Before the United States Department of Transportation 

Washington, DC 

July 23, 2012 

· Essential Air Service at: 

- <) 

Brainerd, Minnesota 

International Falls, Minnesota 

Iron Mountain/Kinsford, Michigan 

Rhinelander, Wisconsin 

Docket OST -2011-0135 v 

Docket OST -2009-0304/ 

Docket OST-1999-5175 / 

Docket OST -2011-01 09 ,/ 

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

This document contains the response of Great Lakes Aviation, Ltd. to Order Requesting 

Proposals 2012-6-9. 

Great Lakes Aviation, Ltd. is pleased to submit these proposals to provide essential air 

transportation to and from our recently established Minneapolis-St. Paul hub. The proposed 

service is being offered with local service marketed and priced utilizing the Great Lakes (ZK) 

reservations system which includes customer ticket purchasing capability- on both Great Lakes' 

web site and on web booking engines. 

Great Lakes will be utilizing interline a-ticketing and baggage agreements with American 

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

passengers maxium access to the domestic and international air transportation system at the 

Minneapolis hub. 

These proposals are submitted on a "stand alone" basis for each community in which we are 

proposing Essential Air Service. Each proposal is bid with no upline scheduling restrictions. 

Great Lakes has aggressively pursued our expansion of operations at our Minneapolis-St. Paul 

hub. A description of our expansion efforts was posted to the Docket on 12/29/2011 (Document 

ID : DOT-OST-2011-0135-0016) and for convenience, is attached to this response for request 

for proposals. A key element of our expansion into Minneapolis-St. Paul is our ability to 

maintain facilities at the hub which will allow convienent connectivity for our passengers and 

secure sufficient ramp space to operate incremental aircraft. 

Sample schedules, provided herein, include frequencies on the weekends which are 

supplemental to the minimum EAS proposal requirements. It is Great Lakes' intention to 

provide additional frequencies and schedule adjustments, at our discretion, with the 

consideration that each community's input and needs are unique. 

The proposal contemplates the use of pressurized 19 seat Beech 1900D's, which the Company 

has had a long history of operating. 
Questions and comments may be referred to: 

Michael Matthews 

Chief Financial Officer 

Great Lakes Airlines 

1 022 Airport Parkway 

Cheyenne, VVY 82001 

(307) 432-7030 
Table of Contents: 

Proposal Subsidy Passengers Average 

Number Service Point(s) Hub(s) Served Round Trips Equipment Requirement Forecast Fare 

Brainerd, Minnesota MSP 4 19000 $1,785,221 24,000 $90.54 

2 International Falls, Minnesota MSP 3 19000 $1,797,644 21,000 $117.54 

3 Iron Mountain/Kinsford, Michigan MSP 3 19000 $1,857,610 18,000 $127.10 

4 Rhinelander, Wisconsin MSP 3 19000 $1,667,947 20,000 $106.02 

$7,108,422 83,000 
. . 

Great Lakes Aviation, Ltd. 

Annual Compensation Requirements for Essential Air Service at 

Brainerd, Minnesota to Minneapolis/St. Paul ( MSP ) 

Departures: 

Block Hours: 

Revenue Passenger Miles: 

Available Seat Miles: 

Operating Revenues: 

Four Round Trips- 81900 

98.0% completion factor 

Passenger: BRD-MSP 24,000 psgrs at $90.54 $2,172,960 

Other: (at 0.62% of passenger revenue) 

Total Operating Revenues: 

Operating Expenses: 

Direct Aircraft and Hull Insurance 

Fuel and Oil 

Flying Operations 

Maintenance 

Total Direct Expenses: 

Total Indirect Expenses: 

Total Operating Expenses: 

Operating Loss 

Profit Element (5.0% of Total Operating Expenses) 

Annual Compensation Requirement: 

All Brainard - Minneapolis service is non-stop. 

$13,472 

$365,710 

$1,087,176 

$325,938 

$626,552 

This proposal is submitted with no upline scheduling restrctions. 

2,454 

1,840 

2,712,000 

5,268,738 

$2,186,432 

$2,405,376 

$1,377,151 

$3,782,527 

($1 ,596,095) 

$189,126 

$1,785,221 

Service upgrade to an Embraer EMB-120 will be offered at Great Lakes' discretion 

subject to traffic and passenger yields meeting economic thresholds. 
~. ·" 

Great Lakes Aviation, Ltd. 

Annual Compensation Requirements for Essential Air Service at 

International Falls, Minnesota to Minneapolis/St. Paul ( MSP ) 

Departures: 

Block Hours: 

Revenue Passenger Miles: 

Available Seat Miles: 

Operating Revenues: 

Three Round Trips- 81900 

98.0% completion factor 

Passenger: INL-MSP 21,000 psgrsat $117.54 $2,468,340 

Other: (at 0.62% of passenger revenue) 

Total Operating Revenues: 

Operating Expenses: 

Direct: Aircraft and Hull Insurance 

Fuel and Oil 

Flying Operations 

Maintenance 

Total Direct Expenses: 

Total Indirect Expenses: 

Total Operating Expenses: 

Operating Loss 

Profit Element (5.0% of Total Operating Expenses) 

Annual Compensation Requirement: 

All International Falls - Minneapolis service is non-stop. 

This proposal is submitted with no upline scheduling restrctions. 

$15,304 

$365,710 . 

$1,297,818 

$434,702 

$622,530 

Service upgrade to an Embraer EMB-120 will be offered at Great Lakes' discretion 

subject to traffic and passenger yields meeting economic thresholds. 

1,840 

2,454 

5,334,000 

8,879,840 

$2,483,644 

$2,720,760 

$1,356,409 

$4,077,169 

($1 ,593,525) 

$203,858 

$1,797,384 
Great Lakes Aviation, Ltd. 

:A.nnual Compensation Requirements for Essential Air Service at 

Iron Mountain, Michigan to Minneapolis/St. Paul ( MSP ) 

Departures: 

Block Hours: 

Revenue Passenger Miles: 

Available Seat Miles: 

Operating Revenues: 

Three Round Trips- 81900 

98.0% completion factor 

Passenger: IMT-MSP 18,000 psgrs at $127.10 $2,287,800 

Other: (at 0.62% of passenger revenue) 

Total Operating Revenues: 

Operating Expenses: 

Direct: Aircraft and Hull Insurance 

Fuel and Oil 

Flying Operations 

Maintenance 

Total Direct Expenses: 

Total Indirect Expenses: 

Total Operating Expenses: 

Operating Loss 

Profit Element (5.0% of Total Operating Expenses) 

Annual Compensation Requirement: 

All Iron Mountain - Minneapolis service is non-stop. 

$14,184 

$365,710. 

$1,310,820 

$434,702 

$622,530 

This proposal is submitted with no upline scheduling restrctions. 

1,840 

2,454 

4,240,500 

8,984,720 

$2,301,984 

$2,733,762 

$1,227,756 

$3,961,518 

($1 .659.534) 

$198,076 

$1,857,610 

Service upgrade to an Embraer EMB-120 will be offered at Great Lakes' discretion 

subject to traffic and passenger yields meeting economic thresholds. 

Subject to coordinated community support and gate space availability, Great Lakes 

would also consider service to Chicago-ORO in lieu of MSP, at the same subsidy rate. 
Great Lakes Aviation, Ltd. 

Annual Compensation Requirements for Essential Air Service at 

Rhinelander, Wisconsin to Minneapolis/St. Paul ( MSP ) 

Departures: 

Block Hours: 

Revenue Passenger Miles: 

Available Seat Miles: 

Operating Revenues: 

Three Round Trips- 81900 

98.0% completion factor 

Passenger: RHI-MSP 20,000 psgrsat $106.02 $2,120,400 

Other: (at 0.62% of passenger revenue) 

Total Operating Revenues: 

Operating Expenses: 

Direct: Aircraft <~nd Hull. Insurance 

Fuel and Oil 

Flying Operations 

Maintenance 

Total Direct Expenses: 

Total Indirect Expenses: 

Total Operating Expenses: 

Operating Loss 

Profit Element (5.0% of Total Operating Expenses) 

Annual Compensation Requirement: 

All Rhinelander - Minneapolis servfce is non-stop. 

$13,146 

$365,710 

$1,095,380 

$325,938 

$535,238 

This proposal is submitted with no upline scheduling restrctions. 

Service upgrade to an Embraer EMB-120 will be offered at Great Lakes' discretion 

subject to traffic and passenger yields meeting economic thresholds. 

1,840 

2,531 

4,559,750 

10,453,040 

$2,133,546 

$2,322,266 

$1,298,204 

$3,620,470 

($1 ,486,924) 

$181,024 

$1,667,947 

Subject to coordinated community support and gate space availability, Great Lakes 

would also consider service to Chicago-ORO in lieu of MSP, at the same subsidy rate. 
.. 

( 

*** [BRD] BRAINERD, MN *** 

-------------------- D E f> ~ R li lJ R E ~ -------------------- -------------------- ~ R R I \1 ~ L. ~ -------------------- FL.li Df>li ~RR liO EQf> FREQ FL.li EQf> FREQ FROM Df>li ~RR 

2609 540 624 MSP BE1 Daily 

2535 BE1 Daily MSP 925 1009 

2535 1024 1108 MSP BE1 Daily 

2533 BE1 Daily MSP 1148 1232 

2533 1247 1331 MSP BE1 Daily 

2304 BE1 Daily MSP 1410 1454 

2304 1509 1553 MSP BE1 Daily 

2586 BE1 Daily MSP 1950 2034 
*** [INL] INTL FALLS, MN *** 

-------------------- 0 E P A R T U R E 5 -------------------- -------------------- A R R I V A L 5 --------------------

FL T OPT ARR TO EQP FREQ FL T EQP FREQ FROM OPT ARR 

2580 630 745 MSP BE1 Daily 

2614 BE1 Daily MSP 1032 1157 

2614 1212 1327 MSP BE1 Daily 

2302 BE1 Daily MSP 1415 1540 

2302 1555 1710 MSP BE1 Daily 

2585 BE1 Daily MSP 1945 2110 
*** [IMT] IRON MOUNTAIN, Ml *** 

-------------------- 0 E P A R T U R E S -------------------- -------------------- A R R I V A L S --------------------

FL T OPT ARR TO EQP FREQ FL T EQP FREQ FROM OPT ARR 

2558 632 752 MSP BE1 Daily 

2673 BE1 Daily MSP 1030 1150 

2759 1205 1325 MSP BE1 Daily 

2301 BE1 Daily MSP 1422 1542 

2301 1557 1717 MSP BE1 Daily 

2581 BE1 Daily MSP 1947 2107 
. *** [RHI] RHINELANDER, WI *** 

-------------------- D E f> A R lr lJ R E: ~ -------------------- -------------------- A R R I \1 A L ~ -------------------- FL lr Df>lr ARR lrO EQf> FREQ FL lr EQf> FREQ FROM Df>lr ARR 

2721 600 700 MSP BE1 Daily 

2724 BE1 Daily MSP 1030 1130 

2705 1145 1245 MSP BE1 Daily 

2726 BE1 Daily MSP 1400 1500 

2709 1515 1615 MSP BE1 Daily 

2728 BE1 Daily MSP 1930 2030 
Doug Voss 

From: 

Sent: 

To: 

Cc: 

Subject: 

Dennis 

Doug Voss [dvoss@flygreatlakes.com] 

Monday, June 11, 2012 6 37 AM 

'Dennis DeV any@dot.gov' 

'chowe\l@flygreatlakes.com' 

RHHNL-BRD-IMT 

Pursuant to our recent conversations, please consider this e-mail supporting documentation to encourage The 

Department of Transportation (DOT) to issue a new Request for Proposals (RFP) for the following Essential Air Service 

Routes: 

1. Rhinelander, Wisconsin (RHI) 

2. International Falls, Minnesota (INL) 

3. Brainerd, Minnesota {BRD) 

4. Iron Mountain, Michigan (IMT) 

Great Lakes has since November 23'd 2011, with the issuance of DOT Order 2011-11-30, initiated service to Ten cities 

from its newly reestablished Minneapolis/Saint Paul Hub. With DOT Order 2011-12-6 

dated December 141

h 2011 and its short term- short notice emergency selection of Great Lakes to replace Delta 

Connection at Devils Lake ND on December 17'h 2011, the company began an aggressively accelerated expansion of its 

operations. Simultaneously to this expansion the company and Delta Airlines have been reengineering it's Reservations 

System Platforms to facilitate a unique business model that does not rely on a Code Sharing relationship. 

Great Lakes has during this period in time seen its operational perform suffer from a very aggressive expansion rate and 

believes it must allow some time for our MSP Hub system to mature. 

The new business model which relies on sign1ficant revisions to the traditional distribution channel methods also 

requires us to help the communities we are serlting learn new methods, previously unseen in this industry, for 

purchasing air travel. Significant enhancements to the new systems, including things such as the Delta Sky Miles 

frequent flyer program are still works in progress. 

MSP Gate and Hub facilities have also become a serious concern for Great Lakes. The new business model requires by its 

design, ease of connectivity to all major carriers serving the Hub to be a prerequisite. Significant ramp space issues- on a 

going forward basis -would suggest to us that we not add the remaining four EAS markets until such time as we are 

certain that the facilities are available to accommodate the size of the operation. 

While we will continue to be aggressive about the development of our MSP operation, we do not wish to hinder 

communities from considering alternatives to our MSP hub selection and the corresponding near term issues associated 

with its development. 

If you have any questions regarding this memo please do not hesitate to contact us' 

Vougfas q. 'V'oss 

Chairman and President 

Great Lakes Aviation, Ltd 

l 022 Airport Parkway 

Cheyenne, WY 8]00 1 

Office. 007! 432-7010