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From: Swanson, Brian (OST) 

Sent: Thursday, October 07, 2010 12:13 PM 

To: 'dickinsonairport@ndsupernet.com'; 'dennis.johnson@tmisystems.com'; 'belfields@nd.gov'; 

'ndaero@nd.gov' -f ; dX; 

Cc: Devany, Dennis (OST) ,:-j .--^sli^y 

Subject: Email soliciting comments at Dickinson, ND '"' ;;;''tg33 

Attachments: GLA-Dickinson2010.pdf '^ '-T5O ^ 

All: ^ poo 

I would like to update you on the Essential Air Service (EAS) situation at Dickinson and give -you an 

opportunity to submit comments if you wish. 

In anticipation of the end of Great Lakes' current contract on January 31, 2011, the Department issued 

Order 2010-9-8 on September 7, 2010, to solicit proposals from all interested air carriers to provide EAS at 

Dickinson, for a new two-year term, beginning February 1, 2011. In response to that order, Great Lakes, the 

incumbent, was the only carrier to submit a proposal. 

Under the existing contract, Great Lakes, operating as a Frontier and United Airlines code-share partner, was to provide 

18 nonstop round trips to Denver a week with allowable upline service to Williston, North Dakota, utilizing 30-seat 

Embraer Brasilia aircraft for an annual subsidy rate of $2,274,177. For the next, two-year period. Great Lakes has 

proposed to continue provide the same level of service (inclusive of maintaining authority to provide upline service to a 

point of its choice) for an annual subsidy rate of $2,019,027. We are currently reviewing Great Lakes' annual 

compensation requirement. A copy Great Lakes' proposal is attached and may also be accessed online through the 

Federal Docket Management System (FDMS) at: http://www.regulations.gov/ by doing a simple search on Docket 

Number DOT-OST-1995-697. 

Please note that the average passenger fare shown its proposal does not necessarily reflect the average local fare 

passengers would actually pay, but, rather, reflect a prorated portion of the total ticket price (e.g., the Dickinson 

- Denver portion of a Dickinson - Denver - Washington D.C. ticket) that the subsidized carrier would realize. 

Also, the fare shown is net of certain charges such as Federal transportation security fees, excise or ticket taxes, 

and Passenger Facility Charges. Of course, carriers have the discretion to charge fares they deem appropriate, 

and the passenger fare presented in the proposal has been developed for subsidy rate computation purposes 

only. Based on the cost elements incorporated in the carrier's computation summary, the carrier would have to 

realize passenger fares comparable to the averages shown in their proposals in order to achieve break-even or 

profitable operations without subsidy. 

You should also note that the carriers' schedules may change to reflect changing conditions (e.g., to better meet 

shifting connecting bank times at the hub). The Department 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 may have as soon as possible, but in any case no later than 

October 28, 2010. Please send your comments by fax to 202-366-7638 or by email to both 

dennis.devanv@dot.gov and brian.swanson@dot.gov. Our rules require that you send your comments to Great 

Lakes as well. If you have any questions, or need more time to reply, please feel free to contact Brian Swanson 

of my staff at 202-366-5392. 

Sincerely, 
Dennis J. DeVany 

Chief, Essential Air Service Division, X-53 

Office of Aviation Analysis