Or der: 20 11
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- 9 Served : April 7 , 20 11



### UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Issued b y the Department of Transportation on the 7 th of April , 20 11 Essential Air S ervice at ALLIANCE AND CHADRON, NEBRASKA under 49 U.S.C. 41731 et seq. Docket DOT - O ST - 2000 - 8322

ORDER RE - SELECTING CARRIER Summary By this order , the Department is re
- s electing Great L akes 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
- ye ar 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 th e rate term, the Department issued Order 20 11
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- 1 0 on January 14 , 20 11 , solicit ing 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 appropri ated funds.- 2
-

Proposal of Great Lakes Great Lakes, the incumb ent, was the onl y carrier to submit a proposal. Under its proposal, Great Lakes proposes to continue its two
- r ound
- trip
- a - day service pattern at Alliance and Chadron (12 total round trips per week for each community) f or 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 Key word or ID” field. Community Comments On February 18 , 20 11 , we requested co mmunity comment s regarding the carrier selection at Alliance and Chadron
. In a March 18 letter, the Airport Operations Manager for the Cit y 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 L akes to promote the airport and hope s 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 ye ars 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 arrangeme nts and multiple interline agreements will continue to provide the communities with seamless access to the national air transporation sy stem. We find that both the service and subsidy

levels are reasonable
. Therefore, we will reselect Great Lakes for an additional two
- ye ar 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 properl y 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 sub j ect 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 fitne ss 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).- 3
-

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 L akes 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 repre sentatives 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 c arrier 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 ., continue s to be fit, willing and able to operate as a commuter carrier and capable of providing reliable es sential air service at Alliance and Chadron , Nebraska ; 5 . Th is 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.govAppendix A


## AREA MAP

This map is provided by Sabre ® AirVision TM Profit Essentials and is being used with express permission of the copyright holder, Sabre Airline Solutions®.Appendix BAppendix 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 : 1 2 weekl y r ound trips from each community t o 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: $ 907 1 Weekly Ceilin g : $ 43,536 ($ 21,768 per communit y) 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 land ing 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 beyon d 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 De partment 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 su bsidy 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 w riting 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 obligat ion 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 w

riting to the carrier. Subsidy contracts are s ubject 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 w eek (per community) multiplied by $ 907 per flight
.