Order: 2015-4-17

Served: April 20, 2015

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 20th day of April, 2015

Essential Air Service at

KEARNEY, NEBRASKA

NORTH PLATTE, NEBRASKA

SCOTTSBLUFF, NEBRASKA

DOT-OST-1996-1715

DOT-OST-1999-5173

DOT-OST-2003-14535

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

ORDER SELECTING AIR CARRIER

Summary

By this Order, the United States Department of Transportation (the Department) is reselecting Great Lakes Aviation, Ltd. (Great Lakes) to provide Essential Air Service (EAS)

at Kearney, North Platte, and Scottsbluff, Nebraska, for a new contract term beginning

April 1, 2015, through October 31, 2016. All three communities will receive two weekday 

and weekend nonstop round trips (12 per week) to Denver International Airport (DEN)

using 30-passenger Embraer Brasilia EMB-120 (EMB-120) aircraft.

1

 Great Lakes will be 

compensated at annual subsidy rates of $1,998,178 for Kearney, $1,995,396 for North 

Platte, and $1,764,806 for Scottsbluff.

2

 1 Great Lakes has informed the Department that EMB-120 will be introduced gradually at North Platte and 

Scottsbluff. Both communities will receive one round trip with the EMB-120 as of April 1, 2015, but the 

second round trip will be with 9-passenger Beechcraft 1900 aircraft. Great Lakes stated that they will 

introduce the second EMB-120 round trip at North Platte on May 15, and at Scottsbluff on June 15. 2 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of funds.
- 2 -

Background

By Order 2012-8-23 (August 20, 2012), the Department re-selected Great Lakes, operating 

as both a United Airlines and Frontier Airlines code-share partner, to provide EAS at the 

above-mentioned communities for the two-year term from November 1, 2012, through 

October 31, 2014, for a combined annual rate of $4,848,765. Under that Order, Great 

Lakes provided each community with three nonstop round trips (18 per week) to DEN with 

9- or 19-passenger Beechcraft 1900D (Beech 1900D) aircraft.

By Order 2014-4-30 (April 29, 2014), the Department requested proposals from air carriers 

interested in providing EAS at the three communities. In response, the Department 

received only proposal, from Great Lakes. On June 13, 2014, the Department solicited 

comments on Great Lakes’ proposal. All three communities responded, and requested that 

the Department reject the proposal and re-solicit a new round of proposals. 

By Order 2014-8-20 (August 28, 2014), the Department re-solicited proposals from air 

carriers interested in providing EAS at the three communities. In response to the 

Department’s request, four air carriers submitted proposals: Aerodynamics, Inc. (ADI), 

Boutique Air, Great Lakes, and Public Charters d/b/a Via Air LLC (Via Air). 

Each air carrier’s complete proposal and community comments may be accessed online at 

www.regulations.gov by entering the community’s respective docket number in the search 

block.

Proposal of ADI

ADI submitted a proposal to serve all three communities with 12 nonstop round trips per 

week to DEN using 50-passenger Embraer ERJ 145 (ERJ 145) aircraft. The combined 

annual subsidy for all three communities was proposed as $11,609,468 ($3,860,583 for 

Kearney, $4,144,698 for North Platte, and $3,604,187 for Scottsbluff). At the time ADI 

submitted their proposal, they were awaiting approval from the Department’s Air Carrier 

Fitness Division (Fitness) to provide scheduled air service, a pre-requisite for providing 

basic EAS.

Proposals of Boutique Air

Boutique Air submitted a proposal to serve all three communities with single-engine 9-

passenger Pilatus PC-12 aircraft. At Kearney, the airline proposed two options: 30 

nonstop round trips per week to DEN for an annual subsidy of $3,903,978, or 36 nonstop 

round trips per week to DEN for an annual subsidy of $4,807,926.3 At North Platte, the 

airline proposed 24 nonstop round trips per week to DEN for an annual subsidy of 

$2,996,432. At Scottsbluff, the airline proposed 30 nonstop round trips per week to DEN 

for an annual subsidy of $2,729,616.

 3 The airline noted that, at their discretion, they may fly up to 50 percent of their frequencies to Kansas City 

International Airport, contingent on community support.
- 3 -

Proposal of Great Lakes

Great Lakes submitted a proposal to serve all three communities with three options. All 

service would be to DEN and is contingent on Great Lakes being selected all three 

communities. Their proposal is summarized in the chart below 

Great Lakes – Option A

Community

Annual 

Subsidy Aircraft Seats Stops

Weekly 

Frequency

Kearney $2,993,938 Beech 1900D 9 0 18

North Platte $2,818,163 Beech 1900D 9 0 18

Scottsbluff $2,443,523 Beech 1900D 9 0 18

Great Lakes – Option B

Community

Annual 

Subsidy Aircraft Seats Stops

Weekly 

Frequency

Kearney $2,034,866 Beech 1900D 19 0 18

North Platte $2,117,119 Beech 1900D 19 0 18

Scottsbluff $1,765,849 Beech 1900D 19 0 18

Great Lakes – Option C

Community

Annual 

Subsidy Aircraft Seats Stops

Weekly 

Frequency

Kearney $1,998,178 EMB-120 30 0 12

North Platte $1,995,396 EMB-120 30 0 12

Scottsbluff $1,764,806 EMB-120 30 0 12

Proposal of Via Air

Via Air submitted a proposal to provide all three communities with 12 nonstop round trips 

per week to DEN using EMB-120 aircraft for a combined annual subsidy of $8,986,028 

($2,842,395 for Kearney, $3,572,932 for North Platte, and $2,570,701 for Scottsbluff). 

The proposal was contingent on Via Air being selected at minimum two out of the three 

communities.

4

 It should be noted that Via Air does not have the requisite authority from

the Department’s Fitness Division to provide scheduled air service with the type of aircraft 

proposed.5

Community Comments

On October 8, 2014, the Department requested comments from the communities regarding 

this EAS air carrier-selection case. In response, we received letters from the City of 

Kearney, the City of North Platte, and the City of Scottsbluff. All three communities 

supported the proposal put forth by ADI. 

 4 Via Air also noted that should the carrier be awarded all three EAS routes, the combined annual subsidy 

may be lowered by $982,788, assuming if North Platte agreed to one-stop service on some of its frequencies. 5 See Order 2011-4-11 (April 8, 2011).
- 4 -

The Honorable Stanley A. Clouse, Mayor of Kearney, stated in his letter that the service 

from the current EAS provider, Great Lakes, has been unreliable for several months. The 

Honorable Dwight Livingston, Mayor of North Platte, believed the upgrade to ERJ-145 

aircraft would greatly enhance the community’s air service, and would have a lasting 

beneficial effect on the overall economy of North Platte. The Honorable Randy 

Meininger, Mayor of Scottsbluff stated that the airport board’s unanimous support for ADI 

was critical to the economic revitalization of the airport and the region’s economy. 

Decision

This EAS air carrier-selection case is unusual and complicated. In many cases the 

Department would select the air carrier the communities support. Although ADI had yet to 

receive its authority to provide scheduled air service, its Fitness application was in the final 

stage for approval. However, in November 2014, the Department became aware of 

information that jeopardized ADI’s Fitness application for approval of interstate scheduled 

air service authority. By Order 2015-1-16 (January 22, 2015) the Department issued an

Order to Show Cause, tentatively finding that ADI’s application for interstate scheduled 

passenger authority should be denied and its interstate and foreign charter passenger 

certificates should be revoked.6

In light of this development, the Department communicated to the communities the 

following options for moving forward: 1) submit comments to the Department with respect 

to its tentative finding on ADI’s fitness and wait until the Department issues a final 

decision on that matter; 2) re-evaluate the other air carrier proposals that were submitted; 

3) request that the Department issue another Order requesting a third round of proposals. 

In response, the communities communicated to the Department that they would support 

Great Lakes’ Option C.

7

 

Therefore, after reviewing each air carrier’s proposal and taking into account community 

feedback, the Department has decided to select Great Lakes to provide EAS at Kearney, 

North Platte, and Scottsbluff for a 19-month contract term, from April 1, 2015, through

October 31, 2016. Great Lakes has the qualified support of each community, a key 

selection criterion. We also find the service and proposed subsidy to be reasonable. As 

compared to Boutique Air, Great Lakes requires significantly less subsidy at each 

community. Regarding ADI and Via Air, as noted above, neither air carrier has the 

requisite economic authority from the Fitness Division to operate its proposed service.

The Department acknowledges that Great Lakes’ past service at the three communities has 

not been satisfactory, although the Department is aware that Great Lakes suffered serious 

operational problems over the past two years. Nevertheless, one of the EAS program’s 

responsibilities is to ensure reliable air service to all EAS communities. In that regard, the 

 6 See docket DOT-OST-2014-0114 for all information regarding ADI’s air carrier fitness case. 7 Originally, the communities stated they wanted a contract term from March 1, 2015, through 

February 29, 2016. Great Lakes, however, requested a contract term from April 1, 2015, through 

October 31, 2016, to which the communities agreed.
- 5 -

Department is reminding Great Lakes that poor service could cause a drop in passenger 

usage at the airports the airline serves, which could potentially jeopardize a community’s 

future eligibility in the EAS program. The Department expects that Great Lakes will use 

this selection as an opportunity to demonstrate, definitively, to the communities, as well as 

to the Department, that it is committed to providing consistent, reliable air service.

The Department shall make this selection contingent upon its receiving properly executed 

certifications from Great Lakes that it is in compliance with the Department’s regulations 

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

concerning lobbying activities.8

Carrier Fitness

49 U.S.C. §§ 41737(b) and 41738 require that the Department find an air carrier fit, 

willing, and able to provide reliable service before the Department may subsidize it to 

provide EAS. Great Lakes is subject to the Department’s continuing fitness requirements, 

and no information has come to our attention that would cause us to question the air 

carrier’s fitness at this time. The Department has contacted the Federal Aviation 

Administration, and it has raised no concerns that would negatively affect our fitness 

findings. The Department therefore concludes that Great Lakes is reliable and fit to 

conduct the operations proposed here.

This Order is issued under authority delegated in 49 CFR Part 1.25a(b).

ACCORDINGLY,

1. The Department selects Great Lakes Aviation, Ltd. to provide Essential Air Service at 

Kearney, North Platte, and Scottsbluff, Nebraska, and establishes the annual subsidy rates

as described in Appendix C;

2. The Department directs Great Lakes Aviation, Ltd. 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 from the service date of this Order 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 carriers may forfeit their compensation for any claim 

that is not supported under the terms of this Order;

3. The Department finds that Great Lakes Aviation, Ltd. is fit, willing and able to operate 

as a commuter air carrier, and capable of providing reliable Essential Air Service at 

Kearney, North Platte, and Scottsbluff, Nebraska;

4. These dockets will remain open pending further Department action; and

 8 The certifications are available online under “Reports and Publications” at 

http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/essential-air-service.
- 6 -

5. The Department will serve a copy of this Order on the mayors of Kearney, North Platte, 

and Scottsbluff, Nebraska, the airport managers of Kearney Regional Airport and North 

Platte Regional Airport, and the airport director of Western Nebraska Regional Airport,

Aerodynamics, Inc., Boutique Air, Charter Air Transport Inc. d/b/a Via Air, LLC, and 

Great Lakes Aviation, Ltd.

By:

BRANDON M. BELFORD

Deputy Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available at www.regulations.gov
Appendix A

AREA MAP

Maps generated by the Great Circle Mapper - copyright © Karl L. Swartz.

 
 Appendix B

Page 1 of 3

Great Lakes Proposal at Kearney
 Appendix B

Page 2 of 3

Great Lakes Proposal at North Platte
 Appendix B

Page 3 of 3

Great Lakes Proposal at Scottsbluff
Appendix C

Page 1 of 5

Great Lakes Aviation, LLC

Essential Air Service to be provided at Kearney, Nebraska

DOT-OST-1996-1715

Annual Subsidy: $1,998,178

Contract Term: April 1, 2015, through October 31, 2016

Hub: Denver International Airport (DEN)

Scheduled Service: 12 nonstop round trips per week to DEN

Aircraft: 30-passenger EMB-120

Rate per Eligible Flight: $1,6341

Weekly Ceiling: $39,2162

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 service levels, the carrier may cease to provide service to that 

specific location without regards 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 may not be available for performance under this Order beyond September 30, 2015. The Government’s obligation for 

performance under this Order beyond September 30, 2015, is subject to the availability of 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 September 30, 2015, until funds are made available to the Department for performance. If sufficient funds are 

not made available for performance beyond September 30, 2015, the Department will provide notice in writing to the carrier.

All claims for payment, including any amended claims, must be submitted within 90 days of the last day of the 

month for which compensation is being claimed. For example, claims for service provided in July must be filed by 

October 31; August claims must be submitted by November 30, and so on.

 1 Annual compensation of $1,998,178 divided by 1,223 annual departures (24 weekly departures x 52 weeks x 98 

percent completion).

2 24 arrivals and departures per week multiplied by $1,634 per flight.
 Appendix C

Page 2 of 5

Great Lakes Aviation, LLC

Essential Air Service to be provided at North Platte, Nebraska

DOT-OST-1999-5173

Annual Subsidy: $1,995,396

Contract Term: April 1, 2015, through May 15, 2015

Hub: Denver International Airport (DEN)

Scheduled Service: 12 nonstop round trips per week to DEN

Aircraft: 30-passenger EMB-120, 9-passenger Beech 1900D

Rate per Eligible Flight: $1,6321; $1,5362

Weekly Ceiling: $19,5843; $18,4324

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 service levels, the carrier may cease to provide service to that 

specific location without regards 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 may not be available for performance under this Order beyond September 30, 2015. The Government’s obligation for 

performance under this Order beyond September 30, 2015, is subject to the availability of 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 September 30, 2015, until funds are made available to the Department for performance. If sufficient funds are 

not made available for performance beyond September 30, 2015, the Department will provide notice in writing to the carrier.

All claims for payment, including any amended claims, must be submitted within 90 days of the last day of the 

month for which compensation is being claimed. For example, claims for service provided in July must be filed by 

October 31; August claims must be submitted by November 30, and so on.

 1 Annual compensation of $1,995,396 divided by 1,223 annual departures (24 weekly departures x 52 weeks x 98 

percent completion).

2 Annual compensation of $2,818,163 divided by 1,835 annual departures (36 weekly departures x 52 weeks x 98 

percent completion).

3 12 arrivals and departures per week multiplied by $1,632 per flight. 4 12 arrivals and departures per week multiplied by $1,536 per flight.
Appendix C

Page 3 of 5

Great Lakes Aviation, LLC

Essential Air Service to be provided at North Platte, Nebraska

DOT-OST-1999-5173

Annual Subsidy: $1,995,396

Contract Term: May 16, 2015, through October 31, 2016

Hub: Denver International Airport (DEN)

Scheduled Service: 12 nonstop round trips per week to DEN

Aircraft: 30-passenger EMB-120, 9-passenger Beech 1900D

Rate per Eligible Flight: $1,6325

Weekly Ceiling: $39,1686

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 service levels, the carrier may cease to provide service to that 

specific location without regards 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 may not be available for performance under this Order beyond September 30, 2015. The Government’s obligation for 

performance under this Order beyond September 30, 2015, is subject to the availability of 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 September 30, 2015, until funds are made available to the Department for performance. If sufficient funds are 

not made available for performance beyond September 30, 2015, the Department will provide notice in writing to the carrier.

All claims for payment, including any amended claims, must be submitted within 90 days of the last day of the 

month for which compensation is being claimed. For example, claims for service provided in July must be filed by 

October 31; August claims must be submitted by November 30, and so on.

 5 Annual compensation of $1,995,396 divided by 1,223 annual departures (24 weekly departures x 52 weeks x 98 

percent completion).

6 24 arrivals and departures per week multiplied by $1,632 per flight.
 Appendix C

Page 4 of 5

Great Lakes Aviation, LLC

Essential Air Service to be provided at Scottsbluff, Nebraska

DOT-OST-2003-14535

Contract Term: April 1, 2015, through June 15, 2015

Hub: Denver International Airport (DEN)

Scheduled Service: 12 nonstop round trips per week to DEN

Aircraft: 30-passenger EMB-120, 9-passenger Beech 1900D

Rate per Eligible Flight: $1,4431 (EMB-120), $1,3322 (Beech 1900D)

Weekly Ceiling: $17,3163 (EMB-120), $15,9844 (Beech 1900D)

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 service levels, the carrier may cease to provide service to that 

specific location without regards 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 may not be available for performance under this Order beyond September 30, 2015. The Government’s obligation for 

performance under this Order beyond September 30, 2015, is subject to the availability of 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 September 30, 2015, until funds are made available to the Department for performance. If sufficient funds are 

not made available for performance beyond September 30, 2015, the Department will provide notice in writing to the carrier.

All claims for payment, including any amended claims, must be submitted within 90 days of the last day of the 

month for which compensation is being claimed. For example, claims for service provided in July must be filed by 

October 31; August claims must be submitted by November 30, and so on.

 1 Annual compensation of $1,764,806 divided by 1,223 annual departures (24 weekly departures x 52 weeks x 98 

percent completion).

2 Annual compensation of $2,443,523 divided by 1,835 annual departures (36 weekly departures x 52 weeks x 98 

percent completion).

3 12 arrivals and departures per week multiplied by $1,443 per flight. 4 12 arrivals and departures per week multiplied by $1,332 per flight.
Appendix C

Page 5 of 5

Great Lakes Aviation, LLC

Essential Air Service to be provided at Scottsbluff, Nebraska

DOT-OST-2003-14535

Annual Subsidy: $1,764,806

Contract Term: June 16, 2015, through October 31, 2016

Hub: Denver International Airport (DEN)

Scheduled Service: 12 nonstop round trips per week to DEN

Aircraft: 30-passenger EMB-120

Rate per Eligible Flight: $1,4435

Weekly Ceiling: $34,6326

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 service levels, the carrier may cease to provide service to that 

specific location without regards 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 may not be available for performance under this Order beyond September 30, 2015. The Government’s obligation for 

performance under this Order beyond September 30, 2015, is subject to the availability of 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 September 30, 2015, until funds are made available to the Department for performance. If sufficient funds are 

not made available for performance beyond September 30, 2015, the Department will provide notice in writing to the carrier.

All claims for payment, including any amended claims, must be submitted within 90 days of the last day of the 

month for which compensation is being claimed. For example, claims for service provided in July must be filed by 

October 31; August claims must be submitted by November 30, and so on.

 5 Annual compensation of $1,764,806 divided by 1,223 annual departures (24 weekly departures x 52 weeks x 98 

percent completion).

6 24 arrivals and departures per week multiplied by $1,443 per flight.