Dennis DeVaney Chief, Essential 

### Air Service Division 1200 New JerseyAvenue SE Washington, DC 20590 August 19,2011

Re: REGIONAL ESSENTIAL AIR**~VICE** JOINTRECOMMENDATION 

### Dodge City, Kansas 

# t,/ Garden City, Kansas /' Docket# OST-1998-3502 Docket# OST-1998-3503

DearDennis:

As you are aware, inJune the City Commission ofthe City ofGarden City, Kansas unanimously endorsed the proposal submitted by American Eagle to serve Garden City with regionaljet service to Dallas-Fort Worth. Following that decision, several discussions between Garden City and Dodge City officials ensued to identify opportunities to submit a regional air service strategy for your consideration, but in a manner which did not dramatically impact the distribution of funds allocated to the Essential Air Serviceprogram on a national level.

To that end, on August 4th the Dodge City Commission was presented with a proposed recommendation which would have modified Great Lakes' service to Dodge City, Kansas allowing the "remaining" subsidyto assist in funding the American Eagleproposal for Garden City. That proposal was rejected bythe Commission by a 3-2 vote with themajorityofthe Commission opting to recommend a continuation ofthe City's present service as proposedby Great Lakes whichprovides four (4) dailyround trip flights to Denver. However, in the days following the August 4th meeting, there has been considerable discussion regarding a different proposal in an effort to provideregionaljetservice for southwest Kansas. Those discussions have focused onthe benefits to the traveling public in bothDodge City and Garden City and strategies for funding the total amount ofsubsidywhich would berequired 

### in orderto maximize those benefits.A new proposal was prepared to again offer an opportUnityto forge a regional partnership aimed at securingregionaljet service to western Kansas and at the same time provide maximum access to thenations air transportation network. The attached proposal, described as the "Joint Recommendation", was presented to the Commissioners ofthe CityDodge Citylast Monday night and was approved bythe Commission.

The Cities ofGarden City and Dodge Citypresent thisjointletter in support ofthe service described in the Joint Recommendation. This proposal not only has the support ofour communities' elected leadership, but also State officials who have helped craft this unique regional partnership. The City's ofDodge City and Garden City are also supportive ofthe efforts ofthe BAS office to ''holdthe line" onthe total amount ofFederal subsidyrequired to 'provide air service for the geographicaliyisolated subsidy eligiblepoints in western Kansas. At the present time Great Lakes Airlines has proposed to provideboth Garden City and Dodge City with service to Denver at a combined subsidy cost of$4.6 million dollars. Bythe same token, American Eaglehas proposed serviceto Dallas from Garden City at a proposed subsidy cost of $3.2 million dollars.

In conversations with Great Lakes Airlines, it appears that the three (3) nonwstop flights to Denver from Dodge City as stated in the Joint Recommendation canbeprovided at a subsidy cost ofapproximately $1.7 mil1ion dollars. As reflected on the attached computation sheet, through the combined efforts ofbothDodge City and Garden City, as well as the State of Kansas, the total cost to the EAS subsidyprogram ofthe Joint Recommendation for service to both cities has been reduced, leaving a total EAS subsidy cost for service to both communities at the same level as would have beenpaidunderthe Great Lakes proposal for both cities.

As you know, and as indicated on the attached computation sheet, the City ofGarden City is committing a $333,333 annual subsidy to help lessen the financial impact ofthis regional plan on the Essential 

### Air Service program. We will defer to YOUl'judgment as to howthis money moves from the communityto American Eagle.

Thank you for your assistance in granting ourcommunities the time to work collectively on this unique opportunity and your assistance in analyzing the financial and operational details ofthe proposals. Thank you for giving careful consideration to this significant opportunity for southwest Kansas.

Respectfully Submitted Respectfully Submitted
onbehalfof

### t e City ofDodge City, KS on behalfofthe City ofGarden City, KS

### DODGE CITY/GARDEN CITY JOINT EAS RECOMMENDATION

The following is intended to supersede the original recommendations dated June 7, 2011 and August 6, 2011:



### 1. Approve the American Eagle proposal for two (2) daily round trip flights to Dallas from Garden City utilizing regionaljet aircraft;

2. Eliminate one (1) Great Lakes proposed flight at Dodge City and apply the resulting subsidy savings to the balance ofthe subsidy requirement for the American Eagle regionaljet service from Garden City to Dallas;

3. Retain the proposed remaining three (3) Great Lakes Denver flights as non-stop flights from Dodge City to Denver; and

4. Provide that should American Eagle discontinue its service at Garden City at any time the fourth (4th) 

### Great Lakes Denver flight at Dodge City would be reinstated.August 19, 2011

Great Lakes Tradition EAS proposal for Denver Service for Both Communities

Denver/Garden City $2,329,498 Denver/Dodge City $2,278,126 Total Cost for Both $4,607,624

Dodge City/Garden City Joint Recommended Regional EAS Proposal for Denver and Dallas Service American Eagle/Garden City $3,252,359 Local & State Funding ($333,333) Total Cost for Garden City/Dallas $2,919,026

Great LakeslDodge City/Denver Total Cost for Both $1,688,598 $4,607,624

Difference in Cost $0