## Before the United States Department ofTransportation 

# Washington, DC April 28, 2014

Huron, South Dakota Docket OST-2000-7138 Essential Air Service at:

under 49 U.S.C. 41731 et.seq.
This contains the response of Great Lakes Aviation, LTD. to Order Requesting Proposals 2014- 3-16. The proposed service is being offered utilizing pressurized, multi-engine and dual pilot crewed Beech 19000 aircraft. Local service will be marketed and priced utilizing the Great Lakes (ZK) reservations system which includes customer ticket purchasing capability on both the Great Lakes' web site and on numerous web booking engines. Additionally, Great Lakes and Delta Airlines have formed a partnership to enable the sale of Great Lakes' passenger segments on the Delta website as well as, providing the passenger with through check-in and seamless baggage transfers. Great Lakes maintains interline ticketing and baggage agreements with the majority ofthe other carriers serving Minneapolis/St. Paul, including interline e-ticketing agreements with American Airlines, Delta Airlines, Frontier Airlines and United Airlines. All ofwhich will offer the passenger maximum access to the domestic and international airtransportation system. New FAA pilot qualification rules has created an industry-wide pilot shortage which has had an acute impact on Great Lakes. Theses new rules mandated that first officers obtain an Airline Transport Pilot certification ("ATP") prior to being qualified to perform crewmember duties in scheduled airline passenger service under FAR Part 121 regulatory requirements. A keyfactor to enable a pilot to receive an ATP certificate isthe accumulation of 1,500 flight hours. Great Lakes received from the FAA new operations specifications allowing us to hire pilots under FAR Part 135 regulatory requirements
. This will allow our pilots to operate the Beech 19000 aircraft in a nine seat configuration and enable Great Lakes to restore pilot staffing levels while maintaining FAR Part 121 hiring, training and employment standards. We are inthe process of recruiting and training pilots in an effort to replenish our staff ofqualified pilots. Itwould be expected that the re-installation ofthe additional 10seats, allowing for utilization of all 19seats, would occur as soon as pilot experience allows for the issuance of restricted ATP certificates.The recently implemented regulatory requirements have dramatically accelerated a long

anticipated pilot shortage, causing nationwide damage to small community air service. The unintended consequences ofthe Congressionally mandated regulatory changes will require commitments to be made to address the long-term impact on the airline industry as awhole
. Great Lakes' stands ready to participate in creative solutions to assist small communities intheir efforts to remain inthe National Air Transportation System. Questions and comments may be referred to: Michael Matthews Chief Financial Officer Great Lakes Airlines 1022 Airport Parkway Cheyenne, VVY 82001 (307) 432-7000

# Great LakesAviation, Ltd. Annual Compensation Requirements for Essential Air Service at 

## Huron, South Dakota to MSP or DEN

Two Round Trips - B1900 98
.0% completion factor Departures: Block Hours: Revenue Passenger Miles: Operating Revenues:

Passenger: HON 3,750 psgrs at $115.72 $433,950 Other: $2,690

(at 0
.62% of passenger revenue) Total Operating Revenues: Operating Expenses:

Direct Aircraft and Hull Insurance

Fuel and Oil Flying Operations Maintenance $365,710 $877,031 $300,397 $481,191 Total Direct Expenses: Total Indirect Expenses: Total Operating Expenses: Operating Loss Profit Element (5.0% ofTotal Operating Expenses) Annual Compensation Requirement: Representative Schedule *** [HON] Huron, South Dakota ***

-------------------- D E PAR T U RES -------------------- FLT TO DPT ARR EQP 7171 MSP 7:00 8:10 BE1 7316 MSP 13:06 14:16 BE1

-------------------- A R R IV A L S -------------------- FLT FROM DPT ARR EQP 7321 MSP 11:55 13:14 BE1 7268 MSP 19:55 21:14 BE1

No Upline Scheduling Restrictions FREQ 12345 1234567
FREQ 123456 123457 1,227 1,523 933,750

$436,640

$2,024,329 $821,995 $2,846,324 ($2,409,684 ) $142,316 $2,552,000