From: Muldoon, Albert (OST)

To: "Larry Dalrymple"; Phillip Houk (Phillip.Houk@ci.pendleton.or.us); " (backdoc@wtechlink.us)"; "Robb Corbett

(Robb.corbett@ci.pendleton.or.us)"

Cc: Devany, Dennis (OST) (Dennis.DeVany@dot.gov); Tim Sieber; Sovereign Air, Bob Karns

(Bob@Sovereignairinc.com)

Subject: EAS at Pendleton, OR - Request for Comments - Due November 9, 2012

Date: Friday, October 05, 2012 1:06:52 PM

Attachments: SeaPort PDT EAS proposal 10-3-2012 FINAL.pdf

Sovereign - PENDLETON EAS PROPOSAL 2012.pdf

All:

I would like to update you on the Essential Air Service (EAS) situation at Pendleton, OR, and

give you an opportunity to submit comments on the record before we submit a

recommendation to the Assistant Secretary for Aviation and International Affairs. On August

10, 2012, the Department issued Order 2012-8-13 soliciting proposals from carriers to

provide EAS at Pendleton, OR for a new contract period beginning January 1, 2013. In

response to that Order, we received proposals from two carriers: Sovereign Air, Inc.

(Sovereign) and SeaPort Airlines, Inc. (SeaPort).

I have attached copies of the proposals to this email. The proposals can also be accessed

online through the Federal Dockets Management System at www.regulations.gov by entering

“DOT-OST-2004-19934” in the search box. For your convenience, I will briefly summarize

the proposals below.

Sovereign proposed two service options for Pendleton. The first option would provide service

with three daily round trips to Portland International Airport (19 total per week [sic]) with

19-passenger Jetstream 31/32 aircraft. Sovereign would require an annual subsidy of

$1,669,692. Sovereign’s second service option would provide three daily round trips to

Portland (21 total per week) with nine-passenger King Air 100/200 aircraft. This service

option would require an annual subsidy of $1,500,117. Please be aware that Sovereign does

not currently have the requisite operating authority from the Federal Aviation Administration

or the Department.

SeaPort has also proposed two service options for Pendleton. Both service options would be

operated with nine-passenger single engine Cessna Caravan aircraft. The first option would

provide 22 weekly round trips (21 subsidized with an additional unsubsidized round trip) to

Portland. This option would require a first-year subsidy of $1,834,708, increasing to

$1,926,444 in the second year. The second service option proposed would consist of the

same service pattern, but would be for a four-year term. The annual subsidy would be equal

to the second year subsidy under the first service option ($1,926,444), for all four years. Note

that since we would not subsidize the 22nd weekly round trip, we could not require that the

carrier provide it.

The schedules that the carriers have proposed are illustrative only, and they may make

schedule changes to reflect changing conditions (e.g. to better meet shifting connecting bank

times at the hub). The Department expects subsidized carriers to maintain well-timed and

well-spaced flights in order to ensure full compensation.

We request that you review each proposal and submit any comments you may have as soon

as possible, but no later than November 9, 2012. We will carefully consider your comments

before we submit a recommendation to the Assistant Secretary for a decision.

Please send your comments via email to EAS@dot.gov or by fax to (202) 366-7638. If you
have any questions, please feel free to contact A.J. Muldoon of my staff at

albert.muldoon@dot.gov or (202) 366-1058.

Sincerely,

Dennis J. DeVany

Chief, Essential Air Service Division, X-53

Office of Aviation Analysis