From: Muldoon, Albert (OST)

To: "boonecountyairport@windstream.net" ; "boonejudge@windstream.net" ; "mayor@cityofharrison.com" ;

"ruthcarneymayor@aol.com" ; "GDownie@cityhs.net" ; "mayor@eldoradoar.org" ; "tcot@ipa.net" ; "Info@camden.ar.gov" (Info@camden.ar.gov)

Cc: Devany, Dennis (OST) (Dennis.DeVany@dot.gov) ; Tim Sieber (tim@seaportair.com) ; Shane Storz ; Daniel

Helland (daniel@boutiqueair.com) ; "MARK BELLAMY"

Subject: EAS at El Dorado/Camden, Harrison, and Hot Springs, AR - Request for Comments - Due June 19, 2013

Date: Monday, May 20, 2013 11:32:08 AM

Attachments: Air Choice One Proposal - AR EAS.pdf

Boutique Air - AR EAS.pdf

Osage Airlines - AR EAS.pdf

SeaPort Airlines - AR EAS.pdf

All,

I wanted to take this opportunity to update you on the Essential Air Service (EAS) situation

at El Dorado/Camden, Harrison, and Hot Springs, Arkansas, and to give you an opportunity

to submit comments on the record before we submit a recommendation to the Assistant

Secretary for Aviation and International Affairs.

The three communities are currently served by SeaPort Airlines, Inc. (SeaPort) for a

combined annual subsidy of $5,990,780. In anticipation of the end of SeaPort’s current

contract on October 31, 2013, we issued Order 2013-4-6 (April 12, 2013), soliciting

proposals from carriers interested in providing EAS at these communities for a new rate

term. In response to that Order, we received proposals from SeaPort (the incumbent), MultiAero Inc, d/b/a Air Choice One (Air Choice One), Boutique Air, and Osage Airlines, LLC

(Osage).

I have briefly summarized the proposals below. Full copies of the proposals are attached to

this email and are also available online at www.regulations.gov by searching for docket:

DOT-OST-1997-2935.

SeaPort proposes to provide service to all three communities with single-engine, ninepassenger Cessna Caravans. For El Dorado/Camden, SeaPort would provide 12 weekly

nonstop round trips to Dallas Love Field (DAL), nine weekly one-stop trips to Memphis

(MEM), and six nonstop trips from MEM to El Dorado/Camden.

Harrison would receive 12 weekly nonstop round trips to MEM and six weekly nonstop

round trips to Kansas City (MCI).

Finally, Hot Springs would receive nine weekly nonstop round trips to MEM and nine

weekly one-stop round trips to DAL. The proposal is submitted as an inseparable package

which would require a combined annual subsidy of $5,865,372 for a four-year term.

Air Choice One proposed three standalone options for Harrison as well one option for

inseparable service for El Dorado/Camden and Hot Springs. All service would be operated

with single-engine, nine-passenger Cessna Caravans. Air Choice One has offered each

service option for either a two or four-year term. Air Choice One’s proposed service patterns

are summarized in the table below:

Harrison

Round trips per Annualweek Subsidy Aircraft

Option 1 10-MEM & 8-STL $2,294,435 Caravan

Option 2 18-STL $2,235,910 Caravan

Option 3 18-MEM $2,092,092 Caravan

El Dorado & Hot Springs

Round trips per

week Annual

Subsidy Aircraft

Option 1 18-MEM (from

each community) $4,138,189 Caravan

Boutique Air proposed several service options in various combinations. They are

summarized in the table below. All service would be offered with single-engine, nine

passenger Pilatus PC-12 aircraft and are offered for a two-year term.

Option Round

trips per

week Routing Annual Subsidy

1 18 DFW-HOT-HRO-MEM $4,082,475

12 ELD-DFW $1,374,155

6 ELD-MEM

2 12 DFW-HOT-HRO-MEM $3,037,784

12 ELD-DFW $1,467,688

6 ELD-MEM

3 12 DFW-ELD-HRO-MEM $3,255,330

4 12 DFW-ELD-HOT-MEM $3,577,516

12 HRO-MEM

$1,460,655 6 HRO-DFW

4B 12 DFW-ELD-HOT-MEM $3,577,516

12 HRO-MEM $1,561,921

6 HRO-MCI

5 12 ELD-DFW $2,547,046

6 ELD-MEM

12 HRO-MEM $2,110,913

6 HRO-DFW

5B 18 ELD-DFW $1,980,104

Osage submitted a proposal with seven service options for various combinations of the

communities. Osage proposes to operate their service with a single-engine Cessna Stationair

8 (C-206). Osage states that its proposal is contingent upon the Department’s approval of its

application for Commuter Air Carrier Authority. To date, the Department has not yet

received such application from Osage. For this reason, I will not summarize their proposals

here; however, the full document is attached to this email.The schedules that the carriers have proposed are illustrative only, and they may make

schedule changes to better reflect changing conditions (e.g. to better meet shifting connecting

bank times at the hub). The Department expects carriers to maintain well-timed and wellspaced flights in order to ensure full compensation. Additionally, carriers have the discretion

to charge fares they deem appropriate which may vary from those listed in their proposals.

We request that you examine each proposal carefully and contact the carriers with any

questions you may have regarding their bids. Please submit any comments you may have as

soon as possible, but no later than June 19, 2013. We will carefully consider your comments

before we submit a recommendation to the Assistant Secretary for a decision.

Please submit your comments via email to EAS@dot.gov or by fax to (202) 366-7638. If you

have any questions, please feel free to contact A.J. Muldoon of my staff at

albert.muldoon@dot.gov or (202) 366-1058.

Regards,

Dennis DeVany

Chief, Essential Air Service Division

Office of Aviation Analysis