- •• 1200 New Jersey Avenue, SE 

US Department of Washington, DC 20590 

Transportation 

Office of the Secretary ' 0' ! 

of Transportation 

The Honorable Cheri Barry April 16, 2010 

Mayor, City of Meridian 

PO Box 1430 

Meridian, MS 39302 

Dear Mayor Smith: 

As you know, Atlantic Southeast Airlines, Inc., d/b/a Delta Connection (ASA) provides 

subsidized air service under the essential air service (EAS) program at Meridian, Mississippi. By 

Order 20010-3-9, the Department requested "best and final" proposals to serve Meridian, and 

ASA was the only carrier to apply. The Department's current contract with ASA calls for an 

annual subsidy of $686,489 to provide Meridian with thirteen nonstop round trips per week to 

Atlanta with 50-seat CRJ aircraft, and expires June 30. 

My purpose in writing is to inform you of the results of the carrier's service and subsidy proposal 

before we submit a recommendation on the carrier-selection issue to the Assistant Secretary for 

Aviation and International Affairs for decision. Since there are no other options before the 

Department at this time, you need not respond to this letter. However, we wanted to give you the 

opportunity to submit any comments if you wish. Copies of the carrier's full proposal may be 

accessed online through the Department's Dockets Management System at 

http://www.regulations.gov/ by entering "DOT-OST 2008-0112" in the "enter Keyord or ID" 

field, so we will only summarize it here. ASA proposes to provide the same level of service as it 

currently provides and requests $678,936 annual subsidy — slightly less than it currently 

receives. The rate would be effective from July 1, 2010, through June 30, 2012. 

Please note that the average passenger fares shown in the carrier's proposal do not necessarily 

reflect the average local fares passengers would pay, but, rather, it reflects the prorated portion of 

the total ticket price, e.g., the Meridian - Atlanta portion of a Meridian - Atlanta - Minneapolis 

ticket that the 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. Of course, 

carriers have the discretion to charge fares they deem appropriate, and the passenger fares 

presented have been developed for subsidy rate computation purposes only. Based on the cost 

elements incorporated in the carrier's computation summaries, a carrier would have to realize 

passenger fares comparable to the averages shown in its proposal in order to achieve break-even 

or profitable operations even with subsidy. 

You should also note that the schedule that ASA has submitted and that is shown in the docket is 

illustrative only, and ASA may make schedule changes to reflect changing conditions, e.g., to 

belter 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 know this matter is important to you and,we will act as quickly as possible upon receipt of your 

letter. In order to .expedite the case, please submit your comments by email to EAS@dot.gov by 

April 30. If you have any questions or do not wish to submit formal comments, please contact 

Kevin Adams at (202) 366-1047. 

Sincerely, 

Dennis J. DeVany ^"'^ 

Chief, Essential Air Service Division 

Office of Aviation Analysis 

cc: Airport Manager, ASA