TOBY DOUGHERTI', CPM, CITY MANAGER

PAUL BRISENO, ASSISTANT CITY MANAGER

P.O. BOX 490

1 SO 7 MAIN STR£ET

HAYS, KANSAS 67601-0490

m785/628-7320

FAX 785/628-7323

www.haysusa.com

December 9,2013

Kevin Adams

US Department of Transportation

1100 New Jersey Avenue, SE

Washington, DC 20590

RE: PASSENGER SERVICE AT THE HAYS REGIONAL AIRPORT

Dear Kevin:

CITY COMMISSION

KENT STEWARD, MAYOR

HENRY SCHWALl.ER, IV

EBER PHElPS

SHAUN MUSn.

RON MEll1CK

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Two years ago, the City of Hays recommended the DOT contract with Great lakes Airlines to

provide passenger service at the Hays Regional Airport, This recommendation was made

despite the fact that Great Lakes Airlines was more expensive than Sky West Airlines and Great

Lakes had a history of unreliability and poor customer service. The recommendation was made

because our main runway was to be reconstructed and the Sky West planes could not utilize the

crosswind runway. Great Lakes' performance was never optimal. In the pasi year, it has gotten

much worse.

Since receiving the EAS contract, Great Lakes' reliability has gone from bad to worse. I have

attached the last few months' enplanement reports. As you will see, GreatLakes has an ontime percentage in the 50's. When looking at the detailed sheet, you will note that most of the

incidents are cancellations, not late arrivals or departures. The impacts of this poor

performance are very damaging.

In short, passengers are quickly losing confidence in the Hays Regional Airport due to Great

Lakes' poor performance. Three years ago, the City of Hays applied for, and received a

marketing grant from the FAA. Using the grant, and City of Hays dollars, a comprehensive

marketing effort was targeted at passengers throughout the region. The marketing campaign

was very successful and, despite Great Lakes marginal performance, we were able to maintain

and in some instances increase passengers. However, the positive impacts of the marketing

campaign have been erased by Great Lakes' poor performance.

Great Lakes' performance has deteriorated to the point that passengers have lost confidence in

the Hays Regional Airport. Passengers are tired of cancelled flights, delayed flights, and

missed connections. Passengers understand weather delays and cancellations, but they have

little tolerance for these actions as a resuit of equipment issues, lack of crew, or even worse, for

no stated reason. Business travelers, who are the meat and potatoes of the Hays Regional

Airport's demographic, are tired of disrupted business trips. They no longer view the airport as

convenient. I have inciuded emalls from Fort Hays State University and Nex-Tech illustrating
this point. FHSU is the largest employer in the City of Hays, and Nex-Tech is one of the

largest. I have had similar conversations with the heads of other large companies in Hays.

The result is that passengers are seeking out other, more reliable airports. Many are driving

four or five hours to Denver or Kansas City, or three hours to Wichita. it will be difficult for us to

get these passengers back once they leave. It will be impossible with an unreliable carrier. As

more passengers leave, boardings will decrease. This means profits will decrease and the

carriers will require a larger subsidy. This will cost the DOT more per passenger. It will also

have lasting impacts on the Hays Regional Airport. Our goal and focus for the past four years

. has been to increase boardings at the Hays Regional Airport. The more viable the Hays

Regional Airport, the more positive economic impact to the region. In short, it is critical to the

regions' long-term success to be serviced by a viable airport with reliable service. As previously

mentioned, the main runway was recently reconstructed, a new fire station was completed, and

we are in the design phase of a terminal remodel and expansion project.

Other current and former EAS communities have made concerted efforts to increase the

reliability and viability of,their airports. The list includes: Manhattan KS, Garden City KS, Joplin

MO, Grand Island NE, laramie WY. Some of these cities were able to be profitable in the open

market and gave up their EAS subsidy. Hays is following in the footsteps of these cities as We

see a lot of potential for Increased boardings at the Hays Regional Airport. I cannot stress

enough the importance of a reliable carrier in achieving our long-term goals. It is also very clear

that Great lakes in not the carrier that will aid in achieving our goals.

When considering proposals to provide passenger service at the Hays Regional Airport, I ask

that you keep the I g-term viability of the Hays Regional Airport in mind.

Toby Doug erty

City Manager

CPM, ICMA-CM

Enclosures

c: Paul Briseno, Assistant City Manager

1.0. Creech, Director of Public Works

Mike Mooney, Sixel Consulting Group; Inc.