BEFORE THE DEPARTMENT OF TRANSPORTATION … · the ciBes of Cape Girardeau/Sikeston and...

BEFORETHEDEPARTMENTOFTRANSPORTATION

WASHINGTON,D.C.

Essen8alAirServiceat:

CAPEGIRARDEAU/SIKESTON,MISSOURI DOT-OST1996-1559QUINCY,ILLINOIS/HANNIBAL,MISSOURI DOT-OST2003-14492 Under49U.S.C.§41731etseq.

SOUTHERNAIRWAYSEXPRESS

PROPOSALTOPROVIDESUBSIDIZEDESSENTIALAIRSERVICE

ByOrder2017-5-8,theDepartmentrequestedproposalsfromcarriersinterestedinprovidingEssenBalAirServicetoCapeGirardeau/Sikeston,MissouriandQuincy,Illinois/Hannibal,Missouri.PursuanttothatOrder,SouthernAirwaysExpress,LLC(“Southern”)cordiallysubmitsthisproposal.

Correspondencewithregardtothisdocumentshouldbeaddressedto:

R.StanLiVleChiefExecu8veOfficerSouthernAirwaysExpress2525CaffeyStreetHernando,Mississippi38632Telephone:901-672-7820E-Mail:[email protected]

Southernhasadoptedaflexible,community-focusedapproachtoitsproposalsthatnotonlyprovideslow-fareservicetoimportantregionalhubs,butisaccompaniedbyflightschedulesthathavebeentailoredtoprovidemaximumconvenienceandconnecBvity.ItiscriBcaltosuccessfulenplanementsthatciBeshavefullBme-of-daycoverage,withanearlydepartureandalatereturntoaccommodatesame-daybusinesstravelers.Allofourproposalsincludethiscoverage.

SouthernAirwaysExpressherebyoffersaproposaltoprovideservicetoCapeGirardeau/Sikeston,MissouriandQuincy,Illinois/Hannibal,Missouri.Ourproposalisforaperiodoftwoyears.

Southernproposestooperatereliable,low-fareserviceusingourfleetof9-passengerturbopropCessnaCaravanaircra[.Southern’smanagementbelievesthatthismodeliswell-suitedtoservethemarketwithproperly-BmedschedulesandtheabilitytoaccessmulBplehubs.Ourturbineaircra[offerfargreaterpassengercomfortandreliabilitythanolderpistonplanes.

ThisproposalhasbeendesignedtoensureconBnuedhighlevelsofservicereliability.SouthernhasbuiltareputaBonforconsistentreliabilityandhighlevelsofcustomerservice.Wehaveatleastonenewpilotclasseachandeverymonthandhavetakendeliveryofnewaircra[attherateofonepermonthforeachofthepasttwelvemonths–fasterthananycompeBtorinthemarketplace.

FLIGHTSAREDISPLAYEDINTHEMAJORGLOBALDISTRIBUTIONSYSTEMS:

Sabre

Amadeus

Worldspan

Galileo

Travelport

Apollo

TravelSkyChina(Comingin2018)

ANDONTHEMAJORONLINETRAVELAGENCYWEBSITES:

Expedia

Travelocity

Orbitz

Kayak

Priceline

CheapJckets

P LU S , ON :

MarkeBng&DistribuBon

iF lySouthern.com

AND,ANNOUNCINGOURNEWINTERLINEPARTNER:

MARKETING&DISTRIBUTION

Here,Southernhasinvestedconsiderablecapitalinanindustry-leadingtechnologythatfacilitatesconnec9onsbetweenSouthernandallothercarrierswhichpublishtheirschedulesinOAGandtheirfaresinATPCO,includingtheUltraLowCostCarriersthathavebecomeanimportantelementintheUSairlineindustry. Evenwhereinterlineagreementsarenotavailable,suchaswithSouthwest,Spirit,andAllegiant,thistechnologyassistspassengersinmakingconnec9onsto/fromSouthernanddes9na9onsworld-wide.

COMPANYHISTORYANDCULTURE

SouthernAirwayswasbornoutofnecessity.WhenDeltaAirLinesde-hubbedMemphis,avacuuminairtravelwascreatedintheMid-South.Mostofthepopularnon-stopdesBnaBonsthatresidentsofthemetroareahadenjoyedforyearswerenolongeroffered.In2013SoutherntookflightandbecamethepreferredmethodoftravelnotjustforthemassescommuBngtotheFloridaGulfCoast,butalsoforsomeofthearea’smostaffluentbusinesstravelers.Providingaffordable,high-touch,firstclass,charter-styleservicetopassengersthathadgiven-uponshorthaulairtravel(andinsteadturnedtotheautomobile)becamethemodeluponwhichSouthernbuiltitsreputaBon.Inshort,SouthernAirwayshasaproventrackrecordofpufngpeopleonairplanes!

Inearly2016,SouthernAirwaysacquiredSunAirExpressinatransacBonthatcreatedgreaterresourcesforthecombinedcompany.SunAirhaddevelopedanetworkofcommuniBesintheMid-AtlanBcregionwithintheEssenBalAirServiceprogram.Combiningthecompaniesimmediatelyledtounparalleledsynergies.Theresourcesandimprovedaircra[ofSouthern,alongwiththeoperaBonalleadershipofSun,createdanairserviceproviderthatissuccessfulatoperaBngbothEssenBalAirServiceroutesaswellastradiBonalmarket-basedflightsbetweenhigh-densityareasandpopulardesBnaBons.Southernbringsaleadershipmindsetthatisfocusedonbusinessdevelopment,relaBonship-building,communityinvolvement,andpassengersaBsfacBontoaSunAirproductthathasastrongandwell-establishedinfrastructureintheindustry.

TheoperaBonalexcellenceofSunandthecustomer-centricmindsetandsuperiormarkeBngabilityofSouthernhascreatedadynamicnewcompanythatwillbethemodelforEssenBalAirServiceprovidersinthefuture.

UniqueamongEASbiddersinthisregion,SouthernAirwaysdoesnotfocusexclusivelyonsubsidizedflying—itisbutonepartofouroverallairlinebusinessmodel.Inallofourfootprints,weflybothEASandmarket-basedroutes–andthatwouldbetrueinournewMidwestfootprint,aswell.

LinkstoSouthern’sSocialMediaSitesarelistedbelow.

www.facebook.com/iFlySouthernwww.instagram.com/FlySouthernwww.pinterest.com/iFlySouthernwww.twiIer.com/iFlySouthernwww.youtube.com/user/iFlySouthern

ABOUTSOUTHERNAIRWAYSEXPRESS

SouthernAirwaysExpressisaMemphis(Hernando,Mississippi)-basedcommuterairlineservingmarketsinPennsylvania,Virginia,Maryland,WestVirginia,NewYork,Tennessee,Georgia,Mississippi,Arkansas,Texas,andFlorida.

ThatfocusonthepassengerexperiencecanbeseenthroughthecountlesstesBmonialsthatpassengerspostontooursocialmediaaccounts.Withover20,000FacebookfollowersintheMid-Southalone,SouthernhasleverageditsinnovaBvesocialmediapresencetocreateadialoguewithpassengers.ThatdialoguehasledtothehighestlevelsofcustomersaBsfacBonandenthusiasm.InaddiBontouBlizingsocialmediasiteslikeFacebook,Instagram,YouTube,andPinterest,Southernisalsoabig

ThemoooofSouthernAirwaysis“EveryPassenger,EveryFlight,EveryDay.“

proponentoftradiBonalmarkeBngandadverBsing.Fromcustom,professionally-producedradiojinglestonaBonal-broadcastqualitytelevisioncommercials,SoutherniscommioedtocommunitymarkeBngonalllevels

Theairlinehasoperatedbothchartersandscheduledservicewithina14-statefootprintsince2013.ThecompanyisnowthecombinedproductoftheoriginalSouthernAirwaysExpressandtheformerSunAirInternaBonal,havingcombinedoperaBonsin2016.SincethatBme,SouthernhasfocusedonimprovingoperaBons,upgradingtechnology,converBngtoanall-turbinefleet,andexpandingthecommunity-centricandhigh-touchpersonalservicethathasbeenthebackboneofthecompanysinceitsfounding.Today,weserve22ciBeswith106peak-daydepartureson22aircra[flownby80pilots.

CONCLUSION

SouthernAirwaysExpressbelievesthatitsproposalwillprovideanunsurpassedlevelofservicetotheciBesofCapeGirardeau/SikestonandQuincy/HannibalandwillensurethattheyhaveproperaccesstothenaBonalairtransportaBonnetwork,offeringcost-effecBveopBonsthatmeettherequirementsoftheEssenBalAirServiceProgram.

RespecrullySubmioed:June15,2017

______________________R.StanLioleJr.Chairman&ChiefExecuBveOfficerSouthernAirwaysExpress,LLC

.

We F l y To M a ke Yo u r D a y !

CAPEGIRARDEAU/SIKESTON:OpBon“A”

18WeeklyRound-tripstoSTL6WeeklyRound-tripstoBNA5WeeklyRoundtripstoMEM*

Opera8ngRevenuesCGI-STL $310,331CGI-BNA $122,251 ---------------------------------- $432,582

Opera8ngExpenses(STL&BNAOnly)FlyingOperaBons $516,810FuelandIntoPlane $458,651Maintenance $342,625Aircra[ $380,000Indirect $595,115 -----------------------------------

TOTALOPERATINGEXPENSES $2,293,201

OperaBngLoss $1,860,619ProfitElement(5%) $114,660

COMPENSATIONREQUIRED $1,975,279

COMPENSATIONPERPAX $135COMPENSATIONPERDEPARTURE$803

AnnualSeats 26,736

AnnualPassengers 14,594

LoadFactor 55%STL

65%BNA

40%MEM*

Departures 2,458**

BlockHours 2,397**

AverageFare $34**

CompleBonFactor 98.5%

Representa8veSchedule

DEPARTURESFROMCGI

6:35amtoBNA

8:45amtoSTL

12:00pmtoSTL

4:05pmtoSTL

6:35pmtoMEM*

ARRIVALSTOCGI

8:25amfromMEM*

11:35amfromSTL

3:45pmfromSTL

5:55pmfromBNA

6:15pmfromSTL

*Unsubsidized **ExcludesMemphisflights

CAPEGIRARDEAU/SIKESTON:OpBon“B”

24WeeklyRound-tripstoSTL

Opera8ngRevenuesCGI-STL $345,180 ---------------------------------- $345,180

Opera8ngExpenses(BNAOnly)FlyingOperaBons $495,580FuelandIntoPlane $422,492Maintenance $316,416Aircra[ $380,000Indirect $595,115 -----------------------------------





AnnualSeats 22,127


LoadFactor 52%

Departures 2,458

BlockHours 2,212

AverageFare $30



DEPARTURESFROMCGI

7:05am

10:05am

1:30pm

4:45pm

ARRIVALSTOCGI

9:45am

1:05pm

4:25pm

7:00pm

QUINCY/HANNIBAL:OpBon“A”

29WeeklyRound-tripstoSTL7WeeklyRound-tripstoCHI

Opera8ngRevenuesUIN-STL $454,512UIN-CHI $142,596 ---------------------------------- $597,108






AnnualSeats 33,190


LoadFactor 50%STL

65%CHI

Departures 3,687

BlockHours 3,748

AverageFare $34



DEPARTURESFROMUIN

6:05amtoCHI

9:15amtoSTL

11:45pmtoSTL

1:55pmtoSTL

4:00pmtoSTL

7:05pmtoSTL

ARRIVALSTOUIN

8:55amfromSTL

11:25amfromSTL

1:35pmfromSTL

3:40pmfromSTL

6:45pmfromSTL

8:30pmfromCHI

QUINCY/HANNIBAL:OpBon“B”

36WeeklyRound-tripstoSTL

Opera8ngRevenuesUIN-STL $497,850 ---------------------------------- $497,850






AnnualSeats 33,190


LoadFactor 50%

Departures 3,687

BlockHours 3,319

AverageFare $30



DEPARTURESFROMUIN

6:05am

9:15am

11:45am

1:55pm

4:00pm

6:15pm

ARRIVALSTOUIN

8:55am

11:25am

1:35pm

3:40pm

5:55pm

9:30pm

BEFORE THE DEPARTMENT OF TRANSPORTATION … · the ciBes of Cape Girardeau/Sikeston and...

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Transcript of BEFORE THE DEPARTMENT OF TRANSPORTATION … · the ciBes of Cape Girardeau/Sikeston and...