## u.s. Departmentof Transportation OfficeoftheSecretary ofTransportation



### July 8,2010 The Honorable Gary Gilbert Mayor ofthe City ofDuBois City Hall 16 W. ScribnerAve. DuBois, PA 15801 Dear Mayor Gilbert: 1200 New Jersey Avenue, Sf Washington, DC 20590



### I would liketo update you on the essential air service (EAS) situation at DuBois and give you an opportunityto submit any comments ifyou wish. In anticipation ofthe end ofGulfstream's cunent contract on September 30,2010, the Department issued Order 2010-5-22, May 19,2010,to solicit proposals from all interested air carriers to provide EAS at DuBois. Atthis stage, we would normally ask for your preferences for various canier and service options. However, in response to that order, Gulfstream International Airlines, Inc. (Gulfstream), the incumbent, was the only canierto submit a proposal. Nonetheless, we want to give you an opportunity to submit any final comments for the record that you mayhave. Copies ofGulfstream's proposal may be accessed online through the Federal Docket Management System (FDMS) at: http://www.regulations.gov/byentering "DOT-OST2004-17617" in the "Enter Keyword or ID" field. Gulfstream proposes to continue its 24 round trips per week to Cleveland Hopkins International Airport, operating on a Cleveland

- DuBois

- Oil CitylFranklin

- Cleveland or a Cleveland

- Oil CitylFranklin

- DuBois

- Cleveland routing, for an annual subsidy of$2,228,996. This assumes Oil CitylFranklin's continued eligibility inthe EAS program, which the Department is reviewing. IfOil CitylFranklin is deemed no longer eligible to participate intheEAS program, Gulfstream proposes 18 nonstop round trips per week from DuBois to Cleveland, for an annual subsidy of$2,247,023. All service would be operated as Continental Connection, utilizing Beech 1900D aircraft. We are also·currentlyreviewing Gulfstream's compensation requirement. My purpose in writing to you at this time is to request any final comments you might have on the carriers' service and subsidy proposals before we submit (] recommendai·ion- 2 -

on the carrier-selection issue to the Assistant Secretary for Aviation and International Affairs. Please note that the average passenger fares shown in each proposal do not necessarily reflect the average local fare DuBois passengers would actually pay, but, rather, reflect a prorated portion ofthe total ticket price, e.g., the DuBois

- Clevelandportion ofa DuBois

- Cleveland

- Seattle/Tacomaticket that the subsidized carrier would realize. Also, the fare shown is net ofcertain charges such as Federal transportation security fees, excise orticket taxes, and PassengerFacility 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 computationpurposes only. Based onthe cost elements incorporated inthe carrier's computation summaries, Gulfstream would have to realize passengerfares comparable to the averages shown in their proposals in orderto achieve break-even orprofitable operations without subsidy. You should also note that the schedules that the carrierhas submitted are illustrative only, and that they may make schedule changes to reflect changing conditions, 

### e.g., to better meet shifting connecting banktimes at the hub. The Department expects subsidized air carriers to maintain well-timed and well-spaced flights in orderto ensure full compensation. We ask that you submit anycomments you may have as soon as possible, but in any case no later than July 30,2010. We will carefully consider your comments before we submit a recommendationto 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.gov orbyfax to 202-366-7638. If youhave any questions, please feel free to contact Kevin Schlemmerofmy staffat kevin.schlemmer@dot.gov or 202-366-3176. Similarletters havebeen sent to the civic officials ofthe other EAS communities at issuehere.

Sincerely, 

# (' " (] d**l)v~J, L!)~~**  

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