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iien«»#«t»ianfn{ Assistant Secretary ' t200 NewJers^Ave.,S.E. 

U.S.Depcrtinenl OI -i Washington, OC 2OSS0 

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Office of the Secretary ' *' 

ofTransportcrtlon ^^ ^ j ^ ^010 

The Honorable James L. Oberstar 

Chainnan, Committee on Transportation 

And Infrastructure _; 

U.S. House of Representatives 

Washington, DC 20515 

Dear Mr. Cnairman: 

Thank you for your letter supporting the proposal submitted by the Duluth Airport 

Authority for a grant under the Small Community Air Service Development Program 

(Small Commimity Program). The Secretary has asked me to reply. 

The Small Community Program was established to help smaller communities address an* 

service deficiencies, particularly issues related to high airfares and insufficient service. 

Congress appropriated $8 million for grant awards under this program in 

Fiscal Year 2009. Under the statute, the U.S. Department of Transportation may use the 

funds to make a maximum of 40 grant awards each year, although no more than four may 

be to communities in the same State. In order to provide communities with latitude in 

developing solutions to their air service problems, the statute provides significant 

flexibility in how the financial assistance may be used. 

Given the large number of applications and the limitations in the law, it was necessary to 

make a nimiber of very difficult decisions. Unfortunately, Duluth was not selected for 

one of the grant awards. However, the Department congratulates Duluth on achieving the 

primary objective of its Small Community Program grant application independent of 

Federal funding. As you may know. United Airlines commenced twice-daily nonstop 

service between Duluth and Chicago on December 18,2009. United's new air service 

expands both domestic and international destinations for your constituents. 

As is our normal practice, I am placing a copy of your letter and this response in Docket 

OST-2009-0149 as a contact outside the record of this matter. I appreciate your interest 

in this program. 

Sincerely yours. 

' Susan L. Kurland 

Assistant Secretary for 

Aviation and International Affairs 

C 5 

O 
JAMES L OBERSTAR 

, , O 1, , , lii'Ar.l-. ^ ...!Y HiWA-.H,f, , n;^^_ 3r, ;'{'M!\ /j.j s 

Congress of the United States 

CHAIRMAN iioiis t of 7\tprcscntariuc3 

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August 1 1, 2009 o^8!7J ^ ;dM 

3367S 1-It?. A,I.N. . 

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The lU.SIl ?77 \2-i4 Honorable Ray LaHood 

Secretary 

U.S. Department of Transportation 

1200 New Jersey Ave, SE 

Washington, D.C 20590 

Dear Mr. Secretary: 

I am writing to express my strong support for the Small Community Air Service Development 

Program application submitted by the Duluth Airport Authority. Travelers in northeastern Minnesota 

and northwestem Wisconsin have been hit hard with the merger between Delta and Northwest Airlines 

over the past year. Airline seats have been reduced by 44.7% and airfares have increased 27% between 

September 2008 and September 2009. This has resulted in tremendous heu'dship on the community and 

airport as passenger leakage to the Minneapolis St. Paul International Airport has increased 

substantially. The $600,000 grant requested by my constituents will help fund an exciting plan to 

enhance air service in northeastern Minnesota and northwestem Wisconsin. 

The objective of the proposal is two-fold. First, to bring competition to the region which will 

moderate the high air fares and lack of seats experienced in Duluth, stimulate demand and reduce 

leakage to the Minneapolis hub. Secondly, the successful introduction of targeted service to Chicago, 

and beyond points will further stimulate the market which in turn will provide opportunities for 

additional destinations in the future. Letters of commitment have already been received from Express 

Jet and Sky West Airlines to provide this service upon grant award. 

This submission by my constituents in northeastern Minnesota represents a prudent use of 

federal transportation dollars. I urge you to give every consideration to this important application. 

With best wishes. 

Sincerely, 

Jafiies L. Oberstar, M.C. 

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