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AGENDA
CAPE GIRARDEAU AIRPORT ADVISORY BOARD
SPECIAL MEETING
TUESDAY. MAY I9. 1992, 4:00 P.M.
PILOT'S CLUB
1..
Call to
order.
II.
Approval
of minutes
of March 10,
1992,
meeting.
III. Discussion regarding the Essential Air Service Program.
IV. Discussion concerning Steel Cure Ilemergency medical
exercise.
V. Terminal building update.
V1.. Report on 1992 air show.
VII. Adjourn.
The Airport Board of the City of Cape Girardeau, Missouri, may
as a part of a study session or regular or special Airport Board
meeting hold a closed session to discuss legal actions, causes of
legal action or litigation, leasing, purchasing or sale of real
estate, hiring, firing, promotion of personnel or employee labor
relations.
MEMORANDUM
TO: Cape Girardeau Airport Advisory Board
7
FROM: Douglas K. Leslie, Public Works Director
DATE: May 5, 1992 LL//
SUBJECT: Update on Airport Issues
The airport terminal building project has been delayed once
again due to the contnractor's inability to meet the Disadvantaged
Business Enterprise requirements by FAA. As you recall, the
original low bidder, Sides Construction, was disqualified because
of its failure to meet the Disadvantaged Business Enterprise
requirements of FAA and the contract. The project was awarded to
Schemel Construction on April 6 contingent on FAA approval. FAA
has now disapproved Schemel's DBE effort, leaving us with the
option to reject all bids and rebid the project. City Council last
evening approved rejecting all bids effective Monday, May 11,
unless Schemel can provide a qualified DBE subcontractor to meet
the FAA requirements. If not, we will shortly thereafter
readvertise the project for a shortened period, and will endeavor
to have a contract ready for City Council review in early June.
These delays and problems are unfortunate in that we have all
the terminal building tenants located in mobile office space at the
airport, and the present arrangement is inconvenient to airline
passengers. After numerous conversations with FAA, we are
convinced that they do not intend to provide any leeway on this
issue. The next bid letting will require us to have a prebid
meeting with the contractors to help assure that they follow every
detail of the DBE program.
The City Council last evening appointed two new members to the
Airport Board. These members are James Fred Walt2, attorney, and
Dan Overbey. We certainly want to express sincere appreciation to
the two outgoing members, J.T. Seesing and Truman Cole. Both of
these members have served the airport long and well.
We hope to see you at the this weekend's air show activities.
Please find enclosed for you and a guest two VIP tickets to the
show. The ticket will afford you special parking and a spot in the
VIP tent for viewing the show. You should be able to get in easily
if you arrive before noon. The gates will open at 10:00 a.m.
The next meeting of the Airport Board will be Tuesday, June 2,
at 4:00 p.m. at the Pilot's Club. Please call if you have any
questions or concerns.
DKL:gc
Enclosures
MEMORANDUM
TO: Airport Advisory Board
FROM: Douglas K. Leslie, Public Works Directo0C—
DATE: May 15, 1992
SUBJECT: Essential Air Service Program Review
Please find enclosed a letter from the United states
Department of Transportation concerning their review of proposals
submitted by air carriers for the Essential Air Service Program.
In this letter they outlined various options proposed by TWE and by
Lone Star Airlines. The City has until June 2 to evaluate these
options and make a recommendation to the U.S. DOT.
In order to discuss this matter, a special Airport Advisory
Board meeting has been set for 4:00 p.m. on Tuesday, May 19, at the
Pilot's Club at the airport. A recommendation will need to be
developed for submittal to the City Council at their June 1
meeting to meet the DOT 20 day review time frame.
We look forward to seeing you Tuesday at 4:00 p.m. If you
have any questions, please do not hesitate to contact me.
v..
DKL:gc
MEMORANDUM
TO:
Airport
Advisory Board
FROM:
Mark J.
Seesing, Airport Managers-�
�1y
DATE:
May 19,
1992
SUBJECT:
Review
of EAS Information
The rate negotiations for Essential Air Service for Cape
Girardeau have been completed. I believe each of you received a
copy of Mr. Bingham's letter with the enclosures. I will attempt
to place the information in table form so as to be able to compare
it closely.
Option I from Trans States and Lone Star depict current levels
of service. Option II from Trans States shows an increase of one
additional flight on weekdays. Option II of Lone Star shows
service to both St. Louis and Memphis. The overall subsidy would
be $819,000 combining Cape Girardeau and Jonesboro, Arkansas,
subsidy rates. Options III and IV are basically the same depicting
service from Jonesboro through Cape Girardeau to St. Louis with
Option IV showing the deletion of other EAS points in an effort to
bring down costs.
MJS:gc
EAS SUMMARY CHART
Exceed or Meet
Airline
Destination tk of Flights
Aircraft
FAS
Shared Flight
Subsidy Cost
es/no
TWE Option 1
CGI-StL-CGI 3 rt weekday
J-31
yes
yes MWA
$206,248
existin
it weekend
TWE Option II
GI -SIL -CGI I rt weekday
J-31
I yes
yes MWA
$345,546
Bit weekend
Lone Star Option I
CGI-StL-CGI 3 rt weekday rt
Metro III
yes
no non-stop
$484,622
rt weekend
�I
Lone Star Option II
CGI-StL-CGI 3 rt weekday
Metro III
yes
no CGI-StL
$584,572
CGI-JBR-MEM r: weekend
yes
- -
CGI-StL-CGI
CGI-JBR-MEM
rt weekday
�rtweekend
CGI-JBR-MEM
Lone Star Option III rt weekday
Metro III
yes
yes JBR
$861,505 Total
,JBR-CGI-StL
rtweekend
$639,452 CGI
$202,053 JBR
Lone Star Option IV JBR-CGI-StL p rt weekday
Metro III
yes
YES JBR
$905,859
rt weekend
- other EAS
$334,778
RECT MAY 131992
Q
IAS Department of 400 9evemh 5t., S w
Transportation Wasnmgton, o C 20590
Crcice of the Secretary
of Tronsporration
M"' 1992
The Honorable Francis E. Rhodes
City Hall
P.O. Box 617
Cape Girardeau, Missouri 63702-0617
Dear Mayor Rhodes:
As you know, by Order 91-12-1, December 2, 1991, the
Department requested proposals from all carriers interested
in providing essential air service at Cape Girardeau,
Missouri, after Trans States Airlines, d/b/a Trans World
Express (Trans States) filed a 90 -day notice of its intent
to suspend all service at Cape Girardeau. Although carriers
were invited to submit proposals for service only at Cape
Girardeau, during the course of this proceeding, Exec
Express II, d/b/a Lone Star Airlines (Lone Star), filed a
suspension notice at Jonesboro, Arkansas. Because of the
proximity of Jonesboro and Cape Girardeau to the St. Louis
and Memphis hubs, we asked the carriers if they would be
4.. interested in submitting a proposal that would include
service to Jonesboro with Cape Girardeau. Therefore, we
also have several proposals before us from Lone Star that
reflect essential air service at Cape Girardeau and
Jonesboro over a linear routing. Trans States did not
submit a proposal that included Jonesboro.
As established by Order 84-3-98, Cape Girardeau's essential
air service determination requires at least two round trips
each weekday and over each weekend period between Cape
Girardeau and St. Louis, with one intermediate stop
permitted, providing 48 seats each service day in each
direction assuming 14 -seat or larger aircraft are used.
By Order 91-12-1, we also stated that we would review Cape
Girardeau's essential air service determination as required
by our regulations and that we would review the city's
request for dual -hub service during the carrier selection
process. we will also review Cape Girardeau's EAS service
requirement in the context of the Airport and Airway Safety
and Capacity Expansion Act of 1987 (P.L. 100-223), effective
October 1, 1988, through September 30, 1998. The modified
requirements of this law which pertain to eligible
- 2 -
communities are: (1) minimum seat requirements at an
eligible point will be based on a 60 percent load factor
standard for aircraft having 15 or more passenger seats; (2)
for points not in the State of Alaska, service must be
provided with aircraft having at least 15 passenger seats if
the average daily enplanements at the point exceeded 11
passengers in any calendar year from 1976 through 1988; (3)
there may be not more than one intermediate stop between the
essential air service point and its hub, which generally
must be a medium or large hub; (4) in cases where service
regularly exceeds 8,000 feet in altitude, pressurized
aircraft must be used;' and (5) flights must be operated at
reasonable times, taking into account the needs of
passengers with connecting flights at such airport and at
rates, fares and charges which are not excessive when
compared to the generally prevailing fares of other air
carriers for like service between similar pairs of points.
(A community may waive any of these requirements). Within
this context, and at the request of civic officials, we
requested that the carriers submit proposals that considered
service to an additional hub, ie., Memphis, and proposals
that provided improved schedules to St. Louis only. -r
In response to our request, we received proposals from two
carriers: Trans States Airlines, the incumbent, and Lone
Star Airlines. My purpose in writing you at this time is to
advise you of the carriers' subsidy and service proposals
and to request your comments.
We have completed rate negotiations with both carriers and
their final service/subsidy proposals are summarized below.
Trans States Airlines. d/b/a Trans World Express
Trans States has proposed two options. The first option
reflects the three -round trip service it currently provides
and meets the community's current EAS definition. Under
option 2, the carrier would provide a further round trip to
St. Louis on weekdays. The carrier chose not to submit a
proposal for service to a second hub. Specifically, the
proposals provide for the following service with 19 -seat
Jetstream aircraft for a two-year period.
1 In addition to cases in which minimum mroute altitudes require Flights to regularly exceed 8,000 feet,
we have assumed that flights generally exceed 8,000 feet on stage lengths greater than 150 miles.
- 3 -
Option 1 -- three round trips each weekday and over the
weekend period between Cape Girardeau and St. Louis with no
more than one round trip operated via Marion/Herrin. This
service would be provided at an annual compensation rate of
$206,248. (See Appendix A for details of the subsidy
calculation and the proposed flight schedule.)
Option 2 -- four round trips each weekday and three round
trips over the weekend period between Cape Girardeau and St.
Louis with no more than one round trip operated via
Marion/Herrin. This service would be provided at an
expected annual compensation rate of $345,546. (See
Appendix S for details of the subsidy calculation and the
proposed flight schedule.) Trans States has suggested that
it would be willing to provide this option on a trial basis
(for up to a one-year period), subject to review and
possible extension after the trial period.
Exec Express II. d/b/a Lone Star Airlines
We have negotiated four service options with Lone Star. All
four options would provide Cape Girardeau with at least the
same service level it currently receives. Options 1, 3 and
4 meet the community's current EAS definition, while under
Option 2, the carrier has attempted to propose service in
excess of the current determination by proposing to offer
the community service to a second hub --Memphis (via
Jonesboro). All of the Options, except for Option 1,
include Jonesboro in the service pattern either as an
intermediate point for Memphis service or an upline point
for service to St. Louis. In addition, although Options 3
and 4 offer identical service for Cape Girardeau, since
Option 4 also includes a revised subsidy/service proposal
for other points on Lone Star's system, the subsidy
calculation is different.
Specifically, the four proposals provide for the following
service with 19 -seat Metro III aircraft for a two-year
period.
Option 1 -- service would consist of three nonstop round
trips each weekday and over each weekend period between Cape
Girardeau and St. Louis for an annual subsidy rate of
$484,622. (See Appendix C for details of the subsidy
calculation and the proposed flight schedule.)
- 4 -
Option 2-- service for Cape Girardeau would consist of three
nonstop round trips each weekday and weekend period to St.
Louis, and two round trips each weekday and weekend period
to Memphis, via Jonesboro. This service would be provided
for an annual subsidy rate of $584,572. (See Appendix D for
details of the subsidy calculation and the proposed flight
schedule.)
Option 3 -- service would consist of three round trips each
weekday and three round trips over the weekend period over
the routing Jonesboro -Cape Girardeau -St. Louis at an
expected annual compensation rate of $861,505. (See
Appendix E for details of the subsidy calculation and the
proposed flight schedule.) However, the net effect of this
proposal would be $639,452 annually because the current
Jonesboro rate would be eliminated if this Option was
selected.
option 4 -- service would consist of three round trips each
weekday and three round trips over the weekend period over
the routing Jonesboro -Cape Girardeau -St. Louis at an
expected annual compensation rate of $905,859. Because of
other changes to the carrier's route system contemplated in
this proposed rate, the overall increase to the carrier's
annual subsidy would be only $334,778. (See Appendix F for
details of the subsidy calculation and the proposed flight
schedule.)
we would appreciate receiving your views on the carriers'
proposals before we make our recommendation to the Assistant
Secretary. We ask that you submit your comments within
twenty (20) days of receipt of this letter. An original and
five copies should be sent to me at the following address:
Service Compensation Division, P-54, Room 6407C, Department
of Transportation, 400 7th Street, S.W., Washington, D.C.
20590. Copies should also be sent to Trans States Airlines
and Lone Star Airlines. If you have any questions, please
contact Linda Prete of my staff at 202-366-1051.
sincerely
/ /
i 1' /-VA
William A. Bingham, Jr., Chief
Service Compensation Division
office of Aviation Analysis
- 5 -
Enclosures
Identical letter sent to:
Mr. Mark J. Seesing
Mr. Lloyd Parr
Airport Manager
Administrator of Aviation
P.O. Box 617
State of Missouri
Cape Girardeau, MO 63702-0617
P.O. Box 270
Jefferson City, MO 65102
cc:
Mr. Philip E. Trenary
Mr. Robert Wigmore
President/C.E.O.
RFW Associates
131 East Exchange Avenue
1519 Wimborne Court
Suite #222
Chesterfield, MO 63017
Ft. Worth, Texas 76106
Mr. Hulas Kanodia, President
`,. Trans States Airlines
9275 Genaire Drive
St. Louis. MO 63134
04.
Trans States Airlines
Annual Subsidy Calculation for the
Provision of EAS at Cape Girardeau, Missouri
Option 1
Block Hours (at 97%) 1/
Operating Revenue
Passengers:
Yield
Total Passenger Revenue
Other Revenue
Total Operating Revenue
CGI-STL:
10,109
MWA-STL
4,994
CGI-STL
71.93
MWA-STL
71.45
(at 1.8% of psgr. revenue)
Operating Expenses
Direct Expenses
Flying Operations ($91.41/BH)
Fuel 1$68/13H -- 100 gal burn rate x $.68/gall
Maintenance ($128.33/BH)
Insurance ($4.46/13H)
Rentals ($205.75/BH) 2/
Total Direct Expenses
Indirect Expenses
Station Costs:
Landing Fees
Marketing Costs
Reser, and Ticketing
Admin. Burden
Total Indirect Expenses
Total Operating Expenses
Interest (@ .0045/ASM)
Profit 1@ 5% of total costs)
Total Economic Costs
Compensation Requirement
Footnotes an fallowing page.
CGI 911
108.66
STL 911
55
MWA 607
70.92
CGI 911
7.67
STL 911
18.26
MWA 607
3.92
(at 10.2% of psgr. rev.)
(at $4.90 per psgr.l
(at $0.0156 per ASM)
3/ 4/
Appendix A
Page 1 of 3
1,523
$1,083,962
$19,511
$1,103,473
$139,217
$103,564
$195,447
$6,793
$313,357
$758,378
$98,989
$ 50,105
$43,048
$6,987
$16,635
$2,379
$110,564
$74,005
$67,672
$470,384
$1,228,762
$19,521
$61,438
$1,309,721
$206,248
Appendix A
Page 2 of 3
FOOTNOTES
Option 1
1/ Based on two nonstop round trips six days per week at an
average of 41 minutes per flight, and one round trip Cape
Girardeau -Marion -St. Louis six days per week at an average
of 25 minutes per flight for CGI-MWA and 43.5 minutes per
flight MWA-STL.
2/ Based on an average of 185 hours aircraft utilization
per month at an average rental cost of $38,063 per month.
3/ Based on 4,337,080 annual ASM's at a 97% completion
factor (4 x 313 x 19 x 114, plus 2 x 313 x 19 x 148).
4/ While no separately identifiable allotment has been made
for advertising by Trans States for its Cape Girardeau
service, the carrier indicates that Cape Girardeau receives
the benefit of its code -share partner's system advertising
as well as Trans States' overall marketing program which
includes radio and newspaper, trade -outs, and sales calls to
travel agencies and major accounts.
TRANS STATES AIRLINES
PROPOSED SCHEDULE FOR CGI/STL
From: CA -=E LIRA= -EAU, MISSOURI (CGI)
To: 6T. LOUIS, MISSOURI (STL)
Appendix A
page 3 of 3
Central standard
Central standard
----------------------------------------------------------------------
Class
Freq Depart
Arrive
Might
Class
Equip
stop
----------------------"'--------"'^---------------------------"^"--
J31
x7 6:45a
CGI 8:074
STL TW*7341
SYSQM
J31
1
10::23
CGI 10:S7a
STL TW*7393
SYBQM
J31
0
X6 5:1?r
CGI S:S9p
STL TW•7397
SYBQM
731
0
From: ST. LOU—, '::SSOURI (STL)
To: CAPE G17-t..:.7EAU, MISSOURI (CGI)
----------------------
Freq Ceras
----------------------
9:1.a STL
k6 4:24M STL
�...:6 6:07i STL
via MWA
------"-----------
Arrive Flight
-------------------
9:/8a CGI TW*7390
S:04p CGI TW*7396
9:22p CGI TW*7330
Central standard
Central standard
-------------------------
Class
Equip
stop
.-------------------------
SYSQM
J31
0
SYBQM
J31
0
SYSQM
J31
1•
Trans States Airtines
Annual Subsidy Calculation for the
Provision of EAS at Cape Girardeau, Missouri
Option 2
Block Hours (at 97%) 1/
Operating Revenue
Passengers:
Yield
Total Passenger Revenue
Other Revenue
Total Operating Revenue
CGI-STL:
11,874
MWA-STL
4,994
CGI-STL
71.93
MWA-STL
71.45
(at L8% of psgr. revenue)
Operating Expenses
STL 1163
Direct Expenses
MWA 607
Flying Operations
($91.41/BH)
Fuel ($68/3H
-- 100 gal burn rate x $.68/gal)
Maintenance
($128.33/13H)
Insurance
($4.46/BH)
Rentals
($205.75/BH) 2/
Total Direct Expenses
(at $0.0156 per ASMI
Indirect Expenses
Station Costs:
Landing Fees
Marketing Costs
Reser. and Ticketing
Admin. Burden
Total Indirect Expenses
Total Operating Expenses
Interest I@ .0045/ASMI
Profit 1@ 5% of total costs)
Total Economic Costs
Compensation Requirement
Footnotes on following page.
CGI 1163 108.66/80
STL 1163
55
MWA 607
70.92
CGI 1163
7.67
STL 1163
18.26
MWA 607
3.92
(at 10.2% of psgr. rev.)
(at $4.90 per psgr.)
(at $0.0156 per ASMI
3/ 4/
Appendix B
Page 1 of 3
1,868
$1,210,918
$21,797
$1,232,715
$170,754
$127,024
$239,720
$8,331
$384.341
$930,170
$119,147
$63,965
$43,048
$8,920
$21,236
$2,379
$123,514
$82,653
$84,782
$549,644
$1,479,814
$24,456
$73,991
$1,578,261
$345,546
Appendix B
Page 2 of 3
FOOTNOTES
Option 2
1/ Based on two nonstop round trips six days per week and
one nonstop round trip weekdays only at an average of 41
minutes per flight, and one round trip Cape Girardeau -
Marion -St. Louis six days per week at an average of 25
minutes per flight for CGI-MWA and 43.5 minutes per flight
MWA-STL.
2/ Based on an average of 185 hours aircraft utilization
per month at an average rental cost of $38,063 per month.
3/ Based on 5,434,712 annual ASM's at a 970 completion
factor (4 x 313 x 19 x 114, plus 2 x 251 x 19 x 114, plus 2
x 313 x 19 x 148).
4/ While no separately identifiable allotment has been made
for advertising by Trans States for its Cape Girardeau
service, the carrier indicates that Cape Girardeau receives
the benefit of its code -share partner's system advertising
as well as Trans States' overall marketing program which _
includes radio and newspaper, trade -outs, and sales calls to
travel agencies and major accounts.
TRANS STATES AIRLINES Aopendix e
PROPOSED CAPS GIRARDEAU SERVICE Page 3 of 3
WITH FOUR ROUND TRIPS
From: CAPE GIRARDEAU, MISSOURI (CGS)
To; ST. LOUIS, MISSOURI (STL)
Date: All Dates
Frequency
xSu
Daily
XSA/SL'
xSa
---'--"_---'-'----
Deport Arrive
Central daylight
Central daylight
Airline Preferences None Specified
Flight
6:45a CGI S07a STL TW*7341
10;20& CGS 11105a STL TW*7393
3t15p CGI 41009 STL TW*7XXX
5:19p CGI 5:59p STL TW+7397
Class
Equip Meal
Stop
SYSQM
J31
1
SYB
J31
0
SYMSQ
331
0
SYSQM
331
0
From: ST,
LOUIS, X SSOURI
(STL)
Contral
daylight
To: CAPE
GIRARDEAU, MISSOURI
(CGI)
Central
daylight
Data. All
Cates
Airline
Praferences; None
Specified
----------------------`--------""___________,._____________--'--______.._
Frequency
Depart
Arrive
Flight
Class
Equip Meal
Stop
-----------------------------------------,.___________________.,__--__--_--
Daily
9:10a 6TL
9t48a
CGI
TW*7390
SYSQM
J31
0
XSA/SU
l:SOp CGI
2:40p
STL
TW*7XXX
SYMBQ
J31
0
xSa
4:249 STL
5:04p
CGI
TW►7396
SYSQM
J31
0
xSa
S:OSp STL
9:20p
CGI
TW*7350
SYBQM
331
1
M
Appendix C
Page 1 of 3
Lone Star Airlines
Annual Subsidy Calculation for the
Provision
of EAS at Cape Girardeau, Missouri
Option 1
Block Hours (at 95%) 1/
1,277
Operating Revenue
Passengers:
CGI-STL: 7,100
Yield
CGI-STL 65
Total Passenger Revenue
$461,500
Other Revenue
(at 1.2% of psgr. revenue)
$5,538
Total Operating Revenue
$467,038
Operating Expenses
Direct Expenses
Flying Operations 2/
$106,680
Fuel 3/
$128,339
Maintenance 4/
$169,841
Insurance 5/
$7,828
Rentals 6/
$216,000
Total Direct Expenses
$628,688
Indirect Expenses
Commissions 7/
$64,610
Advertising 8/
$18,460
Passenger Related 9/
$31,950
Station Costs:
CGI 101
$58,902
STL it/
$73,063
Landing Fees
CGI 12/
$6,209
STL 13/
$6,690
General and Admin. 14/
$17,771
Total Indirect Expenses
$277,655
Total Operating Expenses
$906,343
Profit 1@ 5% of total costs)
$45,317
Total Economic Costs
$951,660
Compensation Requirement
$484,622
Footnotes on following page.
Appendix C
Page 2 of 3
FOOTNOTES
Option 1
1/ 1,784 flights at 95% times 42 minutes per flight (114 -
mile segment), plus 28 training hours.
2/ Represents two captains at $24,000 each and two first
officers at $18,000 each, plus 27$ benefits and taxes.
3/ Burn rate of 90 gph times $1.10/gal. plus $1.50/BH for
oil ($100.5/BH).
4/ At $133/BH ($55 for direct maintenance, $58 for overhaul
reserves, and $20 for maintenance burden).
5/ At $6.13/BH.
6/ Represents 2/3 aircraft at $27,000 lease cost per month.
7/ At 14% of passenger revenue.
8/ At 4% of passenger revenue.
9/ At $4.50 per passenger.
10/ $4,800 annually for rent, plus salaries: one manager
at $15,600 and 2.5 agents at $10,800 each plus 27%.
11/ $55 per turn plus $24,000 terminal charges.
12/ $.48 per thousand pounds (three landings per service
day).
13/ $7.50 per landing.
14/ Marginally costed at 2% of all other expenses.
Appendix C
Page 3 of 3
PROPOSED SCHEDULE OP71ON 1
rm-
m-
ST. LOUIS
FROM CAPE GD2ARDEAU
TO CAPE GIRARDEAU
DPT ARR
FREQ
VIA
DPT ARR
FREQ
VIA
07:15A 08:OOA
123456
NIS
09:30A 10:15A
123456
N/S
01:15P 02:OOP
123457
NIS
02:30P 03:15P
123457
NIS
04:45P 05:30P
123457
NIS
07:OOP 07:45P
123457
NIS
rm-
m-
Appendix D
Page 1 of 3
Lone Star Airlines
Annual Subsidy Calculation for the
Provision of EAS at Cape Girardeau, Missouri
Option 2, two -hub service via Jonesboro
Black Hours (at 95%) 1/
1,990
Operating Revenue
Passengers/Yield
CGI-STL:
6,500 $65
$422,500
CGI -MEM
3,000 $75
$225,000
JBR-STL
1,000 $85
$85,000
STL-MEM
400 $100
$40,000
Total Passenger Revenue
10,900
$772,500
Other Revenue
(at 1.2%
of psgr.
revenue)
$9,270
Total Operating Revenue
$781,770
Operating Expenses
Direct Expenses
Flying Operations 2/
$137,160
Fuel 3/
$199,995
Maintenance 4/
$264,670
Insurance 5/
$12,199
Rentals 6/
$324,000
Total Direct Expenses
$938,024
Indirect Expenses
Commissions 7/
$108,150
Advertising 8/
$30,900
Passenger Related 9/
$49,050
Station Costs:
CGI
10/
$58,902
STL
11/
$73,063
Landing Fees
CGI
12/
$10,552
STL
13/
$6,690
JBR
14/
$432
General and Admin. 15/
$25,515
Total Indirect Expenses
$363,254
Total Operating Expenses
$1,301,278
Profit 1@ 5% of total costs)
$65,064
Total Economic Costs
$1,366,342
Compensation Requirement
$584,572
Footnotes on following page.
Appendix 0
Page 2 of 3
FOOTNOTES
Option 2
1/ 1,277 block hours for Option 1 plus 713 BH --36 minutes
per flight times 1,189 flights (two round trips Jonesboro -
Cape Girardeau, 113 -mile segment at 95%).
2/ Represents three captains at $24,000 each and two first
officers_at $18,000 each, plus 27% benefits and taxes.
3/ Burn rate of 90 gph times $1.10/gal. plus $1.50/BH for
oil ($100.5/BH).
4/ At $133/BH ($55 for direct maintenance, $58 for overhaul
reserves, and $20 for maintenance burden).
5/ At $6.13/BH.
6/ Represents one full aircraft at $27,000 lease cost per
month.
7/ At 14% of passenger revenue.
8/ At 4% of passenger revenue.
9/ At $4.50 per passenger.
10/ $4,800 annually for rent, plus salaries: one manager
at $15,600 and 2.5 agents at $10,800 each plus 27%.
11/ $55 per turn plus $24,000 terminal charges. -�
12/ $.48 per thousand pounds (five landings per service
day).
13/ $7.50 per landing.
14/ Represents $.05 per thousand pounds for an extra 595
landings at Jonesboro.
15/ Marginally costed at 2% of all other expenses.
Aonendix o
Page 3 of 3
OPTION 2 SCHEDULE
ST. LOUIS, INTERNATIONAL AIRPORT
FROM CGI
DEPART
ARRIVE
FREQ
VIA
07:15A
08:OOA
123456
NIS
01:15A
02:OOP
12345 7
NIS
04:45P
05:30P
12345 7
NIS
FROM JBR
DEPART ARRIVE FREQ VIA
12:30P 02:00P 12345 7 CCI
04:OOP 05:30P 12345 7 CGI
TO CGI
DEPART
ARRIVE
FREQ
VIA
09:30A
10:15A
123456
NIS
02:30F
03:15P
12345 7
NIS
07:OOP
07:45P
12345 7
NIS
TO JBR
DEPART ARRIVE FREQ VIA
02:30P 04:OOP 12345 7 CGI
07:00P 08:30P 12345 7 CGI
MEMPHIS INTERNATIONAL AIRPORT
FROM CGI
DEPART ARRIVE FREQ VIA
09:50A 11:00A 123456 NIS
03:15A 03:45F 12345 7 NIS
FROM JBR
DEPART ARRIVE FREQ VIA
10:35A 11:00A 123456 CGI
03:20P 03:45P 12345 7 CGI
TO CGI
DEPART ARRIVE FREQ VIA
08:13A 09:30A 123456 NIS
02:05P 02:50P 12345 7 NIS
TO JBR
DEPART ARRIVE FREQ VIA
08:15A 08:40A 123456 CGI
02:05P 02:30P 12345 7 CGI
Indirect Expenses
Appendix E
Commissions 7/
Page 1 of 3
Lone Star Airlines
Advertising B/
Annual Subsidy Calculation for the
$25,280
Provision
of EAS at Cape Girardeau, Missouri
$42,300
and Jonesboro, Arkansas
CGI
10/
Option 3
Block Hours (at 95%) 1/
11/
2,347
Operating Revenue
JBR
12/
Passengers/Yield
CGI-STL: 7,100 $65
$461,500
-
JBR-STL 2,300 $85
$195,500
Total Passenger Revenue
9,400
$657,000
Other Revenue
(at 1.2% of psgr. revenue)
$7,884
Total Operating Revenue
General and Admin. 16/
$664,884
Operating Expenses
$42,133
Total Indirect Expenses
Direct Expenses
$407,272
Flying Operations 2/
$160,020
Fuel 3/
Profit (@ 5% of total costs)
$235,874
Maintenance 4/
$72,685
$312,151
Insurance 5/
$14,387
Rentals 6/
$324,000
Total Direct Expenses
Footnotes on following page.
$1,046,432
Indirect Expenses
Commissions 7/
$91,980
Advertising B/
$25,280
Passenger Related 9/
$42,300
Station Costs:
CGI
10/
$58,902
STL
11/
$73,063
JBR
12/
$52,860
Landing Fees
CGI
13/
$12,417
STL
14/
$6,690
JBR
15/
$647
General and Admin. 16/
$42,133
Total Indirect Expenses
$407,272
Total Operating Expenses
$1,453,704
Profit (@ 5% of total costs)
$72,685
Total Economic Costs
$1,526,389
Compensation Requirement
$861,505
Footnotes on following page.
Appendix E
Page 2 of 3
FOOTNOTES
Option 3
1/ 1,277 block hours for Option 1 plus 1,070 BH --36 minutes
per flight times 1,784 flights (three round trips Jonesboro -
Cape Girardeau, 113 -mile segment at 95%).
2/ Represents three captains at $24,000 each and three
first officers at $18,000 each, plus 27% benefits and taxes.
3/ Burn rate of 90 gph times $1.10/gal. plus $1.50/BH for
oil ($100.5/BH).
4/ At $133/BH ($55 for direct maintenance, $58 for overhaul
reserves, and $20 for maintenance burden).
5/ At $6.13/BH.
6/ Represents one full aircraft at $27,000 lease cost per
month.
7/ At 14% of passenger revenue.
8/ At 4% of passenger revenue.
9/ At $4.50 per passenger.
lo/ $4,800 annually for rent, plus salaries: one manager
at $15,600 and 2.5 agents at $10,800 each plus 27%. .�
11/ $55 per turn plus $24,000 terminal charges.
12/ One manager at $15,600 each and 2 agents a $10,800 each
plus 27%, plus rent at$5,616.
13/ $.48 per thousand pounds (six landings per service
day).
14/ $7.50 per landing.
15/ Represents $.05 per thousand pounds.
16/ Represents G&A costs from Jonesboro's last rate in
Order 91-7-10 ($24,362) plus the incremental cost for the
Cape Girardeau route ($17,771 per Option 1).
_ Aocendix E
Page 3 of 3
L.
ST. Louis (an)
IRON CAPE GIRARDEAU (CGZ)
TO CAPE
GIRARDEAU (CO2)
DPT
ARR
FREQ
VIA
DPT
ARR
PREQ
ST. LOUIS
(STL)
08:30A
123456
NIS
PROX 70NESDOILO
(JER)
123456
TO JONEffOEO (JAR) .
01:15P
` DPT
ARR
FREQ
VIA
DPT
ARR
PREQ
VIA
07:10A
09:30A
123456
CGI
09:30A
10:50A
123456
COI
12:40P
02:OOP
12341 7
CCI
02:30P
03:50P
12345 7
CGI
05:30P
06:50P
12345 7
CGI
07:30P
O$:SOP
12345 7
COI
ST. Louis (an)
IRON CAPE GIRARDEAU (CGZ)
TO CAPE
GIRARDEAU (CO2)
DPT
ARR
FREQ
VIA
DPT
ARR
PREQ
VIA
07:4SA
08:30A
123456
NIS
09:30A
10:15A
123456
NIS
01:15P
02:OOP
12345 7
NIS
02:30P
0 ISP
12345 7
NIS
06:05P
06:50?
12345 7
NIS
07:30P
08:15P
12345 7
NIS
`,.
Lone Star Airlines Annual Subsidy Calculation
for the Provision of EAS at
Cape Girardeau and Jonesboro to St. Louis
and one additional round trip Camden/EI Dorado -Dallas
while eliminating Camden/EI Dorado -Memphis and Jonesboro -Memphis service
Option 4
Block Hours (at 95%)
Operating Revenue
PassengersNield: CGI-STL
JBR-STL
ELD-DFW
CDH-DFW
Total Passenger Revenue
Other Revenue (at 1.2%/psgr. rev.)
Total Operating Revenue
Operating Expenses
Direct Expenses
Flying Operations
Fuel 3/
Maintenance 4/
Insurance 5/
Rentals 6/
Total Direct Expenses
CGI/JBR-STL
2,347 11
7,100
$65
$461,500
2,300
$85
$195,500
1,200
$87
600
$87
11,200
$657,000
$7,884
$664,884
$160,020 2/
$235,874
$312,151
$14,387
$324,000
$1,046,432
Attachment F
Page 1 of 4
CDH/ELD-DFW
684 17/
$104,400
$52,200
$156,600
$1,879
$158,479
$53,340 18/
$68,742
$90,972
$4,193
$0
$217,247
Footnotes on the following page.
NOTE: These subsidy amounts would be partially offset by savings associated
with the elimination of Camden/EI Dorado -Memphis and Jonesboro -Memphis service --
the savings would total $776,756.
Attachment F
Page 2 of 4
Indirect Expenses
Commissions 7/
$91,980
$21,924
Advertising B/
$26,280
$6,264
Passenger Related 9/
$42,300
$8,100
Station Costs:
CGI
$58,902
10/
-
STL
$73,063
11/
-
JBR
$52,860
12/
-
CDH
$0
ELD
$0
DFW
$11,880
19/
Landing Fees
CGI
$12,417
13/
-
STL
$6,690
14/
-
JBR
$647
15/
-
CDH
$892
20/
ELD
$647
21/
DFW
$7,761
22/
General and Admin. 16/
$84,375
$72,098
23/
Total Indirect Expenses
$449,514
$129,566
Total Operating Expenses
$1,495,946
$346,813
Profit (@ 5% of total costs)
$74,797
$17,341
Total Economic Costs
$1,570,743
$364,154
Compensation Requirement
$905,859
$205,675
Footnotes on the following page.
NOTE: These subsidy amounts would be partially offset by savings associated
with the elimination of Camden/EI Dorado -Memphis and Jonesboro -Memphis service --
the savings would total $776,756.
Appendix F
Page 3 of 4
FOOTNOTES
Option 4
1/ 1,277 block hours for Option 1 plus 1,070 BH --36 minutes
per flight times 1,784 flights (three round trips Jonesboro -
Cape Girardeau, 113 -mile segment at 95%).
2/ Represents three captains at $24,000 each and three
first officers at $18,000 each, plus 27& benefits and taxes.
3/ Burn rate of 90 gph times $1.10/gal. plus $1.50/BH for
ail ($100.5/BH).
4/ At $133/BH ($55 for direct maintenance, $58 for overhaul
reserves, and $20 for maintenance burden).
5/ At $6.13/BH.
6/ Represents one full aircraft at $27,000 lease cost per
month.
7/ At 14% of passenger revenue.
8/ At 4& of passenger revenue.
9/ At $4.50 per passenger.
10/ $4,800 annually for rent, plus salaries: one manager
at $15,600 and 2.5 agents at $10,800 each plus 27%.
11/ $55 per turn plus $24,000 terminal charges.
12/ One manager at $15,600 each and 2 agents a $10,800 each
plus 27$, plus rent at$5,616.
13/ $.48 per thousand pounds (six landings per service
day).
14/ $7.50 per landing.
15/ Represents $.05 per thousand pounds.
16/ Represents one half of the combined G&A costs from the
Jonesboro -Memphis and El Dorado -Memphis rates in Order
91-7-10 ($24,362 + $108,846), plus the incremental cost for
the Cape Girardeau service ($17,771 per Option 1).
17/ Reflects one additional round trip routed Dallas -Camden
(1.1 BH), Camden -E1 Dorado (.2 BH) and E1 Dorado -Dallas (1.0
BH). times 313 service days at 95% completion.
18/ One captain at $24,000, one first officer at 18,000
plus 271 benefits and taxes.
19/ $40 per turn at 297 turns.
20/ 297 landings at $3 per landing.
21/ At $.15 per thousand pounds.
22/ At $1.80 per thousand points.
23/ Represents one half of the combined G&A costs from the
Jonesboro -Memphis and E1 Dorado -Memphis rates in order
91-7-10 ($24,362 + $108,846), plus the incremental cost for
the additional Camden -El Dorado -Dallas service ($5,494).
Ac( palg C
Pace 4
OPTION 4 SCHEDULE
ST. LOUIS, INTERNATIONAL AIRPORT
FROM CGI
TO CGI
DEPART
ARRIVE
FREQ
VIA
DEPART
ARRIVE
FRIO
VIA
07:45A
08:30A
123456
NIS
09:OOA
09:45A
123456
NIS
11:45A
12:30P
12345 7
NIS
02:OOP
02:45P
12345 7
NIS
06:15P
07:45P
12345 7
NIS
07:45P
08:30P
12345 7
NIS
DEPART
ARRIVE
FREQ
VIA
DEPART
ARRIVE
FREQ
VIA
07:OOA
08:30A
123456
CGI
09:OOA
10:30A
123456
CGI
11:00A
12:30P
12345 7
CGI
02:OOP
03:30P
12345 7
CGI
05:30?
07:OOP
12345 7
CGI
07:45P
09:15P
12345 7
CGI
THIS OPTION WILL ALLOW LONE STAR AILRINES TO VACATE THE MEMPHIS HUB
FOR BOTH THE TONZS3ORO AND EL DORADO MARKETS. THIS OPTION WILL
REQUIRE EL DORADO TO HAVE ONE MORE ROUND TRIP DAILY To THE
DALLAS/FORT WORTH HUB.
CITY OF -CAPE GIRARDEAU
d3Cc OF' E
CMEF OF -SUOE WSQlG F1IEET
FOR IMMEDIATE RELEASE
n.. sse
MAY 18, 1992
OPERATION STEEL CURE II
The City of Cape Girardeau is pleased to serve as the host
community for the Air Guard's Operation Steel Cure II. As the host
community, the City of Cape will also play an active role in the
exercise.
Beginning at about 8:00 a.m. on Friday morning, 10/23/92, the
City of Cape will react to the simulated earthquake by conducting
a 4 hour table -top exercise to test the City's emergency operations
plan. Department directors from Public Works, Parks and
Recreation, Planning, Police and Fire, along with City management
will participate.
The goal of'this part of the exercise is to provide "hands on"
experience to City staff regarding the activation and operation of
the City's Emergency Operations Center, which is located at Fire
Station fl. City staff will test their abilities to assess events,
make decisions, communicate needs from local, state and federal
agencies, as well as provide available resources requested by local
agencies. Additionally, City staff will direct field activities as
the situation would normally demand during the first few hours of
a major natural disaster.
As part of the exercise, a request will be made to the City
for additional medical assistance from the local health care
facilities. This request will then be communicated to the
Governor's office through the appropriate channels. At this point,
medical and support units from the Army and Air National Guard will
be activated.
As part of the exercise, a number of other local agencies will
be involved. These include: St. Francis Medical Center; Southeast
Hospital; Red Cross; Salvation Army; Cape County Private Ambulance
Service; Missouri Department of Health; Missouri State Highway
Patrol; City of Jackson, Missouri; City of Delta, Missouri; County
of Cape Girardeau, Missouri; State Emergency Management Agency; and
the Missouri Association of Funeral Directors.
FOR MORE INFORMATION CONTACT:
Sgt. Carl Kinnison
Cape Girardeau Police Department (314) 335-6621
r..
DISASTER EXERCISE STEEL CURE II
WHEN: October 23-25
HVElIT: operation Steel Cure II. The largest medical exercise in
the history of the Air National Guard. steel Cure will
test the Air Guard and other military units to support
civilian authorities in responding to a simulated 7.4 -
intensity earthquake centered three miles west of Cape
Girardeau, Missouri. The earthquake will result in about
1,000 serious casualties. After the earthquake hits at
4 a.m. Friday, October 23, city and county officials will
notify the governor's office. Due to damage at cape
Girardeau's two hospitals, a temporary medical treatment
facility will be established at the Cape Girardeau Arena.
once notified by the governor, the Missouri adjutant
general will activate medical and support units of the
Army and Air National Guard. By 8 p.m. on October 23,
medical teams from St. Joseph and the 131st TFW at
Lambert Field in St. Louis will be on the ground at Cape
Girardeau. An Army Guard MASA unit from Kansas City and
a medical battalion from outstate Missouri will augment
those units.
Additional units from Jackson, Mississippi and Oklahoma
City, Oklahoma will arrive early Saturday morning. At 5
a.m. the first aeromedical evacuation fligtt wi'_l depart.
C-130 and C-141 transport aircraft will airlift up to 600
simulated casualties from the temporary patient holding
t
facility at Cape Girardeau Municipal Airport to five
federal coordination centers: Kansas City; St. Louis;
Lincoln, Nebraska; Little Rock, Arkansas; and Jackson,
Mississippi National disaster -response authorities -- the
Federal Emergency Management Agency (FEMA) and the
National Disaster Management Service (:IDMS) -- will
coordinate activities.
The exercise will end about 8 p.m., Saturday October 24
with the return of all patients and aircraft.
HISTORY: Steel Cure II is the outgrowth of a disaster -response
scenario that was tested in June of 1991 during the
Missouri National Guard's State-wide Mulex exercise.
Last year's smaller -scale version involved a simulated
tornado that destroyed a hospital in St. Joseph,
Missouri. The scope of Steel Cure 92 has expanded
tremendously to include the national disaster -response
system, military units from several states and hospitals
in each of the cities that will receive casualties.
Exercise director for Steel Cure II is Major (Dr.)
Michael Hayek. Dr. Hayek is flight surgeon for the 131st
Fighter wing, MOAnq, and director of trauma services for
Christian Hospital Northeast -Northwest in St. Louis.
FOR FURTHER INFORMATION CONTACT:
SSgt Andy Knef (314) 335-2500 OR
Major Jim Mohan (314) 263-4142