Before the United States Department of Transportation

Washington, DC

January 14, 2015

Essential Air Service at

ALLIANCE, NEBRASKA Docket OST-2000-8322

CHADRON, NEBRASKA

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

This document contains the response of Great Lakes Aviation, Ltd. to Order Requesting

Proposals 2014-11-10

Great Lakes Aviation, Ltd. is pleased to submit these proposals to provide essential air 

transportation to these Nebraska communities addressed in the Order as an inseparable 

package. 

Great Lakes is proposing two different service alternatives for both communities. The 

proposals consist of Beech 1900D service configured with nine seats and Beech 1900D 

service configured with 19 seats. Great Lakes is proposing two roundtrips per day operating 

Beech 1900D aircraft configured for nine seats. Due to pilot supply, this is the current level of 

service we have been forced to offer Alliance and Chadron. To illustrate the economic impact 

of the effect of the pilot shortage on small community air service, the Beech 1900D service 

with 19 seats offers a substantial reduction in subsidy requirement due to the availability of 

more seats which can generate more passenger traffic and revenue.

Changes to FAA pilot qualification rules have created an industry-wide pilot shortage which has 

had an acute impact on Great Lakes. These rules mandated that first officers obtain an Airline 

Transport Pilot certification (“ATP”) prior to being qualified to perform crewmember duties in 

scheduled airline passenger service under FAR Part 121 regulatory requirements. A key 

factor to enable a pilot to receive an ATP certificate is the accumulation of 1,500 flight hours. 

Our proposals contemplate conveniently timed connecting services to our Denver hub, 

whereby passengers may utilize our code-share agreement with United Airlines. In addition to 

our code share agreement with United Airlines, Great Lakes maintains electronic interline 

ticketing and baggage agreements with American, Delta and United. Passengers will also be 

eligible for Delta Sky Miles Frequent Flyer program when travel is booked through Delta's 

sales channels. All of which will offer passengers traveling to and from these communities 

supplemental access to the domestic and international air transportation system.
The proposed service is being offered utilizing pressurized, twin-engine Beechcraft 1900D 

aircraft flown by two pilots. 

Questions and comments may be referred to:

Michael O. Matthews

Chief Financial Officer

Great Lakes Aviation, Ltd.

1022 Airport Parkway

Cheyenne, WY 82001

(307) 432-7000

It is Great Lakes' belief that the unintended consequences of the changes in pilot qualification 

rules have debilitated small community air service whereby excessive subsidy requirements 

will force communities to loose EAS service eligibility. To avert these unintended 

consequences and revitailize small community air service, will necessitate regulatory relief. 

Great Lakes stands ready to participate in creative solutions to assist small communities in 

their efforts to remain in the National Air Transportation System.

Great Lakes received FAA operations specifications allowing us to hire pilots under its FAR 

Part 121 certificate utilizing FAR Part 135 regulatory hiring requirements. This allows our new 

hire pilots to operate the Beech 1900D aircraft in a nine seat configuration and will enable 

Great Lakes to restore pilot staffing levels while maintaining FAR Part 121 pilot training and 

aircraft maintenance standards.
Table of Contents:

Round Subsidy Passengers 

Bid Service Points Hub Served Trips Equipment Requirement Forecast 

1 Alliance & Chadron Denver 2 Nine Seat Beech 1900D $2,998,295 

4,350 

2 Alliance & Chadron Denver 2 19 Seat Beech 1900D $2,690,607 

8,500 

Cost of 1,500 hour ATP to EAS program $307,687 (4,150) 
Great Lakes Aviation, Ltd.

Annual Compensation Requirements for Essential Air Service at

Alliance and Chadron, Nebraska to Denver (DEN)

Two Round Trips - Nine seat - B1900 - Historical schedules should be used as sample pattern of service

(at 98 percent completion)

Departures: 2,198

Block Hours: 1,588

Revenue Passenger Miles: 1,735,000

Operating Revenues:

Passenger: AIA 1,850 psgrs at $104.75 $193,788

CDR 2,500 psgrs at $117.94 $294,850

Other: (at 0.62% of passenger revenue) $3,030

Total Operating Revenues: $491,667

Operating Expenses:

Direct: Aircraft and Hull Insurance $365,710

Fuel and Oil $1,047,286

Flying Operations $315,567

Maintenance $711,545

Total Direct Expenses: $2,440,108

Total Indirect Expenses: $883,665

Total Operating Expenses: $3,323,773

Operating Loss ($2,832,106)

Profit Element (5.0% of Total Operating Expenses) $166,189

Annual Compensation Requirement: $2,998,295

 This Proposal is submitted with no upline scheduling restrctions
Great Lakes Aviation, Ltd.

Annual Compensation Requirements for Essential Air Service at

Alliance and Chadron, Nebraska to Denver (DEN)

Two Round Trips - B1900-19 seats - Historical schedules should be used as sample pattern of service

(at 98 percent completion)

Departures: 2,198

Block Hours: 1,588

Revenue Passenger Miles: 1,735,000

Operating Revenues:

Passenger: AIA 3,500 psgrs at $97.19 $340,165

CDR 5,000 psgrs at $104.92 $524,600

Other: (at 0.62% of passenger revenue) $5,362

Total Operating Revenues: $870,127

Operating Expenses:

Direct: Aircraft and Hull Insurance $365,710

Fuel and Oil $1,047,286

Flying Operations $315,567

Maintenance $711,545

Total Direct Expenses: $2,440,108

Total Indirect Expenses: $951,067

Total Operating Expenses: $3,391,175

Operating Loss ($2,521,048)

Profit Element (5.0% of Total Operating Expenses) $169,559

Annual Compensation Requirement: $2,690,607

 This Proposal is submitted with no upline scheduling restrctions