## Before the United States Department of Transportation 

# Washington, DC February 21, 2014

FORT DODGE, IOWA MASON CITY, IOWA ~ 1 : ; ~ ~.j ~'. .J Essential Air Service at: Docket OST -2001-10682 Docket OST -2001-10684 under49 U
. S.C
. 41731 et.seq.
This document contains the response of Great Lakes Aviation, Ltd
. to Order Requesting Proposals 2014-1-20
. The proposed service is being offered with local service marketed and priced utilizing the Great Lakes (ZK) reservations system which includes customer ticket purchasing capability on both the Great Lakes' web site and on numerous web booking engines
. Additionally, Great Lakes and Delta Airlines have formed a partnership to enable the sale of Great Lakes' passenger segments on the Delta website as well as, providing the passenger with through check-in and seamless baggage transfers
. The proposal offers service to our Minneapolis/St. Paul hub or as an alternative, Chicago O'Hare , utilizing Beech 19000 or EMB-120 aircraft for the same subsidy amounts
. The alternate Chicago O'Hare service would require support from each respective community to effect a hub change and is subject to the availability of gate facilities
. In addition, Great Lakes maintains interline ticketing and baggage agreements with the majority of the other carriers serving Minneapolis/St. Paul or Chicago O'Hare, including interline eticketing agreements with American Airlines, Delta Airlines, Frontier Airlines and United Airlines. All of which will offer the passenger maximum access to the domestic and international air transportation system. Great Lakes was recently forced to suspend service at Fort Dodge and Mason City due to the severe industry-wide pilot shortage and its relative acute impact on Great Lakes
. The proposed service to these communities assumes that we will receive the necessary final FAA approvals that allow our pilots to operate the Beech 19000 aircraft in a nine seat configuration
. We are in the process of recruiting and training pilots in an effort to replenish our staff of qualified pilots
. It would be expected that the re-installation of the additional 10 seats, allowing for utilization of all 19 seats, would occur as soon as pilot experience allows for the issuance of restricted ATP certificates
.The recently implemented regulatory requirements have dramatically accelerated a long anticipated pilot shortage , causing nationwide damage to small community air service
. The unintended consequences of the Congressionally mandated regulatory changes will require commitments to be made to address the long-term impact on the airline industry as a whole. Great Lakes' stands ready to participate in creative solutions to assist small communities in their efforts to remain in the National Air Transportation System. Questions and comments may be referred to: Michael Matthews Chief Financial Officer Great Lakes Airlines 1022 Airport Parkway Cheyenne, VVY 82001 (307) 432-7000Table of Contents: Proposal Subsidy Passengers Average Number Service Point(s) Hub(s) Served Round Trips Equipment Requirement Forecast Fare Departures Dept Rate

Fort Dodge, Iowa MSP orORD 3 1900-D $2,577,749 1 1,000 $97
. 17 1 ,840 $1,400
. 95 MSP orORD 2 EMB-120 1 ,227 $2 , 100.85 2 Mason City, Iowa MSPorORD 4 1900-D $2,676,869 12 ,500 $90.27 2,454 $1 ,090
.82 MSP orORD 2 EMB-120 1,227 $2,181
.64

# Great Lakes Aviation, Ltd. Annual Compensation Requirements for Essential Air Service at 

## Fort Dodge, Iowa to Minneapolis/St. Paul ( MSP ) or Chicago O'Hare ( ORO)

Three Roundtrips w/B1900D or Two Roundtrips wi EMB-120

98.0% completion factor Departures to be performed by Beech 1900 schedules: Departures to be performed by EMB-120 30 seat aircraft if option is preferred by community:
Operating Revenues:

Passenger: FOD 11,000 psgrs at $97.17 $1,068,870

Other: (at 0.62% of passenger revenue) Total Operating Revenues: Operating Expenses:

Direct: Aircraft and Hull Insurance

Fuel and Oil Flying Operations Maintenance Total Direct Expenses: Total Indirect Expenses: Total Operating Expenses: Operating Loss Profit Element (5.0% of Total Operating Expenses) Annual Compensation Requirement: No Upline Scheduling Restrictions $6,627

$365,710 $957,394 $438,662 $711,245 1 ,840 1 ,227

$1,075,497

$2 ,473,011 $1 ,006,271 $3,479,281 ($2 ,403,784 ) $173, 964 $2,577,749

# Great Lakes Aviation, Ltd. Annual Compensation Requirements for Essential Ai r Service at 

## Mason City, Iowa to Minneapolis/St. Paul ( MSP ) or Chicago O'Hare ( ORD ) Four Roundtrips w/B1900D or Two Roundtrips w/EMB-120

98.0% completion factor Departures to be performed by Beech 1900 schedules: 2,454 Departures to be performed by EMB- 120 30 seat aircraft if option is preferred by community: 1 ,227
Operating Revenues:

Passenger: MCW 12,500 psgrs at $90
.27 $1 , 128,375

Other: (at 0
.62% of passenger revenue) $6, 996 Total Operating Revenues: $1 , 135 ,371 Operating Expenses:

Direct: Aircraft and Hull Insurance

Fuel and Oil Flying Operations Maintenance $365 ,710 $1 ,029 ,799 $362 , 922 $754,022 Total Di rect Expenses: $2 ,512 ,452 Total Indi rect Expenses: $ 1 , 118,253 Total Operating Expenses: $3,630,705 Operati ng Loss Profit Element (5.0% of Total Operati ng Expenses) ($2 ,495 ,334 ) $181 ,535 Annual Compensation Requirement: $2,676,869 No Upline Scheduling Restrictions

## *** [FOD] FORT DODGE, IA 

## *** Sample Schedule

-------------------- D E fl ART LJR 

# E: S -------------------- -------------------- A R R I " A 1. S -------------------- FL T DPT ARR TO EQP FREQ FL T EQfl FREQ FROM DflT ARR 

## 7272 615 730 MSP BE1 123456 7273 BE1 12345 MSP 930 1040 7273 1050 1205 MSP BE1 123457 7277 BE1 Daily MSP 1130 1240 7277 1300 1415 MSP BE1 123457 7278 BE 1 12345 7 MSP 1840 1950

## *** 

# [MCW] MASON CITY, 

# IA *** 

# Sample Schedule



# --------------------

[) E: ~ A Ft T lJ Ft 

# E: S -------------------- -------------------- A Ft Ft I V A L S -------------------- 

# FLT OPT AFtFt TO 

# E:Q~ FFtE:Q FLT 

# E:Q~ FFtE:Q FFtOM [)~T 

# AFtFt 7282 533 618 

# MSP BE1 12345 7283 BE1 12345 

# MSP 855 940 7283 950 1035 

# MSP BE1 Daily 

# 7285 BE1 Daily 

# MSP 1445 1530 7285 1549 1625 

# MSP BE1 Daily 

# 7286 BE1 Daily 

# MSP 1745 1830 7286 1845 1930 

# MSP BE1 12345 7289 BE1 12345 

# MSP 2155 2240