### Swanson , Bria n (OST) DtfT ' O&T

- jC^^ f *Z(^O S From : Sent : To :

Cc : Subject : Attachments : Swanson , Bria n (OST ) Friday , Decembe r10 , 201 0 12:3 2 P M 'All<e , Debbie' ; Aageson , Christopher ; Ada m Gartner ; Bil l Henderson ; Bil l Scott ; Bra d Schmidt ; Bre t Carpenter ; Bret t Berry ; Chuc k Howell ; Da n Fevold ; Darry l McKenzie ; Devany , Denni s (OST) ; Dou g Voss ; Elme rEgli ; Fre d Larl< ; Gerry Berry ; Gerr y Grabofsky ; Hil l Count y Commission ; J

. T

. Korkow ; Ja n Falstad ; Joh n Ostlund ; Kass i Mohlenkamp ; Kevi n Ploehn ; Kirb y Campbell-Rierson ; Larry Mires ; Lesli e Messer ; Ching , Elizabeth ; Penn y Zimmerman ; Pet e Pederson ; Rache l Court ; Ric k Isle ; Rob b Bergeson ; To m Binford ; To m Hanel ; To m Lynch ; Valle y Count y Airpor t Commission/Dor a Jea n Beil ; Virgini a Sloan ; Wal t McNut t 'Gulfstrea m Internation , Micke y Bowman ' Solicitin g Comment s o n Proposal s fo rEA S i n Montan a Grea t Lake s M T EA S Bi d - De c 2010.pdf ; Gulfstrea m M T EA S Bi d - Dec2010.pd f

All : T ^ I woul dlik e t o update yo u o n th e Essentia l Ai r Servic e (EAS ) situatio n i n Montan aan dgiv e yo u am:q^)OTtunit y t o submi t comment s i

f yo u wish

. X ) >~5^— *
I n anticipatio n o f

th e en do f

Grea t Lakes ' curren t

contrac t o n Apri l 30 , 2011 , th e Department4ssued 5 Orde r 2010-11- 6 o n Novembe r 5 , 2010 , t o solici t

proposal s fro mal l intereste dai r carrier s t o ^ovid e EA S a t Glasgow , Glendive , Havre , Lewistown , Mile s City , Sidne y and/o r Wol f Point , for

ane w two-year

term , beginnin g Ma y 1 , 2011

. I n respons e t o tha t Order , Grea t

Lake s an dGulfstrea mInternationa l Airline s submitte d inseparabl e packag e bid s for EA S servic e at

al l 7 Montan acommunities

. Grea t Lakes , th e incumben

t carrier an doperatin g a s aFrontie

r an dUnitedAirline s code-shar e partner , proposedt

o continu e it s existin g one-sto p o r nonsto p servic e an

dschedule betwee

n eac h o f the seve n Montan aEAS communitie s an d eithe r Denve r o r Billing s utilizin g 19-sea

t Beec h 1900 D (o r 30-sea t Embrae r 12 0 Brasili aaircraf

t a t it s discretion) , fo

r a combinedannua

l subsid y o f $10,697,409

. The leve

l o f servic e a t eac h communit

y i s provid

e i n the tabl e belo

w
EA S Communit y Glasgo w Glendiv e Havr e Lewistow n Mile s City Sidne y Wol f Poin t Weeld y Roun dTrip s 1 2 1 2 1 2 1 2 1 2 1 7 1 2 Gulfstream , unde

r its independen

t marketing identity , submitte daproposa l fo r servic e betwee

n eac h EAS communit

y an d Billing s utilizing 19-passenge r Beec h 1900 D aircraft , fo

r acombinedannua

l subsid y rate o f $10,903,854

. The carrie

r proposedthe sam

e exac t leve l o f servic e a s detaile di

n the tabl e above

. Lewistown , Mile s Cit y an dSidne y woul dreceiv e nonsto p service , while Glasgow an dWol f Point woul dreceiv e amixtur

e o f one-stop an

dnonsto p service

. Glendiv e an

d Havr e wouldreceiv e one-stop service

. Gulfstrea mha s maintaine dticketin g an dbaggag e interline agreement s wit h legac y carrier s i n severa l larg e airports

. A cop y bot h proposal s ar

e attache dan

dma y als o b e accesse donline through the Federa l Docke t Managemen

t Syste m (FDMS ) at : http://www.regulations.gov / b y doing asimple search o

n Docke t Numbe r DOT-GST-1997-2605

. Pleas e not e that

th e average passenge r

far e show n it s proposa l doe s no t necessaril y reflec t

th e averag e local fare passenger s woul dactuall y pay , but , rather , reflec t aprorate dportio n o f

th e tota l ticke t

pric e (e.g. , th e Glasgo w - Denve r portio n o f

aGlasgo w - Denve r

- Washington , D.C

. ticket ) that th e subsidize dcarrie r

woul drealize

.Also , th e fare show n i s ne t o f certai n charge s suc h a s Federa l transportatio n securit y fees , excis e o r ticke t taxes , an dPassenge r

Facilit y Charges

. O f

course , carrier s hav e th e discretio n t o charg e fare s the y deemappropriate , an dth e passenge r

far e presente di n th e proposa l ha s bee n develope dfo r subsid y rat e computatio n purpose s only

. Base do n th e cos t

element s incorporate di n th e carrier' s computatio n summary , th e carrie r woul dhav e t o realiz e passenge r

fare s comparabl e t o th e average s show n i n thei r proposal s i n orde r

t o achiev e break-eve n o r profitabl e operation s withou t subsidy

. Yo u shoul dals o not e that th e carriers ' schedule s ma y chang e t o reflec t changin g condition s (e.g. , t o bette r mee t shiftin g connectin g ban k

time s at th e hub)

. Th e Departmen t doe s expec t

subsidize dai r

carrier s t o maintai n well-time dan dwell-space dflight s i n orde r t o ensur e ful l compensation

. W e reques t

tha t yo u submi t

an y comment s yo u ma y hav e a s soo n a s possible , but i n an y cas e n o late r

tha n Januar y 5 , 2010

. Pleas e sen dyou r comment s b y fa

x t o 202-366-763 8 o r

b y emai l t o both dennis.devany@dot.go v an dbrian.swanson@dot.gov

. Ou r rule s requir e tha t

yo u sen dyou r

comment s t o Grea t Lake s a s well

. I

f yo u hav e an y questions , o r nee dmor e tim e t o reply , pleas e fee l fre e t o contac t Bria n Swanso n o f m y staf f a t 202-366-5392

. Sincerely ,

Denni s J

. DeVan y Chief , Essentia l Ai r

Servic e Division , X-5 3 Offic e o f Aviatio n Analysi s