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EssentialAirServiceProposal

Altoona,PA

DOTOST200211446

Beckley,WV

DOTOST19972761

Clarksburg/FairmontWV

DOTOST200520736

Dubois,PA

DOTOST200417617

Greenbrier/WhiteSulphurSprings,WV

DOTOST200315553

Johnstown,PA

DOTOST200211451

Morgantown,WV

DOTOST200520735

Parkersburg,WV/Marietta,OH

DOTOST200520734

Staunton,VA

DOTOST200211378

May20th,2016

AboutBoutiqueAir
OurStory
Headquartered in San Francisco, California,BoutiqueAirhasbeeninoperationsince2007.We
began by flying fire surveillance missions for the U.S. Forestry Service and Bureau of Land
Management. We evolved to provide air charter services acrossthewestcoastwithourfleetof
Pilatus and Cessna aircraft. As a charter operator we have received certifications from both
industryleadingsafetyorganizations,ARG/USandWyvern.BoutiqueAiremployspilotsthatare
highly experienced and hold the most advanced FAA ratings a key reason for our continued
perfectsafetyrecord.

In July of 2012, Boutique Air applied for commuter operating authority from the Department of
Transportation. We quickly passed tests on financial fitness and management competency,
receivingauthorityforscheduledserviceinJanuaryof2014.

WebeganflyingscheduledservicebetweenLosAngelesandLasVegasinJanuaryof2014.

We have worked to develop effective distribution channels. We have connections in place with
all of the major Global Distribution Systems (GDSs), which travel agents use to access the
market. You will find us on Worldspan and Apollo (Travelport), Sabre, and Amadeus. In
addition, we are on the major Online Travel Agencies (OTAs), including Expedia, Travelocity,
Priceline,Orbitz,CheapTickets,andCheapOAir.

EAS Contracts
OnApril22,2014BoutiqueAirreceiveditsfirstEAScontractwhentheDOTselectedtheairline
toprovideservicebetweenClovisandDFW.Sincethen,wehavecontinuedourtrackrecordof
successandnowserve11differentEAScommunities,andoperateoutof21differentairports.
ContinuingonapathofsuccessfulgrowthintheEASmarket,BoutiqueAirwillbeginserviceto
thecommunitiesofMcCook,NebraskaandThiefRiverFalls,Minnesotathissummer.

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

WhatPeopleAreSayingAboutBoutiqueAir

Boutique Air PC-12, one of the


best turboprop aircraft
on the market!... Give them a try!!
-Tarek A. via Yelp.com

We also feel that the PC-12 aircraft bid by Boutique Air presents the
safest and most
comfortable option for the traveling public.
-Hon. Mayor David Lansford in Recommendation Letter
City of Clovis, NM
Flew with Boutique from LA to Vegas and back and must say I was extremely surprised. From
the ease of check-in, To the flight itself,
the whole process was great
. Price was
competitive with any other airline out there. I plan on flying boutique for all my Vegas outings,
and may even look into renting the whole plane for a group trip. Thanks Boutique!
-Kevin J. via Yelp.com
WefindthatBoutiqueAirisfit,willingandabletooperateasacommuteraircarrier,
and
capableofprovidingreliableEssentialAirService...
SusanL.KurlandinClovisEASAward
Asst.Sec.forAviationandInternationalAffairs
USDOT

Right now Boutique Air is


a very cool secret.

-Examiner.com

Flew with Boutique Air from LA to Las Vegas round trip and it was a great experience.
Good
service, on time departures, and a hassle free and nice way to travel in general. A really
nice pilot and copilot as well.
-Patrick S. via Yelp.com

Smoothflightsandpersonablestaff
arepartoftheexperience

ClovisNewsJournal

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

Route Map

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

Aircraft:
BoutiqueAircurrentlyoperatesamodernfleetofPilatusPC
12andBeechcraftKingAir350
aircraft.AllflightsareflownbyCaptainswithover1,200hoursofflightexperienceandan
instrumentrating.Whilewearecertifiedtoflysinglepilotweopttoflywithatwopilotcrew.
BoutiqueAirensurespilotsprovidealevelofcustomerservicebeyondthatofnormal
commercialairlines.
8PassengerExecutiveConfigurationOR9PassengerCommuterConfiguration
PressurizedCabin
PowerOutlets
EnclosedLavatory

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

HistoricPassengerTraffic

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

Proposal
Overview
Our proposals would be flown in eight or nineseat, modern,pressurizedPilatusPC12aircraft.
Thetermistwoyears.

In order to increase brand recognition in the communities, Boutique Air will spend at least
$20,000 per year in each EAS community it is selected for on advertising & marketing to help
ensure that air service for the community is a success. We will utilize a combination of radio,
print,billboard,TV,andinternetadvertising.

Special Note on Service Start Date


BoutiqueAirwillbeginservice6090daysaftertheDOTissuestheorderselectingBoutiqueAir
astheEASCarrier.Boutiqueairwillstartserviceasearlyasoperationallypossible.

Special Note on Interline


BoutiqueAirisinactiveconversationregardinganinterlineandbaggageagreementwithone
ofthemajorairlines.

CommunityInput

Shortly after the bids are complete, Boutique Air will schedule meetings to meet with airport
and/or city officials. This will allow us to answer any questions and provide additional
information.

While we cant promise we will be able to implement everyones suggestions, we welcome


feedback from all of the participating EAS communities, as well as anyone who may have an
interest in the proposed flights. What wecanpromiseisthatwewilllistentoyourfeedback,and
giveittheattentionandconsiderationitdeserves.

Withrespectandappreciation,

ShawnSimpson
CEO

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

Altoona, PA
Option 1: 26 Weekly NonStop RTs AOO to BWI

Operations

ScheduledFlights

2,712

CompletedFlights(98%)

2,658

ScheduledBlockHours

2,040

ScheduledSeats

21,696

ScheduledASMs

2,538,432

Revenue

12,600

Passengers

AverageFare

$64

FareRevenue

$806,400

TotalRevenue

$806,400

Expenses

Fuel

$714,000

Ownership

$960,000

MaintenanceandReserves

$877,200

Staff

$145,600

MarketingandDistribution

$20,000

OtherIndirectCosts

$12,000

TotalCosts

$3,180,971

$118,729

ProfitElement

5.0%

Margin

TotalSubsidy

$2,493,300

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

Altoona, PA
Option 2:
26WeeklyNonStopRTsAOOBWI&PIT(2/2DailyRTs)
Operations

ScheduledFlights

2,688

CompletedFlights(98%)

2,636

ScheduledBlockHours

1,944

ScheduledSeats

21,504

ScheduledASMs

2,365,440

Revenue

13,000

Passengers

AverageFare

$67

FareRevenue

$871,000

TotalRevenue

$871,000

Expenses

Fuel

$705,953

Ownership

$880,000

MaintenanceandReserves

$835,920

Staff

$213,840

MarketingandDistribution

$20,000

OtherIndirectCosts

$24,000

TotalCosts

$3,328,816

$122,891

ProfitElement

5.0%

Margin

TotalSubsidy

$2,580,707

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

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Beckley, WV
Option 1:
24WeeklyNonStopRTsBKWtoATL
Operations

ScheduledFlights

2,496

CompletedFlights(98%)

2,446

ScheduledBlockHours

4,032

ScheduledSeats

19,968

ScheduledASMs

6,809,088

Revenue

7,500

Passengers

AverageFare

$102

FareRevenue

$765,000

TotalRevenue

$765,000

Expenses

$1,128,960

Fuel

Ownership

MaintenanceandReserves
Staff

MarketingandDistribution

OtherIndirectCosts

TotalCosts

$960,000
$1,733,760
$145,600
$20,000
$18,000

$4,704,503

$196,975

ProfitElement

$4,136,478

TotalSubsidy

5.0%

Margin

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

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Beckley, WV
Option 2:
24WeeklyNonStopRTsBKWATL&BWI(2/2DailyRTs)
Operations

ScheduledFlights

2,496

CompletedFlights(98%)

2,448

ScheduledBlockHours

3,648

ScheduledSeats

19,968

ScheduledASMs

6,000,384

Revenue

10,500

Passengers

AverageFare

$99

FareRevenue

$1,039,500

TotalRevenue

$1,039,500

Expenses

$1,135,680

Fuel

Ownership

MaintenanceandReserves
Staff

MarketingandDistribution

OtherIndirectCosts

TotalCosts

$960,000
$1,568,640
$291,200
$20,000
$30,000

$4,774,706

$186,760

ProfitElement

$3,921,966

TotalSubsidy

5.0%

Margin

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

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Clarksburg/Fairmont, WV
Option 1:
24WeeklyNonStopRTsCKBtoBWI
Operations

ScheduledFlights

2,496

CompletedFlights(98%)

2,446

ScheduledBlockHours

2,568

ScheduledSeats

19,968

ScheduledASMs

3,813,888

Revenue

13,000

Passengers

AverageFare

$89

FareRevenue

$1,157,000

TotalRevenue

$1,157,000

Expenses

Fuel

$898,800

Ownership

$960,000

MaintenanceandReserves
Staff

MarketingandDistribution

OtherIndirectCosts

TotalCosts

$12,000

$3,630,769

$1,104,240
$145,600
$20,000

$123,688

ProfitElement

$2,597,457

TotalSubsidy

5.0%

Margin

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

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Clarksburg/Fairmont, WV
Option 2:
24WeeklyNonStopRTsCKBBWI&PIT(2/2DailyRTs)
Operations

ScheduledFlights

2,496

CompletedFlights(98%)

2,448

ScheduledBlockHours

2,064

ScheduledSeats

19,968

ScheduledASMs

2,735,616

Revenue

13,000

Passengers

AverageFare

$79

FareRevenue

$1,027,000

TotalRevenue

$1,027,000

Expenses

Fuel

$743,366

Ownership

$960,000

MaintenanceandReserves
Staff

MarketingandDistribution

$887,520
$291,200
$20,000

OtherIndirectCosts

TotalCosts

$3,490,315

$24,000

$123,166

ProfitElement

$2,586,481

TotalSubsidy

5.0%

Margin

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

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Dubois, PA
Option 1:
24WeeklyNonStopRTsDUJtoBWI
Operations

ScheduledFlights

2,496

CompletedFlights(98%)

2,446

ScheduledBlockHours

2,496

ScheduledSeats

19,968

ScheduledASMs

3,614,208

Revenue

13,500

Passengers

AverageFare

$75

FareRevenue

$1,012,500

TotalRevenue

$1,012,500

Expenses

Fuel

$873,600

Ownership

$960,000

MaintenanceandReserves
Staff

MarketingandDistribution

OtherIndirectCosts

TotalCosts

$12,000

$3,560,947

$1,073,280
$145,600
$20,000

$127,422

ProfitElement

$2,675,869

TotalSubsidy

5.0%

Margin

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

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Dubois, PA
Option 2:
24WeeklyNonStopRTsDUJBWI&PIT(2/2DailyRTs)
Operations

ScheduledFlights

2,496

CompletedFlights(98%)

2,448

ScheduledBlockHours

2,040

ScheduledSeats

19,968

ScheduledASMs

2,655,744

Revenue

13,500

Passengers

AverageFare

$66

FareRevenue

$884,250

TotalRevenue

$884,250

Expenses

Fuel

$735,622

Ownership

$960,000

MaintenanceandReserves
Staff

MarketingandDistribution

$877,200
$291,200
$20,000

OtherIndirectCosts

TotalCosts

$3,439,869

$24,000

$127,781

ProfitElement

$2,683,400

TotalSubsidy

5.0%

Margin

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

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Greenbrier/White Sulphur Springs,WV


Option 1:
24 Weekly Non Stop RTs LWB ATL &PIT(NovApr 2/2 Daily RTs), 42
WeeklyNonStopRTsLWBATL&PIT(MayOct3/4DailyRTs)withKingAir350

Operations

ScheduledFlights

3,432

CompletedFlights(98%)

3,364

ScheduledBlockHours

4,572

ScheduledSeats

30,888

ScheduledASMs

8,247,096

Revenue

19,100

Passengers

AverageFare

$142

FareRevenue

2,596,500

TotalRevenue

$2,596,500

Expenses

2,675,290

Fuel

Ownership

MaintenanceandReserves
Staff

MarketingandDistribution

OtherIndirectCosts

TotalCosts

960,000
2,537,460
291,200
20,000
30,000

$7,847,630

$262,557

ProfitElement

$5,513,687

TotalSubsidy

5.0%

Margin

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

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Greenbrier/White Sulphur Springs,WV


Option 2:
24 Weekly Non Stop RTs LWB ATL &BWI(NovApr 2/2 DailyRTs),42
WeeklyNonStopRTsLWBATL&BWI(MayOct3/4DailyRTs)withKingAir350

Operations

ScheduledFlights

3,432

CompletedFlights(98%)

3,364

ScheduledBlockHours

4,860

ScheduledSeats

30,888

ScheduledASMs

8,904,168

Revenue

21,000

Passengers

AverageFare

$161

FareRevenue

3,381,000

TotalRevenue

$3,381,000

Expenses

2,760,480

Fuel

Ownership

MaintenanceandReserves
Staff

MarketingandDistribution

OtherIndirectCosts

TotalCosts

960,000
2,697,300
291,200
20,000
30,000

$8,129,190

$237,410

ProfitElement

5.0%

Margin

TotalSubsidy

$4,985,600

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

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Greenbrier/White Sulphur Springs,WV


Option 3:
24 Weekly Non Stop RTs LWB ATL &BWI(NovApr 2/2 DailyRTs),36
WeeklyNonStopRTsLWBATL&BWI(MayOct2/4DailyRTs)withKingAir350

Operations

ScheduledFlights

3,120

CompletedFlights(98%)

3,059

ScheduledBlockHours

4,320

ScheduledSeats

28,080

ScheduledASMs

7,868,016

Revenue

19,250

Passengers

AverageFare

$164

FareRevenue

3,143,750

TotalRevenue

$3,143,750

Expenses

2,467,584

Fuel

Ownership

MaintenanceandReserves
Staff

MarketingandDistribution

OtherIndirectCosts

TotalCosts

960,000
2,397,600
291,200
20,000
30,000

$7,423,967

$214,011

ProfitElement

5.0%

Margin

TotalSubsidy

$4,494,228

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

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Johnstown,PA
Option 1:
28WeeklyNonStopRTsJSTBWI
Operations

ScheduledFlights

2,904

CompletedFlights(98%)

2,846

ScheduledBlockHours

2,424

ScheduledSeats

23,232

ScheduledASMs

3,229,248

Revenue

13,500

Passengers

AverageFare

$75

FareRevenue

$1,012,500

TotalRevenue

$1,012,500

Expenses

Fuel

$848,400

Ownership

$960,000

MaintenanceandReserves
Staff

MarketingandDistribution

OtherIndirectCosts

TotalCosts

$12,000

$3,559,307

$1,042,320
$145,600
$20,000

$127,340

ProfitElement

$2,674,148

TotalSubsidy

5.0%

Margin

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

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Johnstown, PA
Option 2:
28WeeklyNonStopRTsJHWBWI&PIT(2/2DailyRTs)
Operations

ScheduledFlights

2,928

CompletedFlights(98%)

2,868

ScheduledBlockHours

2,112

ScheduledSeats

23,424

ScheduledASMs

2,518,080

Revenue

13,900

Passengers

AverageFare

$70

FareRevenue

$973,000

TotalRevenue

$973,000

Expenses

Fuel

$763,442

Ownership

$960,000

MaintenanceandReserves
Staff

MarketingandDistribution

$908,160
$291,200
$20,000

OtherIndirectCosts

TotalCosts

$3,604,475

$24,000

$131,574

ProfitElement

$2,763,049

TotalSubsidy

5.0%

Margin

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

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Morgantown, WV
Option 1:
28WeeklyNonStopRTsMGWIAD&PIT(2/2RTsDaily)
Operations

ScheduledFlights

2,928

CompletedFlights(98%)

2,868

ScheduledBlockHours

2,040

ScheduledSeats

23,424

ScheduledASMs

2,365,824

Revenue

14,750

Passengers

AverageFare

$69

FareRevenue

$1,017,750

TotalRevenue

$1,017,750

Expenses

Fuel

$735,622

Ownership

$960,000

MaintenanceandReserves
Staff

MarketingandDistribution

$877,200
$291,200
$20,000

OtherIndirectCosts

TotalCosts

$3,785,710

$24,000

$138,398

ProfitElement

$2,906,358

TotalSubsidy

5.0%

Margin

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

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Morgantown, WV
Option 2:
36WeeklyNonStopRTsMGWIAD&PIT(2/3DailyRTs)
Operations

ScheduledFlights

3,648

CompletedFlights(98%)

3,574

ScheduledBlockHours

2,424

ScheduledSeats

29,184

ScheduledASMs

2,722,944

Revenue

17,000

Passengers

AverageFare

$64

FareRevenue

$1,088,000

TotalRevenue

$1,088,000

Expenses

Fuel

$880,505

Ownership

$960,000

MaintenanceandReserves
Staff

MarketingandDistribution

OtherIndirectCosts

TotalCosts

$24,000

$4,156,575

$1,042,320
$291,200
$20,000

$153,429

ProfitElement

$3,222,004

TotalSubsidy

5.0%

Margin

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

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Parkersburg, WV / Marietta, OH
Option 1:
26WeeklyNonStopRTsPKBBWI&PIT(2/2RTsDaily)
Operations

ScheduledFlights

2,688

CompletedFlights(98%)

2,636

ScheduledBlockHours

2,664

ScheduledSeats

21,504

ScheduledASMs

3,827,712

Revenue

15,000

Passengers

AverageFare

$80

FareRevenue

$1,200,000

TotalRevenue

$1,200,000

Expenses

Fuel

$957,953

Ownership

$960,000

MaintenanceandReserves
Staff

MarketingandDistribution

OtherIndirectCosts

TotalCosts

$24,000

$4,047,352

$1,145,520
$291,200
$20,000

$142,368

ProfitElement

$2,989,720

TotalSubsidy

5.0%

Margin

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

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Staunton, VA
Option 1:
28WeeklyNonStopRTsSHDBWI&ATL(2/2RTsDaily)
Operations

ScheduledFlights

2,928

CompletedFlights(98%)

2,868

ScheduledBlockHours

4,176

ScheduledSeats

23,424

ScheduledASMs

6,804,672

Revenue

17,000

Passengers

AverageFare

$105

FareRevenue

$1,776,500

TotalRevenue

$1,776,500

Expenses

$1,575,605

Fuel

Ownership

MaintenanceandReserves
Staff

MarketingandDistribution

OtherIndirectCosts

TotalCosts

$960,000
$1,795,680
$291,200
$20,000
$30,000

$5,406,890

$181,519

ProfitElement

$3,811,909

TotalSubsidy

5.0%

Margin

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

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Staunton, VA
Option 2:
28WeeklyNonStopRTsSHDBWI
Operations

ScheduledFlights

2,904

CompletedFlights(98%)

2,846

ScheduledBlockHours

2,424

ScheduledSeats

23,232

ScheduledASMs

3,159,552

Revenue

15,000

Passengers

AverageFare

$59

FareRevenue

$885,000

TotalRevenue

$885,000

Expenses

Fuel

$914,575

Ownership

$960,000

MaintenanceandReserves
Staff

MarketingandDistribution

OtherIndirectCosts

TotalCosts

$12,000

$3,518,308

$1,042,320
$145,600
$10,000

$131,665

ProfitElement

5.0%

Margin

TotalSubsidy

$2,764,974

548MarketSt,Suite73298|SanFrancisco,CA94109|t.415.449.0505|f.415.738.7671

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