### us.Departmentof Transportation OfficeoftheSecretary ofTransportation

July 8,2010 The Honorable Samuel Teresi Mayor ofthe City ofJamestown City Hall 200 E 3rd St. Jamestown, NY 14701 DearMayor Teresi: 1200 NewJersey Avenue, Sf Washington, DC 20590

I would like to update you onthe essential air service (EAS) situation at Jamestown and give you an opportunity to submit any comments ifyou wish. In anticipation ofthe end of Gulfstream's current contract on September 30,2010, the Department issued Order2010-5-22, May 19,2010, to solicitproposals from all interested air carriers to provide EAS at Jamestown, for a new two-year term beginning October 1, 2010. In response to that order, we received proposals from two carriers: Charter Air Transport and the incumbent, Gulfstream International Airlines (Gulfstream). Copies ofthe proposals maybe accessed online through the Federal DocketManagement System (FDMS) at: http://www.regulations.gov/by entering "DOT-OST-2003-14950" inthe "Enter Keyword or ID" field. Gulfstream proposes to continue its 18 round trips per week to Cleveland Hopkins International Airport, operating on a Cleveland

- Jamestown

- Bradford

- Cleveland or a Cleveland

- Bradford

- Jamestown

- Clevelandrouting, for an annual subsidy of$1,639,254. This assumes Oil CitylFranklin's continued eligibility inthe EAS program, which the Department is reviewing. IfOil CitylFranklin is deemed no longer eligible to participate in the EAS program, Gulfstream's annual compensation requirement for its service to Jamestown would be $1,662,715. Service wouldbe operated as Continental Connection, utilizing Beech 1900D aircraft. We are also currentlyreviewing Gulfstream's compensationrequirement. CharterAir Transport proposes to operate 11 nonstop round trips perweekto Buffalo, with two options for the type ofaircraftutilized. If 19-seatJ32 aircraft are used, the annual subsidy rate is $-1,441,308. If30-seatEMB-120 aircraft are used, the annual subsidy rate is $1,796,925.

### - 2 - My purpose in writing to you at this time is to request any final comments you mighthave on the carriers' service and subsidy proposals before we submit a recommendation on the carrierselection issue to the Assistant Secretary for Aviation and International Affairs. Please note that the average passenger fares shown in each proposal do not necessarily reflect the average local fare Jamestown would actually pay, but, rather, reflect a prorated portion ofthe total ticket price, e.g., the Jamestown

- Clevelandportion ofa Jamestown

- ClevelandSeattle/Tacomaticket that the subsidized carrier would realize. Also, the fare shown is net of certain charges such as Federal transportation security fees, excise or ticket taxes, and Passenger Facility Charges. Ofcourse, carriers have the discretion to charge fares they deem appropriate, and the passenger fares presented in theirproposals have been developed for subsidyrate computationpurposes only. You should also note that the schedules that the carriers have submitted are illustrative only, and that they may make schedule changes to reflect changing conditions, e.g., to better meet shifting connecting bank times at the hub. The Departmentexpects subsidized air carriers to maintain well-timed and well-spaced flights in order to ensure full compensation. We request that you review each proposal and service option and submit any comments you may havebefore we submit a recommendation to the Assistant Secretary. We ask that you submit any comments you may have as soon as possible, but in any case no later than July 30, 2010. We will carefully consider your comments before we submit a recommendation to the Assistant Secretary for a decision. We appreciate that there are significant issues for you to consider, so ifyou have any questions or ifyou find that you need additional time to draft your comments, please let us know. Please send your comments to me at the following e-mail address: EAS @dOLgov orby fax to 202-366-7638. Ifyou have any questions, please feel free to contact Kevin Schlemmer ofmy staffat kevin.schlemmer@dot.gov or 202-366-3176. Similarletters havebeen sent to the civic officials ofthe other three EAS communities at issue here. Sincerely,

# J9~J 

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# JI**~** Dennis J.

# D~any Chief, Essential Air ServiceDivision, X-53 Office ofAviationAnalysis