## Order 2011

- 9

- 5 Served: September 13 , 2011 

## UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on the 13 th 

## day of September, 2011 Ninety

- day Notice of Mesaba A viation , Inc., Pinnacle Airlines, Inc., and SkyWest Airlines, Inc., to terminate service at:

Muscle Shoals/Florence/Sheffield/

Tuscumbia, Alabama Fort Dodge, Iowa Mason City, Iowa Sioux City, Iowa Waterloo, Iowa Alpena, Michigan Escanaba, Michigan Iron Mountain/Kingsford, Michigan Pellston, Michigan Sault Ste. Marie, Michigan Bemidji, Minnesota Brainerd, Minnesota Chisholm/Hibbing, Minnesota International Falls, Minnesota Thief River Falls, Minnesota Greenville, Mississippi Laurel/Hattiesburg, Mississippi Tupelo, Mississippi Butte, Montana Devils Lake, North Dakota Jamestown, North Dakota Aberdeen, South Dakota Pierre, South Dakota, and Watertown, South Dakota

under 49 U.S.C. 41731 et seq

. Docket DOT

- OST

- 2000

- 7856 Docket DOT

- OST

- 2001

- 10682 Docket DOT

- OST

- 2001

- 10684 Docket DOT

- OST

- 2011

- 0131 Docket DOT

- OST

- 2011

- 0132 Docket DOT

- OST

- 2009

- 0300 Docket DOT

- OST

- 2003

- 15128 Docket DOT

- OST

- 1999

- 5175 Docket DOT

- OST

- 2011

- 0133 Docket DOT

- OST

- 2009

- 0303 Docket DOT

- OST

- 2011

- 0134 Docket DOT

- OST

- 2011

- 0135 Docket DOT

- OST

- 2003

- 15796 Docket DOT

- OST

- 2009

- 0304 Docket DOT

- OST

- 2001

- 10642 Docket DOT

- OST

- 2008

- 0209 Docket DOT

- OST

- 2001

- 10685 Docket DOT

- OST

- 2009

- 0305 Docket DOT

- OST

- 2011

- 0136 Docket DO T

- OST

- 1997

- 2785 Docket DOT

- OST

- 1997

- 2785 Docket DOT

- OST

- 2011

- 0137 Docket DOT

- OST

- 2011

- 0138 Docket DOT

- OST

- 2001

- 10644

ORDER PROHIBITING SUSPENSION OF SERVICE AND REQUESTING PROPOSALS

## - 2

-

Summary By this order, the Department prohibit s SkyWest Airlines, Inc., d/b/a Delta Connection, (SkyWest) from terminating service at Butte, Montana . At Pierre, South Dakota, we will permit the two wholly owned subsidiaries of Pinnacle Airlines Corporation

-- Mesaba Aviation, Inc. (Mesaba) and Pinnacl e Airlines (Pinnacle), d/b/a Delta Connection

-- to terminate their service at the end of the 90

- day notice period, and rely on the remaining, subsidy

- free service of Great Lakes Aviation, Inc

. We prohibit Mesaba and Pinnacle from suspending the service that they jointly provide at the 22 remaining communities for 30 days beyond the end of the 90

- day notice period, i.e., November 12. We are also requesting proposals by October 12 from carriers interested in providing replacement essential air service (EA S) at all of the communities listed below

.

Communities 3-Ltr. State Communities 3-Ltr. State 1 Aberdeen ABR South Dakota 13 Iron Mountain IMT Michigan 2 Alpena APN Michigan 14 Jamestown JMS North Dakota 3 Bemidji BJI Minnesota 15 Mason City MCW Iowa 4 Brainerd BRD Minnesota 16 Muscle Shoals MSL Alabama 5 Butte BTM Montana 17 Pellston PLN Michigan 6 Devils Lake DVL North Dakota 18 Sault St. Marie CIU Michigan 7 Escanaba ESC Michigan 19 Sioux City SUX Iowa 8 Fort Dodge FOD Iowa 20 Thief River Falls TVF Minnesota 9 Greenville GLH Mississippi 21 Tupelo TUP Mississippi 10 Hattiesburg PIB Mississippi 22 Waterloo ALO Iowa 11 Hibbing HIB Minnesota 23 Watertown ATY South Dakota 12 International Falls INL Minnesota


## Background On July 1 5 , 20 11 , SkyWest filed notice of its intent to terminate its subsidy

- free service at Butte, Montana, effective October 13, 2011. Likewise, on July 15, 2011, Mesaba and Pinnacle filed notice s to terminate their subsidy

- free service at seven communities: Aberdeen and Pierre, South Dakota; Bemidji and Brainerd, Minnesota; Sioux City and Waterloo, Iowa; and Pellston, Michigan. Mesaba and Pinnacle also filed notice to
s uspend their currently subsidized service at sixteen communities: Muscle Shoals/Florence/Sheffield/Tuscumbia (Muscle Shoals), Alabama; Fort Dodge and Mason City, Iowa; Alpena, Escanaba, Iron Mountain/Kingsford (Iron Mountain), and Sault Ste. Marie, Michiga n; Chisholm/Hibbing (Hibbing), International Falls, and Thief River Falls, Minnesota; Greenville, Laurel/Hattiesburg (Hattiesburg), and Tupelo, Mississippi; Devils Lake and Jamestown, North Dakota; and Watertown, South Dakota.
According to the carriers’ filings, the following service , all nonstop, was provided to the eight subsidy

- free communities when the carriers filed their notices:

## - 3

-

Aircraft Type, Weekly Frequency Communities Saab 340s Canadair Regional Jets Total Hub 1 Aberdeen 6 14 20 Minneapolis 2 Bemidji 13 7 20 Minneapolis 3 Brainerd 6 14 20 Minneapolis 4 Butte 0 13 13 Salt Lake City 5 Pellston 8 20 28 Detroit 6 Pierre 13 0 13 Minneapolis 7 Sioux City 0 19 19 Minneapolis 8 Waterloo 13 7 20 Minneapolis 

## At the remaining 16 communities, subsidized service i s as follows:

1


### Subsidized Service at the Sixteen Communities Currently Subsidized, Saab 340 Equipment Annual Weekly Communities Thru Order Subsidy Hub Stops Frequency 1. Alpena 5/31/2012 2010-5-18 $1,532,660 DTW 0 13 2. Devils Lake 9/30/2011 2009-8-6 $1,459,493 MSP 1 14 3. Escanaba 8/31/2012 2010-6-4 $2,090,534 MSP/DTW 1 21 4. Fort Dodge 10/31/2011 2011-6-7 $1,910,995 MSP 0 14 5. Greenville 9/30/2011 2010-7-12 $1,606,662 MEM 0 14 6. Hattiesburg 6/30/2012 2010-5-16 $1,398,798 MEM 0 14 7. Hibbing 10/31/2011 2009-8-8 $2,938,878 MSP 0 19 8. International Falls 5/31/2012 2010-5-18 $1,309,886 MSP 0 14 9. Iron Mountain 8/31/2012 2010-6-4 $2,090,534 MSP/DTW 1 21 10. Jamestown 9/30/2011 2009-8-6 $1,963,220 MSP 1 14 11. Mason City 10/31/2011 2011-6-7 $1,017,545 MSP 0 14 12. Muscle Shoals UFN 1 

### 2011-1-24 $1,782,928 MEM 0 14 13. Sault St. Marie 5/31/2012 2010-5-18 $237,825 DTW 0 14 14. Thief River Falls 10/31/2011 2010-12-9 $1,230,322 MSP 1 12 15. Tupelo 5/31/2012 2010-5-18 $921,878 MEM 0 15 16. Watertown 10/31/2011 2011-6-6 $1,769,019 MSP 0 14 

## Objections Pierre objected to the termination notices on July 31, and Aberdeen and Thief River Falls on August 4, 2011. Pierre indicates that its eastbound service to Minneapolis is a critical eastbound link to the national transportation system, just as its service from Pierre to Denver satisfies the community’s need for westbound service, as discussed in Order 2002

- 3

- 22. In that order, the Department noted that Pierre is the capital of South Dakota and is 385 and 350 miles from Denver and Min n eapolis, respectively. Pierre is also concerned that the current service to Denver provided by Great Lakes does not satisfy its EA S guarantee , and , with only connecting service to Denver, Pierre

Minneapolis passengers would have to fly 1,065 miles instead of 350 to arrive at Minneapolis. “Flights from Pierre to Minneapolis averaged 15.8 passengers per departure for the 12 months end ing April 2011, or 30.0 passengers per day. This level of

1 

### UFN stands for “until further notice,” i.e., the rate does not have a pre

- set termination point.

## - 4

-
demand demonstrates the need for nonstop service without upline or downline points that would further limit seats available to support the Pierre market.”
The City of Aberdeen requests that the De partment prohibit Mesaba and/or Pinnacle from terminating service, and suggests that replacement service consisting of three round trips per day seven days per week would be reasonable because of the large volume of passengers generated by Aberdeen. Servi ce should be to Minneapolis, the nearest large hub

. We also received objections from “Absolutely Aberdeen,” an economic development organization. The objector requested that the Department hold the carrier in, request proposals, and review the fitness of any applicant. The objector noted that Aberdeen is expanding economically. Also, three round trips per day is the appropriate level of service, except for seasonal increases during pheasant

- hunting season.
Thief River Falls objects that its enplanements would be higher if Delta were employing better equipment, such as the CRJ

- 200 rather than the inferior Saab 340 aircraft it has been operating. The community is concerned that the one

- stop service it receives over Hibbing dis courages passengers from using the local airport because of the inconvenience and because of the seat preemption at Hibbing. The community also states that passenger fares are higher at Thief River Falls than from nearby non

- subsidized communities, so tha t passengers are driving to those airports.

Hold

- In Mesaba ’s , Pinnacle ’s , and SkyWest’s proposed termination s of service at these communities , with the exception of Pierre, would leave them with no scheduled air service at all . Thus, the Department mus t prohibit the carrier s from terminating such service at the end of their 90

- day notice periods, i.e., October 13 , 2011 . At the subsidy

- free communities, we will require Mesaba and/or Pinnacle to provide 14 nonstop round trips per week at Aberdeen, Bemidj i, Brainerd, Pellston, Sioux City, and Waterloo, and SkyWest to provide 13 nonstop round trips per week at Butte. At the sixteen subsidized communities, we will require Mesaba and/or Pinnacle to continue providing the level of service specified in the res pective carrier

- selection orders, outlined above. Finally, we will require Mesaba , Pinnacle, and SkyWest to continue to maintain that level of service at all of these communities , for successive 30

- day periods until we have completed processing the carrier

- replacement case and the selected carrier has actually started service.
At Pierre, we will not require Mesaba /Pinnacle to continue their service to Minneapolis /St. Paul International Airport beyond October 13, the end of their 90

- day notice period

. Instead, we will rely on the subsidy

- free service to Denver provided by Great Lakes Aviation, Inc. The EAS program is designed to be a safety

- net program that ensures that communities receive at least two round trips a day to a large or medium hub airp ort. Great Lakes’ nonstop service to Denver provides the community’s needs with excellent connections to the national air transportation system. Denver has significant service by three major carriers

– United, Frontier, and Southwest

– providing excellent con nections to

## - 5

-
the national transportation system. 2 

## We note that Great Lakes must continue to provide at least the minimum statutory service levels and is subject to the 90

- day notice requirements. Also, while Mesaba’s direct service to Minneapolis will be lost, local Minneapolis passengers make up only a small portion of the total passengers at Pierre. 3 

## While not determinative, another airline might be willing to fill the service void to Minneapolis, and we encourage the community to work with all potenti al replacement carriers in that effort.
At the other communities, Aberdeen and Thief River Falls, we acknowledge the parties ’ objections and will prohibit Mesaba/Pinnacle from terminating service, request proposals, and pursue a carrier

- selection decision consistent with our rules while keeping all of the se communities fully informed.
Request for Proposals Carriers intereste d in filing proposals for any of these 23 communities

-- with or without subsidy

-- should e

- mail them to our staff at EAS@dot.gov , no later than October 12 , 2011

. Our staff will then docket the proposals, thereby making t hem public, and direct each carrier to serve a copy of its proposal on the civic parties and other applicants. Shortly afterwards, we will provide a summary of the proposals to the community officials and ask them to submit their final comments. We will give full consideration to all proposals filed in a timely manner. 4


## Interested carriers should prepare their proposals with every expectation that their initial proposals will also be their final and only proposals. We retain the discretion to negotiat e proposals with carriers when we deem it desirable. In such cases, of course, we will give all applicants the same opportunity. We also retain the discretion to reject outright all unreasonable or unrealistic proposals and solicit a new round of proposa ls.
We are here providing interested carriers with some basic information to serve as guidance when they prepare their proposals, but we will not prescribe a precise format for their proposals. We expect proposals to adequately describe the service bei ng proposed and the annual amount of subsidy being requested. The applicants can make their own judgments as to the level of detail they wish to present; however, they might want to include proposed schedules and routings as well as supporting data for th eir subsidy requests, such as projected block hours, revenues and expenses. We strongly encourage

2 

### From CY 2002 to CY 2010 departures at Denver have increased by 55%, from 195,341 to 302,217, while seats have increased by 30%, from 24,507,205 to 31,817,137. Minneapolis has slightly declined, with departures decreasing 4 percent, from 205,921 to 197,15 9, and seats decreasing by 12 percent, from 22,797,844 to 19,963,632. 3 

### Of total domestic traffic at Pierre for CY 2010, service to the states closest to Minneapolis and therefore requiring the biggest percentage backhaul from Denver

-- Iowa, Minnesota, Nor th Dakota, and Wisconsin

– made up only 12 percent of total passengers. 4 

### Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide EAS without subsidy and we determine that service can be provided re liably without such compensation, we do not proceed with the carrier

- selection case. Instead, we simply rely on that carrier’s subsidy

- free service as proposed.

## - 6

-

clear, well

- documented proposals that will facilitate their evaluation by the affected community and the Department. 5


## We are requesting service proposals for Aberdeen, Bemidji, Brainerd, Butte, Pellston, Sioux City, and Waterloo

-- the seven communities that until now have been served on a subsidy

- free basis

-- at the maximum service level s we are allowed to subsidize, i.e. two nonstop round trips per day ( 1 2

- 14 a week) at each community if 34

- seat or larger equipment is pro posed; three nonstop round trips a day (18 a week) with 30

- seat aircraft; three or four round trips per day ( 18

- 24 a week) with 19

- seat aircraft ; and more frequencies with smaller aircraf t . We may subsidize additional frequencies if the affected community is served in conjunction with another community. Service should be to a medium or large hub

. 6 

## Carriers may consider providing more service than the maximum level due to seasonal peaking, provided that the annual level of service does not exceed the program ceiling.
At Thief River Falls, the lowest traffic

- generating community , we request propo sals having two nonstop or one

- stop r ound trips per day with a 19

- seat aircraft (1 2 per week)

. We would expect more frequenc ies with smaller aircraft. We note that Mesaba has provided Thief River Falls with two one

- stop round trips per day to Minneapolis over Hibbing with 34

- seat Saab 340s. For Thief River Falls, as for all essential air service communities outside of Alaska, two round trips per day is the statutory minimum frequency.
At the remaining communities, we are requesting two nonstop round trips per day (12

- 14 a week) at each community if 3 0

- seat or larger equipment is pro posed; two or three round trips per day (12

- 18 a week) with 19

- seat aircraft ; and more frequencies with smaller aircraft . We may subsidize additional frequencies if the affected community is served in conjunction with another community. Service should be to a medium or large hub.
We have summarized these requested service levels in chart form in Appendix C.

As we have stated, we would consider subsidiz ing additional frequencies at a ny community if the service were linked with another community. Of course, we would look for reduced frequency for service with larger aircraft than that discussed above , subject to the two round trips per day statutory minimum

.

5 

### In selecting a carrier to provide subsidized EAS , 49 U.S.C. 41733(c)(1) directs us to consid er four factors. (1) service reliability; (2) contractual and marketing arrangements with a larger carrier at the hub; (3) interline arrangements with a larger carrier at the hub; and (4) community views. In addition , The Consolidated Appropriations Act, 2008, Public Law 110

- 161, provides that when selecting a carrier to provide EAS, the Department may consider the relative subsidy requirements, thus codifying a factor that we have considered since the inception of the program. Interested carriers should also be aware that our general provisions governing EAS will be included in the selection order as part of our authorization of subsidy for the selected service. Appendix C of this order contains those general provisions. 6 

### 49 U.S.C. § 41732 requires se rvice to a large or medium hub except that service to small hubs can be relied on when the nearest large or medium hub is more than 400 miles from an eligible place. The nearest large or medium hubs for Butte and for Devils Lake are more than 400 miles di stant.

## - 7

-
As always, staff will work with the carrier s to ensure that service and subsidy are reasonable. However, we would not dismiss any proposal out of hand without first consulting with community officials. We encoura ge any proposal that would simultaneously satisfy the community’s needs and minimize taxpayer expenditures.
Carriers are also welcome to propose more than one service option, if they choose . T hey need not limit themselves to the current service pattern if they envision other, potentially more attractive service possibilities

-- different hubs or lengths of term

-- with subsidy requirements that remain competitive.
Given that we are requestin g service at 23 communities, carriers proposing service to more than one city are advised to make clear whether the service they propose should be considered separately for each city, or as part of an all

- or

- nothing, inseparable package of two or more comm unities.

In order to assist carriers in makin g their passenger and revenue forecasts, we have included historical passenger data in Appendix B. We note that most of these communities are among the strong er traffic

- generators in the EAS program

. New Filing Procedures Carrier proposals should be submitted to the Department with all materials merged into a single document. In addition, because the document will be published on Regulations.gov, each page should be formatted to be viewed online.

Other Carrier Requirements The Department is responsible for implementing various Federal statutes governing lobbying activities, drug

- free workplaces and nondiscrimination. 7 

## Consequently, all carriers receiving Federal subsidy to support essential air service must certify that they are in compliance with Department regulations regarding drug

- free workplaces and nondiscrimination, and those carriers whose subsidies exceed $100,000 over the life of the rate term must also certify that they are in compliance with the regulations governing lobbying activities. All carriers that plan to submit proposals involving subsidy should submit the required certifications along with their proposals. Interested carriers requiring more detailed information regarding these requ irements, as well as copies of the certifications, should contact the Office of Aviation Analysis at (202) 366

- 5903. The Department is prohibited from paying subsidy to carriers that do not submit these documents. 8

7 

### The regulations applicable to these areas are: (1) 49 CFR Part 20

– New restrictions on lobbying; (2) 49 CFR Part 21

– Nondiscrimination in federally

- assisted programs of the Department of Transportation

– Effectuation of title VI of the Civil Rights Act of 1964; 49 CFR Part 27

– n ondiscrimination on the basis of disability in programs and activities receiving o r benefiting from Federal financial assistance; and 14 CFR Part 382

– Nondiscrimination on the basis of disability in air travel; and (3) 49 CFR Part 29

– Government

- wide debarment and suspension (non

- procurement) and government

wide requirements for drug

- free workplace (grants). 8 

### The certifications are also available on the web at http://ostpxweb.dot.gov/aviation/index.html.

## - 8

-
Community Comments The communities a nd the State s are welcome to submit comments on the proposals at any time. As noted earlier, we will provide a summary of the proposals to the civic parties and State s and ask them to submit their final comments shortly after October 12 , the due date for carrier proposals.
This order is issued under authority delegated in 49 CFR 1.56a(f).
ACCORDINGLY;
1. The Department requests proposals from carriers interested in providing essential air service, with subsidy if necessary, by October 12 , 2011. Proposals should include all the data required by section 204.4 of the Department’s Regulations (14 CFR 204.4). Proposals should be emailed to EAS@dot.gov and be entitled “Proposals to Provide Essential Air Service ” at ( s pecify at which of the 23 communit ie s you r proposal pertains and the corresponding docket number ( s ) ). Proposals may be for one city or for multi

- city packages , but carriers should make clear whether or not their proposals can be considered on a stand

- alon e basis

. Service should be consistent with that discussed in the body of the order and shown in Appendix C

. Questions regarding filings may be directed to Kevin Adams at 202

- 366

- 1047 or Kevin Schlemmer at 202

- 366

- 3176 ; 2. The Department prohibits Mesaba Aviation , Inc., and Pinnacle Airlines, Inc. , both wholly

owned subsidiaries of Pinnacle Airlines Corporation, d/b/a Delta Connection , from suspending the ir subsidy

- free service at Aberdeen, South Dakota; Bemidji and Brainerd, Minnesota; Pellston, Mi chigan; and Sioux City and Waterloo, Iowa; at the end of its 90

- day notice period and requires it to maintain at least 14 nonstop round trips a day with 34

- seat or larger aircraft through October 13 , 20 11 , or until a carrier capable of providing reliable e ssential air service actually begins service, whichever comes first; 9



## 3 . The Department prohibits SkyWest Airlines, Inc., d/b/a Delta Connection, from suspending service at Butte, Montana, at the end of its 90

- day notice period and requires it to maintain at least 13 nonstop round trips a day with 34

- seat or larger aircraft. The carrier must maintain this service through October 13 , 20 11 , or until a carrier capable of providing reliable essential air service actually begins service, whichever comes first; 10



## 4. At the communities currently receiving subsidized service

-- Muscle Shoals, Alabama; Fort Dodge, Mason City, Iowa; Alpena, Escanaba, Iron Mountain, and Sault Ste. Marie, Michigan; Hibbing, International Falls, and Thief River Falls, Minnesota; Greenv ille, Hattiesburg , and Tupelo, Mississippi; Devils Lake and Jamestown, North Dakota; and Watertown, South Dakota ;

-- we prohibit Mesaba Aviation , Inc., and Pinnacle Airlines, Inc. , both wholly

- owned subsidiaries of Pinnacle Airlines Corporation, d/b/a Delt a Connection , from suspending service at the end of their 90

- day notice period s and require them to continue providing service

9 

### In accordance with 49 U.S.C. 41734(c), we will extend the carriers ’ service obligation s for successive 30

- day periods as necessary until replacement service actually begins. 10 

### IBID.

## - 9

-
consistent with the level we are currently subsidizing through November 12 , 2011, or until a carrier capable of providing reliable essential air service actually begins service, whichever comes first; 11



## 5. We permit Mesaba Aviation , Inc., and Pinnacle Airlines, Inc., both wholly

- owned subsidiaries of Pinnacle Airlines Corporation, d/b/a Delta Connection, to terminate their ai r service between Pierre and Minneapolis/St. Paul, Minnesota, a t the end of the 90

- day notice period, i.e., October 13, and w e rely on the subsidy

- free air service provided by Great Lakes between Pierre, South Dakota, and Denver

. B efore they suspend their Minneapolis service we expect Mesaba and Pinnacle to notify any passengers holding reservations for travel after the suspension date, to assist those passengers in making alternate air transportation arrangements, or to provide a refund of the ticket pric e, without penalty, if requested ;

6 . The Department directs Mesaba Aviation , Inc., and Pinnacle Airlines, Inc. , both wholly

owned subsidiaries of Pinnacle Airlines Corporation, d/b/a Delta Connection, and also SkyWest Airlines, Inc., d/b/a Delta Connectio n, to retain all books, records, and other source and summary documents to support subsidy 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. Suc h documentation shall be retained for seven years 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 compensatio n for any claim that is not supported under the terms of this order;

7 . Th ese docket s will remain open until further order of the Department; and

8 . The Department will serve a copy of this order on the mayors and airport managers of Muscle Shoals/Flore nce/Sheffield/Tuscumbia, Alabama; Fort Dodge, Mason City, Sioux City, and Waterloo, Iowa; Alpena, Escanaba, Iron Mountain/Kingsford, Pellston, and Sault Ste. Marie, Michigan; Bemidji, Brainerd, Chisholm/Hibbing, International Falls, and Thief River Falls, Minnesota; Greenville, Laurel/Hattiesburg, and Tupelo, Mississippi; Butte, Montana; Devils Lake and Jamestown, North Dakota; Aberdeen, Pierre, and Watertown, South Dakota ; and on the carriers in our service list.
By:

Susan L. Kurland Assistant Secretary for Aviation and International Affairs (SEAL) An electronic version of this document is available

a t http://www.regulations.gov

11 

### IBID.

### Appendix A

- 1 Maps for 19 Communities in the Upper Midwest Noticed by Delta/Mesaba

Nonstop Miles MSP DTW ORD MKE Aberdeen, ABR 257 784 578 550 Alpena, APN 473 198 305 261 Bemidji, BJI 199 675 515 466 Brainerd, BRD 114 607 434 389 Devils Lake, DVL 351 860 684 642 Escanaba, ESC 30 4 306 261 196 Fort Dodge, FOD 168 555 325 321 Hibbing, HIB 174 587 445 390 International Falls, INL 255 656 527 470 Iron Mountain, IMT 257 344 265 199 Jamestown, JMS 299 822 632 595 Mason City, MCW 119 512 288 275 Pellston, PLN 414 243 293 238 Pierre, PIR 350 865 646 628 Sault Ste. Marie, CIU 435 284 341 284 Sioux City, SUX 233 233 436 434 Thief River Falls, TVF 261 745 583 535 Waterloo, ALO 166 463 234 231 Watertown, ATY 193 717 503 481
This map is provided by Sabre ® AirVision TM Profit Essentials and is being used with express permission of the copyright holder, Sabre Airline Solutions®.

## Appendix A

- 2
Map for Greenville (GLH), Hattiesburg (PIB), Muscle Shoals (M SL), and Tupelo (TUP), and Four Other Currently Subsidized Communities



# Great Circle Miles
Newly Noticed by Delta Greenville, GLH 122 Hattiesburg, PIB 249 Muscle Shoals, MSL 136 Tupelo, TUP 88

Currently Subsidized El Dorado, ELD 205 Harrison, HRO 198 Hot Springs, HOT 182 Jonesboro, JBR 66

This map is provided by Sabre ® AirVision TM Profit Essentials and is being used with express permission of the copyright holder, Sabre Airline Solutions®.

## Appendix A

- 3 Map for Butte, Montana (BTM)

Great Circle Miles to Butte (BTM) Helena, HLN 51 Bozeman, BZN 66 Billings, BIL 191 Boise, BOI 247 Spokane, GEG 265 Salt Lake City, SLC 358 Seattle, SEA 477 Bismarck, BIS 564 Minneapolis, MSP 938

This map is provided by Sabre ® AirVision TM Profit Essentials and is being used with express permission of the copyright holder, Sabre Airline Solutions®.Appendix B Page 1 of 12

Historical Traffic at the 24 Communities, Alphabetical Order, T-100 Market Report, Sun Country and Allegiant Excluded

Year Month Origin Dest O&D Origin Dest O&D Aberdeen, SD, (ABR) Alpena, MI (APN) 2008 6 1,965 2,158 4,123 716 720 1,436 2008 7 1,980 1,849 3,829 714 676 1,390 2008 8 1,682 1,753 3,435 639 675 1,314 2008 9 1,526 1,494 3,020 649 540 1,189 2008 10 2,345 2,511 4,856 532 553 1,085 2008 11 2,227 1,943 4,170 571 507 1,078 2008 12 2,310 2,137 4,447 522 561 1,083 2009 1 1,742 1,665 3,407 515 452 967 2009 2 1,845 1,665 3,510 493 470 963 2009 3 1,631 1,811 3,442 620 549 1,169 2009 4 1,400 1,449 2,849 443 494 937 2009 5 1,682 1,528 3,210 588 564 1,152 YE May 31, 2009 22,335 21,963 44,298 7,002 6,761 13,763

2009 6 1,699 1,909 3,608 671 707 1,378 2009 7 2,148 1,999 4,147 830 849 1,679 2009 8 1,654 1,700 3,354 918 863 1,781 2009 9 1,521 1,526 3,047 649 597 1,246 2009 10 1,955 1,946 3,901 681 658 1,339 2009 11 1,956 1,836 3,792 588 579 1,167 2009 12 1,691 1,616 3,307 532 627 1,159 2010 1 1,392 1,229 2,621 591 454 1,045 2010 2 1,294 1,219 2,513 457 462 919 2010 3 1,383 1,443 2,826 704 660 1,364 2010 4 1,458 1,463 2,921 596 674 1,270 2010 5 1,540 1,506 3,046 571 586 1,157 YE May 31, 2010 19,691 19,392 39,083 7,788 7,716 15,504

2010 6 1,558 1,653 3,211 713 759 1,472 2010 7 1,854 1,811 3,665 925 988 1,913 2010 8 1,693 1,856 3,549 1,108 962 2,070 2010 9 1,586 1,576 3,162 736 696 1,432 2010 10 2,095 2,178 4,273 789 729 1,518 2010 11 2,218 2,035 4,253 720 676 1,396 2010 12 2,016 1,858 3,874 720 804 1,524 2011 1 1,706 1,695 3,401 694 591 1,285 2011 2 1,631 1,587 3,218 687 643 1,330 2011 3 1,927 2,081 4,008 1,080 953 2,033 2011 4 1,567 1,617 3,184 824 934 1,758 2011 5 2,034 1,943 3,977 991 993 1,984 YE May 31, 2011 21,885 21,890 43,775 9,987 9,728 19,715Appendix B Page 2 of 12

Historical Traffic at the 24 Communities, Alphabetical Order, T-100 Market Report, Sun Country and Allegiant Excluded

Bemidji, MN (BJI) Brainerd, MN (BRD) 2008 6 2,040 2,382 4,422 1,793 1,915 3,708 2008 7 2,658 2,669 5,327 2,371 2,323 4,694 2008 8 2,440 2,195 4,635 2,205 1,933 4,138 2008 9 1,593 1,429 3,022 1,357 1,157 2,514 2008 10 1,502 1,412 2,914 1,183 1,071 2,254 2008 11 1,394 1,367 2,761 957 850 1,807 2008 12 1,695 1,540 3,235 968 967 1,935 2009 1 1,364 1,287 2,651 940 730 1,670 2009 2 1,383 1,267 2,650 913 803 1,716 2009 3 1,581 1,552 3,133 1,081 1,122 2,203 2009 4 1,522 1,583 3,105 903 890 1,793 2009 5 1,582 1,676 3,258 1,062 1,132 2,194 YE May 31, 2009 20,754 20,359 41,113 15,733 14,893 30,626

2009 6 2,011 2,313 4,324 1,544 1,710 3,254 2009 7 2,878 2,957 5,835 2,406 2,456 4,862 2009 8 2,803 2,377 5,180 2,348 2,060 4,408 2009 9 1,838 1,783 3,621 1,411 1,325 2,736 2009 10 1,557 1,365 2,922 1,114 1,021 2,135 2009 11 1,591 1,533 3,124 875 796 1,671 2009 12 1,673 1,648 3,321 874 894 1,768 2010 1 1,426 1,414 2,840 1,039 795 1,834 2010 2 1,402 1,222 2,624 904 831 1,735 2010 3 1,436 1,471 2,907 1,023 1,051 2,074 2010 4 1,353 1,390 2,743 875 945 1,820 2010 5 1,484 1,632 3,116 1,000 1,047 2,047 YE May 31, 2010 21,452 21,105 42,557 15,413 14,931 30,344

2010 6 1,961 2,195 4,156 1,517 1,631 3,148 2010 7 2,781 2,863 5,644 2,339 2,418 4,757 2010 8 2,813 2,507 5,320 2,470 2,182 4,652 2010 9 1,777 1,674 3,451 1,508 1,390 2,898 2010 10 1,707 1,669 3,376 1,286 1,121 2,407 2010 11 1,641 1,568 3,209 1,057 991 2,048 2010 12 1,674 1,670 3,344 904 1,001 1,905 2011 1 1,595 1,529 3,124 1,065 847 1,912 2011 2 1,564 1,454 3,018 1,022 881 1,903 2011 3 1,760 1,759 3,519 1,106 1,161 2,267 2011 4 1,573 1,750 3,323 1,033 1,110 2,143 2011 5 1,747 1,768 3,515 1,143 1,162 2,305 YE May 31, 2011 22,593 22,406 44,999 16,450 15,895 32,345Appendix B Page 3 of 12

Historical Traffic at the 24 Communities, Alphabetical Order, T-100 Market Report, Sun Country and Allegiant Excluded

Butte, MT (BTM) Chisholm/Hibbing, MN (HIB) 2008 6 2,829 2,717 5,546 765 865 1,630 2008 7 3,208 3,124 6,332 851 803 1,654 2008 8 2,582 2,510 5,092 842 879 1,721 2008 9 2,006 1,833 3,839 808 707 1,515 2008 10 2,002 1,865 3,867 680 671 1,351 2008 11 1,806 1,626 3,432 614 627 1,241 2008 12 1,820 1,755 3,575 720 735 1,455 2009 1 1,830 1,648 3,478 650 566 1,216 2009 2 1,563 1,450 3,013 652 616 1,268 2009 3 1,757 1,628 3,385 651 748 1,399 2009 4 1,811 1,658 3,469 654 690 1,344 2009 5 1,819 1,812 3,631 667 738 1,405 YE May 31, 2009 25,033 23,626 48,659 8,554 8,645 17,199

2009 6 2,384 2,165 4,549 812 962 1,774 2009 7 2,509 2,340 4,849 917 1,006 1,923 2009 8 2,457 2,240 4,697 868 780 1,648 2009 9 2,107 1,899 4,006 759 721 1,480 2009 10 2,056 1,922 3,978 722 718 1,440 2009 11 1,799 1,686 3,485 671 661 1,332 2009 12 1,908 1,836 3,744 740 764 1,504 2010 1 1,535 1,482 3,017 759 640 1,399 2010 2 1,471 1,376 2,847 838 767 1,605 2010 3 1,800 1,705 3,505 900 925 1,825 2010 4 1,761 1,797 3,558 790 853 1,643 2010 5 1,842 1,919 3,761 723 807 1,530 YE May 31, 2010 23,629 22,367 45,996 9,499 9,604 19,103

2010 6 2,272 2,397 4,669 788 868 1,656 2010 7 2,946 2,938 5,884 1,107 1,180 2,287 2010 8 2,725 2,583 5,308 1,071 945 2,016 2010 9 2,419 2,373 4,792 843 757 1,600 2010 10 2,169 2,127 4,296 824 827 1,651 2010 11 1,803 1,740 3,543 788 730 1,518 2010 12 1,960 1,917 3,877 880 921 1,801 2011 1 1,638 1,541 3,179 773 678 1,451 2011 2 1,568 1,455 3,023 878 795 1,673 2011 3 1,845 1,827 3,672 938 981 1,919 2011 4 1,748 1,763 3,511 881 942 1,823 2011 5 2,059 2,062 4,121 823 858 1,681 YE May 31, 2011 25,152 24,723 49,875 10,594 10,482 21,076Appendix B Page 4 of 12

Historical Traffic at the 24 Communities, Alphabetical Order, T-100 Market Report, Sun Country and Allegiant Excluded

Devils Lake, ND (DVL) Escanaba, MI (ESC) 2008 6 285 241 526 291 314 605 2008 7 321 411 732 520 487 1,007 2008 8 363 274 637 504 470 974 2008 9 286 254 540 369 355 724 2008 10 251 271 522 441 417 858 2008 11 242 185 427 422 357 779 2008 12 250 263 513 464 713 1,177 2009 1 249 261 510 438 294 732 2009 2 325 259 584 414 415 829 2009 3 307 319 626 611 603 1,214 2009 4 365 331 696 573 708 1,281 2009 5 262 291 553 576 596 1,172 YE May 31, 2009 3,506 3,360 6,866 5,623 5,729 11,352

2009 6 285 308 593 556 674 1,230 2009 7 405 379 784 775 760 1,535 2009 8 250 200 450 722 657 1,379 2009 9 298 216 514 517 564 1,081 2009 10 328 341 669 623 570 1,193 2009 11 353 220 573 521 552 1,073 2009 12 307 142 449 499 565 1,064 2010 1 264 194 458 580 479 1,059 2010 2 319 270 589 551 530 1,081 2010 3 401 443 844 773 823 1,596 2010 4 380 343 723 556 693 1,249 2010 5 395 425 820 566 677 1,243 YE May 31, 2010 3,985 3,481 7,466 7,239 7,544 14,783

2010 6 442 395 837 642 726 1,368 2010 7 471 534 1,005 794 713 1,507 2010 8 500 419 919 899 846 1,745 2010 9 448 416 864 954 894 1,848 2010 10 466 496 962 1,058 1,006 2,064 2010 11 463 383 846 910 929 1,839 2010 12 443 421 864 867 973 1,840 2011 1 391 419 810 872 671 1,543 2011 2 466 395 861 806 782 1,588 2011 3 514 554 1,068 1,160 1,099 2,259 2011 4 420 426 846 1,053 1,139 2,192 2011 5 418 448 866 1,033 1,096 2,129 YE May 31, 2011 5,442 5,306 10,748 11,048 10,874 21,922Appendix B Page 5 of 12

Historical Traffic at the 24 Communities, Alphabetical Order, T-100 Market Report, Sun Country and Allegiant Excluded

Fort Dodge, IA (FOD) Greenville, MS (GLH) 2008 6 555 514 1,069 522 501 1,023 2008 7 534 543 1,077 607 542 1,149 2008 8 445 513 958 450 452 902 2008 9 447 400 847 372 366 738 2008 10 420 434 854 422 429 851 2008 11 454 425 879 452 506 958 2008 12 470 478 948 535 499 1,034 2009 1 440 388 828 345 303 648 2009 2 373 363 736 283 284 567 2009 3 378 435 813 378 378 756 2009 4 326 341 667 395 412 807 2009 5 441 430 871 556 529 1,085 YE May 31, 2009 5,283 5,264 10,547 5,317 5,201 10,518

2009 6 519 574 1,093 605 623 1,228 2009 7 536 504 1,040 854 759 1,613 2009 8 444 501 945 535 567 1,102 2009 9 483 445 928 606 582 1,188 2009 10 437 459 896 474 460 934 2009 11 446 432 878 538 549 1,087 2009 12 537 476 1,013 514 478 992 2010 1 404 376 780 328 317 645 2010 2 414 475 889 303 281 584 2010 3 458 635 1,093 457 457 914 2010 4 416 440 856 390 394 784 2010 5 552 640 1,192 492 459 951 YE May 31, 2010 5,646 5,957 11,603 6,096 5,926 12,022

2010 6 660 697 1,357 568 523 1,091 2010 7 760 721 1,481 657 566 1,223 2010 8 751 792 1,543 502 495 997 2010 9 834 825 1,659 593 591 1,184 2010 10 831 758 1,589 615 569 1,184 2010 11 748 720 1,468 593 622 1,215 2010 12 888 812 1,700 632 601 1,233 2011 1 763 767 1,530 447 438 885 2011 2 717 654 1,371 405 347 752 2011 3 911 987 1,898 556 605 1,161 2011 4 747 733 1,480 537 518 1,055 2011 5 951 948 1,899 642 617 1,259 YE May 31, 2011 9,561 9,414 18,975 6,747 6,492 13,239Appendix B Page 6 of 12

Historical Traffic at the 24 Communities, Alphabetical Order, T-100 Market Report, Sun Country and Allegiant Excluded

Hattiesburg/Laurel, MS (PIB) International Falls, MN (INL) 2008 6 1,107 1,088 2,195 2,402 2,540 4,942 2008 7 1,062 1,095 2,157 2,355 2,538 4,893 2008 8 1,010 1,040 2,050 2,534 2,232 4,766 2008 9 827 852 1,679 1,522 1,221 2,743 2008 10 915 989 1,904 936 906 1,842 2008 11 820 879 1,699 773 683 1,456 2008 12 765 863 1,628 746 773 1,519 2009 1 688 814 1,502 896 744 1,640 2009 2 772 867 1,639 966 922 1,888 2009 3 680 846 1,526 847 945 1,792 2009 4 707 917 1,624 761 855 1,616 2009 5 991 1,171 2,162 1,121 1,374 2,495 YE May 31, 2009 10,344 11,421 21,765 15,859 15,733 31,592

2009 6 1,118 1,194 2,312 2,248 2,435 4,683 2009 7 1,283 1,342 2,625 2,639 2,722 5,361 2009 8 1,093 1,202 2,295 2,579 2,225 4,804 2009 9 1,116 1,148 2,264 1,318 1,142 2,460 2009 10 1,161 1,193 2,354 813 746 1,559 2009 11 1,109 1,197 2,306 671 608 1,279 2009 12 1,099 1,084 2,183 670 642 1,312 2010 1 896 977 1,873 730 726 1,456 2010 2 898 1,041 1,939 753 675 1,428 2010 3 1,134 1,187 2,321 705 700 1,405 2010 4 986 1,114 2,100 459 530 989 2010 5 1,136 1,180 2,316 795 942 1,737 YE May 31, 2010 13,029 13,859 26,888 14,380 14,093 28,473

2010 6 999 1,101 2,100 1,887 2,009 3,896 2010 7 1,138 1,246 2,384 2,115 2,202 4,317 2010 8 1,112 1,209 2,321 2,288 1,987 4,275 2010 9 1,117 1,046 2,163 1,399 1,254 2,653 2010 10 1,177 1,344 2,521 845 846 1,691 2010 11 1,163 1,137 2,300 708 667 1,375 2010 12 986 1,069 2,055 850 749 1,599 2011 1 880 926 1,806 832 804 1,636 2011 2 873 883 1,756 906 847 1,753 2011 3 1,123 1,165 2,288 966 1,026 1,992 2011 4 999 1,044 2,043 753 846 1,599 2011 5 1,182 1,224 2,406 891 1,047 1,938 YE May 31, 2011 12,749 13,394 26,143 14,440 14,284 28,724Appendix B Page 7 of 12

Historical Traffic at the 24 Communities, Alphabetical Order, T-100 Market Report, Sun Country and Allegiant Excluded

Iron Mountain/Kingsfd, MI (IMT) Jamestown, ND (JMS) 2008 6 209 293 502 255 326 581 2008 7 388 471 859 309 280 589 2008 8 421 373 794 206 252 458 2008 9 306 303 609 200 199 399 2008 10 271 283 554 262 293 555 2008 11 291 344 635 265 291 556 2008 12 349 371 720 392 326 718 2009 1 320 249 569 233 247 480 2009 2 351 333 684 231 233 464 2009 3 421 394 815 231 243 474 2009 4 416 518 934 223 242 465 2009 5 411 455 866 228 250 478 YE May 31, 2009 4,154 4,387 8,541 3,035 3,182 6,217

2009 6 438 525 963 248 273 521 2009 7 670 729 1,399 302 281 583 2009 8 651 645 1,296 306 316 622 2009 9 438 423 861 304 331 635 2009 10 443 440 883 433 395 828 2009 11 435 440 875 378 400 778 2009 12 380 422 802 341 415 756 2010 1 404 380 784 301 439 740 2010 2 377 334 711 304 303 607 2010 3 515 567 1,082 288 335 623 2010 4 466 463 929 313 325 638 2010 5 526 599 1,125 324 330 654 YE May 31, 2010 5,743 5,967 11,710 3,842 4,143 7,985

2010 6 508 588 1,096 350 363 713 2010 7 718 734 1,452 457 449 906 2010 8 746 686 1,432 384 444 828 2010 9 701 722 1,423 430 406 836 2010 10 684 642 1,326 425 430 855 2010 11 704 697 1,401 404 399 803 2010 12 592 689 1,281 454 440 894 2011 1 677 544 1,221 428 408 836 2011 2 695 586 1,281 377 395 772 2011 3 987 902 1,889 466 491 957 2011 4 691 831 1,522 347 370 717 2011 5 817 878 1,695 420 418 838 YE May 31, 2011 8,520 8,499 17,019 4,942 5,013 9,955

### Appendix B Page 8 of 12

Historical Traffic at the 24 Communities, Alphabetical Order, T-100 Market Report, Sun Country and Allegiant Excluded

Mason City, IA (MCW) Muscle Shoals, AL (MSL) 2008 6 937 1,016 1,953 411 410 821 2008 7 1,217 1,155 2,372 479 484 963 2008 8 1,003 995 1,998 349 350 699 2008 9 900 919 1,819 381 356 737 2008 10 941 931 1,872 399 431 830 2008 11 919 875 1,794 425 421 846 2008 12 957 910 1,867 423 374 797 2009 1 840 818 1,658 268 284 552 2009 2 955 796 1,751 316 307 623 2009 3 831 934 1,765 358 334 692 2009 4 716 764 1,480 346 309 655 2009 5 876 858 1,734 329 307 636 YE May 31, 2009 11,092 10,971 22,063 4,484 4,367 8,851

2009 6 987 1,078 2,065 486 478 964 2009 7 1,114 1,041 2,155 794 768 1,562 2009 8 999 940 1,939 778 730 1,508 2009 9 843 784 1,627 764 742 1,506 2009 10 770 754 1,524 828 792 1,620 2009 11 795 795 1,590 668 712 1,380 2009 12 858 797 1,655 689 627 1,316 2010 1 770 725 1,495 484 471 955 2010 2 885 740 1,625 444 424 868 2010 3 878 944 1,822 634 606 1,240 2010 4 805 796 1,601 633 586 1,219 2010 5 1,053 980 2,033 777 713 1,490 YE May 31, 2010 10,757 10,374 21,131 7,979 7,649 15,628

2010 6 1,203 1,278 2,481 784 772 1,556 2010 7 1,461 1,325 2,786 794 743 1,537 2010 8 1,351 1,333 2,684 703 695 1,398 2010 9 1,209 1,161 2,370 760 737 1,497 2010 10 1,230 1,198 2,428 892 907 1,799 2010 11 1,231 1,197 2,428 806 768 1,574 2010 12 1,279 1,188 2,467 869 793 1,662 2011 1 1,176 1,135 2,311 594 608 1,202 2011 2 1,013 928 1,941 510 478 988 2011 3 1,191 1,274 2,465 671 623 1,294 2011 4 904 916 1,820 572 586 1,158 2011 5 991 995 1,986 731 698 1,429 YE May 31, 2011 14,239 13,928 28,167 8,686 8,408 17,094Appendix B Page 9 of 12

Historical Traffic at the 24 Communities, Alphabetical Order, T-100 Market Report, Sun Country and Allegiant Excluded

Pellston, MI (PLN) Pierre, SD (PIR) 2008 6 2,602 3,153 5,755 1,424 1,588 3,012 2008 7 4,095 4,028 8,123 1,437 1,327 2,764 2008 8 3,888 3,558 7,446 1,264 1,311 2,575 2008 9 2,470 2,103 4,573 1,229 1,241 2,470 2008 10 2,084 1,814 3,898 1,632 1,728 3,360 2008 11 1,364 1,352 2,716 1,516 1,467 2,983 2008 12 1,433 1,661 3,094 1,274 1,241 2,515 2009 1 1,344 953 2,297 975 886 1,861 2009 2 1,251 1,141 2,392 895 867 1,762 2009 3 1,398 1,321 2,719 916 1,004 1,920 2009 4 1,169 1,463 2,632 913 927 1,840 2009 5 1,504 1,766 3,270 1,092 1,103 2,195 YE May 31, 2009 24,602 24,313 48,915 14,567 14,690 29,257

2009 6 2,367 2,902 5,269 1,398 1,485 2,883 2009 7 4,232 4,343 8,575 1,215 1,211 2,426 2009 8 4,294 3,570 7,864 1,099 1,020 2,119 2009 9 1,979 1,882 3,861 1,046 1,026 2,072 2009 10 1,884 1,568 3,452 1,474 1,528 3,002 2009 11 979 926 1,905 1,496 1,341 2,837 2009 12 1,032 1,090 2,122 1,145 1,085 2,230 2010 1 989 742 1,731 848 835 1,683 2010 2 1,008 904 1,912 805 787 1,592 2010 3 1,236 1,140 2,376 957 1,021 1,978 2010 4 1,072 1,365 2,437 993 983 1,976 2010 5 1,305 1,527 2,832 995 993 1,988 YE May 31, 2010 22,377 21,959 44,336 13,471 13,315 26,786

2010 6 2,073 2,466 4,539 1,206 1,338 2,544 2010 7 4,202 4,430 8,632 1,349 1,264 2,613 2010 8 4,597 4,011 8,608 1,276 1,263 2,539 2010 9 2,526 2,213 4,739 1,371 1,400 2,771 2010 10 2,074 1,889 3,963 1,842 1,866 3,708 2010 11 1,007 999 2,006 1,795 1,727 3,522 2010 12 962 1,148 2,110 1,239 1,182 2,421 2011 1 1,119 926 2,045 1,081 1,010 2,091 2011 2 889 805 1,694 1,081 1,036 2,117 2011 3 1,214 1,140 2,354 1,028 1,171 2,199 2011 4 977 1,203 2,180 1,032 1,076 2,108 2011 5 1,481 1,754 3,235 1,163 1,223 2,386 YE May 31, 2011 23,121 22,984 46,105 15,463 15,556 31,019Appendix B Page 10 of 12

Historical Traffic at the 24 Communities, Alphabetical Order, T-100 Market Report, Sun Country and Allegiant Excluded

Sault Ste Marie, MI (CIU) Sioux City, IA (SUX) 2008 6 1,105 1,126 2,231 3,401 3,655 7,056 2008 7 1,175 1,219 2,394 3,116 3,113 6,229 2008 8 1,331 1,189 2,520 2,638 2,804 5,442 2008 9 1,071 928 1,999 2,631 2,624 5,255 2008 10 960 927 1,887 2,983 2,928 5,911 2008 11 801 830 1,631 2,755 2,761 5,516 2008 12 950 900 1,850 3,087 3,083 6,170 2009 1 941 748 1,689 1,972 1,978 3,950 2009 2 976 893 1,869 1,946 1,874 3,820 2009 3 1,157 1,123 2,280 2,258 2,340 4,598 2009 4 873 1,043 1,916 2,365 2,399 4,764 2009 5 1,006 1,035 2,041 2,944 2,762 5,706 YE May 31, 2009 12,346 11,961 24,307 32,096 32,321 64,417

2009 6 1,040 1,150 2,190 3,600 3,701 7,301 2009 7 1,357 1,370 2,727 3,663 3,741 7,404 2009 8 1,418 1,247 2,665 3,121 3,226 6,347 2009 9 1,190 1,090 2,280 2,836 2,729 5,565 2009 10 1,246 1,116 2,362 2,423 2,371 4,794 2009 11 979 971 1,950 2,468 2,505 4,973 2009 12 927 948 1,875 2,183 2,130 4,313 2010 1 1,053 893 1,946 1,834 1,712 3,546 2010 2 1,053 1,004 2,057 1,579 1,597 3,176 2010 3 1,229 1,242 2,471 1,663 1,792 3,455 2010 4 1,085 1,227 2,312 1,520 1,530 3,050 2010 5 1,047 1,122 2,169 1,890 1,802 3,692 YE May 31, 2010 13,624 13,380 27,004 28,780 28,836 57,616

2010 6 1,031 1,187 2,218 2,178 2,205 4,383 2010 7 1,317 1,434 2,751 1,850 1,997 3,847 2010 8 1,482 1,279 2,761 2,085 2,176 4,261 2010 9 1,281 1,128 2,409 2,238 2,276 4,514 2010 10 1,330 1,290 2,620 2,440 2,421 4,861 2010 11 1,153 1,093 2,246 2,416 2,389 4,805 2010 12 1,247 1,238 2,485 2,503 2,514 5,017 2011 1 1,282 1,061 2,343 2,109 2,047 4,156 2011 2 1,094 1,017 2,111 1,741 1,744 3,485 2011 3 1,692 1,617 3,309 1,937 2,106 4,043 2011 4 1,463 1,598 3,061 1,973 2,067 4,040 2011 5 1,405 1,539 2,944 2,302 2,386 4,688 YE May 31, 2011 15,777 15,481 31,258 25,772 26,328 52,100Appendix B Page 11 of 12

Historical Traffic at the 24 Communities, Alphabetical Order, T-100 Market Report, Sun Country and Allegiant Excluded

Thief River Falls, MN (TVF) Tupelo, MS (TUP) 2008 6 320 333 653 1,289 1,281 2,570 2008 7 242 260 502 1,321 1,297 2,618 2008 8 218 223 441 1,167 1,208 2,375 2008 9 209 205 414 1,120 1,088 2,208 2008 10 201 202 403 1,257 1,283 2,540 2008 11 193 190 383 1,110 1,111 2,221 2008 12 212 227 439 1,277 1,198 2,475 2009 1 211 184 395 1,068 1,132 2,200 2009 2 198 204 402 896 888 1,784 2009 3 216 266 482 1,113 1,139 2,252 2009 4 233 219 452 1,205 1,121 2,326 2009 5 231 229 460 1,253 1,267 2,520 YE May 31, 2009 2,684 2,742 5,426 14,076 14,013 28,089

2009 6 211 221 432 1,197 1,185 2,382 2009 7 268 269 537 1,051 1,075 2,126 2009 8 246 236 482 976 978 1,954 2009 9 228 232 460 878 831 1,709 2009 10 248 221 469 980 961 1,941 2009 11 226 225 451 911 832 1,743 2009 12 203 208 411 968 880 1,848 2010 1 181 182 363 736 691 1,427 2010 2 181 177 358 660 649 1,309 2010 3 299 354 653 879 927 1,806 2010 4 174 185 359 894 900 1,794 2010 5 186 178 364 956 903 1,859 YE May 31, 2010 2,651 2,688 5,339 11,086 10,812 21,898

2010 6 206 192 398 1,253 1,137 2,390 2010 7 215 194 409 1,279 1,173 2,452 2010 8 197 225 422 1,343 1,371 2,714 2010 9 177 192 369 1,009 964 1,973 2010 10 224 217 441 997 995 1,992 2010 11 236 223 459 1,025 1,046 2,071 2010 12 202 199 401 976 895 1,871 2011 1 202 200 402 822 796 1,618 2011 2 195 196 391 884 820 1,704 2011 3 189 209 398 981 977 1,958 2011 4 175 175 350 964 880 1,844 2011 5 199 212 411 1,084 1,059 2,143 YE May 31, 2011 2,417 2,434 4,851 12,617 12,113 24,730Appendix B Page 12 of 12

Historical Traffic at the 24 Communities, Alphabetical Order, T-100 Market Report, Sun Country and Allegiant Excluded

Waterloo, IA (ALO) Watertown, SD (ATY) 2008 6 2,504 2,590 5,094 407 438 845 2008 7 2,510 2,423 4,933 449 442 891 2008 8 2,342 2,509 4,851 406 419 825 2008 9 1,911 1,953 3,864 414 431 845 2008 10 2,071 2,005 4,076 361 427 788 2008 11 1,918 1,925 3,843 309 293 602 2008 12 2,055 2,039 4,094 421 405 826 2009 1 1,857 1,996 3,853 374 358 732 2009 2 1,725 1,643 3,368 361 365 726 2009 3 1,817 1,939 3,756 410 447 857 2009 4 1,486 1,491 2,977 362 373 735 2009 5 1,787 1,708 3,495 390 416 806 YE May 31, 2009 23,983 24,221 48,204 4,664 4,814 9,478

2009 6 2,259 2,253 4,512 431 463 894 2009 7 2,163 2,154 4,317 596 516 1,112 2009 8 1,817 1,971 3,788 496 503 999 2009 9 1,671 1,681 3,352 550 536 1,086 2009 10 1,338 1,501 2,839 445 521 966 2009 11 1,722 1,713 3,435 381 376 757 2009 12 1,726 1,649 3,375 462 506 968 2010 1 1,521 1,493 3,014 596 596 1,192 2010 2 1,568 1,469 3,037 539 521 1,060 2010 3 1,871 2,103 3,974 553 517 1,070 2010 4 1,594 1,579 3,173 465 456 921 2010 5 1,873 1,830 3,703 567 554 1,121 YE May 31, 2010 21,123 21,396 42,519 6,081 6,065 12,146

2010 6 1,964 1,910 3,874 680 668 1,348 2010 7 1,961 1,936 3,897 754 740 1,494 2010 8 2,034 2,165 4,199 647 610 1,257 2010 9 1,982 2,031 4,013 695 648 1,343 2010 10 2,057 1,947 4,004 784 786 1,570 2010 11 1,894 1,913 3,807 836 783 1,619 2010 12 1,903 1,865 3,768 687 647 1,334 2011 1 1,592 1,633 3,225 766 664 1,430 2011 2 1,443 1,424 2,867 737 706 1,443 2011 3 1,845 1,891 3,736 739 738 1,477 2011 4 1,612 1,576 3,188 535 492 1,027 2011 5 1,837 1,833 3,670 706 697 1,403 YE May 31, 2011 22,124 22,124 44,248 8,566 8,179 16,745

### Appendix C

Summary of Requested Service

Docket Enplanements EAS Community DOT-OST Hub 1/ 34 seaters 30 seaters 19 seaters per Day 3/ 1 Sioux City, IA 2011-0131 L or M 2/12-14 3/18 3-4/18-24 83.2 2 Butte, MT 2011-0136 L, M, or S 2/12-14 3/18 3-4/18-24 79.7 3 Pellston, MI 2011-0133 L or M 2/12-14 3/18 3-4/18-24 73.7 4 Bemidji, MN 2011-0134 L or M 2/12-14 3/18 3-4/18-24 71.9 5 Waterloo, IA 2011-0132 L or M 2/12-14 3/18 3-4/18-24 70.7 6 Aberdeen, SD 2011-0137 L or M 2/12-14 3/18 3-4/18-24 69.9 7 Brainerd, MN 2011-0135 L or M 2/12-14 3/18 3-4/18-24 51.7

1 Sault Ste. Marie, MI 2009-0303 L or M 2/12-14 2-3/12-18 3-4/18-24 49.9 2 International Falls, MN 2009-0304 L or M 2/12-14 2-3/12-18 3-4/18-24 45.9 3 Mason City, IA 2001-10684 L or M 2/12-14 2-3/12-18 3-4/18-24 45.0 4 Hattiesburg, MS 2001-10685 L or M 2/12-14 2-3/12-18 3-4/18-24 41.8 5 Tupelo, MI 2009-0305 L or M 2/12-14 2-3/12-18 3-4/18-24 39.5 6 Escanaba, MI 2003-15128 L or M 2/12-14 2-3/12-18 3-4/18-24 35.0 7 Chisolm/Hibbing, MN 2003-15796 L or M 2/12-14 2-3/12-18 3-4/18-24 33.7 8 Alpena, MI 2009-0300 L or M 2/12-14 2-3/12-18 3-4/18-24 31.5 9 Fort Dodge, IA 2001-10682 L or M 2/12-14 2-3/12-18 3-4/18-24 30.3 10 Muscle Shoals, AL 2000-7856 L or M 2/12 2/14 3/18 27.3 11 Iron Mountain, MI 1999-5175 L or M 2/12 2/14 3/18 27.2 12 Watertown, SD 2001-10644 L or M 2/12 2/14 3/18 26.7 13 Greenville, MS 2008-0209 L or M 2/12 2/14 3/18 21.1 14 Devils Lake, ND 1997-2785 L, M, or S 2/12 2/14 3/18 17.2 15 Jamestown, ND 1997-2785 L or M 2/12 2/14 3/18 15.9 16 Thief River Falls, MN 2001-10642 L or M 2/12 2/12 2/12 7.7

1/ Hub sizer per 2010 FAA Acitivity Statistics: L (Large), M (Medium), or S (Small Hub). 2/ The requested frequency of service assumes that the service would be provided on a nonstop turnaround basis, except at Thief River Falls, where one-stop service is assumed. If two communities are served over a linear route, thus sharing seats, we would consider proposals with additional frequencies from those outlined above. 3/ Based on Appendix B, Origin and Destination Total Passengers, divided by 2 (for two directions), divided by 313 service days, where each weekend is equal to one service day. Round Trips per Day/Week 2/

## Appendix D
Example of General Terms and Conditions for Essential Air Service The carrier understands that it may forfeit its compensation for any flights that it does not operate in conformance with the terms and stipulations o f 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 sche dule 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 applicabl e period of these rates, 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 b e 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 communit ies

. 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 amounts or at the sti pulated service levels, the carrier may cease to provide service to that specific location without regard 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 contracts are subject to, and incorporate by reference, relevant statutes and Department regulations, as they may be amended from time to time. How ever, any such statutes, regulations, or amendments thereto shall not operate to controvert the foregoing paragraph.
Funds are not currently available for performance under this solicitation beyond [DATE]. The Department’s obligation for performance under this solicitation beyond [DATE], is contingent upon the availability of appropriated funds from which payment for services can be made. No legal liability on the part of the Government for any payment may arise for perform ance under this order beyond [DATE], until funds are made available to the Department for performance. If funds are not made available for performance beyond [DATE], the carrier will receive notice in writing by the Department.
All claims for payment mus t be submitted within 60 days of the last day of service provided under this order

.