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. Departmen t O f : . i ••• ' • . ^ 120 0 Ne w jerse yAvenue , S E ItanSportOtio n Washington , D C 2059 0 Offic e O f th e Secnsiary•- w i ; \l \ ' ^ •• . Or ' o f Transportatio n Mayo r Mat t Bemric h Apri l 14
. 201 1 81 9 Firs t Avenu e South For t Dodge
. I A 5050 1 Dea r Mayo r Bemrich : Thi s lette r

i s regardin g essentia l ai r servic e (EAS ) a

t For t Dodge
. My puipos e i

n writin g i s t o infor myou o f th e result s of

th e carriers ' servic e an dsubsid y proposal s before w e submi t a recommendatio n o n th e carrier-selectio n issu e t o th e Assistan t Secretar y fo

r Aviatio n and hitemationa l Affair s for

decision
. A similar

lette r i s bein g sen t

to Maso n City
. A s you know
. Orde r

2011-1-12 , Januar y 14 , 2011 , requeste dproposal s a t For t Dodg e an dMaso n City , wit h proposal s du e Marc h 1
. B y Notic e date dFebruary 11
. 2011 , w e extende dth e deadlin e fo r proposal s to Apri l 5 , 2011
. I n respons e t o ou r

reques t fo r proposals , w e receive dproposal s fromMulti-Aero , Inc.
. d/b/ aAi r Choic e One ; Chautauqu aAirlines , awholl y owne dsubsidiary o f Republi c Airway s Holdings , d/b/aFrontie r

Express : Mesab aAviation , Inc. , d/b/ aDelt aConnection , an dSeaPor t Airlines
. W e emaile dthos e proposal s to th e parties , an dthe y can b e viewe da t th e Federa l Docke t Managemen t

System , http://www.rcgulations.go v unde r DOT-OST-2001-10682 , s o 1 wil l onl y briefl y summariz e the mhere
. Yo u ma y als o vie w asummary o f eac h proposa l i

n th e attache d Appendi x A
. Multi-Aer o Al l o f Mulli-Aero' s proposal s ar e for eithe r atwo-year

o r four-yea r period , wit

h afour-yea

r contrac t requirin g slightl y les s annual subsidy
. Al l o f th e proposal s contemplat e 30-seat aircraft , thoug h the y d o no t

specif y th e exac t

aircraf t typ e - presumabl y Embrae r Brasili aor

Saa b 340
. Multi-Aer o doe s no t

currentl y hav e th e requisit e authority fromeithe r th e Federal Aviatio n Administratio n o r

th e Departmen t

t o operat e 30-seat

aircraf t i n schedule dservice
. Optio n 1 : Multi Aer o propose s 1 4 nonsto p roun dtrip s pe r week t o Chicag o O'Hare
. Th e carrie r

request s $2,692,13 8 annual subsid y for atwo-year

contract , an d$2,638,29 5 annual subsid y fo

r afour-yea

r contract . Optio n 2 : Multi Aer o propose s 1 4 nonsto p roun dtrip s per wee k t o Minneapolis
. Th e carrie r request s $2,508,59 2 annua l subsid y fo r atwo-year

contract , and$2,458,42 0 annual subsid y for

afour-year

contract . Optio n 3 : Thi s optio n i s par t of a n inseparabl e packag e wit h Maso n City i

n whic h For

t Dodg e woul dreceiv e 1 4 nonsto p roun dtrip s pe r week t o Chicag o an dMaso n City woul dreceiv e 1 9 nonsto p roun dtrip s per wee k for acombine dannua l subsid y of $5,456,09 9 for

tw o year s o r

$5,346,97 7 for

four years . However , th e leve l of servic e propose dfo

r Maso n Cit y exceed s progra mguideline s an dw e woul dno t selec t it , thu s leavin g thi s optio n moo t

fo r For t Dodg e a s wel l a s Maso n City
.SeaPor t

Airline s Seaport propose s 2 8 nonsto p roun dtrip s pe r wee k t o Minneapoli s with 9-sea t Pilatu s PC-1 2 aircraft , asingle-engin e turbopro p aircraft
. Th e carrie r request s $1,600,06 4 subsid y th e firs t yea r an d$1,652,94 2 subsid y th e secon dyear . Becaus e For t Dodg e i s guarantee dservic e with twin

engine , 15-sea

t aircraft , SeaPort' s subsidize dproposa l coul dno t b e selecte dunles s th e communit y waive dit s righ t t o thos e standards
. Mesab aAviation
. Inc
. Mesab apropose s onl y afive-mont h option , fromJun e 1 throug h Octobe r 31 , an dwoul dcontinu e t o operat e 1 4 nonsto p roun dtrip s pe r wee k t o Minneapoli s wit

h 34-seat Saab 34 0 aircraft
. Th e carrie r request s $1,910,99 5 annual subsid y fo r this leve l o f

service , whic h i

t revise ddownwar d fromit s initial proposa l afte r discussion s wit

h th e staff

. Mesab awoul doperat e a s Delt a Connection
. Chautauqu a Chautauqu apropose s 1 3 nonsto p roun dtrip s pe r week t o Milwauke e wit

h regiona l jets , eithe r 37-seat ERJ-13 5 o r

50-sea t ERJ-14 5 aircraft , an doperate dunde r acode-shar e agreemen t

wit h Frontier
. Th e carrie r

request s $4,148,22 4 annua l subsid y fo r thi s leve l o f

service
. Th e contrac t woul dpresumabl y b e fo r

atypica l two-year

period
. Pleas e not e that

th e .averag e passenge r

fare s i n th e carriers ' proposal s show n i n th e docke t d o no t necessaril y reflec t

th e averag e local fare s passenger s woul dpay , but , rather , reflec t th e prorate d portion-o f th e total ticke t

price , e.g. , th e For

t Dodge

- Minneapoli s portio n of aFo n Dodg e t o Minneapoli s t o Ne w Yor

k ticket
. Also , th e far

e show n i s ne t

o f certai n charge s suc h a s federal transportatio n securit y fees , excis e o r ticke t taxes , an dpassenge r

facility charges
. O f

course , carrier s hav e th e discretio n t o charg e fare s die y dee mappropriate , an dth e passenge r fare s presente di

n thei r proposal s hav e bee n develope dfor subsid y rat e computatio n purpose s only
. Base do n th e cos t

element s incorporate di n th e carriers ' computatio n summaries , th e canier s woul dhav e t o realiz e passenge r fare s comparabl e t o th e average s show n i n thei r proposal s i

n orde r t o achiev e break-eve n o r profitabl e operation s eve n wit h subsidy
. Yo u shoul dals o not e tha

t th e schedule s tha t

th e carrier s hav e submitte dan dthat ar e show n i

n th e docke t ar e illustrativ e only , an dthai eac h carrie r may mak e schedul e change s t o reflec t changin g conditions , e.g. , t o bette r

mee t shiftin g connectin g ban k time s a t th e hub{s)
. Th e Departmen t expect s 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 kno w thi s matte r i s importan t

t o yo u an dw e wil l ac t

a s quickl y a s possibl e upo n receip t of your letter
. I n orde r t o expedit e th e case , pleas e submi t your comment s b y emai l t o EAS^dot.izo v b y Ma y 3
. I f you hav e any question s o r d o no t wis h t o submi t

forma l comments , pleas e contac t Kevi n Adam s a

t (202 ) 366-1047
. Sincerely ,

Denni s J
. DeVan y Chief , Essentia l Ai r

Servic e Divisio n Offic e o f Aviatio n Analysi s

cc : Mesaba , SeaPort , Multi-Aero , an dChautauqu aAppendi xA

Annua l Subsid yRale s a i For t Dodge , Iowa

. Docke l 200 1 - 106S 2

Miilli-Aero , d/b/; i Air

Choic e On e EJTecliv e Perio d Cod e Shar e Roun d TripsAVee k Stop s Hu b Aircraf t Typ e Passenger

a Doparture s Bloc k Hour s Passenge rRevenu e Tciia l Revenu e Tota l Direct s Tota l Indirecl s Tota l operatin g Prod i Ei;ononii c Cos i Annua l Subsid yRat e Mesab a Delt a 1 4 Nonsto p MS P Saa b :i4 0 I8,IQ 4 1.41 6 1,62 5 $1,115,04 1 $1,292,61 1 51,934,53 4 $1,116,51 9 53,051.05. 1 $152.55. 1 $.1,201,60 6 $1,910,99 5 Chautauqu a 2 year s Frontie r 1 3 Nonsto p MK E ERJ-135/14 5 25.76 1 1.32 4 1.54 5
$1,763,01 8

$5,823,09 2 SKK.I5 0 $5,911,24 2 S4.148.22 4 Seapo n 2 1 1 S t Yea r Non e 2 8 Nonsto p MS P PC-1 2 1 1 .W O 2,83 2 2.06 7 $869,00 0 $877,69 0 51.627,42 5 $732,34 1 $2,359,76 6 5(17.^8 8 S2.477,75 4 $1,600,06 4 2n d Yea r Non e 2 8 Nonsto p MS P PC-1 2 I 1 .(.)0 0 2.83 2 2.06 7 $869,00 0 $877,69 0 $1,662,15 6 $747,97 0 $2,410,12 6 S ( 20.50 0 $2,530,63 2 $1,652,94 2 optio n 1 2 year s Non e 1 4 Nonsto p OR D 30-Seaic r 20.50 0 1 A S \ 1.78 9 $2,562,50 0 $2,613,75 0 •SI

. ISO , 1) 2 $873,11 5 $5,053,22 7 S 2 5 2.66 1 $3,305,88 8 $2.692.1.3 8 Optio n 2

2 years Non e 1 4 Nonsto p MS P 30-Seate r 20.50 0 1,43 1 1.64 5 52.419,00 0 $2,467,38 0 $3,871,70 3 $867,31 8 $4,739,02 1 $236.95 ) $4,975,97 2 $2,508,59 2 Oniio n 3

2 year s Non e 1 4 Nonsto p OR D 30-Seale r

$2,314,70 9

i/Jun e 1.2011 , throug h Octobe r31 , 2011 , i,e.. 5 months

. Th e number s show n lo rMesab a ar e annualized , I I Seaport indicate s servic e woul d b e Jun e 20 1 I ihoug h Ma y2013 , W e interpre t thi s t o mea n a iwo-yca rperiod

. sinc e i t i s unlikel ytha t a carrie rtransitio n coul d b e conclude d b yJun e I 3 / Multi-Aer o offer s th e optio n o f a 4-yea rcontract , i n whic h cas e i t woul d requir e les s subsidy , a s t'oMows : Optio n 1.S2.638.295 : Optio n 2 , $2,458,420 ; Optio n 3 , $2,268,414

. 4 / Optio n 3 I S a n inseparabl e packag e forMaso n Cit yan d Fo n Dodge , \v\(\ i Maso n Cit y receivin g ) 9 roun d tnp s a »i'e k an d Fort Dodg e 1 4 roun d trip s pe rweek

. T o allocat e betwee n Fo n Dodg e an d Maso n City , w e hav e arbitraril y applie d a rati o o f 14/3 3 t o th e two-cii ypackag e