Schlemmer, Kevin (OST) 

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From: 

Sent: 

To: 

Cc: Andrew Bonney; Devany, Dennis (OST); kvtourism @cableone.net 

Subject: 

Attachments: 

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EPAS proposJal fNor Kirksfville /li!Z 12 p 3

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Please find the following letter from Dennis DeVany. 

Regards, 

Kevin 

********************************************************** 

To Whom it Concerns: 

I would like to update you on the Essential Air Service (EAS) situation at Kirksville, and give you an opportunity to 

submit any comments if you wish. As you know, by Order 2012-5-12, May 9, 2012, the Department solicited proposals 

from all interested air carriers to provide service at Kirksville, along with several other communities, for a new term 

beginning October 1, 2012. Proposals for service to Kirksville were due June 7, 2012. 

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

response to that order, Hyannis Air Service, Inc. dba Cape Air ("Cape Air"), the incumbent, 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 Cape Air's proposal may be accessed online via the Federal Docket Management System at: 

http://www.regulations.gov/ by entering DOT-OST-1997-2515 in the Search box. It is also attached to this e-mail. 

Cape Air proposes to continue its three daily round trips (21 per week) to Lambert-St. Louis International Airport for 

an annual subsidy of $1,629,248, over a four-year term. Service would utilize Cessna 402 aircraft and would continue to 

operate under a codeshare agreement with American Airlines, as well as interline agreements with other airlines. We 

are currently reviewing Cape Air's compensation requirement. 

Please note that the average passenger fares shown in the proposal do not necessarily reflect the average local fare 

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

-St. Louis of a Kirksville- St. Louis- Washington, D.C. 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, Cape Air 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. 

We ask that you submit any comments by June 27, 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. 

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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 

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