### Schlemmer, Kevin (OST)

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### Cc: Andrew Bonney; Devany, Dennis (OST); kvtourism @cableone.net Subject: Attachments: Ccomments_on the 1 EPAS proposJal fNor Kirksfville 

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## l ape Air K1rksvil e roposal_7 U 12.pd <.
Please find the following letterfrom Dennis DeVany. Regards, Kevin 

### ********************************************************** To Whom it Concerns:
Iwould like to update you on the Essential Air Service (EAS) situation at Kirksville, and give you an opportunityto submit any comments ifyou 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 dueJune 7, 2012.
Atthis stage, we would normally ask for your preferences forvarious carrier and service options. However, in response to that order, Hyannis Air Service, Inc. dba Cape Air ("Cape Air"), the incumbent, was the only carrierto submit

. a proposal. Nonetheless, we wantto give you an opportunityto submit any final commentsforthe record thatyou may

have. A copy ofCape 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 perweek) to Lambert-St. Louis International Airport for an annual subsidy of$1,629,248, over afour-yearterm. 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 thatthe average passenger fares shown in the proposal do not necessarily reflectthe average local fare Kirksville passengers would actually pay, but, rather, reflect a prorated portion ofthe total ticket price, e.g., the Kirksville -St. Louis ofa Kirksville- St. Louis- Washington, D.C. ticket thatthe subsidized carrierwould realize. In addition, the fare shown is net ofcertain charges such as Federal transportation security fees, excise ortickettaxes, and Passenger Facility Charges. Ofcourse, 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 Airwould have to realize passenger fares comparable to the averages shown in their proposals in orderto achieve break-even or profitable operations without subsidy.
You should also note thatthe schedule thatthe 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 atthe hub. The Department expects subsidized air carriers to maintain well-timed and well-spaced flights in orderto ensure full compensation.
We ask thatyou submit any comments by June 27, 2012. We will carefully consideryour comments before we submit a recommendation to the Assistant Secretary for a decision. Should you have any questions or need additional timeto draftyour comments, please let us know. 1Please send your commentsvia e-mail to EAS@dot.gov or by fax to 202-366-7638. Ifyou have any questions, please feel free to contact Kevin Schlemmer of my staffat kevin.schlemmer@dot.gov or 202-366-3176.

Sincerely, Dennis

### J. DeVany Chief, Essential Air Service Division, X-53 Office ofAviation Analysis

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