Alternate	Essential	Air	Service	Proposal

for	the	Manistee	County	Blacker	Airport

April	10th,	2014

Summary	of	the	Alternate	Essential	Air	Service	Proposal	

The Manistee County Blacker Airport (“Airport”) is proposing to provide for the air 

service needs of the Manistee/Ludington communities and surrounding areas by 

contracting with Public Charters, Inc., a Part 380 Indirect Air Carrier (“Indirect Air 

Carrier”) for a period of four (4) years. Such air transportation is planned to continue to 

be to Chicago Midway Airport, with 30 seat BAE JetStream 41, 19 seat BAE JetStream 

31, or equivalent twin-engine aircraft conducting regularly scheduled public charter 

flights. The frequency of flights will vary seasonally as required to meet demand. 

However, once daily service during the off peak season and twice daily service during 

peak season is anticipated. 

Alternate	Essential	Air	Service	Plan	Proposal	

1. The Airport, in exchange for a Alternative EAS Grant from the Department in the 

amount $2,328,103.54 per year, will forego its participation in the traditional EAS 

program for a period of four (4) years commencing when this agreement is fully 

executed or the end of the current Alternative EAS grant which ever is later; 

2. The Airport will contract with a Part 380 Indirect Air Carrier (Public Charters, 

Inc.) to provide scheduled public charter flights to a medium or large hub, with a 

minimum of twin engine 19 seat aircraft. Compensation necessary to provide and 

market such service will come from the Alternative EAS Grant funds;

3. While continued service to Chicago Midway Airport is planned, in the flexibility 

provided by the Alternate EAS program we request the option to provide service 

to other medium or large hubs (in keeping with the intent of providing 

connectivity to the national air transportation system) within a 500 nautical mile 

(575 statute mile) radius. This may be done in addition to Chicago Midway 

(testing alternative hubs) or instead of Chicago Midway. Regardless of the hub 

the subsidy calculation would be based on the same formula and subsidy 

maximums.

4. Service will be non-stop or one-stop from Manistee to the hub airport with no 

restrictions on up line scheduling;

5. The subsidy is to be calculated at $0.80559 per ASM (Available Seat Mile) 

flown1;

6. The maximum amount of subsidy in any one month is $388,017.262;

7. The maximum amount of subsidy in any one year of the grant is $2,328,103.54;

																																																							 1	$0.80559/ASM	*	2,889,936	ASM	=	$2,328,103.54,	where	the	distance	from	MBL	to	

MDW	is	188	statute	miles	and	daily	service	for	42	weeks	with	19	seat	aircraft	and	

10	weeks	with	30	seat	aircraft	is	15,372	available	seats	for	2,889,936	ASM

2		The	monthly	maximum	is	double	the	average	monthly	subsidy	amount	

($2,328,103.54	/	12	*	2	=	$388,017.26)	to	accommodate	seasonal	differences	in	

demand	
8. The Airport and Indirect Air Carrier reserve the right to provide equivalent 

service with substitute aircraft in the event of mechanical problems or other 

unforeseen circumstances. The Airport and Indirect Air Carrier also reserve the 

right to adjust frequency from time to time to reflect seasonal changes in demand 

and to provide greater or less frequency than planned, however any flights 

operated that result in subsidy amounts greater than the above monthly and yearly 

maximums while allowed will not be subsidized;

9. The Airport specifically reserves its right as a subsidy eligible EAS point to 

reinstatement in the traditional EAS program. 

Additional	Considerations

The Airport and Indirect Air Carrier, will enter into an agreement incorporating the above 

terms as well as the following additional considerations, among others:

• A Performance Clause

The failure of the Indirect Air Carrier to provide the agreed upon service in a 

reliable manner will be reason for early termination of the proposed service;

• An Early Termination Clause

In the event of early termination of the service, the Airport and the Indirect Air 

Carrier will agree to a “hold-in” period while the Airport and US-DOT secure 

replacement air service under the Essential Air Service or Alternate Essential Air 

Service programs. Both parties agree to take the following steps in the event of 

early termination:

1. Written notice of Termination between the Airport and the Indirect Air 

Carrier

2. The Airport notifies US-DOT of its intent to remain in either the Alternate 

EAS Program or to reenter the standard EAS program.

3. The Airport and US-DOT will provide best efforts to secure replacement 

air service

4. The Indirect Air Carrier will work with the replacement carrier on a 

transition date

• Sterile Operations

All scheduled flights are to be operated in a sterile environment, meaning 

passengers would be TSA screened at Manistee and the hub airport.