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 based
San 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

Vieques St. Croix

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 World
Note: Includes Seasonal Service, Source: OAG & Innovata Schedules

Boston Logan has Nonstop Domestic Service 

to 75 Destinations
Note: 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: Bleff
14

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 Spots
Rutland 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 Givea-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 Tourney
19

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

Expenses
22

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!