Before the United States Department of Transportation

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 of the other

carriers serving Minneapolis/St. Paul, including interline e-ticketing agreements with American

Airlines, Delta Airlines, Frontier Airlines and United Airlines. All of which will offer the

passenger maximum access to the domestic and international air transportation 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 key factor

to enable a pilot to receive an ATP certificate is the 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 in the process of

recruiting and training pilots in an effort to replenish our staff of qualified pilots. It would be

expected that the re-installation of the additional 10 seats, allowing for utilization of all 19 seats,

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 of the Congressionally mandated regulatory changes will require

commitments to be made to address the long-term impact on the airline industry as a whole.

Great Lakes' stands ready to participate in creative solutions to assist small communities in their

efforts to remain in the 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 Lakes Aviation, 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: (at 0.62% of passenger revenue) $2,690

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% of Total 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 I V 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