## Proposal to Provide Essential Air Service at
Athens, Georgia

Docket DOT

- OST

- 2002

- 11348

August 15, 2012

Direct Inquiries Regarding this Proposal to:

Shane Storz, CEO Air Choice One Airlines 12300 Old Tesson Road, Suite 200 F, Saint Louis, MO 63128 Phone: (866) 435

- 9847 Fax : (314) 843

- 8527 E

- mail: shane@airchoiceone.com



# Multi

- Aero Inc. d/b/a Air Choice One

# Our Commitment

07/12/2011 Air Choice One is aware of the many challenges facing the Athens community. This proposal will give the best access to the national transportation system for the communities at reasonable prices. We understand the efforts of a dedicated air carrier are critical to having scheduled airline service in the future. Air Choice One is that air carrier and we believe the strategy outlined in our proposal will support and complement airport development efforts. We have proven our strategy works with other EAS communities and we are committed to delivering these same dramatic increases in enplanements and sustaining these numbers over time.

Analyzing the challenges ahead, this proposal allocates substantial resources to support marketing efforts. Our achievements in our other EAS markets demonstrate that our marketing strategies are successful. Through on

- site community outreach, community

- specific advertising, consistent flight schedules, and outstanding customer service we will build consumer recognition in the community and drive passengers back to your airport.

We commit to providing you with outstanding service. We believe our successes in other EAS markets, our analysis, planning, and dedication to the community are the tools needed to overcome the current challenges in Athens and recapture the confidence of local travelers. We will continue working with you throughout our term to provide the next level of air service that will bring us all
success.

# Market Growth Strategy

- Airport Partnerships

Air Choice One will team with your local airport to raise awareness about your communities’ air service and increase enplanements.

• LOCAL AIRPORT INITIATIVES WILL GROW RIDERSHIP

• Provide Financial Support Through Discounted Fuel Costs, Landing Fees, and Rental Agreements

• Educate the Community about the EAS Program and Air Choice One’s Service

• Draft and Distribute Press Releases

• Community Involvement

• Participate in TV and Radio Coverage

• Distribute Information Pertaining to Air Choice One at Local Business Events



### • ATLANTA

- HARTSFIELD INTERNATIONAL AIRPORT (ATL) INITIATIVES

• EAS Communities Receiving Reliable Service to Hub Airports Have Benefited From a Steady Increase in Ridership

• Market Vacation Packages to ATL and Beyond and to Local Communities From ATL

• Air Choice One will Operate from Concourse E

07/12/2011

# Market Growth Strategy

–

Partnering With the Community

07/12/2011 Air Choice One is dedicated to working with your community to reinvigorate the service at your airport and sustain growth that will launch us into the future.

• WE ARE YOUR NEIGHBORS

• Corporate Headquarters in Midwest

• Increase Local Career Opportunities

• WE ARE IN YOUR COMMUNITY

• Routine On

- Site Sales Visits

• Chamber of Commerce Participation and Membership

• STRONG PUBLIC RELATIONS AND MEDIA OUTREACH

• Business Incentive Programs

• Travel Agent Discounts

• Business to Business Communication

• Attendance at Public Events

• WE KEEP YOU INFORMED

• Monthly Airport Board Updates

# Market Growth Strategy

– Marketing Investment

08/15/2012 Air Choice One reinvests in our served communities.

• TRADITIONAL MEDIA

• Radio

- Talk Shows/Commercials

• TV Commercials and Event Coverage

• Print

- Newspaper/Magazines

• Billboards

• Web Based

– E

- Blasts

- Constant Contact

– Monthly E

- Mail Promotions

– City Representation on Our Website

• SOCIAL MEDIA

• Twitter, Facebook, Linked In

• INTERACTIVE MEDIA

• Contests

• You Tube/Videos

• EVENTS AND SPONSORSHIPS

• Local Charitable Support

- March of Dimes, Make

- A

- Wish Foundation, Red Cross, etc.

• Business/Community Support

- Golf Tournaments, Business Luncheons, Air Shows, and more PRINT AD

– CHAMBER GUIDES GIVEAWAYS

– SUNGLASSES BILLBOARDS

PRINT AD

–

CAMPUS FLYERS

GIVEAWAYS

– T

- SHIRTS

# Market Growth Strategy

– Reliability & Growth

• CONSISTENT SERVICE WILL INCREASE RIDERSHIP

• Proven Success in Other EAS Markets

• Builds Passenger Confidence in Carrier

• Dedicated Aircraft for your Airport

– 102% Flight Completion Ratio as Reported by DOT YR 2010

– Spare Aircraft Availability

07/12/2011 75

80 85 90 95 100 105

Am. Eagle Gr. Lakes Sea Port Air Choice Completion %



## Airline Airline Completion Ratios

Works Cited: T

- 100 Segment Report DOT 2010 Calendar Year

# Market Growth Strategy

– Accessibility

08/15/2012 

## • SOLD THROUGH

– Global Distribution Systems

• Sabre , Worldspan , Travelport , etc.

– Consumer Sites

• Expedia, Travelocity, and many more

– Travel Agents

– Web Based Booking: www.airchoiceone.com

– Call Center: Open 7 Days a Week

# Market Growth Strategy

– Pricing

Air Choice One offers the right price for the right ticket at the right time.

We take all things into consideration and enter the market with low fares. We work hard to establish a winning price point through targeted market analysis. We believe consistent pricing builds consumer confidence.

• BUILDING & SUSTAINING RIDERSHIP THROUGH PRICE

• Introductory Fares Peak Interest and Drive Passengers to Air Choice One and Your Airport

• On

- Going Affordable Fares = Full Planes!

• Full Planes Establish the Customer Base Needed to Reduce Future Subsidy Requirements

07/12/2011 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Number of Passengers

Month of Service 

### Air Choice One Ridership Growth EAS Markets 2010

- 2012*

2010 *Numbers Reflect Origin &

# Marketing Growth Strategy

–

Connect To A Great Hub

ATLANTA’S HARTSFIELD

- JACKSON AIRPORT GIVES AN ENDLESS LIST OF CARRIERS

AND 

## CONNECTIONS TO THE WORLD!

10/12/2011 

## Concourse E Gate E37 • Air Choice One will Operate from Concourse E, Gate E37

• More than 150 U.S. Destinations and 80 International Destinations in 50 Countries

• On Average, More than 2,600 Arrivals and Departures Daily

• Averages More than 240,000 Passengers a Day

# Options Index Athens, Georgia

08/15/2012 OPTION 1, 2 YEAR TERM WITH DISCOUNTED 4 YEAR TERM OPTION

– ATL SERVICE

Athens, Georgia

– Atlanta Hartsfield International Airport

Cessna Grand Caravan (or Optional Piper Navajo) 18 Round Trips Per WeekOperation Revenues

AHN

- ATL Revenues $ 418,950 Other Revenues 4,190 Total Operating Revenues $ 423,140

Direct Operating Expenses Flying Operations $ 212,474 Fuel and Oil 313,652 Maintenance 303,534 Aircraft Leases 450,000 Total Direct $1,279,660 Marketing 50,000 Indirect 879,860 Total Operating Expenses $2,209,520

Operating Loss $1,786,380 Profit Element (5% total Oper. Exp.) 110,476 Compensation Required $1,896,856

Compensation per PAX $222 Compensation per Departure $1,031 Athens, Georgia

– Cessna Grand Caravan (or Optional Piper Navajo) Option 1: 2 Year Term with Discounted 4 Year Term Option 18 Total Round Trips Per Week

– Based on 98% Completion Rate 

### Athens, Georgia

– Atlanta Hartsfield International Airport
# Passengers: 8,550 Average Fare: $49.00 Departures: 1,840 Block Hours: 1,012 Revenue Passenger Miles: 2,616,300 Available Seat Miles: 5,052,378

08/15/2012 Estimated Flight Operations Departure Arrival
AHN @ 6:30 AM ATL @ 7:15 AM
ATL @ 10:45 AM AHN @ 11:30 AM
AHN @ 12:45 PM ATL @ 1:30 PM
ATL @ 2:30 PM AHN @ 3:15 PM
AHN @ 4:30 PM ATL @ 5:15 PM
ATL @ 6:45 PM AHN @ 7:30 PM

DISCOUNTED SUBSIDY $1,877,887/Year $1,021/Departure DISCOUNT FOR 4 YEAR TERM

# A WINNING CHOICE!

08/15/2012 

# We Look Forward to Serving You! • Successful Pricing Strategy

• Community Support & Involvement

• Proven Reliability

• Outstanding Completion Ratio of 102%

• Successful Marketing Campaigns

• We Cater to Community and Business Needs