BEFORE THE • • ! U.S. DEPARTl\'IENT OF TRAl~SPORTATION

OFFICE OF THE SECRETARY

Essential Air Service at

MCN 1\'IACON, GEORGIA

) ) ) ) )

under49 U.S.C. 41731 et seq. )

WASHINGTON, D.C. ·:•1J? 1:;,:/f. ?b

e.Z!f;; 11 Docket DOT-OST-2007-~

PROPOSAL OF AMERICAN AVIATION GROUP, INC. d/b/a TWIN AIR CALYPSO TO PROVIDE ESSENTIAL AIR SERVICE AT MCN MACON, GEORGIA

Communications with respect to this document should be sent to:

Clayton I. Gamber President Twin Air Calypso 498 S. 34th Street Ft. Lauderdale, Florida 33315 . .. ':/.'.~.-·:·:', .. :: .. -·· .

June 18,2012

George M. Brown, Chairman/CEO American Aviation Group, Inc., d/b/a Twin Air Calypso

317 Eagle Ridge Road, Macon, Georgia 31216 wii<:me@yahoo.<;om

Tel: 478-361-4861 Fax: 478-788-8752

Perse

.,

Essential Air Service at

MCN MACON, GEORGIA

. .. B,E~ORE THE . . .. _ U.S. DEPARTI\-IENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

) ) ) ) )

Docket DOT-OST-2007-29671

under49 U.S.C. 41731 et seq. )

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PROPOSAL OF AMERICAN AVIATION GROUP, INC. d/b/a TWIN.AIR CALYPSO TO PROVIDE ESSENTIAL AIR SERVICE AT MCN MACON, GEORGIA

American Aviation Group, Inc. d/b/a Twin Air Calpyso submits the following proposal to provide Essential

Air Service (EAS) to MCN Macon, Georgia. This proposal is submitted in response to-order 2012-5-25,

Served on May 24, 2012.

American Aviation group make the following statements:

...... _ .. L .• \merican Aviation Group, .Inc. was incorporated on November 02; ~WO/i, in the stale of Georgia,

expressly l(>r the acquisition of Twin Air Calypso Airline and its Ft. Lauderdale, Florida

operations (MAMCO). Twin Air Calypso, as the Hying arm of American Aviation Group, will

usc its operating llect of seven, R passenger planes lo maintain its current routes while American

Aviation Group will expand operations lo include service from :\lacon (:\ICN), GA to the

Following locations:

A ,\tlanla (ATL), GA ,l. Kissimmee (ISM) A Ft. Lauderdale, FL ~l. \Vashington (lAD), D.C. ~l. :\Iississippi Gulf Coast areas.

'2. . \mcrican Aviation Group seeks to lake advanlai{C of the undcrscrvcd \lacon, G,\ markcl while

. ,.

... ke~pi_ng th~. pl<~~le.s i~1 -~.l~a.~ntqlan_ce rotation thro\tg_h ths. I,"L Lau(\sr~l.~~lc IJlaintcn;m~c lit_cility ' ·.• . . t •. . - •. ~. . •' . •. ·~ . ; ~ . . ' • •

·. (lVIAMCO)·. ··' T'his will be . ;~cco;nplished, in part, by the immedi~tte additi<;n. ol" two (2) 1.9-

. passenger/freight airplanes, and within 12 months, the secondary addition of two (2) ::H>­

passenger/freight airplanes. Over the next live years, Americ;in Aviati(m's goal is to convert the

lll<\iority of the Twin Air Calypso Airline 11cet to a standardized thirty-passenger airplane (ex.

Embraer 120 Brasilia, Saah iHO), while phasing out the current four 0) Cessna l02s, and

maintaining the three (::3) Nav<\io's for private charter purposes.

3. American Aviation Group, Inc. operating plan will enable Twin Air Calypso to provide a total of

one hundred fourteen seats per day (to ATL) in each direction spread over six departures.

4. The annual subsidy rate of $1,386,306 outlined in order 2012-5-25 served on May 24, 2012 will

provide a measure of financial support as this operation is being implemented but in no way ' . ..

does this amount define the financial potenthil of the Middle Georgia Market (see Market and

Marketing Plan in this document). American Aviation Group, Inc. and Twin Air Calypso will

have as one of its goals to reduce and or eliminate the need for this subsidy.

5. Twin Air Calypso has an ol.ttstanding history of providing aircraft service and aircraft ·

maintenance to the Ft. Lauderdale, Florida community. In conjunction with this proposal, Twin

Air Calypso is making application to the FAA for authorization to fly and service the 19 and 30

passenger BAE airplanes.

6. The following exhibits are appended to this proposal:

Attachment 1: Annual Subsidy Requirements for Essential air Service at 1\'ICN

Attachment 2: Proposed Operating Schedule for MCN

Attachment 3: American Aviation Group, Inc. Market and 1\'Iarketing Plan for 1\'ICN

Attachment 4: Required Federal Certifications of Compliance

7. American Aviation Group, Inc. d/b/a Twin Air Calypso, request that the Department of

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.... ·•·'!· Transport~ti9·? s~l~~t itS. prop9~-~l {? pr~~!d(! -~S~y?F~l A.i~ ~~r~i~~ ~t ¥~.~_¥aeon, Georgi~ for ~}wo-• w. • ~

year term to commence with Twin Air Calypso's inauguration of scheduled service between MCN .,;'.

Macon, Ga and Atlanta Hartsfield-Jackson International Airport (ATL).

Respectfully submitted,

.. George M. Brown

Chairman/CEO

Perse

..

June 18, 2012

l'RPPOSA~ OF 'WINGS AIR TO PROVIDE ESSENJ'IAL AIR SERVICE AT :[\~lACON, ;GA . ..;_· .·.,;.~·<- .·.·~ ::.- -.• •' ·".' ·~·· .. \ '. ·. • '•:· ' ·'"' '• ..-:'• ', • I • ,; • ;•·\ , ' '··~·· .• '"' ' , ,· • -~: ~ '•

ATTACHl\tiENT 1

WINGS AIR Annual Subsidy Requirements for Essential Air Service Macon, Georgia

'\:'EAR 1: 2012 STATIS'fiCS ' ~

"'L\CON, GEOllGL\ COMPLETION FACTOR 99% . DEPARTURES 1.859

BLOCK HOURS 223,106 REVENUE PASSENGER 3,004,800

MILES AVAILABLE SEAT 5,709,120

MILES PASSENGERS PER 9

OPERATION SEGMENT REVENUE $99

PER PASSENGER

OPERA'l'ING REVENUES

PASSENGER REVENUE $1,673,298 CARGO REVENUE $167,329

OTHER TOTAL $1,840,627

OPJ;J&\'l,ING li1XPJ;JNSES

PERSONNEL EXPENSES $892,360 DIRECT

MAINTENANCE $212,415 FUEL 5605,267

AIRCRAFT LEASING $120,000 TOTAL OPERATING ..

EXPENCES $1.830,042

- o•r.JIER .,. , ., ..

li1Xl~JiJNSJiJS PASSENGER VARIABLE

COST $-1-5,000 VARIABLE STATION

COSTS $523,675 MARKETING

EXPENSES $800,000 FACILITIES EXPENSES $36,000

TOTAL OTHER EXPENSES $1,504,675

I COST INFLATION (2.-1-% PER YEAR)

I TOTAL EXPENSE I $3,234,717

I OPERATING

PROFIT/LOST ($1 ,394,090)

I PROFIT MARGIN

15"1> OF TOTAL EXI'E:-<SESI $161,735

ANNUAL COMPENSATION s 1.555,825

REQUIRE:\1 ENT

YEAR2:2013 ~L\CON, GEORGL\

99% 1,859

223,106 3,272,227

5,709,120

II

99

$2,045,142 $204,514

$2,249,656

$892,360

$212,415 $605,267 $120,000

$1,830,042 . ' .. ' ' ;.,.. -~· ,...:: . :

$45,000

$523,675

$800,000 $36,000

$1,504,675

$36,112

$3,270,829

($1,021,173) ··""' ~

$163,541

SI,I84.71.J.

.. :. .. ,_' .·. ·:

Al\tiRICAN AVIATION GROUP, Inc. d/b/a TWIN AIR CALYPSO

PROPOSED SERVICE FOR 1\'IACON I ATLANTA, GEORGIA

ATTACHIVIENT 2

' ... . ... ,

MA.CON I ATLANTA, GEORGIA SERVICE MACON TO ATLANTA ATLANTA TO MA.CON

FLIGHT DEPARTURE ARRIVAL FLIGHT DEPARTURE ARRIVAL 6:30 7:00 9:00 9:30 7:30 8:00 10:00 10:30 ~:30 9:00 12:00 12:30 10:30 11:00 17:00 17:30 15:30 16:00 18:00 18:30 17:30 18:00 21:00 21:30 --

• • • ~ o'O< - 4 --~ ••

. '··1 •. ~· \\. I ~.',' ATTA.CHlVIENT 3

i..

American. Aviation Group, Inc. 1\'Iarket and Marketing Plan for 1\'ICN

l\'larket and Marketing Plan:

A ·natural market has been created because of the population increase in the Middle Georgia Metropolitan Area. This market demands fast, safe and cost effective scheduled . air transportation to cities within 300 to 600 miles of Macon.The market requirements (or m~ving passengers and cargo of existing business, new business and the business of larger carriers will be the focus ofTwinAirCalypsoAirlines.

The Macon area is the third largest MSA (Metropolitan Statistical Area) in Georgia. The Middle Georgia Regional Airport (MCN), Airport Catchment Area (ACA) consists of 21 counties in central Georgia. The ACA is impacted by the proximity to Atlanta's Hartsfield-Jackson International Airport which is less than 100 miles distance and is the busiest airport in the world. However, the convenience of the MCN as a selected destinations makes it the airport of choice when other factors such as schedules and relative airfares are considered. The ACA has an estimated population of 583,000 people, with a"true market" at 256,6J:h1nnu:al·enplanements. Bibb County and Houston County are the two most populous counties in the ACA. The airport is located in Bibb County only a few miles from the Houston County line. The balance of the drawing area already uses the Macon-Warner Robins area as the retail center for most of the consumer and business trade needs.

l\'farketing is the "vital element" for successful and profitable openition in this ACA. Just putting an airplane at the airport and hoping that passengers will show up with dollars in hand is wishful thinking and a road to failure. A sustained multimedia approach with the use of TV, Radio, Newspapers, Magazines and Special Offers must be maintained .

. _Map~gement believes strongly that it is addressing a ~ark,et destinedto.grows,t;JJ.st.~th_llly within the next three (3) to five (5) years. · · ·

The current market require an airplane that fulfills the psychological mindset of what the flying public has in mind when they think of an airline to fly. The following pictures and map depicts the difference between what is at MCN today and what American Aviation Group, Inc. will replace them with:

, Cur,rent_i\ircraftused at .MCN . ·

8 Passenger Caravan

Proposed Aircraft for MCN

19 Passeng~r BAE 31

fiLE

30 Passenger BAE 42

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American A\4atic:>n Group, Inc Route Plan

UNiTED STATES OPAMERICA . ':> ~ :' .• ,. ;;;

DEPARTI\-IENT OF TRANSPORTATION OFFICE OF THE SECRETARY

OFFICE OF AVIATION ANALYSIS

CERTIFICATION REGARDING INFLUENCING ACTIVITIES

Certjfication for Contracts, Grants, Loans _and Cooperative Agreements .

The undersigned certifies, to the best of his or her knowledge and belief, that:

(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned to any person for influencing or attempting to influence an officer or employee of any agency, a lVIember of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any federal loan, the entering into any cooper~tive a~ree~ent'. ~nd the extens{on, continuation, renewal, am~9-dment, or modificalron of any Federal contract, grant, loait"or cooperative agreement. · · ·

(2) If. any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress or an employees of a Member of Congress in connection with this Federal contract, grant, loan or cooperative agreement, 'the undersigned shall complete and submit Staiidard forin-LLL, ''Disclosure Form to Report Influencing Activities," in accordance with its instructions.

(3) The undersigned shall require that the language of this certification is included in the award documents for ~II subawards at all tiers (including subcontracts, subgrants, and cor1tracts tmder. grants, loans and cooper,ative agreements} and th;it_all subrecipients sh,all certify and. disclose accordingly. . . ..- . . -

This certification is a material representation of fact upon which reliance was place when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transition imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

,June 18, 2012 Signature Date

Chairman/CEO American Aviation Group, Inc. d/b/a Twin Air Calypso Title Air Currier

Macon, Georgia Essential Air Senice Point to Which Certiticution Applies ..

' .~iii,.

_ UNTFE.RSTATES..O~Al\tiERICA .. . . .. -~DEPARTMENT.OFTRANSPOktATi:ON.

OFFICE OF THE SECRETARY OFFICE OF AVIATION ANALYSIS

TITLE VI ASSURANCE (Implementing Title VI of the Civil Rights Act of 1964, as amended)

'

ASSURANCE CONCEERING NONDISCRil\tHNATION ON THE BISIS OF DISABILITY ON FEDERALLY-ASSISTED PROGRAMS AND ACTIVITIES RECEIVIN OR BENEFITING

FROl\tl FEDERAL DINANCIAL ASSISTANCE

(Implementing the Rehabilitation Act of 1973, as amended, and the Air Carrier Access Act of 1986)

49 CFR Parts 21 and 27 and 14 CFR Parts 271 and 382

Ametfcari Aviation Group, Inc. d/b/a Twin ~Air Calypso ·(the Recipient) HERBY AGREES THAT, (Name of Recipient) ·

1. As a condition of the Civil Rights Act of 1964, as amended, 42 U.S.C. 2000d - 42 U.S.C. 2000D-4; all requirements imposed by or pursuant to: Title 49, Code of Federal Regulations, part 21, Nondiscrimination in Federally -'Assisted Programs of the Department of Transportation- Effectuation :Of Title VI of the, Civil Rights Act of 1964; and other pertinent directives so that no person in the United States shall, on the grounds of race, color or national origin, be excluded from the participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity for which the Recipient receives Federal financial assistance from the Department of Transportation. This assurance is required by Title 49, code of Federal Regulations, section.21.7(a) and Title.14, Code of Federal Regulations, section 7

. . ' ' ·' ; ' - -~ . ·, ' ' ' . . ' . ' 2 1.9( c). ·· ' · •. · · ·· · · · · ·

2. As a condition to receiving any Federal financial assistance from the Department of Transportation, it will comply with: section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794); the Air Carrier Access Act of 1986 (49 U.S.C. 1374 (c)); and all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Part 27, Nondiscrimination on the Basis of Handicap in Programs and Activities Receiving of Benefitting from Federal Financial Assistance, Title 14, Code of federal Regulations, Part 382, Nondiscrimination on the Basis of Handicap in Air Travel: and other pertinent directives so that not otherwise qualified person with a disability, be excluded from participation in, be denied the benefits of, be discriminated against by reason of such handicap in the provision of air transportation, or otherwise be subjected to discrimination Jmder any program for which the Recipient receives Federal financial assistance from the Department of Transportation. This assurance is required by the Title 49, Code of Federal Regulations, section 27.9 and Title 14, code of Federal regulation, sections 271.9( c) and 382.9. '

3. It will promptly take any measures necessary to effectuate this agreement. The recipient further agrees that it shall take reasonable actions to guarantee that it , its contractors and subcontractors subject to the Department of Transportation regulations cited

.above, trallsfert:es, and successor in interest wil~ comply with all .requirementsJmpo~ed or ~- r.: .. pu.rs~ant to the ·statues and Department' of Trarisportation:.regulaii9ns sited above, other

: pertinent directives~ and above assurances.

4. These assurances obligate the Recipient for the period during which Federal financial assurance is extended. The recipient agrees that the United States has a right to seek judicial enforcement with regard to any matter arising under the statutes and Department of Transportation regulations cited above, other pertinent directives, and the above assurances.

' . ; ' " ~

. . s: Th~se assurances are given for the purpose 'or obtaining Federal subsidy under the. Essential Air Service Program and are binding on the Recipient, contractors, subcontractors, transferees, successors in interest, and all other participants receiving Federal subsidy in the Essential Air Service Program. The person or persons whose signatures appear below are authorized to sign this agreement on behalf of the Recipient.

6. In addition to these assurances, the Recipient agrees to file: a summary of all complaints filed against it within the past year that allege violation(s) by the Recipient of Title VI of the CiviJ Rights'A,ct of 1964, as amended, section 504 of the Rehabilitation Act .of 1973, as amenci'ed, or the Air Carrier Access Act of 1086; or a statement that there have been llo ~· · complaints filed against it. The summery should include the date the complaint was filed, the nature of the complaint, the status-'Or outcome of the complaint (i.e., whether it is still pending or how it was resolved).

· .June18, 2012 Date

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American Aviation Group, Inc~ d/b/a Twin A:ir Calypso Legal Name of Recipient

By: ~---------....... -------.J.•-=:;C~h~a~ir~m:::a~n.::..I.;:;:C:.:.E:..:.O~ Signature of Authorized Ofticial

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.. :,:· .. ·> ....... : ,. ' UNITED STATES OFAMEIUCA .

'DEPARTMENT OF TiANSPORTATION . . . . . . . . .

.. '.,_.

OF.FICE OF THE SECRETARY . OFFICE OF AVIATION ANALYSIS

CERTIFICATION REGAREING DRUG- FREE \VORPLACE REQUIRE:MENTS IN THE PERFORlVIANCE OF SUBSIDIZED ESSENTIAL ARE SERVICE

A. The subsidized essential air service c~rrier certifies that it will, or will continue, to provide a drug·""- fre·e workplace by: · ·· · · · · · ·.·.

(a) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the carrier's workplace, and specifying the actions that will be taken against employees for violation of such prohibition;

(b) Establishing an ongoing drug - free awareness program to inform employees about the following:

"'· / ....

1. The dangers of drug abuse in the workplace; 2. The grantee's policy of maintaining a drug- free workplace; 3. Any available drug counseling, rehabilitation and employee assistance program;

and 4. The penalties that may be imposed upon employees to the drug abuse violations

occurring in the workplace; · · · ·

(c) Making it a requirement that each employee to be engaged in the performance of work supported by the subsidy be given a copy of the statement required by paragraph (a);

' . . ... ~.,,."' ""'' ><" . .. . . ... - ~-. ' · (d) Notifying the employee in itie statement required by paragraph (a) that, as a condition

of employment supported by the subsidy, the employee will:

-~.t~>·~·.' (l.)Abide by the terms of the statement; and (2.)Notify the employer in writing of his or her conviction for a violation of a

criminal drug statute occurring in the workplace no later than five calendar days after such conviction;

(e) Notifying the agency in writing within ten calendar days after receiving notice under paragraph (d)(2) from an employee or otherwise receiving actual notice of conviction. Employer of convicted employees must provide notice, including position title, to the Office of Aviation Analysis. Notice shall include the order number of each affected subsidized service;

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. _(0 Taking_,Oflf! oft~~- follo)_Vin~ -~~tiQI1s, witb.in_ ~9 ~ays.p(.r~ceivtng n.o.tice_under ~- . '· ·paragraph ( d)(2); with respect tQ any employee who· is so convicted; ·

(!.)Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as· amended, or

(2.) Requiring such employee to participate satisfactorily in a drug abuse assistance of rehabilitation program approved for such purposes buy a Federal, State or local health, law enforcement, or other appropriate apncy; . . .

(g) l\tlaking a good faith effort to continue to maintain a drug - free workplace through implementation of paragraphs (a.), (b.), (c.), (d.), (e.), and (f.).

B. The subsidized essential air service carrier may, but is not required to, insert in the space provided below the site for the performance of the work done in connection with the special grant.

Places of Performance (street address, city, county, state,. zip code). For the provision of essential air service, workplaces include outstations, maiQ.tenanc~ sites, headquarters,, offic~ locations, training sites and any other worksites where work is performed that is supported by the subsidy.

Check [ ] if there are workplaces on file that are not identified here.

American Aviation Group, Inc. d/b/a Twin Air Calypso

•· " • ~.c.' •' 4',, ;. ''-~· . .', ·.. ':,~.- ..... ·~ .,

By: , Chairman/CEO ~Si-gn-at-ur-e·--~--------------~~~~~~~

June 18,2012 Date

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•