< .

"

December 4, 2013

Essential Air Service at:

Devils Lake, North Dakota

Jamestown, North Dakota

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

Docket OST-1997-2785

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

Proposais 2013-10-14.

Great Lakes Aviation, Ltd. submits this proposal to provide essential air transportation to Devils

Lake and Jamestown, ND as an "inseparable package". Per the instructions in the Order, Great

Lakes has prepared this proposal with the expectation that this will be our final and only

proposal.

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

the Great Lakes' web site and on numerous web booking engines. Additionally, Great Lakes

and Delta Airlines have formed a partnership to enable the sale of Great Lakes' passenger

segments on the Delta website as well as, providing the passenger with through check-in and

seamless baggage transfers. It is anticipated that passengers will be able to earn Delta Sky

Miles on Great Lakes flight segments in January 2014.

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

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 Minne'lpolis

hub.

This proposal contemplates the use of pressurized 19 seat Beechcraft 1900D aircraft, which

Great Lakes a long history of operating.

Questions and comments may be referred to:

Michael O. Matthews

Chief Financial Officer

Great Lakes Aviation, Ltd.

1022 Airport Parkway

Cheyenne, VVY 82001

(307) 432-7000
Great Lakes Aviation, Ltd.

Annual Compensation Requirements for Essential Ai\ Service at

Devils lake and Jamestown North Dakota to Minneapolis/St. Paul ( MSP )

Three Round Trips - B1900

97.0% completion factor

Departures:

Block Hours:

Revenue Passenger Miles:

Available Seat Miies

Operating Revenues:

Passenger: DVL-MSP

JMS-MSP

7,250

7,250

psgrs at

psgrs at

$137.82 $999,195

$132.75 $962,438

3,081

3,265

4,605,000

12,841,990

Other: (at 0.62% of passenger revenue) $12,162

Total Operating Revenues: $1,973,795

Operating Expenses:'

Direct: Aircraft and Hull Insurance

Fuel and Oil

Flying Operations

Maintenance

$555,712

$1,948,822

$643,989

$1,004,007

Total Direct Expenses:

Total Indirect Expenses:

Total Operating Expenses:

Operating Loss

Profit Element (5.0% of Totai Operating Expenses)

Annual Compensation Requirement:

Subsidy per Departure

No Upline Scheduling Restrictions

$4,152,530

$1,535,799

$5,688,329

($3,714,534)

$284,416

$3,998,951

$1,297.94
••• Sample Schedules •••

••• [DVL] DEVILS LAKE, NO •••

•

---.-------.-------- 0 E F' A Ft,- LJFt E S -------------------.

FL'- DF''- AFtFt '-0 EQF' FFtEQ

---------.-.-------- A Ft FtI V A L S -------------------.

FL'- EQF' FFtEQ FFtOM DF''- AFtFt

7323 730 930 MSP BE1 X7 1 stop

7319 BE1 X67 MSP 1030 1205 non stop

7319 1225 1525 MSP BE1 X6 1 stop

7172 BE1 Daily MSP 1355 1600 1 stop

7172 1620 1755 MSP BE1 X6 non stop

7322 BE1 X6 MSP 1755 2000 1 stop

No LJpline Scheduling Ftestrictions

••• [JMS] JAMES'-OWN, NO •••

-------------------- 0 E F' A Ft,- LJFt E S ------------ ••-----.

FL'- DF''- AFtFt '-0 EQF' FFtEQ

----------.--------- A Ft FtI V A L S -------------------.

FL'- EQF' FFtEQ FFtOM DF''- AFtFt

7323 810 930 MSP BE1 X7 non stop

7319 BE1 X67 MSP 1030 1255 1 stop

7319 1305 1425 MSP BE1 X6 non stop

7172 BE1 Daily MSP 1355 1520 non stop

7172 1530 1755 MSP BE1 X6 1 stop

7322 BE1 X6 MSP 1755 1920 non stop

No LJpline Scheduling Ftestrictions