August 29,2014 

Via electronic mail 

Todd Homan 

Director, Office of Aviation Analysis 

Dennis DeVany 

Deputy Director, Office of Aviation Analysis 

Kevin Schlemmer 

EAS & Domestic Analysis Division Chief 

U.S. Department of Transportation 

1200 New Jersey Ave, SE 

Washington, D.C. 20590 

todd.homan(Zl{dot.gov 

dennis.devanv@dot.gov 

kevin.schlemmer@,dot.gov 

Re: Essential Air Service 

·Dear Messrs. Homan, DeVany and Schlemmer, 

I am writing to advise the Department of Silver Airways Corp.'s ("Silver Airways") service 

plans at Bradford ("BFD") and Franklin/Oil City ("FKL"), Pennsylvania, under the essential air 

service ("EAS") program. As you are aware, and with respect to both ofthese communities: (i) 

Silver Airways filed a notice of intent to terminate scheduled air service on February 14, 20 14; (ii) 

the Department has terminated EAS eligibility1 upon a finding that the community does not meet 

the amended statutory definition of an "eligible place" under 49 U.S.C. § 41731(a)(l)(Bf due to 

average service day enplanements for fiscal year 2013; and (iii) the community concerned has filed 

a petition with the Department for a waiver from the requirements of Section 4173l(a)(1)(B). 

Stricter Federal Aviation Administration ("FAA") first officer certification requirements 

as well as new flight and duty limitation and rest rules, which took effect between 2013 and 2014, 

have impeded the ability of Silver Airways to continue providing EAS at small and rural 

communities.3 These new requirements have increased nearly all airlines' pilot hiring needs 

1 Order 2014-6-6 (Jun. 24, 2014). 

2 49 U.S.C. § 41731(a)(1)(B) was amended by the Congress under the FAA Modernization and Reform Act of2012 

(Pub.L. 112-95) to change the definition of"eligible place" under the EAS program, thereby requiring communities 

(other than those in Alaska and Hawaii or those located more than 175 miles from the nearest medium or large hub 

airport) to maintain an average of 10 enplanements or more per service day, measured based on data from the most 

fiscal year, beginning after September 30, 2012. 

3 Among other things, the new rules: (i) mandate that airline first officers hold an aircraft type rating and airline 

transport pilot certification, requiring the accumulation of at least 1,500 hours of flight time as a pilot (previously 

-1-
contributing to an acute nationwide regional airline pilot shortage. Silver Airways, along with 

other regional carriers, has been disproportionately impacted by the increased hiring needs facing 

the industry, given that large mainline carriers fulfill their own hiring needs by recruiting pilots 

directly from regional carriers, who already have a high degree of training, skills and proficiency.4 

Indeed, and as the Government Accountability Office ("GAO") recently observed: 

As airlines have recently started hiring, nearly all of the regional airlines that GAO 

interviewed reported difficulties finding sufficient numbers of qualified entry-level first 

officers. However, mainline airlines, because they hire from the ranks of experienced 

pilots, have not reported similar concerns, although some mainline airlines expressed 

concerns that entry-level hiring problems could affect their regional airline partners' ability 

to provide service to some locations. 5 

It is against the backdrop of the new FAA-mandated requirements, and a pilot shortage 

which Silver Airways could not have reasonably foreseen when it submitted its EAS service 

proposals for BFD and FKL, that we have struggled to maintain reliable scheduled air service on 

economically viable terms to the communities. As a consequence of the pilot shortage, as well as 

other challenges Silver Airways has encountered which are unique to BFD and FKL, we cannot 

continue to serve these markets indefinitely and will be forced to stop flying there, as set forth 

below. 

I. Termination of Service at BFD and FKL 

Silver Airways presently serves BFD and FKL from Cleveland, Ohio ("CLE") under a 

United Express cooperative marketing arrangement. On February 1, 2014, shortly before Silver 

Airways filed its 90-day termination notice for BFD and FKL, United Airlines announced a 

curtailment of service at CLE with a 50% reduction in United's seat capacity in October 2014 

versus October 2013. The reduction of United's CLE service, on which Silver Airways' initial 

underlying BFD and FKL service proposals (and subsidy levels) were predicated, has resulted in 

a significant loss of online connecting options for passengers flying to and from BFD and FKL, 

translating into a considerable drop in passenger enplanements. As both communities are subject 

to termination of subsidies, further traffic declines are not in the best interests of the communities 

as they work through waiver petitions. 

Further compounding Silver Airways' challenges at BFD and FKL is the planned 

retirement of the 19-seat Beechcraft 1900D (used to provide service at BFD and FKL) from our 

first officers were required to accumulate 250 such hours); and (ii) establish more rigorous pilot duty and rest 

requirements, including an increase in minimum rest periods immediately prior to flight duty time and new 

weekly/monthly/annual limits on the amount oftime pilots may be assigned to any type of flight duty. 

4 Even before the new FAA requirements took effect, large mainline carriers were already confronting an 

unprecedented wave of projected retirements in connection with a substantial number of their pilots "aging out," 

i.e., hitting the FAA's mandatory retirement age of 65-which was increased from 60 in 2007. 

5 Aviation Workforce: Current and Future Availability of Airline Pilots, GA0-14-232 (Feb. 28, 2014). 

-2-
AIR 

fleet, as part of Silver Airways' planned migration to a fleet comprised entirely of the larger 34-

seat Saab340Bplus aircraft, which is more fuel efficient and has a higher maintenance dispatch 

reliability than the Beechcraft 1900D. This fleet migration-explained in our 90-day termination 

notice filed on February 14, 2014-has impacted our ability to continue flying at BFD and FKL, 

as it requires us to schedule Beechcraft 1900D pilots for training in a Saab340Bplus environment, 

a process that now is well underway. 

Finally, our marketing relationship with United Airlines will soon change, as we transition 

from a United Express carrier to an alliance-style codeshare partner. As a consequence, Silver 

Airways will no longer have access to United Airlines' reservations system for passenger ticketing 

and airport service functions, requiring us to install our own system at those airports where we 

previously provided service as a United Express carrier. This installation process will be complex 

and costly, and we do not have the ability to absorb such costs at airports we do not intend to 

continue serving, including BFD and FKL. 

Although our 90-day notice of termination was filed on February 14, 2014, the 

Department's final order terminating EAS eligibility for BFD and FKL was issued nearly four 

months later, with community petitions for a waiver from the requirements of 49 U.S.C. § 

41731(a)(1)(B) due one month after that final order, i.e., July 24,2014. By necessity, until such 

time as the Department completes its waiver review process, a replacement EAS carrier proceeding 

for BFD and FKL cannot be completed. As a consequence, Silver Airways finds itself in perpetual 

limbo, as it continues to operate at communities for which a termination notice was filed more than 

six months ago but for which no replacement carrier proceeding has been completed. Given the 

acute pilot shortage faced by Silver Airways, combined with the planned retirement of the aircraft 

providing this service, the reduction of CLE service and the change in our commercial relationship 

with United Airlines, Silver Airways is unable to continue serving BFD and FKL. 

Notwithstanding our pilot staffing difficulties and considerable traffic losses attributable 

to our operations at BFD and FKL, we have abided by the Department's orders extending our 

service obligations for additional 30-day periods. However, for the reasons set forth above, after 

September 30, 2014, we will no longer be providing scheduled air service at BFD and FKL. On 

or about September 5, 2014, we will cease selling tickets for BFD and FKL itineraries involving 

travel after September 30, 2014, to minimize disruptions to impacted passengers and ensure that 

we are able to adequately assist those previously ticketed for travel after September 30, 2014, 

either by providing a full refund without penalty or by helping them secure alternate transportation 

from nearby airports. 6 

6 Silver Airways respectfully notes that, unlike Great Lakes Airlines, which recently summarily discontinued air 

service at certain EAS points with little or no advance notice, we will have provided more than seven months' 

advance notice in connection with our discontinuation of scheduled air services at BFD and FKL, and we have 

abided by at least four (4) hold-in orders with respect to our services at these communities. See Orders 2014-3-12 

(Mar. 19, 2014), Order 2014-6-1 (Jun. 5, 2014), 2014-7-5 (Jul. 9, 2014) and 2014-8-7 (Aug. 12, 2014) 

-3-
II. Silver Airways' Continued Participation in the EAS Program 

Underscoring our strong commitment to the Department's EAS program, we were recently 

awarded EAS contracts to provide Saab340Bplus service at communities that can support the 

service and where we have the ability, staffing and infrastructure to provide such service, and. 

where we can do so in an economically viable manner. In fact, the termination of our services at 

BFD and FKL, the retirement of the Beechcraft 1900D aircraft from our fleet and the re-allocation 

of those pilots to our Saab340Bplus flying will allow us to maintain service at our other EAS 

communities. In addition, where possible, we have adjusted our intended termination date at other 

EAS communities where a replacement carrier has been selected. For example: 

• The Department recently re-selected Silver Airways, the incumbent EAS carrier at each of 

(1) Clarksburg/Fairmont, West Virginia ("CKB"), (2) DuBois, Pennsylvania ("DUJ"), (3) 

Johnstown, Pennsylvania ("JST"), (4) Greenbrier/White Sulphur Springs, West Virginia 

("LWB"), (5) Morgantown, West Virginia ("MOW"), (6) Parkersburg, West 

Virginia/Marietta, Ohio ("PKB") and (7) Staunton/Shenandoah Valley, Virginia ("SHD"), 

to continue providing EAS under new two year contracts at those communities. Where the 

new contracts involve a transition to a revised service pattern, Silver Airways is on track 

to complete that transition by the beginning of the renewal contract period. 

• For each of Laurel/Hattiesburg, Mississippi ("PIB") and Meridian, Mississippi ("MEl"), 

where Silver Airways is the incumbent carrier, the Department recently selected Express jet 

Airlines d/b/a American Eagle to provide replacement EAS under a new two year contract 

term beginning on November 1, 2014. We are prepared to continue our EAS operations at 

each of these communities until ExpressJet Airlines commences operations, which we 

understand are slated to begin on November 6, 2014. 

Although we regret that we are unable to sustain service at all airports where we currently 

provide EAS, Silver Airways has endeavored, under extraordinarily challenging circumstances, to 

continue service for as long as possible at BFD and FKL-communities for which EAS eligibility 

has been terminated but for which a replacement EAS carrier selection proceeding has been 

delayed. Furthermore, we believe that we have provided considerably more advance notice-to 

both the communities and the Department--of our plans than other EAS operators have in the 

recent past with respect to their service terminations.7 Finally, we believe that BFD and FKL will 

see further reductions in traffic, driven by the fact that they no longer have as many connecting 

opportunities over CLE and future service by Silver is uncertain. Additional reductions in traffic 

will move both communities further out of compliance with minimum usage regulations and will 

be detrimental to the establishment of replacement service with smaller capacity aircraft. 

7 For example, we understand that Great Lakes Airlines earlier this year discontinued service at a number of EAS 

communities with little or no advance notice, including, but not limited to, Devils Lake and Jamestown, North 

Dakota (Docket OST-1997-2785), Fort Dodge, Iowa (Docket OST-2001-10682), Mason City, Iowa (Docket OST200 1-1 0684), and Ironwood, Michigan (Docket OST -1996-1266). 

-4-
Silver Airways takes its EAS obligations seriously, and we wish to be fully transparent and 

forthright regarding our plans at BFD and FKL. Please do not hesitate to contact me at (954) 

302-5929 or via email, at jamie.kogutekrmsilverairways.com, should the Department wish to 

discuss this matter with us. 

Very truly yours, 

Jamie Kogutek 

Vice President, Network & Schedule Planning 

-5-