February 20, 2013 Post Office Box 1569 Carlsbad, NM 88221-1569 (575) 887-1191 1-800-658-2713 www.cityofcarlsbadnm.com

To: Dennis J. DeVany Chief, Essential Air Service Division, X-53 Office ofAviation Analysis EAS@dot.gov

Dear Mr. DeVany: DALEJANWAY MAYOR
JONR. TULLY CITYADMINISTRATOR

As the Mayor ofCarlsbad, New Mexico, I wanted tothankyou foryour continued dialog concerning the Essential Air Service contract for Carlsbad. After a review ofthe data available and conversations with numerous officials from other cities similarto ours and a careful review ofthe RFP, I respectfully disagree with the assertion made by DOTthat Boutique Option 1 does not meetthe standards set forth in the RFP. Further, upon careful reading ofthe RFP, my interpretation is that Boutique Option 1 meets both the spirit and letterofthe goals ofthe RFP which is, stated simply, is to provide adequate airservice to rural communities. Frankly, nonpressurized flights to Albuquerque, while appreciated, do not meet our needs as a community, as the following data will suggest. Isupport ourcommittee's recommendation ofa compromise in the consideration ofOption 2.
We have conducted aconsiderable amount of research to determinethe relationship between EAS and communitiesthat are similarto Carlsbad demographically. We've carefully studied DOT/EAS correspondence available on the web as well as the proposals by Boutique and NM Airlines. Furtherwe have again carefully reviewed the RFP. We have also corresponded with officials in some ofthe communities toverifythe informationthat we reviewed. What we found is that many communities have EAS relationships and also have service to dual hubs. (Attached is a summary document detailingsmaller communities with service totwo hubs which are covered by an EAS agreement.) DOT Secretarial Order 2012-5-17, served May 22, 2012, details ofone ofseveral examples of cities similar in size to Carlsbad serving dual hubs with pressurized air service through DOT/EAS program. Lewisburg, West Virginia, is atown of35,480 which is currently averaging 12-14 flights aweekto Atlanta and Dulles (Washington DC). The plane is a34 seat pressurized turboprop. The EAS contract subsidizes the travel at $3.48 million annually.

Ward 1 PAUL C. AGUILAR Ward2 J.R. DOPORTO COUNCILORS Ward3 JUDI WATERS G. SHIRLEY Ward4 DICK DOSS JANELL E. WHITLOCKOriginally, Lewisburg did not receive any competing bids. Silver Airways was finally awarded the bid through the process. Silver originally offered only one hub, that being Atlanta, but through negotiations asecond hub (Dulles) was added. Below is a quote from Secretarial order 2012-5-15 page 7 paragraph 2.
"The City of Lewisburg, which received no competing bids, also fully supported Silver's Proposal. Mr. John Manchester, Mayor of Lewisburg, said that Silver's proposal"more than adequatelyaddresses ourcommunity's air service needs." We notethat Silver originallyproposed service onlyto Atlanta but as a result of negotiations between the Department and the airline, Silver added two additional optionsthat include service to Washington and Atlanta. The Department received comments from the community supporting service to both hubs."
In the period from 1990to 1998, Carlsbad had service from Mesa Airlines with atwin engine pressurized turboprop which provided service to both Albuquerque and Dallas. During those years we averaged over 20,000 origin/destination passengers peryear. We are currently averaging about 5,000 origin/destination passengers peryear overthe last 4 years. Some ofthis loss ofpassengers is attributableto servicing only one location; the other portion ofthe loss is likely attributable tothe lack ofa pressurized plane as well as a plane with limited seating. This loss in usage ofourAir Service is contrarytothe fact that ourCarlsbad-area population has grown considerably since the 1990's.
It has become clearthat a pressurized plane and service to Albuquerque is a necessity, both by businesses as well as retired individuals seekingtravel opportunities orthose travelingwith health care concerns. It is, most significantly, an economic necessity. Some ofthe reasons from the business perspective are: Carlsbad hosts the nation's only licensed nuclear repository and is supported heavily bythe Department of Energy's National Laboratories. (Sandia National Laboratories and Los Alamos National Laboratories}. Both of these labs are headquartered in or nearAlbuquerque. The local potash mines are the largest in the nation, employing over 2000 FTE's and contractors, these companies require thatflights to Albuquerque continue, allowingthem to reach home offices in Denver, Chicago and Santa Fe. Also, we have a need to regularlytransport medical supplies and ourveterans mustflyto Albuquerque for care atthe closest VA hospitals. In addition, travel to and from Washington DC and options forflights to DOE sites across the US which are east of Carlsbad are needed. Travel east through DFW is seen as a necessary enhancement. Southeast New Mexico is supportingthe economic growth ofthe nation through our production ofoil and natural gas. Energy companies working in and around Carlsbad need access to DFW to furthertheir business (we have the highest drilling rig count in the nation in Carlsbad and Eddy County atthis time). Access to Dallas is also critical for medical patients seeking cancer treatment or heart surgery, for example. Eddy County is also hometo the Federal law Enforcement Training Center and thousands ofstudents from across the nation travel to FLETC for Border Patrol, Air Marshall, Flight Deck, Fish 

### & Wildlife, BLM, and some State Police from different states, TSA Inspectors and Bureau of Indian Affairs training.Finally, there are the health needs ofour population. Travel to Albuquerque requires that we gain altitude to cross the mountains, making pressurization very importantto citizens with health care concerns. There were numerous other reasons forthis recommendation, but Iwanted to communicate some ofthe basics. I have revised the earlier recommendation from Boutique Option 1to Boutique Option 2 as what I see as a compromise to some ofthe concerns expressed in your prior correspondence. This option meets the need for a pressurized plane and includes 12 flights weekly to DFW and Albuquerque. This is the minimum service thatwe determine will fit the essential economic needs ofthe community and area. I am committed to working with you and DOT tothe end goal of meetingthe basic need for airtravel in and out ofthe community.
Sincerely,

# ~=------ Mayor Dale Janway Carlsbad, NM

Cc: United States SenatorTom Udall
United States Senator Martin Heinrich United States Congressman Steve Pearce Governor Susanna Martinez
Lt. GovernorJohn SanchezSome ofthe current similar EAS communities with dual hubs

Number round trip Destinations Airplane flights/weekto approved EAS EAS EAS TERM City /EAS Contract Population CompanyWinning EAS each destination for EAS Millions$ Order# or Proposal Docket#

2011-2013 El Dorado, AK 18,789 Seaport Air 18 (with a Hot Memphis & Dallas Love Field Pilatus PC-12/9 2.43**Hl2Z-2l.l~!2** Springs flight each (9-seat, week) Pressurized plane)
2012-2013, Burlington, lA 25,663 Air Choice One 12 each St. Louis & O'Hare, Chicago Grand Caravan 1.98**2QQJ-87~1** extensions (9-seat plane) to 2016 I !

-- 2012-2013, Decatur, IL 76,122 Air Choice One 18 each St. Louis & O'Hare, Chicago Grand Caravan 2.75 2QQ2-23l,)2!i,l extensions (9-seat plane) to2016
2012·2014 Alpena, Ml 10,483 SkyWest Airlines 12 (5 & 7) Minneapolis St.Paul & Detroit CRJ-200/50 3.09**2QQ2-Q~QQ** (50 seatjet)

2012-2014 Lewisburg/Greenbriar Co., WV 35,480 Silver Airways (Delta) 12 to 14 Atlanta & Dulles, Wash. DC SAAB 340 3.48**2QQ~-15553**

--·**~--·~-··"** -----·----·---·-··-··-·-····---·-··---**-·-·~-----** ------ -·-· -------··----.--- 

# I(34-seatTurboprop Plane)

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____ 2012-2014 Lebanon, NH 13,151 Cape Air 24 Boston & White Plains, NY Cessna 402C/9 2.35**2QQ~-14822** (9-seat, twin prop, pressurized plane)