravan aircraft to our fleet. This is part ofour commitment to operate the youngest fleet ofany Hawai'i carrier operating under either Part 121 or Part 135 ofthe Federal Aviation Regulations (PARs). Bythe end ofthe first quarter of2014, Mokulele Airline's fleet will consist ofall2013 model aircraft, the oldest ofwhichwill not yet have seen one year ofservice. Our newest aircraft are the Cessna Grand Caravan EXmodel with the larger, 867 horsepower engine which enhances operational safety withgreater climb gradients, faster speeds and more available excess power inthe event ofan emergency.

### • Extraordinary focus on safety. Mokulele Airlines has voluntarily adopted the FAA's "One Level ofSafety" philosophy and has committed to operating its aircraft far beyond the minimum standards ofPart 135. First ofall, we have taken the important step of mandating that all ofour revenue flights will be operated with a two-pilot crew, even though this is not required by the FAA. In addition:
o We schedule pilots under strict crew rest requirements, well beyondthe minimums.
o We train ourpilots to utilize the most currentprinciples ofCockpit Resource Management (CRM) and mandate the use ofwritten checklists for normal, abnormal and emergency operations.
o We require that every passenger flight be operated under Instrument Flight Rules (IFR) underthe guidance and supervision oftheAir Traffic Control system which mandates saferroutings, continuous communications from takeoffto landing, higher altitude minimums, greaterterrain clearances, radartracking and higherthan-minimum pilot qualifications.
o We have been approved to use the same Electronic Flight Bag (EFB) program used by the largest air carriers, whichplaces every operational document inthe hands ofthe pilots during every moment offlight.
o We operate a sophisticated flight tracking system, including a dispatch office located in our Kona System Operations Center (SOC).
o We have initiated meetings withAir Traffic Control (ATC) management and line controllers withthe goal offostering a better understanding and awareness ofthe unique safety requirements ofsafely operating single-engine turbine aircraft inthe mountainous, open-ocean environment ofHawai'i.
• Strong, proactive commitmentto aircraft maintenance. We have established maintenance operations in Kona, Kahului and Honolulu, and we have made a significant investment intraining our mechanics and in upgrading our tooling and support ofour engmes.
• EAS trackrecord. In September of2013, we were awarded the essential air service contract for Kamuela, and in the first month ofoperations, we carried more passengers in and out ofKamuelathan the previous carrier had over a 12-monthperiod. Interest in this route is so highthat we are nowplanning to add a third flight per day. Our service toHana, which we launched in 2012, is another success story aboutthe importance and value ofmeeting the needs ofan underserved market.
• Excellent customer service. All eight ofMokulele Airlines' stations are staffed by trained Customer Service Agents (CSAs) to enhance safety, customer service and aircraft handling. We have also made additional investments in ourinformationtechnology and reservations systems to ensure that we maintain a high level ofservice to our customers.
• Global distribution. We have a global distribution systemthat makes it convenient for passengers to make reservations throughtraditional travel agents as well as through online travel booking sites.
• Strong management team. We have established an experienced, cohesive andproactive management teamto support our flight operations and ensure a positive passenger experience.
• Community support. When I purchased Mokulele in 2011, the airline was serving 7,000 passengers permonth. Dueto the growing demand for ourflights, we now serve more than 21,000 passengers permonthwho are travelingto eight destinations onfive islands. We believe this is a strong testament to the trust and confidence Hawai'i residents continue to place in Mokulele. In addition, as the largest carrier serving Ho'olehua Airport, we already have significant experience serving the residents ofMoloka'i. We appreciate the opportunity to bid on serving the Kalaupapa essential air service route. We also respect your recent decision to extend Makana Kai's current contract until May 31st to give you sufficienttime to evaluate all ofthe critical safety, service and reliability factors involved in choosing a carrier. Thankyou again for this opportunity. We would be honored to be awardedthis contract andwe are preparedto begin daily service to meetthe needs ofthe residents ofKalaupapa and the visitors who desire to visitthis significant landmark inHawai'i history. Respectfully, CEO/President

Cc: ScottFaulk