Before the United States Department of Transportation

Washington, DC

February 15, 2013

Essential Air Service at

KINGMAN, ARIZONA DOCKET-DOT-OST-1996-1899

PAGE, ARIZONA DOCKET-DOT-OST-1997-2694

PRESCOTT, ARIZONA DOCKET-DOT-OST-1996-1899

SHOW LOW, ARIZONA DOCKET-DOT-OST-1998-4409

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

This document contains Great Lakes Aviation, Ltd.'s response to Order Requesting Proposals

2013-1-8.

Great Lakes Aviation, Ltd. is pleased to submit this proposal, as an inseparable package,

for Page, Prescott and Show Low. Our Kingman proposal may be considered a stand alone proposal. 

Per the instruction in the Order, these proposals represent Great Lakes' final and only proposals. 

In response to the per passenger cost concerns related to Show Low, as mentioned in the Request

for Proposals, Great Lakes has proposed seasonal schedule adjustments to reduce cost. We

are also prepared to commit to an all Phoenix hub schedule if the Show Low community so desires.

Great Lakes and the Kingman, AZ community recognize the need to increase passenger traffic. 

In this regard, it should be noted that traffic has been recently rerouted from the Phoenix, AZ hub 

to the Los Angeles, CA (LAX) hub. This service pattern change, in combination with

aggressive joint marketing efforts, has been designed to stimulate additional traffic by 

offering passengers the opportunity to connect to a larger hub with incremental connections

to the domestic and international air transportation system.

All proposals contemplate the use of 19 seat Beech 1900D Airliner equipment.

Questions and comments may be referred to:

Michael O. Matthews

Great Lakes Aviation, Ltd.

1022 Airport Parkway

Cheyenne, WY 82001

(307) 432-7000

Great Lakes' proposals intend conveniently timed connecting services to our code-share partners 

(United and Frontier). Additionally, Great Lakes maintains interline ticketing and baggage agreements 

with the majority of the other carriers, including interline e-ticketing agreements with American Airlines, 

Delta Airlines, Frontier Airlines, United Airlines and U.S. Airways. All of which will offer passengers 

traveling to and from these communities additional connection opportunities.
Table of Contents:

Subsidy 

Proposal Service Point(s) Hub(s) Served Round Trips Equipment Requirement 

Number

1 Page, Arizona Phoenix nonstop and/or Seasonal 1900-D $2,472,028 

Denver one stop or 1936 Annual Dept.

Los Angeles one stop

2 Prescott, Arizona Denver one stop and/or 3 1900-D $2,094,325 

Los Angeles non stop

3 Show Low, Arizona Phoenix nonstop and/or 3 Summer 1900-D $1,672,000 

Denver one stop 2 Winter

4 Kingman, Arizona Los Angeles non stop 2 1900-D $1,635,180 

and /or Phoenix nonstop
Great Lakes Aviation, Ltd.

Annual Compensation Requirements for Essential Air Service at

Page, Arizona

1936 Departures Annually as has been supported per DOT Order 2009-8-5

(at 98 percent completion)

Departures: 1,936

Operating Revenues:

Passenger: PGA 12,750 psgrs at $118.17 $1,506,668

Other: (at 0.62% of passenger revenue) $9,341

Total Operating Revenues: $1,516,009

Operating Expenses:

Direct: Aircraft and Hull Insurance $370,475

Fuel and Oil $1,253,955

Flying Operations $436,689

Maintenance $656,418

Total Direct Expenses: $2,717,537

Total Indirect Expenses: $1,080,593

Total Operating Expenses: $3,798,130

Operating Loss ($2,282,121)

Profit Element (5.0% of Total Operating Expenses) $189,907

Annual Compensation Requirement: $2,472,028

Current published schedules should be used as sample service levels. Hub Options eligible

for subsidy are Phoenix (non stop) and/or Denver (one stop) or Los Angeles (one stop).

In response to the request by the City of Page, Great Lakes will commit to provide 

year-around two round trip serivce to Phoenix including a well timed morning departure.

At Great Lakes discretion, Great Lakes would operate four peak day round trip departures

with reduced service to two round trips per day in off peak seasonal periods.

No less than 1,936 annual departures would be operated assuming a 98% completion factor.
Great Lakes Aviation, Ltd.

Annual Compensation Requirements for Essential Air Service at

Prescott, Arizona

Three Round Trips

(at 98 percent completion)

Departures: 1,835

Operating Revenues:

Passenger: PRC 14,000 psgrs at $127.92 $1,790,880

Other: (at 0.62% of passenger revenue) $11,103

Total Operating Revenues: $1,801,983

Operating Expenses:

Direct: Aircraft and Hull Insurance $370,475

Fuel and Oil $1,273,906

Flying Operations $500,595

Maintenance $691,281

Total Direct Expenses: $2,836,257

Total Indirect Expenses: $874,513

Total Operating Expenses: $3,710,770

Operating Loss ($1,908,786)

Profit Element (5.0% of Total Operating Expenses) $185,538

Annual Compensation Requirement: $2,094,325

Current published schedules should be used as sample service levels.

Denver (one stop) and/or Los Angeles nonstop will be utilized for hub services.
Great Lakes Aviation, Ltd.

Annual Compensation Requirements for Essential Air Service at

Show Low, Arizona

Three Round Trips in Summer Schedules - Two Round trips in Winter Schedules

(at 98 percent completion)

Departures: 1,792

Operating Revenues:

Passenger: SOW 9,000 psgrs at $89.92 $809,280

Other: (at 0.62% of passenger revenue) $5,018

Total Operating Revenues: $814,298

Operating Expenses:

Direct: Aircraft and Hull Insurance $370,475

Fuel and Oil $721,802

Flying Operations $263,907

Maintenance $495,745

Total Direct Expenses: $1,851,930

Total Indirect Expenses: $515,972

Total Operating Expenses: $2,367,902

Operating Loss ($1,553,604)

Profit Element (5.0% of Total Operating Expenses) $118,395

Annual Compensation Requirement: $1,672,000

Current published schedules should be used as a sample service level. 

Phoenix Hub (nonstop) and/or Denver (one stop alternate Hub)

No less than 1,082 departures would be operated from May 1st through October 31st and

no less than 710 departures would be operated from November 1st through April 30th.

No upline scheduling restrictions.
Great Lakes Aviation, Ltd.

Annual Compensation Requirements for Essential Air Service at

Kingman, Arizona

Two Round Trips

(at 98 percent completion)

Departures: 1,227

Operating Revenues:

Passenger: IGM 8,250 psgrs at $127.28 $1,050,060

Other: (at 0.62% of passenger revenue) $6,510

Total Operating Revenues: $1,056,570

Operating Expenses:

Direct: Aircraft and Hull Insurance $370,475

Fuel and Oil $806,388

Flying Operations $276,136

Maintenance $415,523

Total Direct Expenses: $1,868,522

Total Indirect Expenses: $695,050

Total Operating Expenses: $2,563,571

Operating Loss ($1,507,001)

Profit Element (5.0% of Total Operating Expenses) $128,179

Annual Compensation Requirement: $1,635,180

Current published non stop Los Angeles Hub schedules can be used as a sample service level.

As a same rate alternative, Great Lakes would offer a nonstop Phoenix hub service pattern. 

No upline scheduling restrictions.