# Before the United States Department of Transportation 

# Washington, DC February 15, 2013

Essential Air Service at KINGMAN, ARIZON A DOCKET-DOT-OST-1996-189 9 PAGE, ARIZON A DOCKET-DOT-OST-1997-269 4 PRESCOTT, ARIZON A DOCKET-DOT-OST-1996-189 9 SHOW LOW, ARIZON A DOCKET-DOT-OST-1998-440 9 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 PassengersAverageProposal Service Point(s) Hub(s) Served Round Trips Equipment Requirement Forecast FareNumber1 Page, Arizona Phoenix nonstop and/or Seasonal 1900-D$2,472,02812,750$118.17Denver one stop or 1936 Annual Dept.Los Angeles one stop2 Prescott, Arizona Denver one stop and/or 3 1900-D$2,094,32514,000$127.92Los Angeles non stop3 Show Low, Arizona Phoenix nonstop and/or 3 Summer 1900-D$1,672,0009,000$89.92Denver one stop 2 Winter4 Kingman, Arizona Los Angeles non stop 2 1900-D$1,635,1808,250$127.28and /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 eligibl e 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.