June 12, 2013 Proposal of Hyannis Air Service, Inc., dba Cape Air to provide subsidized Essential Air Service:



## 3x Daily Non

- Stop to/from Boston’s Logan Airport

Plus an Option for an Incremental 1x Daily to New York City

For:

Hyannis Air Service, Inc., dba Cape Air

Attn: Andrew Bonney, VP Planning, 660 Barnstable Road, Hyannis, MA 02601

andrew.bonney@capeair.com or (508 ) 862

- 9719 

# Rutland, Vermont

DOT Docket : OST 2005

- 21681

# Since starting service at Rutland Southern Vermont

Regional Airport in 2007 Cape Air is proud to have

increased ridership by more than 2.5 times

3,559 4,540 4,379 4312

3,223 1,401 9,639 8,676 10,843 11,671 11,731

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Cape Air

Predecessors Rutland Passengers

Sources: Cape Air Revenue Report, US DOT EAS RFPs and T100

# Cape Air 2013

• Annual revenue over $100M

• Financially stable

• 74 Cessna 402C aircraft

• 37 airports served, 15 in EAS

2

Captain Krista Poppe

Augusta basedSan Juan Map inset not to scale Guam Rota Saipan Micronesia

Caribbean Florida Midwest Northeast

Provincetown

Hyannis

Nantucket

Providence

New Bedford Martha’s Vineyard Boston Augusta

Lebanon Rutland Saranac Lake Ogdensburg Massena

White Plains Albany

Ft. Leonard Wood

Cape Girardeau Marion Quincy Kirksville

St. Louis

Key West Ft. Myers

Mayaguez

St. Croix Vieques Tortola St. Thomas

Anguilla

Nevis 

# Cape Air Routes

June 2013 Owensboro Manhattan Rockland

Bar Harbor

# Cape Air has grown steadily over the last ten years

4 $34.9 $36.6 $35.6 $37.0 $41.1 $52.1 $56.2 $56.8 $71.4 $77.0 $85.4 $99.1 $103.8

$0 $20 $40 $60 $80 $100 $120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*

Cape Air revenue

In millions

# Cape Air is led by a dedicated senior team many of whom

have been with the company more than twenty years

5

Cape Air’s senior leadership team

January 7, 2013

# One of Cape Air’s best features is interline connections

with all of the legacy airlines plus JetBlue and Frontier

6

# At joint cities Cape Air’s connecting destinations

appear on jetblue.com

7

# Itineraries connecting between Cape Air and United are

available on united.com

8

# Access Boston for connections to the world

9 

# Boston Logan: Rutland’s Access to the WorldNote: Includes Seasonal Service, Source: OAG & Innovata Schedules 

# Boston Logan has Nonstop Domestic Service

to 75 DestinationsNote: Includes Seasonal Service, Source: OAG & Innovata Schedules 

# Boston Logan has Nonstop International Service

to 33 Destinations

# Cape Air takes environmental sustainability seriously by

investing in fuel

- saving aircraft technologies and

powering its offices with solar panels

12

# Cape Air proposes an additional service option for Rutland,

3x daily BOS plus 1x daily service to/from NYC via White

Plains modeled on Lebanon’s successful EAS service

• The Boston service at 3x daily retains a

convenient, high

- frequency service pattern for

the local Boston market and connecting

passengers

• The addition of New York City service via White

Plains connects Rutland with the enormous

local market of New York City

• Cape Air provides complimentary ground

transportation between White Plains Airport and

Midtown Manhattan

13 NYC Option Highlights

Image source: Bleff14 At Rutland Airport, skip TSA screening

Fly 1:19 to White Plains

Arrive at our private VIP terminal

Complimentary ground transportation to Manhattan

ensures stress

- free connections

Arrive Midtown at 35th St. and 8th Ave. near Penn Station 

# Cape Air can provide great access to New York City:

Rutland to Midtown Manhattan in just 2 1⁄2 hours!

How it works

# MARKETING Rutland

15

### Print/Online Ads:

Castleton Hockey Signage,

Mountain Times Get

- a

- Ways

Magazine, Vermont Magazine,

New England Business Journal,

Rutland Herald, Manchester

Journal, Yankee Magazine,

Rutland Region Chamber Radio:

Vermont Public Radio

Visitors Guides/Maps:

Vermont Chamber Vacation Guide,

Rutland Chamber Map 

## Traditional Media:

Television:

Comcast Weather Crawl

And Cable TV SpotsRutland Region Chamber of Commerce

Member

Killington Chamber Member

Okemo Valley Chamber Member

Manchester Car Show

Manchester Merriment

Manchester Trade Show

Gay Ski Week in Stowe Vermont

Rutland Region Chamber Business Expo

Ribbon Cutting at Airport for Added

Summer Flights

Clarkson College/Spartan Hockey Give

a

- Way 

## Events & Corporate Sponsorships:

## Non

- Profit Sponsorships/Ticket Give

- a

- Ways: 

# We have donated over $15,000 this year!

Manchester Lion’s Club

Rutland Chamber Business Expo

Killington Chamber Wine Festival

Bennington Autism Task Force

Manchester Chamber Expo

Child Foundation

Rutland Dismas House Auction

Manchester Chamber Annual Meeting

Jay Hathaway Memorial Maple Leaf Half

Marathon

Cocktails Curing Cancer

The Collings Foundation Airport Event

Castleton State College Athletics Rutland Area Farm & Food Link

Neighborhood Connections Auction

Central Vermont Business Expo

College of St. Joseph Auction

Vermont Adaptive

Vermont Special Olympics SOAR After School Program

Rutland United Methodist

Church Silent Auction

Vermont Farmers Food Center

The Little School Silent Auction

Burr & Burton Academy

Fairhaven Rotary Fishing Tourney19 

# To increase local visibility and provide better community

service Cape Air proposes a City Ticket Office in Rutland’s

downtown business district

# PROPOSAL Essential Air Service

20

# Cape Air proposes continued Boston service or continued

Boston service plus NYC service on either a 2

- year term,

or the preferred discounted 4

- year option

21 Option A Option B

3x Boston 3x BOS + 1x HPN

- NYC

Daily RTs 3 4

Pax/Dpt 5.5 5.3

LF 62% 59%

Fare (net) $72 $76

Pax Rev $847,713 $1,134,494 Option A Option B

3x Boston 3x BOS + 1x HPN

- NYC

Fuel $621,814 $892,364

Maintenance $619,355 $891,033

Pilots $164,597 $205,747

Ownership $127,676 $127,676

Stations $307,708 $506,451

Landing Fees $76,136 $85,132

Marketing $46,373 $50,790

General & Admin./Other $176,023 $223,463

Operating expense $2,139,683 $2,982,656

Return of 5% $112,615 $156,982

Economic Expense $2,252,298 $3,139,638

Passenger Revenue $847,713 $1,134,494

Profit ($1,404,585) ($2,005,144)

Subsidy Required $1,404,585 $2,005,144

Per Departure $661 $708

Per Passenger $119 $134

4

- Year Contract Discount $1,360,481 $1,942,183

Per Departure $640 $686 Drivers Expenses22 

# Thank you for the privilege of serving Rutland, Vermont;

we would be honored to be reselected!

 Build on a great relationship!

 Continue successful service 3x daily to/from Boston

 Option for incremental 1x daily NYC service via White Plains Airport

 City Ticket Office in a downtown location

 4

- year contract option for planning and stability and DOT cost savings Proposal highlights



## We look forward to continuing our

successful partnership!23 

# Thank you!