BEFORE THE DEPARTMENT OF TRANSPORTATION | WASHINGTON, D.C. ESSENTIAL AIR SERVICE AT Chadron, Nebraska UNDER 49 U.S.C. § 41731 ET SEQ. BY ORDER 2020-11-8 | DOT-OST-2000-8322 Proposal to Provide Subsidized Correspondence with regard Essential Air Service to this document should be By Order 2020-11-8, the Department addressed to: requested proposals from carriers Stan Little interested in providing Essential Air CHAIRMAN & CEO Service to Chadron, Nebraska. Pursuant 101 North Riverside Drive; Suite 211 to that Order, Southern Airways Express Pompano Beach, Florida 33062 LLC (“Southern”) cordially submits this (901) 672-7820 proposal. iFlySouthern.com America’s Most Reliable Commuter Airline Southern Airways Express hereby offers a proposal to become the air service provider at the Chadron Municipal Airport. The proposal is for a period of two years. The Southern Story In less than eight years, Southern Airways for acquisition. On February 29, 2016, Southern Express has become one of the largest acquired Sun Air Express. Throughout that year, commuter airlines in America and a leader in Southern worked closely with those incumbent the field of Essential Air Service. Of the nearly EAS communities to facilitate rebranding and 200 daily flights operated by Southern, almost to renew the contracts for another bid cycle. half are contracted through the Essential Air In the process, Southern gained additional EAS Service program. Much of Southern’s success contracts in the region and also in the State of can be attributed to targeted expansion to gain Arkansas. scale and stability, industry-leading initiatives to With Southern’s Essential Air Service markets permanently solve the pilot shortage facing rural receiving near-perfect completion rates and communities, and the operation of the most passenger counts growing to record levels, reliable model of 9-seat aircraft in existence. the opportunity to make an acquisition and However, it is the close partnerships developed solidify the brand in the commuter marketplace through years of community networking and presented itself once again. Mokulele Airlines in engagement that have led not only to countless Hawai‘i was very similar to Southern. Each airline mutually-beneficial cooperatives but also to the had roughly the same number of employees Essential Air Service regulatory compliance in and flew the same number of daily flights, but each community that Southern currently serves. what was most compatible with Southern was Southern’s first flight departed from Memphis, the synergy of the aircraft type. Both airlines Tennessee, in June of 2013. Launching with just operated the reliable, efficient, and proven two airplanes and three pilots, Southern would Cessna Caravan. The combination of the two grow to have a respected regional presence in companies in 2019 was a perfect fit. With this the Gulf South. Just a short time later, as the acquisition, Southern has become one of the airline was looking for an expansion opportunity, largest and most-respected commuter airlines in a commuter airline with Essential Air Service the country. contracts in the mid-Atlantic became available Spring 2016: Southern doubles in size Winter 2017: Southern doubles in size Winter 2019: Southern doubles in size “Voted as the best Specialty & Leisure Airline in the USA” — Trip Advisor, April 2019 SOUTHERN’S PROVEN MODEL versus the REALITIES OF CHADRON For many years, Southern Airways subscribed to the business model that success in Essential Air Grand Caravan, Southern has demonstrated the Service communities comes from scale. A carrier ability to offer record-setting passenger counts generally cannot provide consistent and reliable across many of its cities. Southern’s Hawai‘i brand, service to only one or two cities in a regional Mokulele Airlines, has used the Pilatus PC-12 on footprint. It needs multiple aircraft, dozens of many specialty routes that required higher speed pilots, and full support services to be able to and pressurization. handle the daily issues that come from operating an airline. For Chadron, Southern is proposing all flights be operated on the KingAir 200. Chadron is a Through Southern’s acquisition of Mokulele community that should be served by a proven Airlines, Southern has learned how stand-alone a twin-engine aircraft, to better handle the high operations, like our route in Imperial, California, winds and extreme conditions of the Rocky can perform just as well as those in areas where Mountains and Great Plains. large scale has been obtained. Before COVID, at Imperial, we achieved a 99.6% reliability rate, with Like the Caravan, the Beechcraft KingAir has over 90% on-time performance—the best of any been a workhorse of the industry for over thirty airline in California! years. And unlike the Piaggio and Metroliner, it is The key to operating near-perfect completion still in production – making parts and expertise rates in stand-alone communities is the readily available. Both the Caravan and the KingAir availability of spare aircraft and reserve pilots are powered by the versatile and proven Pratt based in the community. Southern is committed & Whitney PT6A turbine engine, the engine of to having at least one spare aircraft based at choice for demanding, high-cycle/high-power Chadron to maintain the airline’s 99% system-wide applications. completion rate. ABOUT THE SOUTHERN AIRCRAFT Having multiple models of aircraft allows for Southern to customize the flight solutions based on the needs of the community. With the Cessna Southern Solves The National Pilot Shortage Entire aircraft fleets have been retired in the past decade, and many American carriers have ceased operations as a direct and proximate result of not being able to recruit and retain adequate numbers of crew FACEBOOK.COM/IFLYSOUTHERN members. INSTAGRAM.COM/FLYSOUTHERN Southern recognized this issue early and began taking steps to position itself to stay ahead of the competition. PINTEREST.COM/IFLYSOUTHERN Southern’s Chairman served as a member of the TWITTER.COM/IFLYSOUTHERN Department of Transportation Working Group to study YOUTUBE.COM/USER/IFLYSOUTHERN ways to address these issues and to help alleviate the problems related to rural air service. Since that time, Southern has implemented groundbreaking programs to recruit and retain quality pilots, including the Southern Senior Pilot Leadership Program and the Southern Airways Pilot Cadet Program. In addition, Southern has a full-time recruiting staff dedicated to bringing the “best and the brightest” to Southern Airways. The pilot corps numbers are among the best in the industry and promise a very positive 2020 and beyond. As demonstrated by Southern’s industry-leading controllable completion rates, since November of 2017, Southern has rarely cancelled a flight due to crew availability. Southern’s Spokes-singer Sonny McFly performs Though the Covid-19 crisis has likely put the pilot the airline’s jingle in its television and radio shortage on hold for several months, there’s little commercials as well entertaining at live doubt that it will return. Fortunately, Southern has events in communities served by Southern already invested in a permanent solution. Southern Airways By the Numbers IN THE GULF: Destin, Fla. El Dorado, Ark. 218 Daily Departures Harrison, Ark, Hot Springs, Ark. 30,000 Monthly Passengers Key West, Fla. Nashville, Tenn. 490 Employees Tampa, Fla. 200 Pilots 35 Aircraft IN CALIFORNIA: Imperial/El Centro IN HAWAI‘I: Hana Kapalua 37 Kalaupapa Lāna‘i City Amazing Destinations Molokai Waimea-Kohala Kona IN THE MID-ATLANTIC: 10 HUB/FOCUS CITIES: Altoona, Penn. Baltimore New York City Bradford, Penn. Dallas Memphis DuBois, Penn. Honolulu Nantucket Lancaster, Penn. Kahului Palm Beach Morgantown, W.Va. Los Angeles Pittsburgh IN NEW ENGLAND Boston/Norwood, Mass Hyannis, Mass. New Bedford, Mass. Morgantown, W.Va. Providence, R.I. IN NEW YORK East Hampton Montauk Shelter Island ALL MAJOR DISTRIBUTION CHANNELS Southern invests a considerable portion of its marketing budget to promote its service to traditional travel agents and to internet shoppers who purchase tickets through online travel agencies. MAJOR GLOBAL MAJOR ONLINE TRAVEL DISTRIBUTION SYSTEMS: AGENCY WEBSITES: Sabre Expedia Amadeus Travelocity Worldspan Orbitz Galileo Kayak Travelport Priceline Apollo Cheaptickets Lancaster, Penn. Southern’s interline partner, American Airlines. In spring 2018, Southern Airways became an interline partner of American Airlines. This means that traveling from the hometown airport to any American Airlines destination now tops any other air travel option. DESTINATIONS NEWFOUNDLAND PRINCE GEORGE ST. JOHN’S EDMONTON 8:30 A.M. BRITISH COLUMBIA 3 A.M. AK 4 A.M. ALBERTA SASKATOON MANITOBA FAIRBANKS COMOX SASKATCHEWAN ONTARIO CANADA VANCOUVER KELOWNA CALGARY NEW ABBOTSFORD QUEBEC CITY BELLINGHAM BRUNSWICK REGINA ANCHORAGE VICTORIA QUEBEC JUNEAU WINNIPEG SEATTLE/TACOMA WA KETCHIKAN SPOKANE THUNDER BAY NOVA ME SCOTIA GULF YAKIMA MONTREAL BANGOR OF ALASKA PASCO PORTLAND MISSOULA ND BURLINGTON (SERVICE BEGINS OTTAWA MT MARQUETTE PORTLAND JUNE 7TH) BISMARCK FARGO MN VT BILLINGS NH BOZEMAN NY MANCHESTER EUGENE REDMOND CENTRAL WATERTOWN WI WISCONSIN TRAVERSE CITY TORONTO OR MINNEAPOLIS/ SYRACUSE BOSTON ID ROCHESTER ALBANY MA ST PAUL GREEN BAY MI HAMILTON PROVIDENCE APPLETON MARTHA’S VINEYARD MEDFORD BUFFALO ITHACA CT RI NANTUCKET SD NEW HAVEN KLAMATH FALLS BOISE SUN VALLEY ROCHESTER LA CROSSE FLINT HARTFORD/SPRINGFIELD PACIFIC OCEAN RAPID CITY ERIE NEWBURGH WHITE PLAINS/WESTCHESTER