Order: 2011-4-9

 Served: April 7, 2011

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 7

th of April, 2011

Essential Air Service at

ALLIANCE AND CHADRON, NEBRASKA

under 49 U.S.C. 41731 et seq.

Docket DOT-OST-2000-8322

ORDER RE-SELECTING CARRIER

Summary

By this order, the Department is re-selecting Great Lakes Aviation, Ltd. (Great Lakes) to provide 

essential air service (EAS) at Alliance and Chadron, Nebraska, at a combined annual subsidy rate 

of $2,217,401, for the two-year period from June 1, 2011, through May 31, 2013.

1

Background

By Order 2009-4-19, April 27, 2009, the Department selected Great Lakes to provide 12 nonstop 

or one-stop round trips per week from Alliance and Chadron to Denver using 19-passenger 

Beech 1900D aircraft, from June 1, 2009, through May 31, 2011, for an annual subsidy rate of 

$1,955,217, for both communities.

In anticipation of the end of the rate term, the Department issued Order 2011-1-10 on January 14, 

2011, soliciting proposals to provide efficient EAS, with subsidy support if necessary, at 

Alliance and Chadron, for a new, two-year period.

 

1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated funds.
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Proposal of Great Lakes 

Great Lakes, the incumbent, was the only carrier to submit a proposal. Under its proposal, Great 

Lakes proposes to continue its two-round-trip-a-day service pattern at Alliance and Chadron (12 

total round trips per week for each community) for an annual subsidy of $2,217,401. Service 

would be operated with 19-seat Beech 1900D aircraft. Great Lakes offers connections with its 

code sharing partners (United Airlines and Frontier Airlines) beyond Denver and the carrier 

maintains interline ticket and baggage agreements with the majority of the other carriers serving 

Denver. Great Lakes’ complete proposal may be accessed online at http://www.regulations.gov/ 

by entering DOT-OST-2000-8322 in the “Enter Keyword or ID” field.

Community Comments

On February 18, 2011, we requested community comments regarding the carrier selection at 

Alliance and Chadron. In a March 18 letter, the Airport Operations Manager for the City of 

Alliance states that Alliance Municipal Airport and the City of Alliance appreciate Great Lakes’ 

commitment to Alliance, and the community is currently working with Great Lakes to promote 

the airport and hopes to see an increase in passenger usage. We did not receive any written 

correspondence from Chadron.

Decision

Great Lakes has served Alliance and Chadron for many years and continues to provide them with 

reliable essential air service. Although we did not receive formal comments from Chadron, 

neither community has voiced any complaints or concerns about Great Lakes’ service. Great 

Lakes’ code-share arrangements and multiple interline agreements will continue to provide the 

communities with seamless access to the national air transporation system. We find that both the 

service and subsidy levels are reasonable. Therefore, we will reselect Great Lakes for an 

additional two-year period, from June 1, 2011, through May 31, 2013, to provide each 

community with 12 nonstop or one-stop round trips a week to Denver with Beech 1900D

aircraft. 

We shall make this selection at Alliance and Chadron contingent upon the Department’s 

receiving properly executed certifications from Great Lakes 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).
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ACCORDINGLY,

1. We select Great Lakes Aviation, Ltd., to provide essential air service at Alliance and 

Chadron, Nebraska;

2. We set the final rate of compensation for Great Lakes Aviation, Ltd., for the provision of 

essential air service at Alliance and Chadron, Nebraska, 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 

commuter carrier and capable of providing reliable essential air service at Alliance and Chadron, 

Nebraska; 

5. This docket will remain open until further order of the Department; and

6. We will serve copies of this order on the Mayor and City Manager of Chadron, Nebraska, the 

Mayor of Alliance, Nebraska, and the Airport Operations Manager of Alliance Municipal 

Airport, and Great Lakes Aviation, Ltd.

By:

SUSAN L. KURLAND

Assistant Secretary

for Aviation and International Affairs

(SEAL)

An electronic version of this document is available at

http://www.regulations.gov
Appendix A

AREA MAP

This map is provided by Sabre® AirVisionTM Profit Essentials and is being used with express permission of the copyright holder, 

Sabre Airline Solutions®.
Appendix B
Appendix C

Great Lakes Aviation, Ltd.

Essential Air Service to be Provided at Alliance and Chadron, Nebraska

Effective Period: June 1, 2011, through May 31, 2013.

Scheduled Service: 12 weekly round trips from each community to Denver International Airport

Intermediate stops and upline service: Nonstop or one-stop service permitted, no upline 

restrictions

Aircraft: Beech 1900D, 19 seats

Rate per Eligible Flight: $9071

Weekly Ceiling: $43,536 ($21,768 per community)2

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 complete, 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 

carrier do not constitute a total or partial reduction or cessation of payment.

Funds are not currently available for performance under this order beyond April 8, 2011. The Department’s 

obligation for performance under this order beyond April 8, 2011, is subject to the availability of appropriated funds 

from which payment for services can be made. No legal liability on the part of the Department for any payment 

may arise for performance under this order beyond April 8, 2011, until funds are made available to the Department 

for performance. If funds are not made available for performance beyond April 8, 2011, 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 $2,217,401 divided by 2 communities, divided by 1,223 annual departures (24 weekly 

departures x 52 weeks x 98 percent completion).

2 24 arrivals and departures per week (per community) multiplied by $907 per flight.