-From:

-·· Sent:

To: Cc:
Subject:

All: 

## .-**~·**

## ...**·~·~;'·,.J~~;FJ()\:~Tl~,T\Ql\1** 

## . i**,-~,_:·c:,\: r:··~PEHt·JIO;\,!~)**  Swanson, Bnan (OST)**'.···~** ;;,,**~-··'** -· 1
· -- · Friday, August 17, 2012 2:35 PM 

### \l l:**Q~nsaari@q.com;** 'airport@cityofclovis.org'; Robert L. Scavron 

## ;;ell ·· (Scavlaw@comcast.net); 'scmayor@msn.com' 'Lucero, Jane, NMDOT' (Jane.Lucero@state.nm.us); Chuck Howell (chowell@flygreatlakes.com); Tim Sieber [tsieber@seaportair.com] (tsieber@seaportair.com); Devany, Dennis <OST> (Dennis.DeVany@dot.gov) Soliciting Comments on EAS Proposals at Clovis and Silver City/Hurley/Deming, New Mexico- DUE September 10, 2012

I would like to update you onthe Essential Air Service (EAS) situation at Clovis and Silver City/Hurley/Deming (Silver City), New Mexico, and give you an opportunity to submit comments ifyou wish.
In response to GreatLakes' notice ofits intention to terminate scheduled air service at both communities, effective September 3, 2012, the Department issued Order 2012-7-20, July 17,2012, prohibiting-Great Lakes from suspending service at the two communities and requesting proposals from carriers interested in providing EAS at either orboth communities for a new contract period, with or without subsidy. In response to that Order, we received proposals from two carriers. Great Lakes submitted stand-alone proposals for service at each community. SeaPortAirlines, Inc. (SeaPort) submitted inseparable packagebids (serving both communities together) which included the use oftwo different 9-seat aircraft types (either Cessna Caravan orPiper Chieftains). Copies ofthe proposals may also be accessed online through the Federal Docket Management System at: http://www.rcgulations.gov, bytyping "DOT-OST-1996-1902" (Clovis) or "DOT-OST-1996-1903" (Silver City) in the "SEARCHfor: Rules, Comments, Adjudications or Supporting Documents:" field. Hyperlinks have been provided for your convenience; however, each carrier's proposal is briefly summarized below. Great Lakes would utilize 19-passenger Beech 1900D aircraft, its code-share agreements with United and Frontier Airlines at DenverInternational Airport (DEN) and other interline and baggage agreements with the majority ofcarriers at Phoenix SkyHarbor International Airport (PHX), as summarized in the table below. Hub(s) Served/ Daily Annual Community Subsidy "' Service Pattern Round Trips Requirement Clovis DEN 2 $1,954,490 (12 weekly) Silver City/Hurley/Deming DENorPHX 2

. $2,098,460 (12 weekly)
As mentioned above, SeaPort submittedproposals with two different 9-seat aircraft types, and each is an inseparable package. The carrier proposed to provide 18 nonstop round trips a weekbetween each community and the Albuquerque International Sunport (ABQ). The carrier also states that it would offer

1a four-year contract term option at no increase in annual subsidies from the second year rate identifjed in table below. Community Year1 Year2

/ Cessna Caravan Piper Chieftain Cessna Caravan Piper Chieftain : •. Clovis ' $2,160,518 $2,232,336 $2,268,544 $2,349,058 SilverCity/ · $1,893,414 $1,943,316 $1,988,085 $2,044,643 Hurley/Deming PackageTotal $4,053,932 $4,175,653 $4,256,629 $4,393,702
,•,.;•' Please notethat the average passengerfares shown in,each proposal do not necessarily reflect the average local fare passengers would actually pay, but, rather, reflect a prorated portion ofthe total ticket price (e.g., the Silver City- Denverportion ofa Silver City- Denver- Washington D.C. ticket) that the subsidized carrier would realize. Also, the fare shown is net ofcertain charges such as Federal transportation securityfees, excise orticket taxes, and PassengerFacility Charges. Ofcourse, carriers have the discretionto charge fares they deem appropriate, and the passenger fares presented intheir proposals havebeen developed for subsidyr'ate computationpurposes only. Based onthe cost elements incorporated in the carriers' computation summaries, the carriers wouldhave to realize passenger fares comparable to the averages shown in theirproposals in order to achieve break-even orprofitable operations without subsidy.
You should also note that the carriers' schedules may changeto reflect changing conditions (e.g., to better nieet shifting connectingbatiklimes at the hub). 1'heDepartment does expect subsidized air carriers to maintain well-timed and well-spaced flights in order to ensure full compensation.
We request that you submit any comments you mayhave as soon as possible, but in any case no later than September 10, 2012. Please send your comments by fax to 202-366-7638 orby email to both dennis.devany@dot.gov and brian.swanson@dot.gov. Ourrules require that you send your comments to both applicants as well. Ifyou have any questions, orneed more time to reply, please feel free to contact Brian Swanson ofmy staffat 202-366-5392. Sincerely,

Dennis 

### J. DeVany Chief, Essential Air Service Division, X-53 Office ofAviation Analysis

2