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OST-2000-7855

Express I, Inc. d/b/a Northwest Airlink

By:  Express Airlines, Philip Reed, 901.348.4265, preed@nwairlink.com 

Express I, Inc. d/b/a Northwest Airlink

By: Francisco Sanchez

Express I, Inc. d/b/a Northwest Airlink

By: Randall Bennett

Express I, Inc. d/b/a Northwest Airlink

By: Randall Bennett

Express I, Inc. d/b/a Northwest Airlink

By:  John Jones 

By:  U.S. Senate, Wendell Ford

By:  Owensboro-Davies County Regional Airport Board, Mayor Waymond Morris 

Express I, Inc. d/b/a Northwest Airlink

By:  Corporate Airlines, Fred Breeden

Express I, Inc. d/b/a Northwest Airlink

By: Randall Bennett

Express I, Inc. d/b/a Northwest Airlink

By:  Corporate Airlines, Fred Breeden

Express Airlines I, Inc. d/b/a Northwest Airlink

By:  Susan McDermott

Order 2001-3-22 is extending Northwest Airlink's service obligation at Owensboro, Kentucky, Muscle Shoals, Alabama and Jackson, Tennessee, for an additional 30 days, through April 23, 2001.  

By:  Randall Bennett

Express I, Inc. d/b/a Northwest Airlink

By: Randall Bennett

Essential Air Services At Muscle Shoals, AL; Owensboro Davies County Regional Airport; Jackson, TN; Topeka, Kansas; Alamogordo/Hollman AFB, New Mexico; Hot Springs and Jonesboro, Arkansas; Pueblo, Colorado; Hana, Hawaii; Kamuela, Hawaii; Augusta/Waterville; Oneida County Airport; Massena, New York; Enid, OK; Oil City/Franklin, Pennsylvania; Ponce, Puerto Rico; Oshkosh, Wisconsin

Because a $50 million budget can no longer cover the program's current commitments, the Administration's budget proposal also includes a proposal to revise some of the standards under which communities are ineligible for subsidy-supported scheduled air service. Under the proposed revisions, communities would not be eligible if they are:

• Located within 100 highway miles of the nearest large or medium hub airport² The current standard is 70 highway miles for both large and medium hubs. Located within 70 highway miles of the nearest small hub airport. There is no current standard addressing communities' proximity to small hub airports.
• Located within 50 highway miles of the nearest non-hub airport offering jet service. There is no current standard addressing communities' proximity to non-hub jet service.

The statutory prohibition against continuing to subsidize communities requiring subsidy of more than $200 per passenger, except for exceptionally isolated points, would remain unchanged.  The proposed revisions would allow the Department to continue to meet its core obligation of ensuring that truly isolated communities continue to receive at least a minimum level of scheduled air service and thereby remain connected to the national air transportation system. At the same time, it would curtail spending for local service at communities that are within reasonable driving distances of service at other airports.

In light of the program's current spending rate and the Administration's budget proposal, we have decided to issue this statement of proposed policy now, to give the communities and carriers ample notice of the program reductions that we will implement in the event that Congress enacts them into law. Those reductions will result in the termination of subsidy at the 17 communities listed below as of October 1, 2001 -- the first day of fiscal year 2002 -- and will allow the carriers providing subsidized service at those communities to discontinue service on the same date, if they choose, without the need to provide individual notice. Implementation of the reductions at the very outset of the next fiscal year is necessary for program spending to remain within the proposed $50 million budget. Waiting to initiate the process until Congress has already acted could delay implementation of the reductions and require us to make even deeper program cuts, affecting more communities, in order to remain within our budgetary constraints.

By:  Susan McDermott

Express I, Inc. d/b/a Northwest Airlink

By: City of Owensboro, Kentucky, Mayor Waymond Morris, 270.687.8650

By: Daviess County Fiscal Court, Reid Haire 

Express I, Inc. d/b/a Northwest Airlink

By:  Regional Aviation Partners, Maurice Parker

By:  Regional Aviation Partners, Maurice Parker

Express I, Inc. d/b/a Northwest Airlink

By:  Owensboro-Daviess County Regional Airport Board

Express I, Inc. d/b/a Northwest Airlink

OST-00-7855 OST-00-7856 OST-00-7857

February 1, 2002 Docketed February 20, 2002

Request for Subsidy andEssential Air Service Proposal of Northwest Airlink, Express Airlines

Terminate Air Serviceat Owensboro Davies County Regional Airport Northwest Alabama & Jackson, TN

As a result of the Department's Order 2000-10-3, Express Airlines I (Express 1) was compelled to provide essential air service at the above-captioned points and is entitled to subsidy for such service. With respect to Owensboro, Kentucky and Jackson, Tennessee, Express I is entitled to subsidy for essential air services provided beginning on November 22, 2000, the date upon which Express I's 90-day notice elapsed and Order 2000-10-3 compelled Express I to continue service, through April 30, 2001, the date upon which Express I terminated service pursuant to Order 2001-3-21, selecting Corporate Airlines, Inc. to provide replacement service effective May 1, 2001. With respect to Muscle Shoals, Alabama, Express I provided essential air service beginning November 22, 2000, pursuant to Order 2001-10-3, through February 21, 2002, pursuant to Order 2002-1-1. Attached are Express I's detailed subsidy reimbursement proposals for provision of the above-described services.

In addition, attached is Express I's subsidy proposal for continued essential air service at Muscle Shoals, Alabama, at a level of two or three roundtrip flights per day. Express I proposes to operate the proposed Muscle Shoals essential air service using 33-seat Saab 340 aircraft, as it does currently.

By:  Northwest Airlink, Curtis Sawyer

EAS at Burlington, Iowa, Cape Girardeau, Ft. Leonard and Kirksville, Missouri, Jackson, Tennessee, Marion, Illinois, and Owensboro, Kentucky

Issued May 6, 2003 | Served May 9, 2003

Order 03-5-7
OST-01-8731 - Burlington, IA
OST-96-1559 - Cape Girardeau / Ft. Leonard Wood, MO
OST-96-1167 - Cape Girardeau / Ft. Leonard Wood, MO
OST-97-2515 - Kirksville, MO
OST-00-7857 - Jackson, TN
OST-00-7881 - Marion, IL
OST-00-7855 - Owensboro, KY

Order Setting Final Rates

We have made adjustments to the rates consistent with the framework established by Order 2002-2-13, namely, that we would make up for revenue reductions to the extent that they fell below those forecast in the final subsidy rates in effect on September 11, and insurance increases directly attributable to the September 11 attacks. Even though Corporate's revenue fell after September 11, only at Cape Girardeau and Kirksville did they fall below those forecast in the subsidy rate, and we adjusted those rates accordingly. At all seven communities, the only other adjustments we made were for increased hull and liability insurance (other than general and administrative and return elements which are set as a percentage of expenses).

By: Read C. Van de Water

Issued May 9, 2003 | Served May 14, 2003

Order 03-5-12
OST-01-8731 - Burlington, IA
OST-96-1559 - Cape Girardeau / Ft. Leonard Wood, MO
OST-96-1167 - Cape Girardeau / Ft. Leonard Wood, MO
OST-97-2515 - Kirksville, MO
OST-00-7857 - Jackson, TN
OST-00-7881 - Marion, IL
OST-00-7855 - Owensboro, KY
OST-03-14492 - Quincy, IL

Order Setting Final Rates | Word

As discussed in Order 2002-2-13, the Department authorized emergency EAS payments to all subsidized carriers because of the losses suffered by them in the face of generally lower revenue and higher costs after the terrorist attacks of September 11, 2001, combined with the fact that the EAS carriers are paid on a pre-agreed, fixed rate per flight. Recently, Order 2003-5-7, issued May 6, 2003, set final rates for seven of the above communities (all except Quincy) from October 1, 2001, until the respective ends of the various contracts. This Order sets final rates that go into effect at the expiration of those contracts, and will remain in effect until further Department action while we process the various carrier selection proceedings for all the communities.

By: Read C. Van de Water

Essential Air Service at Burlington, Iowa, Cape Girardeau, Ft. Leonard, and Kirksville, Missouri, Jackson, Tennessee, Marion/Herrin, Illinois, and Owensboro, Kentucky

Order 04-12-13
OST-01-8731 - EAS at Burlington, IA
OST-96-1559 - EAS at Cape Girardeau, MO
OST-96-1167 - EAS at Ft. Leonard Wood, MO
OST-97-2515 - EAS at Kirksville, MO
OST-00-7857 - EAS at Jackson, TN
OST-00-7881 - EAS at Marion/Herrin, IL
OST-00-7855 - EAS at Owensboro, KY

Issued and Served December 22, 2004

Order requesting Proposals, and Order to Show Cause Tentatively Termination Subsidy Eligibility and Allowing Suspension of Service | Word

By this order, the Department is requesting interested persons to show cause why we should not terminate the essential air service subsidy eligibility of Kirksville, Missouri, and allow Corporate Airlines, Inc., d/b/a American Connection, to suspend its subsidized service. The Department is also requesting proposals from carriers interested in providing EAS at the other communities identified above for new two-year periods. Proposals to provide subsidized EAS at each of the above communities, as well as objections to the Department’s tentative decision to terminate the subsidy eligibility of Kirksville, are due within 30 days of the service date of this order.

With the end of the current rate term approaching, we conducted a review of the communities' traffic results in anticipation of requesting carrier proposals for a new rate term beginning at the end of their current two-year terms. During calendar year 2003, Burlington averaged 24.0 enplanements a day, Cape Girardeau 23.7, Ft. Leonard Wood 20.0, Jackson 14.0, Marion/Herrin 34.6, Owensboro 17.6, and Kirksville 7.1. The Department is prohibited from subsidizing service at communities where the subsidy amounts to more than $200 per passenger, unless they are more than 210 highway miles from the nearest large or medium hub.' Based on the 2003 traffic level of 4,428 passengers and the current subsidy rate of $968,249, Kirksville's subsidy per passenger is $218.67 and, thus, exceeds the $200-per-passenger ceiling.

We request that any carriers interested in providing essential air service at any or all of the communities, including Kirksville, and with or without subsidy, file their proposals within 30 days of the service date of this order. With respect to each community, we expect proposals consisting of service, at a minimum, with two‑pilot, twin‑engine aircraft with at least 15 passenger seats, and offering two or three one‑stop or nonstop round trips each weekday and each weekend period to St. Louis or any other suitable hub such as Kansas City or Memphis.

By: Karan Bhatia

January 31, 2005

Proposal of Great Lakes Aviation - Owensboro, KY

January 20, 2005

Proposal of Multi-Aero d/b/a Air Choice One - Owensboro, KY

OST-96-1167 - EAS at Ft. Leonard Wood, MO
OST-00-7855 - EAS at Owensboro, KY
OST-00-7857 - EAS at Jackson, TN
OST-00-7881 - EAS at Marion/Herrin, IL
OST-01-8731 - EAS at Burlington, IA
OST-96-1559 - EAS at Cape Girardeau, MO
OST-97-2515 - EAS at Kirksville, MO

February 9, 2005

Re: Request for Comments from The Honorable Cliff Hammock, Mayor of The City of Waynesville

I would like to update you on the essential air service situation at Ft. Leonard Wood and give you an opportunity to submit any comments if you wish. As you know, by Order 2004-12-13, December 29, 2004, the Department solicited proposals from all interested air carriers to provide service at Ft. Leonard Wood and six other communities in Iowa, Illinois, Kentucky, and Tennessee. In response to that order, we received a total of 42 proposal options from five carriers - Corporate Airlines, Inc. d/b/a American Connection, Great Lakes Aviation, Ltd., Mesa Air Group d/b/a Air Midwest, Mesaba Aviation d/b/a Northwest Airlink, and Multi-Aero, Inc. d/b/a Air Choice One, Inc. Please note that while Corporate, Great Lakes, and Air Midwest submitted a number of service options, each of their options represents an indivisible package that cannot be separated on a community by community basis. Also, some carriers submitted options involving fewer than six communities. For example, Mesaba submitted a proposal for just Jackson, Tennessee. While we would normally write up a brief summary of all the proposals, it is not practical in this case given the number of options. While we would normally write up a brief summary of all the proposals, it is not practical in this case given the number of options.

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from Tim Bradshaw, Owensboro-Daviess County Regional Airport Airport Manager

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from The Honorable Robert Butler, Mayor of The City of Marion, IL

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from Gary Chick, Waynesville Regional Airport Airport Manager

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from The Honorable Mike Edwards, Mayor of Burlington, IA

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from The Honorable Charles Farmer, Mayor of The City of Jackson, TN

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from Mayor Jerry Gist, Madison County Courthouse

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from The Honorable Rodney Hendrix, Jackson-Madison County Airport Authority

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from Douglas Kimmel, Williamson County Airport Authority Airport Manager

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from The Honorable Jay Knudtson, Mayor of Cape Girardeau, MO

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from Sharon Leeper, Southeast Iowa Regional Airport Airport Manager

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from Bruce Loy, Cape Girardeau Regional Airport Airport Manager

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from The Honorable Debbie Masten, Mayor of The City of Kirksville, MO

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from The Honorable Waymond Morris, Mayor of The City of Owensboro, KY

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from Brian Morrissey, Ft. Leonard Director of Logistics

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from The Honorable Victor Ritter, Mayor of The City of Herrin, IL

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from Jody Sayer, Kirksville, Regional Airport Airport Supervisor

By: Dennis DeVany

OST-01-8731 - Burlington, IA
OST-96-1559 - Cape Girardeau / Ft. Leonard Wood, MO
OST-96-1167 - Cape Girardeau / Ft. Leonard Wood, MO
OST-97-2515 - Kirksville, MO
OST-00-7857 - Jackson, TN
OST-00-7881 - Marion, IL
OST-00-7855 - Owensboro, KY

February 15, 2005

Re: Southeast Iowa Regional Airport Letter Requesting Extension of Deadline

By: Sharon Leeper

February 16, 2005

Re: Letter Extending Deadline for Filing Community Comments

At the request of the Southeast Iowa Regional Airport Authority, as well as of several other communities, we are extending the deadline for filing community comments for the carrier selection case in the above-listed dockets from February 25, 2005, to March 15, 2005.

By: Dennis DeVany

OST-01-8731 - EAS at Burlington, IA
OST-96-1559 - EAS at Cape Girardeau, MO
OST-96-1167 - EAS at Ft. Leonard Wood, MO
OST-97-2515 - EAS at Kirksville, MO
OST-00-7857 - EAS at Jackson, TN
OST-00-7881 - EAS at Marion/Herrin, IL
OST-00-7855 - EAS at Owensboro, KY

March 9, 2005

Re: Extension of Time to File Community Comments

The Airport Manager of Cape Girardeau, Missouri, has requested a second extension, from March 15, until March 25, to file the community's comments in response to our letter of February 9, 2005. The extension is necessary because of an unforeseen scheduling conflict involving the Cape Girardeau's City Council meeting, scheduled for March 21, and a meeting of the community's Airport Advisory Board that was scheduled to review the various carrier proposals and make a carrier‑selection recommendation to the Cape Girardeau City Council.

This is to advise all parties that we have decided to grant the requested extension to file community comments. Community comments must now be filed no later than March 25, 2005.

By: EAS & Domestic Analysis Division, Dennis DeVany

OST-2000-7855

March 22, 2005

Comments of Owensboro and Daviess Regional Airport Board

The Airport Board, along with the Chamber of Commerce, reviewed the proposals and the historical enpianement data for this area. The Air Service Selection Committee also looked at top O&D markets as well as passenger surveys recently conducted by both agencies. The consensus of the group was that we were very satisfied with the service provided by our incumbent carrier Regions Air (formerly Corporate Airlines), but they were concerned about the viability of our connecting hub in St. Louis, Missouri. Since American Airlines reduced their departures from over 400 ffights a day to 207 flights a day, our enpianement numbers have dropped significantly. As you well know, frequency drives the market just as much or if not more than price. Our travelers, both inbound and outbound, are frustrated by the lack of frequency in and out of STL. This reduction in frequency also drives ticket prices higher due to the lack of available seats at reduced fares.

Our enpianements numbers have dropped so significantly that we are now approaching the subsidy cap and we could lose our airline service altogether if we don't increase our boardings. Often times, airports are reactive and dependent upon actions of the large legacy carriers and in this instance it is clearly evident that our drop in boardings is directly related to the changes that American and Corporate Airlines instituted in November, 2003 and January, 2004, respectively.

By: O&DRAB

Essential Air Service at Burlington, Iowa, Cape Girardeau, Ft. Leonard, and Kirksville, Missouri, Jackson, Tennessee, Marion/Herrin, Illinois, and Owensboro, Kentucky

Order 2005-6-14
OST-01-8731 - EAS at Burlington, IA
OST-96-1559 - EAS at Cape Girardeau, MO
OST-96-1167 - EAS at Ft. Leonard Wood, MO
OST-97-2515 - EAS at Kirksville, MO
OST-00-7857 - EAS at Jackson, TN
OST-00-7881 - EAS at Marion/Herrin, IL
OST-00-7855 - EAS at Owensboro, KY

Issued June 15, 2005 | Served June 20, 2005

Order Reselecting Carrier and Terminating Show-Cause Proceeding

By this order, the Department is reselecting RegionsAir, Inc. d/b/a American Connection, formerly known as Corporate Airlines (RegionsAir), to provide subsidized essential air service at each of the above communities for a new two-year period from June 1, 2005, through May 31, 2007, for a combined annual subsidy of $7,306,249. Also by this order, the Department is terminating the show-cause proceeding tentatively terminating subsidy at Kirksville, Missouri, as RegionsAir's selected proposal is below the $200-per-passenger cap.

This was a difficult decision based on the number of proposals presented and the fact that all of the applicants, with the exception of Multi-Aero, are current providers of EAS and have demonstrated their ability to provide reliable air service at other communities across the country. It is further complicated by the fact that the carriers' proposals cannot be broken apart. There is no combination of proposals that would provide each community with the service they support. This means we are faced with a decision that, by its very nature, must go against some of the communities' wishes. We also note that some support service options that would provide more service than they currently receive, and we are not in a position to subsidize increased service levels. The EAS program is designed to ensure that every eligible community receives a safety-net level of service that provides access to the national air transportation system, which may not be the level of service that communities would like to receive.

By: Karan Bhatia

OST-2000-7855

July 1, 2005

Re: EAS Subsidy in Jeopardy - Letter to Owensboro-Daviess County Regional Airport
Re: EAS Subsidy in Jeopardy - Letter to the Mayor of Owensboro

We must inform you that the continued subsidy eligibility of your community is in jeopardy. As we mentioned in Order 2005-6-14, authorizing subsidy for service to Owensboro, under the program's statutes, the Department is prohibited from subsidizing service at communities where the subsidy amounts to more than $200 per passenger, unless they are more than 210 highway miles from the nearest large or medium hub, which Owensboro is not. Based on our analysis of Owensboro's traffic data for the year 2004, the most recent period for which data were available at the time we requested proposals from interested air carriers to serve there, we noted in Order 2005-6-14 that Owensboro's subsidy per passenger was precariously close to the statutory ceiling of $200. In fact, passenger levels have slipped since then. Our review indicates that, for the 12-month period ended March 31, 2005, Owensboro registered 5,498 origin-and-destination passengers. (See historical passenger traffic enclosed.) Coupled with the annual subsidy rate of $1,127,453, Owensboro's subsidy per passenger is $205.07, an amount in excess of the $200 statutory limit.

By: Karan Bhatia

OST-2000-7855 - EAS at Owensboro, KY
OST-2000-7857 - EAS at Jackson, TN

July 29, 2005

Re: Response of RegionsAir Regarding EAS Programs

RegionsAir is working with both airports on additional promotions and specials that will stimulate traffic and increase visibility of the airports. The Jackson‑Madison County Airport Authority indicated in its July 11, 2005 response that it will assist RegionsAir in making the community aware of such promotional fares.

The subsidies at issue here have been in place for less than two months. RegionsAir deserves a reasonable opportunity to prove that its pricing initiatives and other marketing plans will result in compliance with the $200 cap. Early indicators are that the reduced fares are working. Additionally, RegionsAir has seen a very positive trend in most markets since early this spring when the major carriers initiated a new simplified fare structure. Given the ever‑increasing price of gasoline and the attractiveness of American Airlines' connecting flights at St. Louis, RegionsAir believes that compliance with the $200 cap is attainable and can be sustained for the duration of the subsidy award.

Counsel: The Wicks Group, Margaret Giugliano, 202-457-7790

Order 2006-12-25
OST-2001-8731 - Burlington, IA
OST-1996-1559 - Cape Giradeau, MO
OST-1996-1167 - Ft. Leonard Wood, MO
OST-2000-7857 - Jackson, TN
OST-2000-7881 - Marion/Herrin, IL
OST-2000-7855 - Owensboro, KY

Issued December 27, 2006 | Served January 2, 2007

Order Requesting Proposals

Passenger traffic has increased slightly at each of the six communities compared to calendar year 2004 levels. Passenger enplanements for 2006 range from a high of 36 a day at Marion/Herrin to a low of 11 a day at Jackson, while the number of enplanements at Burlington, Cape Girardeau, and Ft. Leonard Wood each average about 24 a day, and at Owensboro, they average about 15 a day.

By: Todd Homan

OST-2001-8731 - EAS at Burlington, IA
OST-1996-1559 - EAS at Cape Girardeau, MO
OST-1996-1167 - EAS at Ft. Leonard Wood, MO
OST-2000-7857 - EAS at Jackson, TN
OST-2000-7881 - EAS at Marion/Herrin, IL
OST-2000-7855 - EAS at Owensboro, KY

January 30, 2007

Extension of Proposal Due Date

By Order 2006-12-25, December 27, 2006, the Department requested proposals from carriers interested in providing essential air service at any or all of the above communities no later than February 1, 2007. In an email dated January 29, Mesa Air Group, Inc. requested a one-week extension of the due date for filing proposals until February 8. Before responding to the carriier, we contacted each of the six communities listed above either by phone or email to learn whether they supported or did not support Mesa's request. Only one community opposed the extension. Thus, we are hereby granting Mesa's request and extending the due date for proposals from all interested carriers until February 8.

By: Mike Waters

OST-2001-8731 - EAS at Burlington, IA
OST-1996-1559 - EAS at Cape Girardeau, MO
OST-1996-1167 - EAS at Ft. Leonard Wood, MO
OST-2000-7857 - EAS at Jackson, TN
OST-2000-7881 - EAS at Marion/Herron, IL
OST-2000-7855 - EAS at Owensboro, KY

February 8, 2007

Proposals of Air Midwest - Bookmarked

Mesa's proposed options would contemplate service with a combination of hubs at Chicago Midway, Kansas City, Memphis, Nashville, and St. Louis.

Mesa proposes to operate all flights as a combination of Mesa Airlines, US Airways Express and Midwest Connect. All operations at Chicago Midway will be Mesa Airlines. Mesa plans on pursuing a primary codeshare relationship with American Airlines in both St Louis and Nashville if awarded service to those respective hubs as we assume the incumbent carrier will not serve these markets without subsidy. Option #2, with service to Memphis, is contingent upon receiving a Northwest Airlines codeshare, which we are currently pursuing. We have established an internal deadline of March 1 for this process and reserve the right to rescind this option should we be unable to come to terms with Northwest.

All operations proposed would utilize our modern fleet of Raytheon/Beechcraft B-1900D airliners. These aircraft offer a very comfortable 19-seat, pressurized cabin with two turboprop engines.

By: Mesa Airlines, Jeffrey Hartz

Feburary 8, 2007

Proposals of RegionsAir

RegionsAir is proposing 6 options that would offer a variety of services to continue operating the vital link to American Airlines’ hub city of St. Louis, Missouri. All flights will be sold and marketed as AmericanConnection utilizing 19 seat BAe Jetstream 32 turboprop aircraft. Flights will be timed to offer optimal connecting opportunities to American Airlines’ flights at St. Louis Lambert International Airport.

Unfortunately the company has had some operational issues in the past few months that have negatively impacted performance causing an increase in cancellations and delays. The primary problem was unexpected engine removals last summer and fall compounded with significantly higher fuel costs than anticipated in the current contracts. The company is addressing capital issues with funding from an outside investment group. The company’s Cleveland operation, which further strained resources, is ending this spring.

The company realizes that many passengers were impacted by recent and unexpected cancellations, it anticipates the capital infusion to allow a rapid return to the previous high standard. By early summer, RegionsAir will have sufficient Jetstream aircraft, to provide an optimal schedule including an operational spare aircraft to assure reliability.

By: RegionsAir

OST-2001-8731 - EAS at Burlington, IA
OST-1996-1559 - EAS at Cape Girardeau, MO
OST-1996-1167 - EAS at Ft. Leonard Wood, MO
OST-2000-7857 - EAS at Jackson, TN
OST-2000-7881 - EAS at Marion/Herrin, IL
OST-2000-7855 - EAS at Owensboro, KY

February 8, 2007

Proposals of Big Sky Airlines - Bookmarked

All flights will be operated with modern 19 passenger Beechcraft 1900D aircraft.

Community	Proposal 1	Proposal 2	Proposal 3	Proposal 4
Burlington	St. Louis	Cincinnati	St. Louis	N/A
Cape Girardeau	St. Louis	Cincinnati	N/A	Cincinnati
Ft. Leonard Wood	St. Louis	Cincinnati	St. Louis	N/A
Jackson	St. Louis	Cincinnati	N/A	Cincinnati
Marion/Herrin	St. Louis	Cincinnati	St. Louis	N/A
Owensboro	St. Louis	Cincinnati	N/A	Cincinnati
Annual Subsidy	$6,838,269	$8,356,955	$3,243,889	$3,247,440

Counsel: Big Sky, Fred deLeeuw, 406-247-3912, fred.deleeuw@bigskyair.com

February 8, 2007

Proposal of Great Lakes Aviation

Proposal Part	Service Point(s)	Hub(s) Served	Round Trips	Equipment	Subsidy Requirement	Passengers Forecast	Average Fare
1	Burlington	St. Louis	3	1900D	$943,793	16,000	$79.00
2	Cape Girardeau	St. Louis	3	1900D	$949,956	16,500	$69.00
3	Ft. Leonard Wood	St. Louis	3	1900D	$519,858	17,500	$89.00
4	Jackson	St. Louis	2	1900D	$1,072,948	7500	$99.00
5	Marion/Herrin	St. Louis	4	1900D	$1,126,810	25,000	$59.00
6	Owensboro	St. Louis	2	1900D	$968,470	10,500	$77.00

Great Lakes will provide service at these Essential Air Service points in a similar fashion as is offered in Denver and utilize our interline agreements with all the major carriers, which will (enable connecting bag service through the St. Louis hub. In addition, we will endeavor to obtain code-sharing arrangements with major carriers serving the St. Louis market, to allow passengers in these EAS markets the seamless service, in which they are accustomed to, through St. Louis to the destinations served by our partners and prospective partners.

All proposals contemplate the use of 19 seat Beechcraft 1900D airliner equipment.

Counsel: Great Lakes, Michael Matthews, 307-432-7000

February 12, 2007

DOT Letters Requesting Community Comments of:

• Cape Girardeau Regional Airport Manager
• Ft. Leonard Wood Transportation Office
• Mayor of Burlington, IA
• Mayor of Cape Girardeau, MO
• Mayor of Herrin, IL
• Mayor of Jackson, TN
• Mayor of Madison County, TN
• Mayor of Marion, IL
• Mayor of Owensboro, KY
• Mayor of Waynesville, MO
• McKellar-Sipes Regional Airport Manager
• Owenboro-Daviess County Airport Manager
• Southeast Iowa Regional Airport Director
• Waynesville Regional Airport at Forney Army Field Manager
• Williamson County Regional Airport Manager

As you know, RegionsAir, Inc. d/b/a American Connection, serves your community, as well as five others, to St. Louis, and their contract expires on May 31, 2007. In anticipation of that, we issued Order 2006-12-25, December 27, 2006, soliciting proposals from carriers interested in providing subsidized service at all six communities in the region, for a new, two-year period, beginning June 1. In response to our request, we received proposals from RegionsAir, Inc. (6 options), Mesa Air Group d/b/a Air Midwest, Inc. (8 options), Big Sky Airlines, Inc. (4 options), and Great Lakes Aviation, Ltd. (6 options). While we would normally compose a brief summary of all of the proposals, that is not practical in this case given the number of options.

With specific respect to Marion/Herrin, we note that the community recently began to receive service to Chicago in addition to RegionsAir’s service to St. Louis under the Department’s essential air service program. For the present, we are willing to continue to subsidize service to St. Louis, or some other hub, in recognition of the joint state-and-local effort to build Marion/Herrin’s air service, and in view of the fact that Air Midwest’s service has just begun. We intend to defer our consideration of the implications of this new service on Marion/Herrin’s air service needs until we can assess the results of the new service.

My purpose in writing to you at this time is to request any final comments you might have on the proposals before we submit a carrier-selection recommendation to the Assistant Secretary for Aviation and International Affairs. We request that you review the proposal and submit any comments you may have as soon as possible, but in no case later than March 7.

By: Dennis DeVany

OST-01-8731 - Burlington, IA
OST-96-1559 - Cape Girardeau / Ft. Leonard Wood, MO
OST-96-1167 - Cape Girardeau / Ft. Leonard Wood, MO
OST-97-2515 - Kirksville, MO
OST-00-7857 - Jackson, TN
OST-00-7881 - Marion, IL
OST-00-7855 - Owensboro, KY

February 23, 2007

Re: Kansas City International Airport Support for Air Midwest Option 4 or 5

Air Midwest's proposals include a unique fare product which will offer low local fares that then become "add‑on" fares on connecting flights. This will stimulate local traffic to Kansas City. In addition to the convenient online options Air Midwest proposes with its mainline partners, EAS travelers will have the ability to connect with all major airlines using Air Midwest's convenient local fare "add‑on" product.

When compared to the other connecting hubs listed in the competing proposals, fares from Kansas City International Airport are substantially lower. Kansas City fares are 37 percent lower than Cincinnati, 29 percent lower than Memphis, and 9 percent lower than St. Louis. While the average fares at ChicagoMidway are compelling, travelers connecting in Chicago-Midway instead of Kansas City International Airport have fewer nonstop destinations and one third less marketing airlines to connect to.

By: Mark VanLoh

OST-2001-8731 - EAS at Burlington, IA
OST-1996-1559 - EAS at Cape Girardeau, MO
OST-1996-1167 - EAS at Ft. Leonard Wood, MO
OST-2000-7857 - EAS at Jackson, TN
OST-2000-7881 - EAS at Marion/Herrin, IL
OST-2000-7855 - EAS at Owensboro, KY

March 2, 2007

Statement of American Airlines

American Airlines, Inc. hereby states that it has signed a letter of intent with Great Lakes Aviation, Ltd. To operate American Connection‑branded service to from St. Louis in the event that Great Lakes Aviation is selected in this proceeding.

Counsel: American, Carl Nelson, 202-496-5647

OST-2001-8731 - EAS at Burlington, IA
OST-1996-1559 - EAS at Cape Girardeau, MO
OST-1996-1167 - EAS at Ft. Leonard Wood, MO
OST-2000-7857 - EAS at Jackson, TN
OST-2000-7881 - EAS at Marion/Herrin, IL
OST-2000-7855 - EAS at Owensboro, KY

March 2, 2007

Opposition of Great Lakes Aviation bid by RegionsAir

We feel that the Department should reject Great Lakes bid for the 6 markets currently served by RegionsAir to St. Louis.

Great Lakes submitted a bid that was $1,000,000 less than the current contract and over $800,000 less than their bid two years ago even though fuel costs have climbed dramatically during that time. Their bid is approximately $1,300,000 less than Big Sky’s and almost $2,000,000 less than Air Midwest both flying the same aircraft as Great Lakes and proposing essentially the same service.

We find this extremely disturbing in light of Great Lake’s communications to RegionsAir. During the first few days of February the Chairman of Great Lakes called us wanting to know if the sale of our airline had closed. He said that he was interested in our Saab certification but had little interest in St. Louis as they had determined that short haul flying under a prorate contract was not a very good business. He stated that their prime focus was in Milwaukee but they would probably make a token bid for St. Louis as they had 2 years previously.

Clearly Great Lakes has by far the lowest bid. However, we feel that Great Lakes in part submitted this extremely low bid as a means of preventing RegionsAir from completing a transaction to refinance the airline and put a competitor out of business.

By: RegionsAir, Douglas Caldwell

OST-2000-7855

March 2, 2007

Owensboro-Daviess County Regional Airport Board in Support of Big Sky Airlines

The Airport Board, along with the Chamber of Commerce, reviewed the proposals and requests that you approve the application submitted by Big Sky Airlines for non-stop service to Cincinnati as a Delta Connection carrier.

By: Mayor, Tom Watson

OST-2001-8731 - EAS at Burlington, IA
OST-1996-1559 - EAS at Cape Girardeau, MO
OST-1996-1167 - EAS at Ft. Leonard Wood, MO
OST-2000-7857 - EAS at Jackson, TN
OST-2000-7881 - EAS at Marion/Herrin, IL
OST-2000-7855 - EAS at Owensboro, KY

March 7, 2007

Statement of Delta Air Lines

Delta Air Lines, Inc. submits this statement in support of the submission of Big Sky Transportation Co. d/b/a Big Sky Airlines to the extent it proposes to provide essential air service between the above-referenced communities and Cincinnati, Ohio. Delta further hereby advises the Department that if one of Big Sky's Cincinnati proposals (either proposal 2 or proposal 4) is selected, Delta intends to codeshare with Big Sky on those EAS flights. A codeshare relationship with Big Sky would offer passengers from the affected EAS communities access to Delta's global transportation system.

Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com

Order 2007-3-5
OST-2001-8731 - EAS at Burlington, IA
OST-1996-1559 - EAS at Cape Girardeau, MO
OST-1996-1167 - EAS at Ft. Leonard Wood, MO
OST-2000-7857 - EAS at Jackson, TN
OST-2000-7881 - EAS at Marion/Herrin, IL
OST-2000-7855 - EAS at Owensboro, KY

Issued March 9, 2007 | Served March 14, 2007

Order Selecting Carriers and Establishing Subsidy Rates

As the end of the two-year contract period was approaching, the Department issued Order 2006-12-25, December 27, 2006. requesting proposals for a new two-year period beginning June 1, 2007, with or without subsidy. In response to our request. we received proposals from four earners: the incumbent, Regions, Air Midwest Inc., a wholly owned subsidiary of Mesa Air Group, Inc., d/b/a US Airways Express (Air Midwest), Big Sky, and Great Lakes.

By this order, the Department is selecting Big Sky Transportation Co., d/b/a Big Sky Airlines, and Great Lakes Aviation, Ltd. to provide subsidized essential air service at the above communities for the two-year period from June 1, 2007, through May 31, 2009, using 19-seat Beech 1900D turboprop aircraft as follows: Big Sky at Cape Girardeau, Jackson, and Owensboro for a combined annual subsidy of $3,247,440: and Great Lakes at Burlington, Fort Leonard Wood, and Marion/Herrin for a combined annual subsidy of $2,590,461.

By: Andrew Steinberg

Order 2007-12-20
OST-1996-1559 - Cape Giradeau
OST-2000-7857 - Jackson
OST-1997-2842 - Massena, Ogdensburg and Watertown
OST-2000-7855 - Owensboro
OST-2003-14783 - Plattsburgh
OST-2000-8025 - Saranac Lake/Lake Placid

Issued December 20, 2007 | Served December 27, 2007

Emergency Request for Proposals for Replacement Service

By this order, the Department is (a) prohibiting Big Sky Transportation Co., d/b/a Big Sky Airlines, from suspending its service at the eight above-captioned communities at the end of its 90-day notice period, and (b) requesting proposals, with or without subsidy requests, from carriers interested in providing replacement service.  Because of the emergency nature of this case, proposals are due January 11.

Big Sky was selected to provide essential air service at the eight communities by a series of orders. Big Sky serves all eight communities with 19-seat Beech 1900 aircraft.  All five communities in New York receive three round trips to Boston on weekdays and weekends, the levels called for in the existing contracts.  At Jackson, Owensboro and Cape Girardeau, Big Sky is providing less than the contract amount, as it had been ramping up its service after replacing RegionsAir.  Jackson and Owensboro currently receive one round trip a day to Cincinnati instead of the two called for in the contract, and Cape Girardeau receives two round trips a day instead of three.

On December 20, 2007, Big Sky filed notices of intent to suspend its subsidized EAS at all eight of the communities.  Big Sky is the only carrier providing scheduled service at the communities In its notices, Big Sky states that it is incurring unsustainable losses on these routes and that it will be forced to cease all operations at these communities on January 7, notwithstanding the statutory EAS obligations that require a full 90-day notice period.

By: Michael Reynolds

December 19, 2007

Re: Notice of Termination of Service

Big Sky Transportation Co. d/b/a Big Sky Airlines d/b/a Delta Connection hereby gives notice of the termination of its scheduled services at Owensboro, Kentucky effective on January 7, 2008.

Termination of service on January 7, 2008 is both regrettable and unavoidable and is the result of enormous unsustainable financial losses Big Sky has incurred, and which Big Sky is unable to continue to endure, on its Eastern U.S. route system (those routes serving Boston and Cincinnati). The Company does not have the financial resources to continue to absorb these mounting and unacceptable losses and has determined that it has no alternative but to terminate service.

Big Sky is concurrently filing notices of termination of service covering the other EAS points it serves, including its western essential air service points. However, Big Sky is currently in discussions with another carrier to take over Big Sky's Montana EAS services within about 60 days, and Big Sky intends to work with the Department and the replacement airline to effect a seamless transfer of those services.

Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com

OST-1996-1559 - Cape Giradeau
OST-2000-7857 - Jackson
OST-2000-7855 - Owensboro

January 10, 2008

Proposals of Air Choice One

We will utilize 9-seat, single-engine turbine powered, Cessna Grand Caravan configured for 9 passenger seats. The aircraft will be operating with two crewmembers and air conditioning for passenger safety and comfort. All proposals are using St. Louis, MO as the hub.

By: Air Choice One, Shane Storz, 866-435-9847, shane@airchoiceone.com

January 11, 2008

Proposal of Great Lakes Aviation

Great Lakes will provide service at these Essential Air Service points in a similar fashion as is offered in our Denver hub. We will utilize our interline ticketing and baggage handling agreements, as well as, code share agreements that are available at commercially reasonable terms.

The communities should assume that the average fare proposed is based on travel distance to a St. Louis hub. If an alternate hub is chosen, average fares will increase or decrease relative to distance traveled.

The proposals for Jackson and/or Owensboro are contingent on, and require that Great Lakes be selected for Cape Girardeau. All proposals contemplate the use of 19 seat Beechcraft 1900D airliner equipment.

By: Michael Matthews

January 14, 2008

Re: Owensboro-Daviess County Regional Airport Board in Support of Great Lakes Airlines

The Airport Board, along with the City of Owensboro and Daviess County, have reviewed the proposals and requests that you approve the proposal submitted by Great Lakes Airlines.

By: Robert Giles

Order 2008-2-1
OST-1996-1559 - Cape Girardeau
OST-2000-7857 - Jackson
OST-2000-7855 - Owensboro

Issued February 1, 2008 | Served February 6, 2008

Order Selecting Carrier and Establishing Subsidy Rates | Word

By this order, the Department is selecting Great Lakes Aviation, Ltd. to provide subsidized essential air service at the above communities for the two-year period beginning when the carrier starts full EAS at all three communities.

The communities fully support the selection of Great Lakes, and we find that the carrier’s proposed subsidy rates are reasonable for the service it intends to provide. Great Lakes is fully experienced in operating regional carrier service both as a general matter and within the essential air service program specifically. Moreover, Multi-Aero’s proposals do not meet the statutory minimum aircraft standards and did not receive the requisite endorsement from any of the communities. We note that Great Lakes is continuing discussions with American Airlines to develop a code-share agreement at St. Louis, but our decision here is not contingent on such an agreement.

Subsidy Rate per Departure: $771.13
Weekly Compensation Ceiling: $29,302.94

By: Michael Reynolds

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