SOVEREIGN AIR'S PROGRAM IS A WINNER' ::~\FiTivlH JT OF

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1 SOVEREIGN AIR'S PROGRAM IS A WINNER' ::~\FiTivlH JT OF!: f'\:,c2p()~it~t~ftr\t LETS LOOK AT PENINSULA AIRWAYS CONCERNS, '{fol)tr/\ horj,~: 7": I I ;:...<.:!4;, ') l /\ ;!] ') f ', :._ r-\ :t /. "i First: Sovereign Air has a purchase agreement to purchase a company that has an operating Air Carrier certificate. This will take place when Sovereign is selected to provide subsidized air service. Second: Sovereign's proposals are very realistic. Instead of costing millions Sovereign Air will save million. See letter ed to US Senator Baucus 9/22/11. (Attached before Exhibits) If the ticket prices stay the same PennAir could clear around $13,000,000 extra Profit over 2 yrs. From the Bar Harbor, Presque/Houlton and Plattsburgh communities. (See Exhibit P, Q & R) Presque Isle- Presque Isle- Presque/Houlton Maine to Boston: Segment length is 289NM center of airport to center of airport. (See attached satellite photo Exhibit A} Segment Times -Dornier Jet :42.45 min Block time on Proposal :SO min Jet Stream 51 :52.07 min Block time on Proposal :60 min The segment length is the only fixed constant in the proposal to center the cost of operation on. Aircraft maintenance is based on flight time (wheels off the ground to wheels on the ground). Almost all fuel used is from takeoff to landing. Then about 1.5 gal is used per taxi min. Engine and component times are recorded using flight time. Flight and some other operational costs determined by travel time included in each segment. Segment time is calculated using true airspeed (indicated airspeed corrected to true airspeed) in a no wind condition. Those are accurate calculations but to cover the variations that occur on each flight such as weather, an ATC delay or other unforeseen events 15 min of the aircraft operating costs are added,!5 minis added for flights up to 200 nm and 20 min for flights over 200nm, to the calculated segment costs. (See actual round trip flight plans PQI to BOS with winds Exhibits B & C ) 1

2 NOTE: The taxi time from gate to take off and the after landing taxi time to gate are added to flight time making BLOCK TIME. Sense costs are covered in segment operation any extra taxi expense comes from profits at the cost of 1.5 gal of fuel per min. Taxi time at PQI is minimal, (see PQI airport satellite photo Exhibit D) Boston being the 19th busiest AIRPORT in the United States with its terminal located near the active runways will require a little more taxi time, (see Boston airport diagram, Exhibit D & E). This two year proposal includes all expenses both fixed and variable. Extra sections can be added for only the cost of fuel, maintenance burden and landing fees. Dornier Jet at $1825 per leg. (Average 14 Passengers per leg) Jetstream 41 at $1300 per leg, (Average 10 Passengers per leg) Plattsburg- Plattsburg to Boston: Segment length is 174NM center of airport to center of airport. (see attached satellite photo Exhibit F) Segment Times -Dornier Jet :26.2 min. Block time shown on Proposal :30 min. Jet Stream :41 min. Block time shown on Proposal :35 min. The segment length is the only fixed constant in the proposal to center the cost of operation on. Aircraft maintenance is based on flight time (wheels off the ground to wheels on the ground). Almost all fuel used is from takeoff to landing. Then about 1.5 gal is used per taxi min. Engine and component times are recorded using flight time. Flight and some other operational costs determined by travel time included in each segment. Segment time is calculated using true airspeed (indicated airspeed corrected to true airspeed) in a no wind condition. Those are accurate calcuiations but to cover the variations that occur on each flight such as weather, an ATC delay or other unforeseen events 15 min of the aircraft operating costs are added,!5 minis added for flights up to 200 nm and 20 min for flights over 200nm, to the calculated segment costs. (see actual round trip flight plans KBG to BOS with winds Exhibits G & H ) NOTE: The taxi time from gate to take off and the after landing taxi time to gate are added to flight time making BLOCK TIME. Sense costs are covered in segment operation any extra taxi expense comes from profits at the cost of 1.5 gal of fuel per min. Taxi time at PBG is minimal, (see PBG airport satellite photo) Boston being the 19th busiest in the United States with its terminal located near the active runways will require a little more taxi time, (see Boston airport diagram, Exhibits I & J ). This two year proposal includes all expenses both fixed and variable. Extra sections can be added for only the cost of fuel, maintenance burden and landing fees. 2

3 Dornier Jet at $985 per leg. (11 passengers average per leg) Jetstream 41 at $645 per leg. (8 passengers average per leg) Bar Habor- Bar Harbor- Bar Harbor Maine to Boston: Segment length is 174NM center of airport to center of airport. (See attached satellite photo Exhibit K) Segment Times -Dornier Jet :26.10 min Jet Stream 41 :30.6 min Block time on Proposal :30 min Block time on Proposal :35 min The segment length is the only fixed constant in the proposal to center the cost of operation on. Aircraft maintenance is based on flight time (wheels off the ground to wheels on the ground). Almost all fuel used is from takeoff to landing. Then about 1.5 gal is used per taxi min. Engine and component times are recorded using flight time. Flight and some other operational costs determined by travel time included in each segment. Segment time is calculated using true airspeed (indicated airspeed corrected to true airspeed) in a no wind condition. Those are accurate calculations but to cover the variations that occur on each flight such as weather, an ATC delay or other unforeseen events 15 min of the aircraft operating costs are added,!5 minis added for flights up to 200 nm and 20 min for flights over 200nm, to the calculated segment costs. (see actual round trip flight plans BHB to BOS with winds Exhibits l & M ) NOTE: The taxi time from gate to take off and the after landing taxi time to gate are added to flight time making BLOCK TIME. Sense costs are covered in segment operation any extra taxi expense comes from profits at the cost of 1.5 gal of fuel per min. Taxi time at BHB is minimal, (see BHB airport satellite photo) Boston being the 19th busiest in the United States with its terminal located near the active runways will require a little more taxi time, (see Boston airport diagram, Exhibits N & 0). This two year proposal includes all expenses both fixed and variable. Extra sections can be added for only the cost of fuel, maintenance burden and landing fees. Dornier Jet at $985 per leg. (11 passengers average per leg) Jetstream 41 at $645 per leg. (8 passengers average per leg) 3

4 Sovereign Air will not have any problem acquiring interline ticket, baggage and cargo agreements as.well as being a frequent flier mileage programs partner when it is EAS selected Fourth: Sovereign Air has purchase agreements in place for both Dornier 328 Jets and Jetstream 41's with supporting equipment and training. Fifth: Sovereign Air proposals give the Presque Isle/Houlton communities a choice of nonstop or one stop flights giving them more (550 flights per year) than PenAir. Sovereign Air's nonstop Jet service gives the communities 101 more flights a year than PenAir at a less EAS requested funds. Sixth: Sovereign Air handles block time as it should. let us look at PennAIR'S block times. First- PQI to BOS flight planning times PQI-BOS 1:35, 805-PQI 1:07 = 2:42 HRS ROUND TRIP Exhibits (958,5 round trips per year X 2:42 hrs. = 2588hrs fit. Plan. Block time 3,355 hrs.- 2,588 hrs. = 767 block hrs. per year. 767 block hrs. I 1917 flights = 24 min block per flight. At 10m in block average per fit. That leaves 14 min. times 1917 = 26,838 I 60 = 447 hrs. X your operating cost per block hr. ($8,136,408 total cost of operations I 3355 block hrs, = $2,425 block cost per hour. X 447 hrs. = $1,084,046 could be EAS funds not accounted for? That is why Sovereign Air uses the Segment length that never changes but block time does so when you use block time you can fudge and make sure you make money. 4

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