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## ·,4l-85 Swanson, Brian (OST) From: Swanson, Brian (OST) :,,/i Sent: Friday, January 15, 2010 12:01 PM To: 'htownsupv@ harrietstown .org'; 'asstairportmanager@harrietstown.org'; 'zurlom @co.clinton.ny.us'; 'mayor@cityofplattsburgh-ny.gov'; 'Kasprzak, Donald M.'; 'Seth Edelman'; Seth Rosan; 'Long, Thomas'··

. . .. Cc: Devany, Dennis (OST); 'mcolgan@pncl.com'; 'mikecolgan@colganair.com'; 'Andrew Bonney'; 'jg727@aol.com'; 'Scott, Kevin' Subject: Summary of 2nd Round of EAS proposals
- Comments on preferred proposals are due February 5
All: This is a third update onthe Essential Air Service (EAS) situation at Plattsburgh and SaranacLake/Lake Placid and sentto solicit yourfinal comments on your community'S preferred EAS proposal. 

### In an attemptto accedeto each community's wishes, the Department issued a request for a second round of proposals by Order 2009-12-24, onDecember 28, 2009, whilekeeping all the original EAS proposals onthe table for consideration. We specifically requested stand-alonePlattsburg proposals. As expected, we received several additionproposals for Plattsburgh butno new proposals for SaranacLake/Lake Placid. 

### In response to Order 2009-12-24, Cape Air, ColganAir and CharterAir Transport submitted additional options for consideration. Wehave directed each carrierto serve its additional proposals onyou. Copies ofthe proposals, additional information, and the community comments thathavebeen submitted to date may also be accessed online through theFederal DocketManagement System at: http://www.regulations.gov, by doing a simple search onby doing a search on Dockets DOT-OST-2003-14783 (Plattsburgh) orDOT-OST-2000-8025 (Saranac Lake/Lake Placid). For your convenience, I have attached each carrier's additional options, the Department's letter summarizingthe first-round ofservice options and soliciting comments, and IetBlue Airways' letter supporting Cape Air's proposal. The additional options proposedby each carrier are also briefly summarized below ColganAir, operating as a US Airways code-share partner, submitted a bidto provide EAS at Plattsburgh, utilizing 34-passenger Saab 340 aircraft. Plattsburgh wouldreceive 12 nonstop round trips each weekto Boston Logan. The annual subsidy requirement would be $2,117,101. Colgan Airhas also proposed to operate an additional roundtrip per weekday and on Sunday or 18 round-trips per week for a six-month trial period, to stimulate traffic and market its service. Because we would notbe subsidizing thatthird round trip, we could not require it, nor can we consider its promise as a decisional criterion. As mentioned above, CapeAir submittedtwo additional two-yearterm options, all utilizing 9-passenger seat Cessna402 aircraft, with service betweenPlattsburgh and BostonLogan. The two service options are summarized in the table below. IetBlue Airways' also submitted a letter supporting Cape Air's proposals and discussing its plans for seamless integration with CapeAir at Plattsburgh. 

### Level of service Annual Subsidy Requirement 

### 3daily round trips (yearround) $1,334,262 4 daily round trips (June

- September) 3 daily round trips (October

- May) $1,463,486
As inthe past, I would also ask you to notethat the aircrafttype proposed by Cape Air does not meet the 15-ormore-passenger-seat standard requiredby our governing statutes (49 U.S.c. § 41732(b)(3) and (b)(6)). 

### Ifthe

### communities indicate their willingness to waive their right to receive EAS with pressurized aircraft with 15 or

more passenger seats, we will considerthe wavierto apply only to the new termunder consideration at this time. (i.e., we would not assume that the communities waive theirrights in perpetuity.) Charter Air Transport revised the annual subsidy required for two ofits previous proposed service options at Plattsburgh, using 30-seat aircraft, as summarized below. Service Option # Level of service Weekly Round trips Ai rcraft Type (Passenger Seats) Hub Served Annual Subsidy Required
3 Nonstop 12 EmbraerEMB120ER

(30) New York (JFK)

## * $2,330,249

5 Nonstop 12 EmbraerEMB120ER

(30) Boston $1,867,706 

## * -any New York (JFK) service would be contingentupon the carrier's securing Operating Authorizations (slots) from the Federal Aviation Administration. Many ofthe arrival and departures times atJFK are over-subscribed, and therefore obtaining OperatingAuthorizations may require a significantlevel-of-effort andtime. Please also note again that the average passenger fares shown in each proposal do not necessarily reflect the average local fare passengers would actually pay, but, rather, reflect a proratedportion ofthe total ticket price (e.g., the Plattsburgh orSaranacLake/LakePlacid

- Bostonportion ofa Saranac LakelLakePlacid

- BostonWashingtonD.C. ticket) that the subsidized carrier 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, carriers have the discretion to chargefares they deem appropriate, and the passenger fares presented in their proposals havebeendeveloped for subsidy rate computationpurposes only. Based on the cost elements incorporated inthe carriers' computation summaries, the carriers would have to realize passengerfares comparable to the averages shown intheir proposals in order to achievebreak-even or profitable operations without subsidy. You should also note that the carriers' schedules may changeto reflect changing conditions (e.g., to better meet shifting connecting bank times at thehub). The Department does expect subsidized air carriers to maintain well-timed and well-spaced flights in orderto ensure full compensation. We ask that you submit your comments by February 5. Please send your comments by fax to 202-366-7638 orby email to both dennis.devany@dot.gov and brian.swanson@dot.gov. Ourrules require that you send your comments to all three applicants as well. If

### you have any questions, or need more time to reply, please feel free to contact Brian Swanson ofmy staffat 202-366-5392. As a final matter, we are fully awarethat Cape Air's current contract expires February 28. Letme assure you that that date is not critical. Ifthis case is notcompletedby then, we would establish a "bridge rate" for Cape Air, based on its proposals, effective March 1 until the case is fully resolved. There will be no hiatus in service. Sincerely,

Dennis J. 

### DeVany Chief, Essential Air Service Division, X-53

### Office ofAviation Analysis

CharterAir-2ndRou ColganAir-2ndRoun CapeAir-2ndRound. lstRound-Platlsbur JetBlueCapeAirSup nd.pdf d.pdf pdf gh_SaranacLa... portLtr.pdf

From: Swanson, Brian COST) Sent: Wednesday, January 13, 2010 4:52 PM To: 'htownsupv@harrietstown.org'; 'asstairportmanager@harrietstown.org'; 'zurlom@co.c1inton.ny.us'; 'mayor@cityofplattsburgh-ny.gov'; 'mcolgan@pncl.com'; 'mikecolgan@colganair.com'; 'dwolf@flycapeair.com'; 'Andrew Bonney'; 'jg727@aol.com'; 'Kasprzak, Donald M.'; 'Seth Edelman'; Reed, Phil Cc: Devany, Dennis COST) Subject: RE: Attached is an EAS order re-biding the PLB-SLK routes on a short time frame All: Just a reminder, any additional proposals are due today. As mentioned in the Order soliciting a second round of proposal or options, we will keep all existing proposals on the table. Regards, -Brian 65392

From: Devany, Dennis COST) Sent: Monday, December 28, 20093:14 PM To: 'htownsupv@harrietstown.org'; 'asstairportmanager@harrietstown.org'; 'zurlom@co.c1inton.ny.us'; 'mayor@cityofplattsburgh-ny.gov'; 'mcolgan@pncl.com'; 'mikecolgan@colganair.com'; 'dwolf@flycapeair.com'; 'Andrew Bonney'; 'jg727@aol.com' Cc: Swanson, Brian COST) Subject: Attached is an EAS order re-biding the PLB-SLK routes on a short time frame All, I probably do not have as extensive an e-mail list as Brian has, but he is off today. Could you plz forward to all who need to know. Thanx. Dennis 

### «File: Platt-Sarare-bid.pdf»

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