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## Before the United States DepartmentofTransportafforf - 

# Washington, DC December5, 2011

EssentialAirService at: Rhinelander, Wisconsin Ironwood, Michigan/Ashland,Wisconsin under49 U.S.C. 41731 et.seq. DocketOST-2011-0109 DocketOST-1996-1266

This document contains the response ofGreat LakesAviation, Ltd. to Order Requesting Proposals 2011-10-15. Great LakesAviation, Ltd. is pleased to submitthese proposals to provide essential air transportation tothetwo communities addressed in the Orderas stand alone proposals. Great LakesAviation, Ltd. has morethan 25 years of history ofproviding reliable EssentialAir Service. This proposed service is being offered with local service marketed and priced utilizing the Great Lakes (ZK) Reservations system which includes customerticket purchasing capability on both Great Lakes web site and on all majorWeb Booking Engines (Orbitz, Travelocity, Expedia, etc.) Great Lakeswill be utilizing interline a-ticketing and baggage agreements with American Airlines, DeltaAirlines, FrontierAirlines, United Airlines and U.S. Airways. All ofwhich will offer passengers maxium accessto the domestic and international airtransportation system atthe Minneapolis hub. Great Lakes and DeltaAirlines are coordinating an upgrade ofelectronic communication systems to enable Great Lakes to provide Delta boarding passes and Sky Miles processing. Delta and Great Lakes also intend to enable the sale ofGreat Lakes' passenger segments on the Delta websitefor added passengerconvenience. These reservation system upgrades are anticipated to be completed in the Spring of2012. These proposals contemplate the use ofpressurized 19 seat Beech 1900D's, which Great Lakes has had a 24 year history ofoperating. Questions and comments may be referred to: Michael Matthews Chief Financial Officer Great LakesAirlines 1022 Airport Parkway Cheyenne, VVY 82001 (307) 432-7000

### Table ofContents: Proposal Subsidy Passengers Average Number Service Point(s) Hub(s) Served Round Trips Equipment Requirement Forecast Fare 

### 1 Rhinelander,Wisconsin MSP 

### 3 19000 $1,410,250 22,000 $104.07 2 Ironwood, Michigan MSP 

### 2 19000 $1,747,326 6,000 $87.92

# Great Lakes Aviation, Ltd. Annual Compensation Requirements for Essential Air Service at 

## Rhinelander, Wisconsin to Minneapolis/St. Paul ( MSP ) Three RoundTrips- 81900

98.0% completion factor Departures: Block Hours: Revenue Passenger Miles: Available Seat Miles: Operating Revenues: Passenger: RHI-MSP 22,000 psgrs at $104.07 $2,289,540

Other: (at 0.62% ofpassenger revenue) $14,195 Total Operating Revenues: Operating Expenses: Direct: Aircraft and Hull Insurance Fuel and Oil Flying Operations Maintenance $365,710 $1,126,373

$322,258 $516,562 Total Direct Expenses: Total Indirect Expenses: Total Operating Expenses: Operating Loss Profit Element (5.0% ofTotal Operating Expenses) Annual Compensation Requirement: *** [RHI] RHINELANDER,WISCONSIN ***

---------- D E P A R T U R E S ---------- FL T OPT ARR TO EQP FREQ 2721 600 700 MSP BE1 Daily 2705 1145 1245 MSP BE1 Daily 2709 1515 1615 MSP BE1 Daily 

### ---------A R R IV A L S ---------- FL T EQP FREQ FROM OPT ARR 2724 BE1 Daily MSP 1030 1130 2726 BE1 Daily MSP 1400 1500 2728 BE1 Daily MSP 1930 2030 No Upline Scheduling Restrictions 1,840 1,840 4,180,000 6,642,400

$2,303,735

$2,330,902 $1,206,227 $3,537,129 ($1 ,233,394) $176,856 

### $1,410,250

# Great Lakes Aviation, Ltd. Annual Compensation Requirements for Essential Air Service at 

## Ironwood, Michigan to Minneapolis/St. Paul ( MSP ) Two Round Trips- 81900

98.0% completion factor Departures: Block Hours: Revenue Passenger Miles: Available Seat Miles: Operating Revenues: Passenger: IWD-MSP 

### 6,000 psgrs at $87.92 $527,520

Other: (at 0.62% ofpassenger revenue) $3,271 Total Operating Revenues: Operating Expenses: Direct: Aircraft and Hull Insurance Fuel and Oil Flying Operations Maintenance $182,855 $765,079 $214,897 $344,468 Total Direct Expenses: Total Indirect Expenses: Total Operating Expenses: Operating Loss Profit Element (5.0% ofTotal Operating Expenses) Annual Compensation Requirement: 

### "** [IWD] IRONWOOD, MICHIGAN 

### ***

---------- D E P A R T U R E S ----------- FLT OPT ARR TO EQP 

### 2702 945 1045 MSP BE1 2708 1615 1715 MSP BE1

----------- A R R I V A L S ----------- FLT EQP FREQ FROM OPT 

### 2703 BE1 Daily MSP 830 2707 BE1 Daily MSP 1500
No Upline Scheduling Restrictions FREQ 

### 123456 12345 7

ARR 

### 123456 12345 7 1,227 1,227 1,122,000 4,359,531

$530,791

$1,507,299

$662,336 $2,169,635 ($1.638,844) $108,482 $1,747,326