Proposal of Hyannis Air Service, Inc., dba Cape Air to provide subsidized
subsidized Essential Air Service for:
Augusta/Waterville and Rockland, Maine
Docket DOT-OST-1997-2784
To/From Boston
Cape Air hereby applies to serve both Augusta/Waterville and Rockland,
Rockland,
but is willing and able to operate either route without the other.
other.
Hyannis Air Service, Inc., dba Cape Air
Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601
(508) 790-3122 x519
June 2, 2008
Cape Air is a small but robust commuter airline,
operating and growing since 1989
Key statistics
Cape Air: Leading the pack nine at a time
¾ First route was Boston – Provincetown; began
service in October 1989 with two aircraft
¾ Presently flying 53 Cessna 402s in four regions,
and two ATR-42s in our fifth region, Micronesia
¾ Upstate New York service starts Sep-08
¾ Operating up to 500 flights per day
¾ In 2007 carried more than 650,000 passengers
¾ Completion rate better than 97%
Photo courtesy Mark Garfinkel (August 7, 2000, Boston)
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As of May 2008 Cape Air operates in five regions,
including five EAS cities
Cape Air route maps
May 2008 schedule
Caribbean
Micronesia
Florida
Indiana
EAS
EAS
Northeast
EAS
EAS
EAS
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Service for three additional EAS cities starts in September,
creating Cape Air’s sixth region
Upstate New York air service
• In March 2008 Cape Air was selected for
subsidized EAS at three upstate New York
communities:
– Massena
– Ogdensburg
– Watertown
Cape Air’s North route network
September 2008 schedule
EAS
EAS
EAS
EAS
EAS
EAS
• Each city will receive three round trips daily
to Albany
• Service commences on September 16, 2008
3
Cape Air could be an excellent air service provider for
Augusta and Rockland
Cape Air’s qualifications for Augusta and Rockland EAS
9 EAS subsidy used to offer low fares
9 High-frequency non-stop service
9 Ample back-up capacity ensures reliability
9 Interline ticketing and baggage agreements enable same-ticket connections with the world
9 Full GDS participation (Sabre, Travelocity, Expedia, etc.)
9 Reservations also available via www.flycapeair.com, in-house call center, or at the ticket counter
9 MOCHA HAGoTDI culture (Make Our Customers Happy, And Have A Good Time Doing It!) and
an employee-owned company
4
Cape Air would serve Augusta and Rockland
with Cessna 402s, the workhorse of Cape Air’s fleet
Cape Air’s Cessna 402
Cessna 402 highlights
• Cape Air operates 53 Cessna 402s in five regions:
– Northeast
– Florida
– Indiana
– Caribbean
– New York’s North Country (effective SEP-08)
• The Cessna 402 seats nine passengers
– Each seat is both aisle and window
– Cape Air uses open seating
– Single-pilot operation
Cape Air’s ATR-42
• Cape Air also operates in Micronesia on behalf of
Continental Airlines, with two forty-six passenger
ATR-42s
5
Cape Air participates in the global distribution systems (GDS),
giving Augusta and Rockland access to the world,
and the world access to Augusta and Rockland
Cape Air is sold through:
6
Tickets and commuter books are available
on Cape Air’s website…
The Cape Air web booking engine: www.flycapeair.com
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…Or by phone from the Reservations Center,
which handles up to 70,000 calls per month
Cape Air’s Telephone Reservations Center
8
Commuter books are a great money-saving solution for
companies, families and frequent travelers
Key features of ticket books:
• Several Cape Air routes have more than 66% of passengers using
commuter books
• Each book contains 10 one-way tickets at a substantial discount per ticket
• Commuter book tickets are:
– Transferable
– Unrestricted
– Valid on any departure on a specific city pair
– Refundable
• Ticket book program already in place and ready to go!
9
Cape Air has been an interline carrier since 1993
enabling connectivity with most major airlines,
not just Continental and JetBlue
Interline highlights
• Twenty-five interline agreements are in place, with almost all major airlines
• Cape Air has completed migration to interline eticketing, the updated industry norm
• Cape Air operates flights in Florida and Micronesia as
• Flights in the Caribbean have a
• Most Boston routes have a
code
code
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JetBlue and Cape Air are co-located in Logan’s Terminal C,
facilitating easy connections to Boston’s largest low-cost carrier
Boston Logan Terminal “C”
Customer service center
Service to
ACK/HYA/MVY/PVC/RUT are
operated in partnership with
JetBlue
TSA Security
Ticket counters
Note: Not to scale
As an interline carrier for 15 years, Cape Air facilitates through
ticketing and bag transfer to most major airlines, not just JetBlue
JetBlue is Boston’s largest low-cost carrier by either departures or ASMs, March 2008 OAG
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Connectivity with JetBlue is valuable to Augusta and Rockland
because JetBlue has 364 weekly departures from Boston
to 29 cities, and…
JetBlue’s Boston service
August 2008 OAG
City
1 New York-JFK, NY
2 Washington-Dulles, DC
3 Orlando, FL
4 Fort Lauderdale, FL
5 Buffalo, NY
6 Long Beach, CA
7 Oakland, CA
8 West Palm Beach, FL
9 Pittsburgh, PA
10 Richmond, VA
11 Fort Myers, FL
12 Tampa, FL
13 Austin, TX
14 Bermuda, BM
15 Charlotte-Douglas, NC
16 Denver, CO
17 Jacksonville, FL
18 Las Vegas, NV
19 Los Angeles, CA
20 New Orleans, LA
21 Chicago-O'Hare, IL
22 Raleigh/Durham, NC
23 San Diego, CA
24 Seattle/Tacoma, WA
25 San Francisco, CA
26 San Jose, CA
27 Aruba, AW
28 Cancun, MX
29 Nassau, BS
Total
Wkly Dpts
56
39
35
21
14
14
14
14
14
14
14
14
7
7
7
7
7
7
7
7
7
7
7
7
7
7
1
1
1
364
JetBlue’s Boston route map
August 2008
Source: OAG
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…Among the largest carriers at Boston,
JetBlue has the lowest yield, or price per mile flown,
meaning low total travel costs for connecting passengers
Boston yield by carrier
YE3Q07, dollars per mile flown
$0.20
$0.18
$0.15
$0.14
$0.15
$0.12
$0.12
$0.14
$0.12
$0.10
$0.10
$0.05
$0.00
Wkly Dpts
JetBlue
364
AirTran
170
American
525
United
224
Delta
566
Northwest Continental US Airways
143
150
704
Connections with JetBlue mean low total trip costs
Sources: APGDat US DOT O&D Survey and OAG
Note: Largest carriers by departure frequency, OAG August 2008, excluding Cape Air
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Since Cape Air inaugurated service at Rutland in October 2007,
Cape Air’s low fares, increased frequency, and reliability
have more than doubled enplanements
Rutland traffic
1,000
900
800
700
600
B1900 Predecessor
500
Cape Air
400
300
200
100
0
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Sources: Rutland Airport and Cape Air
14
Cape Air proposes 3x daily service for both cities,
with incremental summer frequencies at Rockland
to accommodate its seasonality
Cape Air’s proposed Maine EAS frequency
2007 Pax
Daily Each Way
AUG RKD
Jan
8
9
Feb
9
10
Mar
12
14
Apr
12
15
May
12
15
Jun
13
21
Jul
16
31
Aug
17
36
Sep
10
19
Oct
10
14
Nov
10
10
Dec
6
9
Annual 11
17
Proposed Cape Air
Daily Round Trips
AUG RKD
3
3
3
3
3
3
3
3
3
3
3
4
3
5
3
5
3
4
3
3
3
3
3
3
3.0 3.5
Nominal
Load Factor
AUG RKD
30% 32%
32% 36%
43% 51%
45% 56%
44% 55%
47% 57%
58% 65%
61% 65%
39% 54%
36% 54%
37% 36%
24% 32%
41% 49%
Notes
-Cape Air welcomes community input on flight times, and will draft the schedule cooperatively
-Note: CLF 0.65
-Source for 2007 Passengers: T100 Onboards
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Cape Air proposes per departure subsidies of:
AUG: $622
RKD: $614
Expenses
Drivers
Stage (nm)
Seats per Dpt
Annual Sched. Dpts
Completion Rate
Annual Actual Dpts
Annual ASMs
Annual RPMs
PDEW
Pax/Dpt
Load Factor
Annual Passengers
Avg. Fare
Passenger Rev
AUG
129
9
2,190
97%
2,124
2,460,494
1,008,802
11.1
3.7
41%
8,081
$64.35
$504,401
RKD
135
9
2,558
97%
2,481
3,009,876
1,474,839
15.5
4.4
49%
11,281
$67.39
$737,420
Fuel
Maintenance
Pilots
Ownership
Stations
Marketing
De-icing
General & Admin./Other
Operating Expense
AUG
$691,877
$418,784
$149,747
$98,321
$245,457
$27,444
$35,937
$67,532
$1,735,098
RKD
$840,944
$509,217
$181,413
$131,023
$325,606
$32,055
$41,976
$84,946
$2,147,180
Return of 5%
Economic Expense
Passenger Revenue
Profit
$91,321
$113,009
$1,826,419
$2,260,190
$504,401
$737,420
($1,322,017) ($1,522,770)
Subsidy Required
Per Departure
Per Passenger
$1,322,017
$622
$169
$1,522,770
$614
$139
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Cape Air could be a great air service provider for
Augusta and Rockland
Cape Air offers the airline amenities Augusta and Rockland need:
9 Low fares
9 Improved non-stop frequency
9 Ample fleet of back-up aircraft available at Boston and Hyannis to ensure reliability
9 Same terminal connections to JetBlue, Boston’s largest low-cost carrier
9 Full interline connectivity, allowing same-ticket connections with the world
9 Global distribution
Cape Air is a great choice for
Augusta and Rockland
Hyannis Air Service, Inc., dba Cape Air
Attn: Andrew Bonney, 660 Barnstable Road, Hyannis, MA 02601
(508) 790-3122 x519
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