Order 99-1-15 - EAS - Great Lakes Aviation

Order 99-1-15

Essential Air Service at Fairmont, Minnesota / Brookings, South Dakota / Yankton, South Dakota / Devils Lake, North Dakota / Jamestown, North Dakota / Norfolk, Nebraska

Order 99-1-15 OST-98-3843 OST-97-2785 OST-98-3703 OST-97-2785 OST-97-2785 OST-98-3704	Issued January 29, 1999 Served February 1, 1999	Order Setting Subsidy Rate Until Further Department Action	EAS - Great Lakes Aviation
		Appendix A: Map
		Appendix B: Operating Statistics
		Appendix C: Great Lakes EAS

Great Lakes has commented that its services at the six communities do not enjoy the benefit of attractive through fares for passengers connecting at Minneapolis to longer-haul destinations. In that respect, we have raised informally with Northwest the possibility of a Northwest Airlink proposal, including more attractive through fares and other marketing benefits, as a more cost-effective alternative to Great Lakes' service. Absent that option, we would encourage Northwest's cooperation with Great Lakes to afford the communities marketable joint fare opportunities, which should benefit all parties - the communities in the form of more affordable fares, and both Great Lakes and Northwest in the form of increased traffic and revenues. We will remain open to more cost-effective proposals on behalf of the EAS communities.

We have decided to establish a short-term subsidy rate for Great Lakes, as the carrier proposed, to continue its existing service as outlined in Appendix C at the annual subsidy rate of $4,794,180, effective September 28, 1998, until the Department takes farther action, but no later than April 1, 1999.3 In doing so, however, we note an area of potential improvement that we believe could result in significantly more responsive service for the communities and decreased subsidy burdens.

By: Charles Hunnicutt