### U.S.Department of Transportation Office ofthe Secretary ofTransportation ! i

# s,bi~•£5;:'**~;a~e,** WY


### '"""' Dennis J.

# De~ EAS and Domestic Analysis, X-53

To: 

### Gregory Frazier

Reference: Order 2012-08-08 Date: January 14, 2013
Reply to Michael Martin, X-53 

### Attn. Ext. 66494 

### of:

Great Lakes' EAS contract at Laramie expired on September 30, 2012. SkyWest was selected to provide EAS afterthat date. SkyWest notified us that they would notbe able to begin full EAS service until November4, 2012. Consistent with establishedprogram policy, we typically use an air carrier's prospective proposal that was submitted during the competitive bidprocess to establish a bridge rate until the new air carrier inaugurates service. See Appendix C for the final rate for Great Lakes' service at Laramie for the period from October 1, 2012, throughNovember4, 2012.

cc: Great Lakes Aviation, Ltd. Airport Manager, Laramie Regional Airport

# Great Lakes Aviation, Ltd. Annual Compensation Requirements for Essential Air Service at 

### Laramie, Wyoming to Denver {DEN) Three Round Trips- 81900 (at 98 percent completion) Departures: Block Hours: Revenue Passenger**Mi~es:** Available Seat Miles: Operating Revenues: Passenger: LAR-DEN 16,250 psgrs at $99.24 $1,612,650

Other: (at 0.62% ofpassenger revenue) Total Operating Revenues: Operating Expenses: Direct Aircraft and Hun Insurance Fuel and Oil Flying Operations Maintenance Total Direct Expenses: Total Indirect Expenses: Total Operating Expenses: Operating Loss Profit Element (5.0% ofTotal Operating Expenses) Annual Compensation Requirement: $9,998

$365,710 $822,984 $238,541 $450,708

Current tmblished schedules should be used as sample service levels. Afl Laramie -Denver- Laramie service is non-stop. This Proposal is submitted with no upline scheduling restrctions. 

## Appendix B

1,840 1,362 2,137,500 3,985,440

$1,622,648

$1,sn,942 $1,130,308 $3,008,250 ($1 ,385,602) $150,413 $1,536,014

### SkyWestAirlines EssentialAir Service to be Provided at Laramie, Wyoming Effective Period: October 1, 2012 throughNovember 4, 2012 Scheduled Service: 18 weekly round trips to Denver Aircraft: 19-passengerBeechcraft 1900 aircraft Rate perEligible Flight: $837 1 

### Weekly Ceiling for each community: $30,1322 

### Appendix C

Note: The carrierunderstands that it may forfeit its compensation for any flights that it does not operate in conformance with the terms and stipulations ofthe rate Order, includingthe service plans outlined in the Order and any other significant elements ofthe required service, without prior approval. The carrier understands that an aircraft take-offand landing at its scheduled destination constitutes a completed flight; absent an explanation supporting subsidy eligibility for a flight thathas notbeen completed, such as certainweather cancellations, only completed flights are considered eligible for subsidy. In addition, ifthe carrier does not schedule or operate its flights in full conformance with the Order for a significant period, it mayjeopardize its entire subsidy claim for the period in question. Ifthe carrier contemplates any such changes beyond the scope ofthe Orderduring the applicable period ofthis rate, it must first notify the Office ofAviation Analysis in writing and receive written approval from the Departmentto be ensured offull compensation. Should circumstances warrant, the Department may locate and select a replacement carrierto provide service on these routes. The carriermust complete all flights that can be safely operated; flights that overfly points for lack oftraffic will not be compensated. In determining whether subsidy payment for a deviating flight should be adjusted or disallowed, the Departmentwill considerthe extent to which the goals ofthe program are met and the extent ofaccess to the national air transportation system provided to the community. Ifthe Department unilaterally, either partially or completely, terminates orreduces payments for service or changes service requirements at a specific location provided for underthis Order, then, at the end ofthe period for which the department does make payments in the stipulated service levels, the carriermay cease to provide service to that specific location without regards to any requirement for notice ofsuch cessation. Those adjustments in the levels ofsubsidy and/or service that are mutually agreed to in writingbythe Department and carrier do not constitute a total orpartial reduction or cessation ofpayment. Subsidy contract are subjectto, and incorporate by reference, relevant statutes and Departmentregulations, as they may be amended from time to time. However, any such statutes, regulations, or amendments thereto shall not operate to controvertthe foregoing paragraph. Funds are not currently available for performance under this Orderbeyond March 27, 2013. The Government's obligation for performance underthis Orderbeyond March 27, 2013, is subject to the availability ofappropriated funds from which payment for services can be made. No legal liability on the part ofthe Government for any paymentmay arise for performance underthis Orderbeyond March 27, 2013, until funds are made available to the Department for performance. Iffunds are not made available for performance beyond March 27, 2013, the Department will provide notice in writing to the carrier. All claims for payment mustbe submitted within 60 days ofthe last day ofservice provided underthis Order.

1Annual compensation of$1,536,014 divided by 1,835 annual departures (36 weekly departures x 52 weeks x 98 percent completion). 2 36 arrivals and departures perweek multiplied by $837 per flight.