## ^42^-«>'^^*' ^ (>•—---i ' p.>.|<:^Vos-T'-7^oB-<9>r ^ 

# O V^RTMEN T O F ^SPOfiWIO N ^ •' • OPERATION S u s . Departmen t o f
. v.ui/u_,, j l 20 0 Ne w jerse y Avenue , S E Transportatio n Washington , D C 2059 0 Offic e O f th e Secretar

y - ' ' 3 P > 2 0 o f Transportatio n Th e Honorabl e Geof

f Dal e Septembe r 23 , 201 0 42 0 Sout h Imperia l Avenu e Imperial , C A 9225 1 Dea r Mayo r Dale : A s yo u know , SkyWes t

Airlines , Inc. , d/b/ aUnite d Expres s (SkyWest) , provide s subsidize d ai r servic e unde r

th e essentia l ai r

servic e (EAS ) progra ma t E l Centro/Imperial . SkyWes t wa s initiall y selecte d b y Orde r 2008-12-26 , t o provid e E l Centro/Imperia l thirtee n nonsto p roun d trip s awee k

t o Lo s Angele s wit

h th e aircraf

t base d i n Lo s Angeles . Th e Department' s curren t contrac t with SkyWest , Orde r

2009-5-21 , Ma y 27 , 2009 , call s fo r a n annua l subsid y o f

$662,55 1 t o provid e E

l Centro/Imperia l wit

h atota l o f

si x nonsto p an d seve n one-sto p roun d trip s pe r wee k t o Lo s Angele s wit

h 30-sea t Embrae r Brasili aaircraft , an d expire s Decembe r 31 , an d require s th e aircraf t t o b e based i n E l Centro/Imperial . In anticipatio n o f th e en d o f

tha t contract , b y Orde r 2010-8-1 3 th e Departmen t requeste d "bes t

an d final " proposal s t o serv e E l Centro/Imperia l for

anew , two-yea r

period , an d w e receive d timely-file d proposal s fro m SkyWes t an d fro mAlask aJunea u Aeronautics, , Inc. , d/b/ aSeaPor t Airline s (Seaport) . M y purpos e i n writin g i s t o infor myo u o f th e result s o f

eac h carrier' s servic e an d subsid y proposa l befor e w e submi t arecommendatio n o n th e carrier-selectio n issu e t o th e Assistan t Secretar y for

Aviatio n an d Internationa l Affair s fo r decision . Copie s o f

eac h carrier' s ful l proposa l ma y b e accesse d onlin e throug h th e Department' s Docket s Managemen t Syste ma t http://www.regulations.gov 7 b y enterin g "DOT-OS T 2008-0299 " i n th e "ente r Keywor d o r

ID " field , s o w e wil l onl y summariz e i t here . SeaPor t SeaPor t proposes t o provid e thre e dail y nonsto p roun d trip s pe r week : on e t o Phoeni x an d tw o t o Sa n Dieg o —fo r afirst-yea

r subsid y o f

$1,202,24 8 an d asecon d year subsid y o f $1,226,710
. Al l servic e woul d b e wit h 9-seat , single-engine , pressurized , turbopro p Pilatu s PC
1 2 aircraft , an d th e aircraf t woul d b e based i n E l Centro/Imperia l based o n th e schedul e show n in SeaPort' s proposal , reproduce d i n Attachmen t B . SkyWes t SkyWes t

propose s t o revert

t o th e servic e i t

originall y provided : thirtee n nonsto p roun d trip s pe r

wee k t o Lo s Angele s —for

atota l annua l subsid y o f $1,852,091
. Al l servic e woul d operat e o n anonsto p basi s with 30-sea t Brasilias , atwin-engine , turboprop , an d pressurize d aircraft . SkyWes t woul d operat e a s Unite d Express . W e not e tha t

E l Centro/Imperial' s EA S call s for servic e with 15-seat , twin-engin e aircraft . Thu s i t i s likel y w e woul d onl y selec t SeaPor t i f th e communit y waive s thos e assurances . In that event , w e woul d conside r tha t waive r effectiv e onl y for

th e two-year

perio d o f th e SeaPor t contract .Pleas e not e tha t th e averag e passenge r

fare s show n i n th e carriers ' proposal s d o no t necessaril y reflec t th e averag e loca l fare s passenger s woul d pay , bu t rathe r reflec t th e prorate d portio n o f

th e tota l ticke t

price , e.g. , th e E l Centro/Imperia l - Lo s Angele s portio n o f a n E l Centro/Imperia l - Lo s Angele s - Atlant aticke t tha t th e carrie r

woul d realize . Also , th e implici t average fare , a s reflecte d i n th e carriers ' subsid y calculations , enclose d a s Attachment s A an d B , ar e ne t o f certai n charge s suc h a s federa l transportatio n security fees , excis e an d ticke t taxes , an d passenge r facility charges . O f

course , carrier s hav e th e discretio n t o charg e fare s the y dee mappropriate , an d th e passenge r

fare s show n i n Attachment s A an d B wer e develope d for subsid y rat e computatio n purpose s only . Eac h carrie r woul d hav e t o realiz e passenge r fare s comparabl e t o th e average s show n i n it s proposa l i n orde r t o achiev e break-eve n o r profitabl e operation s eve n with subsidy . Yo u shoul d als o not e tha t th e schedule s submitte d b y th e tw o carrier s an d reproduce d i n Appendi x C ar e illustrativ e only , an d th e carrie r selecte d ma y mak e schedul e change s t o reflec t changin g conditions , e.g. , t o bette r mee t shiftin g connectin g ban k time s a t th e hub . Th e Departmen t

expect s subsidize d ai r

carrier s t o maintai n well-time d an d well-space d flights i n orde r t o ensur e full compensation . W e kno w thi s matte r

i s importan t

t o yo u an d w e wil l ac t

a s quickl y a s possibl e upo n receip t o f you r letter . I n orde r

t o expedit e th e case , pleas e submi t you r comment s b y emai l t o EAS@dot.go v an d t o Kevin.Adams@dot.gov . b y Octobe r 21 . I f yo u hav e an y question s o r d o no t wis h t o submi t

forma l comments , pleas e contac t Kevi n Adam s at

(202 ) 366-1047 . A s afinal matter , a n identica l lette r

i s bein g sen t

t o th e Mayo r

o f E l Centro . Sincerely ,

^ < ^ Denni s J . DeVan y Chief , Essentia l Ai r

Servic e Divisio n Offic e o f Aviatio n Analysi s Enclosure s cc : Airpor t

Manager , SkyWest , SeaPor tAIRLINE S

Septembe r

13 , 201 0
Denni s J . DeVany Offic e o f Aviatio n Analysi s U S Departmen t

o f Transportatio n 40 0 Sevent

h Street , S.W . Washington , D.C . 2059 0 SkyWes t Airline s Essentia l Air

Servic e Proposa l fo

r Imperial , California . Dea r Mr . DeVany : Attache d i s th e SkyWes t

Airline s proposal fo

r continue d servic e to Imperial , California . Ou r proposal i s t o provid e tw o direc t roun d trip s dail y (1 3 roun d trip s pe r week ) t o Lo s Angeles , Californi a(LAX ) wit h n o intermediat e stop s o r aircraf t flo w fro mothe r cities . Pleas e not e tha

t thi s i s differen

t tha n ou r curren t servic e pattern whic h consist s o f bot h non-sto p an d one-sto p flight s t o LAX . A sampl e schedul e i s als o attached . Servic e wil l b e provide d wit

h th e Embrae r

Brasili a(EMB-120 ) 30-sea t turbopro p aircraft . Th e proposal perio d i s fo

r January 1 , 201 1 t o Decembe r 31 , 2012 . Thes e flight s wil l b e operate d a s Unite d Express , pursuan t to acode-sharin g agreemen t wit h Unite d Airlines , an d wil l provid e connection s in Lo s Angele s t o th e nationa l transportatio n system . SkyWes t welcome s th e opportunity to continu e t o provid e reliabl e servic e i f selected . Than k yo u fo r your consideration . Sincerely , 

# r < Michae l Thompso n Vic e Presiden t

- Marke t Developmen t SkyWes t Airline sSampl e schedul e fo r IPL-LAX : To : LOS_ANGELES_INT L De p Ar r Fre q 08:4 0 09:4 8 123456 7 20:3 2 21:4 0 1234 5 7 From : LO S ANGELE S INT L De p Ar r Fre q 07:2 5 08:2 5 123456 7 19:0 5 20:0 5 1234 5 7SkyWes t Airline s

Imperia l 10-Sep-l O

Numbe ro f round-trip s pe rweel < Aircraf t Typ e - Embrae rBrasili a Passenge rRevenu e Passenger s Averag e Far e Revenu e Bloc k Tim e Tri p bloci < tim e - IVIinute s Tota l sciiedule d bloci < tim e Tota l complete d bloc k tim e RPM S Passenger s Stag e Lengtt i
ASM S Schedule d Departure s Compete d Departure s Stag e lengtl i Availabl e Seat s 2011-201 2 Imperia l Lo s Angele s 1 3

98 %

98 % 10,50 0

76.5 0 803,25 0
6 4 1,44 2 1,41 3 10,50 0 18 2 1,911,00 0 1,35 2 1,32 5 18 2 3 0 \^5» , 

# 1 ' ^.^ ^

7,381,92 0
Revenu e Direc t Operatin g Expense s Fligh t attendan t RP M relate d Departur e relate d AS M relate d
Operatin g incom e (loss ) 5 % profi t margi n Subsid y requiremen t SkyWes t effectiv e rate s pe runi t Pe rtri p Pe rpassenge r SkyWes t cos t pe rbloc k hou r Effectiv e Subsid y rat e pe runi t Pe rtri p Pe rpassenge r SkyWes t cos t pe rbloc k hou r Loa d facto r Averag e fue l cos t pe rgallo n 803,25 0 BIkH rS 1,153,1 9 BI k H rS 34.4 9 RPIVI S $ 0.0 1 Departure s $ 408.4 6 ASM S S 0.0 4 $ s $ $ s $ $ $ 

### s $ $ s $ $ $ $ 1,629,78 9

48,74 3 24,14 3 541,19 8 285,02 2 2,528,89 6 (1,725,646 ) 126,44 5 1,852,09 1
1,90 9 24 1 1,78 9
1,39 8 17 6 1,78 9 26 % 2.7 5^

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