Schlemmen Kevin (OST) '^^frrMmiOr 

From: Schlemmer. Kevin (OST) .^'y^pR i^l iOJJ 

Sent: Thursday, January20, 2011 11:51 AM • ^'rti-iAllDNb 

To: gcampbell@flyshd.com; •kinglb@ci.staunton.va.us' 

Cc: Devany, Dennis (OST); 'Scott, Kevin'; Rosia, Megan; Shock ^ Da^i|fl;;^lganitTiill^ajinifer'; 

Hunt, Peter; Hunt, Brian; Colgan, Mike; Murray, Ben 

Subject: Solicitation of community comments 

I would like to update you on the essential air service situation at Staunton and give you an opportunity to submit any 

comments if you wish. As you know, by Order 2010-12-9, December 6, 2010, the Department solicited proposals from 

all Interested air carriers to provide service at Staunton, Virginia, for a new two-year term beginning May 1, 2011. At 

this stage, we would normally ask for your preferences for various carrier and service options. However, in response to 

that order, Colgan Air, Inc. (Colgan), 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 may have. Copies of Colgan's proposal 

may be accessed online through the Federal Docket Management System at: http://www.regulatiQns.gov/ by entering 

DOT-OST-2002-11378 in the "Enter Keyword or ID" field. 

Colgan proposes to continue its three-round-trip-a-day service pattern (18 per week) at Staunton for an annual subsidy 

of $2,180,461. The service would be operated as United Express with 34-seat Saab 340 aircraft. Some flights would 

operate in conjunction with Beckley, West Virginia, but they will operate nonstop from Staunton to Washington Dulles. 

We are currently reviewing Colgan's compensation requirement. 

Please note that the average passenger fares shown in the proposal do not necessarily reflect the average local fare 

Staunton passengers would actually pay, but, rather, reflect a prorated portion of the total ticket price, e.g., the 

Staunton - Washington D.C. portion of a Staunton - Washington, D.C. - San Francisco ticket that Colgan would realize. 

Also, the fare shown is net of certain charges such as Federal transportation security fees, excise or ticket taxes, and 

Passenger Facility Charges. Of course, carriers have the discretion to charge fares they deem appropriate, and the 

passenger fares presented in their proposals have been developed for subsidy rate computation purposes only. Based 

on the cost elements incorporated in the carrier's computation summaries, Colgan would have to realize passenger fares 

comparable to the averages shown in their proposals in order to achieve break-even or profitable operations without 

subsidy. 

You should also note that the schedules that the carrier has submitted are illustrative only, and that they may make 

schedule changes to reflect changing conditions, e.g., to better meet shifting connecting bank times 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 February 16, 

2011. We will carefully consider your comments before we submit a recommendation to the Assistant Secretary for a 

decision. Should you have any questions or need additional time to draft your comments, please let us know. 

Please send your comments by fax to 202-366-7638 or by email to both dennis.devanvg)dot.gov and 

kevin.schlemmer(®dot.fiov. If you have any questions, please feel free to contact Kevin Schlemmerof my staff at 202-

366-3176. 

Sincerely, 

Dennis J. DeVany 

Chief, Essential Air Service Division, X-53 

Office of Aviation Analysis