U.S. Department of 

Transportation 

Office of the Secretary 

of Transportation 

! i 

s,bi~•£5;:' ~;a~e, WY 

'"""' 

EAS 

Dennis 

and 

J. 

Domestic 

De~ 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 after that date. SkyWest notified us that they would not be able 

to begin full EAS service until November 4, 2012. Consistent with established program 

policy, we typically use an air carrier's prospective proposal that was submitted during 

the competitive bid process 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, through November 4, 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% of passenger 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% of Total 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 
SkyWest Airlines 

Essential Air Service to be Provided at Laramie, Wyoming 

Effective Period: October 1, 2012 through November 4, 2012 

Scheduled Service: 18 weekly round trips to Denver 

Aircraft: 19-passenger Beechcraft 1900 aircraft 

Rate per Eligible Flight: $8371 

Weekly Ceiling for each community: $30,1322 

Appendix C 

Note: The carrier understands that it may forfeit its compensation for any flights that it does not operate in 

conformance with the terms and stipulations of the rate Order, including the service plans outlined in the Order and 

any other significant elements of the required service, without prior approval. The carrier understands that an 

aircraft take-off and landing at its scheduled destination constitutes a completed flight; absent an explanation 

supporting subsidy eligibility for a flight that has not been completed, such as certain weather cancellations, only 

completed flights are considered eligible for subsidy. In addition, if the carrier does not schedule or operate its 

flights in full conformance with the Order for a significant period, it may jeopardize its entire subsidy claim for the 

period in question. If the carrier contemplates any such changes beyond the scope of the Order during the 

applicable period of this rate, it must first notify the Office of Aviation Analysis in writing and receive written 

approval from the Department to be ensured of full compensation. Should circumstances warrant, the Department 

may locate and select a replacement carrier to provide service on these routes. The carrier must complete all 

flights that can be safely operated; flights that overfly points for lack of traffic will not be compensated. In 

determining whether subsidy payment for a deviating flight should be adjusted or disallowed, the Department will 

consider the extent to which the goals of the program are met and the extent of access to the national air 

transportation system provided to the community. 

If the Department unilaterally, either partially or completely, terminates or reduces payments for service or 

changes service requirements at a specific location provided for under this Order, then, at the end of the 

period for which the department does make payments in the stipulated service levels, the carrier may cease 

to provide service to that specific location without regards to any requirement for notice of such cessation. 

Those adjustments in the levels of subsidy and/or service that are mutually agreed to in writing by the 

Department and carrier do not constitute a total or partial reduction or cessation of payment. 

Subsidy contract are subject to, and incorporate by reference, relevant statutes and Department regulations, as they 

may be amended from time to time. However, any such statutes, regulations, or amendments thereto shall not 

operate to controvert the foregoing paragraph. 

Funds are not currently available for performance under this Order beyond March 27, 2013. The Government's 

obligation for performance under this Order beyond March 27, 2013, is subject to the availability of appropriated 

funds from which payment for services can be made. No legal liability on the part of the Government for any 

payment may arise for performance under this Order beyond March 27, 2013, until funds are made available to the 

Department for performance. If funds are not made available for performance beyond March 27, 2013, the 

Department will provide notice in writing to the carrier. 

All claims for payment must be submitted within 60 days of the last day of service provided under this 

Order. 

1 Annual 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 per week multiplied by $837 per flight.