Order: 2011-12-4

 Served: December 13, 2011

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 13th of December, 2011

Essential Air Service at

PUEBLO, COLORADO

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

Docket DOT-OST-1999-6589

ORDER SELECTING CARRIER

Summary

By this order, the Department is re-selecting Great Lakes Aviation, Ltd. (Great Lakes) to 

continue to provide essential air service (EAS) at Pueblo, Colorado, at an annual subsidy rate of

$1,592,276, for the two-year period from February 1, 2012, through January 31, 2014.1

Background

By Order 2009-11-15, November 23, 2009, the Department selected Great Lakes Aviation, Ltd. 

(Great Lakes) to provide 12 nonstop round trips per week to Denver International Airport using 

19-passenger Beech 1900 aircraft, for the two-year period from February 1, 2010, through 

January 31, 2012, at an annual subsidy amount of $1,299,821.

Beginning prior to the current contract, Great Lakes provided one additional daily round trip at 

Pueblo. On June 9, 2011, Great Lakes added a second unsubsidized round trip for a total of 24 

round trips per week, double the amount of service we selected it to provide. On September 30, 

2011, one of the four round trips was scheduled to be shared with Liberal/Guymon, Kansas 

(another subsidized-EAS community). On November 20, 2011, one of the remaining three 

 1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated funds.
- 2 -

nonstop round trips between Pueblo and Denver was discontinued, leaving two nonstop round 

trips (12 per week) and an additional round trip shared with Liberal/Guymon (6 per week).2

In anticipation of the end of the current rate term, the Department issued Order 2011-8-18, 

August 16, 2011, soliciting proposals to provide efficient EAS, with or without subsidy support, 

at Pueblo, for a new, two-year period. 

Proposal of Great Lakes 

Great Lakes, the incumbent, was the only carrier to submit a proposal. Great Lakes’ proposal 

offers two options, both utilizing 19-seat aircraft, for a two-year period. The first option is two 

nonstop round trips each weekday and weekend to Denver (12 per week), for an annual subsidy 

of $1,592,276. The second option is three nonstop round trips each weekday and weekend to 

Denver (18 per week), for an annual subsidy of $1,988,345. Order 2011-8-18 requested 12 

nonstop round trips per week with 15-seat or larger aircraft or 18 nonstop round trips per week 

on aircraft with less than 15 passenger seats. Thus, Great Lakes’ three-round-trip pattern 

exceeds our requested level of service. Great Lakes’ complete proposal may be accessed online 

at http://www.regulations.gov/ by entering “DOT-OST-1999-6589” in the “Keyword or ID” 

field.

Community Comments

On September 15, 2011, we requested community comments regarding the carrier selection at 

Pueblo. We received an e-mail from the Mark Lovin, Director of Aviation at Pueblo Memorial 

Airport. Mr. Lovin states, “[w]e do not have any operational concerns regarding the Great Lakes 

service in Pueblo” and Great Lakes has improved the realiability and timeliness of its service.

Further, “the City of Pueblo prefers the higher subsidy rate of 3 flights per day. However, we 

recognize the DOT service level of Option 1, 2 flights per day.”

Decision

Great Lakes has served Pueblo for several years and continues to provide them with reliable 

essential air service. We find that both the service and subsidy levels are reasonable. Therefore, 

we will reselect Great Lakes for an additional two-year period, from February 1, 2012, through 

January 31, 2014, to provide Pueblo with 12 nonstop round trips a week to Denver with 

Beechcraft 1900 aircraft. 

We shall make this selection at Pueblo contingent upon the Department’s receiving properly 

executed certifications from Great Lakes that it is in compliance with the Department’s 

regulations regarding drug-free workplaces and nondiscrimination, as well as the regulations 

concerning lobbying activities.

Carrier Fitness

49 U.S.C. 41737(b) requires that we find an air carrier fit, willing, and able to provide reliable 

service before we may subsidize it to provide essential air service. Great Lakes is subject to the 

Department’s continuing fitness requirements, and no information has come to our attention that 

 

2 While Great Lakes has provided service well above Pueblo’s EAS levels over the course of the contract period, we 

will continue to subsidize the service nonetheless. In short, Great Lakes is only able to offer the additional, subsidyfree service because many of its fixed costs, station costs, for example, are embedded in the subsidy rate for the first 

two round trips a day that constitute basic EAS.
- 3 -

would cause us to question the carrier's fitness at this time. We have contacted the Federal 

Aviation Administration, and it has raised no concerns that would negatively affect our fitness 

finding. We therefore conclude that the carrier remains fit to conduct the operations proposed 

here.

This order is issued under authority delegated in 49 CFR 1.56a(f).

ACCORDINGLY,

1. We select Great Lakes Aviation, Ltd., to provide essential air service at Pueblo, Colorado;

2. We set the final rate of compensation for Great Lakes Aviation, Ltd., for the provision of 

essential air service at Pueblo, Colorado, as described in Appendix C;

3. We direct Great Lakes Aviation, Ltd. to retain all books, records, and other source and 

summary documentation to support claims for payment, and to preserve and maintain such 

documentation in a manner that readily permits its audit and examination by representatives of 

the Department. Such documentation shall be retained for seven years or until the Department 

indicates that the records may be destroyed, whichever comes first. Copies of flight logs for 

aircraft sold or disposed of must be retained. The carrier may forfeit its compensation for any 

claim that is not supported under the terms of this order;

4. We find that Great Lakes Aviation, Ltd ., continues to be fit, willing and able to operate as a 

commuter carrier and capable of providing reliable essential air service at Pueblo, Colorado; 

5. This docket will remain open until further order of the Department; and

6. We will serve copies of this order on the City Manager of Pueblo, Colorado, the Director of 

Aviation at Pueblo Memorial Airport, and Great Lakes Aviation, Ltd.

By:

SUSAN L. KURLAND

Assistant Secretary

for Aviation and International Affairs

(SEAL)

An electronic version of this document is available at

http://www.regulations.gov
Appendix A

AREA MAP
Appendix B
Appendix C

Great Lakes Aviation, Ltd.

Essential Air Service to be Provided at Pueblo, Colorado

Effective Period: February 1, 2012, through January 31, 2014

Scheduled Service: 12 nonstop round trips each week to Denver International Airport

Aircraft: Beechcraft 1900-D, 19 seats

Rate per Eligible Flight: $1,2981

Weekly Ceiling: $31,1522

Note: The carrier understands that it may forfeit its compensation for any flights that it does not operate in 

conformance with the terms and stipulations of the rate order, including the service plans outlined in the order and 

any other significant elements of the required service, without prior approval. The carrier understands that an 

aircraft take-off and landing at its scheduled destination constitutes a completed flight; absent an explanation 

supporting subsidy eligibility for a flight that has not been completed, such as certain weather cancellations, only 

completed flights are considered eligible for subsidy. In addition, if the carrier does not schedule or operate its 

flights in full conformance with the order for a significant period, it may jeopardize its entire subsidy claim for the 

period in question. If the carrier contemplates any such changes beyond the scope of the order during the applicable 

period of these rates, it must first notify the Office of Aviation Analysis in writing and receive written approval from 

the Department to be ensured of full compensation. Should circumstances warrant, the Department may locate and 

select a replacement carrier to provide service on these routes. The carrier must complete all flights that can be 

safely operated; flights that overfly points for lack of traffic will not be compensated. In determining whether 

subsidy payment for a deviating flight should be adjusted or disallowed, the Department will consider the extent to 

which the goals of the program are met and the extent of access to the national air transportation system provided to 

the community.

If the Department unilaterally, either partially or complete, terminates or reduces payments for service or changes 

service requirements at a specific location provided for under this order, then, at the end of the period for which the 

Department does make payments in the stipulated amounts or at the stipulated service levels, the carrier may cease 

to provide service to that specific location without regard to any requirement for notice of such cessation. Those 

adjustments in the levels of subsidy and/or service that are mutually agreed to in writing by the Department and 

carrier do not constitute a total or partial reduction or cessation of payment.

Funds are not currently available for performance under this order beyond September 30, 2012. The Department’s 

obligation for performance under this order beyond September 30, 2012, is subject to the availability of appropriated 

funds from which payment for services can be made. No legal liability on the part of the Department for any 

payment may arise for performance under this order beyond September 30, 2012, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond September 30, 2012, the 

Department will provide notice in writing to the carrier.

Subsidy contracts are subject to, and incorporate by reference, relevant statutes and Department regulations, as they 

may be amended from time to time. However, any such statutes, regulations, or amendments thereto shall not 

operate to controvert the foregoing paragraph.

All claims for payment must be submitted within 60 days of the last day of service provided under this order.

 1 Annual compensation of $1,592,276, divided by 1,227 annual departures (313 service days x 4 flights per service 

day x 98 percent completion).

2 24 arrivals and departures per week (per community) multiplied by $1,298 per flight.