"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 20590 Re: Proposal to Provide Essential Air Service at: KEARNEY, NEBRASKA, DOT-OST-1996-1715 NORTH PLATTE, NEBRASKA, DOT-OST-1999-5173 SCOTTSBLUFF, NEBRASKA, DOT-OST-2003-14535 Dear Mr. DeVany: In response to Order 2010-6-16, 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, 2010. 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,
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 10 1234567 EAR DEN 6:30am-7:40am 11 1234567 DEN EAR 8:40am-9:50am 20 2356 EAR DEN 1O:30amll:40am 21 2356 DEN EAR 12 :30p m-1 :40p m 30 1234567 EAR DEN 5:00pm-6:10pm 31 1234567 DEN EAR 8:00pm-9:10pm Scottsbluff Schedule Fit # Freq From TO Dpt-Arr 101 1234567 BFF DEN 6:30am-7:10am 111 1234567 DEN BFF 8:30am-9:10am 201 2356 BFF DEN 10:30amll:10am 211 2356 DEN BFF 11:30pm-1:10pm 301 1234567 BFF DEN 5:30pm-6:10pm 311 1234567 DEN BFF 8:00pm-8:40pm North Plate Schedule Fit # Freq From TO Dpt-Arr 102 1234567 LBF DEN 6 :30a m-7 :20a m 112 1234567 DEN LBF 8:50am-9:30am 202 2356 LBF DEN 1O:30am11:10am 212 2356 DEN LBF 12:50pm-1:30pm 302 1234567 LBF DEN 6:00pm-6:40pm 312 1234567 DEN LBF 8:20pm-9:00pm
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 19 8.698 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 Rev. @.6 of pax. Rev. % Total Revenue $1,089,855.00 $65,391.00 $1,155,246.00 Aircraft and Hull Insurance Fuel and Oil Flying Operations $220,000.00 $776,217.83 $316,939.44 $222,444.50 Other Direct Costs Maintenance Total Direct Costs Total Indirect Costs $270,754.48 $272,517.14 $1,858,428.90 $685,626.74 Total Operating Expenses $2,544,055.65 Operating Loss $1,388,809.35 Profit @ 5% $127,202.78 Annual Compensation Requirement $1,516,012.13 Com pletion Rate 97% Load Factor 42%
19-$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 10.06 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 Rev. @.6 of pax. Rev. % Total Revenue $1,261,044.00 $75,662.64 $1,336,706.64 Aircraft and Hull Insurance Fuel and Oil Flying Operations Other Direct Costs Maintenance Total Direct Costs Total Indirect Costs $220,000.00 $531,988.95 $217,271.74 $296,395.42 $221,130.07 $1,488,732.18 $580,732.43 Total Operating Expenses $2,069,464.61 Operating Loss $732,757.97 Profit @ 5% $103,473.23 Annual Compensation Requirement $836,231.20 Com pletion Rate 97% Load Factor 42%
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 10.. 39 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 Rev. @.6 of pax. Rev. % Total Revenue $1,490,177.00 $89,410.62 $1,579,587.62 Aircraft and Hull Insurance Fuel and Oil Flying Operations Other Direct Costs Maintenance Total Direct Costs Total Indirect Costs $220,000.00 $1,020,446.72 $416,661.15 $568,537.64 $424,165.69 $2,651,811.20 $1,113,945.15 Total Operating Expenses $3,765,756.35 Operating Loss $2,186,168.73 Profit @ 5% $188,287.82 Annual Compensation Requirement $2,374,456.54 Com pletion Rate 97% Load Factor 54 %
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