### RTMEN T O F

hl k 

### A Departmen t

of Transportatio n WASHINGTON , B.C . 

### 9: n

TH E CIT Y O F PIERRE , SOUT H DAKOT A PIERR E MUNUCIPA L AIRPOR T 9 0 Da y notic e o f

Mesab aAviation , Inc . an d Pinnacl e Airlines , Inc . o f terminatio n o f

servic e A t Pierre , S D Docke t OST-2011

- 

## OK^' ^ 

## J COMMENT S O F TH E CIT Y O F PIERRE , SOUT H DAKOT A

PIERR E MUNICIPA L AIRPOR T I N RESPONS E T O TH E NOTIC E O F TERMINATIO N O F SERVIC E Communication s wit

h respec t t o thi s documen t

shoul db e sen

t to : Th e Honorabl e Lauri e Gil l Mayo r Pierre , Sout

h Dakot a 22 2 E . Dakot aAvenu e Pierre , S D 5750 1 605-295-709 3 Email : Laurie.qill@ci.pierre.sd.u s

Date dJul y 31,201 :O n behal f o f th e Cit y o f Pierre , Soutl i Dakota , I woul dlike to expres s ou r concer n an d objectio n regardin g th e los s o f Pierre ai r servic e b y Mesab aAviation , Inc . an dPinnacl e Airlines , In c operatin g a s "Delt aConnection ' carrier s t o Minneapolis , Minnesota . Th e notic e outline s plan s to retire all turbopro p aircraf t andnumerou s smal l je t

aircraf t operate db

y Mesab aandPinnacle . I n particular , ail Saa

b 34 0 aircraf

t operate dby Mesab a fo r Delt aConnectio n wil l b e retire db y yea r end . Th e notic e suggeste dtha t Grea t Lake s Airline s intend s to submi t abi dt o replac e th e Delt aConnectio n servic e shoul dth e Departmen t

issu e areques t

fo r proposal s t o selec t

a n EA S carrier . Our

understandin g i s that ther e shoul db e n o questio n tha t th e Departmen t

wil l issu e areques t

fo r proposal s t o selec t a n EA S carrier . Th e servic e fromPierre t o Minneapoli s i s acritical eastboun dlink t o th e national ai r transportatio n syste mjus t a s th e curren t

servic e fromPierr e to Denve r satisfie s th e nee d fo r westboun dservice . Thi s wa s las t reviewe dby th e Departmen t an dadecisio n provide di

n Orde r 2002-3-22 . Decisio n Ou r las t revie w o f

Pierre' s essentia l ai r

servic e determinatio n wa s conducte di n 19S 8 (Orde r 88-1-42 , Januar y 20,1988 ) an dspecifie dservic e t o bot h Denve r an d Minneapolis/St . Paul . Th e Department' s polic y ove r th e pas t decad e ha s bee n t o terminat e subsid y fo r

servic e t o secon dhub s a s th e program' s resource s hav e bee n stretche dthinne r

an dthinner . An dw e continu e t o believ e tha t t o b e asoun d policy . Man y o f

th e dual-hu b designation s wer e establishe dtw o decade s ago , wel l befor e th e carrier s develope dsophisticate dhub-and-spok e systems . Thes e well

develope dhub s provid e acces s t o th e nationa l ai r transportatio n system . However , Pierr e i s uniqu e i n acoupl e o f respects . First , o

f course , i t

i s th e stat e capita l o f Sout h Dakota . A s such , th e los s o f Grea t Lakes ' servic e betwee n Pierr e an dDenve r woul dad daconsiderabl e amoun t o f trave l tim e fo r

tim e fo r stat e governmen t employee s relyin g o n Grea t Lakes ' nonsto p servic e a s amean s t o an dfro mwor k a t th e stat e capital . Second , th e distance s ar e ver y long . Fo r example , th e nonsto p ai r mile s t o Denve r

an dMinneapoli s ar e 38 5 an d350 , respectively , whil e on e prove s eastboun dconnection s an dth e othe r westbound . I f

Denver-boun dpassenger s ha d t o trave l vi aMinneapolis , the y woul dfirst trave l 35 0 mile s t o Minneapolis , the n 68 0 mile s fro mMinneapoli s to Denver , fo r atota l i n exces s of

100 0 mile s fo r

wha t i s a 385-mil e nonsto p flight . Pu t anothe r way , westboun dpassenger s woul dhav e t o trave l abou t

70 0 extr amile s - roughl y 35 0 eas t t o Minneapoli s an d35 0 bac k wes t jus t t o ge t bac k wher e the y started . Resource s continu e to tighte n however w e believ e th e Department' s assessmen t o f th e Pierr e ai r servic e need s continue s to b e valid . Nonsto p ai r servic e fro

mPierre to both Denve r an dMinneapoli s i s stil l require ddu e to th e uniqu e geograph y o f th e state capital o f Sout h Dakota . W e understan dtha

t Delt aConnectio n carrier s inten dt o continu e servic e fro mPierr e t o Minneapoli s unti l areplacement servic e i s i n plac e howeve r thi s i s no t

clea r in th e notic eo f

termination . Th e notic e acknowledge dtha t th e discontinuatio n o f

servic e appeare dt o caus e servic e to dro p belo w th e EA S guarante e level s establishe db y th e Departmen t

bu t lef t ope n th e questio n o f

whether o r no t th e Departmen t

woul drequire ahold-in . W e believ e tha

t thi s shoul db e clear . Th e curren t Grea t Lalce s servic e fro

mPierr e to Denve r doe s no t satisf y th e EA S guarante e leve l and , a s such , w e understan dthat th e Departmen t wil l issu e ahold-i n order

requirin g acontinuatio n o f servic e unti l areplacemen t carrie r i s in place . W e hav e met

wit h Grea t Lake s an dwelcom e thei r

interes t i n expandin g thei r

presenc e a

t Pierr e wit h servic e to Minneapolis . I t i s importan t

t o note tha t

flight s fro

mPierre t o Minneapoli s average d15. 8 passenger s pe r departur e fo

r th e 1 2 month s endin g April , 201 1 o r 30. 0 passenger s pe

r day . Thi s leve l o f

deman ddemonstrate s th e nee dfo r nonsto p servic e withou t

uplin e or downlin e point s tha

t woul dfiarthe

r limi t seat s availabl e to suppor t th e Pierre market .

Respectftill y submitted , Lauri e ^il l Mayo r Pierre , Sout

h Dakot a CC : Mega

n Ra e Rosia , Vic e President , Governmen t Affairs , Pinnacl e Airline s Corp . Maximillian T . Shemesh , General Counsel , Mesab aAirlines , Inc . CC : Sout h Dakot aGoverno r

Denni s Daugaard Senato r TimJohnso n Senato r John Thun e Representativ e Krist

i Noe m