sovereign ..air, inc. - airlineinfo · sovereign ..air, inc. july 1, 2009 dennis j. devany, chief...

Sovereign ..Air, Inc.

July 1, 2009

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:

Dodge City, KS Garden City, KS Great Bend, KS Hays, KS Liberal, KS

Dear Mr. DeVany:

DOT -OST-1998-3502 DOT-OST -1998-3503 DOT-OST -1998-3496 DOT -OST -1998-3497 DOT -OST -1998-3498

In response to Order 2009-5-18, Sovereign Air, Inc. offers the following proposal:

Sovereign Air will base and maintain the proposed aircraft in first city listed in each of the routes defined

below, along with the associated crews and maintenance personnel. Most of the money from the

Essential Air Service operation will stay in the communities. We estimate the creation of more than

thirty-six (36) jobs in the various cities to support th is service. We will use the Out Stations for fueling,

deicing and ground handling. Eastbound travelers in Liberal, Great Bend and Hays can connect to

Kansas City if desired.

The following schedules will be adjusted in the best interest of passengers travelling to and from the

Hub cities from local communities. Should the daily enplanements warrant, we will add extra flights at

no additional subsidy. Sovereign Air will connect with all major air carriers, as well as discount carriers.

Because of Sovereign Air's On Demand operations and planned maintenance and training base in Devils Lake, NO, back-up aircraft will be available at all times. Sovereign Air will have ticketing and baggage agreements with large and discount carriers at Denver and Kansas City.

Sovereign Air is proposing the aircraft for the exclusive use (no up-line or down-line service) of the

proposed EAS routes. Our flights service only EAS cities and the indicated Hubs, so that more seats are

actually available for the listed communities. Sovereign Air believes that with good schedules, proper

pricing and a recovering economy, the load factors will likely increase in these markets.

Sovereign Air is currently in the process of acquiring our Scheduled Service Authority and anticipate

being able to start this Essential Air Service on October 1.

Sovereign Air will be fully integrated into the Global Distribution System (GDS). We are 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. 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.

Sovereign Air is offering the extremely reliable BAE Jetstream 32 with comfortable, roomy seats. The cabin is pressurized, has stand-up room, and is restroom equipped . We offer two pilot crews, convenient schedules, and affordable fares at a reasonable subsidy request. Sovereign Air will offer counter-to-counter package and cargo service, and HAZMAT and larger cargo services through a separate cargo facility. We will also offer an integrated cargo pick-up and delivery service in each of the cities. Sovereign Air's low overhead and debt levels reduce the burden for the subsidy requirements .

Sovereign Air looks forward to providing the above proposed Essential Air Service to Chisholm/Hibbing.

Sincerely,

Jon Payne, CFO

Sovereign Air, Inc.

Sovereign Air proposes the following schedules:

LBL-GCK-DEN

Depart Arrive Depart Arrive Depart Arrive Depart Arrive

LBL GCK GCK DEN DEN GCK GCK LBL Excluding

4rt per 6:30 6:50 7:00 8:00 8:30 9:30 9:40 10:00

weekday 10:30 10:50 11:00 12:00 12:30 13:30 13:40 14:00 /Sat, /Sun

14:30 14:50 15:00 16:00 16:30 17:30 17:40 18:00 /Sat, /Sun

18:30 18:50 19:00 20:00 20:30 21:30 21:40 22:00

DDC-HYS-DEN


DDC HYS HYS DEN DEN HYS HYS DDC

2rt per 6:00 6:30 6:40 7:50 8:15 9:20 9:30 10:00

weekday 15:00 15:30 15:40 16:50 17:15 18:20 18:30 19:00

GDB-HYS-DEN


GDB HYS HYS DEN DEN HYS HYS GDB

2rt per 9:30 10:00 10:10 11:20 11:40 12:50 13:00 13:30

weekday 17:30 18:00 18:10 19:20 19:40 20:50 21:00 21:30

DDC-GCK-MCI


DDC GCK GCK MCI MCI GCK GCK DDC

2rt per 6:00 6:20 6:30 7:50 9:00 10:20 10:30 10:50

weekday 16:30 16:50 17:00 18:20 19:00 20:20 20:30 20:50

Sovereign Air, Inc. Annual Compensation Requirement for Essential Air Service for

LBL-GCK-DEI\J

Aircraft Type Available Seats Per Departure Passengers Per Trip

Block Hours

Departures

Total Passengers

Average Fare

Revenue Passenger Miles Available Seat Miles

Passenger Revenue Other Rev. @ .6 of pax. Rev. % Total Revenue

Aircraft and Hull Insurance

Fuel and Oil Flying Operations Other Direct Costs

Maintenance Total Direct

Costs

Total Indirect Costs

Total Operating Expenses

Operating Loss

Profit @ 5%

Subsidy per leg Load Factor

(LBL-$120, GCK-$11 0)

Annual Compensation Requirement

Monthly Compensation Requirement

4rt per weekday, 2rt Sat and 2rt Sun

BAE Jetstream 32

19

9.3

3,067

2,421

22,561

$115.00

7,057,081

14,389,200

$2,481,710.00

$14,890.26

$2,496,600.26

$40,000.00

$1,349,370.88 $318,942 .21

$1,024,138.75

$337,342.72

$3,069,794.56

$822,511. 71

$3,892,306.27

$1,395,706.01

$194,615.31

$1,590,321.32

$132,526.78

$656 .85 49%


DDC-HYS-DEN


Block Hours

Departures

Total Passengers

Average Fare


Passenger Revenue

Other Rev. @ .6 of pax. Rev. %

Total Revenue


Fuel and Oil

Flying Operations Other Direct Costs


Costs



Operating Loss

Profit @ 5%


(DDC-$120, HYS-$115)




BAE Jetstream 32

19

9.2

2,118

1,412

12,991

$117.50

4,935,870

10,195,877

$1,428,955.00

$8,573.73 $1,437,528.73

$40,000.00

$932,131.20 $220,321.92

$815,545.81

$233,032.80

$2,241,031. 73

$759,165.67

$3,000,197.40

$1,562,668.67

$150,009.87

$1,712,678.54

$142,723.21

$1,212.67 48%


GBD-HYS-DEN


Block Hours

Departures

Total Passengers

Average Fare


Passenger Revenue

Other Rev. @ .6 of pax. Rev. % Total Revenue




Costs



Operating Loss

Profit @ 5%


(GDB-$120. HYS-$115)




BAE Jetstream 32 19

6.8

1,907

1,412

9,571

$117.50

3,229,953

9,056,247

$1,100,607.50

$6,603.65 $1,107,211 .15

$40,000.00

$838,918.08 $198,289.73 $762,371.97

$209,729.52

$2,049,309.29

$752,466.10

$2.801,775.40

$1 ,694,564.25

$140,088.77

$1,834,653.02

$152,887.75

$1,299.03 36%


DDC-GCK-MCI


Block Hours

Departures

Total Passengers

Average Fare


Passenger Revenue

Other Rev. @ .6 of pax. Rev. % Total Revenue




Costs



Operating Loss

Profit @ 5%


(DDC-$110, GCK-$102)




BAE Jetstream 32 19

5.0

2,118

1,412

7,030

$106.00

2,674,191

10,207,604

$738,150.00

$4,428.90

$742,578.90

$40,000.00

$815,614.80 $220,321.92 $815,545.81

$233,032 .80

$2,124,515.33

$683,984.63

$2,808,499.97

$2,065,921.07

$140,425.00

$2,206,346.06

$183,862.17

$1,562.21 26%

sovereign ..air, inc. - airlineinfo · sovereign ..air, inc. july 1, 2009 dennis j. devany, chief...

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