Essential Air Service Proposal

Ogdensburg, NY

DOT-OST-1997-2842

May 15, 2024

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About Boutique Air
Our Story

Headquartered in San Francisco, California, Boutique Air has been in operation since 2007. 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 across the west coast with our fleet of Pilatus and Beechcraft
aircraft.

In July of 2012, Boutique Air applied for commuter operating authority from the Department of
Transportation. Boutique Air began flying scheduled service between Los Angeles and Las Vegas in
January of 2014.

On April 22, 2014 Boutique Air received its first EAS contract when the DOT selected the airline to
provide service between Clovis, New Mexico and Dallas/Ft. Worth, Texas. Since then, we have
continued our track record of success, providing reliable and high quality air transportation to over
twenty EAS communities over the past 9 years.

Our Aircraft

Boutique Air operates a modern fleet of Pilatus PC­-12 and Twin-Engine Piaggio P180 aircraft. Boutique
Air aircraft are equipped with amenities beyond those found in typical commercial airliner, and that pilots
provide a level of customer service beyond that of normal commercial airlines, as they may routinely fly
both public scheduled flights and private charter flights. Our aircraft have the following amenities:
• 8 or 9 Passenger Seat Configuration
• Leather Seats
• Pressurized Cabin
• Power Outlets
• Enclosed Lavatory
• Refreshments Provided on all Boutique Flights

Proposal
Our airline service will be operated with 8 or 9 seat Twin-Engine Piaggio P180 Avanti aircraft. We are
proposing a two, three, or four year contract duration for the community to consider with a 5% subsidy
increase each year. We are proposing three options for consideration.

Our bid consists of 6 options, all providing between 28 and 35 weekly round trips from Ogdensburg to
hub airports. Option 1 consists of 28 weekly round trips to Washington Dulles International Airport, with
an additional 7 weekly round trips to Washington Dulles International Airport during a peak season
which will begin around June or July and have a duration of 13 weeks.

In order to better serve the community's air service preferences, Boutique Air will reserve the right to
move up to 14 round trips to a New York City area Airport, either EWR or HPN, during the offseason,
and up to 21 round trips to a New York City area Airport, either EWR or HPN, during the peak season.

All other options set forth in this proposal have consistent year round service and they are specified at
the end of this document.

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Reliability

Boutique Air will maintain at least 98% controllable flight completion. Over the past 12 months, Boutique
Air has maintained 99.7% controllable completion over nearly 5,000 scheduled flight operations.

Marketing

We have worked to develop effective marketing distribution channels with a reservation system that
connects to all primary Global Distribution Systems (GDSs), allowing travel agents access to our flight
inventory. You will find us on Worldspan and Galileo (Travelport), Sabre, and Amadeus. In addition, we
are on the major Online Travel Agencies (OTAs), including Expedia, Travelocity, Priceline, and Orbitz.

In order to increase brand recognition in the communities, Boutique Air will spend at least $30,000 per
year in each market if it is selected for advertising & marketing to help ensure that air service for the
community is a success. We will utilize a combination of radio, print, billboard, television, GDS and
internet advertising.

United Airlines Interline and Codeshare Agreement

Boutique Air launched an interline and codeshare agreement with United Airlines on May 1, 2017.
Customers of Boutique Air will have flow-through ticketing and baggage capabilities for those flights that
connect with United Airlines.

United.com example: Massena, NY to Newark, NJ

American Airlines Interline Agreement

Boutique Air has had an interline agreement with American Airlines since August 7, 2019. Passengers
are also able to book through United.com and AA.com and connect with any American flights.

AA.com example: Carlsbad, NM to Los Angeles, CA

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

While we can’t promise we will be able to implement everyone’s suggestions, we welcome feedback
from the community, as well as anyone who may have an interest in the proposed flights. What we can
promise is that we will listen to your feedback, and give it the attention and consideration it deserves.

With respect and appreciation,

Shawn Simpson
CEO, Boutique Air

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Option 1: Service to Washington - Dulles
Offseason: 28 Weekly Round Trips to IAD*
Peak Season: 35 Weekly Round Trips to IAD**

Operations P180
Scheduled Flights 3,094
OGS-IAD 1,547
IAD-OGS 1,547
Scheduled Flight Time 5,333
Scheduled Block Time 5,669
Scheduled Seats 27,846
Scheduled ASM 11,394,340
Revenue
Passengers 13,645
Average Fare $99
Fare Revenue $1,350,809
Expenses
Direct Operating Expenses $7,252,558
Indirect Operating Expenses $1,918,280
Airport Facilities $306,440
Ownership $1,051,865
Marketing $30,000
Total Expenses $10,559,143

Profit Element (5%) $527,957

Total Annual Subsidy Year 1 $9,668,750

Total Annual Subsidy Year 2 $10,152,188
Total Annual Subsidy Year 3 $10,659,797
Total Annual Subsidy Year 4 $11,192,787

*Boutique Air reserves the right to move up to 14 of these 28 weekly round trips from IAD to
EWR or HPN. There will be no change in required subsidy.
**Boutique Air reserves the right to move up to 21 of these 35 weekly round trips from IAD to
EWR or HPN. There will be no change in required subsidy.

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Option 2: Service to New York and Chicago

21 Weekly Round Trips to EWR or HPN and 7 Weekly Round Trips to ORD

Operations P180
Scheduled Flights 2,912
OGS-EWR 1,092
EWR-OGS 1,092
OGS-ORD 364
ORD-OGS 364
Scheduled Flight Time 3,575
Scheduled Block Time 4,024
Scheduled Seats 26,208
Scheduled ASM 9,834,518
Revenue
Passengers 20,704
Average Fare $119
Fare Revenue $2,463,814
Expenses
Direct Operating Expenses $8,477,801
Indirect Operating Expenses $885,178
Airport Facilities $442,970
Ownership $1,051,865
Marketing $30,000
Total Expenses $10,887,814

Profit Element (5%) $544,391

Total Annual Subsidy Year 1 $8,845,200

Total Annual Subsidy Year 2 $9,287,460
Total Annual Subsidy Year 3 $9,751,833
Total Annual Subsidy Year 4 $10,239,425

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Option 3: Service to Washington - Dulles and Chicago

21 Weekly Round Trips to IAD and 7 Weekly Round Trips to ORD

Operations P180
Scheduled Flights 2,912
OGS-EWR 1,092
EWR-OGS 1,092
OGS-ORD 364
ORD-OGS 364
Scheduled Flight Time 4,268
Scheduled Block Time 4,717
Scheduled Seats 26,208
Scheduled ASM 12,311,096
Revenue
Passengers 22,015
Average Fare $129
Fare Revenue $2,839,899
Expenses
Direct Operating Expenses $9,843,676
Indirect Operating Expenses $1,037,688
Airport Facilities $392,670
Ownership $1,051,865
Marketing $30,000
Total Expenses $12,355,899

Profit Element (5%) $617,795

Total Annual Subsidy Year 1 $9,991,800

Total Annual Subsidy Year 2 $10,491,390
Total Annual Subsidy Year 3 $11,015,960
Total Annual Subsidy Year 4 $11,566,757

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Option 4: Service to Washington - Dulles and Pittsburgh

14 Weekly Round Trips to IAD and 14 Weekly Round Trips to PIT

Operations P180
Scheduled Flights 2,912
OGS-IAD 728
IAD-OGS 728
OGS-PIT 728
PIT-OGS 728
Scheduled Flight Time 3,666
Scheduled Block Time 4,127
Scheduled Seats 26,208
Scheduled ASM 10,307,151
Revenue
Passengers 16,773
Average Fare $99
Fare Revenue $1,660,539
Expenses
Direct Operating Expenses $7,557,592
Indirect Operating Expenses $907,941
Airport Facilities $332,600
Ownership $1,051,865
Marketing $30,000
Total Expenses $9,879,998

Profit Element (5%) $494,000

Total Annual Subsidy Year 1 $8,630,432

Total Annual Subsidy Year 2 $9,061,954
Total Annual Subsidy Year 3 $9,515,051
Total Annual Subsidy Year 4 $9,990,804

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Option 5: Service to Boston

28 Weekly Round Trips to BOS

Operations P180
Scheduled Flights 2,912
OGS-BOS 1,456
BOS-OGS 1,456
Scheduled Flight Time 2,936
Scheduled Block Time 3,373
Scheduled Seats 26,208
Scheduled ASM 7,196,165
Revenue
Passengers 11,794
Average Fare $89
Fare Revenue $1,049,630
Expenses
Direct Operating Expenses $5,444,954
Indirect Operating Expenses $742,028
Airport Facilities $275,940
Ownership $1,051,865
Marketing $30,000
Total Expenses $7,544,787

Profit Element (5%) $377,239

Total Annual Subsidy Year 1 $6,819,914

Total Annual Subsidy Year 2 $7,160,910
Total Annual Subsidy Year 3 $7,518,955
Total Annual Subsidy Year 4 $7,894,903

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Option 6: Service to New York

28 Weekly Round Trips to EWR/HPN

Operations P180
Scheduled Flights 2,912
OGS-EWR 1,456
EWR-OGS 1,456
Scheduled Flight Time 3,001
Scheduled Block Time 3,317
Scheduled Seats 26,208
Scheduled ASM 7,421,981
Revenue
Passengers 17,297
Average Fare $89
Fare Revenue $1,539,458
Expenses
Direct Operating Expenses $6,311,192
Indirect Operating Expenses $729,721
Airport Facilities $366,400
Ownership $1,051,865
Marketing $30,000
Total Expenses $8,489,178

Profit Element (5%) $424,459

Total Annual Subsidy Year 1 $7,297,206

Total Annual Subsidy Year 2 $7,662,066
Total Annual Subsidy Year 3 $8,045,169
Total Annual Subsidy Year 4 $8,447,428

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