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Cc: Subject: Date: Attachments:

All: Muldoon, Albert (OST) "mayor office@dtyofcarlsbadnm.com"; "jrtully@dtyofcarlsbadnm.com"; "airoort@dtyofcarlsbadnm com"; "steve summers@state om us"; "sechandler@dtyofcarlsbadnm com" '· .· Devany Dennis COSD CDennis.DeVany@dot.gov): "Greg Kahlstorf'; "Shawn Simpson"; Bob Karns

.. CBob@Sovereignairinc.com) Essential Air Service at Carlsbad, NM

- Request for Comments

- Due February 8, 2013 Thursday, January 17, 2013 4:01:51 PM CNM Boutique Air Proposal.pdf New Mexico Airlines- DOT-OST-2002-12802 EAS AT CNMl.odf Sovereign -Carlsbad Filingl.pdf '·

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I would like to update you onthe Essential Air Service (EAS) situation at Carlsbad, NM, and give you an opportunity to submit comments onthe record before we submit a recommendation to the Assistant Secretary for Aviation and International Affairs. On December 12, 2012, the Department issued Order 2012-12-4 solicitingproposals from carriersto provideEAS at Carlsbad,NM, for a new contractperiodbeginning June 1, 2013. In response to that Order, we received proposals from three carriers: Pacific Wings, L.L.C. d/b/aNew Mexico Airlines (NewMexico Airlines), SovereignAir, Inc. (Sovereign), and Boutique Air.
I have attached copies ofthe proposals to this email. The proposals can also be accessed onlinethroughthe Federal Dockets Management System at www.regulations.gov by entering "DOT-OST-2002-12802" in the search box. For your convenience, I will briefly summarize the proposals below.
New Mexico Airlines, the incumbent carrier, proposesto continue its existing service consisting of 12 non-stop round trips perweekto Albuquerque (ABQ). The service wouldbe operated with 9-passenger single-engine Cessna Grand Caravan (C-208B) aircraft. Pacific Wings wouldprovide this service for an annual subsidy of$1,397,081. Sovereignhas proposed four service options for Carlsbad. The first optionwouldprovide 14 weekly one-stop (Roswell) round trips to ABQ. Service wouldbe providedwith 19- passenger, twin-engine Jetstream 31 aircraft. Sovereign wouldprovidethis service for an annual subsidy of$1,422,426. Sovereign's second option would consist of 14 weekly nonstop round trips per weekto ABQ, also using Jetstream 31 aircraft. This service option wouldrequire an annual subsidy of$1,410,533. The third service optionwouldprovide 12 weekly non-stop round trips to ABQ on 12-passenger, twin-engine King Air-200 aircraft. This service wouldbe provided for an annual subsidy of$1,171,625. Sovereign's final service optionwould consist of 19 weekly one-stop (Roswell) round trips to ABQ utilizing the King Air-200 aircraft. This service wouldbe provided for an annual subsidy of $1,551,397. Please be aware that Sovereign does not currently have the requisite operating authority to perform the proposed service from either the Federal AviationAdministration or the Department. Boutique Air has proposedthree service options for Carlsbad. Boutique Air offers each service option as either a two- or four-year contract. All service wouldbe operated with a 9- passenger, twin-engine Pilatus PC-12 aircraft. The first option wouldprovide 24 weekly non-stop round trips to ABQ as well as 12 weekly non-stop round trips to Dallas-FortWorth International Airport (DFW). This service option wouldrequire an annual subsidy of $3,977,670. The second service option would consist of 12 weekly non-stop round trips each to ABQ and DFW. This optionwould be providedfor an annual subsidy of$2,965,492. Thefinal optionwouldprovide 12 weekly non-stop round trips to DFW. This optionwould require an annual subsidy of$1,991,802. Please note thatBoutique Air also does not currently have the requisite operating authority to perform the proposed service.
The schedules and fares thatthe carriers have proposed are illustrative only, andthey may make schedule changes to reflect changing conditions (e.g. to better meet shifting connecting bank times at the hub) or adjust fares as they see fit. The Department expects subsidized carriers to maintain well-timed and well-spaced flights in orderto ensure full compensation.
We request thatyoureview each proposal and submit any comments you may have as soon as possible, but no later than February 8, 2013. We will carefully consider your comments before we submit a recommendation to the Assistant Secretary for a decision.
Please send your comments via email to EAS@dot.gov or by fax to (202) 366-7638. Ifyou have any questions, please feel free to contact A.J. Muldoon ofmy staffat albert.muldoon@dot.goy or (202) 366-1058.

Sincerely,

Dennis J. DeVany Chief, Essential Air Service Division, X-53 Office ofAviationAnalysis