## u.s.Departmentof Transportation OffiCe ofthe Secretary ofTransportation



### July 8,2010 The Honorable TomRiel Mayor ofthe City ofBradford 24 Kennedy St. Bradford, PA 16701
DearMayorRiel: ,**":-,~;-:--:,-:--!,**...... , I "!I
.. ,,..... '. 1200 New Jersey Avenue, SE Washington, DC 20590



### I would like to update you on the essential air service (EAS) situation at Bradford and give you an opportunityto submit any comments ifyou wish. In anticipation ofthe end ofGulfstream's current contract on September 30,2010,the Department issued Order 2010-5-22, May 19, 2010, to solicit proposals from all interested air carriers to provide EAS at Bradford. Atthis stage, we would normally ask for your preferences for various carrier and service options. However, inresponse to that order, Gulfstream International Airlines, Inc. (Gulfstream), the incumbent, was the only carrier to submit a proposal. Nonetheless, we want to give you an opportunity to submit any final comments for the record that you mayhave. Copies ofGulfstream's proposal may be accessed online through the Federal Docket Management System (FDMS) at: http://www.regulations.gov/by entering "DOT-OST2003-14528" in the "Enter Keyword or ID" field. Gulfstream proposes to continue its 18 round trips per week to ClevelandHopkins International Airport, operating on a Cleveland

- Jamestown

- Bradford

- Cleveland or a Cleveland

- Bradford

- Jamestown

- Cleveland routing, for an annual subsidy of $1,087,306. This assumes Oil CitylFranklin's continued eligibility in the EAS program, which the Department is reviewing. IfOil CitylFranklin is deemed no longer eligible to participate in the EAS program, Gulfstream's annual compensationrequirement for its service to Jamestown wouldbe $1,116,213. Service would be operated as Continental Connection, utilizing Beech 1900D aircraft. We are also currentlyreviewing Gulfstream's compensationrequirement. Mypurpose in writing to you at this time is to request any final comments you might have on the carriers' service and subsidy proposals before we submit a recommendation- 2 -

011 the carrier-selection issue to the Assistant Secretary for Aviation and International Affairs. Please note that the average passengerfares shown in eachproposal do not necessarily reflect the average local fare Bradfordpassengers would actually pay, but, rather, reflect a proratedportion ofthe total ticket price, e.g., the Bradford

- Cleveland portion ofa Bradford

- Cleveland

- Seattle/Tacomaticket that the subsidized carrier would realize. Also, the fare shown is net ofcertain charges such as Federal transportation security fees, excise or ticket taxes, and PassengerFacility Charges. Ofcourse, carriers have the discretion to charge fares they deem appropriate, and the passengerfares presented in theirproposals have been developed for subsidyrate computationpurposes only. Based on the cost elements incorporated in the carrier's computation summaries, Gulfstream would have to realize passengerfares comparable to the averages shown in their proposals in order to achieve break-even orprofitable operations without subsidy. You should also note that the schedules that the carrierhas submitted are illustrative only, and that they may make schedule changes to reflect changing conditions, e.g., to better meet shifting connectingbanktimes at the hub. The Department expects subsidized air carriers to maintain well-timed and well-spaced flights in order to ensure full compensation. We ask that you submit any comments you may have as soon as possible, but in any case no later than July 30,2010. We will carefully consider your comments before we submit a recommendation to the Assistant Secretaryfor a decision. Should you have any questions or need additional time to draft your comments, please let us know. Please send your comments via e-mail to EAS@dot.gov orby fax to 202-366-7638. If youhave any questions, please feel free to contact Kevin Schlemmerofmy staffat kevin.schlemmer@dot.gov or 202-366-3176. Similar letters have been sent to the civic officials ofthe other EAS communities at issue here.
Sincerely, 

# {J**~~~** Ii

# fJ.<- 

# 110 Dennis J. De

# vii y Chief, Essential Air Service Division, X-53 Office ofAviation Analysis