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BEFOR E TH E DEPARTMEN T O F TRANSPORTATIO N j.^ ^ ,- | / \S 3 5

WASHINGTON , D.C

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Essential Ai

r Servic e a t 

### BUTTE , MONTAN A Unde r 4 9 U.S.C

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### GULFSTREA M INTERNATIONA L AIRLINE S PROPOSA L T O PROVID E SUBSIDIZE D AI R SERIC E A T BUTTE

. MONTAN A Correspondenc e wit

h regard to thi s documen t shoul d b e addresse d to : Micke y Bowman

Vic e Presiden t

o f Essential Air

Servic e GulfstreamInternationa l Airline s 110 0 Le e Wagene r

Blvd

. Suit e 20 1 Ft

. Lauderdale , PL 3331 5 Telephone : 270-689-218 0 Fax:270-689-218 0 E-Mail : mbowman@eulfstreamair.co m
GulfstreamInternationa l Airline s ("Gulfstream" ) cordiall y submitsit s proposal s t o provid e subsidize d air servic e to Butte , Montana

. Gulfstreamhereb y offer s tw o option s fo r service

. Gulfstreampropose s to operat e flights , under it s independen t

GulfstreamInternationa l Airline s identit y to th e hub airpor

t o f Billings , Montana

. Gulfstreamha s a n establishe d marke t

presenc e i

n Montan aservin g seve n easter n Montan acitie s fro mth e regional busines s cente r o f Billings

. W

e se e synerg y t

o b e gaine d by linkin g th e wester

n par t o f th e stat e to th e east
. Gulfstreamha s maintaine d interlin e ticketin g and baggag e agreement s wit

h mos t legac y carrier s and wil

l schedul e it s flight s t

o allo w connectin g opportunities

. Gulfstreamcontend s tha

t reasonabl e loca

l fare s will stimulat e deman d and th e variet y o f destination s availabl e fro

mBilling s wil l adequatel y mee t th e transportatio n need s of Butte

. Towar d tha

t end we will establis h afar

e structur e predicate d o n aS9 9 on e way , SI9 8 roun d tri p far e betwee n Butt e and Billings

. Gulfstreamflight s wil l b e availabl e fo r sal e throug h al l major

reservatio n portal s an

d w e wil l maintai n ou r ow n we b base d bookin g sit e a s well a s areservatio n cal l center
. Thi s servic e wil l b e markete d under ou r existin g Islan d Air

codeshar e affiliation , a s ar e al l o f ou r othe r Montan aflights

. I n complianc e wit

h Publi c Law 100-223 , Gulfstreampropose s to operat e thes e flight s usin g Beec h I900 D turboprop s tha

t ar e pressurize d an d accommodat e 1 9 passenger s to Billings

. Th e 1900 D feature s stan d u p headroo mand apressurize d cabi n tha t w e fee l i s critica l i

n recoverin g los t

passenger s wit

h ampl e carg o capacity to accommodat e eve n bulk y militar y duffl e bags

. On e o f th e hallmark s o f

th e Gulfstreamoperatio n i s ou r ability to provid e saf

e an d reliabl e transportation

. Toward thi s end

. Gulfstreamha s establishe d aregional maintenanc e bas e i n Billing s to suppor

t thes e flights

. Additionall y thi s proposal woul d benefi t fro madedicate d spar e aircraf t tha t wa s establishe d wit

h th e earlie r Montan aEA S package

. Wit h thi s spar e locate d i

n Billings , w e hav e grea

t flexibilit y i n respondin g t

o any operationa l challenge s and ca n assur e thi s community receive s th e leve l o f operationa l performanc e i

t deserves

.Servic e Optio n 1

4 8 Weekl y frequencie s betwee n Butte , Montan a.in d Billings , Montan a Gulfstreampropose s t

o operat e thes e flight s unde r it s ow n independen t

marketin g identity and i

n conjunctio n wit

h th e existin g codeshar e agreemen t i t ha s wit h Islan d Air

. Th e timin g o f thes e fljght s wil l b e optimize d fo

r connection s to an d fro

mbot h legac y and lo w cos t

airlin e flight s a

t Billing s Gulfstream propose s to encourag e connectin g traffi c by usin g asimplifie d loca l fe e structur e whereb y passenger s connectin g to o r

fro mothe r airlin e flight s woul d pay onl y th e low , loca l far e i n additio n to th e lo w fare s alread y afeatur

e a t Billings

. Th e basi c servic e pattern woul d consis t o f fou r roundtrip s eac h weekda

y to Billings

. Tw o roun d trip s woul d operat e o n Saturday s an d tw o roun d trip s woul d operat e on Sunday s t o Billings

. Gulfstrea mAirline s Sampl e Fligh t

Schedul e Servic e Optio n 1 FRO M ST A BILLING S BILLING S BILLING S BILLING S

BUTT E BUTT E BUTT E BUTT E T O

ST A BUTT E BUTT E BUTT E BUTT E

BILLING S BILLING S BILLING S BILLING S DE P

TIM E 070 0 103 5 140 5 173 0

082 5 120 0 153 0 185 5 AR R TIM E 081 0 114 5 151 5 184 0

093 0 130 5 163 5 200 0 FL T NU M 359 4 359 1 356 2 359 3

356 0 359 1 356 5 359 3 EQUI P FRE Q

BE l BE l BE l BE l

BE l BE l BE l BE l X7 X7 X 6 X 6

X7 X7 X 6 X 6 S

0 0 0 0

0 0 0 0 STO P

(Note : Thi s Schedul e i s fo r illustrativ e purpose s and ma y no t reflec t th e final publishe d product ) • Servic e Optio n 2 3 6 Weekl y frequencie s betwee n Butte , Montan aan d Billings , Montan a Gulfstreampropose s to operat e thes e flight s under it s ow n independen t

marketin g identity an

d i n conjunctio n wit

h th e existin g codeshar e agreemen t i t ha s wit h Islan d Air

. Th e timin g o f thes e flight s will b e optimize d fo

r connection s to an d fro

mbot h legac y and lo w cos t

airlin e flight s a

t Billing s Gulfstream propose s to encourag e connectin g traffi c by usin g asimplifie d loca l fe e structur e whereb y passenger s connectin g to o r

fro mothe r airlin e flight s woul d pa

y onl y th e low , loca

l far e i n additio n to th e lo w fare s alread y afeatur

e a t Billings

. Th e basi c servic e pattern woul d consis t o f thre e roundtrip s eac h weekda y to Billings

. On e roun d tri p woul d operat e on Saturday s an d tw o roun d trip s woul d operat e o n Sunday s t o Billings

. Gulfstrea mAirline s Sampl e Fligh t

Schedul e Servic e Optio n 2 FRO M ST A T O

ST A DE P

TIM E AR R TIM E FL T NU M EQUI P FRE Q STO P

BILLING S BUTT E BILLING S BUTT E BILLING S BUTT E 070 0 081 0 140 5 151 5 173 0 184 0 359 4

356 2 359 3 BE l BE l BE l X7 X 6 X 6 0 0 0

BUTT E BUTT E BUTT E BILLING S

BILLING S BILLING S 082 5

153 0 185 5 093 0 163 5 200 0 356 0 356 5 359 3 BE l BE l BE l X 7 X 6 X 6 0 0 0 (Note : Thi s Schedul e i s fo r illustrativ e purpose s and ma y not reflec t th e final publishe d product )GULFSTREA M INTERNATIONA L AIRLINE S

Essentia l Ai r

Servic e Proposa l T o Provid e Servic e at : Butte , Montan a

Hu b Serve d Numbe r o f Roundtrip s per

Servic e Da y Operatin g Statistic s Assume d Completio n % Annual Adjuste d Bloc k

Hour s Annual Adjuste d Departure s Annual Adjuste d ASMs

. Annual RPM s Projecte d Loa

d Facto r Revenu e Projection s Enplane d Passenger s Mileag e (Averag e a s Operated ) Averag e Fare Passenge r

Revenu e Expens e Projection s Flight Operation s Ownershi p Maintenanc e Reservations , Station s & Administratio n Fue l Marketin g Tota l Annua l Expense s Projecte d Profit

/ (Loss ) Profit Element j AnnuaJ ^ Subsid y Requjre d Subsid y per

Departur e Subsid y per

Passenge r Optio n 1 Butt e Billing s 4 Non-Sto p (48rt/week ) 97 % 2,731.2 5 2,427.7 8 8,810,40 7 4,600,87 2 52.2 %
24,08 8 19 1 $ 89.2 6 S 2,150,18 5
S515,92 0 5266,40 0 51,093.84 7 SI.558,88 6 51,387,47 5 56,00 0 54.828,52 9 (52,678,344 ) 5241,42 6 

### .V.$2,91V7 0 1 51,202.6 5 5121.2 1GULFSTREA M INTERNATIONA L AIRLINE S

Essentia l Ai r

Servic e Proposa l T o Provid e Servic e at : Butte , Montan a

Hu b Serve d Numbe r o f Roundtrip s per

Servic e Da y Operatin g Statistic s Assume d Completio n % Annua l Adjuste d Block

Hour s Annual Adjuste d Departure s Annua l Adjuste d ASM s Annual RPM s Projecte d Loa

d Facto r Revenu e Projection s Enplane d Passenger s Mileag e (Averag e a s Operated ) Averag e Fare Passenge r

Revenu e Expens e Projection s Fligh t Operation s Ownershi p Maintenanc e Reservations , Station s & Administratio n Fue l Marketin g Tota l Annua l Expense s Projecte d Profit

/ (Loss ) Profit Elemen t 1 ^ Annua l Subsid} ^ Require d Subsid y per

Departur e Subsid y per

Passenge r Optio n 2 Butt e Billing s 3 Non-Sto p (36rt/week ) 97 % 2,048.4 4 1.820.8 3 6,607,80 5 3,064,18 1 46.4 %
16,04 3 19 1 5 89.2 6 5 1.432,02 3
5407,93 3 5266,40 0 5830,55 2 51.206,24 4 51,040,60 6 56,00 0 53,757,73 6 (52.325,713 ) 5187,88 7 $2,513,60 0 I 51,380.4 7 5156.6 8I

n conclusion , Gulfstreambelieve s tha t thi s proposal wil

l provid e thi s Montan acommunity wit h superio r ai r servic e options

. W

e fee l th e passenger s wil

l benefi t fro mth e fac t tha t Billing s i s th e financial and busines s cente r

of Montana

. Th e propose d servic e will connec t Butte not

onl y wit h Billings , bu

t als o wit h a n additiona l seve n eastern Montan acitie s o n adail y basis

. Additiona l connection s will als o b e availabl e wit h th e legac y carrier s servin g Billing s a s well

. W e will provid e thi s servic e o n stan d up , pressurize d airliner s an d th e infrastructure we hav e establishe d i n suppor t of thi s operatio n will add jobs t o th e Montan a economy . Additionall y th e integrity o f servic e tha

t ha s bee n ahallmar

k o f th e Gulfstreamoperatio n will lead to a n enhance d custome r

experienc e an d bod e well fo r th e developmen t

o f intra-stat e air

service

. Respectfull y Submitted : Octobe r 14 , 201 1

Micke y Bowman Vic e Presiden t

o f Essential Ai

r Servic e GulfstreamInternational Airline s