Schlemmer, Kevin (OST) 

From: Schlemmer, Kevin (OST) 

Sent: Wednesday, April 11, 2012 3:59 PM 

To: 'Reed, Phil'; 'jon.lindlief@flyasa.com'; 'VanDerBellen, Alexander' 

Cc: Devany, Dennis (OST) 

Subject: FW: Request for comments 

Attachments: Silver Airways-WV-MS-AL proposal.pdf 

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From: Schlemmer, Kevin (OST) — r; j 

Sent: Wednesday, April 11, 2012 3:56 PM ~ 

To: •JERRYOSULL@aol.com'; 'info@lewisburg-wv.com'; 'wss34@suddenlinkmail.com' 

Cc: Devany, Dennis (OST); Mosley, Bill H. (OST); 'mbowman@gosilver.com'; Martin, Michael (OST) 

Subject: Request for comments 

Please find the letter from Dennis DeVany, below, regarding comments on the EAS proposal for Greenbrier/White 

Sulphur Springs, WV. 

Regards, 

Kevin 

To whom it Concerns: 

I would like to update you on the Essential Air Service (EAS) situation at Greenbrier/White Sulphur Springs 

("Greenbrier"), and give you an opportunity to submit any comments if you wish. As you know, by Order 2012-2-7, 

February 9, 2012, the Department prohibited the suspension of service at Greenbrier by Pinnacle Airlines and Atlantic 

Southeast Airlines, both doing business as Delta Connection, and solicited long-term proposals from all interested air 

carriers to provide service at Greenbrier. Proposals were March 16. On March 12, Silver Airways ("Silver") requested an 

extension to submit proposals to on or about April 10, 2012. The community did not object and we granted Silver's 

request. 

At this stage, we would normally ask for your preferences for various carrier and service options. However, in 

response to that order. Silver was the only carrier to submit a proposal. Nonetheless, we want to give you an 

opportunity to submit any final comments for the record that you may have. A copy of Silver's proposal may be 

accessed online via the Federal Docket Management System at: http://www.regulations.gov/ by entering DOT-OST2003-15553. It is also attached to this e-mail. 

Silver's proposal is an "all-or-nothing" proposal that requires the carrier to be selected at Greenbrier, as well as four 

other communities (three in Mississippi and one in Alabama). For Greenbrier, Silver proposes 12 nonstop round trips 

per week from November 1 through April 30, and 13 nonstop round trips per week from May 1 through October 31. The 

flights would operate to Atlanta Hartsfield Jackson International Airport ("Atlanta") with 34-passenger Saab 340B+ 

aircraft. The annual subsidy would be $4,144,149, or $ 4,241,523, depending on which option is selected for the other 

four communities. The higher annual subsidy is for a service option that proposes less overall flying for the fivecommunity package, thus it spreads the unit costs over fewer ASMs. The flights would be marketed independently as 

Silver Airways, utilizing its code-share relationship and distribution system with Island Air of Hawaii. Silver is also 

pursuing a "close Interline Relationship" with Delta Airlines, which would allow connecting itineraries involving Silver 

and Delta to appear on delta.com and potentially participating in Delta's SkyMiles® Program. We are currently 

reviewing Silver's compensation requirement. 
Please note that the average passenger fares shown in the proposal do not necessarily reflect the average local fare 

Greenbrier passengers would actually pay, but, rather, reflect a prorated portion of the total ticket price, e.g., the 

Greenbrier - Atlanta of a Greenbrier - Atlanta - Houston ticket that the subsidized carrier would realize. In addition, the 

fare shown is net of certain charges such as Federal transportation security fees, excise or ticket taxes, and Passenger 

Facility Charges. Of course, carriers have the discretion to charge fares they deem appropriate, and the passenger fares 

presented in their proposals have been developed for subsidy rate computation purposes only. Based on the cost 

elements incorporated in the carrier's computation summaries. Silver would have to realize passenger fares comparable 

to the averages shown in their proposals in order to achieve break-even or profitable operations without subsidy. 

You should also note that the schedule that the carrier has submitted is illustrative only, and that they may make 

schedule changes to reflect changing conditions, e.g., to better meet shifting connecting bank times at the hub. The 

Department expects subsidized air carriers to maintain well-timed and well-spaced flights in order to ensure full 

compensation. 

Pinnacle and Atlantic Southeast filed their termination notices on December 16, 2011, and the Department has an 

obligation to relieve the carriers of their obligation. We ask that you submit any comments no later than Mav 10. 2012. 

We will carefully consider your comments before we submit a recommendation to the Assistant Secretary for a 

decision. Should you have any questions or need additional time to draft your comments, please let us know. 

Please send your comments via e-mail to EAS@dot.gov or by fax to 202-366-7638. If you have any questions, please 

feel free to contact Kevin Schlemmer of my staff at kevin.schlemmer@dot.gov or 202-366-3176. 

Sincerely, 

Dennis J. DeVany 

Chief, Essential Air Service Division, X-53 

Office of Aviation Analysis