## Before the United States Department ofTransportation 

## Washington, DC July 23, 2012

· EssentialAir 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-2011-0109 ,/ under49 U.S.C. 41731 et.seq.
This document contains the response ofGreat Lakes Aviation, Ltd. to Order Requesting Proposals 2012-6-9. Great Lakes Aviation, Ltd. is pleased to submitthese 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 customerticket purchasing capability-on both Great Lakes' web site and on web booking engines. Great Lakeswill be utilizing interline a-ticketing and baggage agreements with American Airlines, DeltaAirlines, FrontierAirlines, United Airlines and U.S. Airways. All ofwhich will offer passengers maxium access to the domestic and international airtransportation system at the Minneapolis hub. These proposals are submitted on a "stand alone" basis foreach community in which we are proposing Essential AirService. Each proposal is bid with no upline scheduling restrictions. Great Lakes has aggressively pursued ourexpansion ofoperations at our Minneapolis-St. Paul hub. A description ofourexpansion effortswas posted to the Docket on 12/29/2011 (Document ID : DOT-OST-2011-0135-0016) and for convenience, is attached tothis response for request for proposals. A key element ofourexpansion into Minneapolis-St. Paul is ourability to maintain facilities at the hub which will allowconvienent connectivity forour passengers and secure sufficient ramp space to operate incremental aircraft. Sample schedules, provided herein, includefrequencies 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 ourdiscretion, with the consideration that each community's input and needs are unique. The proposal contemplatesthe use ofpressurized 19 seat Beech 1900D's, which the Company has had a long history ofoperating.Questions and comments may be referred to: Michael Matthews Chief Financial Officer Great LakesAirlines 1022 Airport Parkway Cheyenne, VVY 82001 (307) 432-7030Table ofContents: 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 LakesAviation, Ltd. Annual Compensation Requirements for Essential Air Service at 

## Brainerd, Minnesotato 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% ofpassenger 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% ofTotal 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 uplinescheduling 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 upgradeto an Embraer EMB-120 will be offered atGreat Lakes' discretion subjecttotraffic and passengeryields meeting economicthresholds.**~.** ·" 

# 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% ofpassenger 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% ofTotal Operating Expenses) Annual Compensation Requirement:
All International Falls - Minneapolis service is non-stop. This proposal is submitted with no uplinescheduling restrctions. $15,304

$365,710

. $1,297,818

$434,702 $622,530

Service upgradeto an Embraer EMB-120 will be offered at Great Lakes' discretion subjecttotraffic and passengeryields meeting economicthresholds. 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 LakesAviation, Ltd. :A.nnual Compensation Requirements for Essential Air Service at 

## Iron Mountain, Michiganto 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% ofpassenger 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% ofTotal 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 uplinescheduling 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 upgradeto an Embraer EMB-120 will be offered atGreat Lakes' discretion subjecttotraffic and passengeryields meeting economicthresholds. Subjectto coordinated community supportand gate space availability, Great Lakes would also considerserviceto Chicago-ORO in lieu ofMSP, atthesame subsidy rate.

# Great LakesAviation, 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% ofpassenger 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% ofTotal 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 uplinescheduling restrctions. Service upgradeto an Embraer EMB-120 will be offered atGreat Lakes' discretion subjecttotraffic and passengeryields meeting economicthresholds. 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

Subjectto coordinated community supportand gate space availability, Great Lakes would also considerserviceto Chicago-ORO in lieu of MSP, atthe same subsidy rate.

# ..

( 

### *** 

## [BRD] BRAINERD, MN ***



## -------------------- D Ef>**~** 

## Rli lJ 

## R E**~** 

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## R RI\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 IV A L 5 -------------------- FLT OPT ARR TO EQP FREQ FLT 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 IV A L S -------------------- FLT OPT ARR TO EQP FREQ FLT 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

## ~ -------------------- FLlr Df>lr ARR lrO EQf> FREQ FLlr 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 DeVany@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 ofTransportation (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 November23'd 2011, with the issuance of DOT Order2011-11-30, initiated service to Ten cities from its newly reestablished Minneapolis/Saint Paul Hub. With DOT Order2011-12-6 dated December 141h 2011 and its short term- short notice emergencyselection ofGreat Lakes to replace Delta Connection at Devils Lake ND on December 17'h 2011, the company began an aggressively accelerated expansion of its operations. Simultaneouslyto 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 avery 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 newsystems, including things such as the Delta Sky Miles frequent flyer program are still works in progress. MSP Gate and Hub facilities have also become aserious concern for Great Lakes. The new business model requires by its design, ease ofconnectivity to all majorcarriers 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 untilsuch time as we are certain that the facilities are available to accommodate the size ofthe operation. While we will continue to be aggressive about the development ofour MSP operation, we do notwish to hinder communities from considering alternatives toour MSP hub selection and the corresponding near term issues associated with its development. Ifyou have any questions regarding this memo please do not hesitate to contact

### us' 

### Vougfas 

## q. 'V'oss Chairman andPresident Great LakesAviation, Ltd l022 Airport Parkway Cheyenne, WY8]001 Office. 007! 432-7010