### - .:'" "'-r,

## l~N-

# 0

.. ;1,..:)

## I,,:: I 

## IF

r. 

## ,':"j~PO,gTAT!O'1
"

..~r(tj 

## OPERATlOj~.) Before the United States Department ofTransportation 1;/4J:JN -

## 3 p 

## 2:03



# Washington, DC June 2,2014

Essential Air Service at: FORT DODGE, IOWA MASON CITY, IOWA under 49 U.S.C. 41731 et.seq. Docket OST-2001-10682 Docket OST-2001-10684

This document contains Great Lakes Aviation, Ltd.'s response to Order Requesting Proposals 2014-4-22. Great Lakes Aviation, Ltd. is pleased to submit these proposals, whereby each proposal issubmitted on a stand alone basis, to provide essential airtransportation. atthese points in Iowa. The proposed service is being offered utilizing pressurized, twin-engine Beech 1900D aircraft flown bytwo pilots. 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 D~ltaAirlines have formed a partnership to enable the sale of Great Lakes' passenger segments on the Delta website aswell as, providing the passenger with through check-in and seamless baggage transfers. Effective February 6, 2014, Great Lakes travel segments purchased on Delta's website are eligible to receive 500 Delta Sky Miles. New FAA pilot qualification rules have created an industry-wide pilot shortage which has had an acute impact on Great Lakes. These new rules mandated that first officers obtain an Airline Transport Pilot certification ("ATP") priorto being qualified to perform crewmember duties in scheduled airline passenger service under FAR Part 121 regulatory requirements. A keyfactor to enable a pilotto receive an ATP certificate isthe accumulation of 1,500 flight hours. On March 18th ofthis year, Great Lakes received from the FAA new operations specifications allowing usto hire pilots under it's FAR Part 121 Certificate utilizing FAR Part 135 regulatory hiring requirements. This allows our new hire pilots to operate the Beech 1900D aircraft in a nine seat configuration and enable Great Lakes to restore pilot staffing levels while maintaining FAR Part 1'21hiring, training and maintenance standards.Great Lakes' "base case" proposals assume that we will be limited to nine available seats for

our Beechcraft 1900 aircraft. As an alternative, we have provided proposals that lower subsidy requirements assuming that the aircraft can be returned to a 19seat configuration. We are also proposing three round trip service options for Mason City in both a nine seat and 19seat configurations. Itis Great Lakes' belief that regulatory relief for small community airservice must be granted in the nearfuture. Excessive subsidy requirements will force communities to loose EAS service eligibility as available seats are being dramatically reduced due to arbitrary limitations on aircraft seating configurations. Great Lakes' stands ready to participate in creative solutions to assist small communities intheir efforts to remain inthe National AirTransportation System. Questions and comments may be referred to: Michael O. Matthews Chief Financial Officer Great Lakes Aviation, Ltd. 1022Airport Parkway Cheyenne, VVY 82001 (307) 432-7000

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

### Fort Dodge, Iowa to Minneapolis/St. Paul ( MSP ) Three Round Trips - B1900 (at 98 percent completion) 9 Seats Available per departure Departures: Block Hours: Revenue Passenger Miles: Available Seat Miles: 1,840 2,224 1,183,000 2,798,640 Operating Revenues:

Passenger: FOD-MSP 7,000 psgrs at $95.98 $671,860

Other: (at 0.62% of passenger revenue) $4,166 Total Operating Revenues: $676,026 Operating Expenses:

Direct: Aircraft and Hull Insurance

Fuel and Oil Flying Operations Maintenance $365,710 $960,127 $438,662 $711,245 Total Direct Expenses: Total Indirect Expenses: Total Operating Expenses: Operating Loss Profit Element (5.0% of Total Operating Expenses) Annual Compensation Requirement: This Proposal issubmitted with no uplinescheduling restrctions. $2,475,744 $930,527 $3,406,271 ($2,730,245) $170,314 $2,900,559

# Great Lakes Aviation, Ltd. Annual Compensation Requirementsfor EssentialAirServiceat 

### Mason City, Iowa to Minneapolis/St. Paul ( MSP )

FourRoundTrips- B1900 (at98 percentcompletion) 9 Seats Available per departure Departures: BlockHours: Revenue Passenger Miles: Available Seat Miles: 2,454 1,840 1,200,000 2,650,320 Operating Revenues:

Passenger: MCW-MSP 10,000 psgrsat $90.17 $901,700

Other: (at0.62%ofpassenger revenue) $5,591 Total Operating Revenues: $907,291 Operating Expenses:

Direct: Aircraft and Hull Insurance

Fueland Oil FlyingOperations Maintenance $365,710 $1,053,229 $362,922 $754,022 Total Direct Expenses: Total Indirect Expenses: Total Operating Expenses: Operating Loss Profit Element (5.0%ofTotal Operating Expenses) Annual Compensation Requirement: This Proposal is submitted with no upline scheduling restrctions $2,535,883 $1,172,967 $3,708,850 ($2,801,559) $185,443 $2,987,002

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

### Fort Dodge, Iowa to Minneapolis/St. Paul ( MSP ) Three Round Trips - B1900 (at 98 percent completion) 19Seat'Plus' Departures: Block Hours: Revenue Passenger Miles: Available Seat Miles: 1,840 2,224 2,704,000 5,908,240 Operating Revenues:

Passenger: FOD-MSP 16,000 psgrs at $89.94 $1,439,040

Other: (at 0.62% of passenger revenue)
.$8,922 Total Operating Revenues: $1,447,962 Operating Expenses:

Direct: Aircraft and Hull Insurance

Fuel and Oil Flying Operations Maintenance $365,710 $960,127 $438,662 $711,245 Total Direct Expenses: Total Indirec! Expenses: Total Operating Expenses: Operating Loss Profit Element (5.0% olTotal Operating Expenses) Annual Compensation Requirement: This Proposal is submitted with no upline scheduling restrctions. $2,475,744 $1,091,856 $3,567,600 ($2,119,638) $178,380 $2,298,018

# Great Lakes Aviation, Ltd~ Annual Compensation Requirementsfor EssentialAir Serviceat 

### Mason City, Iowa to Minneapolis/St. Paul ( MSP )

FourRoundTrips - B1900 (at98percentcompletion) 19 Seat 'Plus' Departures: BlockHours: Revenue Passenger Miles: Available SeatMiles: 2,454 1,840 2,400,000 5,595,120 Operating Revenues:

Passenger: MCW-MSP 20,000 psgrsat $79.72 $1,594,400

Other: (at0.62%ofpassenger revenue) $9,885 Total Operating Revenues: $1,604,285 Operating Expenses:

Direct: Aircraft and Hull Insurance

FuelandOil FlyingOperations Maintenance $365,710 $1,053,229 $362,922 $754,022 Total Direct Expenses: Total Indirect Expenses: Total Operating Expenses: Operating Loss Profit Element (5.0%ofTotal Operating Expenses) Annual Compensation Requirement: This Proposal is submitted with no upline scheduling restrctions $2,535,883 $1,349,471 $3,885,354 ($2,281,069) $194,268 $2,475,336

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

### Mason City, Iowa to Minneapolis/St. Paul ( MSP ) Three Round Trips - B1900 (at 98 percent completion) 9 Seats Available per departure Departures: Block Hours: Revenue Passenger Miles: Available Seat Miles: 1,840 1,380 840,000 1,987,200 Operating Revenues:

Passenger: MCW-MSP 7,000 psgrs at $91.97 $643,790

Other: (at 0.62% of passenger revenue) $3,991 Total Operating Revenues: $647,781 Operating Expenses:

Direct: Aircraft and Hull Insurance

Fuel and Oil Flying Operations Maintenance $365,710 $794,661 $272,191 $565,427 Total Direct Expenses: Total Indirect Expenses: Total Operating Expenses: Operating Loss Profit Element (5.0% of Total Operating Expenses) Annual Compensation Requirement: This Proposal issubmitted with nouplinescheduling restrctions $1,997,989 $933,188 $2,931,177 ($2,283,396) $146,559 $2,429,954

# Great lakes Aviation, ltd. Annual Compensation Requirementsfor EssentialAirService at 

### Mason City, Iowato Minneapolis/St. Paul ( MSP )

Three RoundTrips- B1900 (at98 percentcompletion) 19Seat 'Plus' Departures: BlockHours: Revenue Passenger Miles: Available SeatMiles: 1,840 1,380 1,740,000 4,195,200 Operating Revenues:

Passenger: MCW-MSP 14,500 psgrsat $88.92 $1,289,340

Other: (at0.62%ofpassenger revenue) $7,994 Total Operating Revenues: $1,297,334 Operating Expenses:

Direct: Aircraft and Hull Insurance

Fueland Oil FlyingOperations Maintenance $365,710 $794,661 $272,191 $565,427 Total Direct Expenses: Total Indirect Expenses: Total Operating Expenses: Operating Loss Profit Element (5.0%ofTotal Operating Expenses) Annual Compensation Requirement: This Proposal is submitted with no upline scheduling restrctions $1,997,989 $1,097,069 $3,095,058 ($1,797,724) $154,753 $1,962,477

### *** 

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

## Sample Schedule

---------.---------- 0 EPA RT U RES -------------------- -------------------- A R R IVA LS -------------------- FLT OPT ARR TO EQP FREQ FLT EQP FREQ FROM OPT ARR 2972 615 730 MSP BE1 123456 2973 BE1 12345 MSP 930 1040 2973 1050 1205 MSP BE1 123457 2977 1300 1415 MSP BE1 123457 2977 BE1 Daily MSP 1130 1240 2978 BE1 123457 MSP 1840 1950