# City o f

Alpen a

Marc h 15,201 2 -. ; Mr . Denni s DeVan y-^ ^ > ' — Chief , Essentia l Ai rServic e Divisio n " ^ 7 " 5^ 0 Offic e o f Aviatio n Analysi s ^r , ":p§ ^ Departmen t of Transportatio n -1 ^ s;^ 5 120 0 Ne w Jerse yAvenu e SE , _^<5 Q Washington , D.C . 2059 0 2 . £5' " ' C D Referenc e DOT-OST-2009-030 0 Dea rDennis , Thi s lette ri s th e respons e of th e Cit yo f Alpena , Michiga n t o th e Department' s lette ro f Februar y 17 , 2012 . Th e Departmen t lette rdoe s no t as k Alpen a fo rit s comment s a t an ypoint . Th e firs t paragrap h say s th e lette ri s t o "infor m yo u of results...befor e w e (DOT ) submi t a recommendatio n o n th e carrier-selectio n issue... " Th e las t paragrap h o f th e lette rsay s "w e wil l ac t a s quickl ya s possibl e upo n receip t of you rletter" . Whil e th e Departmen t i s apparentl yno t askin g fo rou rcomments , thi s lette rwil l constitut e ou r comment s o n th e result s of th e thir d roun d of Essentia l Ai rServic e (EAS ) biddin g t o provid e Alpen a ai rsen/ice . A s background , I wil l firs t offe rtha t Alpen a i s a growin g city , th e larges t i n Northeas t Lowe r Michigan . Ou reconom yi s divers e an d numerou s element s of tha t econom ydepen d o n effectiv e ai rtransportatio n i n orde rt o conduc t on-goin g busines s operations . Alpen a i s als o a veryisolate d city ; 7 1 mile s t o th e neares t Interstat e Highwa yan d 10 0 mile s (al l o n tw o lan e roads ) t o th e neares t alternativ e airpor t (Pellston) . I t i s 25 8 roa d mile s t o Detroi t an d it s larg e hu b airport . I n othe rwords , unlik e man yEA S cities , w e d o no t hav e anothe rairpor t 4 5 minute s dow n th e road . Ou rai rservic e i s currentl yprospering , wit h 201 1 tota l traffi c o n ou rflight s t o an d fro m Detroi t o f nearl y23,00 0 passengers . Detroi t ha s bee n ou rhu b fo rnearl yfiv e decade s no w an d i s th e closes t hu b airport . Th e Department' s Februar y1 7 lette rbriefl youtline s th e recen t historyo f EA S a t Alpena , th e result s of th e firs t an d secon d round s of biddin g an d th e result s of th e thir d roun d of bidding , includin g th e fiv e optio n bi d of AirChoiceOn e t o provid e Alpen a EA S wit h eithe ra Cessn a Carava n o rPipe rNavaj o o n a rout e t o Chicag o O'Har e airport .



# ALPIM A ktlCHiGAH' S ADVEMSHOR EWhil e th e Februar y1 7 lette rneve rspecificall yask s Alpen a fo rit s comments w e assum e th e request a t th e en d fo r"ou rletter " mean s th e Departmen t wishe s t o kno w an ycomments th e communit yma yhav e o n th e AirChoiceOn e bid . Ou rcomments ar

e a s follows : > We rejec

t option s one , two an d three , that us e singl e engin e Cessn a equipment . > W e rejec

t optio n fou ri n that i t doe s no t mee t th e minimu m EA

S service definitio n fo rthat airplan e type . Th e origina l DO T RF P fo rAlpen a define d minimu m bid s as (appendi xC ) 1 2 t o 1 4 trip s pe rwee k

wit h a 3 4 o r3 0 sea

t aircraf t an d 1 8 t o 2 4 trip s pe rwee k wit h a 19-sea t aircraft . Th e Appendi xC als o note d that Alpen a generate s o n averag e 31. 5 enplanements pe rday . Whil e th e RF P di d no t defin e an yminimu m servic e standar d fo r smalle raircraf

t w e d o note that recen t RFP s o rawarde d carrie rbid s fo rBurlington , lA , Decatur , I L an d fou rDelt a citie s i n th e southeast al l require d a minimu m o f fou rtrip s a da ywit h aircraf

t smalle rtha n 1 9 seats . > W e questio n th e Navajo' s capabilit yt o carr ymor e tha n 4 passenger

s wit h th e fue l require d t o trave l fro m AP N t o OR D o n day s wit h les s tha n perfec

t conditions . > Ou rresearc h o

f AirCHoiceOn e show

s that th e carrie rappear s t o b e o n "probation " fo r lac k o f a bette rter m regardin g it s curren t EA S operation s a

t Burlington , lA , Decatur , I L an d Jonesboro , AR . I n Orde r2011-12-1 7 th e Departmen t award s AirChoiceOn e a ne w ter m a t Burlingto n an d Decatu rbu t fo ronl yon e year , wit h a provis o that th e carrie rmus t "full yimplemen t a n electroni c ticketin g an d baggag e agreemen t wit h a majo rairlin e wit h a hu b operatio n a

t Chicag o O'Har

e and/o rSt . Loui s b

yJanuar y31 , 2013. " Apparentl y AirChoiceOne' s recen t awar d o f EA S designatio n a

t Jonesbor

o contain s a simila r provision . > Researc h o n AirChoiceOn e als o show s that th e airlin e i s base d i n St . Loui s an d own s o r operate s thre e Carava n aircraf t an d on e Navaj o aircraft . Al l curren t EA S services , includin g al l flight s a

t ORD , appea rt o b e operate d wit h Caravans , a t least al l wer

e bi d as Caravan s an d that i s th e airplan e show n o n th e carrier' s website . > Al l o

f th e carrier' s Alpen a bids , eithe rCarava n o rNavajo , sho w a schedule d fligh t tim e i n th e representative schedul e o f 1:4 0 i n bot h directions . Usin g publicall yavailabl e fligh t plannin g software w

e hav e foun d that a n averag e fligh t tim e o f 1:4 0 migh t b e possibl e betwee n th e two citie s unde rperfec t weathe rconditions . However , as wit h al l airlin e operations , southwest boun d flight s int o predominat e wind s wil l take longe ran d northeast boun d flight s ma ytak e les s time . Also , th e fligh t tim e doe s no t allow fo rtax i tim e i n an d ou t a

t ORD , whic h i s a measurabl e addition . Thu s we believe , despit e th e airline' s "representativ e schedule " that flight s fro m Alpen a t o Chicag o wil l requir e mor e tha n a two hou rschedule d time , an d eve n mor e i n winter . 

# ALPE U MCHIGAN'SADVENSHOR ET o furthe rclarif ythi s point ; AirChoiceOn e currentl yoperate s th e followin g route s an d publishe d schedul e times ;

AIRCHOICEON E SCHEDULE D TIMES : MARC

H 201 2 Cit y BR L BR L DE C DE C J B R AP N Hu b

OR D ST L OR D STL STL OR D Distanc e

18 7 14 7 15 7 11 1 17 6 30 6 Inboun d

1:4 0 1:1 0 1:2 0 :5 5 1:3 0 1:4 0 Outboun d

1:4 0 1:1 0 1:2 0 :5 5 1:2 5 1:4 0 BRL , DE C AN D JB R time s pe rAirChoiceOn e websit e AP N time s pe rAirChoiceOn e EA S proposa l Th e propose d Alpen a route , wit h eithe ra Carava n o rNavajo , has a schedul e tim e o f 1:4 0 i n th e carrie rproposal . Yet th e carrie rtake s th e sam e time , 1:40 , jus t t o cove rth e Burlingto n - Chicag o route . Alpen a i s 64 % furthe rfro m OR D tha n Burlingto n is . Th e compas s headin g i s similar . Th e carrie rha s clearl ymisjudge d th e realisti c schedul e tim e i t wil l take t o perfor m Alpen a - Chicag o OR D b y a wid e margin . Th e schedule d tim e Alpen a t o Chicag o wil l hav e t o excee d two hours . Th e Departmen t remind s u s i n th e Februar y1 7 lette rthat th e Silve rAinway s bi d was rejecte d b

y th e Departmen t as "excessive" . However , w e cannot hel p bu t notice fro m reviewin g AirChoiceOne' s bid s a t Decatu ran d Burlingto n that i n that bi d proces s anothe r carrie rbi d $1,802,93 9 les s pe ryea rtha n AirChoiceOn e an d di d no t win . Thu s w

e are confuse d a

s t o whe n budget constraint s appl yan d whe n theyd o not . We hope , an d ou r congressiona l delegatio n share s ou rhope , that thi s i s no t a cas e wher

e budget constraint s appl yi n Michiga n EA S bu t no

t i n Iow a o rIllinoi s EAS . I n th e Decatur/Buriingto n cas e th e DO T said ; "Whil e w

e acknowledg e that Cap e Ai rrequire s fewe rsubsidies , bot h communitie s strongl ysuppor t AirChoiceOne... " I f communit y comments the n d o matte rtha t much , we hop e our s d o too . Th e Departmen t als o remind s u s i n th e Februar y1 7 lette rthat i t i s urgen t t o replace Delta . Th e fou rDelta EA

S citie s i n th e southeast ; Greenville , Hattiesburg , Muscl e Shoal s an d Tupelo , ar

e movin g t o a fourt h roun d o f bidding . Delta remain s i n thos e citie s wit h paire d servic e pattern s tha t allow tw o RJ' s t o serve fou rcities . W e note that Delta has move d Alpen a t o a paire d servic e patter n wit h Pellston , wit h DO T approval . We als o not e that Delta , whe n mergin g wit h Northwest , mad e man ypromise s t o retai n Northwes t Airline s service t o smal l communities . Whil e thes e promise s wer e no t apparentl ylegall y binding , th e rus h o

f Delt a t o abando n Alpen a ca n perhap s take a paus e whil e w e fin d a replacemen t carrier . Afte rth e summe ro f 2012 , Delt a coul d rever t t o th e curren t Pellsto n

- Alpen a - Detroi t routin g fo rth e winte ro f 201 2 - 201 3 an d us e th e sam e amoun t o f aircraf t t o serve bot h citie s a

s i t woul d fl yanywa

ywit h onl yPellston . We understan d that Delt a i s leavin g us , we jus t nee d som e time , measure d i n months , t o fin d a replacemen t carrier . 

# ALKN A ilCHIOAtfSAOVB^SHOR EI n summary , w e are doin g everythin g w

e ca n t o fin d a suitabl e EA S carrie rfo rAlpena . We hav e visite d SkyWes

t Airline s (an d theystrongl yconsidere d biddin g i n th e third round ) an d w e hav e bee n i n contac

t wit h America n Eagl e Airlines . We are i n active discussion s wit h Publi c Charter s an d ar e watchin g ho

w th e Departmen t wil l respon d t o Manistee' s proposa l fo r"alternativ e EAS " usin g that carrier . A t som e point , lega l definition s mus t give wa yt o commo n sense . Perhap s i n Alask a there ar e EA S route s wher

e Pipe rNavajo s o rsimila raircraf t fl ytwo hou rflights . Alpen a i s no t i n Alaska . Ho w th e spiri t an d inten t o

f th e EA S progra m ca n b e s o turne d a s t o defin e a two hou rplu s fligh t o n a Pipe rNavaj o o n a n airlin e lackin g basi c interlin e agreements a s a "legal " bi d escape s me . I t woul d b e shor

t sighte d o

f th e Departmen t t o rus h t o a clearl yinadequat e bi d b ya carrie rthat i s o n som e for m o

f probatio n wit h th e Department , wit h a n implicatio n that th e entire AirChoiceOn e rout e syste m migh t b e re-bi d i n Januar yo f 2013 . I t woul d b e shor t sighte d t o rus h t o thi s inadequat e bi d whe n th e Maniste e "alternativ e EAS " proposa l i s stil l pending . Perhap s th e Maniste e /

Publi c Charter

s concep t wil l allow a reasonabl e alternative t o emerg e fo rAlpena . Th e fou rDelt a citie s i n th e southeast ar e gainin g a fourt h bi d cycle . Delta , wit h it s flee t o f ove r 1,000 airplane s ca n continu e t o sen/ e Alpen a vi a pairin g wit h Pellsto n (of f season ) an d us e th e sam e numbe ro

f aircraf t a s i t woul d t o serve Pellsto n alone . Thus , we rejec

t al l AirChoiceOn e bid s as inadequate , eithe rb ydefinitio n o rb

ycommo n sense . W e appreciat e th e carrier' s interes t i n Alpena . W e request a fourt h bi d cycl e an d that th e Departmen t mov

e a s promptl yas i t ca n t o clarif yth e statu s o

f th e Maniste e alternativ e EA S proposal . Bes t regards , Matthew J . Waligora Mayo r



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