### Schlemmer, Kevin (OST) From: Sent: To:


### Cc: Subject: Attachments: Schlemmer, Kevin (OST) Wednesday, April 04, 2012 3:58PM 'Tom Cochran'; 'Rick Rock (rrock@flyckb.com)'; 'mclow@cityofmorgantown.org'; 'Mayor Emmett Pugh'; 'mrburds@hotmail.com'; 'ptrecost2@msn.com'; 'citycouncilward2 @

cityofmorgantown.org' Mosley, Bill H. (OST); Devany, Dennis (OST); mbowman@gosilver.com; 'preed@pncl.com'; Goldner, Bob (OST); 'steve.morrissey@united.com' Comments on the EAS proposal at Beckley, Clarksburg, and Morgantown, WV BKW CKB MGW EAS Bid
- Silver Airways.pdf

Please find the letterfrom Dennis DeVany, below, regarding comments on the EAS proposal for Beckley, Clarksburg, and Morgantown, WV. Regards, Kevin 

### ******************************************************* To whom itConcerns:
Iwould like to update you on the Essential Air Service (EAS) situation at Beckley, Clarksburg/Fairmont ("Clarksburg"), and Morgantown, and give you an opportunityto submit any comments ifyou wish. As you know, by Order2012-2-16, February 23, 2012, the Department solicited proposals from all interested aircarriers to provide service atthese three West Virginia communities, for a newtwo-yearterm beginning August 1, 2012. Subsequent tothat Order, on March 8, Pinnacle Airlines Corp. ("Pinnacle"), the parent company ofColgan Air ("Colgan"), the incumbent, filed a90-day termination notice with the Department. That notice stated Pinnacle's intention to end Colgan's service at all three communities, in addition to fourother communities not discussed here, effectiveJune 8. We then issued an Order, prohibitingthe suspension ofservice and requesting proposals. Since the request for proposals was already issued for the three West Virginia communities, we did not set a new due date for proposals, leaving itApril 3, as in Order 2012-2- 16.

Atthis stage, we would normally ask foryour preferences forvarious carrier and service options. However, in response tothat order, Silver Airways ("Silver") was the only carrierto submit a proposal. Nonetheless, we wantto give you an opportunityto submit any final comments forthe record thatyou may have. Acopy ofSilver's proposal may be accessed online (within the next day ortwo) via the Federal Docket ManagementSystem at: http://www.regulations.gov/ by entering DOT-OST-1997-2761, DOT-OST-2005-20735, or DOT-OST-2005-20736. It is also attached tothis e-mail.
For Morgantown and Clarksburg, Silver proposes 18 nonstop orone-stop round trips perweek to Washington Dulles International Airport ("Dulles") foran annual combined subsidy of$3,456,250. Flights would stop in either Morgantown orClarksburg en route to orfrom Dulles. For Beckley, Silver proposes 13 round trips perweek (7 nonstops and 6 onestops at an intermediate pointto be determined at a laterdate) to Dulles foran annual subsidy of$2,664,565. The service proposed is one additional round trip perweek more than what the Department requested for Beckley. As result, in its proposal, Silver "would be amenable" to providing 12 round trips at a prorata subsidy adjustment. All service tothe three communities would be operated with 34-passenger Saab 340B+ aircraft. Silver states that it is proposing to operate flights under its existing codeshare with United Airlines, however, adefinitive agreement had not been reached atthe time offiling and, therefore, the proposal is contingent upon that agreement being finalized. We are currently reviewing Silver's compensation requirement.
Please note thatthe average passengerfares shown in the proposal do not necessarily reflect the average local fare Morgantown passengers would actually pay, but, rather, reflect a prorated portion ofthe total ticket price, e.g., the
1Morgantown- Dulles ofa Morgantown- Dulles- San Francisco ticket that the subsidized carrierwould realize. In addition, the fare shown is netofcertain charges such as Federal transportation securityfees, excise orticket taxes, and Passenger Facility Charges. Of course, carriers have the discretion to charge fares they deem appropriate, and the passenger fares presented in their proposals have been developed for subsidy rate computation purposes only. Based on the cost elements incorporated in the carrier's computation summaries, Silver would have to realize passenger fares comparable to the averages shown in their proposals in orderto achieve break-even or profitable operations without subsidy.
You should also note thatthe schedule that the carrier has submitted is illustrative only, and thatthey 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 orderto ensure full compensation. On April1, Pinnacle filed for Chapter 11 reorganization and the company has "asked the DOTto establish an accelerated process to identify replacement carriers forthe EAS markets it serves." In orderto expedite the selection process here, we ask thatyou submit any comments in an abbreviated comment period, no laterthan April19, 2012. We will carefully consider your comments before we submit a recommendation to the Assistant Secretary fora decision. Should you have any questions or need additional time to draftyourcomments, please let us know.
Please send your commentsvia e-mail to EAS@dot.gov or by fax to 202-366-7638. Ifyou have any questions, please feel free to contact Kevin Schlemmer ofmy staffat kevin.schlemmer@dot.gov or202-366-3176.
Sincerely, Dennis

### J. DeVany Chief, Essential Air Service Division, X-53 Office ofAviation Analysis

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