Order: 2010-6-3

 Served: June 2, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 2nd of June, 2010

Essential Air Service at

MCCOOK, NEBRASKA

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

Docket DOT-OST-1997-3005

ORDER SELECTING CARRIER

Summary

By this order, the Department is selecting Great Lakes Aviation, Ltd. (“Great Lakes”) to 

continue to provide essential air service (EAS) at McCook, Nebraska, at an annual subsidy rate 

of $1,796,795, for the next two-year period from June 1, 2010, through May 31, 2012.1

Background

By Order 2008-5-2, May 5, 2008, the Department selected Great Lakes to provide 12 weekly 

nonstop flights using Beechcraft 1900D aircraft from McCook to Denver International Airport, 

for a two-year period beginning when the carrier inaugurated service through the end of the 24th

month thereafter, at an annual subsidy of $1,583,277. Great Lakes inaugurated service to 

McCook on June 1, 2008. 

 1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated funds.
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In anticipation of the end of Great Lakes’ current contract on May 31, 2010, the Department 

issued Order 2010-2-14, February 16, 2010, to solicit proposals from all interested air carriers to 

provide service at McCook. 

Proposals

In response to that order, we received proposals from three carriers, Great Lakes, the incumbent;

Alaska Juneau Aeronautics d/b/a SeaPort Airlines (“SeaPort”); and TransportAzumah.

Great Lakes’ proposal would continue to offer 12 nonstop round trips per week from McCook to 

Denver International Airport utilizing 19-seat Beechcraft 1900D aircraft, for an annual subsidy 

of $1,796,795.

TransportAzumah proposes to offer 14 nonstop round trips per week from McCook to Denver 

International Airport using 30-passenger EMB-120ER aircraft, for an annual subsidy of 

$2,412,865. This proposal offers two more round trips per week than the Department solicited 

using 15-seat or larger aircraft.

SeaPort’s proposal offers 18 nonstop round trips per week between McCook and Denver’s 

business aircraft center using 9-seat Pilatus PC-12 aircraft, for a first year subsidy of $1,963,367, 

and a second year subsidy of $1,991,516. 

The complete proposals of all three carriers may be accessed online at

http://www.regulations.gov/ by entering “DOT-OST-1997-3005.”

Community and State Comments

On March 24, 2010, we requested community comments regarding the carrier selection at 

McCook. 

In an April 27 e-mail to the Department, Mayor Dennis Berry stated that in its final vote, the 

McCook City Council voted 5-0 for Great Lakes’ proposal, but SeaPort did receive serious 

consideration by the McCook City Council and the Airport Advisory. He states that the 

community remains very concerned that Great Lakes “has no marketing in the area and our 

enplanements are weak. [Great Lakes] seems to charge rates that drive passengers away.” 

Further, he states that Great Lakes flies past McCook fairly often without stopping and its service 

is spotty at best, and appears unresponsive to the concerns of passengers or the city. Mayor 

Berry says, “the users of the service would like to see improvements made in a reliable schedule, 

cost of the flights and general service.” Therefore, although the city of McCook, Nebraska,

voted to approve Great Lakes, “major concerns exist.”

Decision

TransportAzumah does not have the requisite operating authority from either the Federal 

Aviation Administration or the Department of Transportation to operate its proposed service. 

Moreover, there was no community support for the carrier’s proposal, and the requested subsidy 

is greater than Great Lakes’.
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SeaPort proposed to use aircraft with fewer than 15 seats, and McCook did not waive its 

statutory right to 15-seat aircraft. Its proposed subsidy is larger than Great Lakes and, while it 

received some consideration in the community, it was not recommended by the community.

Great Lakes was recommended by the community, although with serious concerns, and we find 

that its requested subsidy is reasonable. Therefore, we will reselect Great Lakes to provide 

service from McCook to Denver, for the next two year period from June 1, 2010, through 

May 31, 2012, at an annual subsidy rate of $1,796,795. We expect Great Lakes to work with the 

community of McCook to address any concerns it has regarding its marketing, schedule 

reliability, and fares.

We shall make Great Lakes’ selection at McCook contingent upon the Department’s receiving 

properly executed certifications from Great Lakes that it is in compliance with the Department’s 

regulations regarding drug-free workplaces and nondiscrimination, as well as the regulations 

governing lobbying activities.

Carrier Fitness

49 U.S.C. 41737(b) requires that we find an air carrier fit, willing, and able to provide reliable 

service before we may subsidize it to provide essential air service. Great Lakes is subject to the 

Department’s continuing fitness requirements, and no information has come to our attention that 

would cause us to question the carrier's fitness at this time. We have contacted the Federal 

Aviation Administration, and it has raised no concerns that would negatively affect our fitness 

finding. We therefore conclude that the carrier remains fit to conduct the operations proposed 

here.

This order is issued under authority delegated in 49 CFR 1.56a(f).

ACCORDINGLY,

1. We select Great Lakes Aviation, Ltd. to provide essential air service at McCook, Nebraska;

2. We set the final rate of compensation for Great Lakes Aviation, Ltd., for the provision of 

essential air service at McCook, Nebraska, as described in Appendix C;

3. We direct Great Lakes Aviation, Ltd. to retain all books, records, and other source and 

summary documentation to support claims for payment, and to preserve and maintain such 

documentation in a manner that readily permits its audit and examination by representatives of 

the Department. Such documentation shall be retained for seven years or until the Department 

indicates that the records may be destroyed, whichever comes first. Copies of flight logs for 

aircraft sold or disposed of must be retained. The carrier may forfeit its compensation for any 

claim that is not supported under the terms of this order;

4. We find that Great Lakes Aviation, Ltd. continues to be fit, willing and able to operate as a 

certificated carrier and capable of providing reliable essential air service at McCook, Nebraska; 

5. This docket will remain open until further order of the Department; and
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6. We will serve copies of this order on the Mayor of McCook, the manager at McCook

Regional Airport, Great Lakes Aviation, Ltd., Alaska Juneau Aeronautics, Inc. d/b/a SeaPort 

Airlines, and TransportAzumah.

By:

SUSAN L. KURLAND

Assistant Secretary

for Aviation and International Affairs

(SEAL)

An electronic version of this document is available on the Internet at

http://www.regulations.gov
Appendix A

AREA MAP

This map is provided by Sabre® AirVisionTM Profit Essentials and is being used with express permission of the copyright holder, 

Sabre Airline Solutions®.
Appendix B
Appendix C

Great Lakes Aviation, Ltd.

Essential Air Service to be Provided at McCook, Nebraska

Effective Period: June 1, 2010, through May 31, 2012

Scheduled Service: 12 nonstop round trips to Denver International Airport each week

Aircraft: Beech 1900, 19 seats

Rate per Eligible Flight: $1,4641

Weekly Ceiling: $35,1362

Note: The carrier understands that it may forfeit its compensation for any flights that it does not operate in

conformance with the terms and stipulations of the rate order, including the service plans outlined in the order and 

any other significant elements of the required service, without prior approval. The carrier understands that an 

aircraft take-off and landing at its scheduled destination constitutes a completed flight; absent an explanation 

supporting subsidy eligibility for a flight that has not been completed, such as certain weather cancellations, only 

completed flights are considered eligible for subsidy. In addition, if the carrier does not schedule or operate its 

flights in full conformance with the order for a significant period, it may jeopardize its entire subsidy claim for the 

period in question. If the carrier contemplates any such changes beyond the scope of the order during the applicable 

period of these rates, it must first notify the Office of Aviation Analysis in writing and receive written approval from 

the Department to be ensured of full compensation. Should circumstances warrant, the Department may locate and 

select a replacement carrier to provide service on these routes. The carrier must complete all flights that can be 

safely operated; flights that overfly points for lack of traffic will not be compensated. In determining whether 

subsidy payment for a deviating flight should be adjusted or disallowed, the Department will consider the extent to 

which the goals of the program are met and the extent of access to the national air transportation system provided to 

the community.

If the Department unilaterally, either partially or completely, terminates or reduces payments for service or changes 

service requirements at a specific location provided for under this order, then, at the end of the period for which the 

Department does make payments in the stipulated amounts or at the stipulated service levels, the carrier may cease 

to provide service to that specific location without regard to any requirement for notice of such cessation. Those 

adjustments in the levels of subsidy and/or service that are mutually agreed to in writing by the Department and 

carrier do not constitute a total or partial reduction or cessation of payment.

Subsidy contracts are subject to, and incorporate by reference, relevant statutes and Department regulations, as they 

may be amended from time to time. However, any such statutes, regulations, or amendments thereto shall not 

operate to controvert the foregoing paragraph.

Funds are not currently available for performance under this order beyond September 30, 2010. The Government’s 

obligation for performance under this order beyond September 30, 2010, is subject to the availability of appropriated 

funds from which payment for services can be made. No legal liability on the part of the Government for any 

payment may arise for performance under this order beyond September 30, 2010, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond September 30, 2010, the 

Department will provide notice in writing to the carrier.

All claims for payment must be submitted within 60 days of the last day of service provided under this order.

 1 Annual compensation of $1,796,795, divided by 1,227 annual departures (313 service days x 4 flights per service 

day x 98 percent completion).

2 24 flights per week multiplied by $1,464 per flight.