SAl has been HAZMAT approved and will be working in conjunction with hospitals to expedite various HAZMAT materials that they need to transport.

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1 "r I' '-' :,r-"-:t'-'i"'i, <0, :"",." June 16, 2010 Dennis J. DeVany, Chief EAS & Domestic Analysis Division, X-53 Office of Aviation Analysis Department of Transportation 1200 New Jersey Ave. SE Washington, DC Re: Proposal to Provide Essential Air Service at: KEARNEY, NEBRASKA, DOT-OST NORTH PLATTE, NEBRASKA, DOT-OST SCOTTSBLUFF, NEBRASKA, DOT-OST Dear Mr. DeVany: In response to Order , offers the following proposal: (SAl) is planning to use a one 19-seat Beech 1900 aircraft (3 total) for non-stop service to Denver on each route from KEARNEY, NEBRASKA, NORTH PLATTE, NEBRASKA, and SCOTTSBLUFF, NEBRASKS. Our flights will service only the EAS cities and the DEN Hub. Sovereign Air believes that with excellent baggage handling, proper schedules, inexpensive pricing, a comfortable-quiet- pressurized aircraft, and a recovering economy, the load factors will increase in these markets. SAl will base its aircraft, crews and maintenance personnel, banking and purchase fuel for the first aircraft in KEARNEY and the second aircraft in NORTH PLATTE and the third aircraft in SCOTTSBLUFF. Sovereign AIR Air will keep most of the EAS monies in the local communities. Additional flights will be added as needed to accommodate periods of increased demands. SAl will have baggage and ticket agreements with the major air carriers in Denver by the start of this EAS service. SAl will also have cargo agreements for both domestic and international air freight movements. SAl has been HAZMAT approved and will be working in conjunction with hospitals to expedite various HAZMAT materials that they need to transport. SAl's goal is to work hand-in-hand with the communities to reduce the need for EAS subsidies within the next four to six years. Sovereign Air is currently in the process of acquiring its Scheduled Service Authority and anticipates being able to start this Essential Air Service by September 1, Sovereign Air will be fully integrated into the Global Distribution System (GDS) in conjunction with Worldspan. SAl is not tied to just one airline, allowing Sovereign Air better visibility in the various reservation systems. Passengers will have a broad range of channels through which to purchase tickets,

2 including all airline reservation systems and travel agencies, Orbitz, Priceline, Expedia, ect:. Customers will be able to call our reservation office or visit our website to book flights. Passengers can also purchase tickets and make reservations at our ticket counters. SAl's final schedules will be developed by the City Airport Boards and SAl to reduce layover times in DEN and provide the best possible arrival and departure times for the travelling public. As such, the following schedules will likely be adjusted: Kearne~ Schedule Fit # Freq From TO Dpt-Arr EAR DEN 6:30am-7:40am DEN EAR 8:40am-9:50am EAR DEN 1O:30amll:40am DEN EAR 12 :30p m-1 :40p m EAR DEN 5:00pm-6:10pm DEN EAR 8:00pm-9:10pm Scottsbluff Schedule Fit # Freq From TO Dpt-Arr BFF DEN 6:30am-7:10am DEN BFF 8:30am-9:10am BFF DEN 10:30amll:10am DEN BFF 11:30pm-1:10pm BFF DEN 5:30pm-6:10pm DEN BFF 8:00pm-8:40pm North Plate Schedule Fit # Freq From TO Dpt-Arr LBF DEN 6 :30a m-7 :20a m DEN LBF 8:50am-9:30am LBF DEN 1O:30am11:10am DEN LBF 12:50pm-1:30pm LBF DEN 6:00pm-6:40pm DEN LBF 8:20pm-9:00pm

3 19-5eat Beech 1900 Annual Compensation Requirement for Essential Air Service for North Plate Aircraft Type Available Seats Per Departure Passengers Per Trip 18 Round trips Per Week 19-seats Block Hours 1,617 Departures 1816 Total Passengers Average Fare $69 one way 15,795 Revenue Passenger Miles 3,578,357 Available Seat Miles 7,816,881 Passenger Revenue Other of pax. Rev. % Total Revenue $1,089, $65, $1,155, Aircraft and Hull Insurance Fuel and Oil Flying Operations $220, $776, $316, $222, Other Direct Costs Maintenance Total Direct Costs Total Indirect Costs $270, $272, $1,858, $685, Total Operating Expenses $2,544, Operating Loss $1,388, % $127, Annual Compensation Requirement $1,516, Com pletion Rate 97% Load Factor 42%

4 19-$eat Beech 1900 Annual Compensation Requirement for Essential Air Service for Scottsbluff BFF- DEN Aircraft Type Available Seats Per Departure Passengers Per Trip 19-seat 19 Avg Block Hours Departures 1,108 1,816 Total Passengers Average Fare $69 one way 18,276 Revenue Passenger Miles 2,732,262 Available Seat Miles 5,158,348 Passenger Revenue Other of pax. Rev. % Total Revenue $1,261, $75, $1,336, Aircraft and Hull Insurance Fuel and Oil Flying Operations Other Direct Costs Maintenance Total Direct Costs Total Indirect Costs $220, $531, $217, $296, $221, $1,488, $580, Total Operating Expenses $2,069, Operating Loss $732, % $103, Annual Compensation Requirement $836, Com pletion Rate 97% Load Factor 42%

5 19-5eat Beech 1900 Annual Compensation Requirement for Essential Air Service for Kearney EAR-DEN Aircraft Type Available Seats Per Departure Passengers Per Trip 19-seat 19 Avg Block Hours Departures 2,126 1,816 Total Passengers Average Fare $79 one way 18,863 Revenue Passenger Miles 5,726,807 Available Seat Miles 10,475,414 Passenger Revenue Other of pax. Rev. % Total Revenue $1,490, $89, $1,579, Aircraft and Hull Insurance Fuel and Oil Flying Operations Other Direct Costs Maintenance Total Direct Costs Total Indirect Costs $220, $1,020, $416, $568, $424, $2,651, $1,113, Total Operating Expenses $3,765, Operating Loss $2,186, % $188, Annual Compensation Requirement $2,374, Com pletion Rate 97% Load Factor 54 %

6 Customer safety and service are Priority One with SAL Sovereign Air looks forward to providing Essential Air Service to North Plate, Scottsbluff and Kearney. Sincerely, Robert B. Karns, GM

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