before the department of transportation washington, d.c. essen8al air service at: cape...
TRANSCRIPT
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 -----------------------------------
TOTALOPERATINGEXPENSES $2,209,603
OperaBngLoss $1,864,423ProfitElement(5%) $110,480
COMPENSATIONREQUIRED $1,974,903
COMPENSATIONPERPAX $171COMPENSATIONPERDEPARTURE$803
AnnualSeats 22,127
AnnualPassengers 11,506
LoadFactor 52%
Departures 2,458
BlockHours 2,212
AverageFare $30
CompleBonFactor 98.5%
Representa8veSchedule
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
Opera8ngExpenses(BNAOnly)FlyingOperaBons $786,805FuelandIntoPlane $715,868Maintenance $468,500Aircra[ $380,000Indirect $595,115 -----------------------------------
TOTALOPERATINGEXPENSES $2,946,288
OperaBngLoss $2,349,180ProfitElement(5%) $147,314
COMPENSATIONREQUIRED $2,496,494
COMPENSATIONPERPAX $142COMPENSATIONPERDEPARTURE$677
AnnualSeats 33,190
AnnualPassengers 17,562
LoadFactor 50%STL
65%CHI
Departures 3,687
BlockHours 3,748
AverageFare $34
CompleBonFactor 98.5%
Representa8veSchedule
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
Opera8ngExpenses(BNAOnly)FlyingOperaBons $696,746FuelandIntoPlane $633,929Maintenance $414,875Aircra[ $380,000Indirect $595,115 -----------------------------------
TOTALOPERATINGEXPENSES $2,720,665
OperaBngLoss $2,222,815ProfitElement(5%) $136,033
COMPENSATIONREQUIRED $2,358,848
COMPENSATIONPERPAX $142COMPENSATIONPERDEPARTURE$639
AnnualSeats 33,190
AnnualPassengers 16,595
LoadFactor 50%
Departures 3,687
BlockHours 3,319
AverageFare $30
CompleBonFactor 98.5%
Representa8veSchedule
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