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Office of the Secfetary 

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1 200 New Jersey Avenue, SE 

Washingron, DC 2059 0 

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February 18,2011 

Via E-mail 

The Honorable John Chizek 

Mayor of the City of Chadron 

234 Main St 

P.O. Box 390 

Chadron, NE 69337 

Dear Mayor Chizek: 

I would like to update you on the essential air service situation at Alliance and 

Chadron and give you an opportunity to submit any comments if you wish. As you 

know, by Order 2011-1-10, January 14, 2011, the Department solicited proposals from all 

interested air carriers to provide service at Alliance and Chadron, Nebraska, for a new 

two-year term beginning June 1, 2011. At this stage, we would normally ask for your 

preferences for various carrier and service options. However, in response to that order, 

Great Lakes Aviation (Great Lakes), 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 Great Lakes' proposal may be accessed 

online Federal Docket Management System (FDMS) at: http://www.regulations.gov/ by 

entering DOT-OST-2000-8322. 

Great Lakes proposes to continue its two-round-trip-a-day service pattern at Alliance 

and Chadron for an armual subsidy of $2,217,401. Service would be operated with 19-

seat Beechcraft I900D aircraft. We are currently reviewing Great Lakes' compensation 

requirement. 

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

reflect the average local fare Alliance passengers would actually pay, but, rather, reflect a 

prorated portion of the total ticket price, e.g., the Chadron - Denver of a Chadron -

Denver - Washington, D.C. ticket that the subsidized carrier would realize. Also, the 

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

ticket taxes, and Passenger Facility Charges. Of course, can'iers have the discretion to 

charge fares they deem appropriate, and the passenger fares presented in their proposals 
- 2 -

have been developed for subsidy rate computation puiposes only. Based on the cost 

elements incorporated in the carrier's computation summaries. Great Lakes 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 you may have as soon as possible, but in any 

case no later than March 17, 2011. 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.iJov 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