Mayaguez (MAZ) Docket DOT-OST

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1 Proposal of Seaborne Virgin Islands, Inc., dba Seaborne Airlines. To provide subsidized Essential Air Service for: Mayaguez (MAZ) Docket DOT-OST Nonstop to/from San Juan International (SJU) January 18, 2011 SJU celebrates the addition of Seaborne Airlines January 13, 2011

2 Company Background Seaborne Airlines is a Part 121 Scheduled Flag Carrier based in St. Croix in the United States Virgin Islands. Serves seven locations in the region: San Juan International (SJU), San Juan Isla Grande (SIG), St. Croix (STX), Christiansted Downtown Seaplane Base (SSB), St. Thomas (STT), Charlotte Amalie Downtown Seaplane Base (SPB), and Vieques (VQS) Offers 60 daily flights carrying approximately 550 guests per day Carried over 204,000 guests in 2010 In business since 1991 safely carrying over 2,500,000 guests Employs over 140 aviation professionals Is the only locally owned and operated US Part 121 carrier in the Caribbean Provides regional airport service at SIG, SJU, STT, STX, and VQS via the Seaborne Airshuttle Provides critical link between St. Croix/St. Thomas downtowns via the Seaborne Seaplane Seaborne seaplane departing Christiansted downtown

3 Aircraft Type Seaborne utilizes six DHC Part 121 equipped turbo prop Twin Otters and has the ability to bring on more aircraft as the market dictates. These twin engine regional aircraft, manufactured by de Havilland of Canada offer up to 19 comfortable seats in air conditioned comfort flown by twin pilot crews. The Twin Otter offers the best operational performance margins of any regional aircraft. (For additional information please see the following additional section.) Service Product Seaborne Twin Otter on Takeoff from San Juan Isla Grande Guest Service Seaborne s great personalized service along with daily flights at times designed to meet the needs of our target markets. All flights are flown with the twin engine and twin pilot Twin Otter under Part 121 flight rules. Seaborne s aircraft are configures to maximize comfort with air conditioning and reduced seating. Several aircraft feature large viewing windows offering excellent sightseeing capability. Freight Service Seaborne offers FastPak Freight service between several locations carrying over 75,000 parcels and freight items each year. This service provides a valuable and efficient alternative to existing shipping options.

4 Seaborne s comfortable 17 passenger air conditioned cabin Target Markets: Seaborne targets several important market segments: Same trip leisure, business, and medical travelers Full week inter-island specialized laborers Inter-island weekend leisure travelers International and stateside mainline carrier connection traffic Inter-island Freight

5 Seaborne Corporate Traveler deplanes with a smile! Great Product Value Seaborne s flights in all markets range from $70 to $125 each way. Seaborne s Corporate Ticket program offers the best values in the markets served, with fully transferable tickets, use on any Seaborne route, and no change fees. Seaplane on the way to St. Croix

6 Simple Product Distribution Seaborne distributes its products via the following avenues: Online booking and GDS capable reservations system Amelia Res Toll free reservations, concierge desk, and ticket counter sales Seaborne s online booking Our Theme Seaborne markets its products to all market segments as Feel Good Flying. The aim of Feel Good Flying is bringing the fun and romance back into the flight portion of our guests trips. This is done by providing a flight that is convenient, fun, personable, and value priced, all in the right size aircraft - not too big and not to small, but perfect for the markets served all provided by some of the best aviation professionals in the business!

7 Seaborne is the only Part 121 Carrier serving TWO locations in San Juan Community Participation Seaborne participates in the communities it serves by donating hundreds of thousands of dollars via gratis and discounted services, public service, fund raising, and participation in charitable events.

8 New Paradigm Network Synergy Seaborne flights are timed to allow excellent connectivity to low cost, international, and major carriers flying into SJU and STT. Flights are also timed to generate commercial tourism within the markets we serve. While Seaborne does not currently interline or code share with any major carriers, our flights, airport locations, and friendly staff are conducive to providing easy connections. As low fare carriers who do not use GDS systems replace traditional mainline carrier lift at SJU, the reliance on traditional interline and code shares has become less necessary with savvy travelers now making the most of their travel budgets by building their own convenient connections and traveling lightly without expensive checked luggage.

9 de Havilland DHC Twin Otter (Fact Sheet) Still Canada's most successful 19-seat commercial aircraft program with more than 800 aircraft built, the Twin Otter is popular for its rugged construction and useful STOL performance. Perhaps the best testimony to the timelessness of the Twin Otter s design is the fact that it remains today the largest-selling 19-passenger commuter airplane in the world. The de Havilland Twin Otter is a highly maneuverable, versatile aircraft that can be flown safely at various speeds from 80 to 160 knots. The Twin Otter is a high winged, un-pressurized, twin engine turbine powered aircraft ideally suited to operate in all conditions and climates. Around the world, in jungles, deserts, mountains, the Arctic, and anywhere where rugged reliability and short-take-off-and-landing are required, you will find the hard working Twin Otter. Adding to that versatility, the Twin Otter can be fitted with wheels, skis or floats. Well liked by operators for the easy maintenance offered by its fixed undercarriage, the Twin Otter s two engine design also offers dependable passenger safety and confidence. The first new-production DHC-6 Series 400 Twin Otter took its initial flight from Viking s final assembly facility in Calgary, Alberta February 19, General Information: Maximum Takeoff Weight: 12,500 lb (5670kg) Maximum Landing Weight: 12,300 lb (5579 kg) Number Of Crew: 1 or 2 Number Of Passengers: 20 Fuel Capacities: Total 378 US Gallons Fuel Capacities: Optional Long Range 89 US Gallons Airframe: Configuration All metal, non pressurized, high-wing monoplane and a construction with fixed tricycle (steerable nose) landing gear

10 de Havilland DHC Twin Otter (Fact Sheet) (cont.) Dimensions: Wing Span 65 ft (19.8 m) Length 51 ft 9 in (15.77m) Cabin Height 9 ft 8 in (2.95m) Tail Height 19 ft 6 in (5.94 m) Cabin Dimensions: Cabin Length 18 ft 5 in (5.61m) Cabin Height 4 ft 11 in (1.50m) Cabin Volume (usable) 384 cu ft (10.87 cu. m.) Cabin Doors (left side) 50 in X 50 in (1.27m X 1.27m) Cabin Door (right side) 30 in X 45.5 in (.76m X 1.16m) Engines: Two, Pratt & Whitney Canada PT6A-27, 620 hp hp (460 kw kw) each Propellers: Two, Hartzell, HC-B3TN-3DY, three bladed reversible pitch, constant speed, fully feathering propellers. Optional 4-blade type and configuration TBA Standard Aircraft Basic Weight: 6881 lb (3121 kg) Performance Summary: Never exceed speed: 170 knots (195 mph (314 km/h) Maximum speed: 170 knots (195 mph (314 km/h) Cruise speed: 150 knots (173 mph (278 km/h) Stall speed: 58 knots (VSO, gross weight, landing configuration) Range: 920 nautical miles (1,050 mi (1,690 km) Service ceiling: 25,000 ft (7,620 m) Rate of climb: 1,600 ft/min (8.1 m/s) Power/mass: hp/lb (6.132 kw/kg)

11 Forecasted Operating Statement (MAZ/SJU) Segment Operating revenue Scheduled passengers Other Total operating revenue Operating expenses Fuel and oil Flight operations - pilots & dispatch Maintenance - mechanics and QC Landing and passenger fees Aircraft - rent, reserve & insurance Indirected expenses Total Operating Expenses Total Operating Profit/(loss) Forecasted profit (5%) Forecasted operating loss $ $645,000 15, , (537) 49 $(587) 312, , ,168 59, , ,792 1,443,821 (783,341) 72,191 $(855,532) $587 $855,532 Required subsidy Operating statistics: Enplanements Available seats Load factor Departures ASM's RSM's Forecast assumptions: Average fare per segment Daily round trips Stage length (statutory miles) Round trip completion rate Annual Segment % 1.0 1, Annual 8,600 24,075 36% 1, ,838, ,868 $ %

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