Order 2011-10-24

Served: October 31, 2011

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 31st of October, 2011

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 OST-1998-3502

DOCKET OST-1998-3503

DOCKET OST-1998-3496

DOCKET OST-1998-3497

DOCKET OST-1998-3498

Order Tentatively Selecting Carriers

Summary

By this order, the Department is tentatively selecting American Eagle Airlines to provide 

essential air service (EAS) at Garden City for $2,919,026 annual subsidy, and Great Lakes 

Aviation, Ltd., (Great Lakes) to provide EAS at Dodge City for $1,688,598, Liberal for 

$2,555,150, and Great Bend and Hays combined for $3,246,061 for a two-year period beginning 

when American Eagle inaugurates service at Garden City, or $10,408,835 total for both airlines. 

We set the subsidy rate for Great Lakes at all five communities from October 1 until American 

Eagle inaugurates its Garden City service at $10,999,748.

1

Background

By Order 2009-9-5 the Department selected Great Lakes to provide EAS to Dodge City, Garden 

City, Great Bend, Hays, and Liberal, Kansas, through September 30, 2011, at a combined annual 

subsidy rate of $8,897,565 for service with 19-seat Beech 1900 aircraft, with all service to 

Denver, except for Great Bend, which was to receive service to Kansas City. Order 2010-3-15 

approved an alternate service pattern whereby Great Lakes was allowed to provide Great Bend 

 

1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated funds.
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with Denver-only service, and Great Lakes has continued to provide Great Bend and the other 

communities with service to Denver. The current service and subsidy for the five communities is

as follows:

Dodge City, $1,842,749, twelve nonstops and twelve one-stops per week; 

Garden City, $1,884,303, thirty nonstops per week,

Great Bend, $1,257,617, twelve one-stops per week;

Hays, $1,954,327, twenty four nonstops per week;

Liberal, $1,958,570, eighteen nonstops per week.

As the contract for Great Lakes was due to expire on September 30, Order 2011-4-4 requested 

proposals for a new contract period with proposals due May 2. We received proposals from 

American Eagle, Multi-Aero, Inc., d/b/a Air Choice One (Air Choice), Great Lakes, Wings of 

Alaska, Inc., d/b/a Seaport Airlines (Seaport) , and SkyWest Airlines, Inc., d/b/a United Express 

We summarized these proposals, as shown in the following chart, and forwarded them to the 

communities and carriers for their comments.

Garden City Hays Dodge City Liberal Great Bend Total

Carrier Eagle Eagle

Subsidy $3,252,359 $3,252,359

Hub Dallas

Aircraft Regional Jets

Service 14 nonstops

Carrier SkyWest SkyWest SkyWest

Subsidy $1,970,295 $2,047,449 $4,017,744

Hub Denver Denver

Aircraft Brasilia Brasilia

Service 19 nonstops 14 nonstops

Carrier Great Lakes Great Lakes Great Lakes Great Lakes Great Lakes Great Lakes

Subsidy $2,329,498 $2,416,066 $2,278,126 $2,421,311 $1,554,748 $10,999,749

Hub Denver Denver Denver Denver Denver

Aircraft B-1900 B-1900 B-1900 B-1900 B-1900

Service 30 nonstops 24 nonstops 12 nonstops & 12 nonstops & 12 one-stops

12 one-stops 6 one-stops

Carrier SeaPort SeaPort SeaPort SeaPort

Subsidy $4,121,247 $4,749,985 $972,758 $9,843,990

Hub(s) Denver DEN and MCI Denver

Aircraft PC-12 PC-12 PC-12

Service 28 nonstops 28 nonstops 18 one-stops

Carrier Air Choice Air Choice Air Choice Air Choice Air Choice Air Choice

Subsidy $2,637,875 $2,045,143 $1,471,838 $869,926 $869,926 $7,894,708

Hub Wichita Wichita Wichita Wichita Wichita

Aircraft Caravan Caravan Caravan Caravan Caravan

Service 36 nonstops 35 nonstops 18 nonstops 12 one-stops & 12 nonstops

6 nonstops

Proposed aircraft type, frequency, and hubs are outlined in the chart above, but the following 

characteristics also apply. American Eagle‟s Garden City-only proposal provides for a 120-day 
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termination notice with no hold in. SkyWest‟s proposal was for Garden City and Hays, only. 

Although SkyWest calculated separate subsidy levels for each community, it presented its 

proposal as an all-or nothing package. Great Lakes‟ proposal was for all five communities, and it 

too was presented as an all-or-nothing package. Unlike SkyWest, Great Lakes did not separately 

break out the individual subsidy it requested for each community.2 SeaPort proposed service to 

three of the five communities. Its proposed service linked Dodge City with Great Bend to 

Denver, with Dodge City also getting one-stop service over Salina to Kansas City; service to 

Hays stood by itself. The service proposals of Air Choice One were proposed on a stand-alone 

basis for each community, except that the carrier proposes to link service for Liberal with Great 

Bend to Wichita.

On June 13 we received a request from Garden City for an extension until July 15 to submit 

comments. On July 8 we received another request for an extension from both Dodge City and 

Garden City through August 6, and by notice we granted those requests. 

Community Comments

On August 19 City Managers of Garden City and Dodge City signed a joint recommendation that 

was also endorsed by the State of Kansas. The joint recommendation proposed a regional 

partnership aimed to maximize “the benefits to the traveling public in both Dodge City and 

Garden City and strategies for funding the total amount of subsidy which would be required.” 

The regional partnership aimed to secure American Eagle‟s regional jet service from Garden City 

to Dallas that the nearby citizens of Dodge City could use as well as Garden City; and likewise 

service by Great Lakes from Dodge City to Denver that the nearby citizens of Garden City could 

use. The community and state also committed to providing their own subsidy to offset the higher 

level of subsidy required by American Eagle. “...the City of Garden City is committing a 

$333,333 annual subsidy to help lessen the financial impact of this regional plan on the Essential 

Air Service program. We will defer to your judgment as to how this money moves from the 

community to American Eagle.”

The Hays City Commission indicated it was pleased to have a wide array of proposals to select 

from and recommended the selection of Great Lakes. It indicated that a “major factor in the 

Commission[„s]” recommendation was the prospective runway closure at Hays that might require 

a service hiatus of between two and six months if DOT selected SkyWest, because Great Lakes‟ 

smaller Beech 1900 would be able to continue to operate to Hays during construction, while 

SkyWest‟s larger Brasilia would not. Also, SkyWest‟s proposed service at Hays would provide 

the community with less than ideal service because the first flight of the day would not originate 

in Hays. 

The Mayor of Liberal indicated his community favored the reselection of Great Lakes. He noted 

that “Great Lakes Aviation has had a presence in Liberal for many years and has provided great 

air transportation with good connections while being a good community partner.” 

 

2 The subsidy amounts at individual cities above were illustrated for the communities‟ benefit because Great Lakes 

did not provide separate rates for individual cities. We prorated the total requested annual subsidy of $10,999,748 in 

Great Lakes‟ proposal by the current subsidy rates for Great Lakes‟ service.
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The Great Bend Airport Manager recommended the selection of SeaPort, based on that carrier‟s 

demonstrated reliability, newer aircraft, lower fares, increased frequency, and a better marketing 

program to promote growth, and a lower subsidy bid than the other carriers. He indicated that 

Great Bend‟s second preference would be for Great Lakes. 

Decision for Dodge City and Garden City

Our longstanding program practice has been to defer to communities‟ wishes whenever possible 

within budgetary limitations, but almost always when it would require no additional subsidy. 

Consistent with that practice, we will tentatively select American Eagle to serve Garden City at 

an annual subsidy rate of $2,919,026 and will tentatively select Great Lakes to provide EAS at 

Dodge City at an annual subsidy rate of $1,688,598.

Absent the first-of-its-kind agreement between Dodge City and Garden City discussed earlier, 

our only viable option3 would be to select Great Lakes to serve both communities for an 

estimated total annual subsidy of $4,607,624. However, in this case Dodge City and Garden City 

have worked together to come up with a regional plan that gives each community the service it 

wants at no additional subsidy cost to the Department. Essentially, Dodge City will give up 

enough service at its local airport to make the combined subsidies for American Eagle‟s service

at Garden City and Great Lakes‟ service at Dodge City cost no more than the combined Dodge 

City-Garden City subsidy Great Lakes originally proposed. Both communities support the 

selection of American Eagle to provide two nonstop Garden City-Dallas round trips a day (14 a 

week) for $2,919,026. This reflects American Eagle‟s original bid of $3,252,359, less $333,333 

that Garden City and the state have committed to provide. In this way, the region essentially 

would receive nonstop service to two different hubs. In order to be subsidy neutral to the 

Department, that leaves $1,688,598 of EAS subsidy for Dodge City‟s air service. The 

communities and Great Lakes informally agreed in their August 19 joint recommendation to a 

service pattern of three nonstop Dodge City-Denver round trips a day (17 a week) for $1,688,598

annually. 

The communities‟ strong preference for this package -- American Eagle at Garden City and Great 

Lakes at Dodge City -- reflects the synergies of each proposal. Dodge City is only 43 miles from 

Garden City, so passengers at either community may choose to drive to the other community‟s 

airport in order to receive nonstop service to a different large hub without having to make a 

connecting flight and backhaul -- both Garden City and Dodge are located on a virtual straight 

line between Denver and Dallas, Denver being northwest of each community and Dallas being 

southeast. Furthermore, at Garden City and Dodge City, each of the two carriers has a codeshare relationship with the major carrier that hubs at each airport. Also, while we find that

American Eagle‟s subsidy request is reasonable for the service it proposes, we are aware that in 

 

3 We would not select SkyWest because it proposed a two-city package of Hays and Garden City and neither 

community supports SkyWest. Moreover, due to planned runway construction next year, SkyWest could not legally 

serve Hays for several months whereas Great Lakes can with its smaller, 19-seat aircraft. We would not select Air 

Choice One because the communities are not willing to waive their rights and accept 9-seat aircraft. We would not 

select Seaport because it proposed a two-city package (Dodge City and Great bend), and Dodge City affirmatively 

refused to waive the 9-seat guarantee.
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several EAS markets where it has recently begun subsidized EAS, traffic has burgeoned4 and we 

fully anticipate that subsidy will decrease at the end of the contract at these communities as well 

as Garden City.

As stated in Order 2011-4-4, we retain the right in all carrier-selection proceedings to negotiate 

proposals or to solicit a new round of proposals. In this case, we are tentatively selecting a 

combination of options that were not submitted originally, i.e., Great Lakes did not submit a 

four-city package. Therefore, to be procedurally fair to all the parties, we will issue this order on 

a show-cause basis and allow all interested parties, i.e. Dodge City, Garden City, Air Choice 

One, American Eagle, Great Lakes, Seaport and SkyWest, ten days from the service date of this 

order to show cause why we should not make this tentative decision final. 

Decision for Great Bend, Hays, and Liberal

We have decided not to select either Air Choice One or SeaPort. Both carriers proposed service 

with single-engine aircraft, and the EAS statute requires that service be provided with twinengine aircraft unless the community waives that guarantee. Only Great Bend waived that 

guarantee by recommending SeaPort. However, SeaPort‟s proposal at Great Bend contemplates 

one-stop service over Dodge City, and Dodge City did not waive its guarantee of twin-engine 

aircraft, so we cannot select SeaPort at either Great Bend or Dodge City.

We have decided not to select SkyWest at Hays. SkyWest proposed service at Garden City and 

at Hays. However, the carrier indicated that its proposal could only be selected as a two-city 

package. While SkyWest‟s combined subsidy request of $4,017,744 is very attractive, Hays 

recommends that we select Great Lakes. SkyWest‟s proposal at Hays contemplates inside-out 

service – basing the aircraft in Denver rather than at an EAS community, and thus the first flight 

of the day would be out of the hub and miss the morning connecting banks at Denver. In 

addition, the runway at Hays will be under construction for up to half-a-year, and SkyWest‟s 

larger Brasilias would be unable to operate during that time, while Great Lakes‟ smaller B-1900s

would. That leaves Great Lakes as the only option for Great Bend, Hays, and Liberal. 

While we are tentatively selecting Great Lakes at Great Bend, Hays, and Liberal, Great Lakes did 

not propose separate subsidy rates for each community but, rather, a five-city package showing 

only a total expense forecast and individual community revenue forecasts. Therefore we have 

calculated individual subsidy rates based on Great Lakes‟ original proposal. On the expense side, 

we have used Great Lakes‟ unit cost per block hour at each community based on its original 

proposal, including a five percent profit markup, and then applied those unit costs to the block 

hours at Great Bend, Hays, and Liberal based on Great Lakes‟ initial service proposal and the 

block times required to provide that service as reported by the carrier on its T-100 Segment 

report. For revenue, we used Great Lakes‟ own forecasts. Based on these calculations, as shown 

 

4 These communities are Grand Island, Nebraska, and Joplin, Missouri. At Manhattan, Kansas, American Eagle 

replaced Great Lakes‟ subsidized service and began providing subsidy-free service to Dallas and now Chicago 

O‟Hare.
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in Appendix B, Liberal would require an annual subsidy of $2,555,150, and Great Bend and Hays 

a combined annual subsidy of $3,246,061.5 

We are concerned that the subsidy Great Lakes has requested at these five communities has 

increased over the last two rate cycles by more than 20 percent each cycle, from $7,253,299 to 

$8,897,566 to $10,999,717.

6 We remain concerned about the level of subsidy required at these 

communities, and will closely review the level of service and the corresponding subsidy needed 

at each community at the end of this rate cycle. We anticipate that subsidy need for both 

American Eagle and Great Lakes in the next rate cycle will decrease substantially. 

Transitional Rate

Consistent with established program policy, we typically use a carrier‟s prospective proposal that 

was submitted during the competitive bid process to establish a bridge rate until the new carrier 

inaugurates service. After reviewing Great Lakes‟ proposed rate for the five-community 

package, we find that it appears reasonable for the proposed service levels. We will therefore 

establish it as the final rate for the carrier‟s service at Dodge City, Garden City, Great Bend, 

Hays, and Liberal for the period from October 1, 2011, until American Eagle inaugurates service 

at Garden City and Great Lakes adjusts its service to the level we are tentatively selecting.

Service Transition

Provided that our tentative selection becomes final, we expect Great Lakes and American Eagle to 

work together to make a smooth transition at Garden City. In that regard, before Great Lakes 

suspends its service to Garden City, 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. 

Certifications

Before the Department can pay compensation, American Eagle Airlines and Great Lakes 

Aviation, Ltd, must provide properly executed certifications that each is in compliance with the 

regulations regarding drug-free workplaces and nondiscrimination, as well as the regulations 

governing lobbying activities.

Carrier Fitness

49 U.S.C. 41737(b) requires that we find an air carrier fit, willing, and able to provide reliable 

service before we may subsidize it to provide essential air service. American Eagle 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. We have 

contacted the Federal Aviation Administration, and it has raised no concerns that would 

negatively affect our fitness finding. We therefore conclude that the carriers remain fit to 

conduct the operations proposed here.

 

5 Because Great Bend receives one-stop service over Hays, any allocation of the total subsidy between the two 

communities would be arbitrary.

6 This rate reflects the transitional rate before American Eagle inaugurates service. The annual subsidy by the 

Department proposed by this order is $10,408,835.
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This order is issued under authority delegated in 49 CFR 1.56a(f).

ACCORDINGLY,

1. We direct the parties to show cause within ten (10) days of the service date of this order why 

we should not select American Eagle Airlines to provide essential air service at Garden City, as 

described in Appendix C, and Great Lakes Aviation, Ltd., to provide essential air service at 

Dodge City, Great Bend, Hays, and Liberal, Kansas, as described in Appendix C.

2. If no objection is filed within the designated time, or if no timely-filed objection raises 

material issues of fact, we hereby delegate authority to the Director, Office of Aviation Analysis, 

to make the above rates final;

3. We set the final rates for Great Lakes Aviation, Ltd., at Dodge City, Garden City, Great Bend, 

Hays, and Liberal, Kansas, from October 1, 2011, until American Eagle inaugurates essential air 

service at Garden City, as described in Appendix D;

4. We direct Great Lakes Aviation, Ltd., and American Eagle Airlines, 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 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;

5. We find that Great Lakes Aviation, Ltd., continues to be fit, willing, and able to operate as a 

commuter carrier and capable of providing reliable essential air service at Dodge City, Garden 

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

6. We find that American Eagle Airlines continues to be fit, willing, and able to operate as a 

certificated carrier and capable of providing reliable essential air service at Garden City, Kansas;

7. These dockets will remain open until further order of the Department; and
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8. We will serve copies of this order on the State of Kansas, the communities of Dodge City, 

Garden City, Great Bend, Hays, and Liberal, Kansas, American Eagle Airlines, Multi-Aero, Inc., 

d/b/a Air Choice One, Wings of Alaska, d/b/a SeaPort, SkyWest Airlines, Inc., and Great Lakes 

Aviation, Ltd.

By:

Susan Kurland

Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available on the World Wide Web at

http://www.regulations.gov
Appendix A

Nonstop Great Circle Miles, 

To Dallas (DFW) Wichita (ICT)

DDC 374 DDC 139

GCK 404 GCK 181

GBD 390 GBD 91

HYS 429 HYS 130

LBL 362 LBL 199

To Denver (DEN) Miscellaneous

DDC 292 LBL-GCK 62

GCK 250 GCK-DDC 43

GBD 329 DDC-HYS 83

HYS 297 HYS-GBD 41

LBL 279 DDC-GBD 72

Dodge City, DDC; Garden City, GCK; Great Bend, GBD; Hays, HYS, and Liberal (LBL).
Appendix B

Show Cause,

American Eagle Show Cause, Great Lakes 

Garden City Liberal Dodge City Hays Great Bend Great Lakes

Dallas Denver Denver Denver Hays Total

RT/Week 14 18 17 24 12

Departures 1,431 1,840 1,680 1/ 2,454 1,227 3,681

Blk. Time 92 80 81 83 25

Blk. Hrs. 2,183 2,454 2,268 3,395 511 3,906

Unit Cost $4,314.43 $1,462.32 $1,419.99 $1,462.32 $1,462.32 $1,462.32

Economic Cost $9,418,405 $3,588,416 $3,220,537 $4,963,976 $747,587 $5,711,563

Pax. 39,347 9,000 14,000 20,000 2,200 22,200

Pax. Fare $156.71 $114.10 $108.75 $109.97 $114.05

Pax. Revenue $6,166,046 $1,026,900 $1,522,500 $2,199,400 $250,910 $2,450,310

Total Revenue $6,166,046 $1,033,267 $1,531,940 $2,213,036 $252,466 $2,465,502

Community Offset

Agaisnt Subsidy $333,333

Subsidy $2,919,026 $2,555,150 $1,688,598 $2,750,940 $495,121 $7,489,809

Combined Annual Subsidy $10,408,835

1/ 17/week x 52 weeks *2 directions x 95% completion.

Note: Great Lakes' block times are from T-100 Segment Report
Appendix C

Page 1 of 4

American Eagle Airlines, Essential Air Service 

to be Provided to Garden City, Kansas

Effective Period: Two year period beginning when American Eagle begins full EAS through the 

24th month thereafter.

Service: 14 nonstop round trips per week to Dallas.

Aircraft: Embraer Regional Jet.

Rate per Eligible One-Way Flight: $2,040 1

Weekly Ceilings: $57,120 2

Note: 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 this rate, 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 contract 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 are not currently available for performance under this order beyond November 18, 2011. The Government‟s 

obligation for performance under this order beyond November 18, 2011, is subject to the availability of appropriated 

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 November 18, 2011, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond November 18, 2011, the 

Department will provide notice in writing to the carrier.

All claims for payment must be submitted within 60 days of the last day of service provided under this order.

 

1 Annual compensation of $2,919,026 divided by 1,431 estimated annual completed departures and arrivals:

14 flights/week x 2 directions x 52 weeks x 98 percent completion.

2 $2,040 x 28 flights per week = $57,120.
Appendix C

Page 2 of 4

Great Lakes Aviation, Ltd., Essential Air Service to be 

Provided to Dodge City, Kansas

Effective Period: Two-year period beginning when American Eagle begins full EAS (at Garden

City) through the 24th month thereafter.

Dodge City: 17 nonstop round trips per week to Denver.

Aircraft: Beech 1900.

Rate per Eligible One-Way Flight: $1,005 1

Weekly Ceilings: $34,170 2

Note: 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 this rate, 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 contract 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 are not currently available for performance under this order beyond November 18, 2011. The Government‟s 

obligation for performance under this order beyond November 18, 2011, is subject to the availability of appropriated 

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 November 18, 2011, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond November 18, 2011, the 

Department will provide notice in writing to the carrier.

All claims for payment must be submitted within 60 days of the last day of service provided under this order.

 

1 Annual compensation of $1,688,598 divided by 1,680 estimated annual completed departures and arrivals:

17 flights/week x 2 directions x 52 weeks x 95 percent completion.

2 $1,005 x 34 flights per week = $34,170.
Appendix C

Page 3 of 4

Great Lakes Aviation, Ltd., Essential Air Service to be Provided to 

Great Bend and Hays, Kansas

Effective Period: Two year period beginning when American Eagle begins full EAS (at Garden 

City) through the 24th month thereafter.

Great Bend: 12 one-stop round trips per week to Denver with Beech 1900 aircraft.

Hays: 24 nonstop round trips per week to Denver with Beech 1900 aircraft.

Great Bend Hays

Rate per One-Way Flight:

1 $882 $882

Weekly Ceiling: $21,168 2 $42,336 3

Note: 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 this rate, 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 contract 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 are not currently available for performance under this order beyond November 18, 2011. The Government‟s obligation for 

performance under this order beyond November 18, 2011, is subject to the availability of appropriated 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 November 18, 2011, until funds are made available to the Department for performance. If funds are not 

made available for performance beyond November 18, 2011, the Department will provide notice in writing to the carrier.

All claims for payment must be submitted within 60 days of the last day of service provided under this order.

 

1 Annual compensation of $3,246,061 divided by 3,681 estimated annual completed departures and arrivals:

Great Bend: 12 flights/week x 2 directions x 52 weeks x 98 percent completion x 313/312 = 1,227

Hays: 24 flights/week x 2 directions x 52 weeks x 98 percent completion x 313/312 = 2,454.

2 $882 x 24 flights per week = $21,168.

3 $882 x 48 flights per week = $42,336.
Appendix C

Page 4 of 4

Great Lakes Aviation, Ltd., Essential Air Service to be 

Provided to Liberal, Kansas

Effective Period: Two year period beginning when American Eagle begins full EAS (at Garden 

City) through the 24th month thereafter.

Liberal: 18 nonstop round trips per week to Denver with Beech 1900 aircraft.

Rate per Eligible One-Way Flight: $1,389 1

Weekly Ceilings: $50,004 2

Note: 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 this rate, 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 contract 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 are not currently available for performance under this order beyond November 18, 2011. The Government‟s 

obligation for performance under this order beyond November 18, 2011, is subject to the availability of appropriated 

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 November 18, 2011, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond November 18, 2011, the 

Department will provide notice in writing to the carrier.

All claims for payment must be submitted within 60 days of the last day of service provided under this order.

 

1 Annual compensation of $2,555,150 divided by 1,840 estimated annual completed departures and arrivals:

18 flights/week x 2 directions x 52 weeks x 98 percent completion x 313/312.

2 $1,389 x 36 flights per week = $50,004.
Appendix D

Great Lakes Aviation, Ltd., Essential Air Service to be Provided to Dodge City, Garden 

City, Great Bend, Hays, and Liberal, Kansas

Effective Period: October 1, 2011, until the start of full EAS by American Eagle at Garden City, Kansas.

Dodge City: 12 nonstop and 12 one-stop round trips per week to Denver with Beech 1900 aircraft.

Garden City: 30 nonstop round trips per week to Denver with Beech 1900 aircraft.

Great Bend: 12 one-stop round trips per week to Denver with Beech 1900 aircraft.

Hays: 24 nonstop round trips per week to Denver with Beech 1900 aircraft.

Liberal: 18 nonstop round trips per week to Denver with Beech 1900 aircraft.

Dodge City Garden City Great Bend Hays Liberal

Rate per One-Way Flight:

1 $996 $996 $996 $996 $996

Weekly Ceilings:

2 $47,808 $59,760 $23,904 $47,808 $35,856

Note: 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 this rate, 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 contract 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 are not currently available for performance under this order beyond November 18, 2011. The Government‟s obligation for performance 

under this order beyond November 18, 2011, is subject to the availability of appropriated 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 November 18, 2011, until 

funds are made available to the Department for performance. If funds are not made available for performance beyond November 18, 2011, the 

Department will provide notice in writing to the carrier.

All claims for payment must be submitted within 60 days of the last day of service provided under this order.

 

1 $10,999,748 annual compensation, divided by 11,042 estimated annual completed departures and arrivals, 

calculated as follows:

Dodge City, 48 flights/week x 52 weeks x 98 percent completion x 313/312 = 2,454;

Garden City, 60 flights/week x 52 weeks x 98 percent completion x 313/312 = 3,067;

Great Bend, 24 flights/week x 52 weeks x 98 percent completion x 313/312 = 1,227;

Hays, 48 flights/week x 52 weeks x 98 percent completion x 313/312 = 2,454;

Liberal, 36 flights/week x 52 weeks x 98 percent completion x 313/312 = 1,840.

2 Dodge City, 48 flights/week x $996 = $47,808;

Garden City, 60 flights/week x $996 = $59,760;

Great Bend, 24 flights/week x $996 = $23,904;

Hays, 48 flights/week x $996 = $47,808;

Liberal, 36 flights/week x $996 = $35,856.