&

us . Deportnwn t o f TktmsportatkN i Offic e o f th e Secfetar

y o f Tronsporrotio n 

### /'.'li'UtN T OF iJ'PORWIO N 1 20 0 Ne w Jerse yAvenue , S E Washingron , D C 2059 0 r-~ , 

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February 18,201 1 Vi aE-mai l Th e Honorabl e Joh n Chize k Mayo r o f th e City o f

Chadro n 23 4 Mai n S t P.O . Bo x 39 0 Chadron , N E 6933 7 Dea r Mayo r Chizek : I woul dlik e t o update yo u o n th e essentia l ai r servic e situatio n a

t Allianc e an d Chadro n an dgiv e yo u a

n opportunit y t o submi t

any comment s i

f you wish . A s you know , b y Orde r

2011-1-10 , Januar y 14 , 2011 , th e Departmen t solicite dproposal s fro mal l intereste dai r

carrier s t o provid e servic e a t Allianc e an dChadron , Nebraska , for ane w two-year termbeginnin g Jun e 1 , 2011 . At this stage , w e woul dnormall y as k fo r you r preference s for

variou s carrie r

an dservic e options . However , i n respons e t o that order , Great Lake s Aviatio n (Great

Lakes) , th e incumbent , wa s th e onl y carrie r t o submi t

a proposal . Nonetheless , w e wan t t o giv e yo u a n opportunit y t o submi t any fina l comment s fo r th e recor dtha t

you may have . A cop y o f Grea t Lakes ' proposa l may b e accesse d onlin e Federal Docke t

Managemen t

Syste m(FDMS ) at : http://www.regulations.gov / b y enterin g DOT-OST-2000-8322 . Great Lake s propose s t o continu e it s two-round-trip-a-da y servic e patter n a t Allianc e an dChadro n for

a n armua l subsid y o f

$2,217,401 . Servic e woul db e operate dwith 19

- seat Beechcraf

t I900 D aircraft . W e ar e currentl y reviewin g Grea t Lakes ' compensatio n requirement . Pleas e not e that

th e averag e passenge r

fare s show n i

n th e proposa l d o no t

necessaril y reflec t th e averag e local far

e Allianc e passenger s woul dactuall y pay , but , rather , reflec t a prorate dportio n of

th e total ticke t

price , e.g. , th e Chadro n - Denve r o f aChadro n - Denve r - Washington , D.C . ticke t that th e subsidize dcarrie r

woul drealize . Also , th e far e show n i s ne t

o f certai n charge s suc h a s Federa l transportatio n security fees , excis e o r ticke t taxes , an dPassenge r

Facility Charges . O f

course , can'ier s hav e th e discretio n t o charg e fare s the y dee mappropriate , an dth e passenge r fare s presente di

n thei r proposal s- 2 -

hav e bee n develope dfo

r subsid y rat e computatio n puipose s only . Base do n th e cos t element s incorporate di

n th e carrier' s computatio n summaries . Grea t Lake s woul dhav e t o realiz e passenge r

fare s comparabl e t o th e average s show n i n thei r proposal s i

n orde r t o achiev e break-eve n o r

profitabl e operation s withou t subsidy . You shoul dals o not e that th e schedul e tha

t th e carrie r

ha s submitte di s illustrativ e only , an dthat

the y may mak e schedul e change s t o reflec t changin g conditions , e.g. , t o bette r mee t shiftin g connectin g bank time s a t th e hub . Th e Departmen t expect s subsidize dai r

carrier s t o maintai n well-time dan dwell-space dflight s i n orde r t o ensur e full compensation . W e as k that yo u submi t

an y comment s yo u ma

y hav e a s soo n a s possible , bu t i n an y cas e n o late r

than Marc h 17 , 2011 . W e wil l carefull y conside r you r comment s before w e submi t arecommendatio n t o th e Assistan t Secretar y for

adecision . Shoul dyou hav e an y question s o r

nee dadditiona l tim e t o draf t you r comments , pleas e let

u s know . Pleas e sen dyou r

comment s vi ae-mai l t o EAS@dot.iJo v o r b y fa x t o 202-366-7638 . I

f yo u hav e an y questions , pleas e feel fre e t o contac t Kevi n Schlemme r

o f m y staf f a t kevin.schlemmer@dot.go v o r 202-366-3176 .

Sincerely ,

Denni s J . DeVan y Chief , Essentia l Ai r

Service Division , X-5 3 Offic e o f Aviatio n Analysi s