# Before the United States Department of Transportation 

# Washington, DC July 24,2013

Essential Air Service at
VERNAL, UTAH Docket OST-1997-2706 MOAB, UTAH Docket OST-1997-2827 under 49 U.S.C. 41731 et.seq.
This document contains the response of Great Lakes Aviation, Ltd. to Order Requesting Proposals 2013-6-19 Great Lakes Aviation, Ltd. is pleased to submit these proposals to provide essential air transportation at these points in Utah.

Great Lakes is providing both two round trip and three round trip capacity options for Vernal. The proposed service for both Moab and Vernal are submitted without any upline restrictions. The proposals contemplate the use of 19 seat Beechcraft 1900D airliner equipment. Questions and comments may be referred to: Michael O. Matthews Chief Financial Officer Great Lakes Aviation, Ltd. 1022 Airport Parkway Cheyenne, WY 82001 (307) 432-7000 Great Lakes' proposals intend conveniently timed connecting services to our code-share partners (United and Frontier) at our Denver Hub. In addition, Great Lakes maintains interline ticketing and baggage agreements with the majority of the other carriers serving Denver, including interline e-ticketing agreements with American Airlines, Continental/United Airlines and U.S. Airways. All of which will offer passengers maxium access to the domestic and international air transportation system.Table of Contents: Subsidy Passengers Average Proposal Service Point(s) Hub(s) Served Round Trips Equipment RequirementForecast Fare

Part

1 Moab Denver 2 1900D $1,798,772 8,500 $117.05
2 Vernal Denver 2 1900D $1,297,615 10,000 $147.14
3 Vernal Denver 3 1900D $1,657,570 15,250 $147.02

# Great Lakes Aviation, Ltd. Annual Compensation Requirements for Essential Air Service at 

## Moab, Utah Two Round Trip (at 98 percent completion)
Departures: 1,221 Block Hours: 1,546 Revenue Passenger Miles: 2,405,500 Available Seat Miles: 6,565,317
Operating Revenues: Passenger: CNY 8,500 psgrs at $117.05 $994,925

Other: (at 0.62% of passenger revenue) $6,169 Total Operating Revenues: $1,001,094
Operating Expenses: Direct: Aircraft and Hull Insurance $202,623 Fuel and Oil $871,766 Flying Operations $304,934 Maintenance $437,525 Total Direct Expenses: $1,816,848 Total Indirect Expenses: $849,691 Total Operating Expenses: $2,666,539 Operating Loss ($1,665,445) Profit Element (5.0% of Total Operating Expenses) $133,327 Annual Compensation Requirement: $1,798,772 Bid assumes current Denver Hub schedule would serve as a representative schedule This proposal contemplates the use of 19 seat Beechcraft 1900-D aircraft The bid assumes no upline restrictions

# Great Lakes Aviation, Ltd. Annual Compensation Requirements for Essential Air Service at 

## Vernal, Utah Two Round Trip (at 98 percent completion)
Departures: 1,221 Block Hours: 1,546 Revenue Passenger Miles: 1,489,250 Available Seat Miles: 6,008,541
Operating Revenues: Passenger: VEL 10,000 psgrs at $147.14 $1,471,400

Other: (at 0.62% of passenger revenue) $9,123 Total Operating Revenues: $1,480,523
Operating Expenses: Direct: Aircraft and Hull Insurance $202,623 Fuel and Oil $863,754 Flying Operations $293,099 Maintenance $428,091 Total Direct Expenses: $1,787,567 Total Indirect Expenses: $858,278 Total Operating Expenses: $2,645,845 Operating Loss ($1,165,322) Profit Element (5.0% of Total Operating Expenses) $132,292 Annual Compensation Requirement: $1,297,615 Bid assumes current Denver Hub schedule would serve as a representative schedule This proposal contemplates the use of 19 seat Beechcraft 1900-D aircraft The bid assumes no upline restrictions

# Great Lakes Aviation, Ltd. Annual Compensation Requirements for Essential Air Service at 

## Vernal, Utah Three Round Trip (at 98 percent completion)
Departures: 1,221 Block Hours: 1,546 Revenue Passenger Miles: 1,489,250 Available Seat Miles: 6,008,541
Operating Revenues: Passenger: VEL 15,250 psgrs at $147.02 $2,242,055

Other: (at 0.62% of passenger revenue) $13,901 Total Operating Revenues: $2,255,956
Operating Expenses: Direct: Aircraft and Hull Insurance $370,475 Fuel and Oil $1,227,728 Flying Operations $457,597 Maintenance $655,728 Total Direct Expenses: $2,711,528 Total Indirect Expenses: $1,015,639 Total Operating Expenses: $3,727,167 Operating Loss ($1,471,211) Profit Element (5.0% of Total Operating Expenses) $186,358 Annual Compensation Requirement: $1,657,570 Bid assumes current Denver Hub schedule would serve as a representative schedule This proposal contemplates the use of 19 seat Beechcraft 1900-D aircraft The bid assumes no upline restrictions