Essential Air Service Proposal
Merced, CA
DOT-OST-1998-3521
July 10, 2025
ATTACHMENT 3
About Boutique Air
Our Story
Our Aircraft
Proposal
Headquartered in San Francisco, California, Boutique Air has been in operation since 2007. We began by flying fire surveillance missions for the U.S. Forestry Service and Bureau of Land Management. We evolved to provide air charter services across the west coast with our fleet of Pilatus and Beechcraft aircraft.
In July of 2012, Boutique Air applied for commuter operating authority from the Department of Transportation. Boutique Air began flying scheduled service between Los Angeles and Las Vegas in January of 2014.
On April 22, 2014 Boutique Air received its first EAS contract when the DOT selected the airline to provide service between Clovis, New Mexico and Dallas/Ft. Worth, Texas. Since then, we have continued our track record of success, providing reliable and high quality air transportation to over twenty EAS communities over the past 9 years.
Boutique Air currently operates a modern fleet of Pilatus PC -12 aircraft. Boutique Air ensures that aircraft are equipped with amenities beyond those found in typical commercial airline aircraft, and that pilots provide a level of customer service beyond that of normal commercial airlines, as they may routinely fly both public and private charter flights. Our aircraft have the following amenities:
• 8 or 9 Passenger Seat Configuration
• Leather Seats
• Pressurized Cabin
• Power Outlets
• Enclosed Lavatory
• Refreshments Provided on all Boutique Flights
Our airline service will be operated with 8 or 9 seat Single-Engine Pilatus PC -12 aircraft. We are proposing a two, three, or four year contract duration for the community to consider with a 5% increase each year. We are proposing four options for EAS at Merced.
Boutique Air is uniquely positioned to operate at SFO due to our aircraft wingspan size and passenger limit. We are able to deliver full size bags landside and we do not need to wait for gates with passenger boarding bridges.
Boutique Air will fly 24 Weekly Round Trips from Merced to SFO and LAX. The service pattern will be 12 round trips to each hub, but Boutique Air may shift up to 6 flights from one hub to the other. The minimum service to either hub will be 6 weekly round trips.
Option 1
Option 2
Option 3
Option 4
Option 5
Boutique Air will fly 24 Weekly Round Trips from Merced to SFO. This option provides the most value to passengers and DOT and allows faster travel times to most destinations in the US. SFO is a major hub for United Airlines, an interline partner of Boutique Air.
Boutique Air will fly 24 Weekly Round Trips from Merced to LAX. This option provides the most opportunities for travelers to and from Los Angeles, which is Merced's top direct market, while still allowing connecting travelers to reach their final destination with one stop at LAX. LAX is a hub for both United and American Airlines, with whom Boutique Air has interline agreements.
Boutique Air will fly 24 Weekly Round Trips from Merced to LAX and LAS. The service pattern will be 12 round trips to each hub, but Boutique Air may shift up to 6 flights from one hub to the other. The minimum service to either hub will be 6 weekly round trips. LAS is a preferred leisure destination for Merced, as many community members have expressed a strong desire to have a direct route to LAS.
With admission into the Alternate Essential Air Service Program, Boutique Air will work with the community to develop an ideal service pattern between SFO, LAX, and LAS/HND. For fixed subsidies per flight, Boutique Air will operate a flexible service which more succinctly meets the air transportation needs of Merced. The minimum service will be 14 weekly round trips to a single hub, likely SFO or LAX.
There is no maximum weekly service level.
Yearly subsidy requirement will be based on 10 Weekly Round Trips to SFO, 12 Weekly Round Trips to LAX, plus 2 Weekly Round Trips to LAS/HND. Boutique Air and the Merced Community will collaborate on a schedule which maximizes value to the community while keeping within the fixed subsidy allotted under the AEAS program. LAS/HND Trips may be moved to SFO or LAX, SFO trips may be moved to LAX and LAX Trips may be moved to SFO. LAS trips can increase up to four weekly round trips by shifting 2 flights from SFO or LAX. Service will remain constant at 24 weekly round trips.
Boutique Air will maintain at least 98% controllable flight completion. Through the past 12 months, Boutique Air has maintained 99.78% controllable completion over nearly 5,000 scheduled flight operations.
Reliability
Marketing
In order to further increase brand recognition in the community, Boutique Air will spend at least $25,000 per year in each market if it is selected for advertising & marketing to help ensure that air service for the community is a success. Service option which include SFO present the opportunity to match funds up to $50,000 per year. We will utilize a combination of radio, print, billboard, television, and internet advertising. We will offer flight vouchers and promotional ticket pricing when appropoiate.
We have worked to develop effective marketing distribution channels with a reservation system that connects to all primary Global Distribution Systems (GDSs), allowing travel agents access to our flight inventory. You will find us on Worldspan and Galileo (Travelport), Sabre, and Amadeus. In addition, we are on the major Online Travel Agencies (OTAs), including Expedia, Travelocity, Priceline, and Orbitz.
Boutique Air launched an interline agreement with United Airlines on May 1, 2017. Customers of Boutique Air will have flow-through ticketing and baggage capabilities for those flights that connect with United Airlines.
Boutique Air also has an interline agreement with American Airlines as of August 7, 2019. Passengers are also able to book through United.com and AA.com and connect with any of United or American flights.
Shortly after the bids are complete, Boutique Air will schedule meetings with airport and/or city officials.
This will allow us to answer any questions and provide additional information.
While we can’t promise we will be able to implement everyone’s suggestions, we welcome feedback from the community, as well as anyone who may have an interest in the proposed flights. What we can promise is that we will listen to your feedback, and give it the attention and consideration it deserves.
With respect and appreciation,
Shawn Simpson
CEO, Boutique Air
United Airlines and American Airlines Interline Agreements United.com example: Massena, NY to Newark, NJ AA.com example: Carlsbad, NM to Los Angeles, CA Community Input
Boutique Air EAS Proposal at Merced, CA
Option 1: 12 Weekly Round Trips to SFO
12 Weekly Round Trips to LAX
Operations PC-12
Revenue
Expenses
Total Expenses
Profit Element
Total Annual Subsidy Year 1
Total Annual Subsidy Year 2
Total Annual Subsidy Year 3
Total Annual Subsidy Year 4
Scheduled Flights 2,496
MCE-SFO 624
SFO-MCE 624
MCE-LAX 624
LAX-MCE 624
Scheduled Flight Hours 1,944
Scheduled Block Hours 2,464
Scheduled Seats 22,464
Scheduled ASM 454,085
Passengers 17,522
Fare $49
Fare Revenue $858,578
Direct Operating Expenses $3,752,179
Indirect Operating Expenses $1,520,064
Airport Facilities $935,376
Ownership $1,190,000
Marketing - $50,000 provided by SFO $125,000
$7,472,619
Margin (5.0%) $373,631
$6,987,672
$7,337,056
$8,070,761
$8,474,299
Boutique Air reserves the right to shift flights between SFO and LAX as required to meet passenger demand. Each hub willl receive 6 weekly round trips at a minimum.
1.05 Boutique Air EAS Proposal at Merced, CA
Option 2: 24 Weekly Round Trips to SFO
Operations PC-12
Revenue
Expenses
Total Expenses
Profit Element
Total Annual Subsidy Year 1
Total Annual Subsidy Year 2
Total Annual Subsidy Year 3
Total Annual Subsidy Year 4
Scheduled Flights 2,496
MCE-SFO 1248
SFO-MCE 1248
Scheduled Flight Hours 1,202
Scheduled Block Hours 1,722
Scheduled Seats 22,464
Scheduled ASM 261,045
Passengers 17,971
Fare $39
Fare Revenue $700,869
Direct Operating Expenses $2,599,290
Indirect Operating Expenses $1,020,864
Airport Facilities $1,184,352
Ownership $952,000
Marketing - $50,000 provided by SFO $100,000
$5,806,506
Margin (5.0%) $290,325
$5,395,963
$5,665,761
$6,515,625
$6,841,406
1.05 Boutique Air EAS Proposal at Merced, CA
Option 3: 24 Weekly Round Trips to LAX
Operations PC-12
Revenue
Expenses
Total Expenses
Profit Element
Total Annual Subsidy Year 1
Total Annual Subsidy Year 2
Total Annual Subsidy Year 3
Total Annual Subsidy Year 4
Scheduled Flights 2,496
MCE-LAX 1248
LAX-MCE 1248
Scheduled Flight Hours 2,686
Scheduled Block Hours 3,206
Scheduled Seats 22,464
Scheduled ASM 647,124
Passengers 18,196
Fare $59
Fare Revenue $1,073,564
Direct Operating Expenses $4,667,572
Indirect Operating Expenses $1,145,664
Airport Facilities $436,800
Ownership $1,190,000
Marketing $50,000
$7,490,036
Margin (5.0%) $374,502
$6,790,974
$7,130,523
$7,487,049
$7,861,401
1.05 Boutique Air EAS Proposal at Merced, CA
Option 4: 12 Weekly Round Trips to LAX
12 Weekly Round Trips to LAS
Operations PC-12
Revenue
Expenses
Total Expenses
Profit Element
Total Annual Subsidy Year 1
Total Annual Subsidy Year 2
Total Annual Subsidy Year 3
Total Annual Subsidy Year 4
Scheduled Flights 2496
MCE-LAX 624
LAX-MCE 624
MCE-LAS 624
LAS-MCE 624
Scheduled Flight Hours 2,912
Scheduled Block Hours 3,432
Scheduled Seats 22,464
Scheduled ASM 708,304
Passengers 20,015
Fare $59
Fare Revenue $1,180,885
Direct Operating Expenses $5,001,452
Indirect Operating Expenses $1,594,944
Airport Facilities $872,976
Ownership $1,190,000
Marketing $75,000
$8,734,372
Margin (5.0%) $436,719
$7,990,205
$8,389,715
$8,809,201
$9,249,661
Boutique Air reserves the right to shift flights between LAX and LAS as required to meet passenger demand. Each hub willl receive 6 weekly round trips at a minimum.
1.05 Option 5: 24 Weekly Round Trips
0-24 Weekly Round Trips to LAX*
0-24 Weekly Round Trips to SFO*
0-4 Weekly Round Trips to LAS*
Operations SFO LAX LAS/HND
Revenue
Expenses
Total Expenses
Profit Element
Total Subsidy Required Year 1
Total Subsidy Required Year 2
Total Subsidy Required Year 3
Total Subsidy Required Year 4
Scheduled Flights 1,040 1,248 208
From MCE 520 624 104
To MCE 520 624 104
Scheduled Flight Hours 501 1,569 262
Scheduled Block Hours 717 1,829 305
Scheduled Seats 9,360 11,232 1,872
Scheduled ASM 108,769 384,742 64,124
Passengers 7,956 9,772 1,685
Fare $39 $59 $59
Fare Revenue $310,284 $576,548 $99,415
Direct Operating Expenses $1,083,034$2,746,094 $449,842 Indirect Operating Expenses $622,960 $760,032 $147,472
Airport Facilities $524,680 $392,496 $63,336
Ownership $357,000 $595,000 $238,000
Marketing - $25,000 Provided by SFO$25,000 $20,000 $5,000 $2,562,674$4,513,622 $903,650
Margin (5.0%) $128,134 $225,681 $45,183
$7,392,696
$7,762,331
$8,150,448
$8,557,970
*Contingent upon Merced being approved by DOT for admission into the Alternate Essential Service Program. Boutique Air will work with the community to establish a schedule which more succinctly meets the travelling needs of the flying public.
*Flights to Las Vegas/Henderson default to 2 Weekly Round Trips. 2 additional flights may be moved from SFO or LAX to LAS/HND. All flights to LAS/HND may be moved to SFO or LAX. Flights to SFO may be moved to LAX and flights from LAX may be moved to SFO.