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—' • • •.jSPORWlOr i ULS . Departmen t o f : . --T'ru^fJOAt-n ; :C , 120 0 Ne w jerse y Avenue , S E Transportatio n ' ' " " Washington , D C 2059 0 Offic e O f th e Secretar

y .., , .,.. , , p A n.r - ofTransportatio n • ' i " ^ il - J O

Octobe r 18 , 201 1 Stev e Smith Executiv e Directo r Jackson-Madiso n Count y Airport Authority 30 8 Grad y Montgomer y Driv e Jackson , Termesse e 3830 1 Dea r Mr . Smith : I woul dlik e t o update yo u o n th e essentia l ai r servic e situatio n a

t Jackso n an dgiv e yo u a n opportunit y t o submi t

an y conmient s i

f yo u wish . L

i respons e t o Pacifi c Wings ' 90

- da y notic e o f

inten t t o terminat e service , th e Departmen t issue dOrde r

2011-8-27 , Augus t 27 , 2011 , t o solici t

proposal s fro mal l intereste dai r carrier s t o provid e EA S a t Jackson . Orde r

2011-8-2 7 state dtha t

Publi c La w 112-27 , signe dinto la

w o n Augus t

5 , 2011 , amende dth e definitio n o f "eligibl e place " fo

r th e purpos e of

receivin g EAS . See 4 9 U.S.C . § 41731 . Th e amendment state s tha t to b e eligible , acommunit y mus t b e locate dno t les s tha n 9 0 mile s fro

mth e neares t

mediumor

larg e hub airpor

t an dmus t hav e ha da

n averag e subsid

y per passenger

of les s tha n $1,00 0 durin g th e mos t

recent fisca l year , a s determine db

y th e Secretar

y o f Transportation . Sectio n 41731 , a s amended , als o grant s th e Secretar y th e authorit

y to issu e awaiver

o f th e 90-mil e criterio n i

f th e Secretar

y determine s tha t th e "geographi c characteristic s o f th e locatio n resul t

in undu e difficult

y in accessin g th e neares t mediumor

larg e hu b airport. " 4 9 U.S.C . § 41731(d) . Th e Department i s currentl y workin g on aNotic e of

Propose dRulemakin g regardin g th e new provision s under 4 9 U.S.C . § 41731 , a s amended , whic h i t plan s t o issu e in th e nea

r future . Als o i n th e Order , w e stated , "Althoug h th e Departmen t ofte n award s two-year

contract s for

subsidize dEA S at acommunity , proposal s shoul dreflec t an understandin g tha t

th e community' s EA S statu s may b e affecte db y th e recen t amendmen t

an dpendin g rulemaking, whic h ma y impac t th e term s o f

an y ne w contract. " In respons e t o tha t

Order , w e receive dproposal s fro mMulti-Aero , Inc . d/b/ aAi r Choic e On e (Ai r Choic e One) , an dSeaPort Airlines , Inc . (SeaPort) . Copie s o f eac h proposa l ma y b e accesse donlin e at http://www.regulations.go v b y enterin g DOT-OST-2000-785 7 mth e "Ente r Keywor do r

ID " section .- 2

Ai r Choic e On e propose dtw o options , eac h operatin g wit h 9-passenge r

Cessn aGran d Carava n aircraft . Optio n 1 i s thre e nonsto p roun dtrip s eac h weekda y an dweeken d (1 8 pe r week ) t o Lambert-St . Loui s Internationa l Airport for a n annualsubsid y o f $1,810,690 . Optio n 2 i s thre e nonsto p roun dtrip s eac h weekda y an dweeken d(1 8 pe r week ) t o Nashvill e Internationa l Airport for a n annua l subsid y o f

$1,741,701 . SeaPort propose s thre e options , al l usin g 9-passenge r Cessn aCarava n aircraft . Optio n 1 i s thre e nonsto p roun dtrip s eac h weekda y an dweeken d(1 8 pe r week ) t o Memphi s Internationa l Airport

(Memphis ) for

a n annua l subsid y o f

$947,81 8 (firs t

year ) an d $925,60 3 (secon dyear) . Optio n 2 i s tw o nonsto p roun dtrip s eac h weekda y an dweeken d (1 2 pe r week ) t o Nashvill e an don e nonsto p roun dtri p eac h weekda y an dweeken d( 6 pe r week ) t o Memphi s for

a n annua l subsid y o f

$1,149,70 3 (firs t

year ) an d$1,115,21 0 (secon dyear) . Optio n 3 i s tw o nonsto p roim dtrip s eac h weekda y an dweeken d(1 2 pe r week ) t o Memphi s an don e nonsto p roun dtri p eac h weekda y an dweeken d( 6 pe r week ) t o Nashvill e for

a n aimual subsid y o f

$1,034,16 4 (firs t

year ) an d$1,006,38 7 (secon d year) . Base do n existin g law an dth e propose drulemakin g discusse dabove , th e Departmen t i s prepare dt o selec t

Ai r Choic e On e o r

SeaPort t o serv e Jackso n for

aone-year

term . An y servic e that

coul dpossibl y b e subsidize dafte r on e year wil l determine donc e th e rulemakin g proces s ha s bee n completed . Pleas e not e tha t

th e averag e passenge r

fare s show n i n th e proposa l d o no t necessaril y reflec t th e averag e local fare Jackso n passenger s woul dactuall y pay , but , rather , reflec t a prorate dportio n o f

th e tota l ticke t

price , e.g. , th e Jackso n - Nashvill e portio n o f a Jackso n - Nashvill e - Washington , D.C . ticke t tha t th e subsidize dcarrie r

woul drealize . Also , th e fare show n i s ne t o f certai n charge s suc h a s Federa l transportatio n security fees , excis e o r ticke t taxes , an dPassenge r

Facilit y Charges . O f

course , carrier s hav e th e discretio n t o charg e fare s the y dee mappropriate , an dth e passenge r fare s presente di n thi s proposa l hav e bee n develope dfor subsid y rat e computatio n purpose s only . Yo u shoul dals o not e tha t th e schedule s tha t

th e carrie r

ha s submitte dar e illustrativ e only , an dtha t the y may mak e schedul e change s t o reflec t changin g conditions , e.g. , t o bette r mee t shiftin g coimectin g ban k time s a t th e hub . Th e Departmen t expect s subsidize dai r carrier s t o maintai n well-time dan dwell-space dflights i n orde r t o ensur e ful l compensation . W e as k tha t yo u submi t

an y comment s yo u ma y hav e a s soo n a s possible , but i n an y cas e n o late r tha n Novembe r

15 , 2011 . W e wil l carefull y conside r you r comment s befor e w e submi t arecommendatio n t o th e Assistan t Secretary for

adecision . Shoul dyo u hav e an y question s o r

nee dadditiona l tim e t o draf t you r comments , pleas e le t

u s know . Pleas e sen dyou r

comment s vi ae-mai l t o EAS@dot.go v o r b y fa x t o 202-366-7638 . I

f yo u hav e an y questions , pleas e fee l fre e t o contac t Kevi n Schlemme r

o f m y staf f a t kevin.schlemmer@dot.go v o r 202-366-3176 .A similar lette r ha s bee n sen t

t o th e Mayo r

o f Jackson . Sincerely ,

Denni s J . Dev^n y Chief , Essentia l Ai r

Servic e