Alternate	Essential	Air	Service	Proposal

for the	Manistee County	Blacker	Airport April	10 th,	2014

Summary	of	the	Alternate	Essen tial	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 Carr ier (“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 sc heduled 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	Pl an	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 tw in 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 Chic ago 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

restri ctions on up line scheduling;



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

flown 1 ; 

### 6. The maximum amount of subsidy in any one month is $388,017.26 2 ; 

### 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	maxim um	is	double	the	average	monthly	subsidy	amount ($2,328,103.54	/	12	*	2	=	$388,017.26)	to	accommodate	seasonal	differences	in

demand

### 8. Th e A irport 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 freque ncy 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 subs idized;


### 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

term s 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 Essentia l 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 Alte rnate 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 schedul ed flights are to be operated in a sterile environment, meaning passengers would be TSA screened at Manistee and the hub airport.