09/27/2012 16:09 7872763846 L A IRIZARRY ASSOCIA 

AVJATION 

CONSULT ANT 

L.A. IRIZARRY & ASSOCIATES 

September 27, 2012 

P.O. BOX 37217 LUIS Ml;floz MARIN INTERNA'TIONAL AIRPORT 

SAN JUAN, PUERTO RICO 00937-0217 

Aloha Ley 

Office of Aviation Analysis 

1200 New Jersey Ave. SE. 

W86·310 

Washington, DC 20590 

TELS. mm 75?·7621 • FAX 1787) 276·3846 

E-mail: irizarry@icenetworks.com 

RE: SmaH Community Air Service Development Program 

Docket DOT-OST-2012~006 

Consortium of the PRTC and RlAC 

Dear Aloha: 

PAGE 01/08 

znz 

Why I am not surprise of this new that the Government of Puerto Rico don't want to call it a new 

· APP (Public-Private Partnership Association) to privatize this aviation service between San Juan 

International Airport and Culebra Airport. 

The same as they are doing with the Luis Munoz. Marin International Airport., given it to a foreign 

operator from Mexico. 

I am and all my clients are in opposition to this, which list will follows: 

Air Charter, Inc. 

Island Air Charter Inc. 

Ace Flight Center 

Aerotim Cargo International, Inc. 

Bevin Air Service 

Charter Flights Caribbean 

VI Air Link 

Clair Aero, Inc. 

Servicios Aereos Profesionales, S.A. 

Servicios Aereos Profesionates, Inc. 

Aerolfneas Santo Domingo, S.A. 

Air Sunshine, Inc 

Jet Center, Inc 

I will like to brlng to your attention the following based on the published information and 

requirements for the Small Community Air Service Development Program funding to Cape Air for 

the "Culebra Service'. 
09/27/2012 15:09 7872753845 L A IRIZARRY ASSOCIA PAGE 02/08 

A. Eligible Appl;cants 

Eligible applicants are small communmes that meet the following .statutory criteria ( 49 U.S. C. 417 43): 

1. As of calendar year 1997, the airport seJVing the community was not larger than a .small hub airport. 

and it has insufflcient air carrier service or unreasonably high air fares; and 

Since 1997 and long before that, Culebra has been serviced with a reliable, sate, reasonable and 

senous air service_ It does have and today have sufficient air carrier service with reasonable 

fares. 

2. The airport serving the community presents characteristics, such as geographic diversity or unique 

circumstances that demonstrate the need for, and feasibility of. grant assistance ftom the Smaff community 

Program. 

There is no diversity or unique characteristic for this airport. 

Communities without existing air service: Communities that do not currently have commercial air service 

are eligible for SCASDP funds, but air service providers must have met or be able to meet in a reasonable 

period all Departmental requirements for air service certification, including safety and economic authorities. 

This is not the case of Culebra Airport Not only it have sufficient air carrier services by three 

airlines and several charter services, the community also have marine services between Fajardo 

and Culebra Island. 

Ellgible Projects 

The Depattment is authorized to award grants under 49 u.s. c. 417 43 to communities that seek to 

provide assistance to: 

An air carrier to subsidize service to and from an underserved airport for a period not to exceed 3 years; 

Why ~he Department does not provide those funds to help the actual air carrier servicing Culebra 

to expand its services instead of giving this money to bring a carrier that never provided services 

to Culebra and will come and put these air carriers out of business with the help of the 

Government of Puerto Rico and the funding of the Department, which are moneys from the 

public. 

An undersetved airport to obtain service to and ti'om the undernerved airport; and/or An under.served 

airport to Implement such other llllU)Sures ss the Secretary, in consultation with such airport, considers 

appropriate to improve air service both in terms of the cost of such service to consumers and the 

availabil;ty of such service, including improving air service through marketing and promoffon of air service 

and enhanced tmlization of airport facrTdies. 

This is not the case also, Culebra Airport is properly served with regular air carrier service and 

also Charter service, and with the consultation with whom, the Mayor of the City was never 

consulted of this proposal. like everything that this actual Government has been doing, in the 

dark, and behind doors, they make deals and not considering the people of Puerto Rico and in 

this case Culebra, which is the ones who pays their salary. The Tourist Department of Puerto 

Rico never had market not make any assistance to the local air caniers to promote, increase and 

improve the service provided. 
89/27/2812 16:89 7872763846 L A IRIZARRY ASSOCIA PAGE 83/08 

Now they are expending tha money of the Puerto Rico Peopla in another air carrier, which 

already have the Essential Air Service for Mayaguez Airport, had the Ponce Airport when in fact 

was the one that with the highest bidding for this service. 

We have to ask yourself, was the Essential Air Service biding fair and equal to others, when they 

was granted the bid when they were the highest bidder? Was not this a political issue due to the 

owner of Cap Air? ls the Government and possible the Department financing Cape Air in its 

·operations? 

The credibility of these types of program is in question. 

Applicants also should keep in mind the following statutory restrictions on eUgible projects: 

An applicant may not receive an addiUonal grant to support the same project from a previous grant (see 

Same Project Umitation, below); and 

cape Air, which the air carrier granted with these funds have additional grant, as previously 

indicated, Essential Air Service. This is not mentioned in the proposal. 

An appficant may not receive an addifional grant, prior to the completion of its prevk>us grant (see 

Concurrent Grant Limitation, below). 

Again, Cape Air, which the air carrier granted with these funds have additional grant, as 

previously indicated, Essential Air Service. This is not mentioned in the proposaL 

It is clear that in the proposal, what Cape Air will do is operate during the high season in each 

place, if you look good at the proposal, Cape Air will operates in summer in the Block Island 

Airport and in winter in Culebra_ Where is the need for the services when they only will conduct 

operations to be benefits of the tourism season? Why they do not conduct operations in winter in 

Block Island, because no one fly there in winter. Is this a real service to the people of Culebra 

and Block Island? Of this is just another way to obtain money from the Government? You should 

answer it. 

A Priority Selection Criteria 

The law directs the Department to give prtortty consideration to those communities or consortia where 

the following criteria are met: 

Air fares are higher than the national average air fares for all communities-DOT will compare the local 

community's air fares to the netional average air fares for all communifies. Communities with air fares 

significantly higher than the national average air fares for all communities will be given priority_ DOT 

calculates these fares using the Bureau of Transportation statistics (BTS) database_ BTS Origin 

Destination Survey dais is used to gather fare data for all markets thst serve airports represented In 

SCASDP applications. The SCASDP air fare comparison report represents a community's (each 

individual appticanf.s) air fares as a percentage of National Averages (Fare Premium). The report 

compares a community·s air fares to the average for all other markets in the Country that have similar 

density (passenger volume) and distance characteristics {market groupings). The Fare Premium 

calculation includes all markets that averaged more than 1 passenger a day. 

The air fares are not higher than the national average air fares for all communities in Puerto Rico. 

There is no need to give priority to this community as the air fare are very reasonable and fair 

and the service provided is enough and all year round. 
09/27/2012 15:09 7872753845 L A IRIZARRY ASSOCIA PAGE 04/08 

As a matter of fact, at this moment the Government of Puerto Rico is in the process of 

transfening the Luis Munoz Marin 1ntemational Airport to a foreign private company under a 40 

year lease agreement. This will not only increase the fare for the flights to be conducted between 

this aircraft by Cape Air and Cu!ebra but will remain for the next 40 years as long as the airport is 

privatized. 

Is this the purpose of these programs? Is this the purpose of granting the money to Cape Air and 

in another hand, eliminating the setvice provided to Culebra from other airports like Isla Grande 

Airport, which is located 5 miles from the Luis Munoz Marin International Airport? 

Our opinion is that the Government of Puerto Rico, through the Tourist Department and Ports 

Authority want to eliminate the local operators and put thousands of father's and mothers of 

families out of a job as they already did to over 30 thousands of them and using the Department 

to do so_ 

2_ Participation-DOT will consider whether an application has broad community participation, including: 

Whether the proposed proj'ect has broad community support; and The community's demonstrated 

commitment to and participation in the proposed project. 

If in fact the Department considered that the application broad community participation, I 

recommend that you looks at the docl<et, there are more letters in oppositions to the project than 

in favor. Up to the point that the Mayor of the Culebra Community was never consulted about 

this, as previously indicated this was done behind closed doors and at the black of the night. No 

community participation was demonstrated nor did any participation have the community. 

Hope you consider the about and may take whatever actJon is appropriate_ 

Sincerely, 

Robert A. Letteney 

Deputy Assistant Secretary for Aviation and International Affairs_ 
09/27/2012 15:09 7872753845 

~'rancisco Toms -l~iccrion to Cape:: Air) 

L A IRIZARRY ASSOCIA PAGE 05/08 

l'age 1 

Rsgulcrtions.gov will undergo scheduled maintenance and will be unavailable Saturday, September 29, from 8:00a.m. until 8:00p.m. (EDT). 

~regulation~\/ ~ur \lch:~ 11!1 Fe{jer~1! P~dslc>:1->111f.l~ll"'l' 

,...... 

Document Details 

· ................... . .. 

Francisco Torres- (Objection to Cape Air) 

Vl~ Document: ~· 

t;''~ 

Comment: 

To Whom It May Concern This is to ln'l'orm of o~tr totl3l objection to the application !Submitted by Cape Air to take part in the "Smell 

Community Air Service Development Program" for the Island of Culebra, Puerto Rico. Air Flamenco is a commuter air carrier that has 

been providing air passenger and cargo servlceG \'0 Culebra Island for many year'S; very similar to the servic®s New England Airline::~ 

provide 1:0 Bloc!< Island, Our Company has been there giving service 24f7, 24 hoLir medical transportation to Island residents and visitors 

alike. We ere native of Culebra Island and have been operating since September, 1976. We were not aware of this application or DOT 

Program until July 18, 2012; one month past the application due date of June. We were informed by New England Airline, which we 

understand was informed short before the closing date, To say that Air Flamenco does not provide adequate service to O\~r major airport is 

nal: true. because we have a counter station in San Juan lntematlonl'll Airport to serve and connect with all major airlines. To say that 

Culebra Island is isolated from thlil rest of the world is false. Air Flamenco and New England Airlines, already have end operate the proper 

aircraft needed to sef"l/e our Islands; combined a total of ·RHeen ( 15) aircraft, support equipment and spare!;; to keep our fleE!t ~fely flying 

for many yea~ to come. We belive that granting or subsidizing another carrier where other Companies a~ afrgady offering this service for 

many years is not only untslr but discriminating, Local companies were not advised on time of the availability of the Small Community Air 

Service Development Program. At t.hls t.ime, Cape Air do not have the proper equipment to fly to the~e Islands, and this would jList put a 

burden and dilute our thin margin of operational revenue. Franciaco Torres Pre~ident Air Flamenco 

~ 

Home About Us Hesourc€s Help Connect Wjth 

~~-VJ!nced Seercl'! 

~~e By Categ2!Y. 

Brq,l(liSe By Topics 

Le~ro. 

ht1;p:/lwww 

eR~l~xnaklng Pr®i<!QJ 

New_srpom 

~encj~$. 

~.911 & Recoonltlol) 

Enhancements & Fb:es 

Site Da_!~ 

Reg\llc.\i()fY Agcnd:; 

Agency Rc~poric, Required 

bV St::ltltte 

~@_utive Order j_~_866 

.§~!Jcutive Order RS63 

Developers!"'~ 

How to use B,e..gulatlons.gov 

FAQ.~ 

g;j9ssary 

IJZ!l~ 

Questions 

fr_ivacy Notice 

User Notice 

Acce$Sibllltv~~grrement 
09/27/2012 15:09 

SU7.annc Hebert (Puerto Rico) 

7872753845 L A IRIZARRY ASSOCIA PAGE 05/08 

Pasr-~ l 

Regulations.gov will undergo scheduled maintenance and will be unavailable Saturday, September 29, from 8:00a.m. until 8:00p.m. (EDT). 

regulations:9oV 

1\lDur \l<eJ(.'? lrn F••.d!':~ll:l..,!:fi.~l~~--r\li'll<!ng 

,.-

Document Details 

Suzanne Hebert (Pn..~~erto Rico) 

Document 10: DOT-OST-2012.()069-0~02 Document Type: Otne,r 

Docl<et 10: DOT- OST -:w-12-0069 

VIew Document: ~ 

liC'~· 

Comment: 

Help ... 

· .. : ~ .. ·.~ ... :: ..... ·. '\- -.~·:. 

To whom it may conce~rn: I am e resident of the Island of Culebre P.R. I heard about this situation the day before last and am extremely 

concerned for two reasons 1 )The agency did not consider our existing small commuter airline Like Air Flamenco. 2)1n an Island so smell 

bringing in another carrier would be completely irresponsible and hurtful to this Island. The current GovernmMt of Puerto Rico does not 

represent the majority of what residents want or need. Which is the preservation of it's natural resources and sustainable 

development. They want to crack this Island open and profit from it. Ruining t.he quality of life we now enjoy. If this Agency truly wants to 

help wouldn't It make more sense to help our local carrier Air Flamenco pay th@ expensive fees of operlirting from LU/$ Munoz Marin 

Airport? So they can offer a better service to Tourist's? I cen not help wonder, who does this agency ... truly want to Help?? 

'--

Home 

!? .. ~~T"Ctl 

6.dvl)nced Searet~. 

Br~" Rv l":<>t.,,.,. • .,.\1 

a~ 

Learr 

Par 

http://www 

About Us 

eRul~~king Progrnm 

tl~~ 

A..-tJ>n~lo" 

ResouTces 

Site D.2t~ 

Regul~'tory Agf:!ncia 

Help 

liowto use 

~iis.g~l( 

.E~ 

Connect With 

: .. ·:~~j~ 

~ 
09/27/2012 15:09 7872753845 

M. l Stark (Culebra, Puerto RiC<!) 

L A IRIZARRY ASSOCIA PAGE 07/08 

Pns~ 1 

Reguletions.gov will undergo schedulad maintenance and wm be unavailable Sat~trday, September 28, from 8;00 a.m. until 6;00 p.m. (EDT). 

tegulahons:fc>V 

'it-wr \l<lkr. l11 r~dnal P~~~r.lo.-Hl~aikirn1l 

,....... 

Document Details 

M. J. Stark (Cu~ebra, Puerto Rico) 

Vl~w Document: ~· 

l('i 

Comment: 

~ 

To whom It may concern: While I have friends on 61ock Island, I cen only speak concerning Culebra, Puerlx> Rico. The Puerto Rican 

Tourism Department is not the same entity ilS one might find on the mainland, as it is totally a l'ri~r,;~te organl:tatinn with pol!tlcel tle:s. The 

ties in thlo; case are to the currant Governor, who Is hugely pro big business and big development, hand in hand with some of the largest 

investors In Puerto r<ico. Culebra, while a part of Puerto Rico, is 2 very separate place, It is known and loved for its small t.own feel and 

lack of large development tourism projects. It only has a small footprint as to the number of tourists i1: can support and not be a domiment 

to the locals, i.e. water. roads. etc. The Cllrrent airlines serve our community well, as well as being locally owned and involved as t'O the 

community. While the slight lnconvenjence traveling to Isla Grande rather than leaving directly from SJU might be eased, the benefit is not 

worth the prlca. Culebra is being asked to foot the bill ae if you are doing us a favor. when the Javor is only ~o ben€fit tile airline and its 

investors, detracting from our local economy, both financially and physically. If this Is wanted by the local Culebrense, let them have a say 

in their fate, rather then letting the PR Tollrism Depenment and Governor Fortune decide for us. Smell, sustaineble tourism growth. yes. 

What is being proposed and its potential damage to our Island? No. Thank you for your con$id0ration. Assumed financial rewerds that 

could forever change our island for the worse is not a worthy goli!l, whereas the simple beauty and passion found on Clilebra should be left 

to be discovered anew by tourisl'3 forever. And that Is priceless. Regards, MJ Stark Smell business owner/Culebra 

Home About Us Resources Help Connect With 

Advan~ Seareh 

~B_y Category 

Brows~Jly Topics 

Leam 

http:/~. 

eRulem.~lng F'rog~m 

News.rp_om 

Agenct~s. 

Award~ & Recognition 

Enhaneem~!lts & FiXe$ 

Site Q..~il. 

R.f:!gulat()ry Agen<:l'" 

1\genr.;y f-~6~potts Req11lred 

by Sbt11k~ 

E_xecutive Ord~2666 

§_~~utive Order 1)563 

Develop_!;!_n; Be~<~ 

How!_o_f1se 

j:;:egulatiohs,g.QY. 

fAQs 

.l,?lossary IJ 

lu 

lii1 

~ &edbaclt ~rul. 

~ 

Prlvac,Y. Notice 

User Notice 

8!=sessibility St.§t~.roent 
09/27/2012 15:09 7872753845 

.liric3 .RU51SIO- (Objection of Cape Air) 

L A IRIZARRY ASSOCIA PAGE 08/08 

Ps.8e 1 

Regulations.gov will undergo scheduled maintenance and will be unavailable Saturday, September 29, from 8;00 a.m. until 8:00 p.m. (EDT). 

~ur Mole~ ;., r.~d~ml O~d~lon· Mt~~ln·~ 

,..... 

Document Details 

Erica Russo ~ (Objection of Cape Air) 

Docui"'Ont ID: DOT·OST-2012-0069.0213 Document Typo: Other 

Docket ID: DOT·OST 2012-006~! 

VI- Document: ~.>Af!,.,l\t1 

~~~ 

Comment~ 

Help ... Re~ourc.es .,. Fee~l:>ack and Questions 

, .... , __ .... -~· ·- .. \ .-·-·.· 

I am strongly against an airline from out of state (Cape Air of Mess) getting the business contr:act from RIAC to opera~ betwean two 

airports in Rl. specifically I F Green and Block Island. 0~1r state already has an airline that flies in and out of Block Island. :servicing the 

many residents and visitors on a daily basis. Why would Rl pay another state's business to conduct business in our own state. where we 

already have an airline set up and riJnning be01utifully? Where Is the logic? Alii can say le this concept Is most. disappointing in more ways 

than one and seems to be profiting !llomeone else, other 1:han our own statQ or island businesses. Whet gives? Rethink this, pleese. 

~ 

Home 

Sea reb 

Advanced Seereh 

Browse By Category 

BrOW->-F\ Rv Trmfm 

Lean 

Par 

http://www 

About Us Resoull"ces H.elp ConT'II(;-)CI: With 

eRulemaklng Program Site Data How to use 

NeiJ\/Sroom f·":cqul:,l!ory t\QCt1da Regulatlons.gov 

Agencies Agr.mcv RC!ports Rc:quincd ~ 

A1illl'ml!'; P. ~P.r:onnltlnn by Statute Glossary 

Federal Register Reqinfo Thomas USA.go\1 E-Gov .Qpengov 

Vl