# Ogdensbiii' g Bndg e& For t Authorit y On e Bridg e Plaza , Ogdensburg , Ne wYor k 1366 9 Phon e 315-393-408 0 - Fa x315-393-706 8 Augus t 20 , 201 0 Mr . Denni s J . DeVany , Chie f.^ ^ Q-QE ^ EA S & Domesti cAnalysi s Division , Offic e o fAviatio n Analysi s ~ ^^ ^ U.S
. Departmen t o fTransportation , Offic e o fth e Secretar yo fTransportatio n - Q ^':£; 5 120 0 Ne wJerse yAvenue , SE O^ ^ Washington , D C 2059 0 ^ ^ ^ o ~ RE : Docke t No . DOT_OST_1997-284 2 Dea rMr . DeVany : Norther n Ne wYor k

Stat e resident s deserv e reliabl e Essentia l Ai rServic e (EAS)
. Bypubli c resolutio n th e Ogdensbur g Bridg e an d Por tAuthorit yrecommend s tha tth e U.S
. Departmen to f Transportatio n selec t Cap e Air' s Optio n 3 EA S proposa l fo ra four-yea rter m a ta cos to f $1,621,82 5 pe ryea rfo rEA S servic e t o Bosto n vi a Albany . U.S
. Departmen t o fTransportatio n evaluatio n criteri a fo rselectin g a carrie rt o provid e subsidize d EA

S service , 4 9 U.S.C
. 4173 3 (c ) 1 , consider s fou rfactors : Servic e reliability . Contractua l an d marketin g arrangement s wit h a large rcarrie ra tth e hub . Interlin e arrangement s wit h a large rcarrie ra tth e hub , an d Communit yviews . Consolidate d Appropriation s Act , 200 8 Publi cLa w110-16 1 consider s subsid yrequirement s (cost)
. I n additio n t o overwhelmin g publi csuppor tfo rCap e Ai ri n th e Ogdensbur g marke t(comment s attached ) expresse d throug h letters , publi ccomment , an d communit yadvocacy , th e Ogdensbur g Bridg e an d Por t Authorit yha s foun d Cap e Ai rt o b e a reliabl e EA S carrie rwit h a superio rperformanc e record . Cap e Ai rha s rebuil tan d expande d th e passenge rbas e whic h wa s al l bu t destroye d b yth e previou s financiall ytrouble d EA S carrier . Bi g Sk

yAirlines . As th e recor d indicates , th e deman d fo rregiona l ai rtrave l ha s increase d du e t o Cap e Air' s superio r performance
. I n performin g du e diligenc e utilizin g th e 4 9 U.S.C
. 4173 3 (c ) 1 an d Consolidate d Appropriation s Act , 200 8 Publi cLa w110-16 1 criteri a considerin g cost . Cap e Air' s bi d i s approximatel y$1. 3 millio n belo wtha t o fth e othe rcarrier s fo rOgdensburg
. I tshoul d als o b e note d tha tGul f Strea m Internationa l Group , Inc. , SE C For m 10- Kfile d Apri l 15 , 201 0 raise s substantia l concern s abou t th e continue d operatio n an d financia l stabilit yo fGul fStrea m International . Relevan t portion s o fth e recen t SEC 10- Kinclude :•"[TJh e compan ycurrentl ylease s fro m RAC C twenty-on e (21 ) Beec h 1900 D Airliners . Th e defaul t resulte d a s a resul t o fth e Company' s failur e t o mak e it s schedule d leas e payment s fo rth e mont h o f February12010}.. . Failur e t o mak e suc h a paymen t woul d hav e give n RAC C th e righ t t o terminat e th e Leas e Agreements , thereb yorohlbitln a th e Comoan vfro m usin g suc h airolanes. " SEC - lO Kp . 16 . Emphasi s adde d •Gul fStrea m state s tha t"Expansio n o foperation s coul d resul t i n operatin g losses.. . Simila rmateria l Increase s i n th e scop e o rscal e o fou roperation s coul d lea d t o integratio n difficulties , whic h coul d resul t i n shor t and/o rlon g ter m operatin g losses. " SE C 10- KP . 1 9 •''lT]h e Compan yi s als o acth/el yseekin g short-ter m deb t financing t o mee t it s near-ter m liquidit y requirements... " SE C -lO Kp . 1 7 •"[Gul fStrea m International ] i s no t I n complianc e wit h NYS E Ame xcontinue d listin g standard s [an d ha s until ] Novembe r12,201 0 t o regai n compliance . [Gul fStrea m International ] ma yb e subjec t t o delistin g proceedings . I n th e even t[Gul fStream's ] commo n stoc k wa s deliste d b ythe[NYS£ ] Exchange , [Gul f Strea m International ] woul d b e I n breac h o fa covenan t o f[their ] loa n an d securit yagreemen t [resultin g i n accelerating ] th e maturit yo f[Gul fStream's ] secure d origina l discoun t debenture. " SE C 10- Kp . 27 . 

### Th e SE C 10- Kstatement s mad e byGul fStrea m Internationa l generat e significan tconcern s regardin g th e abilit yo fGul fStrea m t o continu e operation s fo rth e duratio n o fa n EA S contract . A s a privatel yhel d business , Cap e Ai rgenerate s n o simila rconcerns , i s financiall ystabl e ownin g it s ow n aircraft
. Astabl e EA S servic e i s essentia l t o th e economi cvitalit yo fth e regio n whic h i t serves . Essentia l Ai rServic e users deserv e reliabl e servic e a t reasonabl e subsidies , lo wfares , provide d b va financiallystabl e carrier . Th e Ogdensbur g Bridg e an d PortAuthorit y recommend s tha tth e U.S
. Departmen t o fTransportatio n select Cap e Air' s Optio n 3 EA S proposa l fo ra four-yea rter m t o provid e th e EA S servic e s o vita l t o ou rcommunity . Based o n U.S
. DO

Tevaluatio n criteri a th e Ogdensbur g Bridg e an d Por tAuthorit yrecommend s U.S
. DO TselectCape Ai rOptio n 3 , fou ryea ragreement , a s th e EA S provide rfo rOgdensburg lnternat|iona l Airpor tbase d o n servic e reliability , interline , overal l cost , an d communit yinpu t factors
. Further , Cap e Ai rOptio n 3 provide s additiona l servic e t o Bosto n fo ra n incrementa l cos t o f$3 4 versu s th e stand-alon e Alban yoption . Thi s provide s th e Ogdensburg passenger s wit h th e maximu m numbe ro fflight s a t3X/day , retain s th e intra-stat e lin k wit h Albany , an d provide s th e maximu m numbe ro fconnection s a t bot h Alban yan d Bosto n hubs . Shoul d yo u requir e additiona l informatio n pleas e contac tm e directl yfo rmor e information
. I ca n b e reache d at315-393-408 0 ext 22 5 o rb yemai l a t wadavis^oedensport.com . Than k you . i 

### Sincerely , Wad e A . Davis , Executiv e Directo r Ogdensbur g Bridg e & Por tAuthorit y

### OGDENSBUR G BRIDG E & PORTAUTHORITY AUGUS T19 , 2010 , BOAR D MEETIN G

2 ) Approva l o f

F,3.'?eu l i-.i ^ Ai r

Scrvj ^ •.ti_

_Propof; aI-iccorarciendatio n 

### REPORT : Th e rjnitori State s Departrt.enr . a ^ Trarspor-ar . J o n Lhrouq n Docke t DOr-OST-1997-2g4 2 .sol j cite d ne wproposal s t o provid e Lssentia l Ai r Service.^ , t o Mas. = ena , Ogdensburg , an d Watertow n comiriencirig o n Octobe r 1 , 2010 . Fiooosai s wer e receive d froir Cap e Air , Charte r Ai r Transport , an d GU-L I oL i ear n Interna t iora l Group . Followin g i s a summar yo f thos e proposals : Provide r Cap e Ai r Optio n 1. 2 Cap e Ai r Optio n 3 

### Charte r Ai r Transpo r t Gulfstrearr . In-ernationa l Grou p Service /

Destinatio n Direc t servic e 3x/da y t o Alban y Direc t servic e 3x/da y t o Bosto n vi a Alban y "mil k run " 2x/da y servic e t o JE K (o r Newark ) vi a AR T Direc t servic e 2x/da Y (excl . Sunday ) t o BO S OG S Millio n /yr . $ 1 . 5 $1. 6 $2. 9 $2. 8 Al l Airport s

Million/yea r $4. 6 $4.< 3 ( 4 yr. ) $4. 9 $4. 4 ( 4 yrs. ) $4. 6 $7. 6 Far e $5 7 $5 7 $9 1 $7 9 $7 0 on e on e on e on e

on e wa y wa y(ALB ) wa y(SOS ) vva y

wa y

Th e Unite d State s Departmen t o f Transportation' s evaluatio n criteri a lo r selectin g a carrie r t o provid e subsidise d essentia l ai r service , 4 9 U.S.C . 41733(c)1 , consider s fou r factors : servic e reliability , contractua l an d martcer.in g arrangement s wit ha large r carrie r a t th e hub , interlin e arrangement s wit ha large r carrie r a t th e hub , an d communit yviews . Consolidate d Appropriation s Acz , 200 8 Publi c La w110-16 1 consider s subsid yrequirement s (costs ) . Co.Tjnunity/publ i c comment s ar e bein g sclicite a an o accepnze d unti l Augus t 20 , 2C1C . Th e Facilitie s Committe e me t o n Augus t 19 , 2C10 , an d reviewe d th e complet e proposal s a s submitte d an d recommend s th e Authorit ymak e recoimnendatio n t o th e U.S . Departinen t o f Transportatio n t o accep t th e proposa l (Optio n 3 ) b yCap e Ai r t o provid e essentia l ai r servic e a t th e Ogdensbur g Internationa l A.irpor t base d o n th e evaluario n criteri a utilize d b yth e Unite d State s Departmen t o f Tra.asportation . 

### RESOLUTION : RESOLVED , tha t th e Ogdensbur g Bridg e an d Por t Authorit yencourage. ^ th e Unite d State s Departmen t o f Transportatio n t o selec t Cap e Ai r Optio n 3 t o provid e essentia l ai r servic e t o th e Ogdensbur g Internationa l Airpor t effectiv e Octobe r 1 , 2010 , base d o n evaluatio n criteri a se t fort hi n Docke t DOT-OST-1997-2842 ; an d b e it , FURTHE R RESOLVED , tha t th e Ogdensbur g Bridg e an d Por t Authorit yencourage s th e Unite d State s Departmen t o f Transportatio n t o als o conside r Cap e Ai r Optio n 3 whic hprovide s additiona l servic e t o Bosto n a t a n incrementa l cos t o f $3 4 versu s th e stand-alon e Alban yoption , resultin g i n maximu m numbe r o f flight s availabl e a t Ogdensbur g a t thre e tim.e s dail ywhil e a t th e sam e tim e retainin g intra-Stat e lin k wit hAlban yan d provide s th e maximu mAumbe r o f connection s a t bot hAlban yan d Bosto n hubs . 

### PREPARER ; Tish a Havne s MOTIO N PASSE D BY : Steve n J . Barlow SECONDE D BY : Mar

yM . Farley APPROVE D BY: _ Unanimous : Ye s Abstaine d By : Not :