SPICEWIND PACIFIC
AIRLINE
Republic of the Marshall Islands
A regional airline providing daily service to the Atolls and
Islands of Micronesia, and the Central Pacific,
To whom it may concern:
We require a minimum of two turbo prop aircraft to begin actual operations of
SPA, at our earliest opportunity. Marshall Islands requires serious air service.
These aircraft (turbo prop) could be anywhere from 15 seats to 35 seats. The initial
two A/C would be utilized primarily for inter island operations within the RMI.
Within 6 to 8 months we would also require one larger turbo prop of 35 to 50 seat
capacity that will have the range capabilities for our planned extended flight
operations from Majuro Atoll to Kiribasi (Gilbert Islands), Cook, and Ellice
Islands with some flights continuing to Fiji Group, and Samoa. Also, including
flights to outlying points such as: Kosrae, Eniwetok Atoll, and Ponape from
Kwajalein.
pp 1
The above Outer Island routes have proven to be quite lucrative in the past.
Traffic is heavy, and demand is solid on a daily basis. The smaller turbo props can
make 3 to 4 rnd trips per day to many of the Outer Atolls from Majuro, and/or
Kwajalein Atoll.
Majuro and Kwajalein are hubs for not only the heavy outgoing and incoming
traffic, but also serve as our refueling bases.
ABBREVIATED PRO FORMA
For the Jetstream 32 A/C, (not necessarily the aircraft of choice) we have used 18
passengers as an average load factor. (We expect to also utilize one full Cargo
Jetstream 32 A/C – see back page).
All of the various Outer Island airports will have different fare rates due to
distance, and average passenger movement on a weekly basis.
We will use an average fare of $75.00 one way, loosely based upon the last known
fares used by RMI Airlines. SPA can extrapolate the following revenue:
(1) If one Jetstream 32, carrying 18 passengers makes 3 round trips per day
between Majuro and 3 separate outer Atolls. It could expect an average
minimum gross revenue of $5,000 to $8,000 for that day.
(2) The other Jetstream 32 would be flying to other Atolls on the same day.
However, the revenue would remain approximately the same because the
fares are based upon distance/flight time.
(3) If we take an average of $7,000 gross revenue per day for each of the A/C,
and a 4 day week for each, we could expect approximately $56,000 over a 4
to 5 day week, or over $2,688,000 gross per year ((not including the
possibility of a Cessna Conquest A/C (8 seats)) taking up the slack, and/or
charter flights).
(4) There is a distinct possibility that we will also have a Gulfstream1 (19 seat)
Turbo Prop A/C in operation during our start-up period. The Conquest and
the Gulfstream 1 would add approximately $8,000 in revenues making two
trips per day in a five day week. Above fares will add about $1,920,000
revenue providing a total of $4,608,000 for the year.
Pp2
(Cont.)
Charter flights between the 4 A/C could provide another gross revenue of at least
$1,000,000.
(5) I am quite sure that operating two to three 19 seat A/C in the Marshall
Islands will generate a minimum of $20,000 per week. This does not include
cargo income, special emergencies (ambulance services), or other
government charters.
(6) With two BAE Jetstream 32 A/C, and one Gulfstream A/C, we are looking
at a minimum gross revenue of $3,000,000 the first full year.
I believe we would have to bring in (within 6 months) one or two additional
Jetstream 32 full cargo A/C. Cargo requirements will be extensive, and the need, as
well as the revenue would increase rapidly. They would be utilized primarily to
transport fresh fish from the outer islands into Majuro, and packed aboard our
Boeing 737-500 for further shipment to Japan, Hawaii, and California , etc. The
fresh fish supply provides us with a one way guaranteed revenue for the 737- 500.
Majuro is an international airport, and fuel costs are about the same as any other
airport across the Pacific Basin.
However, our operations will have the advantage of making Kwajalein Atoll our
major refuel point during each day’s flight schedule, whenever possible. Fuel on
Kwajalein is available through a U.S. Defense Contractor (Kwajalein is a U.S.
Missile Testing Facility), and much cheaper than on Majuro.
Our 737-500 will also take advantage of the above by loading up on fuel at
Kwajalein prior to all of its flights to Japan, Hawaii, or Guam.
We will be a Marshall Islands Corporation, as well as a U.S. LLC., which allows
us to enter Kwajalein, refuel, stay overnight, and even visit the base PX. At any
rate, it makes things much easier, along with cheaper fuel.
Pp3
(Cont.)
ADVANCED OPERATIONS INCORPORATING Jetstream 32 & 737-500 A/C
On August 26th I spoke with my friends in the Marshall Islands, and they are
excited about the possibility of bringing in a couple of Jetstream 32s. We also
spoke of two additional Cargo Jetstream 32s for hauling fresh fish.
These two cargo aircraft would be coordinated together with Sea Resources
Pacific, Our fishing subsidiary, and make daily trips to various outer islands to
pick-up fresh fish, lobster, etc., caught by the local people on those outer islands.
Each aircraft will carry 5,000 lbs. of cargo (fish incoming – consumer products
outgoing) @ approximately $.85 per lb. A revenue of about $4,000 to over $6,000
daily, and bring in $12,600 to $16,000 per week for each aircraft, or approximately
$24,000 to $32,000 per week for both aircraft. About $1,440,000 gross revenue.
(Does not include charters for special cargo flights or emergency ambulance
flights).
The fish would be processed at Majuro for either fresh, or frozen shipment. Fresh
product would be packed and transferred to our Boeing 737-500 for further
shipment to Japan, Hawaii, and California. Product to be shipped as frozen would
be packed and placed into a Matson Line Container for shipment to Port of Los
Angeles-Long Beach, California.
Our 737-500 should initially make a total of at least 6 to 8 round trips to Japan,
Hawaii, and/or California transporting fresh fish and other seafood primarily for
the Costco Stores in California and Hawaii, as well as Sam’s Club Stores, etc.
737-500 will carry about 40,000 lbs. Our rate will be somewhere between $2.50 to
$3.50 per lb. Plus revenue from up to 50, 1st class passengers. Fares would average
$450 one way from Majuro to Honolulu, and $400 one way from Honolulu to the
Los Angeles area. A quick summary for gross revenues derived from the 737-500
operation would be as follows: pp4
(Cont.)
One trip carrying 40,000 lbs. at an average of $3.00 per lb. provides gross revenue
of $110,000. With approximately 40 passengers each paying round trip fares
(Majuro to California and return to Majuro) of about: $840.00 will provide about
$34,000, or a total gross revenue of around $144,000, (excluding any back haul
cargo). 8 trips per month will provide gross revenue of approximately $1,152,000
per month, or $13,824,000 per year. (Does not include back haul cargo).
Available back haul cargo could be FedEx, UPS, USPS, Defense Dept. cargo to
Kwajalein Atoll, Private business concerns in Majuro, etc.
Within the first full year of operations we expect to enter into a Joint Venture
Partnership with a Japanese Tuna Fishing Company that will begin fishing
operations with six Tuna Long liners under our permits and would begin providing
approximately 200tons of fresh sashimi grade tuna per month.
At this time it would be necessary to bring in our 2nd
Boeing 737-500 for
operations. This 737-500 would make a minimum of 6 round trips to Haneda,
(Tokyo) and/or Narita each month.
All operations of Boeing 737-500 will be under the coordination and management
of Spicewind Pacific Airline, and in conjunction with Sea Resources Pacific
Fishing Company LLC.
We also look forward to working closely with JAL (which is presently negotiating
with RMI for reciprocal landing rights between Narita/Haneda and Majuro). These
reciprocal rights are very important for us to obtain passenger entry into, and out of
Japan, and most importantly, providing us access to the Tsukiji Auction Market in
Tokyo.
JAL ran 4 test flights last year with Japanese tourists from Tokyo to Majuro, and
return. It is expected that Japan and RMI will provide an open air route.
Pp5
(Cont.)
The timing could not be better to begin our operations. With the aircraft in place,
sufficient operating capital available, and if we are able to begin within the next 12
weeks; It would place us in the forefront of any others, providing us the business
opportunities, and the development of our projects, escalating at a rapid rate.
The Missile Base at Kwajalein is gearing-up for a new program of expanded
missile testing, and will require increased air cargo transportation, along with
charters and other air services. The “custom and value packed” fish marketing
business is growing very fast, Majuro now has a total of 3 new tuna loin processing
facilities (not including ours) with Taiwanese and South Korean tuna purse seiners
unloading daily. Our Coconut Oil Industry will be expanding soon into the
production of important Alternative Fuels, such as Bio-Diesel, and Bio-Jet fuels.
As well as our proposed International Air Services, that I am intent upon
implementing, beginning with two to three Combination Cargo/Passenger 737-500
(or better) aircraft. We also expect our tourism business to expand dramatically
once our small turbo prop aircraft begin operations. We will require additional twin
engine and larger turbo prop aircraft in short order. It is important that we move
forward as quickly as possible in order to take advantage of the above mentioned
opportunities, and the potential involved.
Smokey
Gunther W. Mothes, Director Mgr.
240 Suffolk Street
Corona, CA 92882 U.S.A.
Tel: 1-951-737-4577
Pp6
Pp6
Pp7 BEA JETSTREAM 32
Boeing 737-500 Combi Cargo/Pax
Serving Majuro, Kwajalein, Japan, Hawaii, and California
Spicewind Pacific Airline
Serving The Atolls and Islands of the
Marshall Islands
Fokker F50
Spicewind Pacific Airline Plans To Purchase Two Of These Aircraft
Aircraft Will Carry Over 10,000 lbs. Of Cargo Or 52 Passengers
We Are Also Negotiating For The Two FedEx Cargo Aircraft Shown Below