A Staff Study of The Bureau of Operating Rights SERVICE TO SMALL COMMUNITIES Part I LOCAL SERVICE CARRIER COSTS AND SUBSIDY NEED REQUIREMENTS TO SERVE MARGINAL ROUTES "'/TV * MARCH 1972 O n o •9, ■4 : Digitized by the Internet Archive in 2012 with funding from LYRASIS Members and Sloan Foundation http://archive.org/details/servicetosmallcoOOunit (i) TABLE OF CONTENTS 1.0 Introduction Pa K e 1.1 Purpose of the Study 1 1.2 Recent industry trends; effect on carriers' low density service 1 1.3 Scope of the analysis 6 2.0 Section A, Air West 2.1 Marginal route results in the context of overall results and subsidy paid 8 2.2 Analysis of Air West's marginal routes ... 9 2.3 Criteria for defining a marginal route ... 12 2 .A Air West - conclusion 18 3.0 Section B, Frontier 3.1 Marginal route results in relation to overall results and subsidy paid 20 3.2 Analysis of Frontier's marginal routes ... 20 3.3 Frontier - conclusion 23 A .0 Section C, Texas International 4.1 Marginal route results in relation to overall results and subsidy paid 25 4.2 Analysis of Texas International's marginal routes 25 4.3 Results of other CV-600 operations 28 4.4 Texas International - conclusion 30 5.0 Section D, Allegheny 5.1 Marginal route results in relation to overall results and subsidy paid 32 5.2 Analysis of Allegheny's marginal routes . . 32 6.0 Part I - conclusion 35 (ii) LIST OF TABLES Pa 8 e Table 1 Indicators of local service carrier growth . . 2 Table 2 Local service carriers' operating results, subsidy need and subsidy received k Table 3 Proportion of jet to total local service carrier operations 6 Table A Air West 1969 marginal route operating results and subsidy need 8 Table 5 Frontier 1969 marginal route operating results and subsidy need 20 Table 6 Texas International 1969 marginal route operating results and subsidy need 25 Table 7 Texas International 1969 marginal routes additional data 27 Table 8 Allegheny's 1969 marginal route operating results and subsidy paid 32 Table 9 Allegheny 1969 marginal routes additional data 33 Table 10 Subsidy paid vs. marginal route needs .... 36 Table 11 Summary marginal route comparison 37 LIST OF APPENDICES Appendix A- 1 Air West marginal route analysis through Appendix A- 1 1 Appendix B Cities included in Air West's 1969 marginal routes Appendix C Cities originating fewer than 40 daily passengers but not included in Air West's marginal routes Appendix D Non-hub cities originating 40 or more Air West passengers per day Appendix E Description of costing methodology (iii) LIST OF APPENDICES - continued Appendix F (Not used) Appendix G-l Frontier marginal route analysis through Appendix G-14 Appendix H Cities included in Frontier's 1969 marginal routes Appendix I Cities originating fewer than 40 daily passengers but not included in Frontier's marginal routes Appendix J Non-hub cities originating 40 or more Frontier passengers per day Appendix K- 1 Texas International marginal route analysis through Appendix K-7 Appendix L Cities included in Texas International's 1969 marginal routes Appendix M Cities originating fewer than 40 daily passengers but not included in Texas International's marginal routes Appendix N Non-hub cities originating 40 or more Texas International passengers per day Appendix (Not Used) Appendix P-l Allegheny marginal route analysis through Appendix P-6 Appendix Q Cities included in Allegheny's 1969 marginal routes Appendix R Cities originating fewer than 40 daily passengers but not included in Allegheny's marginal routes Appendix S Non-hub cities originating 40 or more Allegheny passengers per day Appendix T Points on Allegheny's system which have been suspended or transferred Appendix U Comparison of carriers analyzed in Part I (v) This is Part I of a three-part study prepared by the Bureau of Operating Rights, A. M. Andrews, Director, Roy Pulsifer, Assistant Director. Part I was completed in four sections between March and August, 1971, and was edited without substantive changes in March, 1972. The analyses were performed under the general direction of Robert G. Cook, Chief, Licensing Unit B and Arthur B. Wells, Senior Industry Economist, by Arthur B. Barnes, Samuel J. Lebowich, James F. Ransom and other staff of Unit B. ■k -k -k -k SUMMARY OF CONCLUSIONS Local Service Carrier Costs and Subsidy Need Requirements to Serve Marginal Routes This study identifies and costs local service carrier "marginal routes" j_.£., that portion of a carrier's system that would not receive certificated service either now or in the future but for subsidy . Air West, Allegheny, Frontier and Texas International were examined on the basis of 1969 data. The report concludes that, in general, operation of the standard 40 to 60 seat aircraft employed by local service carriers is economi- cally justified only at points originating 40 or more passengers a day. (Forty originations, is, of course, an average. Depending on the degree of integration with other marginal points and other factors, given stations of the various carriers occasionally achieve better than average results if fewer passengers are enplaned and vice (vi) versa). Operating profits are earned in the case of some 40-or- more-passenger points, and even where losses are experienced at such points "economic need" 1/ is relatively low on both a percent- age-of -revenue and per-passenger basis. Moreover, the 40 passenger- and-up services typically have potential for further improvement given reasonably good general economic conditions. Accordingly, they are considered non-marginal, and are believed not to require public subsidy on the long term, assuming normal traffic growth. Conversely, less than 40 originations generally means that substantial subsidy is required for the provision of two round trips a day with standard local service equipment. Moreover, many of these smaller communities possess static population, or popula- tion that is in actual decline. The study focuses on this genuinely marginal part of the local carrier system—service at points originating fewer than 40 passengers a day. For the four carriers, detailed economic analyses are presented for 38 marginal routes involving 126 marginal points. These services developed aggregate operating losses and economic need of $20.5 million and $27.4 million, respectively. Frontier served the largest number of marginal points--56- -and experienced the largest marginal 1_/ "Economic need" consists of the operating loss plus return on investment requirement (including an allowance for income taxes). Where there is an operating profit, the economic need is, of course, less than the return and tax requirement. Economic need is frequently referred to as "subsidy need". (vii) route operating loss of the four carriers, $8.1 million, and largest economic need, $11.0 million. Texas International served the fewest marginal points-- 15, and had the lowest operating loss, $2.9 million, and lowest economic need, $3.9 million. Total system subsidy payments to these carriers in 1969 aggregated $20.8 million or $6.6 million less than the economic need of their marginal routes under the then prevailing subsidy payment formula known as Class Rate IV. (One of the four carriers --Air West — received subsidy payments of $9.4 million, or $2.1 million i_n excess of its marginal route economic need.) Under Class Rate V, effective in fiscal year 1971, actual subsidy payout was based on a revised formula favoring marginal points in order to create incentives for the carriers to maintain adequate service at such points. These higher subsidy payments more closely approximate, and many exceed, the high economic need - -on average $22.43 per passenger--f or the marginal routes surveyed by Part I. ! 1.0 INTRODUCTION 1.1 Furpose of the Study . This Study identifies and costs certain certificated services of Allegheny, Air West, Frontier and Texas International which appear incapable of generating any operating profits or return on investment now or in the future. These permanent loss situations (herein "marginal routes 1 ') show a formidable subsidy need at 1969 cost levels--$5.2 million for Allegheny, $7.3 million for Air West, $11.0 million for Frontier and $3.9 million for Texas International. Included are services to 22 Allegheny points, 33 for Air West, 56 for Frontier and 15 for Texas International, each of which generated fewer than 40 daily passengers in 1969. The factual data developed, and the conclusions derived therefrom, are useful in evaluating various alternatives related to continuing or changing the type of service provided to the nation's smaller and relatively isolated communities which are incapable of fully supporting, on a self sustaining basis, certi- ficated air service. 1 .2 Recent industry trends; effect on carriers' low density service . The original role of local service carriers in the nation's air transportation system was the provision of service on highly- subsidized linear routes extending principally between small and (2) medium-sized communities, on one hand, and regional transfer points on the other. Significant additional responsibilities were under- taken in the decade of the sixties, particularly since 1966: the carriers obtained access to numerous high-density, intermediate- haul, hub-to-hub markets by the removal of stop restrictions and were awarded route extensions between the small and medium-sized communities originally served and out-of -region major traffic sources such as New York, Chicago and Los Angeles. In addition to the public benefits resulting from these services, the Board anticipated that the growth and operating efficiencies inherent in the new authority would provide carrier strengthening, internal cross-subsidization of the original feeder routes, and reductions in required subsidy. Table 1 furnishes some indication of the growth which the locals have in fact achieved in large part as a result of this broadened route program: TABLE 1 INDICATORS OF LOCAL SERVICE CARRIER GROWTH Overall Scheduled Service Available Revenue Passenger Commercial T on mi Miles Mi les Revenue Investment — ' Amount (in L 1 lions ) 1965 585 2,621 $225 $150 1966 761 3,468 293 242 1967 1,024 4,114 349 366 1968 1,470 5,489 460 527 1969 1,859 6,311 576 588 1970 2/ 2,113 7,220 681 602 1/ 1966 30.1% 1967 34.6 1968 43.6 1969 26.5 (3) TABLE 1 (cont.) Overall Scheduled Service Available Revenue Passenger Commercial Ton Miles Mi les Revenue Investment — Percent Increase from Previous Similar Period 32.37c 30.27o 61.3% 18.6 19.1 51.2 33.4 31.8 44.0 15.0 25.2 11.6 1970 2/ 20.0 18.2 26.3 1.8 1/ Includes equipment purchase deposits prior to 1967. 2/ Year ended September 30 (preliminary data). Source: Air Carrier Traffic Statistics ; Air Carrier Financial Statistics ; Handbook of Airline Statistics. The growth in capacity in f our-and-three-quarter years from 1965-- a 261% increase as measured by ATMs--has been substantial and has been accompanied by reductions in total operating expense per ATM and per RTM amounting to 27% and 10%, respectively. However, during the same period, the local service industry experienced a 48% cut in subsidy payments as well as a number of factors adversely affecting commercial revenues- -development of the interstate highway system, making travel by private car more attractive in many short and medium-haul markets; loss of population in many sparsely-settled communities served by these carriers, particularly in the west; and introduction of air taxi and intrastate service at certain points (with however, limited effects to date) . (4) Regardless of the exact causes, the improvement in earnings necessary to support the four-fold increase since 1965 in aircraft and related investment has not been forthcoming: TABLE 2 LOCAL SERVICE CARRIERS' OPERATING RESULTS, SUBSIDY NEED AND SUBSIDY RECEIVED Economic Need 1965 $42 1966 31 1967 50 1968 50 1969 52 1970 1/ 27 Operating Loss Including Return Including Actual Before Subsidy on Investment Return & Tax Subsidy (1) (2) (3) (4) Amount (in millions) $57 $66 $66 54 65 55 80 91 51 92 108 41 99 116 36 75 94 34 1/ Year ended September 30 (preliminary data). Notes to columns: (1) & (4) From Air Carrier Financial Statistics ; Handbook of Airline Statistics . (2) Column 1 plus return on investment. Return computed using the differentiated rates of return (including minimum rates) incorporated in the class subsidy rate effective in each period. For this purpose the total investment shown in Table 1 was spread to the various classes of investment in proportion to the actual distribu- tion at September 30 of each period. (3) Column 2 plus Federal income tax requirement. Tax computed at the prevailing rate in each period. In none of the above years did the local service carrier group earn an operating profit from commercial revenues; except for 1965, (5) its total subsidy need (including a full tax provision) has exceeded actual subsidy received (by over three times in 1969). During the last four years, the economic need based on allowable return (column 2 of Table 2) has exceeded actual subsidy received by an aggregate $184 million. Results such as these cannot continue for any extended period. The carriers have attempted to adjust to the adverse profita- bility trend, in part, by discontinuing service on the less dense routes and to smaller communities, particularly where a commuter replacement has been available. For its part, the Board has moved away from the former comparatively low use-it-or- lose-it standard of five originating passengers per day above which carriers were expected to continue service regardless of cost. Thus, in a recent case where the projected traffic substantially exceeded this standard and in the absence of extreme community isolation, the Board determined that a subsidy need of $16.70 per passenger would be excessive in relation to the benefits conferred ( Service to Sedalia, Missouri , Docket 16606, Order 70-6-22, June 2, 1970). The trend toward less certificated service on thin routes has been hastened by the gradual but steady decline in subsidy payments (Table 2) and by the substantial conversion to jet aircraft which cannot operate into many small-city airports: (6) TABLE 3 PROPORTION OF JET TO TOTAL LOCAL SERVICE CARRIER OPERATIONS Percent Jet Number of Aircraft Prop Jet Total of Total December 31, 1966 379 19 398 A. 8% December 31, 1969 315 148 463 32.0 Available ton miles (in millions) Calendar 1966 669.0 89.2 758.2 11.8 Year to June 30, 1970 650.8 1,394.9 2,045.7 68.2 Revenue passenger miles (in millions) Calendar 1966 3122.4 345.1 3,467.5 10.0 Year to June 30, 1970 2378.1 4,490.2 6,868.3 65.4 Source: CAB Report, Number of Aircraft Available for Service ; Form 4 1 Reports . Table 3 reflects a dollar investment in jets (at cost) which increased from $47 million or 20% of investment in all aircraft types in 1966, to $291 million or 52% by the end of 1969. Also reflected is the substantial jet capacity leased by the local carriers. Despite the overall unit operating expense reductions mentioned on page 2, costs on the carriers' original feeder-type routes have increased due to rapidly escalating pay scales and other largely non-controllable increases. For example, the cash aircraft operating expense for an Air West F-27 turboprop 100-mile hop in 1969 was 31% higher than the similar operation in 1965; over the same time span, Frontier experienced direct cash cost increases of 19% for a similar hop 1.3 Scope of the analysis . The present report deals with the (7) costs of the carriers' marginal routes. A marginal route as defined herein includes services to one or more points at which the carrier originated fewer than 40 daily passengers in 1969. The various routes were set up on the basis of actual 1969 flight routings for each carrier. Although certain other limiting criteria were applied, current subsidy eligibility status was not a factor in determining marginality. All of the criteria are fully explained in Section A, Air West . A description of general costing methodology employed is given in Appendix E. The analyses indicate that nearly all operations at stations originating less than 40 passengers a day, or 80 in-and-out, are extremely unprofitable. Service at these points by presently certi- ficated carriers without Federal subsidy support, that is, by cross or internal subsidization, is not a practical prospect, and accounts for the emphasis in this report on costing such operations . This approach is consonant with the restructuring of the subsidy payment formula under Class Rate V to provide incentives for the retention of certificated service to the smaller, out-of-the-way cities pending the development of alternative policies. By contrast, operations at points originating more than 40 passengers are less of a drain even where they consist of feeder rather than hub-to-hub, competitive services. And the ratios of (8) operating Loss and subsidy need to commercial revenue generally improve as the size of stations served increases. This holds out reasonable prospects that these denser feeder routes can reach an operating breakeven point or better two or three years after the current traffic slowdown ends and normal market growth resumes. In these circumstances, unlike the marginal routes, these services could be effectively cross-subsidized pending their development as fully self sustaining routes. 2 .0 Section A, Air West 2 . 1 Marginal route results in the context of overall results and subsidy paid . Air West's marginal routes in 1969 showed the following economic results: TABLE 4 AIR WEST 1969 MARGINAL ROUTE OPERATING RESULTS AND SUBSIDY NEED Per Per Revenue Amount Passenger Pol lar Commercial Revenue $5,487,000 $18.00 Operating Loss 5,912,000 19.39 $1.08 Return & Tax Requirement 1,379,000 4 ,53 .25 Economic Need 7,291,000 23.92 1.32 Number of Passengers 304,847 (9) As shown, the subsidy need of Air West's marginal operations was $7.3 million. On its entire system--jet operations, hub-to-hub routes, foreign routes, denser feeder routes, marginal routes-- Air West experienced an economic need of $27.8 million in 1969. By con- trast with these need figures of $7.3 million and $27.8 million, Air West received $9.4 million in Federal subsidy payments. This means first, that Air West was overpaid by $2.1 million in terms of subsidy support for its strictly marginal system ($9.4 million less $7.3 million); and second, that the marginal routes' economic need of $7.3 million, although sizeable, accounted for only about 26% of the carrier's huge 1969 system-wide need ($7.3 million-?- $27.8 million). Obviously, Air West's supposedly more lucrative routes contributed nothing by way of cross-subsidization to support of the marginal routes and in fact drained subsidy--in view of the relative proport- ions of need on the marginal and non-marginal routes, it is apparent that the latter in 1969 effectively absorbed a substantial portion of the $9.4 million of subsidy actually paid Air West. 2.2 Analysis of Air West's marginal routes . The 1969 results shown in Table 4 reflect operations on eleven separate marginal routes, identified under criteria explained hereafter. Collectively, these routes serviced 33 marginal points with a combined population of one million. One or more of these cities is located in each of the eight western states in which Air West operates . The cities comprise 43% of the (10) total of 76 stations served by Air West, accounting for 5.2% of Air West's 1969 originating passengers, 8.1% of its revenue passen- ger miles in scheduled service, and 9.2% of its passenger revenues. An alphabetical listing of these marginal points is given in Appendix B . Operations were performed mainly with F-27/27A 40-passenger aircraft although Piper Navajo six-seaters were used to some extent on four of the routes. The F-27/27A marginal route operations com- prised 36% of system F-27/27A operations in terms of departures and 28% in terms of mileage. Aircraft operating expenses on the eleven marginal routes amounted to $6.6 million and servicing expense came to $4.8 million; 1/ a total of $11. A million, or 12.8% of Air West's system operating expense. As Table k shows, the marginal routes on an overall basis incurred a subsidy need per passenger of $23.92. In assessing the level of unprof itabi lity , it is highly significant that 15 of the 33 low-volume points received at least some service from a commuter air carrier, another certificated carrier, or, in one case--Lake Tahoe, Calif ornia- -an intra-state carrier. See Part II of the Study. 1_/ The resultant ratio of servicing expense to aircraft operating expense under the Subpart K methods we have used- - 73%- -is lower than Air West's system ratio of 100%, as might be expected in order to reflect the comparatively low loads on the marginal routes. Furthermore, the capacity elements of Subpart K servicing expense (weighted departures and weighted stations) produce 35% of the total servicing costs we have computed. The comparable system- wide figure is only 26%. In addition to these servicing costs there is a full allocation of return and tax requirements to the marginal routes. Thus, two critical characteristics- -high capacity costs relative to traffic volumes and comparatively low traffic volumes and associated costs--are properly reflected in the marginal route cos tine . (11) Again referring to Table A, the $7.3 million is the subsidy need for the marginal system in 1969, as operated. However, if all of the marginal routes were deleted the subsidy need decrease (at 1969 cost levels) would come to $7.8 million. The extra $.5 million reflects the on-line revenue (net of traffic-handling expense) that Air West would retain on its remaining system. A fuller examination of Air West's marginal routes, their public service benefits and costs, is given in Appendices A- 1 through A-ll which show stations served, segment operational and traffic data, financial results and other pertinent information for each route. As may be observed, the routes include a wide variety of service situations. For example, the size of cities served in terms of 1970 population ranges from 151,000 (Tacoma? Washington) down to well under 3,000, as typified by Sun Valley/ Hailey/Ketchum, Idaho; the median for all 33 cities is 17,000. Cedar City, Utah and Kalispell, Montana are relatively isolated; on the other hand, Marysville, California is only A3 road miles from the hub point Sacramento . Traffic originated per station per day ranged from a high of 38 passengers (Chico, California) down to one passenger (Ontario, Oregon/Payette, Idaho). The various routes also show a wide range of economic need per passenger and per revenue dollar by comparison with the (12) average for all eleven routes. For example, Baker and Ontario, Oregon, served with Piper Navajo aircraft, incurred an extraordinarily high need of $79.00 per passenger and $3.60 per dollar of commercial revenue (Appendix A-ll). The operating loss ratio (operating loss as a percentage of commercial revenue) was 344% on this route. On the other hand, Air West's Idaho Fal ls-Pocatel lo service involved a need of $10.41 per passenger and 48C per revenue dollar, and an operating loss ratio of 32% (Appendix A-3). For further details regarding each route consult the appropriate section of Appendix A. 2.3 Criteria for defining a marginal route . To identify those certificated services which are, and will be, incapable of generating any operating profit or return on investment, the carrier's smaller feeder-type services were focused upon. These principally include small points which are geographically isolated and/or lack alternate good public transportation. It can be expected that, aside from temporarily increased financial aid of the type currently being pro- vided by Class Rate V, Congress, the Executive and the Board will increasingly insist that Federal subsidy of air transportation be limited to the type of service to small communities and out-of-the- way points included in our definition of marginality. Because of this strong interest in more precisely channeling subsidy benefits in the future, it was decided that subsidy eligibility under existing certificates of public convenience (13) and necessity should be ignored in determining a route's marginality status, that is, that economic tests should govern. In addition, it appeared desirable to evaluate Air West's various feeder-type opera- tions on the basis of comparative profit margins rather than solely on absolute dollars of subsidy need. This would assist in inter- preting 1969 results, which apparently were distorted by abnormally high unit costs. (Air West's Subpart K servicing unit costs, for example, exceeded those of the next highest local service carrier-- Mohawk--by 32% in the year ended September 30, 1969. This contributed to a 1969 system-wide subsidy need over twice that of any other local, service carrier). Accordingly six factors were adopted for defining the marginal operations of Air West and any carriers subsequently studied: (1) marginal routes were limited to operations serving stations where Air West originated fewer than 40 daily passengers. Where this condition was satisfied stations were nevertheless excluded from the marginal system where Air West (2) provided any pure jet schedules or (3) averaged more than six daily actual flight departures. Also excluded were (A) services to satellite airports, (5) services to foreign points, and (6) services producing an operating profit. Comments on each factor are as follows: ( 1 ) Only services to stations where Air West originated fewer than 40 passengers per day were considered . The 33 stations listed (14) in Appendix B met this principal requirement. At several other stations, shown in Appendix C, Air West also originated fewer than 40 passengers a day but failed to satisfy one or more of the remaining criteria . The 40 passenger cut-off was not predetermined; it was arrived at by analysis of 1969 operations. The first step was to determine the actual route patterns for Air West's feeder-type operations. This involved, where possible, grouping stations served by common flights and in general devising routes according to aircraft rota- tion and traffic flows rather than from existing certificate des- criptions. The various resulting routes were then costed (see Appendix E for methodology). As already mentioned, operations serving the under-40-passenger stations were found to be extremely unprofitable, with operating losses of a magnitude not likely to be eliminated in the foreseeable future through any reasonable rate of traffic growth. In addition, with a subsidy need ranging from about $10 to $79 per passenger, aggregating $7.3 millions for these under- 40-passenger services, it is unrealistic to expect effective internal subsidization from the carrier's major operations. Utilization of Her aircraft could not produce enough cost savings to eliminate perating losses and would tend to lower commercial revenue where traffic peaking occurs. Thus, certificated service at the under-40- passenger feeder points is not feasible without Federal subsidy sma i ) (15) support. On this basis it was determined that the eleven routes shown in Appendix A comprise genuinely marginal operations for Air West . By contrast, operations at nine stations served exclusively with non-jet equipment but originating 40 or more Air West passen- gers a day (these can be identified from Appendix D) produced substantially better overall results. For example, Air West's Pullman and Walla Walla, Washington operation (48 and 47 daily passenger originations, respectively) produced an operating loss ratio of 25% and a subsidy need per passenger of $6.78 and per revenue dollar of 36C . Not all of these larger stations did as well; however, the overall operating loss ratio is comparatively low on these denser feeder routes . Moderate traffic growth for two or three years should tend to reduce such loss ratios to small proportions, or possibly under favorable conditions to produce s operating profits. This could be reinforced by elimination of factors producing the apparently atypically high 1969 unit costs. Thus, operating results could improve enough that even a modest degree of cross-subsidization from Air West's major routes would be effective. Finally, at stations where Air West is able to originate more than 40 passengers a day, or 80 in-and-out, it is logical to expect reasonably good loads with two turboprop round trips, at least in instances where the traffic can be consolidated ome (16) with that of other cities. In sum, it became clear during the course of the analysis that, on Air West's system, services to cities origi- nating 40 or more daily passengers are entitled to non-marginal c lassif ication . (2) Jet operations were excluded . The local service carriers acquired two and three-engined purejet aircraft - -DC-9/s , B-737's, B-727's--as a competitive tool in such hub-to-hub operations as Las Vegas-Los Angeles; the aircraft also are used in the larger non- competitive markets such as Las Vegas-Phoenix and Las Vegas-Santa Ana. Route awards to local service carriers in recent years have been based on findings of subsidy need reduction, and were made subsidy ineligi- ble. Moreover, Federal funding was never intended to subsidize the acquisition of jet fleets to service subsidy-ineligible routes, nor was it contemplated that Federal subsidy would be needed to support jet operations on the original feeder-type routes. In addition, because of their size and operating cost characteristics, jets are unsuitable for service to points of low traffic generation. Conse- quently, operations to any under-40-passenger points where Air West provided regularly scheauled jet flights were excluded from the marginal routes. However, as Appendix C indicates, no Air West cities were excluded solely because of this criterion. Although Stockton, California is included on marginal route A-2, it should be noted that Air West has introduced jet service there (17) since 1969. Thus, if this report were based on fully current data, services to Stockton would be excluded regardless of the traffic level . (3) Operations to stations where Air West provided more than six daily flight departures . The purpose of this standard was to exclude from the marginal routes any station where a carrier, des- pite under-40-passenger volume, mounted substantially more than a minimum pattern of service. The theory is that any restructured subsidy method should not be expected to support services to points where a clearly excessive number of schedules is being provided. 27 However, in 1969 Air West provided no such excess services. (4) Services to satellite airports were excluded . As part of the major metropolitan areas, the principal California satellites were considered to have significant potential regardless of Air West's 1969 traffic levels and specific route alignments at thes'e points. Satellites served in 1969 included Burbank, Long Beach, Oakland, San Jose and Riverside/Ontario. Without this standard, 1969 Air West operations at Long Beach, Oakland and Riverside (but not Ontario) would have fallen into the marginal classification. (5) Operations to foreign points were excluded . These operations are beyond the scope of a domestic subsidy-support program. Foreign points served included Calgary, Canada, and LaPaz , Mazatlan and 2/ The burden of such excess schedules, if related to route segmentation, junction points, etc., could be eliminated at carrier initiative through relatively simple route adjustment procedures. (18) Puerto Vallarta, Mexico. (6) Services producing an operating profit were excluded . It was determined that a marginal route should not include operations producing an operating profit from commercial revenue. Such opera- tions would show at least a partial return on investment and there- fore require minimum, if any, internal subsidization. Thus, where some portion of a marginal route produced relatively good load and revenue levels in 1969, that specific portion was tested to determine whether it produced an operating profit standing alone. On this basis services to one Air West station -- North Bend, Oregon -- which otherwise would have been considered marginal, were excluded. 2. 4 Air West - conclusion . To sum up Section A , although the major portion of Air West's 1969 losses and subsidy need are related to jet and trunkline- type services, the carrier is operating sub- stantial marginal route services which require Federal subsidy support for continuance. Air West undoubtedly would dispute the $7.3 million subsidy-need figure arrived at herein, because of the fairly tight criteria employed in delimiting marginal operations. From a private, corporate-interest standpoint the carrier probably would consider any service as marginal (and thus subsidy-worthy) which, after a reasonable developmental period, failed to make an appreciable return on invested capital (certain tributary services might be less severely evaluated). And, based on subsidy-eligibility (19) provisions of its existing route certificate and its large system- wide economic need, Air West would be entitled to claim more than $7.3 million. However, for the reasons already stated, it is believed that the costing techniques and assumptions and the re- sults obtained are correct from a long-range public policy standpoint . Air taxi operators also must look critically at services not generating viable returns, but since their costs in specific markets are substantially lower than certificated carriers' average system costs their market-entry threshold is correspondingly lower (see Part II of this Study). Whether previously non-marginal Air West services will be converted to marginal status as a result of additional incursions by intra-state and air taxi operators is a question not directly focused on in this Part I. The possibility, however, seems a real one. (20) 3 .0 Section B. Frontier 3 . 1 Marginal route results in relation to overall results and subsidy paid . Frontier's marginal routes in 1969 showed the following economic results: TABLE 5 FRONTIER 1969 MARGINAL ROUTE OPERATING RESULTS AND SUBSIDY NEED Per Per Revenue Amount Passenger $26. 94 Doll ar $13,956,000 8,104,000 15.64 $ .58 2,897,000 5.59 .21 $11,001,000 $21.23 $ .79 518,065 Commercial Revenue Operating Loss Return and Tax Requirement Economic Need Number of Passengers The marginal route subsidy need of $11 million amounted to 80% of Frontier's system-wide need of $13.8 million. By contrast with these need figures, Frontier was paid $6.7 million in Federal subsidy, or $4.3 million less than the marginal route need and $7.1 million under the system-wide need. The relationship of system-wide economic need to actual subsidy was not unlike that of the local service carrier group (see Table 2, Section 1.2). 3.2 Analysis of Frontier's marginal routes . The 1969 results shown in Table 5 reflect operations on fourteen separate marginal routes, established under criteria described in Section 2.3 above. 3/ 3/ The Frontier marginal routes essentially comprise services to cities originating fewer than 40 Frontier passengers per day; excluded, however, are operations to five cities which showed operating profits for Frontier in 1969 and to three cities with more than six daily Frontier flight departures (see Appendix I for details). None of the other criteria for determining marginality came into play in the Frontier analysis. (21) The routes served 56 marginal points with a combined population of 1.6 million. One or more of these cities is located in 13 of the 15 Rocky Mountain/Midwest states served by Frontier (there were no Frontier marginal points in Nevada and South Dakota). The 56 cities comprise 58% of the total of 96 stations served by Frontier in 1969, accounted for 10.7% of Frontier's originating passengers, 15.7% of its revenue passenger miles in scheduled service and 19.8% of its passenger revenues. An alphabetical listing of the marginal points served on all 14 routes is given in Appendix H. The marginal route operations were conducted principally with CV-580 50-seat aircraft; the CV-600 was used on less than 1% of the mileage. The CV-580/600 marginal route operations represented 57% of system non-jet operations in terms of departures and 47% in terms of mileage. Aircraft operating expense on the 14 marginal routes amounted to $13.3 million and servicing $8.7 million, a total of $22 million, or 26.8% of Frontier's system operating expense. Although Frontier's marginal route servicing expense per passenger is higher than Air West ' s--$16 .83 vs. $15 .65--Frontier ' s ratio of servicing expense to aircraft operating expense is actually lower, 65% compared to Air West's 73%. This is due to the fact that Frontier CV-580 direct costs-- $25.75 per passenger and $1.40 per revenue plane mile--are 18% and 7% above the corresponding Air West marginal route unit costs. The latter reflect an 80-20 mix of F-27/27A and Navajo mileage. Frontier's (22) marginal route station costs (as shown in Forms 41 and herein on page 3, Appendices G-l through G-14) averaged $32,900 compared to $43,600 for Air West (pages 3, Appendices A-l through A-ll), which may be an indication of smaller marginal point size, regional cost advantages in ground and indirect expenses or both. The $11 million subsidy need shown in Table 5 is for the 14 marginal routes as operated in 1969. If all of the marginal routes were deleted, the subsidy need decrease (at 1969 cost levels) would come to $13 million. The additional $2 million reflects the on-line revenue net of expense that Frontier would retain on its remaining system . A full analysis of Frontier's marginal routes is given in Appendices G-l through G-14 which show, for each route, stations served, segment operational and traffic data, financial results and other pertinent information. To the extent feasible, each route is an independent complex serving closely related marginal points and can be separately evaluated. The results arrived at should fairly reflect the actual costs of each specific operation standing alone. 4/ The population of cities served extends from 328,000 (Tulsa, Oklahoma) down to 3,000 (Wolf Point, Montana) with a median for all 4/ In the summary results for the fourteen routes shown in Table 5, certain duplications resulting from mileage, traffic, and related costs and revenues on inter-route operations appearing in two separate marginal costings have been eliminated. (23) 56 points of 14,000. Among the more isolated points served are Glasgow, Montana (Appendix G-7) and Garden City, Kansas (Appendix G-5), approximately 270 and 200 road miles, respectively, from the closest remaining certificated air service if Frontier's marginal routes were deleted. Traffic originated per station per day ranged from a high of 39.6 passengers at Durango, Colorado (Appendix G-3) down to 1.7 passengers at Lewistown, Montana (Appendix G-7); the median for the 56 marginal points was 10.9 passengers per day. The various routes also show a wide range of economic need per passenger and per revenue dollar by comparison with the averages for the entire marginal system. For example, service to Alliance, Chadron and Sidney, Nebraska (Appendix G- 12) incurred a comparatively high subsidy need of $57.00 per passenger and $2.11 per dollar of commercial revenue. The operating loss ratio (operating loss as a percentage of commercial revenue) was 173% on this route. On the other hand, Frontier's Hot Springs, Arkansas service involved a need of only $4.78 per passenger and 21C per revenue dollar, and an operating loss ratio of 10%. For further details regarding each route consult the appropriate section of Appendix G. 3.3 Frontier - conclusion . In 1969 Frontier operated a mar- ginal route system which was the most extensive geographically and in terms of number of stations served of any local service carrier. The (24) $11 million subsidy need for these marginal routes comprised the major portion of Frontier's 1969 system-wide subsidy need. At 21 of the 56 Frontier marginal points there was commuter air carrier or certificated service by a carrier other than Frontier. To some indeterminate extent, this competition may have lifted the sub- sidy need figure above what Frontier otherwise would have experienced. (25) 4 .0 Section C, Texas International 4 . 1 Marginal route results in relation to overall results and subsidy paid . Texas International's marginal routes in 1969 showed the following economic results: TABLE 6 TEXAS INTERNATIONAL 1969 MARGINAL ROUTE OPERATING RESULTS AND SUBSIDY NEED Amount Passenger $22.15 17.03 5.97 $23.00 Dollar $3,799,000 2,921,000 1,023,000 $3,944,000 171,490 $ .77 .27 $1.04 Commercial Revenue Operating Loss Return and Tex Requirement Economic Need Number of Passengers The marginal route subsidy need of $3.9 million amounted to 30% of Texas International's system-wide need of $12.4 million. By con- trast with these need figures, Texas International received $3.3 million in Federal subsidy, or $.6 million less than the marginal route need and $9.1 million under the system-wide need. This system- wide economic need exceeded actual subsidy received by a somewhat greater margin than that of the local service carriers as a group (see Table 2. Section 1.2). 4.2 Analysis of Texas International's marginal routes . The 1969 results shown in Table 6 reflect operations on seven separate (26) 5/ marginal routes, established under the criteria previously described. — The routes served 15 marginal points _6/ comprising 29% of the total number of system stations, and accounted for 33% of the system non- jet departures, 8.8% of the system's passengers and 7.9% of system passenger revenue. For every dollar of revenue generated by the marginal routes, $1.04 of subsidy need resulted. The $3.9 million subsidy need shown in Table 6 is for the seven marginal routes as operated in 1969. If all of the marginal routes were deleted, the subsidy need decrease (at 1969 cost levels) would come to $4.5 million. The additional $.6 million reflects the on-line revenue net of expense that Texas International would retain on its remaining system. Additional information concerning the Texas International marginal routes is given in Table 7 below: 5/ The Texas International marginal routes essentially comprise services at cities originating fewer than 40 Texas International passengers per day; excluded, however, are operations to those cities with more than six daily Texas International departures, operations to four cities receiving jet service and operations to three Mexican points, one of which also received jet service (See Appendix M for details). One city, Jackson, Mississippi, which was served with a non-stop jet round trip operating six days a week between Jackson and Houston for a four month experimental period was nevertheless treated as a marginal point since Texas International did not subsequently schedule any jet service at Jackson . 6/ See Appendix L for a list of these points. (27) TABLE 7 TEXAS INTERNATIONAL 1969 MARGINAL ROUTES ADDITIONAL DATA Number of Stations Total Passengers (000) Subsidy Need (000,000) Subsidy Received (000,000) Percent Subsidy Received of Need Average Station Expense (Form 41) Combined Population Aircraft Operating Expense per Passenger Servicing Expense Per Passenger Ratio-Svcg. Expense to Acf t . Operating Exp Non-Jet Departures RPM's in Scheduled Service (000) Passenger Revenue (000) Total Operating Expense (000) Percent Marginal Marginal Total Routes Routes System of System 15 52 29.0% 171 1,950 8.8 $3.9 $12.4 $ 3.3 85% 2 7% $38,600 661,000 $25.14 $14.05 56% 33,683 101,908 33.0 40,088 542,219 7.4 $ 3,470 $ 43,747 7.9 $ 6,715 $ 55,110 12.2 An analysis of each Texas International marginal route is given in Appendix K showing stations served, segment operational and traffic data, financial results and related information. To the extent feasible each route is an independent complex serving closely related marginal points and can be separately evaluated. The results arrived at should reasonably reflect the actual costs of each specific operation standing alone . jj The population of cities served extends from 150,000 (Jackson, Miss.) down to 16,000 (Brownwood, Texas). ]_/ In the combined results shown in Table 6 the duplicate mileage, traffic, costs and revenues on inter-route operations have been elimi- nated . (28) Traffic originated per station per day ranged from a high of 37.2 passengers at Alexandria, La. (Appendix K-l), down to a low of 8.1 passengers at Galveston, Texas (Appendix K-4); the median for the marginal points was 15.0 passengers per day. The various routes also show a wide range of economic need per passenger and per dollar by comparison with the averages for all seven marginal routes. For example, service to Lufkin, Texas (Appendix K-6) incurred a relatively high subsidy need of $40.00 per passenger and $2.05 per dollar of commercial revenue. The operating loss ratio (operating loss as a percentage of commercial revenue) was 162% on this route. By contrast, Texas International's service to Alexandria and Monroe, Louisiana, El Dorado and Pine Bluff, Arkansas, and Jackson, Mississippi, involved a need of $15.67 per passenger and 75C per revenue dollar, and an operating loss ratio of 52%. For further details regarding each route consult the appro- priate section in Appendix K. Currently, seven of the marginal points are receiving service with Beech 99 equipment and three cities, Jonesboro, Arkansas, and Lufkin and Victoria, Texas, are served exclusively with the Beech 99. A. 3 Results of other CV-600 operations . Marginal routes accounted for only 30% of Texas International's CV-600 mileage in 1969. The much larger non-marginal CV-600 operation produced an operating loss ratio of 22% (compared to 77% on the marginal routes) and a dollar (29) loss of $3.5 million, about half of the entire system operating loss of $7.1 million. Due to the size and relative importance of the non-marginal CV-600 loss a limited analysis was made of certain of these operations. Operations at Texarkana (originating 67 passengers per day) produced an operating loss of $328,000 and operating loss ratio of 28%. By contrast, operations at Waco (originating 53 passengers per day) produced an operating loss of $533,000 and loss ratio of 82%, higher than the loss ratio of some marginal operations (Appendix K). Tyler and Longview were excluded from the marginal route analysis because each exceeded the criterion of six daily flight departures, although generating only 28.15 and 31.50 daily passengers, respectively The two points, which are only 40 air miles apart, had a combined operating loss of $793,000 in 1969. Texas International operated four westbound and one eastbound daily flights serving both points, a total of 1,713 annual flights with aircraft operating expense alone of $139,000. Although some consolidation of traffic is made possible by these flights, it appears that the carrier may be hamstrung by certificate requirements. 8/ Both cities are segment junction points for four different segments, 3 ,4 , 6 and 13, and the requirement to 8/ At the time of preparation of this Study, the carrier was still operating five daily flights between the points. Approximately 50% of the current (April 15, 1971) service at Longview and Tyler is operated with Beech 99 equipment. (30) land at the segment junction points probably explains the volume of service moving through and between the two cities . Two certificate amendments could rectify this situation: (1) overflight rights at the segment junction points in monopoly markets coupled with retent- ion of intermediate stop restrictions in competitive beyond markets; or (2) deletion of one of the points permitting the other to serve as a regional airport for both cities. Presuming the latter, the effect of deleting Tyler was computed. Tyler was selected for deletion becai of the location of the two airports. Tyler is west of Longview and Tyler's airport is six miles west of that city while Longview' s air- port is seven miles south of Longview and is more accessible to Tyler's traffic than would be the reverse situation. Interstate highway 20 would be utilized by Tyler passengers for most of their journey to the Longview airport, approximately 4 7 miles. The analysis of the effect of deleting Tyler indicates that a reduction of $383, 00C in economic need could have been achieved if this modification in operating authority had been effective in 1969. This result reflects conservative forecasting techniques where traffic retention is con- cerned. For example, it was assumed that only seven percent of the Tyler-Dallas on-line 0&D traffic would utilize Texas International's service at the Longview Airport, anticipating that the remaining 93 percent would make the 97 mile trip by car. 4 .4 Texas International - conclusion . The 1969 marginal routes (31) operated by Texas International served 15 marginal points and accounted for about thirty percent of the carrier's system-wide subsidy need. In terms of passengers handled, the marginal system was roughly one- half and one-third the size of Air West's and Frontier's respective marginal routes. The subsidy cost per passenger of $23.00 was 4% less than the $23.92 experienced by Air West and 8% above Frontier's $21.23. As for competition, commuter air carriers operated at three of the Texas International marginal points, and three were served by another certificated carrier. One point, Jackson, Mississippi, re- ceived service by both a commuter air carrier and two other certifi- cated carriers . (32) 5 .0 Section D, Allegheny 5 . 1 Marginal route results in relation to overall results and subsidy paid . Allegheny's marginal routes in 1969 showed the following economic results: TABLE 8 ALLEGHENY'S 1969 MARGINAL ROUTE OPERATING RESULTS AND SUBSIDY NEED Amount $5,509,000 Per Passenger $24 .22 15.97 6.70 $22.67 Per Revenue Dollar 3,632,000 1,524,000 $ .66 .28 $5,157,000 227,467 $ .94 Commercial Revenue Operating Loss Return and Tax Requirement Economic Need Number of Passengers The marginal route subsidy need of $5.2 million amounted to 39% of Allegheny's system-wide need of $13.3 million. By contrast with these need figures, Allegheny received $1.4 million in Federal subsidy, or $3.8 million less than the marginal route need and $11.9 million under the system-wide need. This system-wide economic need exceeded actual subsidy received by a greater margin than that of the local service carriers as a group. (See Table 2, Section 1.2.) 5.2 Analysis of Allegheny's Marginal Routes . The 1969 results shown in Table 8 reflect operations on six separate marginal routes as operated. 9/ The routes served 22 marginal points, comprising 9_/ The Allegheny marginal routes essentially comprise services at cities originating fewer than 40 Allegheny passengers per day (see Appendix Q); excluded, however, are operations to three cities generating less than 40 passengers per day (Cape May, New Jersey, Evansville, Indiana, and Reading, Pennsylvania) where Allegheny achieved an operating profit. (See Appendix R.) (33) 30% of the total number of system stations, and accounted for 23% of non-jet departures, and 5% of system passengers and passenger revenue. For every dollar of revenue generated by the marginal routes, $.94 of subsidy need resulted. The $5.2 million subsidy need shown in Table 8 is for the six marginal routes. If all of the marginal routes were deleted, the subsidy need decrease (at 1969 cost levels) would come to $6.0 million. The additional $.8 million reflects the on-line revenue net of expense that Allegheny would retain on its remaining system. TABLE 9 ALLEGHENY 1969 MARGINAL ROUTES ADDITIONAL DATA Number of Stations Total Passengers 10/(000) Subsidy Need (000,000) Subsidy Received (000,000) Percent Subsidy Received of Need Average Station Expense (Form 41) Combined Population (000) Aircraft Oper . Exp. Per Passenger Servicing Expense Per Passenger Ratio-Svcg. Expense to Acf t . Oper. Exp Non-Jet Departures RPM's in Scheduled Service (000) Passenger Revenue (000) Total Operating Expense (000) Marginal Routes 22 227 $5.2 27% $40,800 1,866 $ 25.60 $ 14.58 57% 37,659 46,950 $ 5,121 $ 9,141 Total Percent Marginal System Routes of System 73 30.0% 4,655 4.9 $ 13.3 39.0 $ 1.4 10% 161,904 1,320,991 $ 109,282 $ 118,708 23.0 3.6 4.7 7.7 10/ Allegheny submitted on-flight, rather than on-line, O&D traffic routings for 1969. To eliminate any inconsistency with the treatment of the other carriers, the on-flight total traffic reported for each Allgheny marginal point was distributed to the appropriate on-line markets on the basis of data for 1969 in Table 10 of the Board's Surveys (34) An analysis of each Allegheny marginal route is given in Appendix P showing stations served, segment operational and traffic data, financial results and related information. To the extent feasible, each route is an independent complex serving closely related marginal points and can be separately evaluated. The results arrived at should reasonably re- flect the actual costs of each specific operation standing alone. 11 / The population of cities served extends from 379,000 (Toledo, Ohio) down to 15,000 (Martinsburg , W. Va . ) . Traffic originated per station per day ranged from a high of 39.8 passengers at Atlantic City, N. J. (Appendix P"2), down to a low of 2.2 passengers at Kalamazoo, Michigan (Appendix P-3); the median for the marginal points was 9 passengers per day. The various routes also show a wide range of economic need per passenger and per dollar by comparison with the average for all six marginal routes. For example, the route serving Martinsburg, W. Va . (Appendix P- 4 ) , incurred a high subsidy need of $206.13 per passenger and $5.78 per dollar of commercial revenue. The operating loss ratio (operating loss as a percentage of commercial revenue) was 479% on this route. By contrast, the route serving Altoona, Franklin and Johnstown, Pa., Lima, Toledo, Youngstown and Zanesville, Ohio, and Wheeling, W. Va . (Appendix P-l), incurred an average need of $16.57 11/ In the combined results shown in Table 8, we have eliminated duplicate mileage, traffic, costs and revenues on inter-route operations . (35) per passenger and 63C per revenue dollar, and an operating loss ratio of 40%. For further details regarding each route consult the appropriate section in Appendix P. The 1969 marginal routes operated by Allgheny served 22 margi- nal points and accounted for about 39% of the carrier's system-wide subsidy need. Allegheny's marginal route results doubtless were influenced by the fact that commuter air carriers operated at 13 of the Allegheny marginal points, four of which were also served by other certificated air carriers. Two other marginal points, South Bend and Youngstown, were served by other certificated carriers but no air taxis. Of the 22 marginal points, only seven were served by Allegheny on an exclusive basis. In 1969, Allegheny's jet operations (primarily over routes awarded the carrier for strengthening purposes) achieved an operating profit of approximately $6.9 million. Further development of these major routes, the program for substitution of Allegheny commuter service where feasible, and the resumption of a more normal rate of industry traffic growth should enhance the carrier's overall position. 6.0 Part I - conclusion . The marginal route costing for the four local service carriers establishes a factual floor for the purpose of reaching conclusions applicable to the industry . 12/ Despite economic, geographic ,, and service differences between the various 1.2 / Detailed costs were developed for 38 marginal routes serving 126 marginal points (Appendices A, G, K, P). (36) routes, certain broad conclusions emerge: (1) subsidy paid the carriers, with one exception, failed to cover their marginal route economic needs; (2) each of the four carriers' overal 1 marginal route systems incurred an economic need per passenger in the $21-$24 range; and (3) non-marginal routes incurred substantial economic needs in some instances but the unit costs and operating margins were far better than those of the mar- ginal routes . There follows a brief summary of these principal findings: (1) With one exception--Air West--total subsidy paid the carriers fell short of meeting the economic need of their marginal routes : TABLE 10 SUBSIDY PAID VS. MARGINAL ROUTE NEEDS Marginal Route Total System Percent Payment Subsidy Need Subsidy Payment of Need Amount (in millions) Air West $7.3 $9.4 129% Al legheny 5.2 1.4 27 Frontier 11.0 6.7 61 Texas International 3.9 3.3 85 $27.4 $20.8 76% Since 1969, of course, the Board has introduced Class Rate V with substantially increased financial incentives for service to mar- ginal points; in addition, the trend toward eliminating the most (37) uneconomic services has continued. For example, between January 1, 1969 and June 30, 1971, ten Allegheny marginal points included in this analysis were either suspended or transferred to air taxi operators (see Appendix T for a listing of suspended points). 13 / (2) Although there is a host of differing operating situations and although the size of the carriers' marginal route systems varies greatly, a striking similarity appears in the over- all per-passenger subsidy cost for each carrier: 14 / TABLE 11 SUMMARY MARGINAL ROUTE COMPARISON Subsidy Subsidy Need Need Passengers Per Passenger Air West $7,291,000 305,000 $23.92 Allegheny 5,157,000 227,000 22.67 Frontier 11,001,000 518,000 21.23 Texas International 3,944,000 171,000 23.00 By historical standards, these are relatively high costs for Federal subsidization purposes; they also rule out any serious con- sideration of support from exclusively carrier-generated sources. (3) In the course of preparing this study it became apparent that other than marginal operations (as defined herein) were experiencing substantial economic need in terms of gross dol lars . 15/ On average, however these operations either achieved 13/ Since June 30, 1971, Allegheny was suspended at Altoona, Pa. (Order 71-8-4, August 3, 1971) and Portsmouth, Ohio was deleted from the carrier's certificate effective August 9, 1971 (Order 71-6-129). 14/ See Appendix U for a more detailed comparison of the four carriers. 15/ Frontier appeared to be the exception to this with an economic need on the balance of its system of only $2.8 million compared to $11.1 million for the other operations of Air West, $8.5 million for Texas International, and $8.1 million for Allegheny. Appendix A-l Page 1 of 3 MARGINAL ROUTE ANALYSIS A-l BAKERSFIELD, OXNARD, SAN LUIS OBISPO PALMDALE, INYOKERN, CALIFORNIA (Marginal points in black) TO 3W To S3C -IVtto Robins itfy©ice£fJ (n.©0 To JLA5 *.*& fcio^cuss ^oja<&. Be^ch* Notes (1) 1969 daily passengers originating at each marginal point shown after city name. (2) 1969 operations; F-27, 27A equipment. Number of average daily flights operated shown on each segment. Appendix A-l Page 2 of 3 MARGINAL ROUTE ANALYSIS A-l SERVICE TO BAKERSFIELD, OXNARD, SAN LUIS OBISPO, PALMDALE, INYOKERN, CALIFORNIA Flight Segment Data Bakersf ield -Fresno -Inyokern -Las Vegas -Los Angeles -San Francisco -Santa Barbara Oxnard 1969 Mi leage Trips 101 132 70 402 222 109 110 1,336 Trips 1969 Psgrs. Psgrs. Per Day Psgrs. Per Day Per Trip 0.4 1,114 3.1 8.4 1.1 3,183 8.7 7.9 0.3 1,268 3.5 11.6 3.7 13,789 37.8 10.3 240 83 133 105 0.4 0.3 1,331 970 Other 452 1.2 Source: Special Air West reports to the Board. 3.6 2.7 2,044 5.6 10.0 9.2 -Los Angeles 50 1 ,115 3.1 15,821 43.3 14.2 -Santa Barbara 40 899 2.5 10,798 29.6 12.0 -Santa Maria 87 84 0.2 1,119 3.1 13.3 Palmdale -Inyokern 66 917 2.5 9,348 25.6 10.2 -Las Vegas 195 666 1.8 3,183 8.7 4.8 -Long Beach 64 237 0.6 654 1.8 2.8 -Los Angeles 56 1 ,254 3.4 20,811 57.0 16.6 San Luis Obispo -San Francisco 166 1 ,161 3.2 16,931 46.4 14.6 -San Jose 137 747 2.0 10,502 28.8 14.1 -Santa Maria 55 1 ,816 5.0 24,683 67.6 13.6 4.5 Appendix A- 1 Page 3 of 3 MARGINAL ROUTE ANALYSIS A- 1 SERVICE TO BAKERSFIELD, OXNARD, SAN LUIS OBISPO, PALMDALE, INYOKERN, CALIFORNIA 1969 Per Per Dollar Financial Data Operations Passenger of Revenue Commercial revenue $ 970,000 $15.25 Aircraft operating expense 987,000 15.52 $1.02 Servicing 887,000 13.95 .91 Total operating expense 1,874,000 29.47 1.93 Operating loss 904,000 14.21 .93 Return and tax requirement 222,000 3.49 .23 Subsidy need $1,126,000 $17.70 $1.16 Net effect of suspension/deletion at the five cities 2/ On-system revenue retained, net of expense $ 20,000 Subsidy need decrease $1,146,000 Statistics (1969 operations) Aircraft departures 1_/ 8,611 Revenue miles 1/ 633,415 O&D passengers 63,600 Revenue passenger miles 10,145,000 Additional Data 1969 Station Population Certificated Closest Remaining Expense(F6rm 41) (1970) Service Since Certificated Point Bakersfield $75,197 68,000 1938 Bakersfield, UAL Oxnard/Ventura 47,225 127,000 1946 Santa Barbara, 27 miles San Luis Obispo/ Paso Robles 49,486 35,000 1946 Santa Maria, 44 miles Palmdale/Lancaster 62,257 35,000 3/ 1956 Los Angeles, 50 mi . Inyokern 39,242 1,000 3/ 1962 Bakersfielu, 93 mi les 1/ Excludes certain Mights operated primarily to service O&D traffic at other points . 2/ Assumes that a replacement carrier would operate Inyokern-Palmdale-Los Angeles (no provision made for support thereof by Air West); that existing air taxis would service San Luis Obispo and Oxnard ; and that United would handle Bakersfield trarf ic . 3/ Includes certain 1960 data. Appendix A-2 Page 1 of 3 MARGINAL ROUTE ANALYSIS A-2 SERVICE TO CHICO, LAKE TAHOE, MARYSVILLE, SANTA ROSA, AND STOCKTON CALIFORNIA (Marginal points in black) E4K£K.ft CRtSdcjoT cay ^•8 [IX **o on saw* Assft Cfr.fr) CH»co (.38.2.) pn JLA\ HMtysw .ue.(£ii) SAcRAMexrro \>1 *.Ajce 7rtrtoe.(m 3f\ti FMtfClSc© STpc»ct*^( 1*4. M) o.6" Q BAKefcSPie»-D N otes (1) 1969 daily passengers originating at each marginal point shown after city name. (2) 1969 operations: F-27 ,27A equipment. Number of average daily flights operated shown on each segment . (3) In December, 1970, Air West suspended operations at Marysville (Order 70-12-100) . (4) In November, 1970, Air West introduced a jet round trip operating Sacramento, Stockton, Las Vegas, Phoenix. Appendix A- 2 Page 2 of 3 MARGINAL ROUTE ANALYSIS A- 2 SERVICE TO CHICO, LAKE TAHOE, MARYSVILLE, SANTA ROSA, STOCKTON , CALIFORNIA Flight Segment Data 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Psgrs . Per Day Per Trip Chico-Crescent City 185 263 .7 2,698 7.4 10.3 -Eureka 144 283 .8 4,431 12.1 15.7 -Redding 53 1,164 3.2 18,275 50.1 15.7 -Sacramento 77 723 2.0 18,511 50.7 25.6 -San Francisco 152 1,297 3.6 25,068 68.7 19.3 Lake Tahoe-San Francisco 156 630 1.7 10,708 29.3 17.0 Marysville-Chico 51 249 .7 4,347 11.9 17.5 -Sacramento 28 790 2.2 2,502 6.9 3.2 -San Francisco 112 130 .4 388 1.1 3.0 -Santa Rosa 79 269 .7 3,931 10.8 14.6 Santa Rosa-Eureka 184 421 1.2 5,441 14.9 12.9 -Sacramento 62 694 1.9 4,842 13.3 7.0 -San Francisco 65 729 2.0 5,972 16.4 8.2 Stockton-Baker sf ield 202 187 .5 2,006 5.5 10.7 -Oakland 54 589 1.6 6,026 16.5 10.2 -San Francisco 65 628 1.7 6,194 17.0 9.9 Other - 107 .3 1,119 3.1 10.5 Source: Special Air West reports to the Board. Appendix A-2 Page 3 of 3 MARGINAL ROUTE ANALYSIS A-2 SERVICE TO CHICO, LAKE TAHOE, MARYSVILLE, SANTA ROSA, STOCKTON, CALIFORNIA 1969 Per Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need Operations Passenger $ 943,000 1,013,000 870,000 1,883,000 940,000 2 24,000 $15 ,86 17 14 .04 .63 31 .67 15 .81 3 .77 $1,164,000 $19.58 Net effect of suspension/deletion at the five cities 2/ On-system revenue retained, net of expense $ 62,000 Subsidy need decrease $1,226,000 Statistics (1969 operations) Aircraft departures 1/ 8,043 Revenue miles 1/ 689,000 O&D passengers 59,458 Revenue passenger miles 9,196,000 Additional Data Chico Lake Tahoe Marysvi 1 le Santa Rosa Stockton 1969 Station Certificated Expense Population Service (Form 41) (1970) Since $82,000 19,372 1947 43,000 1,200 3/ 1963 35,000 22,879 1947 41,000 48,464 1947 54,000 102,663 1946 Per Dollar of Revenue $1.07 .92 1.99 .99 .24 $1.23 Closest Remaining Certificated Point Redding, 72 miles Reno, 33 miles Sacramento, 43 miles San Francisco, 54 mil Stockton, UAL 1/ Excludes certain flights operated primarily to service O&D traffic at other points. 2/ Assumes that existing intra-state and air taxi carriers will handle traffic at Lake Tahoe and Santa Rosa^ United would service Stockton traffic; Marysville traffic would journey by surface to Sacramento*, and, that a replacement carrier would service Chico on San Francisco-(phico and Sacramento-Chico-Redding routings. No estimate for subsidization of the Chico replacement service by Air West has been included. (See additional explanation of methodology, Appendix E) . 3/ 1960 data. Appendix A-3 Page 1 of 3 MARGINAL ROUTE ANALYSIS A-3 SERVICE TO IDAHO FAILS, POCATELLO, IDAHO (Marginal points in black) IDAHO F*u-S 7*>CAT ttlwU> TWttf PAU*.S Notes (1) 1969 daily passengers originating at each marginal point shown after city name. (2) 1969 operations: F-27,27A equipment. Number of average daily flights operated shown on each segment. Appendix A-3 Page 2 of 3 MARGINAL ROUTE ANALYSIS A-3 SERVICE TO IDAHO FALLS, POCATELLO, IDAHO Flight Segment Data 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Psgrs . Per Day Per Trip Pocatel lo -Boise 189 1,343 3.7 28,927 79.3 21.5 -Idaho Falls 49 1,404 3.8 19,284 52.8 13.7 -Twin Falls 101 106 0.3 2,157 5.9 20.3 Idaho Falls -Boise 207 426 1.2 7,881 21.6 18.5 Other 56 0.2 467 1.3 8.3 Source: Special Air West reports to the Board. Appendix A-3 Page 3 of 3 MARGINAL ROUTE ANALYSIS A-3 SERVICE TO IDAHO FALLS, POCATELLO, IDAHO Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need $ 443,000 $10.41 Net effect of suspension/deletion at Idaho Falls and Pocatello 1/ 1969 Per Per Dollar Operations Pai ssenger of Revenue $ 915,000 $21.50 - 584,000 13.72 $ .64 628,000 14.76 .69 1,212,000 28.48 1.32 297,000 6.98 .32 146,000 3.43 .16 On-system revenue retained, net of expense Subsidy need decrease Statistics (1969 operations) Aircraft departures 3,335 Revenue miles 430,000 O&D passengers 42,560 Revenue passenger miles 12,922,000 $ 79,000 $522,000 Additional Data $ .48 Idaho Falls Pocatello 1969 Station Expense (Form 41) $64,574 49,125 Population (1970) 35,000 39,000 Certificated Closest Remaining Service Certificated Since Point 1938 Idaho Falls (WAL) 1938 Pocatello (WAL) 1_/ Assumes traffic would be routed to Salt Lake City on Western and to Boise on Trans Magic Airlines. Appendix A-4 Page 1 of 3 MARGINAL ROUTE ANALYSIS A-4 SERVICE TO CEDAR CITY, UTAH, KINGMAN, PAGE, PRESCOTT, ARIZONA (Marginal points in black) <•*$ Vg£a$ *»****>) ft.53) SAkX ^. AK£ cny 6ftAttO C&iay&M Notes (1) 1969 daily passengers originating at each marginal point shown after city name. (2) 1969 operations: F-27,27A equipment. Number of average daily flights operated shown on each segment . (3) Air West suspension at Kingman and Prescott approved in September, 1970 (Order 70-9-84) subject to provision of replacement service by Apache Airlines Appendix A-4 Page 2 of 3 MARGINAL ROUTE ANALYSIS A-4 SERVICE TO CEDAR CITY, UTAH--; KINGMAN, PAGE, PRESCOTT, ARIZONA Flight Segment Data 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Psgrs . Per Day Per Trip Cedar City -Las Vegas 161 1,030 2.8 10,427 28.6 10.1 -Page 107 685 1.9 6,341 17.4 9.3 -Salt Lake City 222 1,472 4.0 17,583 48.1 11.9 Kingman -Las Vegas 88 1,242 3.4 12,554 34.4 10.1 -Prescott 96 1,307 3.6 14,358 39.3 11.0 Page -Grand Canyon 78 661 1.8 5,746 15.7 8.7 Prescott -Grand Canyon 91 316 0.9 4,133 11.3 13.1 -Phoenix 87 1,719 4.7 21,224 58.1 12.3 Other 135 0.4 1,481 4.1 11.0 Source: Special Air West reports to the Board. Appendix A-4 Page 3 of 3 MARGINAL ROUTE ANALYSIS A-4 SERVICE TO CEDAR CITY, UTAH; KINGMAN, PAGE f PRESCOTT , ARIZONA Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need $1,460,000 $39.46 Net effect of suspension/deletion at the four cities 2/ 1969 Per Per Dollar Operations Passenger of Revenue $ 730,000 $19.73 - $1,192,000 32.22 $1.63 705,000 19.05 .97 1,897,000 51.27 2.60 1,167,000 31.54 1.60 293,000 7.92 .40 On-system revenue retained, net of expense Subsidy need decrease Statistics (1969 operations) Aircraft departures 1/ 8,082 Revenue miles 1/ 832,445 O&D passengers 37,000 Revenue passenger miles 8,304,000 Additional Data $ 45,000 $1,505,000 $2.00 Cedar City Kingman Page Prescott 1969 Station Expense Population (Form 41) (1970) $64,293 39,226 39,462 53,551 9,000 7,000 3,000 3/ 13,000 Certificated Service S i nc e_ 1946 1949 1959 1949 Closest Remaining Certificated Point Las Vegas, 181 miles Las Vegas, 99 miles Grand Canyon, 138 mi Phoenix, 98 miles 1/ Excludes certain flights operated primarily to service O&D traffic at other points . 2/ Assumes replacement carriers would operate Las Vegas-Kingman-Prescott- Phoenix (Apache Airlines); Salt Lake City-Cedar City-Page-Grand Canyon; Las Vegas- Cedar City. No provision included for support of such services by Air West. 3/ 1960 data. Appendix A-5 Page 1 of 3 MARGINAL ROUTE ANALYSIS A-5 SERVICE TO ALB ANY- CO RV ALLS, BEND-REDMOND, ROSEBURG, OREGON; CRESCENT CITY, CALIFORNIA (Marginal points in black) EUK6KA KJ*AMAT K FAtk-S Notes (1) 1969 daily passengers originating at each marginal point shown after city name. (2) 1969 operations: F-27,27A, Navajo equipment. Number of average daily flights operated shown on each segment. (3) In February, 1970, Air West replaced the Navajo operations at Roseburg with F-27 aircraft. Appendix A-5 Page 2 of 3 MARGINAL ROUTE ANALYSIS A-5 SERVICE TO ALBANY-CORVALLIS, BEND REDMOND, ROSEBURG, OREGON; CRESCENT CITY, CALIFORNIA Flight Segment Data 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Psgrs. Per Day Per Trip Albany-Corvallis -Crescent City 193 44 0.1 319 0.9 7.3 -Klamath Falls 179 361 1.0 6,010 16.5 16.6 -North Bend 89 848 2.3 14,451 39.6 17.0 -Portland 83 1,327 3.6 21,765 59.6 16.4 Bend -Eugene 103 315 0.9 554 1.5 1.8 -Klamath Falls 148 110 0.3 1,687 4.6 15.3 -Portland 118 1,320 3.6 5,553 15.2 4.2 -Roseburg 131 196 0.5 405 1.1 2.1 Crescent City -Eureka 56 593 1.6 8,814 24.1 14.9 -North Bend 113 430 1.2 6,147 16.8 14.3 -Portland 277 575 1.6 7,728 21.2 13.4 -San Francisco 304 445 1.2 8,258 22.6 18.6 Roseburg -Eugene 61 534 1.5 971 2.7 1.8 -Medford 131 196 0.5 405 1.1 2.1 -Portland 168 452 1.2 991 2.7 2.2 Other 501 1.4 7,630 20.9 15.2 Source: Special Air West reports to the Board Appendix A-5 Page 3 of 3 MARGINAL ROUTE ANALYSIS A-5 SERVICE TO ALBANY-CORVALIS, BEND-REDMOND, ROSEBURG, OREGON: CRESCENT CITY, CALIFORNIA Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need $ 966,000 Net effect of suspension/deletion at the four cities 2/ 1969 Per Per Dollar Operations Passenger of Revenue $ 727,000 $20.65 _ 963,000 27.36 $1.32 563,000 15.99 .78 1,526,000 43.35 2.10 799,000 22.70 1.10 167,000 4.74 .23 $27.44 On-system revenue retained, net of expense $ 205,000 Subsidy need decrease $1,171,000 Statistics (1969 operations) Aircraft departures 1_/ Revenue miles 1_/ O&D passengers Revenue passenger miles 7,441 899,000 35,200 9,835,000 Additional Data $1.33 Albany -Corva lis Bend-Redmond Crescent City Roseburg 1969 Station Certificated Closest Remaining Expense Population Service Certificated (Form 41) (1970) Since Point Eugene, 42 miles Eugene, 132 miles Eureka, 84 miles Eugene, 70 miles $45,983 53,000 1947 34,846 17,000 1946 44,554 3,000 1948 27,309 14,000 1951 1/ Excludes certain flights operated primarily to service O&D traffic to other points. 2/ Assumes that replacement carriers would operate Eureka-Crescent City- Medf ord-Roseburg-Eugene ; Portland-Bend (no provision included for support thereof by Air West) . Assumes Corvalis traffic would journey by surface to Eugene . Appendix A-6 Page 1 of 3 MARGINAL ROUTE ANALYSIS A-6 SERVICE TO GREAT FALLS, KALISPELL, MONTANA (Marginal points in black) 0W.77) SFbfcfttte &REAT FAWkS Notes (1) 1969 daily passengers originating at each marginal point shown after city name. (2) 1969 operations: F-27,27A equipment. Number of average daily flights operated shown on each segment. Appendix A-6 Page 2 of 3 MARGINAL ROUTE ANALYSIS A-6 SERVICE TO GREAT FALLS, KALISPELL, MONTANA Flight Segment Data 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Psgrs . Per Day Per Trip Kalispell -Spokane 159 807 2.2 11,671 32.0 14.5 -Great Falls 146 653 1.8 6,718 18.4 10.3 Other 26 0.1 199 0.5 7.7 Source: Special Air West reports to the Board. Appendix A-6 Page 3 of 3 MARGINAL ROUTE ANALYSIS A-6 SERVICE TO GREAT FALLS, KALISPELL, MONTANA Financial Data 1969 Per Per Dollar Operations Passenger of Revenue $340,000 $19.77 - 303,000 17.62 $ .89 251,000 14.59 .74 554,000 32.21 1.63 214,000 12.44 .63 77,000 4.48 .23 Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need $291,000 $16.92 $ .86 Net effect of suspension/deletion at Great Falls and Kalispell 1/ On-system revenue retained, net of expense $ 18,000 Subsidy need decrease $309,000 Statistics (1969 operations) Aircraft departures 1,486 Revenue miles 231,000 O&D passengers 17,200 Revenue passenger miles 4,213,000 Additional Data 1969 Station Certifi- Closest Remaining Expense Population cated Service Certificated (Form 41) (1970) Since Point Great Falls $19,900 59,000 1938 Great Falls (FL,NW,WA Kalispell 37,425 10,000 1947 Missoula, 123 miles 1_/ Assumes a replacement carrier would operate Spokane-Kalispell-Great Falls (no provision included for support thereof by Air West). Appendix A-7 Page 1 of 3 MARGINAL ROUTE ANALYSIS A-7 SERVICE TO EPHRATA, WENATCHEE, WASHINGTON (Marginal points in black) WCftJATettftfc .SpOKA^e yAKtMft Notes (1) 1969 daily passengers originating at each marginal point shown after city name. (2) 1969 operations: F-27,27A equipment. Number of average daily flights operated shown on each segment. Appendix A-7 Page 2 of 3 MARGINAL ROUTE ANALYSIS A-7 SERVICE TO EPHRATA, WENATCHEE, WASHINGTON Flight Segment Data 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Psgrs . Per Day Per Trip Wenatchee -Yakima 59 1,159 3.2 22,091 60.5 19.1 -Ephrata 32 1,235 3.4 14,262 39.1 11.5 Ephrata -Spokane 95 1,211 3.3 11,206 30.7 9.3 Other 114 0.3 1,238 3.4 10.9 Source: Special Air West reports to the Board Appendix A-7 Page 3 of 3 1969 Per Per Dollar Operations Passenger of Revenue $329,000 $16.05 - 337,000 19.07 $1.19 391,000 16.44 1.02 728,000 35.51 2.21 399,000 19.46 1.21 88,000 4.29 .27 MARGINAL ROUTE ANALYSIS A-7 SERVICE TO EPHRATA, WENATCHEE, WASHINGTON Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss , Return and tax requirement Subsidy need $487,000 $23.76 $1.48 Net effect of suspension/deletion at Ephrata and Wenatchee 1/ On-system revenue retained, net of expense $ 17,000 Subsidy need decrease $504,000 Statistics (1969 operations) Aircraft departures 3,739 Revenue miles 239,400 O&D passengers 20,500 Revenue passenger miles 3,748,000 Additional Data 1969 Station Certificated Closest Remaining Expense Population Service Certificated (Form 41) (1970) Since Point Ephrata/Moses Lake $46,165 15,000 1952 Yakima, 96 miles Wenatchee 41,575 17,000 1938 Yakima, 126 miles 1_/ Assumes that a replacement carrier would operate Seatt le-Wenatchee-Ephrata- Spokane (no provision included for support thereof by Air West). Appendix A-8 Page 1 of 3 MARGINAL ROUTE ANALYSIS A-8 SERVICE TO ASTORIA, HOQUIAM, OLYMPIA, TACOMA, WASHINGTON (Marginal points in black) 5EATTLe. AQE«P£EI>- Notes (1) 1969 daily passengers originating at each marginal point shown after city name. (2) 1969 operations: F-27,27A, Navajo equipment. Number of average daily flights operated shown on each segment. (3) In February, 1970, Air West replaced the Navajo operations at Olympia and Tacoma with F-27 equipment. Appendix A-8 Page 2 of 3 MARGINAL ROUTE ANALYSIS A-8 SERVICE TO ASTORIA, HOQUIAM, OLYMPIA, TACOMA, WASHINGTON Flight Segment Data 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Psgrs . Per Day Per Trip 55 1,091 3.0 7,182 19.7 6.6 49 230 0.6 1,264 3.5 5.5 86 790 2.2 5,523 15.1 7.0 68 91 0.2 355 1.0 3.9 Aberdeen -Astoria -Olympia -Seattle -Tacoma Astoria -Portland 72 1,123 3.1 7,506 20.6 6.7 Olympia -Portland -Seattle -Tacoma Tacoma -Portland -Seattle Other 140 0.4 1,000 2.7 7.1 Source: Special Air West reports to the Board. 96 887 2.4 6,133 16.8 6.9 47 202 0.6 1,033 2.8 5.1 26 983 2.7 6,087 16.7 6.2 116 316 0.9 3,360 9.2 10.6 22 1,289 3.5 8,793 24.1 6.8 Appendix A- 8 Page 3 oJ 3 MARGINAL ROUTE ANALYSIS A-8 SERVICE TO ASTORIA, HOQUIAM, OLYMPIA, TACOMA, WASHINGTON Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need Net effect of suspension/deletion at the four cities If On-system revenue retained, net of expense $ 33,000 1969 Per Per Dollar Operations Passenger of Revenue $255,000 $16.48 _ 681,000 44.02 $2.67 311,000 20.10 1.22 992,000 64.12 3.89 737,000 47.64 2.89 146,000 9.44 .57 $883,000 $57.08 $3.46 Subsidy need decrease Statistics (1969 operations) Aircraft departures Revenue miles O&D passengers Revenue passenger miles Additional Data $916,000 7,052 417,704 15,470 2,750,000 Astoria/Seaside Aberdeen/Hoquiam Olympia Tacoma 1969 Station Certificated Expense Population Service (Form 41) (1970) Since $30,640 15,000 1946 28,476 29,000 1946 32,843 22,000 1946 54,149 151,000 1963 Certificated Point Portland, 89 miles Seattle, 112 miles Seattle, 64 miles Seattle, 36 miles 1_/ Assumes that replacement services would operate Seattle-Hoquiam-Astoria- Portland, and Seatt le-Olympia-Portland (no provision has been included for support thereof by Air West). Assumes that Tacoma traffic would journey by surface to Seattle. Appendix A-9 Page 1 of 3 MARGINAL ROUTE ANALYSIS A-9 SERVICE TO BURLEY, SUN VALLEY, IDAHO (Marginal points in black) so& •AuLfty (|o.3g) fcoft»-ey (3.^3) JAA.T IlAKR C IT/ notes (1) 1969 daily passengers originating at each marginal point shown after city name. (2) 1969 operations: Navajo equipment. Number of average daily flights operated shown on each segment. (3) Air West suspension at Burley and Sun Valley approved in December, 1969 (Order 69-12-94) subject to provision of service by air taxis. Flight Segment Data Appendix A-9 Page 2 of 3 MARGINAL ROUTE ANALYSIS A-9 BURLEY, SUN VALLEY, IDAHO 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Psgrs . Per Day Per Trip Sun Valley -Boise -Burley -Salt Lake City Burley •Twin Falls 96 72 224 37 1,497 4.1 565 1.5 1,306 3.6 884 2.4 3,241 8.9 628 1.7 4,191 11.5 722 2,0 2.2 1.1 3.2 0.8 Other 85 0.2 216 0.6 2.5 Source: Special Air West reports to the Board Appendix A-9 Page 3 of 3 1969 Per Per Dollar Operations Passenger of Revenue $183,000 $21.53 — 367,000 43.18 $2.01 120,000 14.12 .66 487,000 57.29 2.66 304,000 35.76 1.66 16,000 1.88 .09 MARGINAL ROUTE ANALYSIS A-9 SERVICE TO BURLEY, SUN VALLEY, IDAHO Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need $320,000 $37.65 $1.75 Net effect of suspension/deletion at Burley and Sun Valley 1/ On-system revenue retained, net of expense $ 13,000 Subsidy need decrease $333,000 Statistics (1969 operations) Aircraft departures 4,338 Revenue miles 522,000 O&D passengers 8,500 Revenue passenger miles 2,089,000 Additional Data ley/ 1969 Station Expense (Form 41) $26,664 29,611 Population (1970) Certificated Service Since Burley/Rupert Sun Valley/Hai Ketchum 13,000 3,000 1946 1960 Closest Remaining Certificated Point Twin Falls, 45 mi. Twin Falls, 82 mi. 1/ Assumes that existing air taxis would service the traffic to Boise, Salt Lake City and Twin Falls. Appendix A- 10 Page 1 of 3 MARGINAL ROUTE ANALYSIS A- 10 SERVICE TO BLYTHE, CALIFORNIA (Marginal points in black) ?AU1 SPMtffr* ?H©BM\K Notes (1) 1969 daily passengers originating at each marginal point shown after city name. (2) 1969 operations: F-27, 27A equipment. Number of average daily flights operated shown on each segment. Appendix A-10 Page 2 of 3 MARGINAL ROUTE ANALYSIS A-10 SERVICE TO BLYTHE, CALIFORNIA Flight Segment Data 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Psgrs. Per Day Per Trip Blythe -Palm Springs 105 1,229 3.4 16,952 46.4 13.8 -Phoenix 155 1,240 3.4 15,150 41.5 12.2 Other 8 0.02 80 0.2 10.0 Source: Special Air West reports to the Board MARGINAL ROUTE ANALYSIS A- 10 SERVICE TO ELYTHE, CALIFORNIA Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need $ 55,000 Net effect of suspension/deletion at Blythe 2/ Or.- system revenue retained, net of expense $ 2,000 Subsidy need decrease $57,000 Statistics (1969 operations) Aircraft departures 1_/ Revenue miles 1_/ O&D passengers Revenue passenger miles 1,246 3,047 5,749 1,104,000 Additional Data Appendix A- 10 Page 3 of 3 1969 Per Per Dollar Operations Passenger of Revenue $ 96,000 $16.70 47,000 8.18 $ .49 98,000 17.05 1.02 145,000 25.22 1.51 49,000 8.52 .51 6,000 1.04 .06 $ 9.57 $ .57 1969 Station Certificated Closest Remaining Expense Population Service Certificated (Form 41) (1970) Since Point Blythe $44,073 7,000 1952 Yuma, 108 miles 1_/ Excludes certain flights operated primarily to service O&D traffic at other points. 2/ Assumes extension of existing Los Angeles-Palm Springs air taxi route to Blythe and Phoenix (no provision included for support thereof by Air West) . Appendix A- 11 Page 1 of 3 MARGINAL ROUTE ANALYSIS A- 11 SERVICE TO BAKER AND ONTARIO, OREGON (Marginal points in black) t»y (0. g> Notes (1) 1969 daily passengers originating at each marginal point shown after city name. (2) 1969 operations: Navajo equipment. Number of average daily flights operated shown on each segment. (3) In February, 1970, Air West replaced the Navajo operations at Baker and Ontario with F-27 aircraft. Appendix A-ll Page 2 of 3 MARGINAL ROUTE ANALYSIS A-ll SERVICE TO BAKER AND ONTARIO, OREGON Flight Segment "Data Baker -Ontario -Portland Ontario-Boise Other 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Psgrs . Per Day Per Trip 69 592 1.6 767 2.1 1.3 239 618 1.7 1,600 4.4 2.6 51 555 1.5 309 .8 .6 25 .1 32 .1 1.3 Source: Special Air West reports to the Board. Appendix A- 11 Page 3 of 3 1969 Per Per Dollar Operations Passenger of Revenue $ 43,000 $22.04 80.47 _ 157,000 $3.65 34,000 17.43 .79 191,000 97.90 4.44 148,000 75.86 3.44 7,000 3.59 .16 MARGINAL ROUTE ANALYSIS A- 11 SERVICE TO BAKER, ONTARIO, OREGON Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need $155,000 $79.45 $3.60 Net effect of suspension/deletion at Saker and Ontario 17 On-system revenue retained, net of expense $ 13,000 Subsidy need decrease $168,000 Statistics (1969 operations) Aircraft departures 1,790 Revenue miles 222,261 O&D passengers 1,951 Revenue passenger miles 512,000 Additional Data 1969 Station Expense (Form 41) Population (1970) Certifi- cated Service Since : Closest Remaining Certificated Point $26,000 30,000 9,235 10,930 1946 1946 Pendleton, 95 mile Boise, 56 mi les Baker Ontario, Ore./ Payette, Idaho 1/ Assumes that a replacement air taxi service would operate Walla Walla- Baker-Ontario-Boise, but does not include any estimate for subsidization thereof by Air West, (See additional explanation of methodology, Appendix E) . Appendix B Page_X-of_ !..___ CITIES INCLUDED IN AIR WEST'S 1969 MARGINAL ROUTES Aver age Daily Daily Station Originating Passeng< 2rs Departures Equipment Aberdeen/Hoquiam, Wash. 7.02 3.0 F-27/27A Albany/Corvallis, Oreg. 17.72 4.0 F-27/27A Astoria/Seaside, Oreg. 7.31 3.0 F-27/27A Baker, Oreg. 1.58 L.6 PA- 31 Bakersfield, Calif. 18.53 3.3 F-27/27A Bend/ Redmond, Oreg. 7.08 2.7 F-27/27A, PA-31 Blythe, Calif. 7.80 3.3 F-27/27A Bur ley/Rupert, Idaho 1/ 1.55 2.0 PA-31 Cedar City, Utah 25.23 4.4 F-27/27A Chico, Calif. 38.34 5.5 F-27/27A Crescent City, Calif. 15.73 3.3 F-27/27A Ephrata/Moses Lake, Wash. 8.60 3.5 F-27/27A Great Falls, Mont. 9.00 .9 F-27/27A Idaho Falls, Idaho 29.88 2.7 F-27/27A Inyokern, Calif. 17.01 1.8 F-27/27A Kalispell, Mont. 22.77 1.9 F-27/27A Kingman, Ariz. 2/ 9.53 3.5 F-27/27A Lake Tahoe, Calif. 14.03 .8 F-27A Marysville/Yuba City, Calif. 3/ 3.10 1.9 F-27/27A Olympia, Wash. 3.32 2.9 F-27/27A Ontario, Oreg ./Payette, Idaho .80 1.3 PA-31 Oxnard/Ventura, Calif. 7.41 2.9 F-27/27A Page, Ariz. 4.62 1.9 F-27A Palmdale/Lancaster , Calif. 17.28 4.0 F-27/27A Pocatello, Idaho 28.76 4.1 F-27/27A Prescott, Ariz. 2/ 11.74 4.6 F-27/27A Roscburg, Oreg. 4.59 2.3 PA-31 San Luis Obispo/Paso Robles, Calif. 24.59 5.2 F-27/27A Santa Rosa, Calif. 6.55 2.9 F-27/27A Stockton, Calif. 14.38 2.0 F-27/27A Sun Valley/Hailey/ Ketchum, Idaho 1/ 10.38 4.5 PA-31 Tacoma, Wash. 2.70 3.0 F-27/27A, PA-31 Wenatchee, Wash. 19.12 3.5 F-27/27A 1_/ Service suspended 12-23-69 by Air West and transferred to air taxi operators . 2/ Air West suspension approved 9-16-70. Apache Airlines providing replacement service. 3/ Air West suspension approved 12-17-70. Source: Appendix A; Form 41' s. Appendix C Page 1 of 1 CITIES ORIGINATING FEWER THAN 40 DAILY PASSENGERS B UT NOT INCLUDED IN AIR WEST'S MARGINAL ROUTES Station Calgary, Canada La Paz, Mexico Long Beach, Calif. Mazatlan, Mexico North Bend/Coos Bay 4/ Key 1/ 3/ 1/ 3/ 2/ 1/ 3/ Oakland, Calif. 2/ Puerto Vallarta, Mexico 1/ 3/ Riverside, Calif. 2/ Daily Originating Passengers 27.1 5.9 5.0 6.2 36.5 7.0 4.0 7.7 Daily Departures Equipment 1.1 DC-9-10/30, F-27 1.0 DC-9-10/30 .9 F-27/27A 1.0 DC-9-10/30 4.2 F-27/27A 3.4 F-27/27A .5 DC-9-10/30 2.5 F-27A Key to exclusion from marginal system : 1_/ Jet operations. 2/ Satellite airport (Riverside hyphenated with Ontario). 3/ Foreign city. 4/ Services to city produced an operating profit. Appendix D Page 1 of 1 NON-HUB CITIES ORIGINATING 40 OR MORE AIR WEST PASSENGERS PER DAY El Centro, Calif. Eureka/Arcata, Calif. Grand Canyon, Ariz. Indio/Palm Springs, Calif. Klamath Falls, Ore. Lewiston, Idaho/Clarkston, Wash Pasco/Kennewick /Richland, Wash. Pullman, Wash ./Moscow, Idaho Red Bluff/Redding, Calif. Santa Ana/Laguna Beach, Calif. Santa Maria, Calif. Twin Falls, Idaho Walla Walla, Wash. Yuma, Ariz. Daily Originating Dai iy Passengers Dec artures Equipment 59.46 7.7 F-27/27A 139.51 6.9 F-27/27A,DC-9-10/30 74.34 5.6 F-27A 73.54 6.9 F-27/27A 44.78 5.2 F-27/27A 61.06 8.7 F-27/27A,DC-9-30 131.75 14.2 F-27/27A,DC-9-10/30 47.86 7.2 F-27/27A 55.36 5.2 F-27/27A 229.03 8.0 F-27/27A,DC-9-10/30 77.13 5.4 F-27/27A 55.58 7.3 F-27A,DC-9-10/30 46.62 8.4 F-27/27A 82.19 9.3 F-27/27A Appendix E Page 1 of 3 DESCRIPTION OF COSTING METHODOLOGY Developing the operating and subsidy»need results of a marginal route involved a determination of costs incurred (or saved, assuming termination of service to the various points) vs. the commercial revenues generated Cor lost). As a first step, we obtained on-line O&D passenger traffic by market for 1969 for each of the 33 marginal route cities shown in Appendices A and B, using special reports furnished by Air West, We priced this traffic on the basis of fares in effect December 1, 1969, summed the results by city, and applied an appropriate dilution factor for discount fares. Duplicated traffic was eliminated where necessary to arrive at totals for each marginal route and for all eleven routes. We developed cargo ton miles and revenues for each station on the basis of tonnages reported in Form 41, All costs— »aircraft operating, servicing, and return and tax requirements—were based on Air West experience per Local Service Air 1/ Carriers' Unit Costs (Subpart K) for the year ended September 30, 1969 ,~ For simplicity and realism in costing, and to avoid excessive cost allocations in view of the large number of cities involved B we costed by route, rather than by each individual city. Routes were set up in accordance with actual 1969 flight Scheduling rather than on the basis 1_/ In a few instances, special material furnished by Air West was used where the requisite data to apply Subpart K were not available. Appendix E Page 2 of 3 of descriptions in the carrier's certificates. However, we consolidated into single routes certain spoke operations in both the Los Angeles and San Francisco regions (see Appendices A-l and A«2). If Air West operated a flight only for the specific purpose of serving a marginal route(as defined in section 2.3 of the accompanying memorandum), the flight's costs were fully charged to the route. Where a flight served a marginal point as an adjunct to services which would have to be provided in any event, only the difference between direct costs of the flight as operated and as it. would operate with the city deleted was charged to the marginal route (circuity costing). For example, we determined that certain flights serving Santa Rosa on a Eureka-Santa Rosa»Sacramento routing were carrying a preponderance of through traffic (traffic not originating or terminating at Santa Rosa), and that the through traffic could not reasonably be accommodated on other existing routings between Eureka and Sacramento in the event that operations to Santa Rosa were terminated. In this circumstance we charged the marginal route serving Santa Rosa with only the difference between the direct costs of the Eureka-Santa Rosa»Sacramento operation (involving two departures and 251 miles per trip) and a non-stop Eureka«°Sacramento operation (involving one departure and 206 miles per trip). However, in certain instances where the nonstop mileage under this method produced a 25% or lower load factor on the basis of the through traffic, the full direct costs of the flight as actually operated were charged to the marginal route. After developing the revenues and costs involved in serving the eleven Appendix E Page 3 of 3 marginal routes in 1969, we estimated the traffic and revenue that Air West would retain if the routes had been deleted. To accomplish this we made an assumption for each city served as to what Air West traffic would be carried by a replacement service and to what Air West connecting points. (For simplicity it was assumed that there would be no stimulation or de- stimulation of this traffic regardless of number of schedules or type of equipment offered by the replacement carrier.) We estimated Air West's participation in the remaining on-line portion of this traffic on the basis 2/ of Air West's 1968 market share in each appropriate retained on-line routing. - Pricing the revenue as described above and deducting the associated traffic servicing costs yielded a net retained revenue figure for each marginal route. Adding this figure to the subsidy need of the route as operated produced the theoretical subsidy need decrease (from the carrier's standpoint) of eliminating the marginal route. These figures are shown for each route in Appendix A. 2/ These were the latest available Survey data for this purpose at the time of preparation of the report. Appendix F Not used Appendix G-l Page 1 of 3 MARGINAL ROUTE ANALYSIS G-l BARTLESVILLE, DUNCAN, ENID, MUSKOGEE, PONCA CITY, STILLWATER, TULS A, OKLAHOMA; IND EP ENDENCE, LIBERAL, WTCMTTA, KANSAS > DEN NDEPENPENCE. - COFFEXVILLE - PARSONS C»J.7e> BATTLES VI L L£ 7) TULSA (5LX3) LB- fa ye tteviueV^ MUSK06EE CS.IO L3 o FORT SMITH AWTOtf - FT. SILL OKLAHOMA CITX DUWCAhJ (L.S&) TO DAL, Motes (1) 1969 daily passengers originating at each marginal point shown after city name. (2) Number of average daily flights operated shown on each segment. (3) Temporary suspension at Muskogee authorized in November, 1970 (Order 70-11-25) subject to provision of certain replacement service by Sedalia-Marshal 1-Boonvi 1 le Stage Lines, Inc. Appendix G-l Page 2A of 3 MARGINAL ROUTE ANALYSIS G-l SERVICE TO BARTLESV1LLE, DUNCAN, ENID, MUSKOGEE, PONCA CITY, STILLWATER, TULSA, OKLAHOMA; INDEPENDENCE, LIBERAL, WICHITA, KANSAS 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Psgrs. Per Dav — — - — m —f.. Per Trip 48 679 1.9 8,413 23.0 12.4 60 598 1.6 4,838 13.3 8.1 161 491 1.3 3,643 10.0 7.4 Flight Segment r>_ L a~ Bartlesvil le - Independence - Ponca City - Topeka - Tulsa 40 985 2.7 12,982 35.6 13.2 Duncan - Dallas 129 2 ^ - Lawton 26 912 - Okla. City 67 913 Enid - Okla. City 68 748 - Ponca City 45 1,100 - Stillwater 42 532 - Wichita 90 190 Independence - Kansas City 133 1,182 - Wichita 108 427 .7 5,730 2.5 14,929 2.5 14,663 2.0 12,200 3.0 13,508 1.5 7,682 .5 2,911 3.2 19,917 1.2 5,824 15.7 22.6 40.9 16.4 40.2 16.1 33.4 16.3 37.0 12.3 21.0 14.4 8.0 15.3 54.6 16.8 16.0 13.6 1_/ Excluding irregular operations. Source; Special Frontier reports to the Board. Appendix G-l Page 2B of 3 MARGINAL ROUTE ANALYSIS G-l (Con't) SERVICE TO BARTLESV1LLE, DUNCAN, ENID, MUSKOGEE, PONCA CITY, STILLWATER, TULSA, OKLAHOMA; INDEPENDENCE, LIBERAL, WICHITA, KANSAS Flight Segment D a 1 "^ 1/ 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Psgrs . Per Day Per Trip Liberal -Amar i 1 lo 132 74 .2 164 .4 2.2 -Denver 284 1,364 3.7 32,886 90.0 24.1 -Okla. City 220 1,355 3.7 30,880 84.6 22.8 -Wichita 199 562 1.5 5,614 15.4 10.0 Muskogee -Ft. Smith 59 684 1.9 14,925 40.9 21.8 -Tul sa 47 685 1.9 15,091 41.3 22.0 Pone a City -Stillwater 39 188 .5 2,000 5.5 10.6 -Wichita 66 679 1.9 7,367 20.2 10.8 Sti 1 lwater -Dallas 228 89 .2 1,558 4.3 17.5 -Okla. City 60 979 2.7 13,053 35.8 13.3 -Tulsa 67 331 .9 4,051 11.1 12.2 Tulsa -Fayettevi He 98 655 1.8 10,519 28.8 16.1 -Okla. City 111 1,720 4.7 30,847 84.5 17.9 Wichita -Hutchinson 37 80 .2 603 1.7 7.5 -Topeka 139 870 2.4 15,208 41.7 17.5 1_/ Excluding irregular operations. Source: Special Frontier reports to the Board. MARGINAL ROUTE ANALYSIS G-l Appendix G- 1 Page 3 of 3 BARTLESVILLE, DUNCAN, ENID, MUSKOGEE, PONCA CITY, STILLWATER, TULSA, OKLAHOMA; INDEPENDENCE, LIBERAL, WICHITA, KANSAS Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need $2,717,000 Net effect of suspension/deletion at the ten cities 1_/ 1969 Per Per Dollar Operations Passenger of Revenue $2,531,000 $26.90 $ . 2,878,000 30.58 1.13 1,737,000 18.46 .69 4,615,000 49.04 1.82 2,084,000 22.14 .82 633,000 6.73 .25 $28.87 $1.07 On-system revenue retained, net of expense Subsidy need decrease Statistics (1969 operations) Aircraft departures 19,671 Re-venue miles 2,122,742 O&D passengers 94,105 Revenue passenger miles 24,726,000 Additional Data $ 252,000 $ 2,969,000 1969 Station Population Certificated ExpenseCForm 41) $ 43,000 (1970) Service Since Bar t lesvi 1 le 29,000 1945 Duncan 29,000 19,000 1953 Enid 35,000 44,000 1946 Independence- Coffeyville-P arsons 39,000 38,000 1961 Liberal -Guy man 83,000 21,000 1956 Muskogee 15,000 36,000 1944 Ponca City 37,000 25,000 1938 Stil lwater 29,000 30,000 1953 Tu 1 sa 126,000 328,000 1938 Wichita 95,000 274,000 1938 Closest Remaining Certificated Point Tulsa 49 miles Lawton 34 miles Okla.City 84 miles Joplin 78 miles Amarillo 124 miles Tulsa 56 miles Okla.City 96 miles Okla.City 56 miles Tulsa 6 carrier Wichita 3 carrier 1/ Assumes replacement carrier between Wichita and Oklahoma City servicing these points plus a Denver-Liberal-Oklahoma City replacement service (no pro- vision made for support thereof by Frontier). Appendix G-2 Page 1 of 3 MARGINAL ROUTE ANALYSIS G-2 SERVICE TO COLUMBUS, HASTINGS, KEARNEY, MCCOOK, NORTH PLATTE, NEBRASKA; ST. JOSEPH, MISSOJRI Marginal points in black Notes (1) ci tv (2)" 1969 daily passengers originating at each marginal poi.t show., after name . Number of average daily flights operated shown on each segment. Appendix G-2 Page 2 of 3 MARGINAL ROUTE ANALYSIS G-2 SERVICE TO COLUMBUS, HASTINGS, KEARNEY, MCCOOK, NORTH PLATTE, NEBRASKA; ST. JOSEPH, MISSOURI Flight Segment Data 1/ 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Psgrs. Per Dav Per Trip Columbus - Grand Is land 61 644 1.8 13,994 38.3 21.7 - Lincoln 51 59 7 1.6 3,964 10.9 6.6 - Omaha 76 1,261 3.5 16,762 45.9 13.3 Hastings - Kearney 31 1,269 3.5 24,872 68.1 19.6 - Lincoln 91 1,195 3.3 22,358 61.3 18.7 - Omaha 143 82 .2 2,003 5.5 24.4 Kearney - McCook 91 1,257 3.4 26,058 71.4 20.7 McCook - Denver 230 1,008 2.8 20,825 57.1 20.7 - Sidney 140 260 .7 6,518 17.9 25.1 North Platte - Denver 240 663 1.8 15,680 43.0 23.6 - Grand Is land 125 1,943 5.3 48,342 132.4 24.9 - Scotts bl uff 159 1,240 3.4 32,104 88.0 25.9 St. Joseph - Kansas C ity 48 1,332 3.6 26,240 71.9 19.7 - Lincoln 123 259 .7 4,745 13.0 18.3 - Omaha 118 1,064 2.9 21,376 58.6 20.1 1_/ Excluding irregular operations. Source: Special Frontier reports to the Board. Appendix G-2 Page 3 of 3 MARGINAL ROUTE ANALYSIS G-2 SERVICE TO COLUMBUS, HASTINGS, KEARNEY, MCCOOK, NORTH PLATTE, NEBRASKA; ST. JOSEPH, MISSOURI 1969 Per Per Dollar inancial Data Operations Passenger of Revenue ommercial revenue $2,039,000 $28.32 $ - ircraft operating expense 1,953,000 27.12 .96 $28 .32 27 18 .12 .06 45 .18 16 .86 5 .89 ervicing 1,300,000 18.06 .64 Total operating expense 3,253,000 45.18 1 .60 Operating loss 1,214,000 16.86 .60 cturn and tax requirement 424,000 5.89 .20 Subsidy need $1,638,000 $22.75 $ .80 |t effect of suspension/deletion at the six cities 2/ n-system revenue retained, net of expense $ 108,000 ubsidy need decrease $1,746,000 tatistics (1969 operations ) ircraft departures 1/ 13,916 evenue miles 1/ 1,392,167 >&D passengers 72,004 evenue passenger miles 21,712,000 dditional Data 1969 Station Population Certificated Closest Remaining ExpenseCForm 41) ( 1970) Service Since Certificated Point olumbus $37,000 15,000 1948 Lincoln 77 miles astings 49,000 23,000 1959 Grand Island 26 mi. earney 47,000 19,000 1959 Grand Island 42 mi. IcCook" 44,000 8,000 1959 Grand Island 146 mi . orth Platte 78,000 19,000 1938 Grand Island 138 mi. t. Joseph 34,000 72,000 1938 Kansas City 46 mi . / Excludes certain flights operated primarily to service O&D traffic at other 'Oints . J Assumes that a replacement carrier would service these marginal points except St. Joseph) operating between Denver and Omaha (no provision made or support thereof by Frontier). Appendix G-3 Page 1 of 3 MARGINAL ROUTE ANALYSIS G-3 SERVICE TO CORTEZ, DURANGO, COLORADO; FLAGSTAFF, WINSLOW, ARIZONA; GALLUP, NEW MEXICO Marginal points in black DENVER MOAB "is «* CORTEZ (11.99) l.ff DURANGO (39.56) PLAGSTAFF (A3.73) FARMINGTOW WIMSLOW (8.23) OS PHOENIX GALLUP (! ALBUQUERQUE Notes (1) 1969 daily passengers originating at each marginal point shown after city name . (2) Number of average daily flights operated shown on each segment. Appendix G-3 Pago 2 of 3 MARGINAL ROUTE ANALYSIS G-3 SERVICE TO CORTEZ, DURANGO, COLORADO; FLAGSTAFF, WINSLOW, ARIZONA; GALLUP, NEW MEXICO Flight Segment Data 1 ' 1969 Trips 1969 Psgrs. Psgrs. Miieage Trips Per Day Psgrs. Per Day Per Trip Cortez - Durango 51 564 1.5 10,067 27.6 17.8 - Farmington 45 1,249 3.4 15,621 42.8 12.5 - Moab 93 564 1.5 7,101 19.5 12.6 Durango - Alamosa 105 626 1.7 11,568 31.7 18.5 - Denver 238 1,363 3.7 41,871 114.7 30.7 - Farmington 39 1,481 4.1 26,406 72.3 17.8 Flagstaff - Phoenix 119 1,271 3.5 27,454 75.2 21.6 - Winslow 56 1,032 2.8 19,433 53.2 18.8 Gal lup - Albuquerque 126 642 1.8 14,220 39.0 22.2 - Farmington 91 1,358 3.7 22,889 62.7 16.9 - Winslow ' 114 661 1.8 10,100 27.7 15.3 Winslow - Farmington 183 69 3 1.9 12,80,7 35.1 18.5 - Phoenix 133 2 \ 0.9 346 0.9 16.5 1_/ Excluding irregular operations. Source: Special Frontier reports to the Board. .. Appendix G-3 Page 3 of 3 MARGINAL ROUTE ANALYSIS G-3 SERVICE TO CORTEZ, DURANGO, COLORADO; FLAGSTAFF, WINSLOW, ARIZONA; GALLUP, NEW MEXICO Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidv need 1969 Operations ?1 ,881 ,000 1 1 ,356 ,073 ,000 ,000 2 ,429 ,000 548 ,000 287 ,000 $ 835.,000 Per Passenger $26.57 19.15 15.16 34.31 7.74 4.06 $11.80 Not effect of suspension/deletion at the five cities 2/ On-system revenue retained, net of expense $ 830,000 Subsidy need decrease $1,665,000 Statistics (1969 operations) Aircraft departures \_l 10,658 Revenue miles 1/ 899,013 O&D passengers 70,789 Revenue passenger miles 19,556,000 Additional Data Per Dollar of Revenue $ .72 .57 1.29 .29 .15 $ .44 1969 Station Population Certificated Closest Remaining ExpenseCForm 41 ) ( 1970) Service Sin ce Certificated Point Farmington 72 miles Farmington 50 miles Grand Canyon 65 miles Farmington 122 miles Grand Canyon 100 miles y Excludes certain flights operated primarily to service O&D traffic at other points . 2_/ Assumes replacement service to Flagstaff, Winslow, and Gallup between Phoenix and Albuquerque and Cortez/Durango-Farmington (no provision made for subsidization thereof by Frontier). Cor tez $40,000 6,000 1946 Durango 77,000 10,000 1946 Flagstaff 60,000 26,000 1948 Gal lup 41,000 14,000 1946 Winslow 38,000 8,000 1938 Appendix G-4 Page 1 of 3 MARGINAL ROUTE ANALYSIS G-4 SERVICE TO CODY, LARAMIE, RIVERTON, WORLAND, WYOMING Marginal points in black BILLINGS LOVELL- POWELL-COD/ (S.70) WORLAND (to. Notes (1) 1969 daily passengers originating at each marginal point shown after city name . (2) Number of average daily flights operated shown on each segment. Appendix G-8 Page 2 of 3 MARGINAL ROUTE ANALYSIS G-8 SERVICE TO ALAMOSA. COLORADO; SANTA FE. NKW MEXTCO Fl ight Segment Pat; 1/ 1969 Trips 1969 Psgrs. Psgrs. Mileage Irips Per Day Psgrs . Per Day Per Trip Alamosa - Albuquerque - Durango - Pueblo 170 649 1.8 6,055 16.6 9.3 105 626 1,7 11 3 568 31.7 18.5 96 1,275 3.5 25,016 68.5 19.6 Santa Fe - Albuquerque - Colo. Springs - Denver 50 1,380 235 344 295 348 3.8 1.0 20,852 57.1 15.1 7,344 20.1 21.3 8,818 24.2 25.3 1_/ Excluding irregular operations. Source: Special Frontier reports to the Board. Appendix G-8 Page 3 of 3 MARGINAL ROUTE ANALYSIS G-8 ALAMOSA, COLORADO; SANTA FE, NEW MEXICO 1969 Per Per Dollar Financial Data Operations Passenger of Revenue Commercial revenue $ 803,000 $26.80 $ Aircraft operating expense 569,000 18.99 .71 Servicing 432,000 14.42 .54 Total operating expense 1,001,000 33.41 1.25 Operating loss 198,000 6.61 .25 Return and tax requirement 123, 000 4.11 . 15 Subsidy need $ 321,000 $10.72 $ .40 Net effect of suspension/deletion at the two cities 2/ On-system revenue retained, net of expense $106,000 Subsidy need decrease $427,000 Statistics (1969 operations) Aircraft departures XJ 4,107 Revenue miles 1/ 401,763 O&D passengers 29,958 Revenue passenger miles 7,451,000 Additional Data 1969 Station Population Certificated Closest Remaining Expense (Form 41) ( 1970) Service Since Certificated Point Alamosa $45,000 7,000 1950 Pueblo 120 miles Santa Fe 66,000 39,000 1938 Santa Fe , TXI J_/ Excludes certain flights operated primarily to service O&D traffic at other points. 2/ Assumes a replacement carrier would service these points operating between Denver and Albuquerque. Appendix G-9 Page 1 of 3 MARGINAL ROUTE ANALYSIS G-9 SERVICE TO HAYDEN, COLORADO; VERNAL, UTAH; ROCK SPRINGS, WYOMING Marginal points in black SALT LA cir y RIVERTON - LANDER STEAMBOAT SPRINGS - HAYPEN -CRAIG C/0.39) DENVE * Notes (1) 1969 daily passengers originating at each marginal point shown after city name. (2) Number of average daily flights operated shown on each segment. Appendix G-9 Page 2 of 3 MARGINAL ROUTE ANALYSIS G-9 SERVICE TO HAYDEN, COLORADO; ROCK SPRINGS, WYOMING; VERNAL, UTAH Flight Segment Data 1/ Mi lea^e 1969 Trips 1969 Psgrs. Psgrs. Trips Per Day Psgrs . Per Day Per Trip Havden - Denver 134 686 1.9 15,037 41.2 21.9 - Jackson 287 11 - 151 .4 13.7 - Rock Springs 123 642 1.8 9,251 25.3 14.4 Rock Springs - Jackson 162 167 .5 4,808 13.2 28.8 - Riverton 105 480 1.3 8,266 22.6 17.2 - Salt Lake City 161 648 1.8 12,293 33.7 19.0 - Vernal 84 654 1.8 6,828 18.7 10.4 Vernal - Salt Lake City 130 674 1.8 6,902 18.9 10.2 1/ Excluding irregular operations. Source: Special Frontier reports to the Board. Appendix G-9 Page 3 of 3 MARGINAL ROUTE ANALYSIS G-9 $25.09 $ - 26.62 1.06 15.53 .62 42.15 1.68 17.06 .68 5.97 .24 SERVICE TO HAYDEN, COLORADO; VERNAL, UTAH ROCK SPRINGS, WYOMING 1969 Per Per Dollar Financial Data Operations Passenger of Revenue Commercial revenue $ 622,000 Aircraft operating expense 660,000 Servicing 385,000 Total operating expense 1 ,045 ,000 Operating loss 423,000 Return and tax requirement 148 ,000 Subsidy need $ 571,000 $ 23.03 $ .92 Net effect of suspension/deletion at the three cities 1/ On-system revenue retained, net of expense $ 27,000 Subsidy need decrease $598,000 Statistics (1969 operations) Aircraft departures 4,044 Revenue miles 514,625 O&D passengers 24,789 Revenue passenger miles 6,328,000 Additional Data 1969 Station Population Certificated Closest Remaining Expense (Form 41) ( 1970) Service Since Certificated Point Steamboat Springs- Hayden-Craig $29,000 7,000 2/ 1964 Grand Junction 153 mi Rock Springs $33,000 11,000 ~ 1938 Salt Lake City 186 mi Vernal $38,000 4,000 1949 Grand Junction 119 mi 7 ,000 2/ 1964 11 ,000 1938 4 ,000 1949 1_/ Assumes that a replacement carrier would service these points on routings between Denver, Salt Lake City and Casper (no provision made for support thereof by Frontier) . 2_/ Hayden estimated. Appendix G-10 Page 1 of 3 MARGINAL ROUTE ANALYSIS G-10 SERVICE TO GUNNISON, MONTROSE, COLORADO; MQAB , UTAH Marginal points in black DENVER GRAND JUNCTION MONTROSE (17.9a GUNNISON (10A5) CORTEZ Notes (1) 1969 daily passengers originating at each marginal point shown after city name. (2) Number of average daily flights operated shown on each segment. Appendix G-10 Page 2 of 3 MARGINAL ROUTE ANALYSIS G-10 SERVI CE TO GUNNISON, MONTROSE, COLORADO; MOAB, UTAH Flight Segment Data 1/ Gunnison - Denver - Montrose Montrose - Denver - Grand Junction Moab - Cortez - Grand Junction 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Psgrs . Per Day Per Trip 134 56 93 71 656 586 183 651 54 1,279 564 1,146 1.8 22,475 62.3 1.6 12,728 34.9 1.9 14,491 39.7 3.5 24,109 66.1 1.5 7,101 19.5 3.1 9,818 26.9 34.3 21.7 22.3 18.8 12.6 8.9 1/ Excluding irregular operations. Source: Special Frontier reports to the Board. Appendix G- 10 Page 3 of 3 MARGINAL ROUTE ANALYSIS G-10 SERVICE TO GUNNISON, MONTROSE, COLORADO; MOAB , UTAH financial Data Commercial revenue Vircraft operating expense Servicing Total operating expense Operating loss leturn and tax requirement Subsidy need Jet effect of suspension/deletion at the three cities 2/ pi-system revenue retained, net of expense $ 71,000 Subsidy need decrease $529,000 1969 Per Per Dollar Operations Passenger of Revenue $553,000 $21.31 $ - 521,000 20.08 .94 382,000 14.72 .69 903,000 34.80 1.63 350,000 13.49 .63 108,000 4.16 .20 $458,000 $17.65 $ .83 Itatistics (1969 operations) aircraft departures 1/ tevenue miles 1_/ )&D passengers Levenue passenger miles additional Data 1969 Station Expense (Form 41) Junnison $26,000 lontrose-Delta 45,000 loab 24,000 4,380 326,418 25,947 5,545,000 Population Certificated Closest Remaining (1970)_ Service Since Certificated Point Grand Junction 130 mi Grand Junction 52 mi. Grand Junction 111 mi 5,000 1946 10,000 1946 5,000 1959 J Excludes certain flights operated primarily to service O&D traffic at )ther points. §/ Assumes that a replacement carrier would service these points on a Denver- Jrand Junction routing (no provision made for support thereof by Frontier). Appendix G-ll Page 1 of 3 MARGINAL ROUTE ANALYSIS G-ll SERVICE TO AMARILLO, BORGER, TEXAS; LAMAR, COLORADO Marginal points in black PUEBLO LAMAR (3.a^> LIBERAL OKLAHOMA CITy i.sr AMARI LLO Ui.34 BORGEfi <*. Notes (1) 1969 daily passengers originating at each marginal point shown after city name. (2) Number of average daily flights operated shown on each segment. (3) Temporary exemption to serve Borger through Amarillo granted in May, 1970 (Order 70-5-121). Appendix G-ll Page 2 of 3 MARGINAL ROUTE ANALYSIS G-ll SERVICE TO AMARILLO, BORGER, TEXAS; LAMAR, COLORADO Flight Segment Data— 1969 Trips 1969 Psgrs. Psgrs. Mi leage Trips Per Day Psgrs . Per Day Per Trip 36 537 1.5 9,725 26.6 18.1 203 512 1.4 7,864 21.5 15.4 263 40 0.1 604 1.7 15.1 Amar il lo - Borger - Lamar - Pueblo Borger - Okla. City 214 542 1.5 11,669 32.0 21.5 Lamar - Pueblo 100 603 1.7 9,123 25.0 15.1 1_/ Excluding irregular operations. Source: Special Frontier reports to the Board. Appendix G-ll Page 3 of 3 MARGINAL ROUTE ANALYSIS G-ll SERVICE TO AMARILLO, BORGER, TEXAS' LAMAR, COLORADO Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need $246,000 $13.17 $ .47 Net effect of suspension/deletion at the three cities 1/ On-system revenue retained, net of expense $ 32,000 Subsidy need decrease $278,000 Statistics (1969 operations) Aircraft departures 2,285 Revenue miles 320,867 O&D passengers 18,684 Revenue passenger miles 6,466,000 1969 Eer Per Dollar Operations Passenger of Revenue $518,000 $27.72 $ - 398,000 21.30 .77 276,000 14.77 .53 674,000 36.07 1.30 156,000 8.35 .30 90,000 4.82 .17 Additional Data 1969 Station Population Certificated Closest Remaining Expense (Form 41) ( 1970) Service Since Certificated Point Amarillo $66,000 Borger 15,000 Lamar 16,000 124,000 1938 Amarillo, BN,C0,TXI, TW 14,000 1951 Amarillo 50 miles 8,000 1956 Pueblo 91 miles 1_/ Assumes that a replacement carrier would service these points operating between Denver and Oklahoma City (no provision made for support thereof by Frontier) . Appendix G-12 Page 1 of 3 MARGINAL ROUTE ANALYSIS G-12 SERVICE TO ALLIANCE, CHADRON, SIDNEY, NEBRASKA Marginal points in black SCOTTSftLUFF DENVER* RAPID C IT y CHADRON C«*.a4> ALLIANCE U.88> SIDNEY ( H.BH) McCOOK Notes (1) 1969 daily passengers originating at each marginal point shown after city name. (2) Number of average daily flights operated shown on each segment. Appendix G-12 Page 2 of 3 MARGINAL ROUTE ANALYSIS G-12 SERVICE TO ALLIANCE, CHADRON, SIDNEY, NEBRASKA Flight Segment Data— 1969 Trips 1969 Psgrs. Psgrs. Mi leage Trips Per Day Psgrs . Per Day Per Trip Al liance - Chadron 55 1,170 3.2 - Scottsbluff 43 1,217 3.3 Chadron - Rapid City 83 1,157 3.2 Sidney - Denver 136 1,243 3.4 - McCook 140 260 .7 - Scottsbluff 63 961 2.6 1_/ Excluding irregular operations. Source: Special Frontier reports to the Board. 12,285 33.7 10.5 17.257 48.0 14.2 6,410 17.6 5.5 22,562 61.8 18.2 6,518 17.9 25.1 13,966 38.3 14.5 Appendix G- 12 Page 3 of 3 1969 Per Per Dollar Operations Passenger of Revenue $ 427,000 $27.10 $ - 767,000 48.67 1.80 399,000 25.32 .93 1,166,000 73.99 2.73 739,000 46.89 1.73 162,000 10.28 .38 $ 901,000 $57.17 $2.11 MARGINAL ROUTE ANALYSIS G-12 SERVICE TO ALLIANCE, CHADRON, SIDNEY, NEBRASKA Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need Net effect of suspension/deletion at the three cities 1/ On-system revenue retained, net of expense $ 44,000 Subsidy need decrease $945,000 Statistics (1969 operations) Aircraft departures 6,172 Revenue miles 498,841 OScD passengers 15,759 Revenue passenger miles 4,725,000 Additional Data 1969 Station Population Certificated Closest Remaining Expense (Form 41) ( 197Q) Service Since Certificated Point Alliance 40,000 7,000 1946 Scottsbluff 59 miles Chadron 34,000 5,000 1946 Scottsbluff 99 miles Sidney 35,000 6,000 1959 Scottsbluff 74 miles 1_/ Assumes that a replacement carrier would operate Denver-Sidney-Alliance- Chadron (no provision made for support thereof by Frontier). Appendix G-13 Page 1 of 3 MARGINAL ROUTE ANALYSIS G-13 SERVICE TO HOT SPRINGS, ARKANSAS Marginal points in black FAV6TTEV/ILLE FORT SMITH LITTLE ROCK HOT SPRIN6S (20.99) Notes (1) 1969 daily passengers originating at each marginal point shown after city name. (2) Number of average daily flights operated shown on each segment. Appendix G-13 Page 2 of 3 ight Segment Data. MARGINAL ROUTE ANALYSIS G-13 SERVICE TO HOT SPRINGS, ARKANSAS 1/ 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Psgrs « Per Day Per Trip t Springs - Fayetteville 122 53 .1 706 1.9 13.3 - Fort Smith 95 1,310 3.6 26,724 73.2 20.4 - Little Rock 51 1,375 3.8 22,715 62.2 16.5 Excluding irregular operations, urce: Special Frontier reports to the Board, Appendix G-13 Page 3 of 3 MARGINAL ROUTE ANALYSIS G-13 SERVICE TO HOT SPRINGS, ARKANSAS 1969 Per Per Dollar Operations Passenger of Revenue $388,000 $22.91 $ - 214,000 12.63 .55 212,000 12.52 .55 426,000 25.15 1.10 38,000 2,24 .10 43,000 2.54 .11 Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need $ 81,000 $ 4.78 $ .21 Net effect of suspension/deletion at the city On-system revenue retained, net of expense $ 93,000 Subsidy need decrease $194,000 Statistics (1969 operations) Aircraft departures 1_/ 2,076 Revenue miles 1_/ 114,964 O&D passengers 16,937 Revenue passenger miles 4,533,000 Additional Data 1969 Station Population Certificated Closest Remaining Expense (Form 41) ( 1970) Service Since Certificated Point Hot Springs $45,000 35,000 1947 Hot Springs-TXI j_/ Excludes certain flights operated primarily to service O&D traffic at other points. Appendix G- 14 Page 1 of 3 MARCINAL ROUTE ANALYSIS G-14 SERVICE TO SILVER CITY, NEW MEXICO Marginal points in black AL8UQ UEftQUE. TUCSON silver city Notes (1) 1969 daily passengers originating at each marginal point shown after city name . (2) Number of average daily flights operated shown on each segment. Appendix G-L4 Page 2 of 3 MARGINAL ROUTE ANALYSIS G-14 SERVICE TO SILVER CITY, NEW MEXICO 1/ Flight Segment Data— 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Psgrs . Per Day Per Trip Silver City Albuquerque Tucson 189 1,392 3.8 169 1,388 3.8 37,125 101.7 26.7 32,826 90.0 23.6 1/ Excluding irregular operations. Source: Special Frontier reports to the Board. MARGINAL ROUTE ANALYSIS G-14 SERVICE TO SILVER CITY, NEW MEXICO Appendix G-14 Pago 3 of 3 1969 Per Per Dollar Operations Passenger of Revenue $281,000 $22.39 $ - 349,000 27.81 1.24 152,000 12.11 .54 501,000 39.92 1.78 220,000 17.53 .78 78,000 6.22 .28 $298,000 $23.75 $1.06 Financial Data Commercial revenr - Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need Net effect of suspension/deletion at the five cities 2_/ On-system revenue retained, net of expense $ 18,000 Subsidy need decrease $316,000 Statistics (1969 operations) Aircraft departures 1_/ Revenue miles 1_/ O&D passengers Revenue passenger miles Additional Data 2,100 274,602 12,549 3,292,000 1969 Station Expense(Form 41) Silver City- Hur ley-Deming $36,000 Population (1970) 18,000 Certificated Closest Remaining Service Since Certificated Point 1948 Tucson 150 miles 1_/ Excludes certain flights operated primarily to service O&D traffic at other points. 2/ Assumes that a replacement carrier would operate Tucson-Silver City- Albuquerque (no provision made for support thereof by Frontier). Appendix H Page 1 of 2 CITIES INCLUDED IN FRONTIER'S 1969 MARGINAL ROUTES Station Alamosa, Colo. Alliance, Neb. Amarillo, Tex. Bartlesville, Oklfc. Borger, Tex. 3/ Chadron, Neb. Columbus, Neb. Cortez, Colo. Duncan, Okie,. Durango, Colo. Enid, Okla. Flagstaff, Ariz. Ft. Leonard Wood, Mo, Gallup, N. M. Garden City, Kan. Glasgow, Mont. Glendive, Mont. Goodland, Kan. Great BerxU Kan. 2/ Gunnison, Colo. Average Daily Originating Passengers 19.01 6.88 21.36 5.67 2.95 9.24 6.48 11.43 6.56 39.58 11.41 23.73 24.92 16.67 13.78 5.33 5.70 4.73 7.94 10.95 Harrison, Ark. 14.67 Hastings, Neb. 17.11 Havre, Mont. 3.02 Hays, Kan. 17.86 Hot Springs, Ark. 20.88 Hutchinson, Kan. 2/ 8.81 Independence/Co f fey vi lie/Par sons, Kan. 11.78 Kearney, Neb. 17.66 Lamar, Colo. 3.24 Laramie, Wyo. 15.01 Lewistown, Mont. 1.67 Liberal, KarVGuymon, Okla. 29.65 Lovell/Powell/Cody, Wyo. 9.70 McCook, Neb. 12.21 Miles City, Mont. 3.80 Daily Departures 3.8 3.4 1.7 3.2 1.5 3.3 3.4 3.6 2.9 5.6 3.6 3.8 3.6 3.8 3.5 1.8 1.8 1.7 2.5 1.8 3.6 3.6 1.8 3.5 3.7 3.4 3. 2 3. 6 1. 6 3. 5 1, 8 4, ,6 2, ,8 3. 5 1, 8 Appendix H Page 2 of 2 CITIES INCLUDED IN FRONTIER'S 1969 MARGINAL ROUTES Station Moab, Utah Montrose/Delta, Colo. Muskogee, Okl 1/ North Platte, Neb. Paris, Tex. 1_/ Ponc a City, Okla. River ton/Lander , Wyo. Rock Springs, Wyo. Santa Fe, N. M. Sidney, Neb. Silver City/Hur ley/Deming, N.M. Steamboat Springs/Hayden/Craig, Colo. St. Joseph, Mo« Stillwater, Okla. Tulsa, Okla. Vernal, Utah Wichita, Kan. Williston, N.D. Winslow, Ariz. Wolf Point, Mont. Daily Originating Daily Passengers Departures 6.02 2.6 17.92 3.8 2.1b 1.9 35.21 5.4 3.07 1.9 9.57 3.5 26.06 4.6 13.75 3.7 23.61 3.8 4.84 3.5 17.28 3.8 10.39 1.9 4.64 3.7 7.51 2.9 36.22 5.5 9.15 1.9 14.24 4.0 14.73 2.9 8.28 3.8 4.59 1.8 Worland, Wyo. 10.93 3.7 1_/ Temporary suspension authorized subject to termination if replacement carrier fails to provide a minimum level of service (Order 70-11-25). 2/ Temporary suspension authorized subject to Air Midwest maintaining a minimum level of service (Order 70-8-31). 3/ Temporary exemption granted to serve Borger through Amar il lo as the hyphenated point Amarillo/Borger (Order 70-5-121). Appendix I Page 1 of 1 CITIES ORIGINATING FEWER THAN 40 DAILY PASSENGERS BUT NOT INCLUDED IN FRONTIER'S MARGINAL ROUTES Authorized Point Alamagordo/Holloman A.F.B., N.M. Bozeman, Mont. El Paso, Texas Missoula, Mont, Pueblo, Colo. Salina, Kan. Topeka, Kan. West Yellowstone, Mont. Daily Originating Dai iy Key Passengers Departures 1/ 24.97 3.8 1/ 20.34 4.2 1/ 22.47 2.0 1/ 34.48 3.8 2/ 38.96 6.6 2/ 38.82 6.3 2/ 33.39 7.1 1/ 18.83 1.9 Key to exclusion from marginal system : 1_/ Services to city produced an operating profit. 2/ Over 6 departures per day 1.2,190 per year). Appendix J Page 1 of 1 NON-HUB CITIES ORIGINATING 40 OR MORE FRONTIER PASSENGERS PER DAY Bismarck/Mandan, N.D. Casper Wyo. Cheyenne, Wyo. Farmington, N.M. Fayetteville, Ark. Grand Island, Neb. Jackson, Wyo. Jo p 1 i n , Mo . Lawton/Ft. Sill, Okla. Manhattan/ Junction City/ Ft. Riley, Kan. Minot, N.D. Scottsbluff, Neb. Daily Originating Daily Passengers Departures Equipment 42.41 3.5 CV-580, B-727-100/200, B-737-200 72.63 9.6 CV-580, B-727-100/200, B-737-200 41.74 8.3 CV-580 63.46 9.7 CV-580 79.47 9.3 CV-580 41.71 5.5 CV-580 51.64 4.0 CV-580 41.70 4.0 CV-580 136.41 8.7 CV-580, CV-600 86.05 8.8 CV-580, CV-600 41.68 2.8 CV-580, B-727-100/200, B-737-200 49.53 7.3 CV-580 App' ndix K 1 Page 1 of 3 MARGINAL ROUTE ANALYSIS K-l ALEXANDRIA AND MONROE, LOUISIANA; EL DORADO AND PINE BLUFF, ARKANSAS; AND JACKSON, MISSISSIPPI (Marginal Points In Black) Hot Springs Notes : (1) 1969 daily passengers originating at each marginal point shown after city name. (2) 1969 operations: CV-600 equipment, except for Houston- Jackson . (see discussion Supra . ) Number of average daily flights operated shown on each segment . (3) Since 1969 Texas International has inaugurated Beech 99 service at El Dorado and Pine Bluff. Based upon April ^j, 197 i schedules, both CV-600 and Beech 99 equipment serve these two points Appendix K-l Page 2 of 3 MARGINAL ROUTE ANALYSIS K-l SERVICE TO ALEXANDRIA AND MONROE, LOUISIANA; EL DORADO AND PINE BLUFF, ARKANSAS; AND JACKSON, MISSISSIPPI Flight: Segment Data 1969 Trips 1969 Psgrs . Psgrs . Mi leage Trips Per Day Psgrs . Per Day Per Trip Alexandria- Houston 210 60 .2 821 2.2 13.7 Jackson 145 823 2.3 13,406 36.7 16.2 Lake Charles 104 350 1.0 3,377 9.3 9.6 Monroe 79 630 1.7 8,751 24.0 13.6 New Orleans 156 1,040 2.8 25,314 69.3 24.3 Fort Polk 58 873 2.4 17,542 48.1 20.0 El Dorado- Little Rock 110 1,203 3.3 15,612 42.8 12.9 Long view 125 320 .9 2,319 6.4 7.2 Monroe 66 1,190 3.3 16,206 44.4 13.6 Pine Bluff 83 668 1.8 6,400 17.5 9.5 Tyler 161 347 1.0 3,819 10.5 11.0' Jackson- Houston 350 207 .7 2,332 6.4 11.3 Monroe- Lake Charles 179 108 .3 1,073 2.9 9.9 Fort Polk 122 465 1.3 7,932 21.7 17.0 Pine Bluff- Hot Springs 69 354 1.0 7,709 21.1 21.7 Little Rock 43 350 1.0 8,675 23.8 24.7 Memphis 128 1,388 3.8 27,621 75.7 19. » Other - 142 - 1,527 Source: Special Texas International reports to the Board Appendix K-l Page 3 of 3 MARGINAL ROUTE ANALYSIS K-l SERVICE TO ALEXANDRIA AND MONROE, LOUISIANA; EL DORADO AND PINE BLUFF, ARKANSAS; AND JACKSON, MISSISSIPPI Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need $1,135,594 $15.67 $ .75 Net effect of suspension/deletion at the five cities 1_/ On-system revenue retained, net of expense $ 175,026 Subsidy need decrease $1,310,620 Statistics (1969 operations) Aircraft departures 10,518 Revenue miles 1,182,463 OcxD passengers 72,460 Revenue passenger miles 15,875,000 1969 Per Per Dollar Operations Passenger of Revenue $1,503,073 $20.74 $ - 1,407,151 19.42 .94 880,224 12.15 .58 2,287,375 31.57 $1.52 $ 784,302 $10.82 .52 351,292 4.85 .23 Additional Data 1969 Station Population Certificated Closest Remaining Expense (Form 41) ( 1970) Service Since Certificated Poin t Alexandria $67,903 El Dorado $57,007 Jackson $61,335 Monroe $35,484 Pine Bluff $34,696 41 ,000 1943 Alexandria Delta 39 000 1945 Texarkana 89 mi . 150 ,000 1938 Jackson Delta and Southern 55 ,000 1938 Monroe Delta and Southern 56 ,000 1940 Little Rock 42 mi 1_/ Assumes an air taxi Texarkana-El Dorado-Pine Bluff-Little Rock and an air taxi Jackson-Alexandria-Lake Charles (no provision has been included for support thereof by Texas International). Appendix K-2 Page 1 of 3 MARGINAL ROUTE ANALYSIS K-2 CLOVIS, NEW MEXICO AND BIG SPRING, TEXAS (Marginal Points in Black) AiTmquerque Abi lene Not es : (. P L°o9 daily passengers originating at e^.ch marginal poir; shown after city name. (2) 1969 operations: CV-600 equipment flights operated shown on each segment Number of average dailv Appendix K-2 Page 2 of 3 MARGINAL ROUTE ANALYSIS K-2 SERVICE TO BIG SPRING, TEXAS AND CLOVIS , NEW MEXICO Flight Segment Data 1969 T rips 1969 P sgrs. Psgrs . Mi leage Trips P er Day Psgrs . P er Dav Per T r i p Big Spring- Abi lene 100 427 1.2 4,382 12.0 10.2 Brownwood 150 89 .2 991 2.7 11.1 Dallas 270 1,068 2.9 22,238 60.9 20.8 Hobbs 107 29 .1 668 1.8 23.0 Lubbock 101 1,219 3.3 17,810 48.8 14.6 Midland 52 339 .9 462 1.3 1.3 Clovis- Albuquerque 206 598 1.6 5,055 13.8 8.4 Lubbock 89 1,235 3.4 16,118 44.2 13.0 Santa Fe 190 634 1.7 8,364 22.9 13.1 Other - 6-108 .3 18.0 Source: Special Texas International reports to the Board Appendix K-2 Page 3 of 3 MARGINAL ROUTE ANALYSIS K-2 BIG SPRING, TEXAS AND CLOVIS, NEW MEXICO 1969 Per Per Dollar Operations Passenger of Revenue $ 704,923 $26.88 $ - 889,970 33.93 1.26 407,037 15.52 .58 1,297,007 49.45 1.84 $ 592,084 $22.57 $ .84 215,242 8.21 .31 Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need $ 807,242 $30.78 $1.15 Net effect of suspension/deletion at the two cities \J On-system revenue retained, net of expense $153,326 Subsidy need decrease $960,568 Statistics (1969 operations) Aircraft departures 5,644 Revenue miles 842,620 O&D passengers 26,228 Revenue passenger miles 8,485,000 Additional Data Big Spring Clovis 1969 Station Expense (Form 41) $31,423 $31,106 Population Certificated Closest Remaining (1970) Service Since Certificated Point 28,000 28,000 1938 1948 Midland 59 miles Lubbock 97 miles 1/ Assumes that a replacement service would operate Clovis-Lubbock- Big Spring-Brownwood-Dal las (no provision has been included for support thereof by Texas International). Appendix K-l Page 1 of 3 MARGINAL ROUTE ANALYSIS K-3 CARLSBAD AND HOBBS, NEW MEXICO (Marginal Points in Black) Roswel 1 Abi lene Da 1 las El Paso Not es : (1) 1969 daily passengers originating at each marginal point shown after city name. (2) 1969 operations: CV-600 equipment. Number of average daily flights operated shown on each segment. Appendix K-3 Page 2 of 3 MARGINAL ROUTE ANALYSIS K-3 SERVICE TO CARLSBAD AND HOBBS , NEW MEXICO Flight Segment Data 1969 Trips 1969 Psgrs . Psgrs . Mi leage Trips Per Day Psgrs . Per Day Per Trip Carlsbad- El Paso 133 601 1.6 4,482 12.3 7.4 Hobbs 65 1,510 4.1 16,363 44.8 10.8 Roswel 1 68 1,180 3.2 15,014 41.1 12.7 Hobbs- Abi lene 202 281 .8 6,217 17.0 22.1 Big Spring 107 29 .1 668 1 .8 23.0 Dallas 369 350 1.0 3,245 8.9 9.2 Midland 77 692 1.9 8,485 23.2 12.2 Roswel 1 87 422 1.2 5,815 15.9 13.7 Other 21 301 .8 14.3 Source: Special Texas International reports to the Board Appendix K-3 Page 3 of 3 MARGINAL ROUTE ANALYSIS K-3 CARLSBAD AND HOBBS, NEW MEXICO 1969 Per Per Dollar Operations Passenger of Revenue $556,171 $26.15 $ - 649,608 30.54 1.17 342,301 16.10 .61 991,909 46.64 1.78 $435,738 $20.49 .78 151,334 7.11 .28 $587,072 $27.60 $1 .06 Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss .rn and tax requirement Subsidy need Net effect of suspension/deletion at the two cities 1_/ On-system revenue retained, net of expense $140,465 Subsidy need decrease $727,537 Statistics (1969 operations) Aircraft departures 5,086 Revenue miles 541,291 O&D passengers 21,267 Revenue passenger miles 6,550,000 Additional Data 1969 Station Expense Population Certificated Closest Remaining (Form 41) ( 1970) Service Since Certificated Point Carlsbad $30,932 21,000 1940 Roswell 79 miles Hobbs $29,835 26,000 1940 Midland 89 miles !_/ Assumes replacement service would operate Roswe 1 1-Car lsbad-Hobbs- Midland (no provision has been included for support thereof by Texas Internat ional) . Appendix K-4 Page 1 of 3 MARGINAL ROUTE ANALYSIS K-4 COLLEGE STATION, GALVESTON AND VICTORIA, TEXAS (Marginal Points in Black) Beaunront ictoria (12.5) Notes : (1) 1969 daily passengers originating at each marginal point shown after city name . (2) 1969 operations: CV-600 equipment. Number of average daily flights operated shown on each segment. (3) Since 1969, Texas International has inaugurated Beech 99 service at all three marginal points. Based upon April 15, 1971 schedules both CV-600 and Beech 99 equipment serve College Station and Galveston All of Victoria's current is provided with the Beech 99. Appendix K-4 Page 2 of 3 MARGINAL ROUTE ANALYSIS K-4 SERVICE TO COLLEGE STATION, GALVESTON AND VICTORIA, TEXAS 74 1,433 3.9 12,275 33.6 8.6 74 1,274 3.5 11,905 32.6 9.3 88 376 1.0 3,757 10.3 9.9 Flight Segment Data 1969 Trips 1969 Psgrs. Psgrs . Mileage Trips Per Day Psgrs . Per Day Per Trip College Station- Houston Temple Waco Galveston- Beaumont Houston Victoria- Houston San Antonio Other 59 799 2.2 13.5 Source: Special Texas International reports to the Board 70 658 1.8 8,038 22.0 12.2 57 1,167 3.2 12,252 33.6 10.5 123 1,367 3.7 14,595 40.0 10.7 105 500 1.4 7,521 20.6 15.0 Appendix K-4 Page 3 of 3 MARGINAL ROUTE ANALYSIS K-4 COLLEGE STATION, GALVESTON AND VICTORIA, TEXAS 1969 Per Per Dollar Financial Data Operations Passenger of Revenue Commercial revenue $ 535,278 $24 . 14 $ Aircraft operating expense 670,710 30.25 1.25 Servicing 385,746 17.40 .72 Total operating expense 1 ,056 ,456 47 .65 1 .97 Operating loss $ 521,178 $23.51 $ .97 Return and tax requirement 150,335 6 .79 .29 Subsidy need $ 671,913 $30.30 $1.26 Net effect of suspension/deletion at the three cities 1/ On-system revenue retained, net of expense $ 40,704 Subsidy need decrease $712,217 Statistics (1969 operations) Aircraft departures 2/ 6.232 Revenue miles 2/ 483,048 O&D passengers 22,172 Revenue passenger miles 5,062,000 Additional Data 1969 Station College Station Galveston Victoria Expense Population Certificated Closest Remaining (Form 41) (1970) Service Since 1946 Certificated Point $46,503 50,000 Houston 104 miles $26,832 61,000 1938 Houston 50 miles $33,902 39,000 1946 Corpus Christi 93 miles 1/ Assumes existing air taxi (Davis Airlines) would continue College Station- Dallas service and would also serve the College Station-Houston-Victoria markets. (No provision has been included for support thereof by Texas International . 2/ Excludes certain flights operated primarily to serve O&D traffic at other points. Appendix K-5 Page 1 of 3 MARGINAL ROUTE ANALYSIS K-5 JONESBORO, ARKANSAS (Marginal Point Shown in Black) Jonesboro (12.6) Memphis Notes : (1) 1969 daily passengers originating at marginal point shown after city name. (2) 1969 operations: CV-600 equipment. Number of average daily flights operated shown on each segment. ( 3) Since 1969 Texas International has inaugurated Beech 99 service at Jonesboro. Based upon April 15, 1971 schedules, all of Jonesboro ' s current service is provided with the Beech 99. Appendix K-5 Page 2 of 3 MARGINAL ROUTE ANALYSIS K-5 SERVICE TO JQNESBORO, ARKANSAS Flight Segment Data 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Ps grs . Per Day Per Trip 9,184 25.2 9.0 9,868 27.0 6.2 Jonesboro - Little Rock 117 1,010 2.8 Memphis 66 1,569 4.3 Source: Special Texas International reports to the Board, Appendix K-5 Page 3 of 3 1969 Per Per Dollar Operations Passenger of Revenue $205,085 $_ 23.86 $ - 29 2,259 34.01 1.42 165,514 19.26 81 457,773 53.27 2.23 $252,688 $ 29.41 ? 1.23 66,216 7.70 .32 MARGINAL ROUTE ANALYSIS K-5 J0NESB0R0, ARKANSAS Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need $318,904 $ 37.11 $ 1.55 Net effect of suspension/deletion at the city — Qn-system revenue retained, net of expense $11,238 Subsidy need decrease $330,142 Statistics (1969 operations) Aircraft departures 2,579 Revenue miles 221,724 G&D passengers 8,594 Revenue passenger miles 1,713,000 Additional Data 1969 Station Population Certificated Closest Remaining Expense (Form 41) (1970) Service Since Certificated Point Jonesboro $32,251 27,000 1961 Memphis 87 miles 1/ Assumes air taxi Jonesboro-Memphis (no provision has been included for support therefore by Texas International.) Appendix iC-6 Page 1 of 3 MARGINAL ROUTE ANALYSIS K-6 LUFKIN, TEXAS (Marginal Point Shown in Black) Dallas Longview Beaumont Notes : (1) 1969 daily passengers originating at marginal point shown after city name. (2) 1969 operations: CV-600 equipment. Number of average flights operated shown on each segment. ( 3) Since 1969 Texas International has inaugurated Beech 99 service at Lufkin. Based upon April 15, 1971 schedules, all of Luf kin's current service is provided with the Beech 99. Appendix K-6 Page 2 of 3 MARGINAL ROUTE ANALYSIS K-6 SERVICE TO LUFKIN, TEXAS Flight Segment Data Lufkin - Beaumont Dallas Houston Longview Other 1969 Trips 1969 Psgrs. Psgrs. Mi leage Trips Per day Psgrs . Per Day Per Tr i p 98 265 .7 3,997 11.0 15.0 166 266 .7 5,126 14.0 19.2 93 884 2.4 8,420 23.1 9.5 80 881 2.4 8,286 22.7 9.4 — 2 m 28 _ 14.0 Source: Special Texas International reports to the Board. Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need MARGINAL ROUTE ANALYSIS K-6 LUFKIN, TEXAS 1969 Operations $155,791 284,156 124,719 408,875 $253,084 65,749 $318,833 Appendix K-6 Page 3 of 3 Per Passenger $19.71 35.95 15.78 51.73 32.02 8.32 $40.34 Net effect of suspension/deletion at the city 1/ On-system revenue retained, net of expense $48,388 Subsidy need decrease $367,221 Statistics (1969 operations) Aircraft departures 2,298 Revenue miles 231,194 O&D passengers 7,903 Revenue passenger miles 1,228,000 Additional Data Per Dollar of Revenue $ - 1.82 .80 $2.62 1.62 .43 $2.05 Luf kin 1969 Station Expense (Form 41) $ 31,066 Population (1970) 24,000 Certificated Service Since 1946 Closest Remaining Certificated Point Tyler 85 miles 1_/ Assumes that Lufkin traffic would travel by air taxi to Tyler or Beaumont (no provision has been included for support thereof by Texas International). Appendix K-7 Page 1 of 3 MARGINAL ROUTE ANALYSIS K-7 BROWNWOOD, TEXAS (Marginal Point Shown in Black) Dallas Big Sprin Abi lene /San Angelo Notes : (1) 1969 Daily passengers originating at marginal point shown after city name. (2) 1969 Operations: CV-600 Equipment. Number of average daily flights operated shown on each segment. Flight Segment Data Appendix K-7 Page 2 of 3 MARGINAL ROUTE ANALYSIS K-7 SERVICE TO BROWNWOOD, TEXAS Brownwood Abilene Big Spring Dallas San Angel o Other 1969 Trips 1969 Psgrs. Psgrs. Mileage Trips Per Day Psgrs. Per Day Per Trip 60 29 .1 333 .9 11.4 150 89 .2 991 2.7 11.1 143 1,345 3.7 28,950 79.3 21.5 97 1,229 3.4 21,059 57.7 17.1 _ 1 — 19 — 17.1 Source: Special Texas International reports to the Board. Appendix K-7 Pace 3 of 3 MARGINAL ROUTE ANALYSIS K-7 BROWNWOOD, TEXAS Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need 1969 Operations $145,581 136,034 102,744 238,778 $ 93,197 28,178 $121,375 Per Passenger $19, 74 18. 13 32 44 93 37 $12 63 3 82 Net effect of suspension/deletion at the city On-system revenue retained, net of expense Subsidy need decrease Statistics (1969 operations) Aircraft departures 2/ Revenue miles 2/ 0 6 $402,372 Net effect of suspension/de letion at the c: On- system revenue retained, net of expense Subsidy need decrease S tatistics (1969 operations) Aircraft departures Revenue miles O&D passengers Revenue passenger miles 1 1,915 8,213 1,952 340,000 Additional Data Mart insburg 1969 Station Population Expense (Form 41) 1970 $22,000 15,000 1/ $ 2,378 $404,750 Per Dollar of Revenue $4 1 .27 ,52 5 .79 4 .79 .99 $5.78 Certificated Ser vic e^ Since '1949 Closest Remaining Certificated Poin t Baltimore 67 mi 1/ Assumes replacement carrier would operate Martinsburg-Hagerstown- Baitimore-Washington (no provision has been made for support thereof by Allegheny) . Appendix P-5 Page 1 of 3 MARGINAL ROUTE ANALYSIS P-5 PORTSMOUTH, OHIO (Marginal Point Shown in Black) Cincinnati Parkersburg Portsmouth ( 2.7) NOTES : (1) 1969 Daily passengers originating shown after city name, (2) 1969 Operations: N-262 and CV-580 equipment , Number of average daily flights operated shown on each segment„ Appendix E-5 Page 2 of 3 MARGINAL ROUTE ANALYSIS P-5 PORTSMOUTH, OHIO Flight Segment Data 1969 Trips 1969 Psgrs. Psgrs. Mi leage Trips Per Day Psgrs . Per Day Per Trip Portsmouth- Cincinnati 99 976 2.7 7,035 19.3 7.2 Parkersburg 83 924 2.5 5,426 14.9 5.9 MARGINAL ROUTE ANALYSIS P-5 PORTSMOUTH, OHIO Appendix P-5 Page 3 of 3 Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need Net effect of suspension/deletion a t the city On-system revenue retained, net of expense $ 4,782 Subsidy need decrease $285,519 Statistics (1969 operations) Aircraft departures 1,900 Revenue miles 177,116 O&D passengers 1,744 Revenue passenger miles 250,000 1969 Operations $ 56,384 Per Passenger $ 32.33 131.42 26.52 157.94 125.61 35.35 $160.96 Per Dollar of Revenue 229,197 46,258 $4.06 .82 275,455 .219,071 4.88 3,89 61,666 $280,737 1.09 $4.98 Additional Data Portsmouth 1969 Station Population Certificated Closest Remaining ExpenseCForm 41 ) 1970 Service Since Certificated Point $15,000 28,000 1940 Huntington, 45 mi Appendix P-6 Page 1 of 3 MARGINAL ROUTE ANALYSIS P-6 KOKQMA AND MARION, INDIANA (Marginal Points in Black) Kokomo (6.9) Marion (5.2) NOTES (1) 1969 Daily passengers originating at each marginal point shown after city name, (2) 1969 Operations: N-262 equipment* Number of average daily flights operated shown on each segment,, (3) Allegheny was suspended at both points on November 15, 1969. Both points transferred to a scheduled air taxi. Appendix P-6 Page 2 of 3 MARGINAL ROUTE ANALYSIS P-6 KOKOMO AND MARION, INDIANA Flight Segment Data 1969 Trips 1969 Psgrs . Psgrs. Mileage Trips Per Day Psgrs . Per Day Per Trip Kokomo- Chicago 140 594 1.6 4,930 13.5 8.3 Marion 21 573 1.6 3,782 10.4 6.6 Marion- Chicago 155 509 1.4 3,258 8.9 6.4 i MARGINAL ROUTE ANALYSIS P-6 KOKOMO AND MARION, INDIANA Appendix P-6 Page 3 of 3 Financial Data Commercial revenue Aircraft operating expense Servicing Total operating expense Operating loss Return and tax requirement Subsidy need Net effect of suspension/deletion at the two cities 1_ / On-system revenue retained, net of expense $ 681 Subsidy need decrease $203,606 Statistics (1969 operations) Aircraft departures 1,167 Revenue miles 94,851 O&D passengers 8,110 Revenue passenger miles 1,139,000 1969 Operations $160,122 Per Passenger $19.74 25.88 11.38 37.26 17.52 7.50 $25.02 Per Dollar of Revenue 209,875 92,308 $1.31 .57 302,183 142,061 1.88 .89 60,864 .38 $202,925 $1.27 Additional Data Kokomo Marion 1969 Station Population Certificated Closest Remaining Expense(Form 41) 1970 Service Since Certificated Point $24,000 76,000 1947 Lafayette 46 mi . $17,000 40,000 1944 Fort Wayne 52 mi. J_/ Assumes a replacement carrier would operate Chicago-Kokomo-Marion- Indianapolis (no provision included for support thereof by Allegheny). CITIES INCLUDED IN ALLEGHENY'S 1969 MARGINAL ROUTES Appendix Q Page 1 of 1 Altoona, Pa. Atlantic City, N. J. Bloomington, Ind . Grand Rapids, Mich. Johnstown, Pa. Kalamazoo, Mich. Kokomo/Logansport/Peru, Ind. Lancaster, Pa. Lawrencevi 1 le/Vincennes , Ind. Lima, Ohio Marion, Ind. Martinsburg, W. Va . Muncio/Anderson/New Castle, Ind Oil City/Franklin, Pa. Portsmouth, Ohio South Bend, Ind. Toledo, Ohio Trenton, N. J. Wheeling, W. Va . Wilmington, Del . Youngstown, Ohio Zanesville/Cambridge, Ohio Average Daily Daily Originating Passengers Departures 36.37 3.8 39.85 2.1 28.41 4.5 4.22 0.9 24.84 2.8 2.19 1.4 6.87 1.7 33.94 4.8 3.06 1.2 6.26 2.1 5.17 1.5 2.33 2.6 20.61 4.1 10.56 2.2 2.68 2.5 12.61 2.4 18.35 2.4 15.47 3.5 7.01 3.3 7.87 2.9 24.03 3.3 3.64 3.0 Note: Service provided with Nord-262, F-27 J and CV-580 equipment Source: Appendix P; Form 41 ' s . Appendix R CITIES ORIGINATING FEWER THAN 40 DAILY PASSENGERS BUT NOT INCLUDED IN ALLEGHENY'S MARGINAL ROUTES Daily Originating Daily Station Ke^ Passengers Departures Equipment Cape May, N. J. 1/ 17.06 1.3 2/ CV-580 Evansville, Ind . 1/ 35.17 2.1 CV-580 Reading, Pa. 1/ 32.88 4.1 CV-580 1/ Operating profit. 2/ Seasonal service-6- 15-69 through 6-1-69 Appendix S Page 1 of 1 NON-HUB CITIES ORIGINATING 40 OR MORE ALLEGHENY PASSENGERS PER DAY Daily Originating Daily Passengers Departures Equipmen t Bradford, Pa. Bridgeport, Conn. Clarksburg/Fairmont, W. Va . Clearf ield/Dubois/Bel lef onte/State College, Pa. Huntington, W. Va . Jamestown, N. Y. Lafayette , Ind . Morgantown, W. Va . New Haven, Conn. New London, Conn. Parkersburg, W. Va . /Marietta, Ohio Terre Haute, Ind. Wi 1 liamsport , Pa. 67.12 8.7 F-27J,CV-580 83.89 7.3 CV-580 89.49 8.5 N-262,F27J,CV-580 . 55.55 5.1 CV-580 68.26 5.1 F-27J, CV-580 42.98 6.0 CV-580 58.95 6.0 N-262, CV-580 57.96 8.6 N-262,F-27J, CV-580 55.96 4.2 F-27J, CV-580 85.41 4.6 F-27J, CV-580 105.05 6.4 N-262, F-27J, CV-580 48.08 7.9 N-262, CV-580 113.03 8.9 CV-580 Appendix T Page 1 of 1 POINTS ON ALLEGHENY'S SYSTEM WHICH HAVE BEEN SUSPENDED OR TRANSFERRED January 1, 1969-June 30, 1971 Dubois, Pa. Salisbury, Md . Mansfield, Ohio Elkins, W. Va . Marion, Ohio") Kokomo, Ind .) Lawrencevi 1 le , 111. Oil City, p a . Zanesville, Ohio Johnstown, Pa. Wheeling, W. Va . Atlantic City, N. J Cape May , N . J . Kalamazoo, Mich. Martinsburg, W. Va . Muncie, Ind. Total 1/ Estimated Served By Date Subsidy Need Scheduled Suspended Reduction Air Taxi 3-10-69 $ 44,000 X 6-1-69 25,000 X 7-1-69 59,000 X 9-15-69 35,000 X 11-15-69*") 2 30,000 X 11-15-69J X 12-18-69 68,000 12-31-69 79,000 X 1-15-70 55,000 4-26-70 (107,000) X 6-1-70 145,000 7-12-70 96,000 X 7-12-70 6,000 X 9-29-70 24,000 12-1-70 153,000 X 3-5-71 105,000 X $1,017,000 1/ Partial suspension Appendix U 1 of 1 COMPARISON OF CARRIERS ANALYZED IN PART I ALL DATA - CALENDAR 1969 al System ."ber of stations al passengers (000) sidy need (000,000) sidy received (000,000) cent subsidy received of need Air Texas West Allegheny 73 Frontier 96 Int ernat ional 76 52 2,8Ul 4,655 1/ 2,348 1,950 $27.8 $13.3 $13.8 $12. 4 $ 9.^ $ 1.4 $ 9.h $ 3.3 M 10$ 61$ 27$ ginal Routes ber of marginal routes ber of stations cent marginal stations of system rage station expense (Form 4l) bined population-marginal cities (000,000) sidy need (000,000) cent of subsidy received ber of passengers sidy need per passenger sidy need per revenue dollar mercial revenue per passenger craft operating expense per pass. vicing expense per passenger io-svcg. exp. to acft. optg. expens* cent of system non-jet departures cent of originating passengers cent of RPM's in scheduled service cent of passenger revenue cent of total operating expense 11 6 14 33 22 56 43$ 58$ $43,000 $40,800 $32,900 1.0 1-9 1.6 $ 7.3 $ 5.2 $ ll.O 129$ 27$ 61$ 304,847 227,467 1/ 518,065 $23.92 $22.67 $21.23 $ 1.32 .9^ $ .79 $18.00 $24.22 $26.94 $21. 7^ $25.60 $25.75 $16.83 $lU.58 $15.65 73$ 57$ 65$ 36$ 23$ 57$ 5.2$ *+.9$ 10.7$ 8.1$ 3.6$ 15.7$ 9.2$ 4.7$ 19.8$ 12.8% 7.7$ 26.8$ 7 15 $38,600 .6 $ 3.9 171,490 $23.00 $ l.o4 $22.15 $25.14 $14.05 33$ 7. ; 7.' 12.; Allegheny submitted on-f light, rather than on-line, 0&D traffic routings for 1969. To eliminate any inconsistency with the treatment of the other carriers, the on-f light total traffic reported for each Allegheny marginal point was distributed to the appropriate on-line markets on the basis of data for 1969 in Table 10 of the Board's Surveys . mj.S. GOVERNMENT PRINTING OFFICE: 1972 720-990 (357) 1/3 PENN