### u.s. Departmentof Transportation Officeofthe Secretary ofTransportation

July 8,2010 Robert W. Schaffer Airport Manager The Clearfield-Jefferson Counties Regional Airport Authority 377 Aviation Way Reynoldsville, PA 15851 DearMr. Schaffer: 1 200 NewJersey Avenue, SE Washington, DC 20590

I would like to update you on the essential air service (EAS) situation at DuBois and give you an opportunity to submit any comments ifyou wish. In anticipation ofthe end ofGulfstream'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 DuBois. Atthis stage, we would normally ask for your preferences for various carrier and service options. However, inresponse to that order, Gulfstream International Airlines, Inc. (Gulfstream), the incumbent, was the only carrier to submit a proposal. Nonetheless, we wantto give you an opportunityto submit any final comments for therecord that you mayhave. Copies ofGulfstream's proposal maybe accessed onlinethrough the Federal Docket Management System (FDMS) at: http://www.regulations.gov/by entering "DOT-OST2004-17617" inthe "EnterKeyword orID" field. Gulfstream proposes to continue its 24 round trips perweekto Cleveland Hopkins International Airport,,operating on a Cleveland

- DuBois

- Oil CitylFranklin

- Cleveland or a Cleveland

- Oil CitylFranklin

- DuBois

- Clevelandrouting, for an annual subsidy of$2,228,996. This assumes Oil CitylFranklin's continuedeligibility in the EAS program, which the Department is reviewing. IfOil CitylFranklin is deemed no longer eligible to participate inthe EAS program, Gulfstreamproposes 18 nonstop round trips per weekfrom DuBois to Cleveland, for an annual subsidy of$2,247,023. All service wouldbeoperated as Continental COlmection, utilizing Beech 1900D aircraft. We are alsocurrentlyreviewing Gulfstream's compensationrequirement. My purpose inwriting 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.- :2

-

on the carrier-selection issue to the Assistant Secretary for Aviation and International Affairs. Please note that the average passenger fares shown in each proposal do not necessarily reflect the average local fare DuBois passengers would actually pay, but, rather, reflect a prorated portion ofthe total ticket price, e.g., the DuBois

- Clevelandportion ofa DuBois

- Cleveland

- Seattle/Tacomaticket that the subsidized canier would realize. Also, the fare shown is net ofcertain charges such as Federal transportation security fees, excise or ticket taxes, and Passenger Facility Charges. Ofcourse, caniers have the discretion to charge fares they deem appropriate, and the passenger fares presented in theirproposals have been developed for subsidy rate computationpurposes only. Based on the cost elements incorporated in the canier's computation summaries, Gulfstream would have to realize passenger fares comparable to the averages shown in their proposals in order to achieve break-even or profitable operations without subsidy. You should also note that the schedules that the canierhas submitted are illustrative only, and that they may make schedule changes to reflect changing conditions, e.g., to better meet shifting connecting bank times at the hub. The Department expects subsidized air caniers to maintain well-timed and well-spaced flights in order to ensure full compensation. We ask that you submit any comments you may have as soon as possible, but in any case no laterthan July 30,2010. We will carefully consider your comments before we submit a recommendation to the Assistant Secretary for a decision. Should you have any questions orneed additional time to draft your comments, please let us know. Please send your comments via e-mail to EAS@dot.gov orby fax to 202-366-7638. If you have any questions, please feel free to contact Kevin Schlemmer ofmy staffat kevin.schlemmer@dot.gov or 202-366-3176. Similar letters have been sent to the civic officials ofthe other EAS communities at issuehere.
Sincerely,

# [)Q/W~;~.**[j£~** Dennis J.

# De~ny Chief, Essential Air Service Division, X-53 Office ofAviation Analysis