## u.s.Departmentof Transportation OfficeoftheSecretary ofTransportation



### July 8, 2010 The Honorable Douglas A. 

### Baker Mayor ofthe City ofFranklin Franklin City Hall 430 13th 

### St. Franklin, PA 16323 Dear Mayor Baker: 1200 NewJersey Avenue, SE Washington, DC 20590



### I would like to update you on the essential air service (EAS) situation at Franklin and give you an opportunity to submit any comments ifyou wish. In

### anticipation ofthe end ofGulfstream's current contract on September 30,2010, the Department issued Order 2010-5-22, May 19, 2010, to solicit proposals from all interested air carriers to provide EAS atFranklin. In

### response to that order, we received proposals from two carriers: Gulfstream, the incumbent, and Charter Air Transport. Copies ofthe proposals maybe accessed online through the Federal Docket Management System (FDMS) at: http://www.regulations.gov/by entering "DOT-OST1997-2523" inthe "Enter Keyword or ID" field. Gulfstreamproposes to continue its 18 round trips per week to Cleveland Hopkins International Airport, operating on a Cleveland

- DuBois

- Oil CitylFranklin

- Cleveland or a Cleveland

- Oil CitylFranklin

- DuBois

- Cleveland routing, for an annual subsidy of$915,101. This assumes Oil CitylFranklin's continued eligibility in the EAS program, which the Department is reviewing inthe context ofthe proposals received from both carriers and any comments you provide onbehalfofthe community. All service would be operated as Continental Connection, utilizing Beech 1900D aircraft. We are also currentlyreviewing Gulfstream's compensation requirement. Charter Air Transport proposes to operate 12 nonstop round trips perweek to Pittsburgh utilizing 19-seatJetstream 32 aircraft, for an annual subsidy of$1,375,684. Mypurpose in writing to you at this time is to request anyfinal comments you might have on the carriers' service and subsidy proposals before we submit a recommendation onthe carrier-selection issue to the Assistant Secretary for Aviation and International Affairs.- 2 -
Please note that the average passenger fares shown in each proposal do not necessarily reflect the average local fare Franklin passengers would actually pay, but, rather, reflect a prorated portion ofthe total ticket price, e.g., the Oil CitylFranklin

- Cleveland portion of an Oil City/Franklin

- Cleveland

- Seattle/Tacomaticket that the subsidized carrier would realize. Also, the fare shown is net ofcertain charges such as Federal transportation security fees, excise or ticket taxes, and PassengerFacility Charges. Of course, carriers have the discretionto charge fares they deem appropriate, and the passenger fares presented in their proposals have been developed for subsidy rate computationpurposes only. Based on the cost elements incorporated in the carrier's computation summaries, Gulfstream would have to realize passengerfares comparable to the averages shown in their proposals in order to achieve break-even orprofitable operations without subsidy. You should also note that the schedules that the carrierhas submitted are illustrative only, and that they may make schedule changes to reflect changing conditions, 

### e.g., to better meet shifting connecting bank times at the hub. The Department expects subsidized air carriers to maintain well-timed and well-spaced flights in order to ensure full compensation. We request that you review each proposal and service option and submit any comments you mayhave before we submit a recommendation to the Assistant Secretary. As you are aware, Oil CitylFranklin is well over the statutory $200 subsidy perpassenger cap, and the community's continued eligibilityremains uncertain. As a result, your comments should address the features ofthe various carrierproposals that you believe will result in increased passenger levels to lower the subsidy perpassengerbelow the $200 cap. We ask that you submit any comments you mayhave as soon as possible, but in any case no later than July 30,2010. We will carefully consider your comments before we submit a recommendation to the Assistant Secretaryfor a decision. We appreciate that there are significant issues for you to consider, so ifyou have any questions or ifyou find that you need additional time to draft your comments, please let us know. Please send your comments via e-mail to EAS@dot.gov orbyfax to 202-366-7638. If you have any questions, please feel free to contact Kevin Schlemmer ofmy staffat kevin.schlemmer@dot.gov or 202-366-3176. Similar letters have been sent to the civic officials ofthe other EAS communities at issue here. Sincerely, 

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# ('\ J C 1/ Dennis J. De any 

### c-:;J Chief, Essential Air ServiceDivision, X-53 Office ofAviation Analysis