aerodynamics inc. proposal to provide essential air service …airlineinfo.com/ostpdf96/199.pdf ·...
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Aerodynamics Inc.
Proposal to Provide
Essential Air Service to
the Communities of
Kearney, North Platte,
and Scottsbluff,
Nebraska
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BEFORE THEDEPARTMENT OF TRANSPORTATIONWASHINGTON, D.C.________________________________________________
)Essential Air Service at )
))
KEARNEY, NEBRASKA ) DOCKET DOT-OST-1996-1715NORTH PLATTE, NEBRASKA ) DOCKET DOT-OST-1999-5173SCOTTSBLUFF, NEBRASKA ) DOCKET DOT-OST-2003-14535
))
Under 49 U.S.C. §41731 et seq. )________________________________________________)
AERODYNAMICS, INC. PROPOSAL TO PROVIDE SUBSIDIZED AIR SERVICEAT KEARNEY, NORTH PLATTE, AND SCOTTSBLUFF, NEBRASKA
Correspondence with regard to this document should be addressed to:
Mickey BowmanVice President of Airline ServicesAerodynamics, Inc.114 TownPark Drive, 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 communities of Kearney, North Platte and Scottsbluff, Nebraska. ADI hereby offers three, two year, options for service. Please note that this bid is contingent on ADI also being awarded the Essential Air Service contract for service to at least two of the pool of five communities consisting of Kearney, North Platte and Scottsbluff, Nebraska along with Dodge City and Liberal, Kansas.
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ADI proposes to operate flights from Kearney, North Platte and Scottsbluff to the major hub airport of Denver, Colorado. Denver International Airport is the nation’s 5th. busiest with over 1,550 daily departures to over 180 cities worldwide. ADI is a certificated 121 operator that currently holds DOT economic authority for charter operations and, by Order 2016-1-13 on January 28, 2016, was found fit by the DOT for expanded economic authority allowing ADI to conduct scheduled domestic passenger service. ADI will schedule its flights to allow multiple connecting opportunities to a variety of carriers at DEN.
ADI plans to partner with another established regional carrier, in a codeshare 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 and the variety of destinations available from Denver will allow these markets to grow. Toward that end ADI will establish a reasonable and affordable fare structure between these cities and Denver. Additionally, ADI will endeavor to establish codeshare relationships with the major air carriers at DEN, 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 an onboard lavatory. The aircraft has ample cargo capacity to accommodate even bulky military duffle bags.
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 these aircraft, ADI will have great flexibility in responding to any operational challenges and can assure this community receives the level of operational performance it deserves.
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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 is one of only two companies operating Regional Jets in the supplemental 121 on-demand sector.
Additionally ADI has full TSA approval and is IS-BAO Stage II, certified.
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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.
• Tortug’air International Service (2014) – Daily flights between Ft. Lauderdale (KFLL) and Cape Haitian (MTCH) and Nassau (MYNN) 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.
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About Our Company: ADI Proven Airline Success
Customers Served:
ADI Certifications
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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
• Director of Operations – Larry Hecht
• Chief Pilot – Michael Prinzi
• Director of Maintenance – Matthew Moreau
• Chief Inspector – Robert Anderson
• Director of Safety – Bob Looney
• Director of Inflight Services – Brenda Valenti
• Manager of Flight Following – Fernando Pineda
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About Our Company: A Commitment To Safety
GDS Distribution & Reservation System
ADI 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, Expedia, and Kayak.
Schedules and availability will be published in four of the top five top global distribution systems (GDS): Amadeus, Apollo, Sabre, and Worldspan.
Interline Agreements
Operating through this reservations hosting agreement, passenger amenities will include interline ticketing, baggage check-in to the customers final destination, Inter-Airline Thru Check-In (IATCI) allowing ticket agents to issue boarding passes on participating connecting airlines, SMS notifications advising customers of schedule changes and flight irregularities, ability for customers to make changes to reservations via the Internet, and online check-in.
The most important feature of this relationship for communities such as Kearney, North Platte and Scottsbluff, is that it will allow ADI to participate in bilateral interline e-ticketing and baggage agreements with other airlines. All of the regional carriers that ADI is negotiating to partner with have existing interline agreements with the “big three” domestic carriers, American, Delta and United, as well as several smaller carriers.
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Airline Services
About Our Company: the ADI Advantage
Marketing & Community Relations
ADI’s proposal to provide EAS includes a commitment to spend a minimum
of $12,000 annually on advertising and promotional activities in each of
these communities. Advertising activities will focus on radio, print, and
outdoor across the reasonable catchment area of all three airports.
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.
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Airline Services
About Our Company: the ADI Advantage
Pricing & Fares
To introduce ADI’s service to both the Kearney and Scottsbluff areas, an introductory fare of $59 each way to Denver
(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 at Kearney, North Platte and Scottsbluff. Each specific fare would fall into one of three “Fare Families”
that are the foundation of ADI’s pricing strategy and which are summarized below.
“Fare Families” To Be Marketed by Aerodynamics, Inc.
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 medium sized groups shorter distances at greater speeds. The ERJ 145 has a 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.
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About Our Aircraft: The ADI Fleet
Performance & Specifications
Maximum Range: 1,017 nm
(with Reserves)
Normal Cruise Speed: mach 0.78
Cabin Height: 6 ft
Cabin Width: 6 ft 11 in
Usable Baggage: 2600 lbs.
Comfort
• Flight Attendants
• 31” Seat Pitch
• Rear Cabin Lavatory
• Catering Available
• Forward Cabin Galley
• 34 Large Windows
• Overhead Storage Bins
About Our Aircraft: the Embraer ERJ 145
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About Our Proposal: The Denver Hub
ADI proposes to operate flights, under its independent identity to the major hub airport of Denver, Colorado. Denver International Airport is the nation’s 5th
busiest with over 1,550 daily departures to over 180 cities worldwide.
In 2014 DEN hosted some 53.4 million passengers
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About Our Proposal: The Denver Hub
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About Our Proposal: The Denver Hub
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About Our Proposal: The Denver Hub
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About Our Proposal: Service to Kearney, NebraskaAERODYNAMICS, INC. Service Proposals:
Service Option 124 Weekly frequencies between Kearney, Nebraska and Denver
Aerodynamics, Inc. proposes to operate these flights under a codeshare 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 Denver. 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 Denver. Additionally, no bag fees are assumed for the first 2 checked bags on a local itinerary.
The anticipated service pattern features two weekday roundtrips operating on a non-stop routing Weekend service would consist of one round trip, non-stop flight on Saturday and one roundtrip, non-stop flight on Sunday. ADI intends to acquire ticket counter space in the East Terminal in DIA and plans to work from the ground load A Gates. Total annual subsidy required for this operation would be $4,394,553.
FROM TO DEP ARR EQP FREQ STOPS
Kearney Denver 836am 855am ERJ X7 0Kearney Denver 341pm 400pm ERJ X6 0
Denver Kearney 1100am 107pm ERJ X7 0Denver Kearney 610pm 817pm ERJ X6 0
(Note: These schedules are for illustration and may not represent the final selling
product pending consultations with the community with its scheduling preferences.)
17www.flyadi.com
About Our Proposal: Kearney, NebraskaAerodynamics Inc
Essential Air Service Proposal To Provide Service at:
Kearney, Nebraska
Option 1
Kearney
Hub Served Denver
Number of Roundtrips per Service Day 2
Non-Stop
Operating Statistics (12rt/week)
Assumed Completion % 98%
Annual Adjusted Block Hours 1,493.99
Annual Adjusted Departures 1,227.94
Annual Adjusted ASMs 18,726,085
Annual RPMs 7,939,760
Projected Load Factor 42.4%
Revenue Projections
Enplaned Passengers 26,032
Mileage (Average as Operated) 305
Average Fare 83.16$
Passenger Revenue 2,164,894$
Miscellaneous Revenue 54,122$
Expense Projections
Flight Operations $882,912
Ownership $843,650
Maintenance $1,184,746
Reservations, Stations & Administration $1,628,766
Fuel $1,746,564
Marketing $12,000
Total Annual Expenses $6,298,637
Projected Profit / (Loss) (4,079,621)$
Profit Element $314,932
Annual Subsidy Required $4,394,553
Subsidy per Departure $3,578.80
Subsidy per Passenger $168.81
18www.flyadi.com
About Our Proposal: Service to North Platte, NebraskaAERODYNAMICS, INC. Service Proposals:
Service Option 124 Weekly frequencies between North Platte, Nebraska and Denver
Aerodynamics, Inc. proposes to operate these flights under a codeshare 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 Denver. 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 Denver. Additionally, no bag fees are assumed for the first 2 checked bags on a local itinerary.
The anticipated service pattern features two weekday roundtrips operating on a non-stop routing Weekend service would consist of one round trip, non-stop flight on Saturday and one roundtrip, non-stop flight on Sunday. ADI intends to acquire ticket counter space in the East Terminal in DIA and plans to work from the ground load A Gates. Total annual subsidy required for this operation would be $4,578,107.
FROM TO DEP ARR EQP FREQ STOPS
North Platte Denver 838am 845am ERJ X7 0North Platte Denver 343pm 350pm ERJ X6 0
Denver North Platte 1110am 110pm ERJ X7 0Denver North Platte 620pm 820pm ERJ X6 0
(Note: These schedules are for illustration and may not represent the final selling
product pending consultations with the community with its scheduling preferences.)
19www.flyadi.com
About Our Proposal: North Platte, Nebraska
Aerodynamics Inc
Essential Air Service Proposal To Provide Service at:
North Platte, Nebraska
Option 1
North Platte
Hub Served Denver
Number of Roundtrips per Service Day 2
Non-Stop
Operating Statistics (12rt/week)
Assumed Completion % 98%
Annual Adjusted Block Hours 1,371.20
Annual Adjusted Departures 1,227.94
Annual Adjusted ASMs 13,998,516
Annual RPMs 3,816,720
Projected Load Factor 27.3%
Revenue Projections
Enplaned Passengers 16,740
Mileage (Average as Operated) 228
Average Fare 83.16$
Passenger Revenue 1,392,145$
Miscellaneous Revenue 34,804$
Expense Projections
Flight Operations $882,912
Ownership $843,650
Maintenance $1,036,653
Reservations, Stations & Administration $1,416,185
Fuel $1,527,702
Marketing $12,000
Total Annual Expenses $5,719,101
Projected Profit / (Loss) (4,292,152)$
Profit Element $285,955
Annual Subsidy Required $4,578,107
Subsidy per Departure $3,728.28
Subsidy per Passenger $273.48
20www.flyadi.com
About Our Proposal: Service to Scottsbluff, NebraskaAERODYNAMICS, INC. Service Proposals:
Service Option 124 Weekly frequencies between Scottsbluff, Nebraska and Denver
Aerodynamics, Inc. proposes to operate these flights under a codeshare 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 Denver. 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 Denver. Additionally, no bag fees are assumed for the first 2 checked bags on a local itinerary.
The anticipated service pattern features two weekday roundtrips operating on a non-stop routing Weekend service would consist of one round trip, non-stop flight on Saturday and one roundtrip, non-stop flight on Sunday. ADI intends to acquire ticket counter space in the East Terminal in DIA and plans to work from the ground load A Gates. Total annual subsidy required for this operation would be $3,661,164.
FROM TO DEP ARR EQP FREQ STOPS
Scottsbluff Denver 741am 835am ERJ X7 0Scottsbluff Denver 246pm 340pm ERJ X6 0
Denver Scottsbluff 1120am 1213pm ERJ X7 0Denver Scottsbluff 630pm 723pm ERJ X6 0
(Note: These schedules are for illustration and may not represent the final selling
product pending consultations with the community with its scheduling preferences.)
21www.flyadi.com
About Our Proposal: Scottsbluff, NebraskaAerodynamics Inc
Essential Air Service Proposal To Provide Service at:
Scottsbluff, Nebraska
Option 1
Scottsbluff
Hub Served Denver
Number of Roundtrips per Service Day 2
Non-Stop
Operating Statistics (12rt/week)
Assumed Completion % 98%
Annual Adjusted Block Hours 1,094.91
Annual Adjusted Departures 1,227.94
Annual Adjusted ASMs 9,209,550
Annual RPMs 2,805,450
Projected Load Factor 30.5%
Revenue Projections
Enplaned Passengers 18,703
Mileage (Average as Operated) 150
Average Fare 83.16$
Passenger Revenue 1,555,394$
Miscellaneous Revenue 38,885$
Expense Projections
Flight Operations $882,912
Ownership $843,650
Maintenance $703,443
Reservations, Stations & Administration $1,465,931
Fuel $1,097,248
Marketing $12,000
Total Annual Expenses $5,005,184
Projected Profit / (Loss) (3,410,905)$
Profit Element $250,259
Annual Subsidy Required $3,661,164
Subsidy per Departure $2,981.55
Subsidy per Passenger $195.75
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In conclusion, Aerodynamics, Inc. believes that this proposal will provide Kearney, North Platte and Scottsbluff with superior air service options. We feel the passengers will benefit from service to one of the nation’s busiest hub airport in Denver, Colorado. With a renewed focus on price, schedule connectivity and reliability, ADI intends to grow these markets. ADI has proven itself as a dependable Air Service provider and brings a commitment to work with these communities to address their travel needs. Integrity of service that has been a hallmark of the ADI Charter operation and we look forward to extending our reach into the Scheduled service arena.
Respectfully Submitted: February 29, 2016______________________Mickey BowmanVice President of Airline ServicesAerodynamics, Inc.
About Our Proposal: Conclusion
Equals a bright future for air service in Kearney, North Platte and Scottsbluff!
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Corporate114 TownPark DriveSuite 500Kennesaw, GA 30144