UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 18th day of August, 2010

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,

for the two-year period from October 1, 2010 to September 30, 2012.

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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 annual subsidy rate 

of $1,735,814 for the two-year 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-year term. In response, 

we received proposals from Great Lakes and Sovereign Air, Inc. (Sovereign Air).

 

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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
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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 standalone 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 week) 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, WorlandLaramie-Denver, or Worland-Denver routing for $1,770,336.

Proposal of Sovereign 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 routing for an annual 

subsidy of $2,151,671. At Laramie, 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, Sovereign 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 required 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 Laramie, Laramie 

Regional Airport, the City of Worland and Worland Municipal Airport, all offering

lukewarm support for continued service by Great Lakes. Each letter expressed outright

dissatisfaction with Great Lakes’ decline in service reliability, describing it as inconsistent 

and unsatisfactory. Both communities stated that the lack of dependable service is an 

inconvenience for passengers and could potentially damage repeat business for the 

airports. Despite the statements of dissatisfaction, the communities recommended 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, by the communities’ displeasure with the current level of service provided by

Great Lakes. A key component of EAS carrier selection criteria is demonstrated reliability
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in providing scheduled service, and we expect Great Lakes to work with both communities

to address any concerns they have regarding its service reliability. 

 

Sovereign Air’s proposal did not receive any community support, and furthermore, the 

carrier currently 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 

properly 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 lobbying activities.

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 

subject to the Department’s continuing fitness 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 

negatively 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).

ACCORDINGLY,

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 Laramie and Worland, Wyoming, respectively, 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 years 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 any claim that is not supported under the terms of this order;

4. We find 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
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6. We will serve copies of this order on the City and Airport Managers of Laramie 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 available on the World Wide Web at

http://www.regulations.gov
Appendix A

AREA MAP

 
Appendix B

Page 1 of 2
Appendix B

Page 2 of 2
 Appendix 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: 19 weekly nonstop round trips between Laramie and Denver

Aircraft: 19-seat Beechcraft 1900 aircraft

Rate per Eligible Flight: $6101

Weekly Ceiling: $23,1802

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 receive 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 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 Department unilaterally, either partially or completely, 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 payments 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 writing 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 writing 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 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 weekly departures x 52 weeks 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: 12 weekly nonstop round trips over a Worland-Cheyenne-Denver, WorlandLaramie-Denver, or Worland-Denver routing

Aircraft: 19-seat Beechcraft 1900 aircraft

Rate per Eligible Flight: $1,4483

Weekly Ceiling: $34,7524

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 receive 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 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 Department unilaterally, either partially or completely, 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 payments 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 writing 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 writing 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 days of the last day of service provided under this order.

 

3 Annual compensation of $1,770,336 divided by 1,223 annual departures (24 weekly departures x 52 weeks x 98 

percent completion).

4

24 arrivals and departures per week multiplied by $1,448 per flight.