## BEFOR E TH E DEPARTMEN T O F TRANSPORTATIO N WASHINGTON , D.C . > ; 1 ^ ,\J, \


### Essential air

servic e a t AUGUSTAAVATERVILLE , MAIN E BA RHARBOR , MAIN E Docke t DOT-OST-1997-278 4

PROPOSA L O FCOLGA N AIR , INC
. T O PROVID E SUBSIDIZE D ESSENTIA L AI RSERVIC E T O TH E COMMUNIT Y O FPRESQU E ISL E / HOULTON , MAIN E

Communication s wit

h respec t to thi s documen t

shoul db e directe dt o : Dou g Shocke y Presiden t Colga n Air , Inc
. 176 9 Parago n Driv e Suit e 10 0 Memphis , T N 3813 2 (703 ) 656-230 7

## BEFOR E TH E DEPARTMEN T O F TRANSPORTATIO N WASHINGTON , D.C . Essentia l ai r

servic e a t 

## AUGUSTAAVATERVILLE , MAIN E BAR HARBOR , MAIN E Docke t DOT-OST-1997-278 4

PROPOSA L O FCOLGA N AIR , INC
. T O PROVID E SUBSIDIZE D ESSENTIA L AI RSERVIC E T O TH E COMMUNITIE S O F

AUGUST A AN D BA RHARBOR , MAIN E B y order 2010-6-22 , th e Departmen t requeste dproposal s fro

mcarrier s intereste din providin g Essential Air

Servic e fo

r afutur e two-yea r period
. Colga n Air , Inc. , awholl y owne dsubsidiar y o f Pinnacl e Airline s Corp. , (hereinafter "Colgan" ) respectfull y submit s tw o proposal s to continu e providin g servic e t o th e Coastal Main e communities
.

• Optio n 1 o AU G - BHB - BO S 1 9 roun dtrip s per communit

y per wee k operatin g a s a combinatio n o f

non-sto p an done-sto p servic e • $4,439,04 1
• Optio n 2 o BH B BO S 1 4 non-sto p roun dtrip s pe r wee k $2,298,53 3 Bot h option s will utiliz e aSaa b 340 , a3 4 passenge r

cabi n clas s aircraf

t operate db y acre w o f

tw o pilot s andaflight

attendant
. Colga n i s aregional airlin e operatin g Saa b 34 0 aircraft
. Colga

n operate s regional schedule d servic e a s U S Airway s Expres s under agreement

wit h U S Airways
. Th e service s offeredby Colga n allo w seamles s connectio n to U S Airway' s domesti c an dinternational route syste mvi ath e U S Airway s focu s cit

y operatio n a

t Bosto n Loga

n International Airport
. Colga n Ai r ha s alon g operatin g histor

y wit h U S Airway s a

t Bosto n Loga

n an dha s consistentl y demonstrate da commitment

t o outstandin g passenge r

servic e t o th e communitie s w e serve . Th e schedul e proposal attache dpresent s optimize dtimin g t o maximiz e connectin g option s wit h th e U S Airway s syste mou t

o f Bosto n Logan
. In addition , th e option s provid e attractiv e schedulin g option s fo r bot h busines s andleisure traveler s utilizin g U S Airway' s membershi p in th e Sta r Allianc e Networ

k whic h ha s aconsiderabl e domesti c an dinternational presenc e a t Bosto n Loga

n International Airport
. Respectfully submitted , Dou g Shockey President Colga n Air , Inc
.

## Optio n 1 August a- Ba r

Harbo r Combinatio n Annua l Statistic s HA S Cycle s (1 9 roun dtrip s / 3 8 segment s t o /

fro mBosto n pe r week ) Estimate dAU G Passenger s Estimate dBH B Passenger s Bloc k Fligh t Blk/Fl t Rati o Avai l Seat s RPM s ASM S Loa dFacto r 3,95 2 11,10 0 15,90 5 3.63 0 2,46 5 68 % 125,52 8 4,760,18 0 16,337,15 2 29 %

AU G Revenu e BH B Revenu e Annua l Profi t / (Loss ) Summar y 1,098,90 0 2,051,74 5 Tota l Revenu e 3,150,64 5

Fue l M X Operation s Fligh t Operation s Groun dServic e Landin g Fee s Ticketin g an dPassenge r Relate d Aviatio n Insuranc e 1,400,57 7 2,075,61 5 1,123,46 1 1,259,62 4 251,88 9 371,43 5 29,30 7 Tota l Cas h Cost s Ne t Contributio n B.O
. Ownershi p Ne t Contributio n A.O
. Marketin g Othe r Overhea d 6,511,90 6 (3,361,261 ) 300,00 0 (3,661,261 ) 50,00 0 366,36 6 Tota l Overhea d Tota l Operatin g Ex p @ 97 % Completio n Operatin g lncome/(Loss ) EA S Cycle s a t

97 % Margi n a t

5 % Tota l Economi c Cos t

/ Subsid y Subsid y Pe r

Departur e a t

97 % 416,36 6 7,228,27 2 (4,077,627 ) 3,83 3 361,41 4 4,439,04 1 $1,15 8

## Optio n 2 Ba r Harbo r Standalon e Annua l Statistic s EA S Cycle s (1 4 roun dtrip s / 2 8 segment s t o /

fro m Bosto n pe r

week ) 1,45 6 Estimate dBH B Passenger s 11,50 0 Bloc k 1,77 1 Fligh t 1,26 7 Blk/Fl t Rati o 72 % Avai l Seat s 49,50 4 RPM s 2,254,00 0 ASM S 9,702,78 4 LoadFacto r

23 %

Annua l Profi t

/ (Loss ) Summar y BH B Revenu e 1,483,50 0 Tota l Revenu e 1,483,50 0

Fue l 693,80 3 MX Operation s 1,013,02 7 Fligh t Operation s 539,79 7 Groun dServic e 605,20 0 Landin g Fee s 131,63 0 Ticketin g an dPassenge r

Relate d158,17 4 Aviatio n Insuranc e 14,30 4 Tota l Cas h Cost s 3,155,93 6 Ne t Contributio n B
. O
. (1, 6 72,436 ) Ownershi p 225,00 0 Ne t Contributio n A.O. (1,897,436 ) Marketin g 25,00 0 Othe r Overhea d196,00 1 Tota l Overhea d221,00 1 Tota l Operatin g Ex p @ 97 % Completio n 3,601,93 7 Operatin g Income/(Loss ) (2,118,4 3 7) EA S Cycle s at

97 % 1,41 2 Margi n at 5 % 180,09 7 Total Economi c Cos t

/ Subsidy 2,298,53 3 Subsid y Pe r

Departur e a t

97 % $1,62 7Optio n 1 August a Depar t 7:00a m 10:40a m 4:10p m

10:00a m 1:20p m 12:40p m 4:10p m , M E t o Bosto n Loga n

Weekday s Arriv e Stop s 8:05a m0 1:10p m 5:15p m Saturda y 11:15a m 2:25p m Sunda y 1:45p m 5:15p m 1

0

0 0

0 0 Ba r Harbor , M E t o Bosto n Loga n Weekday s Depar t Arriv e Stop s 6:05a m8:05a m1 11:40a m 4:10p m
9:05a m 1:40p m
11:45a m 4:10p m 1:10p m

5:30p m Saturda y 11:05a m 3:00p m Sunda y 1:45p m 5:30p m 0

0

1 0

1 0 Optio n 2 Ba r Harbor , M E t o Bosto n Loga n Weekday s Depar t Arriv e Stop s 7:00a m8:05a m0 1:40p m3:00p m0

10:05a m 1:40p m 12:30p m 4:00p m Saturda y

11:20a m 3:00p m Sunda y 1:45p m 5:05p m 0

0

0 0 Bosto n Loga n t o Augusta , Weekday s Depar t Arriv e 9:05p m10:20a m 2:35p m 7:20p m

11:50a m 4:15p m 2:35p m 7:20p m 3:45p m

8:25p m Saturda y 1:00p m 5:20p m Sunda y 3:45p m 8:25p m Bosto n Loga n t o Ba r

Harbo r Weekday s Depar t Arriv e 9:05a m11:20a m 2:25p m 7:20p m 12:00p m 4:15p m 2:25p m 7:20p m 3:40p m

9:15p m Saturda y 1:15p m 6:10p m Sunda y 3:40p m 9:15p m

Bosto n Loga n t o Ba r

Harbo r Weekday s Depar t Arriv e 12:00p m1:15p m 7:20p m8:35p m 12:00p m 4:15p m 2:25p m 7:20p m Saturda y

1:15p m 6:10p m Sunda y 3:40p m 8:35p m M E

Stop s 0 0 0

0 0

0 0 , M E Stop s 1 0 1

0 1

0 1

, M E Stop s 0 0

0 0

0 0

### CERTIFICAT E O FSERVIC E

I hereb y certif

y tha t I hav e cause dacop y o f

th e forgoin g Proposal t o Provid e Subsidize d Essential Air

Servic e t o b e serve dthi s 22t h da y o f July , 2010 , upo n eac h o f

th e followin g persons : Denni s DeVany Chief , EA S & Domesti c Analysi s Offic e o f Aviatio n Analysi s Unite dState s Department

o f Transportatio n 40 0 Sevent

h Street , S.W. , Roo m6417 1 Washington , D.C
. 2059 0 Roger Katz Mayo r - Cit y o f August a 1 6 Cony Stree t Augusta , M

E 0433 0 Rut h Evelan d Chai r - Ba r Harbo r Tow n Counci l 9 3 Cottag e Street Ba r Harbor , M

E 0460 9 August aState Airpor

t Manager 7 5 Aurpor t Road Augusta , ME 0433 0 Hancoc k Count y - Ba r Harbo r Airpor t Manager 14 3 Carus o Drive , St

e 1 Trenton , M

E 0460 5