Before the United States Department of Transportation

Washington, DC

June 12, 2014

Essential Air Service at:

KEARNEY, NEBRASKA Docket OST-1996-1715

NORTH PLATTE, NEBRASKA Docket OST-1999-5173

SCOTTSBLUFF, NEBRASKA Docket OST-2003-14535

under 49 U.S.C. 41731 et.seq.

This document contains Great Lakes Aviation, Ltd.'s response to Order Requesting 

Proposals 2014-4-30.

Great Lakes Aviation, Ltd. is pleased to submit this proposal, as an inseparable package,

for all three of these Nebraska communities.

Our proposals contemplate conveniently timed connecting services to our Denver hub, whereby 

passengers may utilize our code-share agreements with United Airlines and Frontier Airlines. Local 

service will be marketed and priced utilizing the Great Lakes (ZK) brand and reservations system. 

Additionally, Great Lakes maintains interline ticketing and baggage agreements with the majority of 

the other carriers serving Denver, including interline e-ticketing agreements with American Airlines, 

Delta Airlines, Frontier Airlines and United Airlines . All of which will offer passengers traveling to 

and from these communities supplemental access to the domestic and international air 

transportation system.

The proposed service is being offered utilizing pressurized, twin-engine Beech 1900D aircraft flown 

by two pilots. 

New FAA pilot qualification rules have created an industry-wide pilot shortage which has had an 

acute impact on Great Lakes. These new rules mandated that first officers obtain an Airline 

Transport Pilot certification (“ATP”) prior to being qualified to perform crewmember duties in 

scheduled airline passenger service under FAR Part 121 regulatory requirements. A key factor to 

enable a pilot to receive an ATP certificate is the accumulation of 1,500 flight hours. 

On March 18th of this year, Great Lakes received from the FAA new operations specifications 

allowing us to hire pilots under it's FAR Part 121 Certificate utilizing FAR Part 135 regulatory hiring 

requirements. This allows our new hire pilots to operate the Beech 1900D aircraft in a nine seat 

configuration and will enable Great Lakes to restore pilot staffing levels while maintaining FAR Part 

121 hiring, training and maintenance standards. 

Great Lakes' "base case" proposals assume that we will be limited to nine available seats for our 

Beechcraft 1900D aircraft. As an alternative, we have provided proposals that lower subsidy 
Questions and comments may be referred to:

Michael O. Matthews

Chief Financial Officer

Great Lakes Aviation, Ltd.

1022 Airport Parkway

Cheyenne, WY 82001

(307) 432-7000

requirements assuming that the aircraft can be returned to a 19 seat configuration. Additionally, for 

the same annualized subsidy requirements as our "base case" proposal; we are prepared to 

commit, with the full marketing support of the communities, to upgrading the aircraft to 37 seat or 

larger regional jets operating two roundtrips per weekday and two roundtrips over the weekend 

period.

It is Great Lakes' belief that regulatory relief for small community air service must be granted in the 

near future. Excessive subsidy requirements will force communities to loose EAS service eligibility 

as available seats are being dramatically reduced due to arbitrary limitations on aircraft seating 

configurations. Great Lakes’ stands ready to participate in creative solutions to assist small 

communities in their efforts to remain in the National Air Transportation System.
Table of Contents:

Subsidy Passen

Bid Service Point(s) Hub Served Round Trips Equipment Requirement Forec

1 Scottsbluff, Nebraska Denver 3 1900D - 9 seat $2,443,523 

10,00

2 Kearney, Nebraska Denver 3 1900D - 9 seat $2,993,938 

12,75

3 North Platte, Nebraska Denver 3 1900D - 9 seat $2,818,163 

10,00

Total Cost of 9 Seat Beech 1900-D $8,255,624 32,75

1 Scottsbluff, Nebraska Denver 3 19 Seat *Plus* $1,765,849 

20,00

2 Kearney, Nebraska Denver 3 19 Seat *Plus* $2,034,866 

27,00

3 North Platte, Nebraska Denver 3 19 Seat *Plus* $2,117,119 

20,00

Total Cost of 19 Seat *Plus* Bid $5,917,834 67,00

Cost of 1,500 hour ATP to EAS program $2,337,789 - 

34,25

As a alternative to the nine seat aircraft EAS bid, Great Lakes would be prepared to commit upgrading the aircraft to a 37 seat or larger Regional Jet that would provide two round trips weekday and over the weekend period for the same total annualized subsidy amounts.Regional Jet service option to be offered at Great Lakes discretion and assumes full commumarketing support for the company's efforts to offer a minimum of 74 departing seats per we
Great Lakes Aviation, Ltd.

Annual Compensation Requirements for Essential Air Service at

Scottsbluff, Nebraska to Denver (DEN)

Three Round Trips - B1900 - current schedules should be used as sample pattern of service

(at 98 percent completion)

Departures: 1,840

Block Hours: 1,656

Revenue Passenger Miles: 1,500,000

Available Seat Miles: 2,484,000

Operating Revenues:

Passenger: BFF-DEN 10,000 psgrs at $104.98 $1,049,800

Other: (at 0.62% of passenger revenue) $6,509

Total Operating Revenues: $1,056,309

Operating Expenses:

Direct: Aircraft and Hull Insurance $365,710

Fuel and Oil $984,388

Flying Operations $326,629

Maintenance $613,112

Total Direct Expenses: $2,289,839

Total Indirect Expenses: $1,043,334

Total Operating Expenses: $3,333,173

Operating Loss ($2,276,864)

Profit Element (5.0% of Total Operating Expenses) $166,659

Annual Compensation Requirement: $2,443,523

 All Scottsbluff - Denver - Scottsbluff Service is Non-Stop

 This Proposal is submitted with no upline scheduling restrctions

As a alternative to this nine seat aircraft EAS bid Great Lakes would be prepared to commit to

upgrading the aircraft to a 37 seat or larger Regional Jet that would provide two round trips per

weekday and over the weekend period for the same total annualized subsidy amount.

Regional Jet service option to be offered at Great Lakes discretion and assumes full community

marketing support for the companys efforts to offer a minimum of 74 departing seats per day. 

RJ Subsidy 

per departure

$2,443,523 Regional Jet Subsidy 1,227 Departures $1,991.46
Great Lakes Aviation, Ltd.

Annual Compensation Requirements for Essential Air Service at

Kearney, Nebraska to Denver (DEN)

Three Round Trips - B1900 - current schedules should be used as sample pattern of service

(at 98 percent completion)

Departures: 1,840

Block Hours: 2,454

Revenue Passenger Miles: 3,660,000

Available Seat Miles: 5,050,800

Operating Revenues:

Passenger: EAR-DEN 12,750 psgrs at $119.02 $1,517,505

Other: (at 0.62% of passenger revenue) $9,409

Total Operating Revenues: $1,526,914

Operating Expenses:

Direct: Aircraft and Hull Insurance $365,710

Fuel and Oil $1,495,923

Flying Operations $484,027

Maintenance $750,982

Total Direct Expenses: $3,096,642

Total Indirect Expenses: $1,208,931

Total Operating Expenses: $4,305,573

Operating Loss ($2,778,659)

Profit Element (5.0% of Total Operating Expenses) $215,279

Annual Compensation Requirement: $2,993,938

 All Kearney - Denver - Kearney Service is Non-Stop

 This Proposal is submitted with no upline scheduling restrctions

As a alternative to this nine seat aircraft EAS bid Great Lakes would be prepared to commit to

upgrading the aircraft to a 37 seat or larger Regional Jet that would provide two round trips per

weekday and over the weekend period for the same total annualized subsidy amount.

Regional Jet service option to be offered at Great Lakes discretion and assumes full community

marketing support for the companys efforts to offer a minimum of 74 departing seats per day. 

RJ Subsidy 

per departure

$2,993,938 Regional Jet Subsidy 1,227 Departures $2,440.05
Great Lakes Aviation, Ltd.

Annual Compensation Requirements for Essential Air Service at

North Platte, Nebraska to Denver (DEN)

Three Round Trips - B1900 - current schedules should be used as sample pattern of service

(at 98 percent completion)

Departures: 1,840

Block Hours: 2,024

Revenue Passenger Miles: 2,280,000

Available Seat Miles: 3,775,680

Operating Revenues:

Passenger: LBF-DEN 10,000 psgrs at $116.55 $1,165,500

Other: (at 0.62% of passenger revenue) $7,226

Total Operating Revenues: $1,172,726

Operating Expenses:

Direct: Aircraft and Hull Insurance $365,710

Fuel and Oil $1,257,454

Flying Operations $399,214

Maintenance $676,691

Total Direct Expenses: $2,699,069

Total Indirect Expenses: $1,101,778

Total Operating Expenses: $3,800,847

Operating Loss ($2,628,121)

Profit Element (5.0% of Total Operating Expenses) $190,042

Annual Compensation Requirement: $2,818,163

 All North Platte - Denver - North Platte Service is Non-Stop

 This Proposal is submitted with no upline scheduling restrctions

As a alternative to this nine seat aircraft EAS bid Great Lakes would be prepared to commit to

upgrading the aircraft to a 37 seat or larger Regional Jet that would provide two round trips per

weekday and over the weekend period for the same total annualized subsidy amount.

Regional Jet service option to be offered at Great Lakes discretion and assumes full community

marketing support for the companys efforts to offer a minimum of 74 departing seats per day. 

RJ Subsidy 

per departure

$2,818,163 Regional Jet Subsidy 1,227 Departures $2,296.79
Great Lakes Aviation, Ltd.

Annual Compensation Requirements for Essential Air Service at

Scottsbluff, Nebraska to Denver (DEN)

Three Round Trips - B1900 - current schedules should be used as sample pattern of service

(at 98 percent completion)

Departures: 1,840

Block Hours: 1,656

Revenue Passenger Miles: 3,000,000

Available Seat Miles: 5,244,000

Operating Revenues:

Passenger: BFF-DEN 20,000 psgrs at $97.77 $1,955,400

Other: (at 0.62% of passenger revenue) $12,123

Total Operating Revenues: $1,967,523

Operating Expenses:

Direct: Aircraft and Hull Insurance $365,710

Fuel and Oil $984,388

Flying Operations $326,629

Maintenance $613,112

Total Direct Expenses: $2,289,839

Total Indirect Expenses: $1,265,754

Total Operating Expenses: $3,555,593

Operating Loss ($1,588,070)

Profit Element (5.0% of Total Operating Expenses) $177,780

Annual Compensation Requirement: $1,765,849

 All Scottsbluff - Denver - Scottsbluff Service is Non-Stop

 This Proposal is submitted with no upline scheduling restrctions.
Great Lakes Aviation, Ltd.

Annual Compensation Requirements for Essential Air Service at

Kearney, Nebraska to Denver (DEN)

Three Round Trips - B1900 - current schedules should be used as sample pattern of service

(at 98 percent completion)

Departures: 1,840

Block Hours: 2,454

Revenue Passenger Miles: 8,235,000

Available Seat Miles: 10,662,800

Operating Revenues:

Passenger: EAR-DEN 27,000 psgrs at $108.21 $2,921,670

Other: (at 0.62% of passenger revenue) $18,114

Total Operating Revenues: $2,939,784

Operating Expenses:

Direct: Aircraft and Hull Insurance $365,710

Fuel and Oil $1,495,923

Flying Operations $484,027

Maintenance $750,982

Total Direct Expenses: $3,096,642

Total Indirect Expenses: $1,641,121

Total Operating Expenses: $4,737,763

Operating Loss ($1,797,978)

Profit Element (5.0% of Total Operating Expenses) $236,888

Annual Compensation Requirement: $2,034,866

 All Kearney - Denver - Kearney Service is Non-Stop

 This Proposal is submitted with no upline scheduling restrctions
Great Lakes Aviation, Ltd.

Annual Compensation Requirements for Essential Air Service at

North Platte, Nebraska to Denver (DEN)

Three Round Trips - B1900 - current schedules should be used as sample pattern of service

(at 98 percent completion)

Departures: 1,840

Block Hours: 2,024

Revenue Passenger Miles: 4,560,000

Available Seat Miles: 7,970,880

Operating Revenues:

Passenger: LBF-DEN 20,000 psgrs at $107.97 $2,159,400

Other: (at 0.62% of passenger revenue) $13,388

Total Operating Revenues: $2,172,788

Operating Expenses:

Direct: Aircraft and Hull Insurance $365,710

Fuel and Oil $1,257,454

Flying Operations $399,214

Maintenance $676,691

Total Direct Expenses: $2,699,069

Total Indirect Expenses: $1,386,557

Total Operating Expenses: $4,085,626

Operating Loss ($1,912,838)

Profit Element (5.0% of Total Operating Expenses) $204,281

Annual Compensation Requirement: $2,117,119

All North Platte - Denver - North Platte Service is Non-Stop

 This Proposal is submitted with no upline scheduling restrctions