### Schlemmer, Kevin (OST) From: Sent: To: Cc: Subject: Attachments: 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: Iwould like to update you on the Essential Air Service (EAS) situation at El Dorado, Harrison, and Hot Springs, and give you an opportunityto submit comments ifyou wish. In anticipation ofthe end ofSeaPort's current contract on October 31, 2011, the Department issued Order2011-4-15 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 forJonesboro, but we will deal with thatsituation 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

perweek**Subsid~** Aircraft ElDorado 12-DAL

### & 6-MEM 

### $ 2,436,074 Pilatus PC-12 Harrison 12-MEM

### & 6 MCI 

### $ 2,080,318 Pilatus PC-12 HotSprings (option 1) 12-DAL

### & 6 MEM 

### $ 2,116,435 Pilatus PC-12 HotSprings (option 2) 12- DAL ( 1nonstop 

### &) 

### $ 1,474,388 Pilatus PC-12 1one-stop)

6- MEM AirChoice One proposes service using 9-passenger Cessna Grand Caravan aircraft (summarized below).

El Dorado and HotSprings Harrison #round trips perweek/Hub 18-DFW

18- STL Annual**Subsid~** Aircraft 

### $ 4,321,925 Caravan 

### $ 1,759,777 Caravan Copies ofboth 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 notethat 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 ofthe total ticket price (e.g., the HarrisonMemphis portion ofa Harrison- Memphis- Washington, D.C. ticket) thatthe subsidized carrierwould realize. Also, the fare shown is net ofcertain charges such as Federal transportation securityfees, excise ortickettaxes, and Passenger Facility Charges. Ofcourse, 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 carrierwould have to realize passenger fares comparable to the averages shown in their proposals in orderto achieve break-even or profitable operationswithout subsidy. You should also notethatthe carriers' schedules may change to reflect changing conditions (e.g., to better meet shifting connecting bank times atthe hub). The Departmentexpects subsidized air carriers to maintain well-timed and wellspaced flights in orderto ensure full compensation. We request thatyou submit any commentsyou may have as soon as possible, but in any case no laterthan 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. Ifyou have any questions, or need more time to reply, please feel free to contact Kevin Schlemmerof my staffat 202-366-3176. Sincerely, DennisJ. DeVany Chief, Essential Air Service Division, X-53 Office ofAviation Analysis

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