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^ -1^0 3 Swanson , Bria n (OST) ''^^yft F ^ ^ From : Swanson , Bria n (OST ) ;: [ rprcATjrJM q Sent : Tuesday , Januar y 11 , 2011 11:1 0 A M • -- • ' v^ ' - To : 'dale.janway@cityofcarlsbadnm.com' ; 'ssummers@cityofclovis.orc|' ; 'gbrumfield@cityofclovis.org' ; 'jtliomas@cityofy!yvife.brg'f^^ilva^cityofdeming.org' ; 'mayor@townofhurleynm.com' ; 'mayor@townofsilvercity.org' ; 'jsaari@grantcountynm.com' ; 'Truitt , Lee , NMDOT ' Cc : Devany , Denni s (OST) ; 'Ctiucl < Howel l (chowell@flygreatlakes.com)' ; 'Gre g Kahlstorf' ; 'Seaport/Wing s o f Alaska , Ro b McKinney' ; 'Micke y Bowma n (mbowma@gulfstreamair.com) ' Subject : Solicitin g Comment s o n EA S i n Ne w Mexic o
All : I woul dlike t o updat e yo u o n th e Essentia l Ai r Servic e (EAS ) situatio n in Ne w Mexic o an dgiv e yo u a n opportunit y t o submi t comment s if

yo u wish

. I n anticipatio n of

th e en do f

Grea t Lakes ' curren t

contrac t o n Apri l 30 , 2011 , th e Departmen t issue dOrde r

2010-11- 9 o n Novembe r

10 , 2010 , t o solici t

proposal s fro mal l intereste dai r carrier s t o provid e EA S at Clovi s and/o r

Silve r City/Hurley/Demin g (Silve r City) , for

ane w two-year

term , beginnin g May 1 , 2011

. Similarly , b y Orde r 2010-12-1 0 o n Decembe r

6 , 2010 , an din anticipatio n of th e en do f

Ne w Mexic o Airlines ' curren t contrac t at Carlsba do n Ma

y 31 , 2011 , th e Departmen t

solicite dproposal s fro mal l intereste dai r carrier s t o provid e EA S at Carlsbad , fo r

ane w two-year

term , beginnin g Jun e 1 , 2011

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

. Grea t

Lakes , Ne w Mexic o Airlines , Gulfstream Internationa l Airlines , Inc

. (Gulfstream) , an dAlask aJunea u Aeronautics , Inc

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

. O n Januar y 7 , 2011 , Ne w Mexic o Airline s provide dnotic e t o th e Departmen t that it wil l launc h thre e dail y nonsto p roun d trip s betwee n Albuquerqu e an dClovis , o n asubsidy-fre e basis , utilizin g 9-seat Cessn a208 B aircraft , startin g May I , 2011

. W e note di n footnot e I o f Orde r 2010-11-9 , "I n case s wher e acarrie r propose s t o provid e essentia l ai r servic e withou t

subsid y an dw e determin e tha t servic e ca n b e reliabl y provide dwithou t suc h compensation , w e d o no t procee dwit

h th e carrier-selectio n case . Instead , w e simpl y rel y o n tha t carrier' s subsidy-fre e servic e a s proposed. " (Se e als o 4 9 U.S.C

. § § 4173 2 (b)(3)(A ) an d4173 3 (d) , statin g tha t th e Secretary shal l pay compensatio n onl y whe n i t i s necessary t o maintai n EA S at th e community. ) A s aresult , th e Departmen t wil l rel y o n Ne w Mexic o Airlines ' propose d subsidy-fre e flight s t o serv e a s EA S at Clovis

. W e wil l als o synchroniz e th e en ddate s for th e ne w tw o year

contract s for EA S at Carlsba dan dSilve r

City

. W e assur e Clovis , however , that th e communit y i s stil l entitle dt o EAS

. Therefore , i f at som e poin t

i n th e future Ne w Mexic o Airline s decide dt o suspen dservic e at Clovis , it

woul dfirs t

hav e t o fil e a90-da y notic e o f it s inten t t o suspen d service , an dth e Departmen t woul drequir e Ne w Mexic o Airline s t o continu e t o provid e servic e unti l w e coul dsecur e replacemen t

servic e throug h acarrier-selectio n process . Ne w Mexic o Airline s Ne w Mexic o Airline s submitte d"stand-alone " proposal s a t 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 a n annua l subsid y requiremen t

of $1,350,253

. A t

Silve r City , th e carrie r

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

. Gulfstrea m Gulfstreamsubmitte daproposa l for servic e at

Carlsbad , Clovi s an dSilve r City

. However , th e carrier' s proposa l for servic e at th e 3 Ne w Mexic o EA S communitie s wa s als o package dtogethe r wit h servic e at

4 Arizon aEA S communitie s i n a n "al l o r nothing " bid , an dbecaus e w e wil l rel y o n Ne w Mexic o Airlines ' subsidy-fre e servic e at Clovis , Gulfstream' s proposa l wil l no t

b e considered

. SeaPor t SeaPor t woul dutiliz e 9-seat

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 Silve r City , SeaPor t

propose dtw o servic e options

. Optio n # 1 woul dprovid e 1 8 nonsto p

1roun dtrip s t o Albuquerqu e awee k fo r a n annua l subsid y o f

$1,449,352

. Optio n # 2 woul dprovid e 1 4 dail y nonsto p roun d trip s t o Albuquerqu e awee k for annua l for

$1,127,80 5 in annua l subsidy

. Pleas e not e tha t th e numbe r

o f weekl y roun d trip s a t Silve r Cit y fo r Option s # 1 an d# 2 ar e consisten t wit h th e tex t of SeaPort' s proposa l bu t

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

submitted

. 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 for

afirst-year

subsid y o f

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

. SeaPort' s proposa l include s mentio n of

a n interlin e agreemen t

with U S Airways ; however , th e detail s an dapplicabilit y of th e agreemen t

a t Albuquerqu e ar e no t

discussed

. Grea t Lalce s Grea t Lakes , th e incumben t

carrie r at Clovi s an dSilve r

City , submitte daproposa l wit h stand-alon e option s fo r EA S at th e tw o communitie s utilizin g 19-sea t Beec h 190 0 aircraft

. Unde r it s proposal , Grea t

Lake s propose s t o provid e 1 2 nonsto p roun dtrip s pe r

wee k betwee n Silve r

City an dAlbuquerque , Phoeni x o r Denver , one-sto p ove r

Sant aF e o r

acombinatio n o f Phoeni x an dDenve r

vi aSant aF e at

annua l subsid y o f

$1,594,092

. Copie s o f th e proposal s wer e sen t

vi aemai l las t

wee k an dma y als o 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 DOT-OST-2002-1280 2 (fo r Carlsbad ) an d DOT-OST-21996-190 3 (fo r Silve r City)

. Pleas e not e that

th e averag e passenge r

fare show n it s proposa l doe s no t necessaril y reflec t

th e averag e local fare passenger s woul dactuall y pay , but , rather , reflec t aprorate dportio n of

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 ) that th e subsidize dcarrie r

woul drealize

. Also , th e fare show n i s ne t o f certai n charge s suc h a s Federa l transportatio n securit y fees , excis e o r ticke t taxes , an d Passenge r Facilit y Charges

. O f

course , carrier s hav e th e discretio n t o charg e fare s the y dee mappropriate , an dth e passenger 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 din 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 in thei r proposal s in 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 tha t th e carriers ' schedule s ma y 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 at 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

. W e reques t

that yo u submi t

an y comment s yo u ma

y hav e a s soo n a s possible , bu t i n an y cas e n o late r

than Februar y 11 , 2011

. Pleas e sen dyou r

comment s by fa

x t o 202-366-763 8 o r

b y emai l t o both dennis.devany@dot.go v an d brian.swanson@dot.gov

. Ou r rule s requir e tha t

yo u sen dyou r

comment s t o carrier s a s well

. I f yo u hav e any questions , o r nee dmor e tim e t o reply , pleas e feel fre e t o contac t Bria n Swanso n o f

m y 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 of Aviatio n Analysi s From : Swanson , Bria n (OST ) Sent : Friday , Januar

y 07 , 201 1 4:0 3 P

M To : 'daie.janway@cityofcarlsbadnm.com' ; 'administration@cityofciovis.org' ; 'mayor@cityofciovis.org' ; 'mayor@townofsilvercity.org' ; 'hurley@hurleynm.com' ; 'services@cityofdeming.org' ; 'ssummers@cityofclovis.org ' Cc : Devany , Denni s (OST) ; Chuc k Howel l (chowell@flygreatlakes.com) ; 'Gre g Kahlstorf ; 'Seaport/Wing s o f Alaska , Rob McKinney' ; Micke

y Bowma n (mbowma@gulfstreamair.com) ; Truitt , Lee , NMDO T Subject : Ne

w Mexic o EA S proposal s 

### All :

### I n advance o

f th e weekend , attache d pleas e fin d th e proposal s submitte d fo rEA S a t Carlsbad , Clovis , an d Silve rCity/Hurley/Deming , Ne w Mexico

. A secon d e-mail/lette rwil l follo w shortl y summarizin g th e proposal s an d solicitin g communit y comment s an d preferences

. Regards , Bria n Swanson , AIC P U.S

. Departmen t o f Transportatio n Offic e o f Aviatio n Analysis , X-5 0 W86-47 3 120 0 Ne w Jerse y Avenue , S.E

. Washington , D C 2059 0 Tel 202.366.539 2 Fa x202.366.763 8