Response to Order: Order: 2016-9-4 UNITED STATES OF AMERICA Department Of Transportation DOT-OST-1997-2694 Proposal to Provide EAS at PAGE, ARIZONA OCTOBER 6, 2016
UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. October 6, 2016 Dear Sir or Madam: In response to Order 2016-9-4, Via Air is pleased to submit the attached proposal for EAS service for Page, AZ. Via Airlines is Part 121 Air Carrier Certificate number 4VAA005L with DOT Commuter Air Carrier authorization ( ViaAir ). The company was founded in 1997 and has grown to become a prominent air carrier operating EMB 120 and ERJ-145 aircraft, while maintaining an excellent safety record and one of the highest dispatch rates in the nation. Via Airlines is also the first airline to be certified under the new FAA Part 5 Safety Management System regulations, ensuring the highest level of safety in the aviation industry. The company has earned an ARG/US Gold rating and continuously strives and maintains best in class safety, quality and customer satisfaction while maintaining an on time dispatchability rate better than 99%. Our experienced team understands the unique requirements of on-schedule operation and that being on time is part of our core service. We pride ourselves at being more than just transportation; as such we always go above and beyond as proven in our excellent client satisfaction rate. The proposed subsidy requirements and schedules are provided in the attached exhibits for the communities of service. The costs used to calculate the subsidy are based on our multi-year annual cost analysis. There are two options included in this bid: Option 1- PGA-PHX and Option 2- PGA-DEN. ViaAir hereby certifies that we are in compliance with Department regulations regarding drug- free workplaces, nondiscrimination and with the regulations governing lobbying activities. We understand that upon selection, we will be required to complete the required certifications. We look forward to hearing from you and hopefully provide you with the flight services you need. Sincerely, Irit Vizer President irit@flyviaair.com ViaAir LLC and affiliates Proprietary Information Page 2 of 8
About Via Airlines Via Airlines is Part 121 Air Carrier Certificate number 4VAA005L with DOT Commuter Air Carrier authorization ( ViaAir ). The company was founded in 1997 and has grown to become a prominent air carrier, while maintaining an excellent safety record and one of the highest dispatch rates in the nation. Specializing in group travel for corporate shuttles, sports teams, project shuttles and casino trips, Via Airlines operates a fleet of 50-seat Embraer ERJ-145 jets, 30-seat Embraer EMB-120 Brasilias and VIP business jets allowing us to provide highly personalized, safe, and reliable service. Our aircrafts are positioned in many locations around the U.S. offering the ability to travel cost-effectively, conveniently and in comfort. Above and Beyond We still believe that Air Service is a service and not just means of transportation. Our experienced team understands that client satisfaction and community support are critical to the creation of a successful flight operation. We pride ourselves at being more than just transportation; as such we always go above and beyond as proven in our excellent client Satisfaction rate. Fleet The ERJ-145 Superior performance, higher speed and greater range all contribute to reaching new markets creating more seat miles Most economical at 400-700nm range Used almost exclusively to provide regional service ERJ 145 is ideal to service regional high utilization quick turn markets ViaAir LLC and affiliates Proprietary Information Page 3 of 8
Reservation System ViaAir is utilizing AmeliaRes as its reservation system. AmeliaRes is a complete Airline Reservation, ticketing and Departure Control System allowing our passengers to easily book, ticket, and manage their reservation. Online Travel Agents and Wholesale Travel Companies can book our flights on Sabre, Worldspan, and Apollo. Contracts with Expedia, Hotwire, Travelocity, and Google Flights have been signed and are awaiting activation for this route. Orbitz and Kayak will show visibility by the end of the year. ViaAir is working on establishing its own interline agreements, but could potentially offer an interline solution by developing a relationship with a carrier who has established interline agreements with the relevant legacy carriers. This type of potential relationship could allow passengers to book flights directly to their final destinations. Implementing this type of product would be dependent on legacy carrier s approval for the specific route. ViaAir and the Communities At ViaAir, we work closely with our clients and the communities we serve. This is even more important when providing Essential Air Service where the direct communication between our executive team and the community officials is key. As part of ViaAir s integration with the community, we intend, as allowed by applicable laws, to maximize the use of local vendors by providing preference to local vendors and employees. ViaAir intends to use any local service provider that is able to provide a required service at a similar quality level and at least the same cost as non-local vendors (e.g. catering and ground service, customer support, etc.). Marketing ViaAir plans to promote the air service to the community by utilizing, but not limited to print, radio, TV, online marketing, and sponsoring local events with a minimum investment of $30,000 per year. ViaAir also plans on working with the community to market, educate, and promote the region. ViaAir LLC and affiliates Proprietary Information Page 4 of 8
Exhibit A Sample Schedule Option 1 This is a sample schedule, ViaAir intends to communicate with the community on a desired schedule and evaluate any potential changes to the departure times (also after service start date) as long as it within the FAA and DOT regulations, specifically crew duty day requirements. Schedules and hub options have been discussed with the Airport Director. PGA-PHX Orig Dest Dept Arr Equip Days Stops PGA PHX 9:00 10:00 ERJ-145 Daily (1) Non-Stop PHX PGA 14:00 15:00 ERJ-145 Thurs-Mon (1) Non-Stop PGA PHX 15:45 16:45 ERJ-145 Thurs-Mon (1) Non-Stop PHX PGA 17:30 18:30 ERJ-145 Daily (1) Non-Stop (1) as coordinated with the community, flights might be a one stop legs ViaAir LLC and affiliates Proprietary Information Page 5 of 8
Exhibit B - Financial Information Option 1: PGA-PHX EAS Station PGA Hub PHX Round trips per week 12 Completion Factor 98% Total Passengers 14,676 Total Block Hours 1,199 Total Departures 1,223 Per Ticket revenue to carrier $ 90.00 Passenger Revenue $ 1,320,883 Other Revenue $ 13,209 Total Revenue $ 1,334,092 Crew $ 460,416 Fuel and De-Ice $ 1,660,204 Maintenance $ 1,019,150 Aircraft $ 540,000 Landing and Airport cost $ 935,409 Total Directs $ 4,615,179 Total Indirects $ 461,518 Total Operating $ 5,076,697 Profit @5% $ 253,835 Economic Cost $ 5,330,532 Required Annual Subsidy Rate $ 3,996,440 ViaAir LLC and affiliates Proprietary Information Page 6 of 8
Exhibit C Sample Schedule Option 2 This is a sample schedule, ViaAir intends to communicate with the community on a desired schedule and evaluate any potential changes to the departure times (also after service start date) as long as it within the FAA and DOT regulations, specifically crew duty day requirements. Schedules and hub options have been discussed with the Airport Director. PGA-DEN Orig Dest Dept Arr Equip Days Stops PGA DEN 9:00 10:24 ERJ-145 Daily (1) Non-Stop DEN PGA 14:24 15:48 ERJ-145 Thurs-Mon (1) Non-Stop PGA DEN 16:33 17:57 ERJ-145 Thurs-Mon (1) Non-Stop DEN PGA 18:42 20:06 ERJ-145 Daily (1) Non-Stop (1) as coordinated with the community, flights might be a one stop legs All times are listed as MST ViaAir LLC and affiliates Proprietary Information Page 7 of 8
Exhibit D - Financial Information Option 2: PGA-DEN EAS Station PGA Hub DEN Round trips per week 12 Completion Factor 98% Total Passengers 14,676 Total Block Hours 1,319 Total Departures 1,223 Per Ticket revenue to carrier $ 115.00 Passenger Revenue $ 1,687,795 Other Revenue $ 16,878 Total Revenue $ 1,704,673 Crew $ 506,496 Fuel and De-Ice $ 1,826,363 Maintenance $ 1,121,150 Aircraft $ 540,000 Landing and Airport cost $ 930,409 Total Directs $ 4,924,418 Total Indirects $ 492,442 Total Operating $ 5,416,860 Profit @5% $ 270,843 Economic Cost $ 5,687,703 Required Annual Subsidy Rate $ 3,983,030 ViaAir LLC and affiliates Proprietary Information Page 8 of 8