### UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Issued b y the Department of Transportation on the 18 th day

of August, 20 10 Essential Air Service at LARAMIE, WYOMING WORLAND, WYOMING Docket DOT - OST - 1997 - 2958 Docket DOT - OST - 1997 - 2981 under 49 U.S.C. 41731 et seq.



### ORDER SELECTING CARRIER Summary By this order, the Department is selecting Great Lakes Aviation, Ltd. , operating as both a United Airlines and Frontier Airlines code share partner (Great Lakes) , to provide essential air service (EAS) at Laramie and Worland , for a combined annual subsidy of $2,951,908 , f or the two - ye ar period from October 1, 2010 to September 30 , 201 2 . 1 Background By Order 2008 - 7 - 3 , the Department selected Great Lakes to provide three nonstop round trips between Laramie and Denver each weekday and four over each weekend, for an annual subsidy

rate of $1,215,603 , and two one - stop (through Laramie or Cheyenne) round trips between Worland and Denver each weekday and weekend for an a nnual subsidy

rate of $1,735,814 for the two - ye ar period from October 1, 2008, through September 30, 2010. As the end of the contract was approaching, we issued Order 2010 - 5 - 14 , May 12 , 2010 , requesting proposals to serve Laramie and Worland for a new, two - ye ar term. Inresponse, we received propos a ls from Great Lakes and Sovereign Air , In c. (Sovereign Air) .

1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated funds. Order: 2010 - 8 - 10 Served: August 18, 2010- 2 -

Each carrier’s complete proposal may be accessed online at http://www.regulations.gov/ by entering in the search block DOT - OST - 1997 - 2958 for Laramie and DOT - OST - 1997 - 2981 for Worland . Proposal of Great Lakes Great Lakes proposed one service option for each community to be considered as stand alone bids, both using 19 - seat Beechcraft 1900 aircraft. The service to Laramie would be three nonstop round trips each weekday and four round trips each weekend (19 a we ek) to Denver for an annual subsidy of $1,181,572. The service to Worland would be two round trips each weekday

and weekend (12 a week) over a Worland - Cheyenne - Denver, Worland Laramie - Denver, or Worland - Denver routing for $ 1,770,336. Proposal of Sovereig n Air At Worland, Sovereign Air would provide three round trips Monday - Friday , and four weekend round trips (19 a week) over a Worland - Laramie - Denver ro uting for an annual subsidy of $ 2,151,671. At L aramie, Sovereign Air would provide the 19 round trips a week described above, plus 16 additional nonstop round trips a week for a total of 5 daily nonstop round trips (35 a week) for an annual subsidy of $2,361,671. Under its Option 1, all service would be with 9 - seat King Air aircraft. Under its Option 2, S overeign Air would use a 19 - seat Beechcraft 1900 on the Laramie flights that do not service Worland and a 9 - seat King Air aircraft on all other flights. We note that the 9 - seat King Air aircraft does not meet the 15 - or - more - passenger - seat standard require d by our governing statues (49 U.S. C. § 41732(b)(3) and (b)(6)). Community Comments On June 22, 2010, we requested community comments regarding the carrier selection at Laramie and Worland. We received letters on behalf of the City of Larami e, Laramie R egional Airport, the City of Worland and W orland Muni cipal Airport, all offering lukewarm support for continued service b y Great Lakes. E ach letter expressed outright dissatisfaction with Great L akes’ decline in service reliability, describing it as inconsistent and unsatisfac tory . Both communities stated that the lack of dependable serv ice is an inconvenience for passengers and could potentially damage repeat business for the airports. Despite the statements of dissatisfaction , the communities reco mmended Great Lakes to be selected to serve the communities for another term. Decision After carefully

reviewing each carrier’s proposal and taking into account community feedback, we have decided to select Great Lakes ’ proposal at Laramie providing three nonstop round trips each weekday and four each weekend (19 a week) for an annual subsidy of $1,181,572, over a Laramie - Denver routing, and at Worland providing two round trips each weekday and weekend (12 a week) over a Worland - Cheyenne - Denver, Worland - Laramie - Denver, or Worland - Denver routing for $1,770,336 . We are concerned , however, b y the communities’ displeasure with the current level of service provided by Great Lakes. A key

component of EAS carrier selection cri teria is demonstrated reliability- 3 -

in providing scheduled service , and we expect Great Lakes to work with both communities to address an y concerns they have regarding its service reliability . Sover eign Air’s proposal did not receive any community

support, and furthermore, the carrier currentl y does not have the requisite operating authority from either the FAA or the Department of Transportation ’s Economic Fitness Division to operate its proposed service. We shall make this selection of Great Lakes contingent upon the Department’s receiving properl y executed certifications from the carrier that it is in compliance with the Department’s regulations regarding drug - free workplaces and nondiscrimination, as well as the regulations concerning lobb yi ng ac tivities. Carrier Fitness 49 U.S.C. 41737(b) requires that we find an air carrier fit, willing, and able to provide reliable service before we may subsidize it to provide essential air service . Great Lakes is subj ect to the Department’s continuing fitnes s requirements, and no information has come to our attention that would cause us to question the carrier's fitness at this time. We have contacted the Federal Aviation Administration, and it has raised no concerns that would negativel y affect our fitness finding. We therefore conclude that the carrier remains fit to conduct the operations proposed here. This order is issued under authority delegated in 49 CFR 1.56a(f). AC CORDINGLY, 1. We select Great Lakes Aviation Ltd . , to provide essential air service at Laramie and Worland, Wyoming ; 2. We set the final rate of compensation for $ 1,181,572 and $1,770,336 for the provision of essential air service at La ramie and Worland, Wyoming , respectivel y, as described in Appendix C; 3. We direct Great Lakes Aviation Ltd . , to retain all books, records, and other source and summary documentation to support claims for payment, and to preserve and maintain such documentation in a manner that readily permits its audit and examination by representatives of the Department. Such documentation shall be retained for seven ye ars or until the Department indicates that the records may be destroyed, whichever comes first. Copies of flight logs for aircraft sold or disposed of must be retained. The carrier may forfeit its compensation for an y claim that is not supported under the terms of this order; 4. We f i nd that Great Lakes Aviation, Ltd . , continues to be fit, willing and able to operate as a certificated carrier and capable of providing reliable essential air service at Laramie and Worland, Wyoming ; 5 . Dockets DOT - OST - 2002 - 11446 and DOT - OST - 2002 - 11451 will remain open pending further Department action ; and- 4 -

6. We will serve cop ies of this order on the City and Airport Manager s of Laram ie and Worland , Great Lakes Aviation, Ltd. , and Sovereign Air. By :

SUSAN L. KURLAND Assistant Secretary for Aviation and International Affairs (SEAL) An electronic version of this document is ava ilable on the World W ide Web at http://www.regulations.govAppendix A 

## AREA MAPAppendix B Page 1 of 2Appendix B Page 2 of 2Appendix C Page 1 or 2 Great Lakes Aviation, Ltd. Essential Air Service to be Provided at Laramie, Wyoming Effective Period : October 1 , 2010 through September 30 , 2012 Scheduled Service : 1 9 weekl y nonstop round trips between Laramie and Denver Aircraft : 19 - seat Beechcraft 1900 aircraft Rate per Eligible Flight: $ 610 1 Weekly Ceiling : $ 23,180 2 Note: The carrier understands that it may forfeit its compensation for any flights that it does not operate in conformance with the terms and stipulations of the rate order, including the service plans outlined in the order and any other significant elements of the required service, without prior approval. The carrier understands that an aircraft take - off and land ing at its scheduled destination constitutes a completed flight; absent an explanation supporting subsidy eligibility for a flight that has not been completed, such as certain weather cancellations, only completed flights are considered eligible for subsidy. In addition, if the carrier does not schedule or operate its flights in full conformance with the order for a significant period, it may jeopardize its entire subsidy claim for the period in question. If the carrier contemplates any such changes beyon d the scope of the order during the applicable period of these rates, it must first notify the Office of Aviation Analysis in writing and receive written approval from the Department to be ensured of full compensation. Should circumstances warrant, the De partment may locate and select a replacement carrier to provide service on these routes. The carrier must complete all flights that can be safely operated; flights that overfly points for lack of traffic will not be compensated. In determining whether su bsidy payment for a deviating flight should be adjusted or disallowed, the Department will consider the extent to which the goals of the program are met and the extent of access to the national air transportation system provided to the community. If the D epartment unilaterally, either partially or complete ly , terminates or reduces payments for service or changes service requirements at a specific location provided for under this order, then, at the end of the period for which the Department does make payme nts in the stipulated amounts or at the stipulated service levels, the carrier may cease to provide service to that specific location without regard to any requirement for notice of such cessation. Those adjustments in the levels of subsidy and/or service that are mutually agreed to in w riting by the Department and the carrier do not constitute a total or partial reduction or cessation of payment. Funds are not currently available for performance under this order beyond September 30, 2010 . The Department ’s obligation for performance under this order beyond September 30, 2010 , is subject to the availability of appropriated funds from which payment for services can be made. No legal liability on the part of the Government for any payment may arise for perf ormance under this order beyond September 30, 2010 , until funds are made available to the Department for performance. If funds are not made available for performance beyond September 30, 2010 , the Department will provide notice in w riting to the carrier. Subsidy contracts are subject to, and incorporate by reference, relevant statutes and Department regulations, as they may be amended from time to time. However, any such statutes, regulations, or amendments thereto shall not operate to controvert the fo regoing paragraph. All claims for payment must be submitted within 60 days of the last day of service provided under this order.

1 Annual compensation of $1,181,572 divided by 1,937 annual departures (38 w eekly departures x 52 w eeks x 98 percent completion) . 2 38 arrivals and departures per week multiplied by $610 per flight .Appendix C Page 2 of 2 Great Lakes Aviation, Ltd. Essential Air Service to be Provided at Worland, Wyoming Effective Period : October 1, 2010 through September 30, 2012 Scheduled Service : 1 2 weekl y nonstop round trips over a Worland - Cheyenne - Denver, Worland Laramie - Denver, or Worland - Denver routing Aircraft : 19 - seat Beechcraft 1900 aircraft Rate per Eligible Flight: $ 1,448 3 Weekly Ceiling : $ 34,7 52 4 Note: The carrier understands that it may forfeit its compensation for any flights that it does not operate in conformance with the terms and stipulations of the rate order, including the service plans outlined in the order and any other significant elements of the required service, without prior approval. The carrier understands that an aircraft take - off and landing at its scheduled destination constitutes a completed flight; absent an explanation supporting subsidy eligibility for a flight that has not been completed, such as certain weather cancellations, only completed flights are considered eligible for subsidy. In addition, if the carrier does not schedule or operate its flights in full conformance with the order for a significant period, it may jeopardize its entire subsidy claim for the period in question. If the carrier contemplates any such changes beyond the scope of the order during the applicable period of these rates, it must first notify the Office of Aviation Analysis in writing and r eceive written approval from the Department to be ensured of full compensation. Should circumstances warrant, the Department may locate and select a replacement carrier to provide service on these routes. The carrier must complete all flights that can be safely operated; flights that overfly points for lack of traffic will not be compensated. In determining whether subsidy payment for a deviating flight should be adjusted or disallow ed, the Department will consider the extent to which the goals of the pr ogram are met and the extent of access to the national air transportation system provided to the community. If the Department unilaterally, either partially or complete ly , terminates or reduces payments for service or changes service requirements at a spe cific location provided for under this order, then, at the end of the period for which the Department does make payments in the stipulated amounts or at the stipulated service levels, the carrier may cease to provide service to that specific location witho ut regard to any requirement for notice of such cessation. Those adjustments in the levels of subsidy and/or service that are mutually agreed to in w riting by the Department and the carrier do not constitute a total or partial reduction or cessation of payment. Funds are not currently available for performance under this order beyond September 30, 2010 . The Department’s obligation for performance under this order beyond September 30, 2010 , is subject to the availability of appropriated funds from which payment for services can be made. No legal liability on the part of the Government for any payment may arise for performance under this order beyond September 30, 2010 , until funds are made available to the Department for performance. If funds are not made available for performance beyond September 30, 2010 , the Department will provide notice in w riting to the carrier. Subsidy contracts are subject to, and incorporate by reference, relevant statutes and Department regulations, as they may be amended from time to time. However, any such statutes, regulations, or amendments thereto shall not operate to controvert the foregoing paragraph. All claims for payment must be submitted within 60 d ay s of the last day of service provided under this order.

3 Annual compensation of $1,770,336 divided by 1,223 annual departures (24 w eekly departures x 52 w eeks x 98 percent completion) . 4 24 arrivals and departures per w eek multiplied by $1,448 per f light .