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- osT ' \^<\bf " wy s Swanson , Bria n (OST ) From : Swanson , Bria n (OST ) Sent : Thursday , Januar y20 , 2011 11:1 2 A M To : 'dale.janway@cityofcarlsbadnm.com' ; 'ssummers@cityofclovis.org' ; 'gbrumfield@cityofclovis.org' ; 'jthomas@cityofclovis.org' ; 'asilva@cityofdeming.org' ; 'mayor@townofhurleynm.com' ; 'mayor@townofsilvercity.org' ; 'jsaari@grantcountynm.com' ; 'Truitt , Lee , NMDOT' ; 'Rober t L

. Scavron' ; 'Lucero , Jane , NMDOT ' Cc : Devany , Denni s (OST) ; 'Chucl < Howel l (chowell@flygreatlakes.com)' ; 'Gre g Kahlstorf' ; 'Seaport/Wing s of Alaska , Ro b McKinney' ; 'Micke yBowma n (mbowma@gulfstreamair.com)' ; 'Alpert , Da n (Bingaman)' ; 'Swallow , Kristin a (To m Udall)' ; Kim , Davi d (OST) ; Letteney , Rober t (OST ) Subject : Updat e o n th e solicitatio n o f comment s o n EA S proposal s a t Carlsbad , Clovis , an d Silve rCity , Ne w Mexic o - No w du e February2 2 Ma r
All : Thi s i s afollow-u p t o my e-mai l messag e o f Januar y 11

. Tha t

messag e update dyo u o n th e essentia l ai r servic e (EAS ) situatio n at

Carlsbad , Clovis , an dSilve r City , New Mexico ; explaine dthat th e Departmen t

woul drel y o n Ne w Mexic o Airlines ' propose dsubsidy-fre e flight s t o serv e a s EA S a t Clovis ; an dsolicite dyou r comment s an dpreference s o n th e proposal s unde r consideration

. W e basedthat opinio n a

t Clovi s o n th e fac t

that unde r 4 9 U.S. C § 4173 2 (b)(3 ) o f ou r governin g statues , th e communit y i s not guarantee dservic e with 15-sea t o r large r aircraf t if subsidy-fre e servic e i s provide dwith smalle r aircraft

. However , after

furthe r review , w e hav e no w determine dthat

th e twin-engine , tw o pilo t requiremen t

containe di n 4 9 U.S. C § 4173 2 (b)(5 ) i s not trumpe db y asubsidy-fre e proposal

. Th e onl y exceptio n t o th e tw o engine , tw o pilo t requiremen t

i s i f th e communit y receive donl y single pilot , singl e engin e servic e for 6 0 o r mor e consecutiv e days

. W e ar e unawar e o f an y schedule dai r

transportatio n that

ha s no t utilize dtw o engines an dtw o pilot s at th e communit y for

a t leas t 6 0 consecutiv e day s at

an y tim e sinc e Octobe r

31 , 1978

. A s aresult , w e wil l no t terminat e th e carrier-selectio n proceedin g a

t Clovi s a s w e sai doriginall y but , instead , wil l continu e t o proces s anorma l carrier-selectio n case . Ther e ha s bee n on e additiona l developmen t i n thi s case . Gulfstrea mInternationa l Airlines , Inc

. (Gulfstream ) ha s submitte daproposa l t o serv e seve n EA S communitie s i n Montana , an dth e communitie s recentl y vote d6- 1 t o support Gulfstream

. O n Januar y 2 0 Gulfstrea msen t u s an e-mai l statin g tha t

if th e Departmen t

selecte d Gulfstrea ma s th e EA S carrie r i n tha t case , i t woul db e force dt o withdra w it s proposa l for EA S i n Ne w Mexico , a s wel l a s Arizona

. W e expec t t o issu e adecisio n o n th e Montan acas e withi n abou t tw o weeks

. Therefore , base do n al l th e above , w e wil l repea t and/o r clarif y ou r discussio n o f

th e proposal s unde r

consideratio n for EA S a t th e Carlsbad , Clovi s an dSilve r City

. A s previousl y stated , copies o f th e proposal s may als o b e accesse donlin e throug h th e Federa l Docke t Managemen t

Syste mat : http://www.regulations.gov , b y doin g asearc h o n b y doin g asearc h o n DOT-OST

2002-1280 2 (for

Carlsbad) , DOT-OST-1996-190 2 (for Clovis ) an dDOT-OST-21996-190 3 (for Silve r City)

. In respons e t o th e request s for proposals

. Grea t

Lakes , Ne w Mexic o Airlines , Gulfstream , an dAlask aJuneau Aeronautics , Inc

. d/b/ aSeaPort Airline s (SeaPort ) submitte dproposals , whic h ar e summarize dbriefl y below

. A s i n th e past , I woul dals o as k yo u t o not e tha t

th e aircraf

t type s propose db y Ne w Mexic o Airline s an d SeaPort d o not mee t th e two-engin e o r

15-or-more-passenger-sea t standard s require db y ou r governin g statute s (4 9 U.S.C

. § 41732(b)(3 ) an d(b)(6)) , althoug h acommunit y ca n waiv e thes e requirements

. Ne w Mexic o Airline s Ne w Mexic o Airline s submitte d"stand-alone " proposal s at Carlsba dan dSilve r

Cit y fo r servic e t o Albuquerque , utilizin g 9-seat Cessn a208 B aircraft

. A t Carlsbad , th e carrie r

woul dprovid e 1 2 weekl y nonsto p roun dtrip s for

an annua l subsid y requiremen t o f $1,350,253

. A t

Silve r City , th e carrie r

woul dprovid e 1 8 weekl y nonsto p roun dtrip s fo r $1,332,184

.

### Gulfstrea m Gulfstream , utilizin g 19-seat Beec h 190 0 aircraft , submitte daproposa l for servic e a t Carlsbad , Clovi s an d Silve r City

. However , th e carrier' s proposa l fo r servic e at

th e 3 New Mexic o EA S communitie s wa s als o package dtogethe r

with servic e a

t 4 Arizon aEA S communitie s i n a n "al l o r nothing " bid

. Th e leve l o f service , hu b serve dan dannua l subsid y requiremen t a t eac h communit y i s provide di n th e tabl e below

. Silve r City wil l receiv e dual-hu b servic e for acombine dannua l subsid y o f $1,749,879

. 

### .Community Carlsba d Clovi s Silve r Cit y 

### Weekly Roun dTrip s 1 2 1 2 6 6 

### Hu

b Serve d Albuquerqu e Albuquerqu e Albuquerqu e Phoeni x 

### Annua l Subsid y

Requiremen t $1,749,27 2 $2,658,12 2 $776,11 9 $973,76 0 

### SeaPor t SeaPort woul dutiliz e 9-sea

t Pilatu s PC-1 2 aircraf

t an dha s propose dt o operat e fro mnon-steril e gate s a t Silve r City , Carlsba dan dAlbuquerque

. A t Carlsbad , th e carrie r

propose dt o provid e 1 2 nonsto p roun dtrip s pe r wee k t o Albuquerqu e fo r

afirst-year

subsid y o f

$1,156,00 1 an dasecond-year rat e o f $1,152,468

. At Clovi s an dSilve r

City , SeaPort

propose dtw o servic e options

. Optio n # 1 woul dprovid e 1 8 roun dtrip s betwee n eac h EA S communit y an dAlbuquerqu e awee k for a n annua l subsid y o f

$1,449,352

. Optio n # 2 woul d provid e 1 4 dail y roun dtrip s betwee n eac h EA S communit y an dAlbuquerqu e awee k for annua l for

$1,127,80 5 i n annua l subsidy

. Pleas e not e tha t th e numbe r

o f weekl y roun dtrip s a

t Silve r City fo r Option s # 1 an d# 2 ar e consisten t with th e tex t

o f SeaPort' s proposa l bu t

differ slightl y fro mth e exhibit s th e carrie r submitted

. Bot h o f SeaPort' s proposal s includ e mentio n o f an interlin e agreemen t

with U S Airways ; however , th e detail s an dapplicabilit y o f

th e agreemen t

at Albuquerqu e ar e not

discussed

. 

### Grea t Lake s Grea t Lakes , th e incumben t

carrie r a t Clovi s an dSilve r

City , submitte daproposa l with stand-alon e option s for EA S a t th e tw o communities , utilizin g 19-sea t Beec h 190 0 aircraft

. A t Clovis , Grea t

Lake s propose dt o provid e 1 2 nonsto p roun dtrip s pe r wee k betwee n th e communit y an dAlbuquerqu e o r Denver , one-sto p ove r

Sant aF e o r Puebl o a t annua l subsid y o f

$1,592,157

. A t

Silve r City , th e carrie r

propose s t o provid e 1 2 nonsto p roun dtrip s pe r wee k betwee n th e communit y an dAlbuquerque , Phoeni x o r Denver , one-sto p ove r

SantaF e o r

a combinatio n o f

Phoeni x an dDenve r

vi aSant aF e at

annua l subsid y o f

$1,594,092

. Pleas e not e that

th e average passenge r

fare show n it s proposa l doe s not necessaril y reflec t

th e average loca l fare passenger s woul dactuall y pay , but , rather , reflec t aprorate dportio n o f

th e tota l ticke t

pric e (e.g. , th e Carlsba d- Albuquerqu e portio n o f

aCarlsba d- Albuquerqu e - Washington , D.C

. ticket ) tha t th e subsidize dcarrie r

woul d realize

. Also , th e fare show n i s ne t o f certai n charge s suc h a s Federa l transportatio n security fees , excis e o r ticke t taxes , an dPassenge r

Facilit y Charges

. O f

course , carrier s hav e th e discretio n t o charg e fare s the y dee m appropriate , an dth e passenge r fare presente di n th e proposa l ha s bee n develope dfor subsid y rat e computatio n purpose s only

. Base do n th e cos t element s incorporate di n th e carriers ' computatio n summary , th e carrier s woul dhav e t o realiz e passenge r fare s comparabl e t o th e average s show n i n thei r proposal s i n orde r

t o achiev e break-eve n o r

profitabl e operation s withou t subsidy

. Yo u shoul dals o not e that th e carriers ' schedule s may chang e t o reflec t changin g condition s (e.g. , t o bette r mee t shiftin g connectin g ban k

time s a t th e hub)

. Th e Departmen t doe s expec t

subsidize dai r

carrier s t o maintai n well-time dan dwell-space dflight s i n orde r t o ensur e ful l compensation

.A s aresul t

o f th e confusio n ove r

Ne w Mexic o Airlines ' subsidy-fre e servic e a t Clovi s an dtoday' s developmen t regardin g Gulfstream , w e hav e decide dt o exten dth e du e dat e fo r comment s an dpreference s unti l February 22

. Becaus e w e expec t

t o decid e th e Montan acas e withi n tw o weeks , that dat e shoul dgiv e th e communitie s sufficien t tim e after

Gulfstream' s statu s i n thi s cas e i s clarified

. Pleas e sen dyou r comment s b y fa

x t o 202-366- 763 8 o r b y emai l t o both dennis.devany@dot.go v an dbrian.swanson@dot.gov

. Ou r rule s requir e that

yo u sen d you r comment s t o carrier s a s well

. I f yo u hav e an y questions , o r nee dmor e tim e t o reply , pleas e fee l fre e t o contac t Bria n Swanso n o f

my staf f a t 202-366-5392

. Sincerely ,
Denni s J

. DeVan y Chief , Essentia l Ai r

Servic e Division , X-5 3 Offic e o f Aviatio n Analysi s