Order 2010-11-16

Served: November 19, 2010

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 16th day of November, 2010

ORDER RESELECTING CARRIER AND SETTING FINAL SUBSIDY RATES

Summary

By this order, the Department is reselecting Great Lakes Aviation, Ltd. (Great Lakes), 

operating as both a Frontier Airlines and United Airlines code-share partner, to provide 

subsidized essential air service (EAS) at Dickinson, North Dakota, for an annual subsidy rate 

of $2,019,177, for the two-year period of February 1, 2011, through January 31, 2013. (See 

Appendix A for a map.)

Background

By Order 2008-10-24, October 21, 2008, the Department selected Great Lakes to provide 

subsidized EAS at Dickinson through January 31, 2011. Under that order, Great Lakes was 

to provide Dickinson with three nonstop round trips to Denver each weekday and each 

weekend with allowable upline service (most likely to Williston, North Dakota) utilizing 30-

seat Embraer Brasilia aircraft for an annual subsidy rate of $2,274,177.

In anticipation of the end of Great Lakes’ current contract on January 31, 2011, the 

Department issued Order 2010-9-8 on September 7, 2010, soliciting proposals from all 

interested air carriers to provide EAS at Dickinson for a new, two-year term, either with or 

without subsidy, no later than October 4, 2010.

Proposals

The proposal and the community letters received by the Department are summarized below. 

The public record for this carrier-selection proceeding may be accessed online through the 

Essential Air Service at

DICKINSON, NORTH DAKOTA

Under 49 U.S.C. 41731 et seq.

Docket DOT-OST-1995-697
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Federal Docket Management System (FDMS) at: http://www.regulations.gov by doing a

document search on Docket ID: DOT-OST-1995-697.

Great Lakes

Great Lakes, the incumbent EAS provider for Dickinson, was the only carrier to submit a 

proposal. Operating as a Frontier and United Airlines code-share partner, the carrier 

proposed to continue to provide three nonstop round trips to Denver each weekday and each 

weekend, with 30-seat Embraer Brasilia aircraft for an annual subsidy rate of $2,049,027, 

with the caveat that the carrier would be permitted to continue to serve an upline community 

on six of the eighteen weekly round trips.

Community Comments

On October 7, 2010, the Department sent correspondence to the civic officials of Dickinson, 

the Airport Manager for the Dickinson Theodore Roosevelt Regional Airport, and the North 

Dakota Aeronautics Commission requesting comments on the carrier selection decision.

The community strongly supports the reselection of Great Lakes. The Airport Manager and 

Airport Authority Chairman both also make mention of the recent increase in enplanements 

and the importance of the stand-alone (without service to an upline community) round trips. 

The Airport Manager also notes that the airport is nearing 10,000 enplanements for the year, 

making it eligible for additional Federal Aviation Administration Airport Improvement 

Program funding. The City of Dickinson and Stark County Board of Commissioners 

highlight the importance of air service in the economic development of the city and region.

The Department also received comments from several local businesses supporting Great 

Lakes.

Decision on Carrier Selection

After careful consideration, including the comments of local officials, the Department has

decided to reselect Great Lakes to provide EAS at Dickinson in accordance with its proposal. 

The carrier will continue to provide three nonstop round trips to Denver each weekday and 

each weekend, with 30-seat Embraer Brasilia aircraft for an annual subsidy rate of 

$2,019,027, a decrease in approximately $255,000 when contrasted with the current rate. It 

will maintain the authority to provide service to an upline community of its choosing on 6 

round trips a week.

The carrier-selection decision is straightforward. Great Lakes was the only carrier to submit 

a proposal and the community fully supports the carrier. In addition, Great Lakes’ codeshare relationship with United and Frontier at Denver will provide Dickinson passengers 

excellent access to the national air transportation system. Finally, Great Lakes is a wellestablished carrier and we find both the service and subsidy levels to be reasonable.

The Department shall make this selection contingent upon the Department’s receiving 

properly executed certifications from Great Lakes that it is in compliance with the 

Department’s regulations regarding drug-free workplaces and nondiscrimination, as well as 

the regulations governing lobbying activities.
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Carrier Fitness

49 U.S.C. 41737(b) requires that we find an air carrier fit, willing, and able to provide 

reliable service before we may subsidize it to provide essential air service. Great Lakes is 

subject to the Department’s continuing fitness requirements, and no information has come to 

our attention that would cause us to question the carrier's fitness at this time. We have 

contacted the Federal Aviation Administration, and it has raised no concerns that would 

negatively affect our fitness finding. We therefore conclude that the carrier remains fit to 

conduct the operations proposed here.

This order is issued under authority delegated in 49 CFR 1.56a (f).

ACCORDINGLY,

1. The Department reselects Great Lakes Aviation, Ltd., to provide essential air service at 

Dickinson, North Dakota, and establish the subsidy rates, as described in Appendix C, for the 

period from February 1, 2011, through January 31, 2013;

2. The Department directs Great Lakes Aviation, Ltd., to retain all books, records, and other 

source and summary documentation to support claims for payment, and to preserve and 

maintain such documentation in a manner that readily permits its audit and examination by 

representatives of the Department. Such documentation shall be retained for seven years or 

until the Department indicates that the records may be destroyed, whichever comes first. 

Copies of flight logs for aircraft sold or disposed of must be retained. The carrier may forfeit 

its compensation for any claim that is not supported under the terms of this order;

3. We find that Great Lakes Aviation, Ltd., continues to be fit, willing and able to operate as 

a commuter air carrier and capable of providing reliable essential air service Dickinson, 

North Dakota;

4. This Docket will remain open until further order of the Department; and

5. Docket Operations will serve copies of this order on the parties listed in Appendix D.

By:

SUSAN L. KURLAND

Assistant Secretary for Aviation

and International Affairs

(SEAL)

An electronic version of this document is available on the World Wide Web at:

http://www.regulations.gov/
Appendix A

DICKINSON, NORTH DAKOTA

AND SURROUNDING COMMUNITIES
Appendix B

Great Lakes Aviation, Ltd.

Provision of Essential Air Service at Dickinson, North Dakota

Calculation of Compensation Requirement
Appendix C

Page 1 of 2

Great Lakes Aviation, Ltd.

Essential Air Service To Be Provided at Dickinson, North Dakota

Effective Period: February 1, 2011 through January 31, 2013

Scheduled Service: 18 nonstop round trips to Denver a week

Intermediate stops and upline 

service: 

Service may be permitted to an upline point on 6 subsidized 

Dickinson flights a week. No service to any intermediate point 

is contemplated under the terms of the carrier’s proposal; 

accordingly, no such service may be provided on subsidized 

flights without prior Department approval.

Aircraft type: Embraer Brasilia (30 passenger seats).

Timing of flights: Flights must be well-timed and well-spaced in order to ensure 

full compensation.

Annual compensation: $2,019,027

This rate assumes an annual completion factor of 97.5 percent. 

A compensation ceiling is to be applied per calendar week such 

that service above that ceiling in one week cannot make up for 

service shortfalls in another week.

Subsidy Rate per Flight: $1,102.691

Weekly Compensation Ceiling: $39,696.842

 1 $2,019,027 divided by 1831 annual departures: 6 flights/day x 313 days x .975 (completion factor) =1,831.

2 36 flights per week multiplied by $1,102.69 per flight.
Appendix C

Page 2 of 2

Note:

The carrier understands that it may forfeit its compensation for any flights that it does not operate 

in conformance with the terms and stipulations of the rate order, including the service plans 

outlined in the order and any other significant elements of the required service, without prior 

approval. The carrier understands that an aircraft take-off and landing at its scheduled 

destination constitutes a completed flight; absent an explanation supporting subsidy eligibility 

for a flight that has not been completed, such as certain weather cancellations, only completed 

flights are considered eligible for subsidy. In addition, if the carrier does not schedule or operate 

its flights in full conformance with the order for a significant period, it may jeopardize its entire 

subsidy claim for the period in question. If the carrier contemplates any such changes beyond 

the scope of the order during the applicable period of these rates, it must first notify the Office of 

Aviation Analysis in writing and receive written approval from the Department to be ensured of 

full compensation. Should circumstances warrant, the Department may locate and select a 

replacement carrier to provide service on these routes. The carrier must complete all flights that 

can be safely operated; flights that overfly points for lack of traffic will not be compensated. In 

determining whether subsidy payment for a deviating flight should be adjusted or disallowed, the 

Department will consider the extent to which the goals of the program are met and the extent of 

access to the national air transportation system provided to the community.

If the Department unilaterally, either partially or completely, terminates or reduces payments for 

service or changes service requirements at a specific location provided for under this order, then, 

at the end of the period for which the Department does make payments in the stipulated amounts 

or at the stipulated service levels, the carrier may cease to provide service to that specific 

location without regard to any requirement for notice of such cessation. Those adjustments in 

the levels of subsidy and/or service that are mutually agreed to in writing by the Department and 

carrier do not constitute a total or partial reduction or cessation of payment.

Subsidy contracts are subject to, and incorporate by reference, relevant statutes and Department 

regulations, as they may be amended from time to time. However, any such statutes, regulations, 

or amendments thereto shall not operate to controvert the foregoing paragraph.

Funds are not currently available for performance under this order beyond December 3, 2010. 

The Department’s obligation for performance under this order beyond December 3, 2010, is 

subject to the availability of appropriated funds from which payment for services can be made. 

No legal liability on the part of the Government for any payment may arise for performance 

under this order beyond December 3, 2010, until funds are made available to the Department for 

performance. If funds are not made available for performance beyond December 3, 2010, the 

Department will provide notice in writing to the carrier.

All claims for payment must be submitted within 60 days of the last day of service provided 

under this order.
Appendix D

SERVICE LIST

Mr. Jon Frantsvog

Chairman

Dickinson Municipal Airport Authority

11120 42nd Street SW

Dickinson, North Dakota 58601

Mr. Shawn Kessel

City Administrator

City of Dickinson

99 2nd Street East

Dickinson, North Dakota 58601

Mr. Michael O. Matthews

Chief Financial Officer

Great Lakes Airlines

1022 Airport Parkway

Cheyenne, Wyoming 82001

Mr. Matthew Remynse

Airport Manager

Dickinson Theodore Roosevelt Regional Airport

11120 42 Street SW

Dickinson, North Dakota 58601

Mr. Larry Taborsky

Director

North Dakota Aeronautics Commission

P.O. Box 5020

Bismarck, North Dakota 58502-5020

Terri Thiel

Executive Director

Dickinson Convention & Visitors Bureau

72 East Museum Drive

Dickinson, North Dakota 58601