# GreenbrierValley Airport and Industrial Park P.O. Box329 •Lewisburg, WV24901 (304) 645-3961 • Fax (304) 645-4683



### "LongestRunwayIn 

### West Virginia"

May 9, 2012 Mr. Dennis DeVany Chief, Essential AirService Division Office ofAviation Analysis Department ofTransportation 1200 NewJersey Avenue SE, Washington, D.C. 20590 Reference; DOT-OST-2003-15553. 

### JERRYO'SULLIVAN 

### Manager

•.J.;)

Essential Air Service at Greenbrier/White Sulphur Springs, West Virginia Dear Mr. DeVany, This letter is the response ofthe Greenbrier Valley Airport in Lewisburg, West Virginia to the Essential Air Service request for proposals. The airport appreciates the ability to respond and the consideration thatthe Departmentgivesto our response. Our Endorsement The Airport strongly endorses, without reservation, that Silver Airways is awarded the Essential Air Service contract atGreenbrierValley Airport. The Only Bidder Silver Airways was the only carriertooffera bid for Essential Air Service to GreenbrierValley Airport. As we outline below, we believe this bid is acceptable and fits the selection criteria and precedence established by the Department in relationship to Essential Air Service. Finally, should this bid be rejected and another request for proposals be issued, the likelihood ofastronger bid is low. Funding Level We recognize that the funding level requested by Silver Airways, when considered ind-ividually, is unusual. However, in its bid Silver has indicated that its bid for service to Greenbrier Valley Airport is inseparable from its bid for ser:vice to Greenville, Laurel/Hattiesburg, and Tupelo, Mississippi, and Muscle Shoals, Alabama. Therefore, our view is that Option 1 represents a subsidy request of $3.35 million per community and Option 2 represents a subsidy request of $2.95 million per community. These per community subsidy levels are significant, but are likely driven by the soaring cost offuel and othercosts such as high airportfees. SilverAirways' "All or Nothing" Apgroach with Mississippi and Alabama Cities



### Closestmajorairportto The Greenbrier, The Homesteadand

### SnowshoeresortsThe Greenbrier Valley Airport is supportive of the**multi~airport** "all or nothing" proposal of Silver Airways. To the extent thatjoint proposal with Greenville, Laurel/Hattiesburg, and Tupelo, Mississippi, and Muscle Shoals, Alabama creates a network which can be economically supported 

### by SilverAirways, we support Silver's bid for the othercities. In fact, many ofthe advantages Silver brings to the bid for service to Lewisburg it also provides to the other four cities making this a strong proposal for all five communities. Service to Atlanta, Georgia Silver proposes service to Atlanta, Georgia under its own independent brand with a "close Interline relationship" with Delta Air Lines. This arrangement is acceptable to the Airportfor numerous reasons: 1. Atlanta provides an excellent gatewayto mostofour major markets and most ofthe national and international airservice networkvia the world's largest single airline hub. 2. Silver's proposed "close Interline relationship" 

### will allow forsingle tickets, baggage transfers, and SkyMiles accrual similartothe service we've had recently. 3. Atlanta is an important marketto ourcommunity. Option 1Versus Option 2 For the reasons stated above, Greenbrier Valley Airport is strongly encourages the Department to accept the Silver Airways proposal for Essential Air Service at Greenbrier/White Sulphur Springs. However, because our service levels are identical in Option 1 and Option 2, which option is chosen is largely inconsequential to our community. We preferOption 2 only because it requires a lowersubsidy per community ($2.95 million) versus Option 

### 1. However, Option 1 is acceptable to Greenbrier Valley Airport should**th~t** option be preferableto the otherairports, communities orthe Department. Service Alternative In the event that Silver Airways and the Department decide to negotiate a service alternative, the Airport will support certain proposals. Specifically, the Airport will support a proposal which includes one daily roundtrip flight to Atlanta, Georgia and one daily roundtrip flight to Washington Dulles International Airport in Chantilly, Virginia ("Dulles"). The flights to Atlanta should operate under the same conditions as in Silver's Lewisburg proposal. The Airport only supports a new flight to Dulles 

### if Silver can operate the flights via a code share with United Air Lines in an arrangement similar to other EAS proposals Silver has recentlyfiled with the Departmentforservice from Dulles International Airport. Conclusion The GreenbrierValley Airportstrongly recommends thatthe Department award the Essential AirService contract for Greenbrier/White Sulphur Springs, West Virginia to Silver Airways. There were no other bidders for service to our community, and the likelihood of a superior bid through an additional RFP is low. The flights to be provided underthis proposal will adequately serve our largest markets. Throughmarketing relationships with the major carriers, Silver will be able to offer single-ticket itineraries to hundreds ofdestinationsthrough its partners' large 

### hubs. We lookforward to asuccessful conclusion to the Essential Air Service bid for Greenbrier/White Sulphur 

### Springs, West Virginia, 

### and beginning to workwith SilverAirways to

### establish service as soon as possible. Best regards,



### J 

### ry O'Sullivan Airport Manager GreenbrierValleyAirport