Proposal to Provide Essential Air Service at El Dorado/Camden, Arkansas Harrison, Arkansas Hot...

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Proposal to Provide Essential Air Service at El Dorado/Camden, Arkansas Harrison, Arkansas Hot Springs, Arkansas Jonesboro, Arkansas Docket DOT-OST-1997-2935 Docket DOT-OST-1997-2935 Docket DOT-OST-1997-2935 Docket DOT-OST-1997-2935 Direct Inquiries Regarding this Proposal to: Shane Storz, CEO Air Choice One Airlines 12300 Old Tesson Road, Suite 200 F, Saint Louis, MO 63128 Phone: (866) 435-9847 Fax: (314) 843-8527 E-mail: [email protected] Multi-Aero Inc. d/b/a Air Choice One

Transcript of Proposal to Provide Essential Air Service at El Dorado/Camden, Arkansas Harrison, Arkansas Hot...

Page 1: Proposal to Provide Essential Air Service at El Dorado/Camden, Arkansas Harrison, Arkansas Hot Springs, Arkansas Jonesboro, Arkansas Docket DOT-OST-1997-2935.

Proposal to Provide Essential Air Service at

El Dorado/Camden, Arkansas Harrison, Arkansas

Hot Springs, Arkansas Jonesboro, Arkansas

Docket DOT-OST-1997-2935 Docket DOT-OST-1997-2935 Docket DOT-OST-1997-2935 Docket DOT-OST-1997-2935

Direct Inquiries Regarding this Proposal to:Shane Storz, CEO

Air Choice One Airlines12300 Old Tesson Road, Suite 200 F, Saint Louis, MO 63128

Phone: (866) 435-9847 Fax: (314) 843-8527 E-mail: [email protected]

Multi-Aero Inc. d/b/a

Air Choice One

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Company Overview

Air Choice One began in 1979. It was originally incorporated as Multi-Aero, a family owned and operated business that has served the public for over 30 years.

In 2008, Air Choice One airlines was granted its first Essential Air Service route. Since that time, Air Choice One has continued to earn multiple Midwest Essential Air Service routes including Burlington, IA, and Decatur, IL. Over time, we have proven ourselves to be a successful carrier with a flight completion record of over 99% and an on-time performance record exceeding 95%.

Some keys to our success include:

•Expanding our Fleet of Aircraft•Outstanding Customer Service with Detailed, Personalized Attention•We are Community Enthusiasts •Easy Booking Online at www.airchoiceone.com and popular consumer websites

05/25/2011

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Flying The Grand Caravan

The Cessna Grand Caravan is one of the largest and safest aircraft in its class. With over 2,000 aircraft flying in 70+ countries, it also ranks as the most popular aircraft in its class. Caravans are responsible for more than 11 million hours of flight time worldwide. Air Choice One airlines is proud to be operating Caravans. Our aircraft are equipped with the latest in avionics technology including dual redundant systems, traffic and terrain avoidance, fully integrated auto pilot, onboard weather, and weather radar.

The Caravan is superior in customer comfort and satisfaction, and has a large cargo pod to keep the cabin free of baggage. In terms of baggage weight, the Caravan can accommodate up to 110 pounds per passenger verses 50 pounds per passenger in many other types of aircraft. The Caravan’s open, spacious passenger cabin was designed with the customer’s comfort and enjoyment in mind.

In its first chapter, Air Choice One selected the Cessna Grand Caravan because it is one of the largest, safest, and most popular aircraft in its class. Over the years we have capitalized on the reliability of the Grand Caravan to deliver service you can count on. Air Choice One’s consistent performance will carry us into the future.

05/25/2011

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We Are Connected

We have never been more visible to the consumer.

GDS VISIBILTYAir Choice One airlines has full global distribution visibility. This means that Air Choice One airlines is available for booking through major consumer travel websites and travel agencies. We can be seen on Apollo, Worldspan, Galileo, Travelport, and Sabre, as well as, on various consumer sites.

Of course, we are also available for online booking through our website www.airchoiceone.com and by speaking with our customer service representatives at 1-866-I-FLY-VIP.

OUR CONNECTION WITH UNITED AIRLINESAir Choice One airlines has a connection with United Airlines. For those Air Choice One passengers whose itineraries start at, or continue to, points beyond, this connection assists as they make the transition to or from United Airlines. Because we understand the convenience such connections offer our passengers we are actively engaged in discussions with other air carriers as well.

05/25/2011

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Hear What They are Saying About Us…

“Last Friday my wife & I flew to Chicago for an overnight get-a-way. Holy cow was it fun! Matt the pilot was very friendly, personable and professional as was everyone in your organization...We loved flying Air Choice One. We are planning another trip to catch the Cubs! Flying Air Choice One to Chicago was so convenient I decided to send an employee to St. Louis this April for a quick one day work shop. Whether Work or Fun…It’s Air Choice One! -Bud Wilcox, Decatur Civic Center General Manager

“Two of your employees went the extra mile in helping me with much needed info on luggage and where your flights landed in St. Louis and what terminal I needed to go to get to my Southwest Airlines flight. Corey (helped me) and he even went as far as calling me back and letting me know that Air Choice One flew into the east terminal at St. Louis and even gave me the gate number, that is hard to find in today’s customer service people, most of them just want a paycheck and could care less about their customers, but two of your well-trained staff went above and beyond the extra mile to help a first time customer who will be back as loyal customer for years to come.”-Dennis Krieger, Burlington Traveler

“I can't say enough good things about your airline. Everyone is just the best, from the reservations dept. to the counter/gate personnel to the pilots, and now to your department. I don't know what I would do if you folks ever left Burlington.” –Jim H., Burlington Traveler

05/25/2011

Page 6: Proposal to Provide Essential Air Service at El Dorado/Camden, Arkansas Harrison, Arkansas Hot Springs, Arkansas Jonesboro, Arkansas Docket DOT-OST-1997-2935.

Options IndexCombined Service

Hot Springs, AR – El Dorado/Camden, AR

OPTION 1, 2 YEAR SERVICE – DFW SERVICECESSNA GRAND CARAVAN

Combined Service – Hot Springs, Arkansas – El Dorado/Camden, Arkansas – Dallas/Fort Worth, International

Cessna Grand Caravan 18 Round Trips Per Week

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OPTION 2, 4 YEAR SERVICE – DFW SERVICECESSNA GRAND CARAVAN

Combined Service – Hot Springs, Arkansas – El Dorado/Camden, Arkansas – Dallas/Fort Worth, International

Cessna Grand Caravan Years 1-4 Discounted 18 Round Trips Per Week

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Options IndexHarrison, Arkansas

OPTION 3, 2 YEAR SERVICE – STL SERVICECESSNA GRAND CARAVAN

Harrison, Arkansas – St. Louis, Lambert International

Cessna Grand Caravan 24 Round Trips Per Week

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OPTION 4, 4 YEAR SERVICE – STL SERVICECESSNA GRAND CARAVAN

Harrison, Arkansas – St. Louis, Lambert International

Cessna Grand Caravan Years 1-4 Discounted 24 Round Trips Per Week

OPTION 1, 2 YEAR SERVICE – STL SERVICECESSNA GRAND CARAVAN

Harrison, Arkansas – St. Louis, Lambert International

Cessna Grand Caravan 18 Round Trips Per Week

OPTION 2, 4 YEAR SERVICE – STL SERVICECESSNA GRAND CARAVAN

Harrison, Arkansas – St. Louis, Lambert International

Cessna Grand Caravan Years 1-4 Discounted 18 Round Trips Per Week

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Options IndexJonesboro, Arkansas

OPTION 1, 2 YEAR SERVICE – STL SERVICECESSNA GRAND CARAVAN

Jonesboro, Arkansas – St. Louis, Lambert International

Cessna Grand Caravan 18 Round Trips Per Week

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OPTION 2, 4 YEAR SERVICE – STL SERVICECESSNA GRAND CARAVAN

Jonesboro, Arkansas – St. Louis, Lambert International

Cessna Grand Caravan Years 1-4 Discounted 18 Round Trips Per Week

Page 9: Proposal to Provide Essential Air Service at El Dorado/Camden, Arkansas Harrison, Arkansas Hot Springs, Arkansas Jonesboro, Arkansas Docket DOT-OST-1997-2935.

Hot Springs, AR – El Dorado/Camden, AR – Cessna Grand Caravan

Option 1: 2 Year Combined ServiceOption 2: 4 Year Combined Service w/Discount

18 Total Round Trips Per Week – Based on 98% Completion Rate

Combined Service – Hot Springs, AR – El Dorado/Camden, AR – Dallas/Fort Worth, International– CaravanOperation Revenues

HOT-ELD-DFW Revenues

$ 1,691,000.00Other Revenues

16,910.00Total Operating Revenues

$ 1,707,910.00

Direct Operating ExpensesFlying Operations

$ 632,362.50Fuel and Oil

1,303,931.48Maintenance

1,644,142.50Aircraft Leases

750,000.00Total Direct

$4,330,436.48Indirect

868,838.20Total Operating Expenses

$5,199,274.68

Operating Loss

$3,491,364.68Profit Element (5% total Oper. Exp.)

259,963.73Compensation Required

$3,751,328.41 Compensation per PAX $197.44Compensation per Departure $1,019.60

# Passengers: 19,000Average Fare: $89.00Departures: 3,680Block Hours: 5,058Revenue Passenger Miles: 4,750,000Available Seat Miles: 8,424,000

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DISCOUNTED SUBSIDY$3,676,301.84/Year$999.21/Departure

DISCOUNT FOR 4-YEAR TERM

Page 10: Proposal to Provide Essential Air Service at El Dorado/Camden, Arkansas Harrison, Arkansas Hot Springs, Arkansas Jonesboro, Arkansas Docket DOT-OST-1997-2935.

Harrison, Arkansas – Cessna Grand Caravan

Option 1: 2 Year ServiceOption 2: 4 Year Service w/Discount

18 Total Round Trips Per Week – Based on 98% Completion Rate

Harrison, Arkansas – St. Louis, Lambert International – CaravanOperation Revenues

HRO-STL Revenues

$ 586,500.00Other Revenues

5,865.00Total Operating Revenues

$ 592,365.00

Direct Operating ExpensesFlying Operations

$ 298,935.00Fuel and Oil

575,104.95Maintenance

436,905.00Aircraft Leases

395,000.00Total Direct

$1,705,944.95Indirect

453,029.30Total Operating Expenses

$2,158,974.25

Operating Loss

$1,566,609.25Profit Element (5% total Oper. Exp.)

107,948.71Compensation Required

$1,674,557.96 Compensation per PAX $197.01Compensation per Departure $910.28

# Passengers: 8,500Average Fare: $69.00Departures: 1,840Block Hours: 2,300Revenue Passenger Miles: 1,963,500Available Seat Miles: 3,814,050

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Representative Schedule

Departure Arrival

HRO 5:30 AM STL 6:45 AM

STL 8:00 AM HRO 9:15 AM

HRO 10:00 AM STL 11:15 AM

STL 12:00 PM HRO 1:15 PM

HRO 2:00 PM STL 3:15 PM

STL 7:30 PM HRO 8:45 PM

DISCOUNTED SUBSIDY$1,641,066.80/Year$892.07/Departure

DISCOUNT FOR 4-YEAR TERM

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Harrison, Arkansas – Cessna Grand Caravan

Option 3: 2 Year ServiceOption 4: 4 Year Service w/Discount

24 Total Round Trips Per Week – Based on 98% Completion Rate

Harrison, Arkansas – St. Louis, Lambert International – CaravanOperation Revenues

HRO-STL Revenues

$ 738,300.00Other Revenues

7,383.00Total Operating Revenues

$ 745,683.00

Direct Operating ExpensesFlying Operations

$ 398,580.00Fuel and Oil

766,806.60Maintenance

582,540.00Aircraft Leases

395,000.00Total Direct

$2,142,926.60Indirect

590,541.66Total Operating Expenses

$2,733,468.26

Operating Loss

$1,987,785.26Profit Element (5% total Oper. Exp.)

136,673.41Compensation Required

$2,124,458.67 Compensation per PAX $198.55Compensation per Departure $866.14

# Passengers: 10,700Average Fare: $69.00Departures: 2,453Block Hours: 3,066Revenue Passenger Miles: 2,471,700Available Seat Miles: 5,085,400

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Representative Schedule

Departure Arrival

HRO 5:30 AM STL 6:45 AM

STL 8:00 AM HRO 9:15 AM

HRO 9:30 AM STL 10:45 AM

STL 11:00 AM HRO 12:15 PM

HRO 12:30 PM STL 1:45 PM

STL 2:00 PM HRO 3:15 PM

HRO 3:30 PM STL 4:45 PM

STL 7:30 PM HRO 8:45 PM

DISCOUNTED SUBSIDY$2,081,969.50/Year$848.82/Departure

DISCOUNT FOR 4-YEAR TERM

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Jonesboro, Arkansas – Cessna Grand Caravan

Option 1: 2 Year ServiceOption 2: 4 Year Service w/Discount

18 Total Round Trips Per Week – Based on 98% Completion Rate

Jonesboro, Arkansas – St. Louis, Lambert International – CaravanOperation Revenues

JBR-STL Revenues

$ 624,100.00Other Revenues

0.00Total Operating Revenues

$ 624,100.00

Direct Operating ExpensesFlying Operations

$ 285,597.90Fuel and Oil

558,502.56Maintenance

465,418.80Aircraft Leases

275,000.00Total Direct

$1,584,519.26Indirect

501,107.00Total Operating Expenses

$2,085,626.26

Operating Loss

$1,461,526.26Profit Element (5% total Oper. Exp.)

104,281.31Compensation Required

$1,565,807.57 Compensation per PAX $198.20Compensation per Departure $851.17

# Passengers: 7,900Average Fare: $79.00Departures: 1,840Block Hours: 2,116Revenue Passenger Miles: 1,603,700Available Seat Miles: 2,979,325

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Representative Schedule

Departure Arrival

JBR 5:30 AM STL 6:40 AM

STL 8:00 AM JBR 9:10 AM

JBR 9:30 AM STL 10:40 AM

STL 12:00 PM JBR 1:10 PM

JBR 2:00 PM STL 3:10 PM

STL 7:30 PM JBR 8:40 PM

DISCOUNTED SUBSIDY$1,534,491.42/Year$834.15/Departure

DISCOUNT FOR 4-YEAR TERM

Page 13: Proposal to Provide Essential Air Service at El Dorado/Camden, Arkansas Harrison, Arkansas Hot Springs, Arkansas Jonesboro, Arkansas Docket DOT-OST-1997-2935.

Thank You

To Whom It May Concern,

Air Choice One airlines greatly values the opportunity to bid on these cities. At Air Choice One we believe that hard work and dedication to the communities in which we serve are what separates us from the others.

Air Choice One works hard to discover the diversified needs of each city partner. Air Choice One continually analyzes our audience and spends time making sure we are doing everything possible to accommodate the individual needs of each city we serve.

On behalf of Air Choice One, I would like to thank you for this opportunity. Air Choice One would be pleased to be the chosen service provider for any city or combination of cities involved in this bid process. We look forward to working with you.

Sincerely,

Shane Storz, CEOAir Choice One

05/25/2011