Order: 2014-7-10 

Served: July 14, 2014 

 UNITED STATES OF AMERICA 

 DEPARTMENT OF TRANSPORTATION 

 OFFICE OF THE SECRETARY 

 WASHINGTON, D.C. 

Issued by the Department of Transportation 

on the 14th day of July, 2014 

ORDER SELECTING CARRIER

Summary 

By this Order, the Department is re-selecting Great Lakes Aviation, Ltd. (Great Lakes), to 

provide Essential Air Service (EAS) at Huron, South Dakota, using Beech 1900D aircraft1

to Minneapolis/St. Paul, Minnesota (Minneapolis), or Denver, Colorado (Denver), for 12 

round trips per week to Minneapolis or Denver for the two-year period from October 1, 

2014, through September 30, 2016, for an annual subsidy of $2,552,000.2 See Appendix A 

for a map.

Background 

By Order 2012-8-22 (August 20, 2012), the Department selected Great Lakes, to provide 

EAS at Huron, for an annual subsidy of $1,929,349, for the period from October 1, 2012 

through September 30, 2014. 

As the end of the contract was approaching, we issued Order 2014-3-16 (March 28, 2014) 

requesting proposals from air carriers interested in providing EAS at the communities for a 

 

1

 Many Great Lakes Beech 1900D aircraft have been reconfigured to 9 seats from 19 seats. Great Lakes 

states it will return to 19 seats when restricted Air Transport Pilot certificates have been issued to crew. 

2

 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of funds. 

Essential Air Service at 

HURON, SOUTH DAKOTA 

Under 49 U.S.C. 41731 et seq. 

DOCKET DOT-OST-2000-7138 
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new term beginning October 1, 2014. In response to that Order, we received proposals 

from Great Lakes and Boutique Air (Boutique). 

Proposal of Great Lakes 

Great Lakes submitted a proposal for Huron for a two-year term with service to 

Minneapolis or Denver. Their proposal consists of using 19-seat, Beech 1900D aircraft 

reconfigured for 9 seats, for 12 weekly round trips to Minneapolis or Denver, at an annual 

subsidy rate of $2,552,000. 

It is expected that the re-installation of the additional 10 seats, allowing for utilization of 

all 19 seats, will occur as soon as pilot experience allows for the issuance of restricted Air 

Transport Pilot (ATP) certificates. 

Proposal of Boutique Air 

Boutique submitted a proposal for Huron for a two-year term, with service to Minneapolis. 

Their proposal consists of utilizing 9-seat, single-engine, Pilatus PC-12 aircraft, for 12 

weekly round trips, at an annual subsidy rate of $2,339,640. 

Community Comments 

On April 29, 2014, the Department solicited comments from the community regarding this 

air carrier selection case. We received a letter from Paul Aylward, Mayor of Huron, 

supporting Great Lakes’ proposal. Among the reasons the community supports Great 

Lakes, even though Huron experienced high cancellation rates, are the interline baggage 

and ticketing agreements they have in place with Delta Air Lines, Frontier Airlines, and 

United Airlines. The community understands the problems with Great Lakes, as well as 

other carriers related to the “1500 Hour Rule” and the community expects these problems 

will lessen, thus improving Great Lakes’ reliability. The community stated Boutique’s 

proposal is attractive but its lack of interline or code share agreements, and no gate 

availability at Minneapolis, were deciding factors. 

Decision 

Regarding Boutique Air’s proposal, the community did not waive its right to twin-engine 

aircraft, so the Department will not consider Boutique further.3

Since the community supports Great Lakes to provide air service to Huron, and the 

Department finds the service and subsidy levels to be reasonable, we will select Great 

Lakes to provide EAS at Huron for a new, two-year term. 

We make this selection of Great Lakes at Huron contingent upon the Department’s 

receiving properly executed certifications from the air carrier that it is in compliance with 

 

3

 Basic Essential Air Service shall include at least the following per 49 U.S.C. § 41731 (b)(5) Service 

provided in aircraft with at least 2 engines and using 2 pilots, unless scheduled air transportation has not been 

provided to the place in aircraft with at least 2 engines and using 2 pilots for at least 60 consecutive operating 

days at any time since October 31, 1978. 
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the Department’s regulations regarding drug-free workplaces and nondiscrimination, as 

well as the regulations concerning lobbying activities.4

Carrier Fitness

49 U.S.C. §§ 41737(b) and 41738 require that we find an air carrier fit, willing, and able to 

provide reliable service before we may subsidize it to provide EAS. Great Lakes is subject 

to the Department’s continuing fitness requirements, and no information has come to our 

attention that would cause us to question the air carrier’s fitness at this time. We have 

contacted the Federal Aviation Administration, and it has raised no concerns that would 

negatively affect our fitness findings. We therefore conclude that Great Lakes is reliable 

and fit to conduct the operations proposed here. 

This Order is issued under authority delegated in 49 CFR Part 1.25a(b). 

ACCORDINGLY, 

1. We select Great Lakes Aviation, Ltd. to provide Essential Air Service at Huron, South 

Dakota and establish the annual subsidy rate as described in Appendix C; 

2. We direct Great Lakes Aviation, Ltd. to retain all books, records, and other source and 

summary documentation to support claims for payment, and to preserve and maintain such 

documentation in a manner that readily permits its audit and examination by 

representatives of the Department. Such documentation shall be retained for seven years 

from the service date of this Order or until the Department indicates that the records may 

be destroyed, whichever comes first. Copies of flight logs for aircraft sold or disposed of 

must be retained. The carrier may forfeit its compensation for any claim that is not 

supported under the terms of this Order; 

3. We find that Great Lakes Aviation, Ltd. is fit, willing and able to operate as a commuter 

air carrier, and capable of providing reliable Essential Air Service at Huron; 

4. This docket will remain open pending further Department action; and 

 

 

4

 The certifications are available online under “Reports and Publications” at 

http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/essential-air-service
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5. The Department will serve a copy of this Order on the Mayor of Huron, South Dakota, 

the airport manager of Huron Regional Airport, Great Lakes Aviation, Ltd, and Boutique 

Air. 

By: 

SUSAN L. KURLAND

Assistant Secretary for 

Aviation and International Affairs 

(SEAL) 

An electronic version of this document is available at 

http://www.regulations.gov
Appendix A 

AREA MAP 

Maps generated by the Great Circle Mapper - copyright © Karl L. Swartz.
Appendix B 

 Great Lakes Proposal for EAS at Huron 
Appendix C 

Great Lakes Aviation, Ltd. 

Essential Air Service to be provided at Huron, South Dakota 

Docket DOT-OST-2000-7138 

Effective Period: October 1, 2014, through September 30, 2016 

Scheduled Service: 12 weekly round trips to Minneapolis (MSP) or Denver (DEN); upline 

service permitted 

Aircraft: 19-seat Beech 1900D1

Rate per Eligible Flight: $2,0802

Weekly Ceiling: $49,9203 

Note: The carrier understands that it may forfeit its compensation for any flights that it does not operate in conformance 

with the terms and stipulations of the rate Order, including the service plans outlined in the Order and any other significant 

elements of the required service, without prior approval. The carrier understands that an aircraft take-off and landing at its

scheduled destination constitutes a completed flight; absent an explanation supporting subsidy eligibility for a flight that 

has not been completed, such as certain weather cancellations, only completed flights are considered eligible for subsidy. 

In addition, if the carrier does not schedule or operate its flights in full conformance with the Order for a significant period, 

it may jeopardize its entire subsidy claim for the period in question. If the carrier contemplates any such changes beyond 

the scope of the Order during the applicable period of this rate, it must first notify the Office of Aviation Analysis in 

writing and receive written approval from the Department to be ensured of full compensation. Should circumstances 

warrant, the Department may locate and select a replacement carrier to provide service on these routes. The carrier must 

complete all flights that can be safely operated; flights that overfly points for lack of traffic will not be compensated. In 

determining whether subsidy payment for a deviating flight should be adjusted or disallowed, the Department will consider 

the extent to which the goals of the program are met and the extent of access to the national air transportation system 

provided to the community. 

If the Department unilaterally, either partially or completely, terminates or reduces payments for service or changes 

service requirements at a specific location provided for under this Order, then, at the end of the period for which the 

department does make payments in the stipulated service levels, the carrier may cease to provide service to that 

specific location without regards to any requirement for notice of such cessation. Those adjustments in the levels of 

subsidy and/or service that are mutually agreed to in writing by the Department and carrier do not constitute a total 

or partial reduction or cessation of payment. 

Subsidy contract are subject to, and incorporate by reference, relevant statutes and Department regulations, as they may be 

amended from time to time. However, any such statutes, regulations, or amendments thereto shall not operate to controvert 

the foregoing paragraph. 

Funds may not be available for performance under this order beyond September 30, 2014. The Government’s obligation for 

performance under this order beyond September 30, 2014, is subject to the availability of funds from which payment for 

services can be made. No legal liability on the part of the Government for any payment may arise for performance under this 

order beyond September 30, 2014, until funds are made available to the Department for performance. If sufficient funds are 

not made available for performance beyond September 30, 2014, the Department will provide notice in writing to the carrier. 

All claims for payment, including any amended claims, must be submitted within 90 days of the last day of the 

month for which compensation is being claimed. For example, claims for service provided in July must be filed by 

October 31; August claims must be submitted by November 30, and so on. 

 

1

 Many Great Lakes Beech 1900D aircraft have been reconfigured to 9 seats from 19 seats. Great Lakes states it 

will return to 19 seats when restricted ATPs have been issued to crew. 

2

 Annual compensation of $2,552,000 divided by the 1,227 annual departures (4 flights per day x 313 days x 98 

percent completion). 

3

 24 arrivals and departures per week multiplied by $2,080 per flight.