Ogdensbiii'g Bndge & Fort Authority 

One Bridge Plaza, Ogdensburg, New York 13669 

Phone 315-393-4080 - Fax 315-393-7068 

August 20, 2010 

Mr. Dennis J. DeVany, Chief .^^ Q-QE ^ 

EAS & Domestic Analysis Division, Office of Aviation Analysis ~ ^^ ^ 

U.S. Department of Transportation, Office of the Secretary of Transportation -Q ^':£; 5 

1200 New Jersey Avenue, SE O^ ^ 

Washington, DC 20590 ^ ^ ^ 

o~ 

RE: Docket No. DOT_OST_1997-2842 

Dear Mr. DeVany: 

Northern New York State residents deserve reliable Essential Air Service (EAS). By public 

resolution the Ogdensburg Bridge and Port Authority recommends that the U.S. Department of 

Transportation select Cape Air's Option 3 EAS proposal for a four-year term at a cost of 

$1,621,825 per year for EAS service to Boston via Albany. 

U.S. Department of Transportation evaluation criteria for selecting a carrier to provide 

subsidized EAS service, 49 U.S.C. 41733 (c) 1, considers four factors: Service reliability. 

Contractual and marketing arrangements with a larger carrier at the hub. Interline 

arrangements with a larger carrier at the hub, and Community views. Consolidated 

Appropriations Act, 2008 Public Law 110-161 considers subsidy requirements (cost). 

In addition to overwhelming public support for Cape Air in the Ogdensburg market (comments 

attached) expressed through letters, public comment, and community advocacy, the 

Ogdensburg Bridge and Port Authority has found Cape Air to be a reliable EAS carrier with a 

superior performance record. Cape Air has rebuilt and expanded the passenger base which was 

all but destroyed by the previous financially troubled EAS carrier. Big Sky Airlines. As the record 

indicates, the demand for regional air travel has increased due to Cape Air's superior 

performance. 

In performing due diligence utilizing the 49 U.S.C. 41733 (c) 1 and Consolidated Appropriations 

Act, 2008 Public Law 110-161 criteria considering cost. Cape Air's bid is approximately $1.3 

million below that of the other carriers for Ogdensburg. It should also be noted that Gulf 

Stream International Group, Inc., SEC Form 10-K filed April 15, 2010 raises substantial concerns 

about the continued operation and financial stability of Gulf Stream International. Relevant 

portions of the recent SEC 10-K include: 
• "[TJhe company currently leases from RACC twenty-one (21) Beech 1900D Airliners. The default 

resulted as a result of the Company's failure to make its scheduled lease payments for the month of 

February 12010}... Failure to make such a payment would have given RACC the right to terminate the 

Lease Agreements, thereby orohlbitlna the Comoanv from using such airolanes." SEC- lOK p. 16. 

Emphasis added 

• Gulf Stream states that "Expansion of operations could result in operating losses... Similar material 

Increases in the scope or scale of our operations could lead to integration difficulties, which could result 

in short and/or long term operating losses." SEC 10-K P. 19 

• ''lT]he Company is also acth/ely seeking short-term debt financing to meet its near-term liquidity 

requirements..." SEC -lOK p. 17 

• "[Gulf Stream International] is not In compliance with NYSE Amex continued listing standards [and has 

until] November 12,2010 to regain compliance. [Gulf Stream International] may be subject to delisting 

proceedings. In the event [Gulf Stream's] common stock was delisted by the[NYS£] Exchange, [Gulf 

Stream International] would be In breach of a covenant of [their] loan and security agreement 

[resulting in accelerating] the maturity of [Gulf Stream's] secured original discount debenture." SEC 

10-K p. 27. 

The SEC 10-K statements made by Gulf Stream International generate significant concerns 

regarding the ability of Gulf Stream to continue operations for the duration of an EAS contract. 

As a privately held business, Cape Air generates no similar concerns, is financially stable owning 

its own aircraft. A stable EAS service is essential to the economic vitality of the region which it 

serves. 

Essential Air Service users deserve reliable service at reasonable subsidies, low fares, 

provided bv a financially stable carrier. The Ogdensburg Bridge and Port Authority 

recommends that the U.S. Department of Transportation select Cape Air's Option 3 EAS 

proposal for a four-year term to provide the EAS service so vital to our community. 

Based on U.S. DOT evaluation criteria the Ogdensburg Bridge and Port Authority recommends 

U.S. DOT select Cape Air Option 3, four year agreement, as the EAS provider for Ogdensburg 

lnternat|ional Airport based on service reliability, interline, overall cost, and community input 

factors. Further, Cape Air Option 3 provides additional service to Boston for an incremental 

cost of $34 versus the stand-alone Albany option. This provides the Ogdensburg passengers 

with the maximum number of flights at 3X/day, retains the intra-state link with Albany, and 

provides the maximum number of connections at both Albany and Boston hubs. 

Should you require additional information please contact me directly for more information. I 

can be reached at 315-393-4080 ext 225 or by email at wadavis^oedensport.com. Thank you. 

i 

Sincerely, 

Wade A. Davis, 

Executive Director 

Ogdensburg Bridge & Port Authority 
OGDENSBURG BRIDGE & PORT AUTHORITY 

AUGUST 19, 2010, BOARD MEETING 

2) Approva l of F,3.'?eul i-.i^ Air Scrvj ^ •.ti__ Propof;a I -iccorarciendation 

REPORT: 

The rjnitori States Departrt.enr. a^ Trarspor-ar. J on Lhrouqn Docket DOr-OST-1997-2g42 

.solj cited new proposals to provide Lssential Air Service.^, to Mas.= ena, Ogdensburg, and 

Watertown comiriencirig on October 1, 2010. Fiooosais were received froir Cape Air, 

Charter Air Transport, and GU-LI oLi earn Internat ioral Group. Following is a summary of 

those proposals: 

Provider 

Cape Air 

Option 1.2 

Cape Air 

Option 3 

Charter Air 

Transpor t 

Gulfstrearr. 

In-ernational 

Group 

Service/ 

Destination 

Direct service 3x/day 

to Albany 

Direct service 3x/day 

to Boston via Albany 

"milk run" 2x/day 

service to JEK (or 

Newark) via ART 

Direct service 2x/daY 

(excl. Sunday) to BOS 

OGS 

Million 

/yr. 

$1 .5 

$1.6 

$2.9 

$2.8 

All Airports 

Million/year 

$4.6 

$4.<3 (4 yr.) 

$4.9 

$4.4 (4 yrs.) 

$4.6 

$7.6 

Fare 

$57 

$57 

$91 

$79 

$70 

one 

one 

one 

one 

one 

way 

way (ALB) 

way (SOS) 

vvay 

way 

The United States Department of Transportation's evaluation criteria lor selecting a 

carrier to provide subsidised essential air service, 49 U.S.C. 41733(c)1, considers 

four factors: service reliability, contractual and martcer.ing arrangements with a 

larger carrier at the hub, interline arrangements with a larger carrier at the hub, and 

community views. Consolidated Appropriations Acz, 2008 Public Law 110-161 considers 

subsidy requirements (costs) . 

Co.Tjnunity/publi c comments are being sclicitea ano accepnzed until August 20, 2C1C. 

The Facilities Committee met on August 19, 2C10, and reviewed the complete proposals as 

submitted and recommends the Authority make recoimnendation to the U.S. Departinent of 

Transportation to accept the proposal (Option 3) by Cape Air to provide essential air 

service at the Ogdensburg International A.irport based on the evaluarion criteria 

utilized by the United States Department of Tra.asportation. 

RESOLUTION: 

RESOLVED, that the Ogdensburg Bridge and Port Authority encourage.^ the United States 

Department of Transportation to select Cape Air Option 3 to provide essential air 

service to the Ogdensburg International Airport effective October 1, 2010, based on 

evaluation criteria set forth in Docket DOT-OST-1997-2842; and be it, 

FURTHER RESOLVED, that the Ogdensburg Bridge and Port Authority encourages the United 

States Department of Transportation to also consider Cape Air Option 3 which provides 

additional service to Boston at an incremental cost of $34 versus the stand-alone 

Albany option, resulting in maximum number of flights available at Ogdensburg at three 

tim.es daily while at the same time retaining intra-State link with Albany and provides 

the maximum Aumber of connections at both Albany and Boston hubs. 

PREPARER; Tisha Havnes 

MOTION PASSED BY: Steven J. Barlow 

SECONDED BY: Mary M. Farley 

APPROVED BY:_ 

Unanimous: Yes 

Abstained By: 

Not: