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Essential Air Service at WATERTOWN, NEW YORK Under 49 U.S.C 41731 et seq.
DOT-OST-1997-2842
local catchment area. The proposed EAS subsidy is higher than our previous agreement primarily due to the proposed additional departure. The proposed subsidy also reflects the costs associated with the unique operational challenges that exist in Watertown which were unforeseen in our first two years of operation. Our current bid should reflect our belief that the Essential Air Service subsidy is vital, and on this trajectory the service may one day be able to exist profitably without Federal subsidy. American would like to also request that the DOT and Watertown allow us flexibility in substituting an Embraer EMB 140 (44 seats), operated by Chautauqua under the American Connection brand, when needed for the same rates. This will allow us to provide an additional. layer of schedule protection. American also requests that the DOT and Watertown waive the right to hold-in American Eagle service upon issuance of a 120 days-notice to terminate service. Although we do not foresee this to be an issue and plan to continue developing the Watertown market, we cannot be operationally constrained and kept in a market indefinitely, without ability to adapt to changing circumstances. We believe that our to-date success in Watertown is demonstrative of the American Airlines network and marketing programs. American Airlines is the only airline with a dedicated Regional Market Development team that will continue its promotion of the brand and service in the communities. This is a testament of American's support and ability to provide air service to small communities unlike low cost carriers in the industry today. We look forward to serving the Watertown area for many years to come and appreciate the communities and the Department of Transportation consideration of continued American Airlines service.
Sincerely,
Market: Aircraft
Mileage Annual Deps (Factored) Block per Dep
~nnual
68.8%
Completion Percentage
Revenues
Annual Passengers Avg Fare - Onboard 40,228 $132
$5,328,809
Total Expenses Profit I (Loss) Profit Element(@ 5%) Subsidy Required Subsidy I Departure Subsidy I Pax
Depart
7:20AM 5:35PM 2:15PM 3:15PM
Arrive
9:00AM 6:55PM 5:00PM 6:00PM
Freguency
Daily Daily* (Except Sat.) Daily* (Except Sat.) Saturday only
ORO-ART 6:40PM 9:25PM Daily* (Except Sat.) ** Schedule is shown for illustrative purposes only and American Airlines reserves the right to change without notice. All times are local.