us. Department of 

Transportation 

Office of the Secretary 

of Transportation 

July 8,2010 

The Honorable Samuel Teresi 

Mayor of the City of Jamestown 

City Hall 

200 E 3rd St. 

Jamestown, NY 14701 

Dear Mayor Teresi: 

1200 New Jersey Avenue, Sf 

Washington, DC 20590 

I would like to update you on the essential air service (EAS) situation at Jamestown and give 

you an opportunity to submit any comments if you wish. In anticipation of the end of 

Gulfstream's current contract on September 30,2010, the Department issued Order 2010-5-22, 

May 19,2010, to solicit proposals 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 of the proposals may be accessed online through the Federal Docket Management 

System (FDMS) at: http://www.regulations.gov/by entering "DOT-OST-2003-14950" in the 

"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 - Cleveland routing, for an annual subsidy of $1,639,254. 

This assumes Oil CitylFranklin's continued eligibility in the EAS program, which the 

Department is reviewing. If Oil 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 would be operated as Continental Connection, utilizing Beech 

1900D aircraft. We are also currently reviewing Gulfstream's compensation requirement. 

Charter Air Transport proposes to operate 11 nonstop round trips per week to Buffalo, with 

two options for the type of aircraft utilized. If 19-seat J32 aircraft are used, the annual subsidy 

rate is $-1,441,308. If 30-seat EMB-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 might have 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 of the 

total ticket price, e.g., the Jamestown - Cleveland portion of a Jamestown - ClevelandSeattle/Tacoma ticket 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. Of course, carriers have the discretion to charge fares they deem appropriate, 

and the passenger fares presented in their proposals have been developed for subsidy rate 

computation purposes 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 Department expects 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 have before 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 if you have any questions or if you 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 or by fax to 

202-366-7638. If you have any questions, please feel free to contact Kevin Schlemmer of my 

staff at kevin.schlemmer@dot.gov or 202-366-3176. 

Similar letters have been sent to the civic officials of the other three EAS communities at 

issue here. 

Sincerely, 

J9~J Dennis J. D~any [). £).e JI ~ 

Chief, Essential Air Service Division, X-53 

Office of Aviation Anal ysis