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www.flyadi.com Aerodynamics Inc. Proposal to Provide Essential Air Service to the Community of Jackson, Tennessee

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www.flyadi.com

Aerodynamics Inc.

Proposal to Provide

Essential Air Service

to the Community

of Jackson, Tennessee

2

BEFORE THEDEPARTMENT OF TRANSPORTATIONWASHINGTON, D.C.________________________________________________

)Essential Air Service at )

)JACKSON, TENNESSEE ) DOCKET DOT-OST- 2000-7857

)Under 49 U.S.C. §41731 et seq. )________________________________________________)

AERODYNAMICS, INC. PROPOSAL TO PROVIDE SUBSIDIZED AIR SERVICEAT JACKSON, TENNESSEE

Correspondence with regard to this document should be addressed to:

Mickey BowmanSenior Vice President & COOAerodynamics, Inc.114 TownPark Drive NW, Suite 500Kennesaw, GA 30144Telephone: 678-872-2737Fax: 404-410-7604E-Mail: [email protected]

Aerodynamics, Inc. (ADI) cordially submits its proposal to provide subsidized air service to the community of Jackson, Tennessee. ADI hereby offers one, two year, option for service:

Two non-stop roundtrips each service day to Atlanta, Georgia. Total Annual Subsidy Requirement - $4,626,948.

3

ADI proposes to operate these flights non-stop to Atlanta’s Hartsfield-Jackson International Airport. With over 2,500 scheduled daily flights to and from over 225 cities worldwide, Atlanta Hartsfield-Jackson International Airport is the busiest in the world . ADI will schedule its flights to allow multiple connecting opportunities to a variety of carriers at Atlanta.

ADI plans to partner with another established regional carrier in a relationship whereby ADI will be able to take advantage of the interline ticketing and baggage agreements as well as Global Distribution System display, said airline already has in place. ADI contends that reasonable local fares and reliable scheduled operations will stimulate demand, along with the variety of destinations available from Atlanta will allow this market to reach its full potential. Toward that end ADI proposes herein a reasonable and affordable fare structure between Jackson and Atlanta. Additionally, ADI will endeavor to establish codeshare relationships with the major air carriers at ATL, but through its regional carrier affiliation, will still have its own reservations platform that will allow ADI flights to be sold via all major global distribution systems. Through that same affiliation, ADI will offer a web based booking site as well as a reservation call center for passenger use.

In compliance with Public Law 100-223, ADI proposes to operate these flights using Embraer 145 regional jets that are pressurized and accommodate 50 passengers. The EMB-145 features stand up headroom, a pressurized cabin, a flight attendant and a traditional onboard lavatory. The aircraft has ample cargo capacity to accommodate even bulky military duffle bags and medium sized kennels.

ADI has a long history of providing safe and reliable transportation. One of the keys to reinvigorating traffic at this airport will be schedule reliability. With the relatively low utilization of this aircraft, ADI will have great flexibility in responding to any operational challenges and can assure the community receives the level of operational performance it deserves.

www.flyadi.com

Aerodynamics Incorporated, based in Kennesaw, GA., has multiple operating bases in the U.S. and is a certified FAA 121 Air Carrier (Cert#

BUEA634C) offering large aircraft flight operations. Long recognized for its core value of operational excellence, ADI has served the industry for 57

years without incident or accident. ADI was established in 1959 and received its FAR 121 Airline certification in 2003. On January 28, 2016 ADI

received its certification for Scheduled Domestic Operations. Additionally ADI has full TSA approval and is IS-BAO Stage II, certified.

www.flyadi.com

About Our Company: ADI Company OverviewHistory

Diversity over the years

ADI has had Airliners and Corporate Jet Aircraft on it’s Air Carrier Certificate including:

• Airbus A319 / A320 series, Embraer EMB 145, EMB 135, Fokker 28, Jetstream 41,

Corporate Gulfstream GIV, GIII, Citation Excel

Professional Sales Team

• Full time dedicated sales team with substantial experience and proven results

Worldwide Operations

• ADI is authorized by the FAA for international charter operations.

• The majority of ADI flights take place in the US, Latin America, Canada, Mexico and the

Caribbean.

• ADI has a full staff of Certified Dispatchers & Maintenance Controllers

• Established 24/7 operation eager to serve your community

.

ADI has considerable experience in shuttle operations in a variety of narrow-body airline equipment, including the Embraer regional

jet. Founded in 1959, ADI operates under FAR Part 121 and is recognized as a world leader in corporate shuttle operations. ADI has

maintained a flawless safety record for over 57 years.

• Denver to Pierre and Watertown, SD (August 2016) – Daily EAS flights between Denver (KDEN) and both Pierre (KPIR) and Watertown (KATY) in an

Embraer 145.

• Chicago to Manistee, MI (2012) – Daily flights between Chicago Midway (KMDW) and Manistee, MI (KMBL) in an Embraer 145. ADI was awarded the

contract after a larger carrier pulled their aircraft from servicing this route.

• Intel Corporate Airline (2004 – 2013) – Operating the world’s largest private airline service - 33 daily flights operating seven Embraer 135’s / Beech 1900

transporting over 300,000 passengers annually while boasting a 98.7% dispatch reliability rating, along with a 97.0% on-time performance ratio–each

ranked 1st amongst ERJ operators worldwide.

• Dow Chemicals (2002 – 2011) –Operating daily flights in an Airbus 319 between Saginaw, MI and Lake Jackson, TX and Philadelphia, PA. Dow Chemical’s

corporate shuttle which logged nearly 1400 flight hours annually. ADI maintained a 99% reliability and mission completion rating throughout the Airbus

program.

www.flyadi.com

About Our Company: ADI Proven Airline Success

Customers Served:

6

OPERATIONS METRICS

Report Date Range: 8/15/2016 - 8/31/2016

DENVER SYSTEM ALL SEGMENTS

OPERATIONS METRICS

Report Date Range: 9/1/2016 - 9/30/2016

DENVER SYSTEM ALL SEGMENTSDaily service linking Pierre and Watertown, SD with Denver, CO

About Our Company: the ADI AdvantageProven EAS Performance

Daily service linking Pierre and Watertown, SD with Denver, CO

OPERATIONS METRICS

Report Date Range: 10/1/2016 - 10/31/2016

DENVER SYSTEM ALL SEGMENTSDaily service linking Pierre and Watertown, SD with Denver, CO

Scheduled Departures 120 Completed Departures 120 Completion Factor- 100%On Time Departures :00 82% On time Departures :05 88% On Time Arrivals :15 90%Total ONB Psgrs 1,706 RPMS 546,624 ASMS 1,626,000 Load Factor 34%

Scheduled Departures 208 Completed Departures 208 Completion Factor- 100%On Time Departures :00 91% On time Departures :05 92% On Time Arrivals :15 93%Total ONB Psgrs 3,929 RPMS 1,258,780 ASMS 2,818,400 Load Factor 45%

Scheduled Departures 208 Completed Departures 205 Completion Factor- 99%On Time Departures :00 81% On time Departures :05 84% On Time Arrivals :15 86%Total ONB Psgrs 4,645 RPMS 1,536,210 ASMS 2,818,400 Load Factor 55%

www.flyadi.com

7

OPERATIONS METRICS

Report Date Range: 11/1/2016 - 11/30/2016

DENVER SYSTEM ALL SEGMENTS

OPERATIONS METRICS SYSTEM SUMMARY

Report Date Range: 8/15/2016 - 11/30/2016

DENVER SYSTEM ALL SEGMENTSDaily service linking Pierre and Watertown, SD with Denver, CO

About Our Company: the ADI AdvantageProven EAS Performance

Daily service linking Pierre and Watertown, SD with Denver, CO

Scheduled Departures 208 Completed Departures 196 Completion Factor- 94%On Time Departures :00 71% On time Departures :05 75% On Time Arrivals :15 78%Total ONB Psgrs 4,818 RPMS 1,560,066 ASMS 2,819,700 Load Factor 55%

Scheduled Departures 744 Completed Departures 729 Completion Factor- 98%On Time Departures :00 81% On time Departures :05 84% On Time Arrivals :15 86%Total ONB Psgrs 15,098 RPMS 4,801,880 ASMS 10,082,500 Load Factor 48%

www.flyadi.com

ADI Certifications

www.flyadi.com

FAA Part 121 Certificated Air Carrier

Most operators tend to advertise “Safety First” or “Just Safety Culture” however, at ADI we embrace all concepts of Safety and

Regulatory Compliance. From implementing “Best Practices” to ensuring compliance with worldwide regulatory requirements safety

is always at the forefront. Our commitment to safety is universal throughout our organization, it reaches out to our Management

Team, Administration, Regulatory Compliance, Training, Maintenance and Quality Control equally, we utilize interfacing concepts in

any and all decisions made to ensure we provide the utmost in safety and compliance consistently.

Safety Highlights

• ADI maintains outstanding Zero- Accident safety record for the last 57 years

• In-house TSA security program

Safety Certifications

• ADI participates in mandatory and volunteer safety audits to exceed strict guidelines authorized by numerous groups.

Operational Positions

• Chief Executive Officer and President – Darrell Richardson

• Senior Vice President and COO – Mickey Bowman

• Director of Operations – Larry Hecht

• Chief Pilot – Paul Reason

• Director of Maintenance – Matthew Moreau

• Chief Inspector – Robert Anderson

• Director of Safety – Armando Cardenas

• Director of Inflight Services – Brenda Valenti

• Manager of Flight Following – Fernando Pineda

www.flyadi.com

About Our Company: A Commitment To Safety

GDS Distribution & Reservation SystemADI intends to market these flights via a reservations and hosting agreement with another established regional carrier. It will be possible to purchase tickets by calling a toll-free reservation number, online, or through a travel agent. In addition, customers will be able to book using any of the major online travel agencies and meta-searchers such as Orbitz, Travelocity, and Expedia. Schedules and availability will be published in the global distribution systems (GDS).

Interline AgreementsOperating through this reservations hosting agreement, passenger amenities will include interline ticketing and baggage check-in to the customers final destination. The most important feature of this relationship for these communities is that it will allow ADI to participate in bilateral interline e-ticketing and baggage agreements with other airlines. The regional carrier that ADI is partnering with has existing interline agreements.

Marketing & Community RelationsADI’s proposal to provide EAS includes a commitment to spend a

minimum of $5,000 monthly, $60,000 annually, on advertising and

promotional activities in this community. Advertising activities will focus

on radio, print, outdoor and social media across the reasonable

catchment area of the Airport. Promotions with free ticket rewards

have been very popular in similar communities.

Advertising will be supported by sales activities focused on companies and organizations in each of the respective areas with a need for reliable and affordable travel options. The sales message would include explanation of the value proposition of flying compared to driving, connectivity possibilities, service enhancements, special fares (ie., commuter books and negotiated corporate contracts), and the importance of local businesses to support local air service.

www.flyadi.com

Airline Services

About Our Company: the ADI Advantage

www.flyadi.com

Airline Services

About Our Company: the ADI Advantage

Pricing & Fares

To introduce ADI’s service in this community introductory fare of $75 each way to Atlanta (inclusive of all taxes and

fees) would be offered during the first 30-days of service. Thereafter, and as the basis for the requested level of

subsidy, an average fare of $99 each way is projected. Consistent with ADI’s marketing plan, a range of fares would

be offered.

Potential Fares To Be Marketed by Aerodynamics, Inc.

Introductory Fare for first month of service: $75 One Way

Non-refundable walk up fare on at least 75% of available seats: $99 One Way

Standard, fully refundable, walk up fare with last seat availability: $149 One Way

Source: US DOT Domestic Airline Consumer Reports

About Our Company: the ADI Advantage

www.flyadi.com

ATL offers Jackson area travelers access to lower fares than STL and BNA

As published by the US Department of Transportation, in all markets with more than 20 passengers per day, travelers at St. Louis

and Nashville paid a premium compared to travelers at Atlanta.

ADI’s proposed service would give Jackson travelers access to more connections at lower fares than the current service to St. Louis

or any proposal that includes service to Nashville.

Average One-Way Domestic Air Fares3Q 2015 thru 2Q 2016

STL Premium = 5%

BNA Premium = 9%

STL Premium = 4%

BNA Premium = 8%STL Premium = 4%

BNA Premium = 6%

STL Premium = 11%

BNA Premium = 11%

$221

$212

$217$220

$213

$203

$210

$198

$229

$220$222

$220

$180.00

$185.00

$190.00

$195.00

$200.00

$205.00

$210.00

$215.00

$220.00

$225.00

$230.00

$235.00

3 Q 2015 4 Q 2015 1 Q 2016 2 Q 2016

STL ATL BNA

ADI’s fleet is comprised of Embraer ERJ 145’s, capable of accommodating up to 50 passengers, with excellent “hot & high”

performance. It was specifically designed to fly shorter distances at greater speeds. The ERJ 145 has an impressive mission completion

rate of 99.7%. The ERJ worldwide fleet has flown over fifteen million miles since its first flight in 1995 with zero fatalities. Sit back,

relax, and enjoy the safety of the Embraer ERJ 145.

www.flyadi.com

About Our Aircraft: The ADI Fleet

Performance & Specifications

Maximum Range: 1,017 nm

(with Reserves)

Normal Cruise Speed: 590 mph

Cabin Height: 6 ft

Cabin Width: 6 ft 11 in

Usable Baggage: 2600 lbs.

Comfort

• Flight Attendant

• 31” Seat Pitch

• Rear Cabin Lavatory

• Beverage Service

• Forward Cabin Galley

• 34 Large Windows

• Overhead Storage Bins

About Our Aircraft: the Embraer ERJ 145

www.flyadi.com

15www.flyadi.com

About Our Proposal: The Atlanta Hub

ADI proposes to operate flights, under its independent identity to the major hub airport of Atlanta Hartsfield International. ATL is the world’s busiest with over 2,500 daily scheduled operations to and from over 225 cities worldwide.

In 2015 ATL hosted some 101.5 million passengers

16www.flyadi.com

About Our Proposal: The Atlanta Hub2015 Top 30 Domestic Airports (Ranked by Passenger Enplanements)

1 Hartsfield–Jackson Atlanta International Airport ATL Atlanta GA 49,340,732 2 Los Angeles International Airport LAX Los Angeles CA 36,351,2263 O'Hare International Airport ORD Chicago IL 36,305,6684 Dallas/Fort Worth International Airport DFW Dallas/Fort Worth TX 31,589,832 5 John F. Kennedy International Airport JFK New York NY 27,717,5036 Denver International Airport DEN Denver CO 26,280,043 7 San Francisco International Airport SFO San Francisco CA 24,190,549 8 Charlotte Douglas International Airport CLT Charlotte NC 21,913,156 9 McCarran International Airport LAS Las Vegas NV 21,824,23110 Phoenix Sky Harbor International Airport PHX Phoenix AZ 21,351,44511 Miami International Airport MIA Miami FL 20,986,34112 George Bush Intercontinental Airport IAH Houston TX 20,595,87413 Seattle–Tacoma International Airport SEA Seattle/Tacoma WA 20,148,980 14 Orlando International Airport MCO Orlando FL 18,759,938 15 Newark Liberty International Airport EWR Newark/New York NJ 18,684,765 16 Minneapolis–Saint Paul International Airport MSP Minneapolis/St. Paul MN 17,634,252 17 Logan International Airport BOS Boston MA 16,290,323 18 Detroit Metropolitan Airport DTW Detroit MI 16,255,507 19 Philadelphia International Airport PHL Philadelphia PA 15,101,31820 LaGuardia Airport LGA New York NY 14,319,92421 Fort Lauderdale–Hollywood International Airport FLL Fort Lauderdale FL 13,061,60722 Baltimore–Washington International Airport BWI Baltimore/Washington, D.C. MD 11,738,82823 Ronald Reagan Washington National Airport DCA Washington, D.C. VA 11,242,37524 Midway International Airport MDW Chicago IL 10,830,78325 Salt Lake City International Airport SLC Salt Lake City UT 10,634,51926 Washington Dulles International Airport IAD Washington, D.C. VA 10,363,918 27 San Diego International Airport SAN San Diego CA 9,985,73928 Honolulu International Airport HNL Honolulu HI 9,479,08329 Tampa International Airport TPA Tampa FL 9,150,414 30 Portland International Airport PDX Portland OR 8,340,234

17www.flyadi.com

About Our Proposal: The Atlanta Hub

Airlines Serving ATL

Concourse A Delta Air Lines, DL

Concourse B Delta Air Lines, DL

Concourse C Delta Air Lines, DL Southwest Airlines, WN

Concourse D Alaska Airlines, AS American Airlines, AA Delta Air Lines, DL Frontier Airlines, F9 Spirit Airlines, NK

Concourse E Air France, AF British Airways, BA Delta Air Lines, DL KLM, KL Korean Air Lines, KE Lufthansa, LH Virgin Atlantic Airways, VS

Concourse F Air Canada, AC Air France, AF British Airways, BADelta Air Lines, DL KLM, KL Korean Air Lines, KE Lufthansa, LH Southwest Airlines, WN Virgin Atlantic Airways, VS

Concourse T American Airlines, AA Delta Air Lines, DL United Airlines, UA

18www.flyadi.com

About Our Proposal: The Atlanta Hub

A growing population in Jackson, combined with air service contraction at MEM, create a unique opportunity.

With affordable fares, ADI is confident it can attract traffic from a much broader area than what is traditionally considered the service

area for McKeller-Sipes Regional Airport. This area would include the eastern suburbs of Memphis.

A Growing MSA population . . . . . . and expanded service area of over 528K

It is worth noting that Paducah, Kentucky, an EAS market with a service area population of approximately 280K residents (roughly ½

the population of an expanded market area for Jackson), generates annual O&D passengers equivalent to those forecast in ADI’s

proposal to provide EAS at Jackson.

About Our Proposal: Traffic Potential

www.flyadi.com

Regional jet service provides substantive benefitsService with regional jets can translate into increased passenger traffic and numerous other

benefits at EAS communities:

• Customers:

• Provides a more comfortable ride with better amenities

• Overcomes policies of some corporations that prohibit travel on single-

engine and/or small aircraft

• Economy:

• Provides a great first impression for site selectors

• Can help promote tourism

• Return of TSA screening creates jobs at airport

• Airport:

• As annual enplanements exceed 10,000, airport becomes eligible for

$1,000,000 grant from FAA Airport Improvement Program (AIP), so

potentially $2,000,000 for the two years of the contract term

• The return of TSA screening generates additional rent income for the

airport

• Higher enplanements drive increased aeronautical (i.e., fuel flowage)

and non-aeronautical (i.e., concessions) revenue streams

ADI looks forward to bringing these benefits to the Jackson community.

About Our Proposal: Traffic Potential

www.flyadi.com

A number of EAS markets similar to Jackson successfully support regional jet service . . . ADI is confident that Jackson too can support jet service

The MSA population of

Jackson is greater than

most EAS communities

that are served with 50-

seat jets.

ADI is confident that jets

will expand the reach of

McKeller-Sipes Regional

Airport, ensuring the

community maintains its

EAS eligibility for years to

come.

MarketEstimated

PopulationEAS Service

Waterloo, IA 246,167 12 weekly RTs - Chicago

Hattiesburg/Laurel, MS 353,867 12 weekly RTs - Dallas

Eau Claire, WI 347,035 12 weekly RTs - Chicago

Joplin, MO 303,288 12 weekly RTs - Dallas

Paducah, KY 279,851 12 weekly RTs - Chicago

Muskegon, MI 254,480 12 weekly RTs - Chicago

Meridian, MS 229,012 12 weekly RTs - Dallas

Bemidji, MN 227,821 12 weekly RTs - Minneapolis/St. Paul

Staunton, VA 187,792 12 weekly RTs - Charlotte

Brainerd, MN 185,520 12 weekly RTs - Minneapolis/St. Paul

Watertown, NY 172,246 12 Weekly RTs - Philadelphia

Grand Island, NE 148,824 12 weekly RTs - Dallas

Chisholm/Hibbing, MN 147,141 12 weekly RTs - Minneapolis/St. Paul

JACKSON, TN 145,000 Estimated 2016 MSA Population

Greenbrier/White Sulpher Springs, VA 128,304 12 weekly RTs - Charlotte

Watertown, SD 103,188 12 weekly RTs - Denver

Alpena, MI 97,471 12 weekly RTs - Detroit

Pellston, MI 95,221 12 weekly RTs - Detroit

Hancock/Houghton, MI 82,566 12 weekly RTs - Chicago

Escanaba, MI 78,456 12 weekly RTs - Detroit

Butte, MT 72,933 12 weekly RTs - Salt Lake City

Iron Mountain, MI 71,856 12 weekly RTs - Minneapolis/St. Paul

Hays, KS 70,081 12 weekly RTs - Denver

Sault Ste. Marie, MI 67,678 12 weekly RTs - Detroit

Cedar City, UT 61,955 12 weekly RTs - Salt Lake City

Jamestown, ND 59,631 12 weekly RTs - Denver

Devils Lake, ND 58,395 12 weekly RTs - Denver

Aberdeen, SD 58,328 12 weekly RTs - Minneapolis/St. Paul

Cody, WY 52,768 12 weekly RTs - Salt Lake City

Dickinson, ND 49,649 12 weekly RTs - Denver

Pierre, SD 44,607 12 weekly one-stop RTs - Denver

Laramie, WY 43,509 12 weekly RTs - Denver

International Falls, MN 38,457 12 weekly RTs - Minneapolis/St. Paul

Rhinelander, WI 33,007 12 weekly RTs - Minneapolis/St. Paul

Garden City, KS 10,085 12 weekly RTs - Dallas

About Our Proposal: Traffic Potential

www.flyadi.com

EAS service with regional jets can explode traffic at smaller airports

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Pierre, SD

Enpla

nem

ents

Large turboprop

& regional jet

Aug 2016 was partial month;

Traffic is rebuilding with jet service.

Service

interruption

19-passenger

turboprop

SOURCE: BTS, Form 41 T-100 &

internal ADI reports

0

200

400

600

800

1,000

1,200

Mesaba/Pinnacle Great Lakes ADI

Watertown, SD

Service

interruption

19-passenger

turboprop

Large

turboprop

& regional

jet

Enpla

nem

ents

Using regional jets, ADI is

rebuilding traffic in

markets with lower

populations.

In three months, jet

service by ADI has

brought Watertown into

compliance with the $200

subsidy cap.

About Our Proposal: Traffic Potential

www.flyadi.com

23www.flyadi.com

Proposal: Service between Jackson, TN and Atlanta, GA

AERODYNAMICS, INC. Service Proposal:

24 Weekly 50-Seat, Regional Jet Frequencies(All Non-Stop)

Aerodynamics, Inc. proposes to operate these flights under a relationship with an established regional carrier. The timing of these flights would be optimized for connections to and from legacy and low cost carriers in Atlanta. ADI proposes to encourage connecting traffic by using a simplified “add on” fee structure, an average fare of $99 one way (including applicable taxes and fees) is proposed, whereby passengers connecting to or from other airline flights would pay only a low incremental fare for the ADI segment into Atlanta.

The anticipated service pattern would feature two non-stop flights each weekday on a single aircraft. Weekend service would consist of a single non-stop roundtrip on Saturday and a single non-stop roundtrip on Sunday. Total Subsidy Requirement - $4,626,948.

FROM TO DEP ARR EQP FREQ STOPS Jackson Atlanta 550am 800am ERJ X7 0 Jackson Atlanta 150pm 400pm ERJ X6 0

Atlanta Jackson 1030am 1045am ERJ X7 0Atlanta Jackson 530pm 545pm ERJ X6 0

(Note: These schedules are for illustration and may not represent the final selling

product pending consultations with the community with its scheduling preferences.)

24www.flyadi.com

About Our Proposal: Jackson-AtlantaAerodynamics Inc

Essential Air Service Proposal To Provide Service at:

Jackson, Tennessee

Option 1

Jackson

Hub Served Atlanta

Number of Roundtrips per Service Day 2

Operating Statistics (12rt/week)

Assumed Completion % 98%

Annual Adjusted Block Hours 1,483.76

Annual Adjusted Departures 1,228

Annual Adjusted ASMs 17,743,733

Annual RPMs 6,725,030

Projected Load Factor 37.9%

Revenue Projections

Enplaned Passengers 23,270

Mileage (Average as Operated) 289

Average Fare 83.16$

Passenger Revenue 1,935,198$

Miscellaneous Revenue 48,380$

Expense Projections

Flight Operations $862,650

Ownership $603,650

Maintenance $1,239,015

Reservations, Stations & Administration $1,853,744

Fuel $1,676,680

Advertising $60,000

Total Annual Expenses $6,295,739

Projected Profit / (Loss) (4,312,161)$

Profit Element $314,787

Annual Subsidy Required $4,626,948

24 Weekly Regional Jet Frequencies(All Non-Stop)

www.flyadi.com

ADIs’ bid contemplates lower subsidy per seat than the previous bid

It is important to note that the superior customer comfort and improved hub in ADI’s bid will also result in a lower per seat subsidy than

previously seen at Jackson.

To illustrate this point, the graph below compares the subsidy per seat paid to Air Choice One based on the Department’s Order

Selecting Carrier to the requested subsidy by ADI in this proposal. Specifically, the per seat subsidy requested by ADI is 39% below

that currently paid to Air Choice One. Assuming an increase in requested subsidy by the incumbent carrier, and similar subsidy

requests by other operators of small aircraft, the difference is requested subsidy per seat during the current contract bidding is very

likely even greater.

$125.11

$75.36

$50

$60

$70

$80

$90

$100

$110

$120

$130

$140

$150

Air Choice One Aerodynamics

Subsidy per Departing Seat

About Our Proposal: Traffic Potential

www.flyadi.com

In conclusion, Aerodynamics, Inc. believes that this proposal will provide the community of Jackson, Tennessee with superior air service options. We feel the passengers will benefit from the breath of connecting opportunities available with service to Atlanta, the world’s busiest airport. With a renewed focus on price, schedule connectivity and reliability, ADI intends to grow this market. ADI has proven itself as a dependable Air Service provider and brings a commitment to work with this community to address its travel needs. Integrity of service has been a hallmark of the ADI Charter operation and we look forward to extending our reach into the Scheduled service arena.

Respectfully Submitted: December 15, 2016__________________________________Mickey BowmanSenior Vice President & COOAerodynamics, Inc.

About Our Proposal: Conclusion

Equals a bright future for regional air service in Jackson!

www.flyadi.com

[email protected]

Corporate

114 TownPark Drive NWSuite 500Kennesaw, GA 30144