### u.s.Departmentof Transportation Officeofthe Secretary ofTransportation

July 8,2010 Thomas C. Frungillo Airport Manager Bradford Regional Airport 212 Airport Dr. Lewis Run, PA 16738
Dear Mr. Frungillo: 1200 NewJersey Avenue, SE Washington, DC 20590

I would like to update you onthe essential air service (EAS) situation at Bradford and give you an opportunity to submit any comments ifyou wish. In anticipation ofthe end ofGulfstream'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 Bradford. Atthis stage, wewould normally ask for your preferences for various carrier and service options. However, inresponse to that order, Gulfstream International Airlines, Inc. (Gulfstream), the incumbent, was the only carrierto submit a proposal. Nonetheless, we want to give you an opportunity to submit any final comments for the record that you mayhave. Copies ofGulfstream's proposal maybe accessed onlinethrough the Federal Docket Management System (FDMS) at: http://www.regulations.gov/byentering "DOT-OST2003-14528" inthe "Enter Keyword or!D" field. Gulfstreamproposes 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

- Clevelandrouting, for an annual subsidy of $1,087,306. This assumes Oil CitylFranklin's continued eligibilityintheEAS program, which the Department is reviewing. IfOil CitylFranklin is deemedno longer eligible to participate intheEAS program, Gulfstream's annual compensationrequirement for its service to Jamestown wouldbe $1,116,213. Service would be operated as Continental COlmection, utilizing Beech 1900D aircraft. We are also cUl1'ently reviewing Gulfstream's compensationrequirement.

### - 2

- Mypurpose in \;"rriting to YOH at this time is to requesl any final comments you might have on the carriers' service and subsidy proposals before we submit a recommendation on the carrier-selection 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 Bradford passengers would actually pay, but, rather, reflect a prorated portion ofthe total ticket price, e.g., the Bradford

- Cleveland portion ofa Bradford

- Cleveland

- Seattle/Tacomaticket that the subsidized carrier would realize. Also, the fare shown is net ofceltain charges such as Federal transportation security fees, excise orticket taxes, and Passenger Facility Charges. Ofcourse, carriers have the discretion to charge fares they deem appropriate, and the passengerfares presented in their proposals have been developed for subsidyrate computation purposes only. Based on the cost elements incorporated in the carrier's computation summaries, Gulfstream would have to realize passenger fares comparable to the averages shown in their proposals in order to achieve break-even orprofitable operations without subsidy. You should also note that the schedules that the carrier has 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 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. Should you have any questions orneed additional time to draft your comments, please let us know. Please send your comments via e-mail to EAS@dot.gov orby fax to 202-366-7638. If you have any questions, please feel free to contact Kevin Schlemmer ofmy staffat kevin.schlemmer@dot.gov or 202-366-3176. Similar letters have been sent to the civic officials ofthe other EAS communities at issue here.
Sincerely,

# b2~/Vl~~

# . Dennis J. DeVany Chief, Essential Air ServiceDivision, X-53 Office ofAviation Analysis