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Swanson, Brian (OST) 

From: Swanson, Brian (OST) :,,/ i 

Sent: Friday, January 15, 2010 12:01 PM 

To: 'htownsupv@ harrietstown.org'; 'asstairportm anager@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 on the Essential Air Service (EAS) situation at Plattsburgh and Saranac Lake/Lake Placid 

and sent to solicit your final comments on your community'S preferred EAS proposal. 

In an attempt to accede to each community's wishes, the Department issued a request for a second round of 

proposals by Order 2009-12-24, on December 28, 2009, while keeping all the original EAS proposals on the 

table for consideration. We specifically requested stand-alone Plattsburg proposals. As expected, we received 

several addition proposals for Plattsburgh but no new proposals for Saranac Lake/Lake Placid. 

In response to Order 2009-12-24, Cape Air, Colgan Air and Charter Air Transport submitted additional options 

for consideration. We have directed each carrier to serve its additional proposals on you. Copies of the 

proposals, additional information, and the community comments that have been submitted to date may also be 

accessed online through the Federal Docket Management System at: http://www.regulations.gov, by doing a 

simple search on by doing a search on Dockets DOT-OST-2003-14783 (Plattsburgh) or DOT-OST-2000-8025 

(Saranac Lake/Lake Placid). For your convenience, I have attached each carrier's additional options, the 

Department's letter summarizing the first-round of service options and soliciting comments, and IetBlue 

Airways' letter supporting Cape Air's proposal. The additional options proposed by each carrier are also briefly 

summarized below 

Colgan Air, operating as a US Airways code-share partner, submitted a bid to provide EAS at Plattsburgh, 

utilizing 34-passenger Saab 340 aircraft. Plattsburgh would receive 12 nonstop round trips each week to Boston 

Logan. The annual subsidy requirement would be $2,117,10 1. Colgan Air has also proposed to operate an 

additional round trip 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 not be subsidizing that third round trip, we could not require it, nor 

can we consider its promise as a decisional criterion. 

As mentioned above, Cape Air submitted two additional two-year term options, all utilizing 9-passenger seat 

Cessna 402 aircraft, with service between Plattsburgh and Boston Logan. 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 Cape Air at Plattsburgh. 

Level of service Annual Subsidy Requirement 

3 daily round trips (year round) $1,334,262 

4 daily round trips (June - September) 

3 daily round trips (October - May) $1,463,486 

As in the past, I would also ask you to note that the aircraft type proposed by Cape Air does not meet the 15-ormore-passenger-seat standard required by our governing statutes (49 U.S.c. § 41732(b)(3) and (b)(6)). If the 
communities indicate their willingness to waive their right to receive EAS with pressurized aircraft with 15 or 

more passenger seats, we will consider the wavier to apply only to the new term under consideration at this 

time. (i.e., we would not assume that the communities waive their rights in perpetuity.) 

Charter Air Transport revised the annual subsidy required for two of its previous proposed service options at 

Plattsburgh, using 30-seat aircraft, as summarized below. 

Service 

Option 

# 

Level of service 

Weekly 

Round 

trips 

Aircraft Type 

(Passenger Seats) 

Hub 

Served 

Annual Subsidy 

Required 

3 Nonstop 12 

Embraer EMB120ER 

(30) 

New 

York 

(JFK)* 

$2,330,249 

5 Nonstop 12 

Embraer EMB120ER 

(30) 

Boston $1,867,706 

* - any New York (JFK) service would be contingent upon the carrier's securing Operating 

Authorizations (slots) from the Federal Aviation Administration. Many of the arrival and departures 

times at JFK are over-subscribed, and therefore obtaining Operating Authorizations may require a 

significant level-of-effort and time. 

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 prorated portion of the total ticket price 

(e.g., the Plattsburgh or Saranac Lake/Lake Placid - Boston portion of a Saranac LakelLake Placid - BostonWashington D.C. ticket) 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. Of course, 

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

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

incorporated in the carriers' computation summaries, the carriers 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 carriers' schedules may change to reflect changing conditions (e.g., to better meet 

shifting connecting bank times at the hub). The Department does expect subsidized air carriers to maintain 

well-timed and well-spaced flights in order to ensure full compensation. We ask that you submit your 

comments by February 5. Please send your comments by fax to 202-366-7638 or by email to both 

dennis.devany@dot.gov and brian.swanson@dot.gov. Our rules 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 of my staff at 202-366-5392. 

As a final matter, we are fully aware that Cape Air's current contract expires February 28. Let me assure you 

that that date is not critical. If this case is not completed by 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 of Aviation 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'; 'mikecolga n@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-Sara re-bid.pdf» 

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