## CHARTERAI R Proposa l t o Provid e Essentia l Ai r Servic e a t Presqu e Isle , Main e Docke t OST-2000-801 2 Dated : 03/26/201 0 Introductio n Charter Air Transport , Inc . i s aCharte r Operato r tha t currentl y ha s a"Sho w Cause " Order fo r Commuter

Fitnes s Determinatio n (Docke t

#DOT-OST-2009-0187 ) wit h afleet o f fou r 3 0 sea t Turb o Pro p EMB-12 0 aircraf t wit h a n optio n to purchas e 2 additional EMB-12 0 aircraf t an d tw o 1 9 sea

t BAE320 0 Jetstreamaircraft . W e als o operate aircraf

t includin g Hawker Jet , Citatio n Jet , Beec h Jet , an d manage s Kin g Air-20 0 equipment . Charte r Air Transpor t i s a n Air Carrie r tha t trul y provide s th e mos t

flexibility withi n it s curren t fleet to operat e aircraf

t an d gro w wit

h eac h communit

y w e serve . W e hav e entere dinto apartnershi p Aviatio n Technologies , Inc. , wh o commonl y own s Publi c Charters , Inc. , t o enhanc e ou r inventor y distributio n (sea

t sales ) b y als o operatin g thes e flights a s publi c charter s an d distributin g the mthroug h th e majo r Globa l Distributio n System s (GDS ) use d b y al l o f th e major Schedule d Airline s to sel l thei r inventor y to th e worldwid e Trave l Agent

Community . So , i

n additio n to th e classi c Interne t base d Reservation s Syste msales ; EA S seat s woul db e availabl e to th e Trave l Communitie s i n Nort h Americ aincludin g Canada , Mexico , an d th e Caribbean fo r tru e global distribution . Whil e filing thes e seat s a s publi c charter s i s no t require d t o serv e EA S markets ; th e extr apotentia l sea t sale s hav e increase d our

marke t projection s t o ove r

doubl e th e curren t

ridershi p in eac h communit y fro mthei r curren t level s o f enplanements . Our

goa l i s to maximiz e load factor s an d fly prove n route s fo r eac h community . Thi s publi c charte r

inventor y woul d b e loade d int o Publi c Charters , Inc.' s lAT A certifie d CR S syste m(Computerize d Reservation s System ) tha

t currentl y interface s wit

h th e Sabr e an d Amadeu s GD S systems . Thes e system s ar e commonl y use d b y Trave l Agencie s worldwide , an d are th e porta l o f sale s fo r larg e clearin g house s lik

e Travelocit

y an d Expedia . Usin g Publi c Charters , Inc.' s advance d CR S enable s u s to distribut e sea t inventor y seamlessl y throug h th e GD S system s b y settlin g th e sale s throug h ARC (Airlin e Reportin g Company) . Al l ticke t sale s are additionall y protecte d when filing our flight inventor y throug h th e publi c charte r venue , a s al l ticke t

sale s revenu e i s directe d into aDO T certifie d & bonde d escro w bank

an dhel d unti l flight

completion . Al l flight

informatio n displaye d o n th e GD S system s woul d includ e th e statement : "Operate dby Charte r Ai r Transport" . Thi s i s exactl y th e wa y tha t commuter

operator s displa

y fo r th e major airlines . Publi c Charters , Inc.' s CR S syste mals o contain s aDeparture Contro l Syste m(DCS ) tha t include s acomplete baggag e an d ticketin g syste mfo

r aconvenien t

airpor t check-i n process . Sinc e thi s syste mha s Typ e "A " connectivity , i t provide s th e basi c component s fo

r baggag e an d ticketin g agreement s wit h mos t main-lin e carriers . I

t i s certifie d E-Ticketin g wit h bot h Sabr e an dAmadeus ; an d ha s plan s t o implement wit h Travelpor

t (Worldspan ) i

n th e nea r future . Thi s wil l enabl e ou r inventor y to als o b e picke du p by Orbitz an d Pric e Lin e fo r additional distributio n opportunities . Additionall y w e us e th e Chec k TSA , Inc . syste mtha

t offer s th e lates t

securit y technologie s tha

t are use d fo

r TS A screenin g includin g complianc e wit h Secure Fligh t

an d CB P AQ Q communicatio n fo r International API S transmissions . Yo u ca n visi t thei r securit y web-site a

t vvvvvv.CheckTSA.con

i fo r more information .

l i 0

## CHARTERAIR ' 

# {Bmsport- ^ Charte r Ai r Transpor t woul dlike t

o fac e th e challeng e o f

providin g servic e t

o EA S communities , mainl y b y identifyin g better , bu t more condense dschedule s tha t serv e alarge r

par t o f communit

y traffi c fo

r O& D (originatio n an d destination ) routes . Whil e w e continu e t o wor k o n our Interlinin g agreements , gettin g passenger s t o thei r final destinatio n convenientl y an dmore efficiently ha s alway s bee n th e goal . Becaus e th e DC S describe dabov e i s a100 % Interne t base d System ; w e are abl e to provid e on-sit e check-in s wit h an y connectin g Carrie r

tha t permit s Interne t

check-in s a s par

t o f thei r web-sit e services . Thi s enable s th e passenge r t o prin t thei r boardin g card fo

r thei r connectin g flight

a t th e EA S departure airport . Returnin g passenger s ma y obtai n thei r boardin g pas s a

t th e Charte r

Ai r Transport/Publi c Charter s gate an d d o no t hav e to g o to th e check-i n counter . Onc e w e ge t th e passenger s delivere dto th e steril e gate areas ; the y woul d already hav e thei r connectin g boardin g card s an d w e woul darrang e alocal transfer o f baggag e eithe r

directl y to th e gate o r

throug h aloca

l baggag e arrangemen t

wit h eac h carrier . We continu e to wor k wit h several major

airline s fo

r Interlin e an d Ticketin g agreements , an d ar e confident that ; wit h our curten t busines s practices ; that

th e trave l experienc e wil l b e practical , expeditious , an d convenien t fo r eac h passenger . W e us e acolo r

code d "Disne y Type " baggag e codin g fo r convenien t

recognitio n o f

interline d baggag e bot

h fo r out boun d an d inboun dflight

baggag e retrieval an d transfers . Whil e w e d o no t charg e baggag e fees , w e mus t collec t any fee s tha

t ma y b e charge d b y othe r

carriers . Thes e charge s wil l b e poste d o n our web-sit e an d collecte d a

t th e tim e o f

check-in . W

e hav e bee n advise db y carrier s like Southwes t Airlines , tha

t if apassenge r

i s carryin g aSouthwes t

Boardin g card or

ha s a Southwes t ticket , they wil l b e treate d like aSouthwes t passenger . Thi s include s th e acceptanc e o f baggage . Thi s i s tru e fo r mos t major airlines . There are several regulation s tha t expec t carrier s t o accommodat e interlinin g traffi c fo r feede r flights. Bot h Charter Air Transpor t an d Publi c Charters , Inc . are committe d to th e highes t on-tim e performanc e an d flight completio n record s to our

passengers . In th e even t

o f a n aircraf t mechanical , our

first resourc e t o i s us e bac k

u p aircraf t fro mwithi n th e Charter

Air Transpor t fleet. However , w e are no t limite d to thes e resource s an d hav e acces s t o retai n sub servic e utilizin g other

certifie dFAA Ai r

Carrier' s aircraf

t tha t coul d consis t

o f aircraf t typ e rangin g frompressurize d Twi n Turb o Pro p aircraf

t to Corporate Je t

aircraft . Shoul d sub-servic e b e necessary , w e wil l utiliz e aircraf t sufficien t to provid e coverag e base d o n th e actual tickete d passenger s fo r eac h flight

leg . Whether

w e us e on e o r

tw o aircraf

t to complete aflight

sequence , w e provid e thi s servic e wit h n o surcharg e or

penalt y to th e EA S Communit

y Service . On e o f ou r motto s i s "G o wit

h U s s o tha

t w e ca n Gro w wit

h You! " Charte r

Ai r Transpor t ca n offe r dail y servic e operatin g multipl e flights pe r da y fo r any EA S route tha

t i s u p to 15 0 nautical mile s poin t to poin t fro mth e originatio n cit y to th e destinatio n city . W e no w offe

r th e choic e o f

operatin g wit

h eithe r th e Jetstream1 9 sea

t aircraf t (o r 1 8 wit h on e lavatory ) or

th e 3 0 sea

t EMB-12 0 (includin g on e Fligh t Attendant ) t o serv e th e community' s trave l needs . Whil e w e recogniz e tha

t communitie s wan

t more frequenc y an d large r aircraft , th e statistic s an d histor y hav e dictate d tha

t thes e route s nee dto b e revampe d an d rebuil t to meet th e tru e communit

y need . W

e offe r prim e tim e departure s an darrivals , includin g earl y mornin g andlate afternoon , to optimiz e bot h th e O& D an d potential connectin g passenge r enplanements . Our desire i s to provid e th e loca l communitie s flight

servic e to a

n airpor t tha t wil l provid e th e mos t

vantag e point s fo

r connectin g into th e National Transportatio n Syste ma t large . Th e combine dpartnershi p betwee n Charte r Ai r Transpor t an d Publi c Charters , Inc . i s designe d t o fit eac h marke t

need , offerin g capabilitie s t o provid e additional aircraf t capacitie s in order

t o gro w wit

h eac h communit

y w e serve ; whil e providin g enhance d ticke t sal e distribution . 2 I 1 - a

## CHARTE R AI R Proposa l Presqu e Isle , Main e t o Boston , Massachusett s Th e larges t

O& D marke t

fo r Presqu e Isl e i s Boston , MA . Th e curren t fare s bein g offere d are approximatel y $500.0 0 roun dtrip . Our

propose dpricin g offer s averag e fare s o f $198.0 0 roun d tri p whic h w e believ e wil l greatl y increas e th e curren t loa d factors . Th e curren t

load factor

wit h th e incumben t

operato r i s slightl y ove r

40% . Thi s include s bot

h O& D an d cormectin g traffic . I

t woul d b e ver

y helpfu l to b e abl e t o make adeterminatio n o f th e percentag e o f

O & D passenger s fo r Bosto n a s compare d t o connectin g passenger s i n th e statistic s provide d b y th e DOT . Thi s informatio n woul d b e helpful fo r al l futur e EA S Proposals . Whil e w e understan d tha t interlinin g i s akey factor

to th e succes s i

n any marke t place , i t seem s tha

t wit h th e curren t

load factors , tha

t th e communit

y i s no t takin g advantag e o f

thi s option . Our

lo w fares , combine dwit

h other Lo w Cos t

carrie r fares , suc h a s Je t

Blue , wil l increas e interlinin g traffi c wit h or withou t traditional interlin e agreements . 3 0 Sea t Turb o Pro p EMB-12 0 Aircraf t Serve s Boston , M A (BOS ) wit h 1 2 non-sto p roun d tri p flights per week . Averag e On e Wa y Fare : $99.0 0 On e Wa y Lo w Fare : $89.0 0 On e Wa y Hig h Fare : $149.0 0 Requeste dsubsid y amoun t pe r year : $2,737,133.0 0 Pleas e refe

r t o Appendi x "A " o f

thi s proposal fo

r detaile d flight

schedul e an d cos t

model .

Pleas e contac t

either Charte r Ai r Transport , Inc . or

Publi c Charters , Inc . wit

h any question s yo u ma

y have . For Charter Ai r Transport , Inc. : Fo r Publi c Charters , Inc. : Peter Billman Ji mGallaghe r Phone : 216-348-141 5 Phone : 570-457-414 7 Fax : 216-348-143 2 Fax : 570-457-411 3 Email : PBillman(aiCharterAirTransport.cor n Email : JG727fi:iiaol.co m Se e attache d exhibit s fo

r schedul e an d pricin g details . Our tentativ e schedule s ar

e subjec t t o final gate an d slo t

approva l fo r eac h airpor

t w e serve .

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