## Before the United States Department ofTransportation 

## 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 tothese four Kansas communities. This proposal is being submitted as an "inseparable package". Perthe instructions inthe 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 inthe 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 ofwhich will offer passengers traveling to and from these communities supplemental access tothe 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) 432-7030Table ofContents:

Proposal Subsidy Passengers Average

Service Point(s) Hub Served Round Trips Equipment Requirement Forecast Fare Departures Dept Rate DODGECITY, 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 inthis proposal are based on the elimination of historical competition for seats. Great Bend will continue to receive one-stop service but itwill bescheduled 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% ofTotal 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: (at0.62% 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% ofTotal 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% ofTotal 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: (at0.62% 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% ofTotal 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 LJFlES--------_ ••••••••••• FLT DF'T AFlFl TO EQF' FFlEQ -------••--------•••A FlFlIVA LS----_ •.•.••_-------- 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] GFlEATBEND, KANSAS •••

---------••••••_----D E F'A FlT LJ FlES-----_

••••••• _------ FLT DF'T AFlFl TO EQF' FFlEQ •••_._--------------A FlFlIVALS••••••• ------------- 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 Ftl" LJFtE:S -------------------- FLl" ClF'l" AFtFt l"0 E:QF' FFtE:Q -----------._---_ •••A FtFtIV 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 LJplineScheduling Ftestrictions

••• [LBL] L1BE:FtAL,KANSAS •••

-------------------- ClE:F'A Ftl" LJFtE:S ----•••------------- FLl" ClF'l" AFtFt l"0 E:QF' FFtE:Q ------.-.----------- A FtFtIV 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 LJplineScheduling Ftestrictions