BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

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1 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Essential Air Service at ) ) BRADFORD, PENNSYLVANIA ) Docket OST DUBOIS, PENNSYLVANIA ) Docket OST FRANKLIN/OIL CITY, PENNSYLVANIA ) Docket OST JAMESTOWN, NEW YORK ) Docket OST PARKERSBURG, WEST VIRGINIA/ ) Docket OST MARIETTA, OHIO ) ) Under 49 U.S.C et seq. ) ) SILVER AIRWAYS PROPOSAL TO PROVIDE SUBSIDIZED AIR SERVICE TO THE COMMUNITIES OF BRADFORD, DUBOIS, AND FRANKLIN/OIL CITY, PENNSYLVANIA AS WELL AS JAMESTOWN, NEW YORK AND PARKERSBURG, WEST VIRGINIA/MARIETTA, OHIO Correspondence with regard to this document should be addressed to: Mickey Bowman Vice President Essential Air Service 1100 Lee Wagener Blvd, Suite 201 Ft. Lauderdale, FL Telephone: Fax: mbowman@gosilver.com cordially submits its proposal to provide continuing subsidized air service to the communities of Bradford, DuBois, and Franklin/Oil City, Pennsylvania as well as to the cities of Jamestown, New York and Parkersburg, West Virginia/Marietta, Ohio (hereafter referred to as Parkersburg) to the United Airlines hub at Cleveland Hopkins International Airport. proposal is for a two year period from start of service. proposes to operate flights, under its existing United Airlines codeshare. The recent merger of Continental and United Airlines has created the largest passenger airline in the world and Silver is proud to bring such a world class product to these cities. Most of these communities are benefiting from an economic lift being generated by the development of the Marcellus Shell natural gas field. The combination of these factors should provide for increasing passenger traffic from all of these locations. Cleveland Hopkins International Airport is a United Airlines hub with nearly 200 online daily departures to over 62 cities worldwide. The bank structure at Cleveland is designed to maximize connections and enable a seamless travel experience. Via the United Airlines codeshare passengers will continue to enjoy through ticketing and pricing, online and interline baggage connectivity and exposure throughout the Global Distribution Portals. Additionally passengers would continue to enjoy conveniences such as advanced seat selection and participation in United Airlines Frequent Traveler Program. In compliance with Public Law , proposes to operate these flights using Beech 1900D turboprops that accommodate 19 passengers. The 1900D features additional amenities such as stand up headroom and a pressurized cabin. Additionally all flights will operate under full Part 121 regulations.

One of the hallmarks of the operation is our ability to provide safe and reliable transportation. Toward this end, intends to utilize its regional maintenance base in DuBois, Pennsylvania.

2 One of the hallmarks of the operation is our ability to provide safe and reliable transportation. Toward this end, intends to utilize its regional maintenance base in DuBois, Pennsylvania. This base, established in the fall of 2008, is staffed by some of our airline s most seasoned technicians. Additionally plans to avail itself of a spare aircraft that will be positioned in DuBois as part of this operation. With this spare aircraft we have great flexibility in responding to any operational challenges and can assure these communities receive the level of operational performance they desire. This is an All or Nothing bid with the award of all five cities required. requests that the Department of Transportation and the communities of Bradford, DuBois, Franklin/Oil City, PA as well as Jamestown, NY and Parkersburg, WV/Marietta, OH waive the right to hold-in upon issuance of a 120 notice to terminate service. While we do not foresee this to be an issue and plan on serving these communities for many years to come if selected again, we cannot be operationally constrained and kept in a market indefinitely, without the ability to adapt to the changing marketplace.

On-line United Domestic Destinations Available Via the Cleveland Hub: Albany, NY; Atlanta, GA; Austin, TX; Hartford, CT; Bradford, PA; Boston, MA; Burlington, VT; Buffalo, NY; Baltimore, MD;

3 On-line United Domestic Destinations Available Via the Cleveland Hub: Albany, NY; Atlanta, GA; Austin, TX; Hartford, CT; Bradford, PA; Boston, MA; Burlington, VT; Buffalo, NY; Baltimore, MD; Charlotte, NC; Columbus, OH; Cancun, Mexico; Cincinnati, OH; Dayton, OH; Denver, CO; Dallas, TX; DuBois, PA; Newark, NJ; Erie, PA; Franklin, PA; Flint, MT; Grand Rapids, MI; Green Bay, WI; Greenville-Spartanburg, SC; Houston, TX; Indianapolis, IN; Jacksonville, FL; Jamestown, NY; Las Vegas, NV; Los Angeles, CA; New York LaGuardia, NY; Kansas City, MO; Orlando, FL; Harrisburg, PA; Manchester, NH; Milwaukee, WI; Madison, WI; Minneapolis, MN; New Orleans, LA; Chicago, IL; Philadelphia, PA; Phoenix, AZ; Pittsburgh, PA; Parkersburg, WV; Providence, RI; Portland, ME; Raleigh Durham, NC; Richmond, VA; Rochester, NY; Ft Myers, FL; South Bend, IN; Louisville, KY; Seattle, WA; San Francisco, CA; San Juan, PR; St Louis, MO; Syracuse, NY; Tampa, FL; Montreal, Canada; Toronto, Canada; Washington, DC; Washington Dulles, VA.

4 36 Weekly frequencies between Bradford, PA; Jamestown, NY and Cleveland Hopkins International Airport proposes to operate these flights under its established codeshare relationship with United Airlines. The timing of these flights would be optimized for connections to and from the United Airlines connecting banks in Cleveland. This service constitutes three weekday roundtrips operating in a round robin fashion. Three total roundtrips would be operated over the weekend period as well Sample Flight Schedule FROM TO DEP ARR FLT EQP FREQ STOP STA STA TIME TIME NUM Bradford Cleveland 6:00 am 7:40 am 4023 BE1 X7 1 Bradford Cleveland 12:45 pm 2:20 pm 4024 BE1 7 Only 1 Bradford Cleveland 1:10 pm 2:20 pm 4024 BE1 X67 0 Bradford Cleveland 4:45 pm 6:20 pm 4025 BE1 X6 1 Cleveland Bradford 11:20 am 12:55 pm 4024 BE1 X7 1 Cleveland Bradford 3:25 pm 4:30 pm 4025 BE1 X6 0 Cleveland Bradford 7:25 pm 9:00 pm 4026 BE1 X Jamestown Cleveland 6:40 am 7:40 am 4023 BE1 X7 0 Jamestown Cleveland 12:25 pm 2:20 pm 4024 BE1 X6 1 Jamestown Cleveland 1:25 pm 2:20 pm 4024 BE1 7 Only 0 Jamestown Cleveland 5:25 pm 6:20 pm 4025 BE1 X6 0 Cleveland Jamestown 11:20 am 12:15 pm 4024 BE1 X7 0 Cleveland Jamestown 3:25 pm 5:15 pm 4025 BE1 X6 1 Cleveland Jamestown 7:25 pm 8:20 pm 4026 BE1 X6 0 (Note: This Schedule is for illustrative purposes and may not reflect the final published product) Annualized BFD CLE BFD JHW CLE JHW Stats @98% Aircraft Type B19 B19 B19 Departures 461 1,380 1,380 Block Hours ,418

5 48 Weekly frequencies between DuBois, PA and Cleveland Hopkins International Airport proposes to operate these flights under its established codeshare relationship with United Airlines. The timing of these flights would be optimized for connections to and from the United Airlines connecting banks in Cleveland. This service constitutes four weekday roundtrips with two of those operating in a round robin fashion paired with Franklin/Oil City, PA. Four total roundtrips would be operated over the weekend period as well, again with two of those roundtrips paired with Franklin/Oil City, PA. Sample Flight Schedule FROM TO DEP ARR FLT EQP FREQ STOP STA STA TIME TIME NUM DuBois Cleveland 6:00 am 7:35 am 4014 BE1 X7 1 DuBois Cleveland 10:30 am 11:40 am 4015 BE1 X67 0 DuBois Cleveland 1:30 pm 2:40 pm 4016 BE1 Daily 0 DuBois Cleveland 4:50 pm 6:25 pm 4017 BE1 X6 1 Cleveland DuBois 8:40 am 10:15 am 4015 BE1 X67 1 Cleveland DuBois 12:15 pm 1:20 pm 4016 BE1 X7 0 Cleveland DuBois 3:30 pm 4:35 pm 4017 BE1 Daily 0 Cleveland DuBois 7:30 pm 9:05 pm 4018 BE1 X (Note: This Schedule is for illustrative purposes and may not reflect the final published product)

6 24 Weekly frequencies between Franklin/Oil City, PA and Cleveland Hopkins International Airport proposes to operate these flights under its established codeshare relationship with United Airlines. The timing of these flights would be optimized for connections to and from the United Airlines connecting banks in Cleveland. This service constitutes two weekday roundtrips and operating in an up-line/down-line fashion paired with DuBois, PA. Two total roundtrips would be operated over the weekend period as well. Sample Flight Schedule FROM TO DEP ARR FLT EQP FREQ STOP STA STA TIME TIME NUM Franklin Cleveland 6:45 am 7:35 am 4014 BE1 X7 0 Franklin Cleveland 5:35 pm 6:25 pm 4017 BE1 X6 0 Cleveland Franklin 8:40 am 9:30 am 4015 BE1 X7 0 Cleveland Franklin 7:30 pm 8:20 pm 4018 BE1 X (Note: This Schedule is for illustrative purposes and may not reflect the final published product) Annualized CLE DUJ CLE FKL DUJ FKL Stats @98% Aircraft Type B19 B19 B19 Departures 1,022 1,022 1,022 Block Hours 1,

7 48 Weekly frequencies between Parkersburg, WV and Cleveland Hopkins International Airport proposes to operate these flights under its established codeshare relationship with United Airlines. The timing of these flights would be optimized for connections to and from the United Airlines connecting banks in Cleveland. This service constitutes four weekday roundtrips. Four total roundtrips would be operated over the weekend period as well. Sample Flight Schedule FROM TO DEP ARR FLT EQP FREQ STOP STA STA TIME TIME NUM Parkersburg Cleveland 6:00 am 7:00 am 4001 BE1 X7 0 Parkersburg Cleveland 9:45 am 10:40 am 4002 BE1 X67 0 Parkersburg Cleveland 1:35 pm 2:30 pm 4003 BE1 Daily 0 Parkersburg Cleveland 5:25 pm 6:20 pm 4004 BE1 X6 0 Cleveland Parkersburg 8:35 am 9:30 am 4002 BE1 X67 0 Cleveland Parkersburg 12:25 pm 1:20 pm 4003 BE1 X7 0 Cleveland Parkersburg 4:15 pm 5:10 pm 4004 BE1 Daily 0 Cleveland Parkersburg 9:00 pm 9:55 pm 4005 BE1 X (Note: This Schedule is for illustrative purposes and may not reflect the final published product) Annualized Stats & Assumptions Aircraft Type CLE B19 Departures 2,454 Block Hours 2,279

8 Detailed Cost and Revenue Forecast Assumed 98% Completion All Markets Grd. Total Aircraft Type B19 Departures 8,741 Block Hours 7,419 Revenue Pax Ticket Rev $ 3,582,726 EAS Subsidy Required $ 10,348,117 Total $ 13,930,843 DoT Presented Exp Amounts Fuel $ 3,565,088 Pilot Comp $ 1,099,042 Pilot Training $ 471,018 Crew Travel $ 141,305 Mx A/F & Line $ 1,004,839 Mx Engines $ 1,656,414 Mx Parts & Other $ 926,336 Dist & Other $ 548,684 Station Turns $ 2,462,151 A/C Ownership $ 1,011,640 Promotion $ Fixed Overhead $ 380,952 Total $ 13,267,470 5% Profit Margin $ 663,373

9 In conclusion, believes that this proposal will provide these communities with superior air service options. We feel the passengers will benefit from seamless, codeshare service to the United Airlines hub at the Cleveland Hopkins International Airport. With a stimulatory effect of the recent Continental/United Airlines merger and the economic boon associated with the development of the Marcellus Shale Gas Field, hopes to grow these markets. Silver Airways has proven itself as a dependable Essential Air Service provider and has demonstrated a commitment to work with these communities to address their travel needs. Integrity of service that has been a hallmark of the operation and we look forward to continuing our relationship with all of the fine cities. Respectfully Submitted: June 29, 2012 Mickey Bowman Vice President Essential Air Service

Lower Income Journey to Work Market Share From American Community Survey

Lower Income Journey to Work Market Share From American Community Survey 2006-2010 Table 1: Overall National Data Table 2: Car, Truck or Van Table 3: Transit Table 4: Metrics Table 1 Work Trip Market Share: