Essential Air Service Provide by Charter Air Transport (CAT docket #DOT-OST ) and Aviation Technologies, Inc. DBA Public Charters (P1)

Transcription

1 Essential Air Service Provide by Charter Air Transport (CAT docket #DOT-OST ) and Aviation Technologies, Inc. DBA Public Charters (P1) Dated: 08/17/2009 Docket DOT-OST ; DOT-OST ; DOT-OST Introduction: CAT is a current Air Taxi Operator with a fleet of five 30 seat Turbo Prop EMB-120 aircraft. CAT also operates aircraft including Hawker Jet, Citation, Beech Jet, and manages King Air- 200 equipment. CAT is an operator that truly provides the most flexibility within it s current fleet and expansion capabilities to operated aircraft and grow with each airport they serve. For the purposes of this proposal we will be identifying the Beech King Air -200 with an airliner conversion (CAT PASS) as the initial type equipment for the EAS communities. While we have the capabilities of operating and have and will consider alternate aircraft like the BAE- 3100/ 3200 (Jet Stream models); At this time; considering the current daily enplanements YTD; CAT and P1 will present the King Air-200 for consideration to the above Docket RFP. The airliner converted King Air -200 is a turbine powered 13 seat aircraft that provides comfort and reliability to each passenger on-board. It is equipped with Pratt and Whitney PT6A turbine engines with decades of experience. The aircraft continues to be a top seller in corporate aviation and with so many aircraft still in operation; there is no short supply of support, spares, or airworthy aircraft to maintain the proposed flight schedules presented for each community. Usually, In the event of scheduled or unscheduled maintenance; one can usually find a local King Air operator on most air fields with adequate back up support for our operations. Since an Air Taxi operator can operate into the same field up to 4x weekly; this expands our opportunity and reliability buy being able to sub-contract the same type aircraft without sacrificing any standard during planned and unplanned maintenance dates. In addition; CAT, has available several additional aircraft within their fleet to support our operations, boasting, that we will supply a 100 flight completion factor; except weather exceptions during the term of contract. P1 is an IATA certified GDS system that interfaces Operator inventory currently to Sabre and Amadeus GDS systems. These systems are commonly used by Travel Agencies worldwide and are the portal of sales for large clearing houses like Travelocity and Expedia. While the origin of P1 was designed for part 380 Public Charters; our technology enables us to distribute seat inventory for operators like CAT; seamlessly through the GDS systems by settling our sales through ARC. (Airline Reporting Company) We commonly file our flight inventory (additionally) through the Public Charter venue as an added means of distribution and security by directing all ticket sale revenue into a DOT certified escrow bank that is bonded and held until flight completion. This added layer is voluntary and in no means limits ticket sales, but actually enhances the distribution and security by both clearing sales into Escrow and being placed into our national distribution contacts with large wholesale clearing houses including Travelocity and Expedia. All flights appear with the information statement operated by Charter Air Transport 1

2 so that the public is ensured whom is the Operating Carrier for the Essential Air Service routes. P1 is a Internet based CRS system that will provide an Internet portal for ticket sales in addition to the GDS sales, coupled with both Travelocity and Expedia. We publish the CAT schedules with OAG and file fares with ATPCO for worldwide distribution and visibility. Incorporated into our CRS system is a Local DCS (Departure Control System) product for managing PNR Data (Passenger Name Record) and a complete baggage and ticketing system for a convenient check-in process. P1 is a certified E-Ticketing with both Sabre and Amadeus; and have plans to implement with Travelport (Worldspan) in the near future. This will enable our inventory to also be picked up by Orbitz and Price Line for additional distribution opportunities. We continue to work with several major airlines for Interline and Ticketing agreement, and are confident that; with our current business practices; that the travel experience will be practical, expeditious, and convenient for each passenger. Aviation Technologies, Inc.; as the Parent of P1, also offers some of the latest security technologies that are used for TSA screening including compliance with Secure Flight and CBP AQQ communication for International APIS transmissions. You can visit our security web-site at The combined partnership between CAT and P1 was designed to fit each market need; providing enhanced ticket sale distribution, along with being able to provide additional aircraft capacities in order to grow with each community we serve. Summary: CAT and P1 would like to face the challenge of providing service to EAS communities, mainly by identifying better, but more condensed schedules that serve a larger part of community traffic for O&D routes. While we continue to work on our Interlining agreement, getting passengers to their final destination conveniently and more efficiently has always been the goal. As an Internet based company; we are able to provide on-site check-in s with any connecting Carrier that permits Internet check-ins as part of their web-site services. Once we get the passengers delivered to the sterile gate areas; they would already have their connecting boarding cards and we would arrange a local transfer of baggage either directly to the gate or through a local baggage arrangement with each carrier. We use a color coded Disney style baggage coding for convenient recognition of interlined baggage both for out bound and inbound flight baggage retrieval. We require that each passenger keep these color coded tags attached to their bags for the duration of their travel and we offer additional bag tags for each passenger s convenience at check-in which are provided as part of the ticket jacket/ boarding card package that each passenger receives. Our aviation philosophy toward interlining is simple how can a connecting carrier NOT receive a passenger or a bag from someone travelling on their airline? We have been encouraged by carriers like Southwest Airlines; that if a passenger is carrying a Southwest Boarding card or has a Southwest ticket, they will be treated like a Southwest passenger. We think this should be true for all major airlines and also adhere that there are several regulations that expect carriers to accommodate interlining traffic for feeder service. One of our Mottos Go with Us so that we can Grow with You! Cat and P1 offer 2x daily service X6 for any EAS route that is up to 150 nautical miles point to pint from the origination city to the destination city. While we recognize that communities want more frequency and larger aircraft; the statistics and history have dictated that these routes need to be revamped and rebuilt to meet the true community need. We offer Prime Time departures and arrivals including an early morning departure and late afternoon departure to optimize both the O&D 2

3 and potential connecting passenger. Our tentative schedules are included in example for DEC, but will be subject to final gate and slot approval for each airport we serve. Our goal is to provide the community service to an airport that will provide the most vantage point for connecting into the National Transportation System at large. Pricing: ADD ON fares typically range for most carriers from local airport to hub at approximately $99 each way. * Note: This does not include the trend in recent surcharges that are imposed at the airport for baggage and convenience for many carriers. ** Note: CAT and P1 collect NO surcharges. Our goal is to provide $49 fares for most EAS communities; exceptions being only that of the higher congested hub airports including Chicago, New York, Los Angeles, St. Louis, and Atlanta. Fares for these airports would range to as high as $69 each way. Add On fares need to be priced moderately so that connecting passenger still receive a value in their travel experience by adding the low price Add On fare to the Thru Fare that they receive from the next connecting Carrier. It is our opinion that EAS subsidy money does two things; one: provides subsidy to help establish a Carrier and Route in a marketplace; and two: lowers your ticket price to be an advantageous Add On fare. These combined scenarios should optimize the travel experience and cost for each passenger. Currently CAT and P1 have been working with ORD and MDW for operational space and gate/slot availability. While we are not limited to operating into these airports; statistical analysis dictates that DEC would benefit with service to either Chicago airport. We understand that other communities may have preference or may rely on service to different hub airports. CAT and P1 will evaluate each city request individually with regard to the economic data that would support service into any hub airport that requests reasonable and due diligent service options for each community. With many EAS communities showing historical data with average daily enplanements of less that 6 passengers; it is difficult for us to offer higher daily frequencies with the larger 30 seat turbo prop aircraft. Remember our Motto, evaluate the various exhibits contained within this Response to service and please do not hesitate to contact Cat or P1 with any questions: Proposals Included: DEC-MDW-DEC, UIN-STL-UIN, MWA-STL-MWA DEC: Requested Subsidy year 1: $1,436,172 Requested Subsidy year 2: $1,394,436 MWA: Requested Subsidy year 1: $1,255,985 Requested Subsidy year 2: $1,224,528 UIN: Requested Subsidy year 1: $1,255,985 Requested Subsidy year 2: $1,224,528 For CAT: For P1: Peter Billman Jim Gallagher Phone: Phone: (EST) Fax: Fax: PBillman@CharterAirTransport.com JG727@aol.com See attached exhibits for schedule and pricing details 3

4 PublicCharters.com Lancaster, PA DOCKET DOT-OST /4 hour segment Non-Stop TurboProp Service Route Block Turbo-prop sevice w 13 seats DEC-MDW* 0.75 Start Date 12/01/ /30/2010 *MDW-DEC 0.75 Dual Pilot Daily Example Schedule Arrive Gateway Depart Aircraft based in Origination City DEC 6:00 AM * ORD may be substituted for MDW 6:45 AM *MDW 9:15 AM 10:00 AM DEC 12:00 PM 12:45 PM *MDW 3:00 PM 3:45 PM DEC Flat Rate fares $ PRO FORMA Pre-Flight Item DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV Year Total Operational weeks Days operated per week Aircraft Departures per week Departures per month Aircraft Block Hours Total Aircraft Block Hours Load Factor 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% Seats Per Flight Passengers Per Flight Average Passenger Fare $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 Total monthly passengers ,288 Passenger ticket revenue $49,846 $49,846 $49,846 $49,846 $49,846 $49,846 $56,966 $56,966 $56,966 $56,966 $56,966 $56, ,872 Less Credit card discount -$1,745 -$1,745 -$1,745 -$1,745 -$1,745 -$1,745 -$1,994 -$1,994 -$1,994 -$1,994 -$1,994 -$1,994 -$22, % -$3,738 -$3,738 -$3,738 -$3,738 -$3,738 -$3,738 -$4,272 -$4,272 -$4,272 -$4,272 -$4,272 -$4,272 -$48,065 Less travel agent commissions -$2,991 -$2,991 -$2,991 -$2,991 -$2,991 -$2,991 -$3,418 -$3,418 -$3,418 -$3,418 -$3,418 -$3,418 -$38,452 Total operating revenues $41,372 $41,372 $41,372 $41,372 $41,372 $41,372 $47,282 $47,282 $47,282 $47,282 $47,282 $47,282 $531,924 DIRECT OPERATING COST Aircraft (ACMI) $82,818 $82,818 $82,818 $82,818 $82,818 $82,818 $82,818 $82,818 $82,818 $82,818 $82,818 $82,818 $993,816 Aircraft fuel $24,381 $24,381 $24,381 $24,381 $24,381 $24,381 $24,381 $24,381 $24,381 $24,381 $24,381 $24,381 $292,572 Aircraft - airport turn expenses $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $433,440 Catering $722 $722 $722 $722 $722 $722 $826 $826 $826 $826 $826 $826 $9,288 Total Direct Operating Cost $144,041 $144,041 $144,041 $144,041 $144,041 $144,041 $144,145 $144,145 $144,145 $144,145 $144,145 $144,145 $1,729,116 Indirect Operating Cost Advertising $1,805 $1,805 $1,805 $1,805 $1,805 $1,805 $2,065 $2,065 $2,065 $2,065 $2,065 $2,065 $23,220 Reservations $14,440 $14,440 $14,440 $14,440 $14,440 $14,440 $16,520 $16,520 $16,520 $16,520 $16,520 $16,520 $185,760 Miscellaneous, $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $30,000 Total Indirect Operating Cost $18,745 $18,745 $18,745 $18,745 $18,745 $18,745 $21,085 $21,085 $21,085 $21,085 $21,085 $21,085 $238,980 TOTAL OPERATING COST $162,786 $162,786 $162,786 $162,786 $162,786 $162,786 $165,230 $165,230 $165,230 $165,230 $165,230 $165,230 $1,968,096 OPERATING PROFIT (LOSS) ($121,414) ($121,414) ($121,414) ($121,414) ($121,414) ($121,414) ($117,948) ($117,948) ($117,948) ($117,948) ($117,948) ($117,948) ($1,436,172) Cumulative P/L $ (121,414) $ (242,828) $ (242,828) $ (242,828) $ (242,828) $ (242,828) $ (239,362) $ (235,896) $ (235,896) $ (235,896) $ (235,896) $ (235,896) Cost per departure $1,577 $1,577 $1,577 $1,577 $1,577 $1,577 $1,601 $1,601 $1,601 $1,601 $1,601 $1,601 Revenue per departure $401 $401 $401 $401 $401 $401 $458 $458 $458 $458 $458 $458 ACMI rate $ 1,070 Destination Airport/ Ground Fees $ 350 Origination Airport/ Parking / Ground Fees $ 350 Fuel burn/hour $ 105 Fuel price/gallon $ 3.00 Advertising per passenger (r/t) $ 3 Credit card discount Percent travel agent sales 60% Block hours each segment 0.75 Catering - per pax $ 1.00 Departures per week (r/t) 18 Reservation cost/segment $ Seats per flight 13

5 3/4 hour segment Non-Stop TurboProp Service Route Block Turbo-porp sevice w 13 seats DEC-MDW* 0.75 Start Date 12/01/ /30/2011 *MDW-DEC 0.75 Dual Pilot Daily Example Schedule Arrive Gateway Depart Aircraft based in Origination City DEC 6:00 AM * ORD may be substituted for MDW 6:45 AM *MDW 9:15 AM 10:00 AM DEC 12:00 PM 12:45 PM *MDW 3:00 PM 3:45 PM DEC Flat Rate fares $ PRO FORMA Pre-Flight Item DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV Year Total Operational weeks Days operated per week Aircraft Departures per week Departures per month Aircraft Block Hours Total Aircraft Block Hours Load Factor 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 70.0% 70.0% 70.0% 70.0% 70.0% 70.0% Seats Per Flight Passengers Per Flight Average Passenger Fare $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 Total monthly passengers ,530 Passenger ticket revenue $56,966 $56,966 $56,966 $56,966 $56,966 $56,966 $64,087 $64,087 $64,087 $64,087 $64,087 $64, ,322 Less Credit card discount -$1,994 -$1,994 -$1,994 -$1,994 -$1,994 -$1,994 -$2,243 -$2,243 -$2,243 -$2,243 -$2,243 -$2,243 -$25, % -$4,272 -$4,272 -$4,272 -$4,272 -$4,272 -$4,272 -$4,807 -$4,807 -$4,807 -$4,807 -$4,807 -$4,807 -$54,474 Less travel agent commissions -$3,418 -$3,418 -$3,418 -$3,418 -$3,418 -$3,418 -$3,845 -$3,845 -$3,845 -$3,845 -$3,845 -$3,845 -$43,579 Total operating revenues $47,282 $47,282 $47,282 $47,282 $47,282 $47,282 $53,192 $53,192 $53,192 $53,192 $53,192 $53,192 $602,847 DIRECT OPERATING COST Aircraft (ACMI) $82,818 $82,818 $82,818 $82,818 $82,818 $82,818 $82,818 $82,818 $82,818 $82,818 $82,818 $82,818 $993,816 Aircraft fuel $24,381 $24,381 $24,381 $24,381 $24,381 $24,381 $24,381 $24,381 $24,381 $24,381 $24,381 $24,381 $292,572 Aircraft - airport turn expenses $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $433,440 Catering $826 $826 $826 $826 $826 $826 $929 $929 $929 $929 $929 $929 $10,530 Total Direct Operating Cost $144,145 $144,145 $144,145 $144,145 $144,145 $144,145 $144,248 $144,248 $144,248 $144,248 $144,248 $144,248 $1,730,358 Indirect Operating Cost Advertising $2,065 $2,065 $2,065 $2,065 $2,065 $2,065 $2,323 $2,323 $2,323 $2,323 $2,323 $2,323 $26,325 Reservations $16,520 $16,520 $16,520 $16,520 $16,520 $16,520 $18,580 $18,580 $18,580 $18,580 $18,580 $18,580 $210,600 Miscellaneous, $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $30,000 Total Indirect Operating Cost $21,085 $21,085 $21,085 $21,085 $21,085 $21,085 $23,403 $23,403 $23,403 $23,403 $23,403 $23,403 $266,925 TOTAL OPERATING COST $165,230 $165,230 $165,230 $165,230 $165,230 $165,230 $167,651 $167,651 $167,651 $167,651 $167,651 $167,651 $1,997,283 OPERATING PROFIT (LOSS) ($117,948) ($117,948) ($117,948) ($117,948) ($117,948) ($117,948) ($114,458) ($114,458) ($114,458) ($114,458) ($114,458) ($114,458) ($1,394,436) Cumulative P/L $ (117,948) $ (235,896) $ (235,896) $ (235,896) $ (235,896) $ (235,896) $ (232,406) $ (228,916) $ (228,916) $ (228,916) $ (228,916) $ (228,916) Cost per departure $1,601 $1,601 $1,601 $1,601 $1,601 $1,601 $1,625 $1,625 $1,625 $1,625 $1,625 $1,625 Revenue per departure $458 $458 $458 $458 $458 $458 $515 $515 $515 $515 $515 $515 ACMI rate $ 1,070 Destination Airport/ Ground Fees $ 350 Origination Airport/ Parking / Ground Fees $ 350 Fuel burn/hour $ 105 Fuel price/gallon $ 3.00 Advertising per passenger (r/t) $ 3 Credit card discount Percent travel agent sales 60% Block hours each segment 0.75 Catering - per pax $ 1.00 Departures per week (r/t) 18 Reservation cost/segment $ Seats per flight 13

6 .7 hour segment Non-Stop Turboprop Service Route Block Turbo-prop sevice w 13 seats UIN-STL 0.7 Start Date 12/01/ /30/2010 STL-UIN 0.7 Dual Pilot Daily Example Schedule Arrive Gateway Depart Aircraft based in Origination City UIN 6:00 AM 6:40 AM STL 10:00 AM 10:40 AM UIN 2:00 PM 2:40 PM STL 5:00 PM 5:40 PM UIN Flat Rate fares $ PRO FORMA Pre-Flight Item DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV Year Total Operational weeks Days operated per week Aircraft Departures per week Departures per month Aircraft Block Hours Total Aircraft Block Hours Load Factor 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% Seats Per Flight Passengers Per Flight Average Passenger Fare $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 Total monthly passengers ,288 Passenger ticket revenue $42,622 $42,622 $42,622 $42,622 $42,622 $42,622 $48,710 $48,710 $48,710 $48,710 $48,710 $48, ,992 Less Credit card discount -$1,492 -$1,492 -$1,492 -$1,492 -$1,492 -$1,492 -$1,705 -$1,705 -$1,705 -$1,705 -$1,705 -$1,705 -$19, % -$3,197 -$3,197 -$3,197 -$3,197 -$3,197 -$3,197 -$3,653 -$3,653 -$3,653 -$3,653 -$3,653 -$3,653 -$41,099 Less travel agent commissions -$2,557 -$2,557 -$2,557 -$2,557 -$2,557 -$2,557 -$2,923 -$2,923 -$2,923 -$2,923 -$2,923 -$2,923 -$32,880 Total operating revenues $35,376 $35,376 $35,376 $35,376 $35,376 $35,376 $40,430 $40,430 $40,430 $40,430 $40,430 $40,430 $454,833 DIRECT OPERATING COST Aircraft (ACMI) $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $795,053 Aircraft fuel $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $234,058 Aircraft - airport turn expenses $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $433,440 Catering $722 $722 $722 $722 $722 $722 $826 $826 $826 $826 $826 $826 $9,288 Total Direct Operating Cost $122,601 $122,601 $122,601 $122,601 $122,601 $122,601 $122,705 $122,705 $122,705 $122,705 $122,705 $122,705 $1,471,838 Indirect Operating Cost Advertising $1,805 $1,805 $1,805 $1,805 $1,805 $1,805 $2,065 $2,065 $2,065 $2,065 $2,065 $2,065 $23,220 Reservations $14,440 $14,440 $14,440 $14,440 $14,440 $14,440 $16,520 $16,520 $16,520 $16,520 $16,520 $16,520 $185,760 Miscellaneous, $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $30,000 Total Indirect Operating Cost $18,745 $18,745 $18,745 $18,745 $18,745 $18,745 $21,085 $21,085 $21,085 $21,085 $21,085 $21,085 $238,980 TOTAL OPERATING COST $141,346 $141,346 $141,346 $141,346 $141,346 $141,346 $143,790 $143,790 $143,790 $143,790 $143,790 $143,790 $1,710,818 OPERATING PROFIT (LOSS) ($105,970) ($105,970) ($105,970) ($105,970) ($105,970) ($105,970) ($103,361) ($103,361) ($103,361) ($103,361) ($103,361) ($103,361) ($1,255,985) Cumulative P/L $ (105,970) $ (211,941) $ (211,941) $ (211,941) $ (211,941) $ (211,941) $ (209,331) $ (206,721) $ (206,721) $ (206,721) $ (206,721) $ (206,721) Cost per departure $1,370 $1,370 $1,370 $1,370 $1,370 $1,370 $1,393 $1,393 $1,393 $1,393 $1,393 $1,393 Revenue per departure $343 $343 $343 $343 $343 $343 $392 $392 $392 $392 $392 $392 ACMI rate $ 1,070 Destination Airport/ Ground Fees $ 350 Origination Airport/ Parking / Ground Fees $ 350 Fuel burn/hour $ 105 Fuel price/gallon $ 3.00 Advertising per passenger (r/t) $ 3 Credit card discount Percent travel agent sales 60% Block hours each segment 0.75 Catering - per pax $ 1.00 Departures per week (r/t) 18 Reservation cost/segment $ Seats per flight 13

7 .7 hour segment Non-Stop TurboProp Service Route Block Turbo-prop sevice w 13 seats UIN-STL 0.7 Start Date 12/01/ /30/2010 STL-UIN 0.7 Dual Pilot Daily Example Schedule Arrive Gateway Depart Aircraft based in Origination City UIN 6:00 AM 6:40 AM STL 10:00 AM 10:40 AM UIN 2:00 PM 2:40 PM STL 5:00 PM 5:40 PM UIN Flat Rate fares $ PRO FORMA Pre-Flight Item DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV Year Total Operational weeks Days operated per week Aircraft Departures per week Departures per month Aircraft Block Hours Total Aircraft Block Hours Load Factor 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 70.0% 70.0% 70.0% 70.0% 70.0% 70.0% Seats Per Flight Passengers Per Flight Average Passenger Fare $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 Total monthly passengers ,530 Passenger ticket revenue $48,710 $48,710 $48,710 $48,710 $48,710 $48,710 $54,799 $54,799 $54,799 $54,799 $54,799 $54, ,058 Less Credit card discount -$1,705 -$1,705 -$1,705 -$1,705 -$1,705 -$1,705 -$1,918 -$1,918 -$1,918 -$1,918 -$1,918 -$1,918 -$21, % -$3,653 -$3,653 -$3,653 -$3,653 -$3,653 -$3,653 -$4,110 -$4,110 -$4,110 -$4,110 -$4,110 -$4,110 -$46,579 Less travel agent commissions -$2,923 -$2,923 -$2,923 -$2,923 -$2,923 -$2,923 -$3,288 -$3,288 -$3,288 -$3,288 -$3,288 -$3,288 -$37,263 Total operating revenues $40,430 $40,430 $40,430 $40,430 $40,430 $40,430 $45,483 $45,483 $45,483 $45,483 $45,483 $45,483 $515,478 DIRECT OPERATING COST Aircraft (ACMI) $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $795,053 Aircraft fuel $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $234,058 Aircraft - airport turn expenses $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $433,440 Catering $826 $826 $826 $826 $826 $826 $929 $929 $929 $929 $929 $929 $10,530 Total Direct Operating Cost $122,705 $122,705 $122,705 $122,705 $122,705 $122,705 $122,808 $122,808 $122,808 $122,808 $122,808 $122,808 $1,473,080 Indirect Operating Cost Advertising $2,065 $2,065 $2,065 $2,065 $2,065 $2,065 $2,323 $2,323 $2,323 $2,323 $2,323 $2,323 $26,325 Reservations $16,520 $16,520 $16,520 $16,520 $16,520 $16,520 $18,580 $18,580 $18,580 $18,580 $18,580 $18,580 $210,600 Miscellaneous, $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $30,000 Total Indirect Operating Cost $21,085 $21,085 $21,085 $21,085 $21,085 $21,085 $23,403 $23,403 $23,403 $23,403 $23,403 $23,403 $266,925 TOTAL OPERATING COST $143,790 $143,790 $143,790 $143,790 $143,790 $143,790 $146,211 $146,211 $146,211 $146,211 $146,211 $146,211 $1,740,005 OPERATING PROFIT (LOSS) ($103,361) ($103,361) ($103,361) ($103,361) ($103,361) ($103,361) ($100,727) ($100,727) ($100,727) ($100,727) ($100,727) ($100,727) ($1,224,528) Cumulative P/L $ (103,361) $ (206,721) $ (206,721) $ (206,721) $ (206,721) $ (206,721) $ (204,088) $ (201,455) $ (201,455) $ (201,455) $ (201,455) $ (201,455) Cost per departure $1,393 $1,393 $1,393 $1,393 $1,393 $1,393 $1,417 $1,417 $1,417 $1,417 $1,417 $1,417 Revenue per departure $392 $392 $392 $392 $392 $392 $441 $441 $441 $441 $441 $441 ACMI rate $ 1,070 Destination Airport/ Ground Fees $ 350 Origination Airport/ Parking / Ground Fees $ 350 Fuel burn/hour $ 105 Fuel price/gallon $ 3.00 Advertising per passenger (r/t) $ 3 Credit card discount Percent travel agent sales 60% Block hours each segment 0.75 Catering - per pax $ 1.00 Departures per week (r/t) 18 Reservation cost/segment $ Seats per flight 13

8 .7 hour segment Non-Stop TurboProp Service Route Block Turbo-prop sevice w 13 seats MWA-STL 0.7 Start Date 12/01/ /30/2010 STL-MWA 0.7 Dual Pilot Daily Example Schedule Arrive Gateway Depart Aircraft based in Origination City MWA 6:00 AM 6:40 AM STL 10:00 AM 10:40 AM MWA 2:00 PM 2:40 PM STL 5:00 PM 5:40 PM MWA Flat Rate fares $ PRO FORMA Pre-Flight Item DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV Year Total Operational weeks Days operated per week Aircraft Departures per week Departures per month Aircraft Block Hours Total Aircraft Block Hours Load Factor 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% Seats Per Flight Passengers Per Flight Average Passenger Fare $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 Total monthly passengers ,288 Passenger ticket revenue $42,622 $42,622 $42,622 $42,622 $42,622 $42,622 $48,710 $48,710 $48,710 $48,710 $48,710 $48, ,992 Less Credit card discount -$1,492 -$1,492 -$1,492 -$1,492 -$1,492 -$1,492 -$1,705 -$1,705 -$1,705 -$1,705 -$1,705 -$1,705 -$19, % -$3,197 -$3,197 -$3,197 -$3,197 -$3,197 -$3,197 -$3,653 -$3,653 -$3,653 -$3,653 -$3,653 -$3,653 -$41,099 Less travel agent commissions -$2,557 -$2,557 -$2,557 -$2,557 -$2,557 -$2,557 -$2,923 -$2,923 -$2,923 -$2,923 -$2,923 -$2,923 -$32,880 Total operating revenues $35,376 $35,376 $35,376 $35,376 $35,376 $35,376 $40,430 $40,430 $40,430 $40,430 $40,430 $40,430 $454,833 DIRECT OPERATING COST Aircraft (ACMI) $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $795,053 Aircraft fuel $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $234,058 Aircraft - airport turn expenses $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $433,440 Catering $722 $722 $722 $722 $722 $722 $826 $826 $826 $826 $826 $826 $9,288 Total Direct Operating Cost $122,601 $122,601 $122,601 $122,601 $122,601 $122,601 $122,705 $122,705 $122,705 $122,705 $122,705 $122,705 $1,471,838 Indirect Operating Cost Advertising $1,805 $1,805 $1,805 $1,805 $1,805 $1,805 $2,065 $2,065 $2,065 $2,065 $2,065 $2,065 $23,220 Reservations $14,440 $14,440 $14,440 $14,440 $14,440 $14,440 $16,520 $16,520 $16,520 $16,520 $16,520 $16,520 $185,760 Miscellaneous, $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $30,000 Total Indirect Operating Cost $18,745 $18,745 $18,745 $18,745 $18,745 $18,745 $21,085 $21,085 $21,085 $21,085 $21,085 $21,085 $238,980 TOTAL OPERATING COST $141,346 $141,346 $141,346 $141,346 $141,346 $141,346 $143,790 $143,790 $143,790 $143,790 $143,790 $143,790 $1,710,818 OPERATING PROFIT (LOSS) ($105,970) ($105,970) ($105,970) ($105,970) ($105,970) ($105,970) ($103,361) ($103,361) ($103,361) ($103,361) ($103,361) ($103,361) ($1,255,985) Cumulative P/L $ (105,970) $ (211,941) $ (211,941) $ (211,941) $ (211,941) $ (211,941) $ (209,331) $ (206,721) $ (206,721) $ (206,721) $ (206,721) $ (206,721) Cost per departure $1,370 $1,370 $1,370 $1,370 $1,370 $1,370 $1,393 $1,393 $1,393 $1,393 $1,393 $1,393 Revenue per departure $343 $343 $343 $343 $343 $343 $392 $392 $392 $392 $392 $392 ACMI rate $ 1,070 Destination Airport/ Ground Fees $ 350 Origination Airport/ Parking / Ground Fees $ 350 Fuel burn/hour $ 105 Fuel price/gallon $ 3.00 Advertising per passenger (r/t) $ 3 Credit card discount Percent travel agent sales 60% Block hours each segment 0.75 Catering - per pax $ 1.00 Departures per week (r/t) 18 Reservation cost/segment $ Seats per flight 13

9 .7 hour segment Non-Stop TurboProp Service Route Block Turbo-prop sevice w 13 seats MWA-STL 0.7 Start Date 12/01/ /30/2010 STL-MWA 0.7 Dual Pilot Daily Example Schedule Arrive Gateway Depart Aircraft based in Origination City MWA 6:00 AM 6:40 AM STL 10:00 AM 10:40 AM MWA 2:00 PM 2:40 PM STL 5:00 PM 5:40 PM MWA Flat Rate fares $ PRO FORMA Pre-Flight Item DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV Year Total Operational weeks Days operated per week Aircraft Departures per week Departures per month Aircraft Block Hours Total Aircraft Block Hours Load Factor 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 70.0% 70.0% 70.0% 70.0% 70.0% 70.0% Seats Per Flight Passengers Per Flight Average Passenger Fare $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 $59.00 Total monthly passengers ,530 Passenger ticket revenue $48,710 $48,710 $48,710 $48,710 $48,710 $48,710 $54,799 $54,799 $54,799 $54,799 $54,799 $54, ,058 Less Credit card discount -$1,705 -$1,705 -$1,705 -$1,705 -$1,705 -$1,705 -$1,918 -$1,918 -$1,918 -$1,918 -$1,918 -$1,918 -$21, % -$3,653 -$3,653 -$3,653 -$3,653 -$3,653 -$3,653 -$4,110 -$4,110 -$4,110 -$4,110 -$4,110 -$4,110 -$46,579 Less travel agent commissions -$2,923 -$2,923 -$2,923 -$2,923 -$2,923 -$2,923 -$3,288 -$3,288 -$3,288 -$3,288 -$3,288 -$3,288 -$37,263 Total operating revenues $40,430 $40,430 $40,430 $40,430 $40,430 $40,430 $45,483 $45,483 $45,483 $45,483 $45,483 $45,483 $515,478 DIRECT OPERATING COST Aircraft (ACMI) $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $66,254 $795,053 Aircraft fuel $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $19,505 $234,058 Aircraft - airport turn expenses $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $36,120 $433,440 Catering $826 $826 $826 $826 $826 $826 $929 $929 $929 $929 $929 $929 $10,530 Total Direct Operating Cost $122,705 $122,705 $122,705 $122,705 $122,705 $122,705 $122,808 $122,808 $122,808 $122,808 $122,808 $122,808 $1,473,080 Indirect Operating Cost Advertising $2,065 $2,065 $2,065 $2,065 $2,065 $2,065 $2,323 $2,323 $2,323 $2,323 $2,323 $2,323 $26,325 Reservations $16,520 $16,520 $16,520 $16,520 $16,520 $16,520 $18,580 $18,580 $18,580 $18,580 $18,580 $18,580 $210,600 Miscellaneous, $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $30,000 Total Indirect Operating Cost $21,085 $21,085 $21,085 $21,085 $21,085 $21,085 $23,403 $23,403 $23,403 $23,403 $23,403 $23,403 $266,925 TOTAL OPERATING COST $143,790 $143,790 $143,790 $143,790 $143,790 $143,790 $146,211 $146,211 $146,211 $146,211 $146,211 $146,211 $1,740,005 OPERATING PROFIT (LOSS) ($103,361) ($103,361) ($103,361) ($103,361) ($103,361) ($103,361) ($100,727) ($100,727) ($100,727) ($100,727) ($100,727) ($100,727) ($1,224,528) Cumulative P/L $ (103,361) $ (206,721) $ (206,721) $ (206,721) $ (206,721) $ (206,721) $ (204,088) $ (201,455) $ (201,455) $ (201,455) $ (201,455) $ (201,455) Cost per departure $1,393 $1,393 $1,393 $1,393 $1,393 $1,393 $1,417 $1,417 $1,417 $1,417 $1,417 $1,417 Revenue per departure $392 $392 $392 $392 $392 $392 $441 $441 $441 $441 $441 $441 ACMI rate $ 1,070 Destination Airport/ Ground Fees $ 350 Origination Airport/ Parking / Ground Fees $ 350 Fuel burn/hour $ 105 Fuel price/gallon $ 3.00 Advertising per passenger (r/t) $ 3 Credit card discount Percent travel agent sales 60% Block hours each segment 0.75 Catering - per pax $ 1.00 Departures per week (r/t) 18 Reservation cost/segment $ Seats per flight 13

10 Charter Air Transport, Inc. Overview October 2008 Air Carrier Certificate #GNOA005I

11 CAT Offers the Best Value With Charter Air Transport (CAT), you travel faster with fewer hassles enjoying the same level of service as the most elite private aircraft customers! CAT delivers exceptional customer service to all travelers!

12 CAT Gives You Faster Door-to-Door Travel Times CAT flies the Embraer EMB-120ER ADVANCED Brasilia Aircraft: 300 mph standard cruise; 345 mph fast cruise speeds Consumes approximately 180 gallons of fuel on a 1-hour flight 5,100 foot average runway take-off requirement CAT s operations of the Brasilia are covered under the TSA s Twelve-Five Standard Security Program, resulting in fewer mandatory security screening burdens CAT can bring travelers in and out of executive airports, greatly reducing door-todoor travel times and eliminating many hassles for passengers and crews, coupled with lower fuel and ground support costs! CAT s Brasilias are Fast and Fuel Efficient!

13 CAT Transports You in Comfortable, Well-Maintained Airliners 30-seat passenger interiors 2006/7 new exterior paint and interior improvements 5 9 Cabin Height Cargo hold can accommodate 222 cubic feet/ 1,200 pounds of baggage Galley for hot + cold beverages and snacks $200,000,000 liability insurance standard Professional Flight Attendant on every trip! CAT s Brasilia Fleet Features Leather Reclining Passenger Seats

14 You Can Have CAT s Aircraft When and Where You Want Them CAT s Brasilia Fleet is Focused on the Northeastern USA: Major operations base at Republic Airport Farmingdale, NY (2 Brasilias at this location on most days) 4 Brasilias in service today Able to quickly expand our fleet to meet growing demand CAT has both forward galley aircraft and aft galley aircraft

15 CAT s Brasilias Can Fly Non-Stop to Many of Your Destinations Less than 1 Hour Flight Time to: Boston, Philadelphia, Washington, D.C. 1.5 Hours Flight Time to: Toronto, Richmond, VA Pittsburgh Farmingdale 2 Hours* Flight Time to: Columbus, OH, Winston-Salem, NC *Flights 2 hours and longer may require load factors below 80% or fuel stops

16 CAT s People Deliver the Best Service CAT has been awarded a GOLD rating by ARG/US! See our profile at: CAT s President/CEO spent 15 years as Chief Pilot for Standard Oil/BP and is an expert in delivering the level of customer service demanded by the executives of giant multi-national corporations. CAT s Director of Operations is the former Chief Pilot of Comair Airlines. CAT s Chief Maintenance Inspector is a former Embraer factory engineer who supported the EMB-120 program in the USA for 15 years. CAT s Brasilia Captains average over 9,100 hours of total flight time and over 1,200 hours time in type! CAT s Director of Charter Sales and Marketing brings great talents and abilities to enhance the business model with ethical standards and excellent customer service.

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18 CAT is Your One-Stop Resource for Aviation Services Business Jet Charter Sales of Scheduled Charter Flights By the Seat (Provided through our affiliate, Destination One, LLC USDOT Public Charter # PC06-088) Flight Department Services and Aircraft Management (Provided by our parent company, Business Aircraft Group, Inc.) CAT also operates business jets such as Cessna Citation II N530P pictured above

19 CAT KING AIR - 200

20 Call Us - We re Ready to Get Started on Your Program! Sales and Administrative Offices: Burke Lakefront Airport (BKL) 2301 North Marginal Road Cleveland, Ohio (voice) (fax) Operations and Maintenance Offices: Orlando-Sanford International Airport (SFB) 100 Starport Way Sanford, Florida (voice) (fax) Charter Air Transport, Inc. - Air Carrier Certificate #GNOA005I - Operations Conducted Under 14 CFR Part 135

21 Aviation technologies, inc. doing business as

22 Publiccharters.com web-site

23 Central reservation system PublicCharters.com was fully funded in house to develop a CRS system that was GDS compliant to manage and bring together the large aircraft route network that has been operating in the charter industry for decades. In March of 2005, IATA awarded PubicCharters.com its own two letter code P1 identifying us as a CRS system. In February of 2008, we were assigned our 3 numeric Accounting Code from IATA. In December of 2008 we were approved for an ARC membership and are officially the first Charter Company in ARC history to be approved to settle ticket sales through the clearing house. We are currently displaying inventory in the Sabre and Amadeus GDS on an e ticketing platform and are being picked up by Expeida.com and are finalizing agreements with Travel ociity.com.

24 For Immediate Release Contact: Allan Mutén, ARC Pioneers New Carrier Participant Category Aviation Technologies, Inc. dba PublicCharters.com to be first Indirect Air Carrier (Public Charter Operator) to sell and settle directly with ARC-accredited travel agents Arlington, December 18, 2008 ARC s Board of Directors this month approved the addition of a supplementary agreement to the Carrier Services Agreement that will allow ticketing and settlement of transactions for Indirect Air Carriers (Public Charter Operators). The first such entity to join ARC as a carrier is PublicCharters.com (P1/351), effective with sales on December 29, PublicCharters.com is based in Northeastern Pennsylvania and currently serves Southern Florida, the Caribbean and select U.S. regional markets. Their business model uses chartered aircraft to serve routes lacking scheduled service, and includes plans to make seats available to the traveling public on corporate jet aircraft. Through ARC, travel agents can further meet niche market demand with new and unique Public Charter Operator content. Inventory can be bundled using segment select functions within various GDSs and with schedules identifying operating carriers and equipment. With scheduled traffic reduced or eliminated to many smaller markets, travel professionals opportunity to serve the customer has been impacted, says Mike Premo, ARC s vice president of marketing, sales, and customer care. However, by adding the Indirect Air Carrier category to the existing selection of more than 170 scheduled carriers, ARC has provided travel agents with a unique opportunity to fill a potential gap with new content, adds Premo.

25 e-ticket platform

26 On Line Reservation System

27 P1 Inventory on expedia.com

28 P1 Inventory on travelocity.com

29 Automated security solutions In March of 2006, we launched a Security Screening automation system called CheckTSA.com as a bi product of CRS Manager. This system allows for the required TSA screening and vetting of passenger, crew and employee names against the Government s No Fly/Selectee lists as well as the collection and remittance of data (APIS) for passengers boarding any International Flights for the US Customs and Boarder Control. In March of 2008, we were given Approval from the US Customs & Boarder Control allowing us to transmit passenger data for APIS under the new AQQ (APIS Quick Query) regulations that all Air Carriers operating flight into and out of the United States are required to follow. In late October of 2008, we became the first company to test with Secure Flight on behalf of two Air Carriers who use CheckTSA.com for their Passenger and Employee Name Vetting against the TSA Watch Lists. This will allow us to transmit on behalf of our customers, their Passenger and Employee data for Watch List vetting under the new Secure Flight Ruling.

30 Checktsa web-site