Before the United States Department of Transportation

Washington, DC

December 2,2013

Essential Air Service at:

DODGE CITY, KANSAS

GREAT BEND, KANSAS

HAYS, KANSAS

LIBERAL, KANSAS

under 49 U.S.C. 41731 et.seq.

Docket OST -1998-3502

Docket OST-1998-3496

Docket OST -1998-3497

Docket OST -1998-3498

This document contains the response of Great Lakes Aviation, Ltd. to Order Requesting

Proposals 2013-11-2.

Great Lakes Aviation, Ltd. is pleased to submit this proposal to provide essential air

transportation to these four Kansas communities. This proposal is being submitted as an

"inseparable package". Per the instructions in the Order, Great Lakes has prepared this

proposal with the expectation that this will be our final and only proposal.

The proposed attached nonstop schedules for Dodge City, Hays and Liberal have been

designed to significantly increase seating availability for each of these markets.

Great Lakes' proposal contemplates conveniently timed connecting services to our code share

partners United and Frontier at our Denver hub. Our code share agreements will give these

Kansas communities the greatest competitive opportunity available in the Rocky Mountain

Region. Additionally, Great Lakes maintains interline ticketing and baggage agreements with

American Airlines, Delta Airlines, Frontier Airlines, United Airlines and U.S. Airways. All of which

will offer passengers traveling to and from these communities supplemental access to the

domestic and international air transportation system.

This proposal contemplates the use of pressurized 19 seat Beechcraft 1900D aircraft, which'

Great Lakes has a long history of operating.

Questions and comments may be referred to:

Michael Matthews

Chief Financial Officer

Great Lakes Airlines

1022 Airport Parkway

Cheyenne, VVY 82001

(307) 432-7030
Table of Contents:

Proposal Subsidy Passengers Average

Service Point(s) Hub Served Round Trips Equipment Requirement Forecast Fare Departures Dept Rate

DODGE CITY, KANSAS DEN 3 19000 $2,339,131 . 15,000 $128.75 1,822 $1,283.83

non-stop.

GREAT BEND, KANSAS DEN 2 19000 $1,975,110 3,000 $128.95 1,211 $1,630.97

one-stop

HAYS,KANSAS DEN 3 19000 $1,699,520 22,000 $122.07 1,822 $932.78

non-stop

LIBERAL, KANSAS DEN 3 19000 $2,236,180 15,000 $128.09 1,822 $1,227.32

non-stop

$8,249,941 55,000 6,677

Traffic increases forcasted for all four communities in this proposal are based on the elimination of historical competition for seats.

Great Bend will continue to receive one-stop service but it will be scheduled over McCook, Nebraska which will provide substantialy more available seats.
Great lakes Aviation, ltd.

Annual Compensation Requirements for Essential Air Service at

Dodge City, Kansas to Denver, Colorado (DEN)

Three Round Trips - B1900

97.0% completion factor -

Departures:

Block Hours:

Revenue Passenger Miles:

Available Seat Miles:

1,822

2,550

4,380,000

10,108,456

Operating Revenues:

Passenger: DDC.DEN 15,000 psgrs at $128.75 $1,931,250

Other: (at 0.62% of passenger revenue) $11,974

Total Operating Revenues: $1,943,224

Operating Expenses:

Direct: Aircraft and Hull Insurance

Fuel and Oil

Flying Operations

Maintenance

$365,710

$1,254,885

$502,962

$764,369

Total Direct Expenses:

Total Indirect Expenses:

Total Operating Expenses:

(

Operating Loss

Profit Element (5.0% of Total Operating Expenses)

Annual Compensation Requirement:

No Upline Scheduling Restrictions

$2,887,926

$1,190,507

$4,078,433

($2,135,210)

$203,922

$2,339,131
Great Lakes Aviation, Ltd.

Annual Compensation Requirements for Essential Air Service at

Great Bend, Kansas to Denver, Colorado (DEN)

Two Round Trips - 81900

97.0% completion factor

. Departures: 1,211

Operating Revenues:

Passenger: GBD-DEN 3,000 psgrs at $128.95 $386,850

Other: (at 0.62% of passenger revenue) $2,398

Total Operating Revenues: $389,248

Operating Expenses:

Direct: Aircraft and Hull Insurance

Fuel and Oil

Flying Operations

Maintenance

$337,960

$579,634

$218,936

$406,994

Total Direct Expenses:

Total Indirect Expenses:

Total Operating Expenses:

Operating Loss

Profit Element (5.0% of Total Operating Expenses)

Annual Compensation Requirement:

All service provided one-stop to Denver

No Upline Scheduling Restrictions

$1,543,524

$708,246

$2,251,770

($1,862,522)

$112,589

$1,975,110
Great Lakes Aviation, Ltd.

Annual Compensation Requirements for Essential Air Service at

Hays, Kansas to Denver, Colorado (DEN)

Three Round Trips - B1900

97.0% completion factor

Departures:

Block Hours:

Revenue Passenger Miles:

Available Seat Miles:

1,822

2,444

6,534,000

10,281,546

Operating Revenues:

Passenger: HYS-DEN 22,000 psgrs at $122.07 $2,685,540

Other: (at 0.62% of passenger revenue) $16,650

Total Operating Revenues: $2,702,190

Operating Expenses:

Direct: Aircraft and Hull Insurance

Fuel and Oil

Flying Operations

Maintenance

$337,960

$1,296,010

$482,055

$746,056

Total Direct Expenses:

Total Indirect Expenses:

Total Operating Expenses:

Operating Loss

Profit Element (5.0% of Total Operating Expenses)

Annual Compensation Requirement:

No Upline Scheduling Restrictions

$2,862,080

$1,330,025

$4,192,105

($1,489,915)

$209,605

$1,699,520
Great Lakes Aviation, Ltd.

Annual Compensation Requirements for Essential Air Service at

Liberal, Kansas to Denver, Colorado (DEN)

Three Round Trips - 81900

97.0% completion factor

Departures:

Block Hours:

Revenue Passenger Miles:

Available Seat Miles:

1,822

2,429

4,185,000

9,658,422

Operating Revenues:

Passenger: LBL-DEN 15,000 psgrs at $128.09 $1,921,350

Other: (at 0.62% of passenger revenue) $11,912

Total Operating Revenues: $1,933,262

Operating Expenses:

Direct: Aircraft and Hull Insurance

Fuel and Oil

Flying Operations

Maintenance

$365,710

$1,210,100

$479,096

$743,464

Total Direct Expenses:

Total Indirect Expenses:

Total Operating Expenses:

Operating Loss

Profit Element (5.0% of Total Operating Expenses)

Annual Compensation Requirement:

No Upline Scheduling Restrictions

$2,798,370

$1,172,527

$3,970,897

($2,037,635)

$198,545

$2,236,180
••• Sample Schedules •••

••• [DDC] DODGE CITY, KANSAS •••

••------------------ D E F'A FlT LJFlE S --------_•••••••••••

FLT DF'T AFlFl TO EQF' FFlEQ

-------••--------••• A FlFl I V A L S ----_•.•.••_--------

FLT EQF' FFlEQ FFlOM DF'T AFlFl

7181 725 749 DEN BE1 x7 non stop

7182 BE1 x67 DEN 1015 1239 non stop

7185 1255 1319 DEN BE1 X6 non sJoP

7184 BE1 Daily DEN 1345 1609 non stop

7187 1625 1649 DEN BE1 X6 non stop

7188 BE1 x6 DEN 1745 2009 non stop

No LJplineScheduling Flestrictions

••• [GBD] GFlEAT BEND, KANSAS •••

---------••••••_----D E F'A FlT LJFlE S -----_•••••••_------

FLT DF'T AFlFl TO EQF' FFlEQ

•••_._--------------A FlFlI V A L S •••••••-------------

FLT EQF' FFlEQ FFlOM DF'T AFlFl

7255 1340 1453 DEN

7254 BE1

7251 610 723 DEN BE1

BE1

X7

X6

one-stop

one-stop

7258 BE1

X7

X6

DEN 1015 1325

DEN 1730 2040

one-stop

one-stop

No LJplineScheduling Flestrictions
••• Sample Schedules •••

••• [HYS] HAYS, KANSAS •••

-------------------- ClE:F' A Ft l" LJFt E:S --------------------

FLl" ClF'l" AFtFt l"0 E:QF' FFtE:Q

-----------._---_ ••• A Ft Ft I V A L S -----------------._-

FLl" E:QF' FFtE:Q FFtOM ClF'l" AFtFt

7271 645 710 DEN BE1 x7 non stop

7272 BE1 x67 DEN 1055 1311 non stop

7275 1330 1355 DEN BE1 X6 non stop

7274 BE1 Daily DEN 1410 1626 non stop

7277 1645 1710 DEN BE1 X6 non stop

7278 BE1 x6 DEN 1800 2016 non stop

No LJpline Scheduling Ftestrictions

••• [LBL] L1BE:FtAL,KANSAS •••

-------------------- ClE:F' A Ft l" LJFt E:S ---- •••-------------

FLl" ClF'l" AFtFt l"0 E:QF' FFtE:Q

------.-.----------- A Ft Ft I V A L S --------------------

FLl" E:QF' FFtE:Q FFtOM ClF'l" AFtFt

7151 720 740 DEN BE1 x7 non stop

7152 BE1 x67 DEN 1020 1240 non stop

7155 1300 1320 DEN BE1 X6 non stop

7156 BE1 Daily DEN 1400 1620 non stop

7157 1640 1700 DEN BE1 X6 non stop

7158 BE1 x6 DEN 1800 2020 non stop

No LJpline Scheduling Ftestrictions