## | J % ..-.'.-^•RTMENTO F

ULS . Departmen t o f ::.' . O'^uWlOl'- R 120 0 Ne w jerse y Avenue , S E Transportatio n Washington , D C 2059 0 Offic e O fth e Secretar

y - j p - ; p A i h r - ofTfonspoftatio n ' '" ^ ^ '

Octobe r 18 , 201 1 Th e Honorabl e Jerr y Gis t Mayo r o f th e City o f

Jackso n 12 1 Eas t Mai n Street , Suit e 30 1 Jackson , Tennesse e 3830 1 Dea r Mayo r Gist : I woul dlik e t o updat e yo u o n th e essentia l ai r servic e situatio n a

t Jackso n an dgiv e yo u an opportunity t o submi t

an y comment s if

yo u wish . I n respons e t o Pacifi c Wings ' 90

- day notic e o f

inten t t o terminat e service , th e Departmen t issue dOrde r

2011-8-27 , Augus t 27 , 2011 , t o solici t

proposal s fromal l intereste dai r carrier s t o provid e EA S a t Jackson. Orde r

2011-8-2 7 state dtha t

Publi c La w 112-27 , signe dinto la

w o n Augus t 5 , 2011 , amende dth e definitio n o f "eligibl e place " fo

r th e purpos e of

receivin g EAS . See 4 9 U.S.C . § 41731 . Th e amendment state s tha t t o b e eligible , acommunit y mus t b e locate dno t les s tha n 9 0 mile s fro

mth e neares t

mediumor

larg e hu b airpoi t

an dmus t hav e hada

n averag e subsid

y per passenger o f les s tha n $1,00 0 durin g th e mos t

recent fisca l year , a s determine dby th e Secretar y of Transportation . Sectio n 41731 , a s amended , als o grant s th e Secretar y th e authorit

y t o issu e awaiver

of th e 90-mil e criterio n i

f th e Secretar

y determine s tha t th e "geographi c characteristic s o f th e locatio n resul t

i n undu e difficult

y in accessin g th e neares t mediumor

larg e hu b airport. " 4 9 U.S.C . § 41731(d) . Th e Department i s currentl y workin g on aNotic e of

Propose dRulemakin g regardin g th e new provision s under 4 9 U.S.C . § 41731 , a s amended , whic h i t plan s to issu e i n th e nea

r future . Als o i n th e Order , w e stated , "Althoug h th e Departmen t ofte n award s two-yea r

contract s fo

r subsidize dEA S a

t acommunity , proposal s shoul dreflec t an understandin g tha t

th e community' s EA S statu s ma y b e affecte db y th e recen t amendmen t

an dpendin g rulemaking, whic h may impac t th e term s of

an y ne w contract. " In respons e t o that

Order , w e receive dproposal s fro mMulti-Aero , Inc . d/b/ aAi r Choic e On e (Ai r Choic e One) , and.SeaPort Airlines , Inc . (SeaPort) . '.'"at>ief , o f eac h proposal ivii?

v i-i. ^ •;*•-i/c-^^'e d^ipHu e n ? lujjK''>^/\';>Hji,;i:jitai!^t|;;_i^i : l'^

-Ai r

Choic e On e propose dtw o options , eac h operatin g with 9-passenge r Cessn aGran d Carava n aircraft . Optio n 1 i s thre e nonsto p roun dtrip s eac h weekda y an dweeken d (1 8 pe r week ) t o Lambert-St . Loui s Internationa l Airpor t for a n aimual subsid y o f $1,810,690 . Optio n 2 i s thre e nonsto p roun dtrip s eac h weekda y an dweeken d(1 8 pe r week ) t o Nashvill e Internationa l Airpor t for an annua l subsid y o f

$1,741,701 . SeaPort propose s thre e options , al l usin g 9-passenge r Cessn aCarava n aircraft . Optio n 1 i s thre e nonsto p roun dtrip s eac h weekda y an dweeken d(1 8 pe r week ) t o Memphi s Internationa l Airport

(Memphis ) for

an armua l subsid y o f

$947,81 8 (firs t

year ) an d $925,60 3 (secon dyear) . Optio n 2 i s tw o nonsto p roun dtrip s eac h weekda y an dweeken d (1 2 pe r week ) t o Nashvill e an don e nonsto p roun dtri p eac h weekda y an dweeken d( 6 pe r week ) t o Memphi s for

a n aimual subsid y o f

$1,149,70 3 (firs t

year ) an d$1,115,21 0 (secon dyear) . Optio n 3 i s tw o nonsto p roun dtrip s eac h weekda y an dweeken d(1 2 pe r week ) t o Memphi s an don e nonsto p roun dtri p eac h weekda y an dweeken d( 6 pe r week ) t o Nashvill e for

a n armua l subsid y o f

$1,034,16 4 (firs t

year ) an d$1,006,38 7 (secon d year) . Base do n existin g law an dth e propose drulemakm g discusse dabove , th e Departmen t i s prepare dt o selec t

Ai r Choic e On e o r

SeaPor t t o serv e Jackso n fo

r aone-year

term . An y servic e tha t

coul dpossibl y b e subsidize dafter on e yea r wil l determine donc e th e rulemakin g proces s ha s bee n completed . Pleas e not e tha t

th e averag e passenge r

fare s show n u i th e proposa l d o no t necessaril y reflec t th e averag e loca l far e Jackso n passenger s woul dactuall y pay , but , rather , reflec t a prorate dportio n o f

th e tota l ticke t

price , e.g. , th e Jackso n - Nashvill e portio n o f a Jackso n - Nashvill e - Washington , D.C . ticke t tha t th e subsidize dcarrie r

woul drealize . Also , th e far

e show n i s ne t

o f certai n charge s suc h a s Federa l transportatio n security fees , excis e o r ticke t taxes , an dPassenge r

Facilit y Charges . O f

course , carrier s hav e th e discretio n t o charg e fare s the y deemappropriate , an dth e passenge r fare s presente di n thi s proposa l hav e bee n develope dfor subsid y rat e computatio n purpose s only . Yo u shoul dals o not e tha t th e schedule s tha t

th e carrie r

ha s submitte dar e illustrativ e only , an dtha t the y ma y mak e schedul e change s t o reflec t changm g conditions , e.g. , t o bette r mee t shiftin g connectin g ban k time s at th e hub . Th e Departmen t expect s subsidize dai r carrier s t o maintai n well-time dan dwell-space dflight s i n orde r t o ensur e full compensation . W e as k that yo u submi t

an y comment s yo u ma y hav e a s soo n a s possible , bu t i n an y cas e n o late r tha n Novembe r

15 , 2011 . W e wil l carefull y conside r you r conmient s befor e w e submi t areconamendatio n t o th e Assistan t Secretar y fo r

adecision . Shoul dyo u hav e an y question s o r

nee dadditiona l tim e t o draf t you r comments , pleas e le t

u s know . Pleas e sen dyou r

comment s viae-mai l t o EAS@dot.go v o r b y fa x t o 202-366-7638 . I

f yo u hav e an y questions , pleas e fee l fre e t o contac t Kevi n Schlemme r

of my staf f a t kevin.schlemmer@dot.go v o r 202-366-3176 .A similar lette r ha s bee n sen t

t o th e Executiv e Directo r a t th e Jackson-Madiso n Count y Airport Authority . Sincerely , 

# jny ^ Denni s J . DeVan y Chief , Essentia l Ai r

Servic e