### us.Departmentof Transportation OfficeoftheSecretary ofTransportation

July 8, 2010 David Sanctuary Airport Manager Chautauqua County Airport

- Jamestown 3163 Airport Dr. Jamestown, NY 14701 DearMr. Sanctuary: 1200 NewJersey Avenue, SE Washington, DC 20590

I would like to update you onthe essential air service (EAS) situation at Jamestown and give you an opportunity to submit any comments ifyou wish. In anticipation ofthe end of Gulfstream'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 Jamestown, for a new two-yearterm beginning October 1, 2010. In response to that order, we received proposals from two carriers: CharterAirTransport and the incumbent, Gulfstream International Airlines (Gulfstream). Copies ofthe proposals maybe accessed online through the Federal Docket Management System (FDMS) at: http://www.regulations.gov/by entering "DOT-OST-2003-14950" in the "Enter Keyword or ID" 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

- Cleveland routing, for an annual subsidy of$1,639,254. This assumes Oil CitylFranklin's continued eligibility intheEAS program, which the Departmentis reviewing. IfOil CitylFranklin is deemed no longer eligible to participate in the EAS program, Gulfstream's annual compensationrequirement for its service to Jamestown would be $1,662,715. Service would be operated as Continental Connection, utilizing Beech 1900D aircraft. We are also currentlyreviewing Gulfstream's compensationrequirement. CharterAirTransport proposes to operate 11 nonstop round trips per weekto Buffalo, with two options for the type ofaircraftutilized. If 19-seat 132 aircraft are used, the annual subsidy rate is $1,441,308. If30-seatEMB-120 aircraft are used, the annual subsidyrate is $1,796,925.

### - 2

- My purpose in writing to you at this time is to request any final comments you might have on the carriers' service and subsidy proposals before we submit a recommendation on the carrierselection issue to the Assistant Secretary for Aviation and Intemational Affairs. Please note that the average passenger fares shown in each proposal do not necessarily reflect the average local fare Jamestown would actually pay, but, rather, reflect a prorated portion ofthe total ticket price, e.g., the Jamestown

- Cleveland portion ofa Jamestown

- ClevelandSeattle/Tacomaticket that the subsidized carrier would realize. Also, the fare shown is net of certain charges such as Federal transportation security fees, excise or ticket taxes, and Passenger Facility Charges. Ofcourse, carriers have the discretion to charge fares they deem appropriate, and the passenger fares presented in theirproposals have been developed for subsidyrate computationpurposes only. You should also note that the schedules that the carriers have submitted are illustrative only, and that they may make schedule changes to reflect changing conditions, e.g., to better meet shifting connecting banktimes at the hub. The Department expects subsidized air carriers to maintain well-timed and well-spaced flights in order to ensure full compensation. We request that you review each proposal and service option and submit any comments you mayhave before we submit a recommendation to the Assistant Secretary. We ask that you submit any comments you mayhave as soon as possible, but in any caseno later than July 30, 2010. We will carefully consider your comments before we submit a recommendation to the Assistant Secretary for a decision. We appreciate that there are significant issues for you to consider, so ifyou have any questions or ifyou find that you need additional time to draft your comments, please let us know. Please send your comments to me at the following e-mail address: EAS@dot.gov orby fax to 202-366-7638. Ifyou have any questions, please feel free to contact Kevin Schlemmer ofmy staffat kevin.schlemmer@dot.gov or 202-366-3176. Similarletters have been sent to the civic officials ofthe otherthree EAS communities at issue here. Sincerely, 

# cD**Q/b~**

# n, ;9-<2

# /~ Dennis J.

# DeV~ Chief, Essential Air ServiceDivision, X-53 Office ofAviation Analysis