Order: 2014-3-9

Served: March 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 of March, 2014

Essential Air Service at

DODGE CITY, KANSAS

GARDEN CITY, KANSAS

GREAT BEND, KANSAS

HAYS, KANSAS, and 

LIBERAL, KANSAS

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

DOCKET DOT-OST-1998-3502

DOCKET DOT-OST-1998-3503

DOCKET DOT-OST-1998-3496

DOCKET DOT-OST-1998-3497

DOCKET DOT-OST-1998-3498

Order

Summary

By this Order, the Department is selecting American Airlines (American) to provide Essential 

Air Service (EAS) at Garden City, Kansas, for $1,445,172 annually; SeaPort Airlines, Inc. 

(SeaPort) at Great Bend for $1,434,472; and SkyWest Airlines (SkyWest) at Hays for 

$2,253,132. The Order also re-selects Great Lakes Airlines (Great Lakes) at Dodge City and 

Liberal, Kansas, for $2,339,131 and $2,236,180 respectively, and sets bridge rates for Great 

Lakes at Great Bend and Hays until the start of replacement service.1

Background

Order 2011-10-24, October 31, 2011, tentatively selected American Eagle Airlines to provide 

EAS at Garden City, and Great Lakes at Dodge City, Great Bend, Hays, and Liberal, Kansas.2 

No parties objected, and Order 2011-11-14, November 14, 2011, finalized that show cause 

Order, summarized in the table below.

 

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

2 The Order was issued on a tentative basis because Great Lakes proposal was for a five-city package without

separate subsidy calculations for each community. This required us to recalculate the level of subsidy required at the 

remaining communities. 
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Summary of Service Secured by Order 2011-11-14 3

Intermediate Weekly Passengers

Community Hub Carrier Aircraft Stops Trips Subsidy Projected Per RFP

Dodge City Denver Great Lakes B-1900 0 17 $1,688,598 14,000 11,708

Garden City Dallas American R. Jets 0 14 $3,252,359 39,347 45,480

Hays Denver Great Lakes B-1900 0 24 $2,164,041 20,000 18,278

Great Bend Denver Great Lakes B-1900 1 12 $1,082,020 2,200 1,937

Liberal Denver Great Lakes B-1900 0 18 $2,555,150 9,000 11,833

Total $10,742,168

The Department selected the carriers to provide service for two years beginning when American 

Eagle inaugurated service at Garden City, through the end of the 24th month thereafter. 

American Eagle began service at Garden City on April 3, 2012, thus setting an expiration date of 

April 30, 2014. As the end of the rate term approached, the Department issued Order 2013-11-2, 

November 1, 2013, soliciting proposals for a new rate term. In response to that Order, the 

Department received proposals from American, SeaPort, and SkyWest, and those are outlined 

below.

Proposals

Dodge City

Great Lakes requests $2,339,131 annual subsidy for service with 19-seat Beech 1900 aircraft and 

eighteen (18) nonstop round trips per week to Denver (DEN) – one more than the current level of 

service we require. 

SeaPort proposes to operate twenty four (24) nonstop round trips per week to Wichita MidContinent Airport (ICT), for $2,008,596 annual subsidy with 9-seat, Cessna 208s, a single-engine 

turboprop aircraft. 

Garden City

American proposes to continue to operate fourteen (14) nonstop round trips per week to 

Dallas/Fort Worth International Airport (DFW) for $1,445,172 annual subsidy with 44-seat or 

larger regional jets.

American requested the flexibility to use either 50- or 44-seat regional jets for the same level of 

subsidy, and the actual service provider would be a code-share partner of American. Both 

provisions would increase American’s flexibility as well as the reliability of its service to the 

communities. American’s proposals at EAS communities are predicated on a continuation of the

 

3 Order 2011-11-14 recognized that Garden City and Dodge City would benefit on a regional basis: those airports 

are 43 miles apart, and people from each community would be able to drive to the other for nonstop service to either 

Denver or Dallas. At Great Bend and Hays the separate rates above were based on a combined total of $3,246,061 

annual subsidy, assigned between each community on the basis of departures, which did not necessarily reflect the 

cost of serving each community separately. The $3,252,359 subsidy for Garden City above included $333,333 

annual subsidy contributed by local parties.
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waiver, initially granted at Garden City by Order 2011-11-14, to allow it to leave on 120 days’ 

notice. Here again American warrants that it would provide a 120-day notice, after which time it 

would be free to terminate service. There were no other bids involving Garden City.

Great Bend

Great Lakes requests $1,975,110 annual subsidy for twelve (12) one-stop round trips per week to 

Denver (DEN) with 19-seat Beech 1900 aircraft -- the same level of service it currently provides. 

SeaPort proposes to operate eighteen (18) nonstop round trips per week to Wichita for 

$1,434,472 annual subsidy with 9-seat, single-engine Cessna 208 aircraft. 

Hays

Great Lakes’ Option 1 requests $1,669,520 annual subsidy for service with 19-seat Beech 1900 

aircraft and eighteen (18) nonstop round trips per week to Denver (DEN).4 Great Lakes’

Option 2 requests $1,499,508 annual subsidy for service with 30-seat Brasilia aircraft and 

fourteen (14) nonstop round trips per week to Denver (DEN). 

SkyWest requests $2,253,132 annual subsidy for twelve (12) nonstop round trips per week to 

Denver (DEN) with 50-seat regional jet aircraft. SkyWest would operate as United Express.

Liberal

Great Lakes requests $2,236,180 annual subsidy for eighteen (18) nonstop round trips per week 

to Denver (DEN) with 19-seat Beech 1900 aircraft -- the same level of service it currently 

provides. 

SeaPort proposes to operate twenty four (24) nonstop round trips per week to Wichita for 

$2,790,489 annual subsidy with 9-seat, single-engine Cessna 208 aircraft. 

Summary of Proposals Before the Department

Round Proj.

Community Carrier Hub Aircraft Stops Trips Subsidy Psgrs.

1 . Dodge City Great Lakes DEN B-1900 0 18 $2,339,131 15,000

Seaport ICT C-208 0 24 $2,008,596 11,500

2 . Garden City American DFW R.Jet 0 14 $1,445,172 46,866

3 . Great Bend Seaport ICT C-208 0 18 $1,434,472 3,100

Great Lakes DEN B-1900 1 12 $1,975,110 3,000

4 . Hays SkyWest DEN R.Jet 0 12 $2,253,132 26,000

Great Lakes DEN B-1900 0 18 $1,699,520 22,000

Great Lakes DEN Brasilia 0 14 $1,499,508 22,000

5 . Liberal Great Lakes DEN B-1900 0 18 $2,236,180 15,000

Seaport ICT C-208 0 24 $2,790,489 11,500

 

4 This is a reduction from the 24 nonstop round trips per week Great Lakes is currently required to provide.
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Community Comments

Dodge City

The community supports Great Lakes’ proposal. “A primary factor in our endorsement of the 

Denver service, as proposed by Great Lakes, is that such service allows for the continuation of 

the regional air service concept initiated through the joint efforts of Dodge City and Garden City 

during the last contract term. Since the introduction of Dallas service at Garden City and Denver 

service at Dodge City and Liberal, passenger boardings at all three communities have more than 

doubled.” The community is concerned with the number of cancellations by Great Lakes at 

Dodge City and Liberal. “We have been assured by Great Lakes’ officials that steps are being 

taken to remedy, or at least mitigate, this troublesome issue [of cancelled flights] and that 

improvement should appear in the next few months.”

Liberal

The City of Liberal supports Great Lakes’ proposal. 

“[Great Lakes’] bid to provide three weekday round trip flights and four round trip 

weekend flights5 to Denver will continue to provide our community with convenient, 

cost-effective connections to the nation’s air transportation system. Great Lakes 

Aviation has had a presence in Liberal for many years and has provided air 

transportation with good connections.” 

Great Bend

The City of Great Bend supports the selection of SeaPort. It favors SeaPort because of the 

greater frequency of flights the carrier proposes (18 nonstops vs. 12 one-stops); the reduced fares

SeaPort proposes compared to Great Lakes;6 the aircraft proposed by SeaPort which the 

community believes would be more reliable; the increasingly unreliable service demonstrated by 

Great Lakes; and SeaPort’s success at providing EAS at nearby Salina, Kansas, as measured by 

increased passenger loads. The city notes that:

“By any measure, Great Lakes has cancelled approximately 30 percent of its scheduled 

flights for Great Bend since November 2013. As of January 6, only one scheduled flight

into Great Bend has occurred in 2014.”

Garden City

Garden City recommends that we select American. The community again waives its right to 

hold-in American past the 120-day notice period the carrier based its proposal upon.

Hays

The City of Hays recommends the selection of SkyWest. “The City of Hays and its residents 

give the strongest possible endorsement to the air service proposal of SkyWest Airlines. We 

 

5 Great Lakes proposed 18 round trips per week, not 19.

6 The fares proposed by carriers in their proposals are not guaranteed by the Department, since the Department does 

not regulate air fares under deregulation. 
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urge the Department to award the Hays EAS contract to SkyWest in a prompt manner.” The 

community notes that Great Lakes in the several years it has served Hays has not attained the 97 

percent completion projected by Great Lakes, and the service has recently gotten worse.7 Hays 

contrasts this with the historical record of SkyWest. “We are aware of SkyWest’s outstanding 

reputation for reliable and on time air service, for high quality customer service and for working 

with airport partners to achieve maximum traffic and revenue results in every small city they 

serve.” The community notes that in four nearby communities where American8 replaced Great 

Lakes (Garden City, Grand Island, Joplin, and Manhattan) the traffic generated at the community 

has more than doubled and two years after the transition to American the level of subsidy has 

decreased significantly.

We also received letters from the Hays Medical Center, Fort Hays State University, the Hays 

Area Chamber of Commerce, and the Ellis County Coalition for Economic Development. The 

Medical Center indicates it has “lost confidence in the air flight service [of Great Lakes] due to 

last minute cancellations, lack of on-time service, and inconsistent operations. At times we have 

been forced to utilize other air service out of Wichita, Manhattan, and Kansas City to meet our 

business needs.” Fort Hays State University indicates that Great Lakes’ service “has never been 

good, but the rapid deterioration in reliability over the past year has created even greater 

hardships for FHSU faculty, staff, and students. Considering that Great Lakes has not been able 

to provide even minimally adequate service under its current contract, I cannot imagine how it 

proposes to improve its service with a greatly reduced EAS subsidy.” Midwest Energy states that 

“Attempting to fly Great Lakes is no longer a viable option for our travelers, and today nearly all 

our company travel is accomplished from Wichita, Kansas City, or Denver; respectively three, 

four, and five hours away.” 

Decision

Summary of Proposals Selected 

Round Proj.

Community Carrier Hub Aircraft Stops Trips Subsidy Psgrs.

Dodge City Great Lakes DEN B-1900 0 18 $2,339,131 15,000

Garden City American DFW R. Jet 0 14 $1,445,172 46,866

Great Bend Seaport ICT C-208 0 18 $1,434,472 3,100

Hays SkyWest DEN R.Jet 0 12 $2,253,132 26,000

Liberal Great Lakes DEN B-1900 0 18 $2,236,180 15,000

$9,708,087

At Dodge City and Liberal, the decision is straightforward in favor of selecting Great Lakes:

Both communities support the selection of Great Lakes; the levels of subsidy requested by Great 

 

7 The carrier’s on-time and completion performance was as follows, respectively: July, 62% and 86%; 

August, 59% and 89%; September, 65% and 90%; October, 52% and 70%; November 43% and 60%.

8 American’s service at these communities was with regional jets on a code-share partner to a major hub (DFW) of 

the parent; SkyWest’s proposal reflects similar changes in parameters – United, regional jets, DEN.
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Lakes and by SeaPort, the only other applicant, are similar;9 and SeaPort proposes service with 

single-engine aircraft.10 

The reselection of American at Garden City is straightforward: only one carrier submitted a 

proposal. In addition the carrier requests significantly less subsidy than its current rate and the 

community fully supports the carrier. We will therefore re-select American. Because the only 

bid at Garden City is from American, which is requesting a waiver of the hold-in provisions of 

49 U.S.C. § 41734, we will accept American’s request to cease operations at Garden City on 120 

days’ notice under 49 U.S.C. § 40109 as in the public interest. To not do so would risk Garden 

City potentially losing its service as no other carrier provided a proposal for service.11 Under 49 

U.S.C. § 40101(a)(11), “maintaining a complete and convenient system of continuous scheduled 

interstate air transportation for small communities and isolated areas with direct financial 

assistance from the United States Government when appropriate” must be considered as being in 

the public interest as the Department administers the EAS Program.

We now turn to Hays and Great Bend.12 Those two communities strongly favor SkyWest and 

SeaPort, respectively, and the difference in annual subsidy between them and Great Lakes is 

small.13 In addition, Great Lakes contacted us on March 12 to say that they were suspending 

service at Great Bend on April 1, 2014, due to a lack of pilots. In light of Great Lakes’ recent 

inconsistent service, we assign more than the usual weight to the communities’ recommendation 

that we not select Great Lakes. 

Finally, we recognize the advantages provided by regional service14 at Dodge City, Liberal, and 

Garden City provided by SkyWest and Great Lakes, and selecting SkyWest and SeaPort at Great 

Bend and Hays will have similar advantages: Great Bend passengers will be able to drive to 

nearby Hays for service to Denver, a large hub and connect to a large selection of destinations, 

domestic and international, while Hays passengers will be able to drive to nearby Great Bend for 

service to a different airport, Wichita, a small hub, which provides service to several destinations 

across the country.

Carrier Transition 

Our goal is to keep all five of these communities on the same time cycle as there could be 

economies of scale in the out years. However, we are selecting new carriers for Hays (SkyWest) 

and Great Bend (SeaPort), and we do not know when either will be able to inaugurate service. 

 

9 Great Lakes requests a total of $4,575,311 at the two communities while SeaPort requests $4,799,085.

10 Great Lakes initially indicated that its bid at Dodge City and Liberal were part of an inseparable package with 

Great Lakes’ bid at Great Bend and Hays. It recently indicated it has removed that provision from its proposal.

11 American’s current service is provided subject to that same 120 days' notice provision.

12 Great Bend’s support for SeaPort was critically important, because SeaPort’s C-208 does not meet the statutory 

guarantee of twin-engine aircraft, and could only be selected if the community waived this guarantee.

13 Great Lakes requested $1,975,110 at Great Bend and either $1,499,508 or $1,699,520 at Hays, or $3,474,610 

total. SkyWest requested $2,253,132 at Hays and SeaPort $1,434,472 at Great Bend, or $3,687,604 total. 

14 By regional service, we mean that at Dodge City, Garden City, and Liberal, passengers at each community can 

drive to nearby airports to obtain air service going to two different hubs.
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As mentioned above, Great Bend will be without any scheduled service, effective April 1. Thus, 

we encourage SeaPort to make every effort to begin service as soon as possible. 

Otherwise, in order to allow for a long lead time, we will set the end of the contracts as July 31, 

2016, even if that may result in slightly more than the typical two-year periods. We expect Great 

Lakes, SkyWest and SeaPort to work together to make a smooth transition at Great Bend and 

Hays. In that regard, before Great Lakes suspends its service at Hays and Great Bend, we expect 

it 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 price, without penalty, if requested. 

Finally, we will make the rates proposed by Great Lakes at Dodge City and Liberal effective 

from May 1, 2014, through the twenty-fourth complete month of service. We will also make the 

rates proposed by Great Lakes for its service to Hays and Great Bend effective from May 1, 

2014, until SkyWest and SeaPort begin service to these communities. 

Carrier Fitness

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

able to provide reliable service before the Department may subsidize it to provide EAS. 

American, SkyWest, SeaPort, and Great Lakes are subject to the Department’s continuing fitness 

requirements, and no information has come to our attention that would cause us to question the 

carriers’ fitness at this time. DOT has contacted the Federal Aviation Administration, and it has 

raised no concerns that would negatively affect our fitness findings. We therefore conclude that 

the four carriers remain 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 American to provide EAS, at Garden City, Kansas, as described in Appendices C-1; 

SeaPort to provide EAS at Great Bend, Kansas, as described in Appendix C-2; SkyWest to 

provide EAS at Hays, Kansas, as described in Appendix C-3; and Great Lakes to provide EAS at 

Dodge City and Liberal, as described in Appendices C-4 and C-5, respectively;

2. We set bridge rates for Great Lakes at Great Bend and Hays, Kansas, as described in 

Appendices D-1 and D-2, respectively;

3. We direct American, Great Lakes, SeaPort, and SkyWest 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 

the 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;
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4. We find that American, Great Lakes, SeaPort, and SkyWest, continue to be fit, willing and 

able to operate as commuter and certificated air carriers and capable of providing reliable EAS at 

Dodge City, Garden City, Great Bend, Hays, and Liberal, Kansas;

5. Under our authority in 49 U.S.C. § 40109, we will allow American to cease operations at 

Garden City on 120 days’ notice; 

6. These dockets will remain open until further Order of the Department; and

7. We will serve copies of this Order on the civic officials of Dodge City, Garden City, Great 

Bend, Hays, and Liberal, Kansas, and on American, Great Lakes, SeaPort, and SkyWest.

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

Nonstop Great Circle Miles

Denver (DEN) to Liberal (LBL) 280

Denver (DEN) to Dodge City (DDC) 292

Denver (DEN) to Hays (HYS) 298

Dallas (DFW) to Garden City 404

Wichita (ICT) to Great Bend 91

Great Bend to Hays 41

Garden City to Liberal 62

Garden City to Dodge City 43
Appendix B

Summary of Proposals Selected 

Dodge City Garden City Great Bend Hays Liberal

Carrier Great Lakes American Seaport SkyWest Great Lakes

Docket 1998-3502 1998-3503 1998-3496 1998-3497 1998-3498

Hub DEN DFW ICT DEN DEN

Aircraft Type B-1900 Regional Jet C-208 Regional Jet B-1900

Round Trips Per Week 18 14 18 12 18

Seats 1/ 19 50 1/ 9 50 19

Passengers 15,000 46,866 3,100 26,000 15,000

Stage Length 292 404 91 297 280

Completion 97.00% 98.00% 98.50% 98.00% 97.00%

Departures Performed 1,822 2/ 1,431 3/ 1,844 4/ 1,223 5/ 1,822 6/

Block Time 1.4000 2/ 1.5000 3/ 0.6665 4/ 1.2333 5/ 1.3330 6/

Annual Block Hours 2,551 2/ 2,147 3/ 1,229 4/ 1,508 5/ 2,429 6/

Passenger Fare $128.75 $119.00 $51.30 $99.00 $128.09

Passenger Revenue 7/ $1,931,250 $5,577,054 $159,030 $2,574,000 $1,921,350

Other Revenue 8/ $11,974 $1,160 $3,976 $0 $11,912

Total Revenue $1,943,224 $5,578,214 $163,006 $2,574,000 $1,933,262

Direct Expenses $2,887,926 $5,650,895 $944,143 $3,529,693 $2,798,370

Indirects $1,190,507 $1,038,043 $577,264 $1,067,576 $1,172,527

Total Operating $4,078,433 $6,688,938 $1,521,407 $4,597,269 $3,970,897

Profit @ 5% $203,922 $334,447 $76,070 $229,863 $198,545

Total Economic $4,282,355 $7,023,385 $1,597,477 $4,827,132 $4,169,442

Annual Subsidy $2,339,131 $1,445,172 $1,434,472 $2,253,132 $2,236,180

1/ The carrier would have flexibility to substitute 44-seat regional jets.

2/ 18 trips x 2 directions x 52 weeks x 313/312 days x .97 = 1,822 deps.; 1,822 deps x 84 minutes = 2,551

3/ 2 trips/day x 2 directions x 365 days x .98 = 1,431 deps.; 1,431 x 90 minutes = 2,147

4/ 18 trips x 2 directions x 52 weeks x .985 = 1,844 deps.; 1,844 x 40 minutes = 1,229

5/ 12 trips x 2 directions x 52 weeks x .98 = 1,223 deps.; 1,223 x 74 minutes = 1,508

6/ 18 trips x 2 directions x 52 weeks x 313/312 days x .97 = 1,822 deps.; 1,822 deps x 80 minutes = 2,429

7/ Projected passengers multiplied by projected passenger fare above.

8/ Difference between passenger revenue above and projected total revenue.
Appendix C-1

American Airlines, EAS to be Provided to Garden City, Kansas

Docket 1998-3503

Effective Period: May 1, 2014, through July 31, 2016;

Service: Fourteen (14) nonstop round trips per week to Dallas (DFW);

Aircraft Type: 44-seat or larger Regional Jet

Annual Subsidy: $1,445,172

Annual Flights: 1,4311

Subsidy per Flight: $1,0102

Weekly Subsidy Ceiling: $28,2803

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 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 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 amounts or at the stipulated 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. 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 filed for service provided in July must be filed by October 31; August claims 

must be submitted by November 30, and so on.

 

1 14 trips per week x two directions x 52 weeks x 0.98 completion x 313/312 = 1,431 flights.

2 $1,445,172 ÷ 1,431 flights.

3 $1,010 per flight x 28 flights per week.
Appendix C-2

SeaPort Airlines, Inc., EAS to be Provided to Great Bend, Kansas

Docket 1998-3496

Effective Period: Start of service through July 31, 2016; 1

Service: Eighteen (18) nonstop round trips per week to Wichita (ICT);

Aircraft Type: C-208 Caravan

Annual Subsidy: $1,434,472

Annual Flights: 1,8442

Subsidy per Flight: $7783

Weekly Subsidy Ceiling: $28,0084

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 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 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 amounts or at the stipulated 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. 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 filed for service provided in July must be filed by October 31; August 

claims must be submitted by November 30, and so on.

 

1 At this juncture it is not clear when SeaPort will replace Great Lakes. Because a budgetary marker is required, we 

have inserted July 1, 2014. 

2 18 trips per week x two directions x 52 weeks x 0.985 completion = 1,844 flights.

3 $1,434,472 ÷ 1,844 flights.

4 $778 per flight x 36 flights per week.
Appendix C-3

SkyWest Airlines EAS to be Provided to Hays, Kansas

Docket 1998-3498

Effective Period: July 1, 2014, through July 31, 2016; 1

Service: Twelve (12) nonstop round trips per week to Denver (DEN);

Aircraft Type: 50-seat regional jet

Annual Subsidy: $2,253,132

Annual Flights: 1,2232

Subsidy per Flight: $1,8423

Weekly Subsidy Ceiling: $44,2084

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 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 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 amounts or at the stipulated 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. 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 filed for service provided in July must be filed by October 31; August claims 

must be submitted by November 30, and so on..

 

1 At this juncture it is not clear when SkyWest and SeaPort will replace Great Lakes. Because a budgetary marker is 

required, we have inserted July 1, 2014. 

2 12 trips per week x two directions x 52 weeks x 0.98 completion = 1,223 flights.

3 $2,253,132 ÷ 1,223 flights.

4 $1,842 per flight x 24 flights per week.
Appendix C-4

Great Lakes Aviation, Ltd., EAS to be Provided to Dodge City, Kansas

Docket 1998-3502

Effective Period: May 1, 2014, through July 31, 2016; 1

Service: Eighteen (18) nonstop round trips per week to Denver (DEN);

Aircraft Type: Beech 1900

Annual Subsidy: $2,339,131

Annual Flights: 1,8222

Subsidy per Flight: $1,2843

Weekly Subsidy Ceiling: $46,2244

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 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 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 amounts or at the stipulated 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. 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 filed for service provided in July must be filed by October 31; August claims 

must be submitted by November 30, and so on.

 

1 At this juncture it is not clear when SkyWest and SeaPort will replace Great Lakes. Because a budgetary marker is 

required, we have inserted July 31, 2016. 

2 18 round trips per week x two directions x 52 weeks x 0.97 completion x 313/312 = 1,822 flights.

3 $2,339,131 ÷ 1,822 flights.

4 $1,284 per flight x 36 flights per week.
Appendix C-5

Great Lakes Aviation, Ltd., EAS to be Provided to Liberal, Kansas

Docket 1998-3498

Effective Period: May 1, 2014, through July 31, 2016; 1

Service: Eighteen (18) nonstop round trips per week to Denver (DEN);

Aircraft Type: Beech 1900

Annual Subsidy: $2,236,180

Annual Flights: 1,8222

Subsidy per Flight: $1,2273

Weekly Subsidy Ceiling: $44,1724

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 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 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 amounts or at the stipulated 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. 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 filed for service provided in July must be filed by October 31; August claims 

must be submitted by November 30, and so on.

 

1 At this juncture it is not clear when SkyWest will replace Great Lakes. Because a budgetary marker is required, 

we have inserted July 31, 2016. 

2 18 round trips per week x two directions x 52 weeks x 0.97 completion x 313/312 = 1,822 flights.

3 $2,236,180 ÷ 1,822 flights.

4 $1,227 per flight x 36 flights per week.
Appendix D-1

Bridge Rate

Great Lakes Aviation, Ltd., EAS to be Provided to Hays, Kansas

Docket 1998-3497

Effective Period: May 1, 2014 through July 31, 2014; 1

Service: Eighteen (18) nonstop round trips per week to Denver (DEN);

Aircraft Type: Beech 1900

Annual Subsidy: $1,699,520

Annual Flights: 1,8222

Subsidy per Flight: $9333

Weekly Subsidy Ceiling: $33,5884

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 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 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 amounts or at 

the stipulated 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. 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 filed for service provided in July must be filed by October 31; August claims must be submitted by November 

30, and so on.

 

1 At this juncture it is not clear SkyWest will replace Great Lakes. Because a budgetary marker is required, we have 

inserted July 31, 2014. 

2 18 round trips per week x two directions x 52 weeks x 0.97 completion x 313/312 = 1,822 flights.

3 $1,699,520 ÷ 1,822 flights.

4 $933 per flight x 36 flights per week.
Appendix D-2

Bridge Rate

Great Lakes Aviation, Ltd., EAS to be Provided to Great Bend, Kansas

Docket 1998-3496

Effective Period: May 1, 2014 through July 31, 2014;1 2

Service: Twelve (12) one-stop round trips per week to Denver (DEN);

Aircraft Type: Beech 1900

Annual Subsidy: $1,975,110

Annual Flights: 1,8223

Subsidy per Flight: $1,6314

Weekly Subsidy Ceiling: $39,1445

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 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 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 amounts or at 

the stipulated 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. 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 filed for service provided in July must be filed by October 31; August claims must be submitted by November 

30, and so on.

 

1 We expect Great Lakes and SeaPort, and SkyWest to coordinate the carrier transition at Great Bend and Hays.

2 At this juncture it is not clear when SkyWest and SeaPort will replace Great Lakes. Because a budgetary marker is 

required, we have inserted July 1, 2014. 

3 12 round trips per week x two directions x 52 weeks x 0.97 completion = 1,211 flights.

4 $1,975,110 ÷ 1,211 flights.

5 $1,631 per flight x 24 flights per week.