u.s. Department of 

Transportation 

Office of the Secretary 

of Transportation 

July 8, 2010 

The Honorable Sonja L. Hawkins 

Mayor of the City of Oil City 

21 Seneca St. 

Oil City, PA 16301 

Dear Mayor Hawkins: 

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1 200 New Jersey Avenue, SE 

Woshington, DC 20590 

I would like to update you on the essential air service (EAS) situation at Oil 

CitylFranklin and give you an opportunity to submit any comments if you wish. In 

anticipation of the end of Gulfstream's current 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 Oil CitylFranklin. In response to that order, we 

received proposals from two carriers: Gulfstream, the incumbent, and Charter Air 

Transport. 

Copies of the proposals may be accessed online through the Federal Docket 

Management System (FDMS) at: http://www.regulations.gov/by entering "DOT-OST1997-2523" in the "Enter Keyword or ID" field. 

Gulfstream proposes to continue its 18 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 $915,101. This assumes Oil CitylFranklin's continued eligibility in the EAS program, 

which the Department is reviewing in the context of the proposals received from both 

carriers and any comments you provide on behalf of the community. All service would 

be operated as Continental Connection, utilizing Beech 1900D aircraft. We are also 

currently reviewing Gulfstream's compensation requirement. 

Charter Air Transport proposes to operate 12 nonstop round trips per week to 

Pittsburgh utilizing 19-seat Jetstream 32 aircraft, for an annual subsidy of $1,375,684. 

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 a recommendation 

on the carrier-selection issue to the Assistant Secretary for Aviation and hlternational 

Affairs. 
- 2 -

Please note that the average p~s5enger f<lres shown in each proposal do not necessarily 

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

prorated portion of the total ticket price, e.g., the Oil CitylFranklin - Cleveland portion of 

an Oil CitylFranklin - Cleveland - Seattle/Tacoma 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, carriers have the discretion to charge fares they deem appropriate, and the 

passenger fares presented in their proposals have been developed for subsidy rate 

computation purposes only. Based on the cost elements incorporated in the carrier's 

computation summaries, Gulfstream 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 schedules that the carrier has submitted are 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 request that you review each proposal and service option and submit any 

comments you may have before we submit a recommendation to the Assistant Secretary. 

As you are aware, Oil CitylFranklin is well over the statutory $200 subsidy per passenger 

cap, and the community's continued eligibility remains uncertain. As a result, your 

comments should address the features of the various carrier proposals that you believe 

will result in increased passenger levels to lower the subsidy per passenger below the 

$200 cap. We ask that you submit any comments 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 recommendation to the Assistant Secretary for a decision. We appreciate 

that there are significant issues for you to consider, so if you have any questions or if you 

find that you need additional time to draft your comments, please let us know. 

Please send your comments via e-mail to EAS@dot.gov 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. 

Similar letters have been sent to the civic officials of the other EAS communities at 

issue here. 

Sincerely, 

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Dennis J . DeVany 

Chief, Essential Air Service Division, X-53 

Office of Aviation Analysis