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February 18,201 1 Vi aFax : (308 ) 762-784 8 Th e Honorabl e Fre dFeldge s Mayo r o f th e City o f

Allianc e 32 4 Larami e Av e P.O
. Bo x D Alliance , N E 6930 1 Dea r Mayo r Feldges : I woul dlike t o updat e you o n th e essentia l ai r servic e situatio n a

t Allianc e an d Chadro n an dgiv e yo u a

n opportunit y t o submi t

an y comment s i

f you wish
. A s yo u know , b y Orde r

2011-1-10 , Januar y 14 , 2011 , th e Departmen t solicite dproposal s fromal l intereste dai r

carrier s t o provid e servic e a t Allianc e an dChadron , Nebraska , fo r ane w two-year ter mbeginnin g Jun e I , 2011
. A t thi s stage , w e woul dnormall y as k for your preference s for

variou s carrie r

an dservic e options
. However , i n respons e t o that order
. Great Lake s Aviatio n (Great

Lakes) , th e incumbent , wa s th e onl y carrie r t o submi t

a proposal
. Nonetheless , w e wan t t o giv e yo u a

n opportunit y t o submi t

an y fina l comment s fo r th e recor dthat

yo u ma y have
. A cop y o f

Grea t Lakes ' proposa l may b e accesse d onlin e Federa l Docke t

Managemen t

Syste m(FDMS ) at : http://www.regulations.gov / b y enterin g DOT-OST-2000-8322
. Great Lake s propose s t o continu e it s two-round-trip-a-da y servic e pattern a t Allianc e an dChadro n for

a n annua l subsid y o f

$2,217,401
. Service woul db e operate dwith19

- seat Beechcraf

t 1900 D aircraft
. W e ar e currentl y reviewin g Great Lakes ' compensation requirement
. Pleas e not e tlia

t th e averag e passenge r

fare s show n i n th e proposa l d o no t necessaril y reflec t th e averag e loca l far

e Allianc e passenger s woul dactuall y pay , but , rather , reflec t a prorate dportio n of

th e total ticke t

price , e.g. , th e Allianc e - Denve r o f a n Allianc e - Denve r - Washington , D.C
. ticke t tha t th e subsidize dcarrie r

woul drealize
. Also , th e fare show n i s ne t

o f certai n charge s suc ha s Federa l transportation security 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 dee mappropriate , an dth e passenge r fare s presente di

n thei r proposal s- 2 -

hav e bee n develope dfor

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 summaries , Grea t Lake s 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 shouldals o not e tha t th e schedul e that

th e carrie r

ha s submitte di s illustrativ e only , an dthat

the y ma y mak e schedul e change s t o reflec t changin g conditions , e.g. , t o bette r mee t shiftin g connectin g ban k time s at th e hub
. Th e Departmen t expect s subsidize dai r

carrier s t o maintai n well-time dan dwell-space dflight s i n orde r t o ensur e full compensation
. W e as k tha t you submi t

any comment s yo u may hav e a s soo n a s possible , bu t i n any cas e n o late r

tha n Marc h17 , 2011
. W e wil l carefull y conside r you r comment s before w e submi t arecommendatio n t o th e Assistan t Secretary fo

r adecision
. Shoul dyo u hav e an y question s o r

nee dadditiona l tim e t o draf t you r comments , pleas e let

u s know
. Pleas e sen dyou r

comment s vi ae-mai l t o EAS@dot.go v o r b y fa x t o 202-366-7638
. I

f you hav e an y questions , pleas e feel fre e t o contac t Kevi n Schlemme r

o f m y staf f a t kevin.schlemmer@dot.go v o r 202-366-3176
.
Sincerely , 

# •ASJ'

Dermi s J
. DeVan y Chief , Essentia l Ai r

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