Schlemmer, Kevin (OST) 

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Schlemmer, Kevin (OST) 

Friday, September 09, 2011 4:24 PM 

'Judy McCutcheon'; 'boonecountyjudge@ alltel.net'; 'boonejudge @windstream .net'; 'George 

Downie'; 'mayor@eldoradoar.org'; 'Jeff Teague'; 'ruthcarneymayor@aol.com'; 

'mayor@cityofharrison.com'; 'lhudnell@cityhs.net' 

Devany, Dennis (OST); 'Rob McKinney'; 'shane@airchoiceone.com' 

Soliciting comments on EAS proposals 

SeaPort-Ark.pdf; Air Choice One-Ark-HOT-ELD.pdf; Air Choice One-Ark-HRO-JBR.pdf 

Mayors and Airport Managers of El Dorado, Harrison, and Hot Springs: 

I would like to update you on the Essential Air Service (EAS) situation at El Dorado, Harrison, and Hot Springs, and give 

you an opportunity to submit comments if you wish. 

In anticipation of the end of SeaPort's current contract on October 31, 2011, the Department issued Order 2011-4-15 on 

April 15, 2011. Because the proposals did not address the high per-passenger subsidy at Hot Springs and Jonesboro, the 

Department issued 2011-6-25 on June 27, 2011, re-soliciting proposals from all interested air carriers. Proposals were 

also solicited for Jonesboro, but we will deal with that situation separately. In response to that Order, SeaPort and Air 

Choice One submitted proposals. 

SeaPort, the incumbent carrier, submitted proposals for El Dorado, Harrison, and Hot Springs, utilizing 9-passenger 

Pilatus PC-12 aircraft. SeaPort's proposals are summarized in the table below: 

#round trips Annual 

per week Subsid~ Aircraft 

ElDorado 12-DAL & 6-MEM $ 2,436,074 Pilatus PC-12 

Harrison 12-MEM & 6 MCI $ 2,080,318 Pilatus PC-12 

Hot Springs (option 1) 12-DAL & 6 MEM $ 2,116,435 Pilatus PC-12 

Hot Springs (option 2) 12- DAL ( 1 nonstop &) $ 1,474,388 Pilatus PC-12 

1 one-stop) 

6- MEM 

Air Choice One proposes service using 9-passenger Cessna Grand Caravan aircraft (summarized below). 

El Dorado and 

Hot Springs 

Harrison 

#round trips 

per week/Hub 

18-DFW 

18- STL 

Annual 

Subsid~ Aircraft 

$ 4,321,925 Caravan 

$ 1, 759,777 Caravan 

Copies of both carrier's proposals are attached and may also be accessed online through the Federal Docket 

Management System (FDMS) at: http://www.regulations.gov/ by entering DOT-OST-1997-2935. 
Please note that the average passenger fare shown its proposal does not necessarily reflect the average local fare 

passengers would actually pay, but, rather, reflect a prorated portion of the total ticket price (e.g., the HarrisonMemphis portion of a Harrison- Memphis- Washington, D.C. ticket) that the subsidized carrier would realize. Also, the 

fare shown is net of certain charges such as Federal transportation security fees, excise or ticket taxes, and Passenger 

Facility Charges. Of course, carriers have the discretion to charge fares they deem appropriate, and the passenger fare 

presented in the proposal has been developed for subsidy rate computation purposes only. Based on the cost elements 

incorporated in the carrier's computation summary, the carrier would have to realize passenger fares comparable to the 

averages shown in their proposals in order to achieve break-even or profitable operations without subsidy. 

You should also note that the carriers' schedules may change to reflect changing conditions (e.g., to better meet shifting 

connecting bank times at the hub). The Department expects subsidized air carriers to maintain well-timed and wellspaced flights in order to ensure full compensation. 

We request that you submit any comments you may have as soon as possible, but in any case no later than September 

27, 2011. Please send your comments by fax to 202-366-7638 or by email to both dennis.devany@dot.gov and 

kevin.schlemmer@dot.gov. If you have any questions, or need more time to reply, please feel free to contact Kevin 

Schlemmer of my staff at 202-366-3176. 

Sincerely, 

Dennis J. DeVany 

Chief, Essential Air Service Division, X-53 

Office of Aviation Analysis 

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