June 28, 2012 JACK BROOKS REGIONAL AIRPORT

Aloha Ley Associate Director 2 l!J

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Small Community Air Service Development Program United States Department of Transportation 1200 New Jersey Avenue , SE Washington, DC 20590 Dear Ms

. Ley: 4875 PARKER DRIVE BEAUMONT,TX 77705 PH : {409) 719-4900 FAX: {409) 722-2830

Jack Brooks Regional Airport in Beaumont, Texas submitted a Small Community Air Service Development (SCASD) proposal on June 11, 2012 based on the Department's order soliciting proposals (Docket DOT-OST-2012

-0069)

. The proposal submitted by Jack Brooks Regional Airport and Jefferson County, Texas requested SCASD funding to market the Airport and to market the upgrade of United's service to Houston Intercontinental Airport from turboprop aircraft to regional jets. Colgan Air, which operated the service on behalf of United , is retiring its fleet of Saab 340 aircraft

. The Airport was advised in April that United would replace Colgan's service with another carrier operating as United Express with regional jet aircraft. Since our proposal was submitted on June 11 , I have been advised that Colgan will end service on June 30, which is earlier than originally anticipated. In addition, United has advised us that they will not continue to provide service with the regional jets, and have no other aircraft or contract with another carrier to provide aircraft service after June 30. Instead , they have made a decision to operate a United-coded bus service to their hub at Houston Intercontinental. Therefore, the Jack Brooks Regional Airport will not have any commercial air service beginning July 1

. United will continue to sell tickets to and from Beaumont/Port Arthur, but the segment between Beaumont/Port Arthur and Houston will operate with a bus instead of an airplane

. Because circumstances changed after our proposal was submitted, I am requesting the Department amend its consideration from SCASD funding aimed at marketing the Airport and United's upgrade to regional jets to a minimum revenue guarantee

. A minimum revenue guarantee would provide the Airport with a financial incentive to attract another carrier to Beaumont/Port Arthur. The proposal submitted by Jack Brooks Regional Airport included a provision to use SCASD funding for a minimum revenue guarantee as a back-up strategy in the event that the funding could not be used to market United's service. Given the fact that United will be operating bus service from Beaumont/Port Arthur, I believe use of the funding for a minimum revenue guarantee would be more effective than proceeding with the original strategy. Given United's decision to discontinue air service at Beaumont/Port Arthur, the need to develop the community's air service is greater than ever, and SCASD funding targeted for a minimum revenue guarantee would assist the com munity in its effort to replace the service United will discontinue

.SCASD Proposal, Jack Brooks Regional Airport- Page 2

Please let me know if you have any questions or require additional information. Thank you for your consideration. Sincerely,

# ~;t~~ ca:,nifer L Hogancamp, C.M.

Airport Director