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OST-1996-1266

EAS Docket

Great Lakes Aviation, Ltd. d/b/a United Express (Alternate Service Pattern at Ironwood, MI; Ashland, WI; Sault Ste. Marie and Alpena, MI)

Order 1997-7-6 | OST-1996-1266, OST-96-1713 and OST-96-1714 | Issued July 7, 1997 | Served July 11, 1997

Order Approving Alternate Service Pattern

By this order, the Department is approving Great Lakes Aviation, Ltd., d/b/a United Express's proposed alternate service pattern, which would change the hub to which service is subsidized for Ironwood, Michigan/Ashland, Wisconsin (Ironwood), from Minneapolis to Chicago O'Hare and the hub for Sault Ste. Marie and Alpena, Michigan, from Detroit to O'Hare, effective July 15, 1997.

Appendix A

By: John Coleman

Order 98-7-24 | OST-1996-1266

Issued July 31, 1998 | Served August 6, 1998

Order Tentatively Reselecting Carrier

By this order, the Department is tentatively reselecting Great Lakes Aviation, Ltd., d/b/a United Express, to provide subsidized essential air service at Ironwood, Michigan/Ashland, Wisconsin, (Ironwood) for the two-year period July 1, 1998, through June 30, 2000, at the annual subsidy rate of $357,588.

• Appendix A:  Map of Service Area
• Appendix B:  EAS Summary
• Appendix C:  Calculation of Annual Compensation Requirement
• Appendix D:  Historical Traffic
• Service List

By:  Charles Hunnicutt

OST-1996-1266

August 26, 1998

Gogebic-Iron Airports Objection to Order Tentatively Reselecting Carrier

HTML

Gogebic objects to Great Lakes' delivery of "essential air service" through its failure to schedule flights at reasonable times as is required by the Order Selecting Carrier (the "Order") dated August 19, 1996, Dockets OST-1996-1265, 1266, 1267 and Gogebic objects to Great Lakes' apparent unwillingness to provide such essential air service to Ironwood in the future. In order to ensure that Great Lakes provides essential air service to Ironwood's business travelers, Gogebic requests that DOT condition any order reselecting Great Lakes on Great Lakes' willingness to schedule flights on the Ironwood/Chicago route departing from Ironwood early in the morning and returning from Chicago late in the evening. In order to adequately service Ironwood's business travelers, it would also be in Great Lakes' interest to improve the seat availability of its flights and offer low cost fares to and from Chicago.

• Attachment:  Letter from Morthern Engineering
• Attachment:  Review of Scheduled Air Service at the Gogebic County Airport by Northern Engineering

Counsel:  Jaffe Raitt, Ralph Margulis, 313-961-8380

OST-1996-1266	September 23, 1998	Answer of Great Lakes Aviation to Objection to Order Tentatively Reselecting Carrier
		Exhibit A: Schedule and Connecting Flight Summary

Great Lakes believes that its current pattern of service at Ironwood, Michigan meets the requirements for subsidized air service. Although not a perfect schedule, the community does receive well-timed and well-spaced flights that will allow the full benefits of our code-share agreement with United Airlines to C generate the passenger traffic and revenue required.

By: Douglas Voss, Pres. and CEO Great Lakes, 712.262.1000

OST-1996-1266

October 15, 1998

Reply Answer of Great Lakes Aviation to Gogebic Iron Airport's Objection to Order Tentatively Reselecting Carrier

Gogebic is not asking for "perfect schedule" of flights from Great Lakes. Rather. Gogebic simply wants Great Lakes to implement the standard hub and spoke system recognized as standard practice in the commuter industry. Contrary to the Answer's conclusion, the Northern Engineering study conclusively establishes that Great Lakes does not currently provide "well-timed and wellspaced flights" to Ironwood's business travelers.

Gogebic still hopes that Great Lakes will voluntarily schedule early-morning flights to Chicago with evening return flights to Ironwood, and will provide additional seating and low cost fares to Ironwood travelers. However, if Great Lakes chooses not to make such changes, DOT should condition any order reselecting Great Lakes to provide essential air service to Ironwood on Great Lakes' willingness to schedule such flights.

Counsel:  Jaffe Raitt, Daniel Kosove, 313.961.8380

We have carefully considered the pleadings and have decided to reaffirm our selectionof Great Lakes to serve Ironwood without requiring modifications to the carrier's proposed schedules.

By:  Charles Hunnicutt

Order 2000-8-13 tentatively reselects Great Lakes Aviation, Ltd., d/b/a United Express, to provide subsidized essential air service at Ironwood, Michigan/Ashland, Wisconsin, for the two-year period ending June 30, 2002, at an annual subsidy rate of $544,269. The order also provides for objections or competing proposals from othr interested carriers.

By:  Bradley Mims

Order 2000-9-13 makes final the selection of Great Lakes Aviation Ltd., d/b/a United Express, initially proposed in Order 2000-8-13, August 14, 2000, to provide subsidized essential air service at Ironwood, Michigan/Ashland, Wisconsin for the two-year period ending June 30, 2002, at an annual subsidy rate of $544,269.

By:  Denis Devany

We will solicit proposals from carriers interested in providing replacement service at Iron Mountain/Kingsford, Manistee/Ludington, Ironwood/Ashland, and Oshkosh. We request proposal options that would provide the communities with service to any of the designated hubs of Chicago, Milwaukee, or Minneapolis/St. Paul (as appropriate), consisting of at least two round trips a day (we encourage carriers interested in serving Iron Mountain/Kingsford to submit proposals offering three round trips a day), nonstop or one-stop, six days a week, with twin-engine, two-pilot, 15-passenger-seat, pressurized aircraft. The proposals should offer at least enough daily seats to accommodate the most recent average daily enplanements at a 60-percent load factor. Notwithstanding Oshkosh's almost 20-year-old essential air service determination, we request proposals for two round trips each day providing sufficient capacity to accommodate recent traffic levels; as service at nearby Appleton has grown, traffic levels at Oshkosh have fallen to very low levels. We will also entertain proposals to serve other hubs that provide access to the national air transportation system in order to give the Department and the communities as broad an array of proposals as possible from which to choose. Of course, as always, we will formally solicit the communities' views on any service options we receive before making a long-term carrier selection decision. In order to assist carriers in making their traffic and revenue forecasts, we have included historical traffic data in Appendix B.

By:  Read Van de Water

This serves as notice to the public of the action described below, taken by the Department official indicated. (No additional confirming order will be issued in this matter.) By Order 2002-2-18, issued February 27, 2002, served March 4, 2002, the Department requested proposals from air carriers interested in providing essential air service at Iron Mountain/Kingsford, Michigan; Manistee/Ludington, Michigan; Ironwood, Michigan/Ashland, Wisconsin; and Oshkosh, Wisconsin. These proposals were due within 20 days after the date of service of Order 2002-2-18, i.e., by March 25, 2002. We have received a request from Midwest Express Airlines for a ten-day extension of this due date. In support of its request, Midwest Express affirms that it will deliver to the Department of Transportation all required documentation on or before April 3, 2002.

By:  Dennis DeVany

Request of Astral Aviation d/b/a Skyway Airlines for a ten day extension to respond to the Department's Order Requesting Proposals for air service at Manistee, Ironwood, and Iron Mountain, Michigan.

By:  Astral Aviation, Christopher Svoboda, 414.570.2300

By:  Mesa Air Group, Gus Carbonell

By:  Great Lakes, Doug Voss

In accordance with Department of Transportation Order 2002-2-18, the undersigned on behalf of Astral Aviation, Inc. d/b/a Skyway Airlines an affiliate of Midwest Express Airlines, Inc., is pleased to submit its proposal to provide essential air service to the communities of Ironwood,     Michigan /Ashland,     Wisconsin,     Iron Manistee/Ludington, Michigan.

The selection of Skyway Airlines and the use of the Milwaukee hub will provide efficient connections to passengers traveling to and from the growing list of 48 cities in the Midwest Express system, as well as 38 additional cities through Midwest Express' codeshare partnerships. Route maps for Midwest Express, Skyway and their code share partners are enclosed. In addition, Skyway's service to Milwaukee will offer a very convenient alternative for travelers heading to or from the Chicago and northern Illinois region. Hence service over the Milwaukee hub will not diminish the quality of service to be made available to these EAS points.

The costs and expenses are conservatively computed and indicate an annual subsidy requirement for each Skyway service offering. As noted, the subsidy being requested by Skyway is anywhere from approximately $67,350 to $112,700 less, depending on the market, than the DOT is currently paying to provide service to the three communities that Skyway seeks to serve.

Counsel:  Silverberg Goldman, Robert Silverberg, 202.944.3300, rsilverberg@sgbdc.com

While we are pleased by the increased interest expressed by airlines in the EAS markets described under the above dockets, we do have concerns about the limited service levels in some of the proposals. In particular, proposed reductions in scheduled flight frequency and connecting opportunities may lead to reduced ridership and continued long-term dependence on federal subsidy. We recognize that funding limitations do restrict the level of service that may be subsidized. However, we urge US-DOT to consider not only the requested subsidy level but also the number of frequencies, flight timing, and connecting opportunities offered under each proposal.

By:  State of Michigan, Pauline Misjak

I am writing on behalf of the Gogebic-Iron Airport Board in regard to the selection of an essential air service provider for this airport. The contract for the current provider, Great Lakes Airlines, expires in June 2002 and three proposals have been submitted to the Department of Transportation for consideration. It is the opinion of the Airport Board that the proposal from Skyway Airlines would be the most beneficial plan. Their service would offer the most competitive fares and most efficient scheduling of flights. It also offers this service at the smallest subsidy. For these reasons we believe that Skyway has demonstrated a strong commitment to the Gogebic-Iron County Airport.

By:  Gogebic-Iron County Airport, Joseph Braspenick, 906.932.3121, iwd@gogebic.cc.mi.us 

At a regularly scheduled meeting of the Gogebic County Economic Development Commission on May 23, 2002, a motion was unanimously approved in support of the Airport Board decision to recommend Skyway airlines for the essential services contract. As you know, the mission of the EDC is to develop a sustainable community through support for retention and expansion of existing businesses and industry, and introduction of new business and industry. The purposes for which this EDC is formed are to plan and direct the carrying out of an Economic Development and Expansion Program for Gogebic County. Sound economic health of the airport has been recognized as a major influence in reaching our goals.

By:  Gogebic County Economic Development Commission/Corporation, John Lewinski

Representative Gary E. Sherman, 74th Assembly District in support of the proposal of Astral Aviation, Inc. to provide Essential Air Service to the Gogebic-Iron County Airport.

By:  Gary Sherman

The Department extends the interim subsidy rates of Great Lakes Aviation, Ltd., for the provision of essential air service at Page, Arizona, Alamosa, and Pueblo, Colorado, Ironwood, Michigan/Ashland, Wisconsin, McCook, Nebraska, Laramie, Rock Springs, and Worland, Wyoming, and at Moab and Vernal, Utah, as set forth in Order 2002-2-13, until further action.

By:  Randall Bennett

By:  Dennis DeVany

By:  Dennis DeVany

By:  Dennis DeVany

By:  Dennis DeVany

By:  Dennis DeVany

By:  Gogebic-Iron County Airport, Joseph Braspenick

Correspondence of Wittman/Oshkosh Regional Airport in support of Mesa Air Group/Air Midwest to be awarded the Essential Air Service Agreement to serve Wittman Airport and Winnebago County.

By: Duncan Henderson, 920 424-0092

In both OSH and IWD's cases, they have requested a new carrier; OSH - Mesa Air Group/Air Midwest and IWD - Skyway. We've discussed the options with both communities and their rationale in the decisions they've respectively arrived at. We wish to go on record supporting both communities in their selections. The potential for providing improved air service to Wisconsin's citizens will best be served should their selections be your office's recommendation to the Assistant Secretary for Aviation and International Affairs.

By:  David Greene

In the case of Iron Mountain, we believe that the service proposal offered by the incumbent carrier, Great Lakes Airlines, best meets the community's air service needs. Not only does the proposal offer the greatest capacity in terms of available seats, but it also provides nonstop service to Chicago O'Hare and access to the multitude of international connections available on the United Airlines system. Also, the community has expressed a desire to maintain the services of Great Lakes Airlines because they believe its service proposal offers the best chance to continue its growth and, in the near future, reach primary airport status (enplaning greater than 10,000 passengers annually). Reaching this milestone would entitle the airport to receive Airport Improvement Program (AIP) funding of $1,000,000 annually.

By: Dennis J. DeVany

Correspondence of Gogebic County Economic Development Commission in support of the Airport Board decision to recommend Skyway Airlines for the essential services contract.

By: Paul Forslund

ExParte Letter from Secretary Norman Y. Mineta to the Honorable Bart Stupak and Honorable Russell D. Feingold, regarding the resolution of the Gogebic-Iron County Airport Board of Supervisors.

By: Norman Mineta

By this order, the Department is selecting Astral Aviation, Inc. d/b/a Skyway Airlines (Skyway), operating as the Midwest Express Connection, a wholly owned subsidiary of Midwest Express Airlines, to provide subsidized essential air service (EAS) for a two-­year period at Manistee/Ludington, Michigan, at an annual rate of $485,545, and at Ironwood, Michigan/Ashland, Wisconsin, for a similar two-year period, at an annual rate of $479,879. Also by this order, the Department is deferring action on selecting a carrier to provide subsidized EAS at Iron Mountain/Kingsford, Michigan. Lastly, we are resoliciting proposals from carriers interested in providing replacement service at Oshkosh, Wisconsin.

As is our normal procedure when we are aware that other carriers are interested in submitting competing bids, by Order 2002-2-18, March 4, 2002, we requested proposals to serve these communities. In response, we received proposals from the incumbent, Great Lakes, as well as from Skyway and from Mesa Air Group on behalf of its wholly owned subsidiary, Air Midwest, Inc. (Air Midwest). Great Lakes currently provides service into O'Hare as a United Air Lines code-share carrier, and it would continue to do so. Air Midwest does not currently serve Chicago O'Hare, and, while it operates as US Airways Express in other markets, it has no code-share arrangements in place at O'Hare. Midwest Express uses Milwaukee as its hub and Skyway provides feed to Midwest Express as a code-share affiliate, as it would if selected to serve these routes.

By: Read Van de Water

By this order, the Department is tentatively terminating the subsidy eligibility of Oshkosh, Wisconsin, under the Essential Air Service program because the subsidy per passenger exceeds the $200 per passenger statutory ceiling and the community is less than 210 highway miles from the medium hub airport at Milwaukee. The Department is also setting past-period subsidy rates, retroactive to October 1, 2001, for service provided by Great Lakes Aviation, Ltd.  at Oshkosh, as well as at Manistee/Ludington, Michigan, and Ironwood, Michigan/Ashland, Wisconsin.

By: Read Van de Water

May 11, 2005

Correspondence of Wisconsin Department of Transportation

In June of 2002, we wrote to you about the problems citizens of Wisconsin and Michigan were experiencing with the previous provider. Service was poor and expensive. We urged your consideration of Skyway Airlines (dba Midwest Connect) because Skyway proposed to provide better service at a lower cost, "hubbing" through Midwest Airlines at Milwaukee.

I am very pleased to report that Skyways has made good on their pledge and that service is greatly improved. We have reviewed the most recent (through March, 2005) Ironwood enplanement data and found that enplanements have tripled since Skyway Airlines took over. Enplanements in January 2002 were l 11, but have climbed to 306 in January 2005. Enplanements also tripled the 2002 levels for February and March of 2005.

The Airport's Board of Commissioners was unanimous in voting to request that you continue the Skyway's Airlines service. The Commission reports that the local residents enthusiastically support the service. That observation is clearly supported by the enplanement numbers. Skyways also proposed continuation of their service at the lowest federal subsidy of all the competing proposers. I request that you act favorably on the Skyways proposal to continue its service to the people of northern Wisconsin.

By: Frank Busalacchi

OST-1999-5712 - EAS at Ashland, WI
OST-1996-1266 - EAS at Ironwood, MI

May 11, 2005

Re: Documents Entered in Incorrect Document

By: Luther Dietrich

May 9, 2005

Comments of Gary Sherman

By: Gary Sherman, 608-266-7690, rep.sherman@legis.state.wi.us

May 27, 2005

Ex-Parte Letter to Wisconsin DOT

By: Karan Bhatia

Re: Request for Community Comments

For $799,779 (or approximately $398,000 more than the existing rate), Great Lakes would provide two one‑stop (at Rhinelander, Wisconsin, Iron Mountain, Michigan or Escanaba, Michigan) round trips each weekday and each weekend.

By: EAS Division, Dennis DeVany

March 6, 2007

Comments of Wisconsin Department of Transportation

We have reviewed the proposal by Great Lakes Aviation and believe it will address the transportation needs of the citizens of North Central Wisconsin, provided the current Rhinelander, Wisconsin arrivals and departures continue. We opposed eliminating service to Rhinelander and request this issue be resolved by Great Lakes Aviation to benefit all parties.

By: Frank Busalacchi, 608-266-1113, sec.exec@dot.state.wi.us

OST-1996-1711 - Manistee/Ludington
OST-1999-5175 - Iron Mountain/Kingsford
OST-2003-15128 - Escanaba
OST-1996-1266 - Ironwood

March 16, 2007

Comments of Michigan Department of Transportation

We were disappointed to learn that Skyway Airlines did not submit a proposal to continue service in these markets. The excellent service they provided allowed each of these communities reliable access to the national air transportation system while affording a high level of customer service. However, we are encouraged that bids for replacement service have been received from Great Lakes Airlines and, in the case of Delta County Airport, by Mesaba Airlines as well.

In the case of Gogebic-Iron County, Ford, and Manistee-Blacker Airports, Great Lakes Airlines is the lone bidder for replacement service with its offering of daily flights to Milwaukee's General Mitchell International Airport. Once again, we stress the importance of closely monitoring the timing and reliability of service as well as the establishment of a formal codeshare agreement with Midwest Express Airlines. Without such a code-share, service to Milwaukee will only serve origin and destination passengers and stifle market growth in these communities.

While requiring greater subsidy than the proposal offered by Great Lakes Airlines, Mesaba Airlines' proposal to serve Delta County Airport appears to better meet the community's needs. As proposed, the nonstop service to Detroit Metro Airport will enable the community to regain a substantial number of passengers that were migrating to neighboring airports in search of nonstop service and/or larger aircraft. In addition, the myriad connections available through Detroit will enable Escanaba area travelers a host of recreational and business travel opportunities.

By: Director, Rob Abent, 517-373-2080

OST-1999-5175 - Iron Mountain/Kingsford
OST-1996-1266 - Ironwood

March 15, 2007

Comments of City of Wakefield

The city would like Great Lakes Aviation, or whatever airline becomes the EAS carrier, to continue the same or a very similar schedule to the one that is currently place in place with Midwest Connect. The City is appreciative of the early morning departures and evening incoming flights. However, additional flights would enhance the service being offered at the GI Airport.

By: City Manager, John Siira

OST-1996-1711 - Manistee/Ludington
OST-1999-5175 - Iron Mountain/Kingsford
OST-2003-15128 - Escanaba
OST-1996-1266 - Ironwood

March 19, 2007

Statement of Midwest Airlines

Midwest Airlines, Inc. hereby states that Midwest has signed a letter of intent with Great Lakes Aviation, Ltd. to codeshare with Great Lakes on its flights between Midwest's Milwaukee, Wisconsin hub and Iron Mountain/Kingsford, Ironwood/Ashland. Manistee/Lundington and Escanaba in the event that Great Lakes is selected in this proceeding. The letter of intent states that the entry into the code share agreement by Midwest and Great Lakes is subject to mutual agreement on definitive documentation of the arrangement.

Counsel: Silverberg Goldman, Robert Silverberg, 202-944-330

OST-1999-5712 - EAS at Ironwood, MI/Ashland, WI
OST-1996-1266 - EAS at Ironwood, MI

March 22, 2007

Re: Memorandum - Documents Placed in Wrong Docket

We have recently learned that we have inadvertently caused a number of documents to be issued or filed in an incorrect docket. More specifically, ten items which should have been issued or filed in Docket OST-1996-1266 have been entered in Docket OST-1999-5712.

By: EAS & Domestic Analysis

OST-2003-15128 - Escanaba
OST-1996-1266 - Ironwood

March 30, 2007

DOT Letter to:

• District Director of Michigan Congressman Bart Stupak
• Michigan Senator Carl Levin

We appreciate the communities' comments in favor of service with larger aircraft to a larger hub airport. However, as you know, the core objective of the EAS program is to provide communities with a link to the National air transportation system, and not necessarily all of the service that communities might prefer.

By: Office of Aviation Analysis, Dennis DeVany

Order 2007-3-21
OST-1996-1711 - Manistee/Ludington
OST-1999-5175 - Iron Mountain/Kingsford
OST-2003-15128 - Escanaba
OST-1996-1266 - Ironwood/Ashland

Issued March 30, 2007 | Served April 4, 2007

Order Selecting Carrier and Setting Final Subsidy Rates

By this order, the Department is selecting Great Lakes Aviation, Ltd. to provide subsidized essential air service at all four of the above-captioned communities for the two-year period beginning when the carrier inaugurates full service. The annual subsidy rates will be set at: $797,885 for Iron Mountain/Kingsford, $799,779 for Ironwood/Ashland; $957,978 for Manistee/Ludington; and $617,415 for Escanaba.

By: Andrew Steinberg

Order 2007-6-5
OST-1996-1711 - Manistee/Ludington
OST-1999-5175 - Iron Mountain/Kingsford
OST-2003-15128 - Escanaba
OST-1996-1266 - Ironwood/Ashland

Issued June 6, 2007 | Served June 11, 2007

Erratum

By this order, the Department is correcting the final operational and financial unit rates it will pay to Great Lakes Aviation, Ltd., to provide subsidized essential air service at the four above-captioned communities for the two-year period beginning when the carrier inaugurates full service. Great Lakes' annual subsidy rates remain unchanged; however, the corrected operational and financial unit rates are summarized in Appendix A. This order also corrects the annual total subsidy rate that Skyway Airlines, Inc., d/b/a Midwest Connect will be compensated for its provision of EAS in the interim period, until Great Lakes inaugurates full service. The Department will only subsidize the number of flights that it subsidized under the previous contract. Therefore, Skyway's annual total subsidy for its provision of EAS at all four communities will be set at $3,682,282, not $3,817,224, as stated in Order 2007-3-21.

By: Todd Homan

Order 2007-10-41
OST-1996-1711 - Manistee/Ludington
OST-1999-5175 - Iron Mountain/Kingsford
OST-2003-15128 - Escanaba
OST-1996-1266 - Ironwood/Ashland

Issued October 29, 2007 | Served November 1, 2007

Order Requesting Proposals | Word

By this order, the Department is re-soliciting proposals from air carriers interested in providing essential air service at any or all of the four communities identified above. The carrier that was selected in March 2007 has not yet inaugurated service and, therefore, we are requesting proposals for a new two-year period, beginning when the carrier inaugurates full service, with or without subsidy. Carriers should file their proposals no later than November 19, 2007.

We vacate Order 2007-3-21, selecting Great Lakes Aviation, Ltd., to provide essential air service at:  Iron Mountain/Kingsford, Michigan; Ironwood, Michigan/Ashland, Wisconsin; Manistee/Ludington, Michigan; and Escanaba, Michigan.

With specific respect to Iron Mountain/Kingsford, Ironwood/Ashland, Manistee/Ludington and Escanaba, the Department expects proposals consisting of service with 19-passenger aircraft and offering a mix of two or three round trips a day between each community and Milwaukee.  We would also entertain proposals with larger aircraft, offering fewer daily trips.  Such service is generally consistent with what the communities currently receive, and fully satisfies their essential air service requirements.  We encourage proposals that meet those requirements in an efficient manner.  Carriers are also welcome to propose more than one service option, if they choose; they need not limit themselves to those requirements if they envision other, potentially more attractive service possibilities -- different hubs, for example -- with subsidy requirements that remain competitive.

By: Michael Reynolds

OST-1996-1711 - Manistee/Ludington
OST-1999-5175 - Iron Mountain/Kingsford
OST-2003-15128 - Escanaba
OST-1996-1266 - Ironwood/Ashland

November 19, 2007

Proposals of Big Sky Airlines

Big Sky plans on operating this service as Big Sky Airlines. We will work with our code-share partners US Airways and Northwest to attempt to extend our code-share agreements to these communities. Big Sky also understands from conversations with Midwest Airlines that a similar code-share agreement will be possible if Big Sky is awarded service to these markets.

Big Sky will operate the service proposed herein with the 19 seat Beechcraft 1900D aircraft. Big Sky continues to upgrade its reservation system and now offers customers the ability to have interline e-ticketing available for flights connecting to both Northwest Airlines and Alaska/Horizon Air.

The service pattern includes:

• 18 Weekly Escanaba - Milwaukee roundtrips
• 18 Weekly Iron Mountain/Kingsford - Milwaukee roundtrips
• 12 Weekly Ironwood/Ashland - Milwaukee roundtrips
• 12 Weekly Manistee/Ludington - Milwaukee roundtrips

By: Big Sky, Fred deLeeuw, 406-247-3931, fred.deleeuw@bigskyair.com

December 5, 2007

Gogebic-Iron County Airport in Support of Big Sky Airlines

This letter is in response to the proposal submitted by Big Sky Transportation Company doing business as Big Sky Airlines. After reviewing the proposal, the Gogebic-Iron County Airport Board is in favor of supporting the EAS proposal 2007-10-41. The code sharing possibilities with Midwest Airlines and other participating parties, and the proposed flight schedule should help the Gogebic-Iron County Airport's future growth.

By: Airport Manager, Duane DuRay, 906-932-3121, iwd@chartermi.net

OST-1996-1711 - Manistee/Ludington
OST-1999-5175 - Iron Mountain/Kingsford
OST-2003-15128 - Escanaba
OST-1996-1266 - Ironwood/Ashland

January 2, 2008

Re: Big Sky Airlines Withdraw

Big Sky hereby withdraws from the Michigan case.

By: Fred deLeeuw

OST-1996-1711 - Manistee/Ludington
OST-1999-5175 - Iron Mountain/Kingsford
OST-2003-15128 - Escanaba
OST-1996-1266 - Ironwood/Ashland

January 8, 2008

Michigan State DOT in Support of Mesaba Airlines

While encouraged by the interest of Big Sky Airlines in serving these airports, their recent announcement of reduced operations and possible liquidation precludes them as a viable bidder. Therefore, we support selection of the dtemative bids offered by Mesaba Airlines dba Northwest Airlink for service at Ford and Delta County Airports.

By: Gerald Edwards

Order 2008-1-13
OST-1999-5175 - Iron Mountain/Kingsford
OST-1996-1266 - Ironwood, MI/Ashland, WI
OST-1996-1711 - Manistee/Ludington
OST-2003-15128 - Escanaba

Issued | Served

Order Selecting Carrier, Setting Final Subsidy Rates and Requesting Proposals

By this order, the Department is: (a) selecting Mesaba Aviation, Inc., d/b/a Mesaba Airlines, operating as Northwest Airlink, utilizing 34-seat Saab 340 aircraft to provide subsidized EAS at Iron Mountain/Kingsford and Escanaba Michigan, at a combined annual subsidy rate of $2,251,767; and (b) requesting proposals by February 1 from carriers interested in providing EAS at Ironwood, Michigan/Ashland, Wisconsin, and Manistee/Ludington, Michigan, for a new two-year period, beginning when the carrier inaugurates full service, with or without subsidy. Mesaba will provide EAS at Iron Mountain/Kingsford and Escanaba, Michigan, for a new two-year term beginning when it inaugurates full service.

By: Michael Reynolds

Order 2008-2-12
OST-1996-1266 - Ironwood, MI/Ashland, WI
OST-1996-1711 - Manistee/Ludington

Issued February 8, 2008 | Served February 13, 2008

Order Requesting Proposals

By this order, the Department is re-soliciting proposals from air carriers interested in providing essential air service at the two communities identified above. The carrier that was selected in March 2007 never inaugurated service, and no other carrier responded to the Department’s most recent solicitation for proposals at the two communities, which closed on February 1, 2008. Therefore, we are again requesting proposals for a new two-year period, beginning when the carrier inaugurates full service, with or without subsidy. Carriers should file their proposals no later than February 27, 2008.

With specific respect to Ironwood/Ashland and Manistee/Ludington, the Department expects proposals consisting of service with 19-passenger or larger aircraft and offering two round trips a day between each community and Milwaukee. We would also entertain proposals with smaller aircraft, offering more daily trips, subject to the concurrence of the communities.

By: Todd Homan

OST-1996-1266 - Ironwood, MI/Ashland, WI
OST-1996-1711 - Manistee/Ludington

February 25, 2008

Motion for Extension of Time to Submit Proposals of Pacific Wings

Pacific Wings hereby moves for a 15-day extension of the period set forth in Order 2008-2-12, until March 11, 2008, in order to allow the Department to poll the communities with respect to whether they would entertain service by an air carrier using 9-seat single-engine turboprop aircraft. While Pacific Wings is interested in providing service to these communities, it is reluctant to devote the resotirces necessary to submit a proposal in the absence of an expression from each community of its willingness to be served by aircraft with fewer than 15 seats. The requested extension of time should provide sufficient time for the Department to obtain a written expression of intent from each community and for Pacific Wirgs to submit a proposal should the communities agree to service using 9-seat aircraft.

Counsel: Patton Boggs, Gregory Walden, 202-457-6135, gwalden@pattonboggs.com

OST-1996-1266 - Ironwood, MI/Ashland, WI
OST-1996-1711 - Manistee/Ludington

February 27, 2008

Withdrawal of Motion for Extension of Time to Submit Proposals of Pacific Wings

Pacific Wings Airlines, Ltd., by its counsel, hereby withdraws its motion to extend time to submit proposals in these proceedings. Pacific Wings understands that notwithstanding the urgent pleas from Midwest Connect to Pacific Wings to take its place and serve these Essential Air Service communities, Midwest Connect simultaneously was soliciting one or more other carriers, at least one of whom will submit a proposal. Pacific Wings apologizes to the Department for wasting its time.

Counsel: Patton Boggs, Gregory Walden, 202-457-6135, gwalden@pattonboggs.com

February 27, 2008

Proposal of Great Lakes Airlines

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 Milwaukee hub. In addition, we will endeavor to obtain code-sharing arrangements with major carriers serving the Milwaukee market, to allow passengers in these EAS markets the seamless service, in which they are accustomed to, through Milwaukee to the destinations served by our partners and prospective partners.

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

Proposal Part	Service Point(s)	Hub(s) Served	Round Trips	Equipment	Subsidy Requirement	Passengers Forecast	Average Fare
1	Ironwood	Milwaukee	2	1900D	$1,492,865	6250	$97.92
2	Manistee	Milwaukee	2	1900D	$1,799,395	5750	$79.00

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

OST-1996-1266 - Ironwood, MI/Ashland, WI
OST-1996-1711 - Manistee/Ludington

February 27, 2008

DOT Denying Motion of Pacific Wings to Extend Proposal Date

On February 25, Pacific Wings Airlines, Ltd. filed a motion with the Department requesting a 15-day extension, until March 11, of the proposal due date. Specifically, Pacific Wings stated that the extension of time "should provide sufficient time for the Department to obtain written expression of intent from each community and for Pacific Wings to submit a proposal should the communities agree to service using 9-seat aircraft."

On February 27, the Department telephoned the airport managers at each of the above-mentioned communities to solicit their comments on Pacific Wings' motion. Both airport managers opposed Pacific Wings' motion for a variety of reasons. As a result, we deny Pacific Wings' motion to extend the due date for EAS proposals at these two communities.

By: Dennis DeVany

March 3, 2008

Re: Gogebic-Iron County Airport in Support of Great Lakes Aviation

Upon reviewing Great Lake Aviation's proposal to provide essential air service for the Gogebic-Iron County Airport, the Airport Board, city officials and local businesses see this as an acceptable plan. The region's business travelers have, in the past, voiced much concern over Midwest Airline's previous schedule change which restricted our early morning flights and late night arrivals. The airline's station manager has voiced her encouragement toward the return of an early morning flight. We believe that the proposed equipment and flight schedule will, once again, create the increase in boardings that we experienced in the past and look for in the future. It is our feeling that our advertising campaign through the SCASDP will become more effective with the proposed schedule.

One concern that again seems to resurface is the possibility of competing with the one-stop in Rhinelander for limited available seats. The airport, along with its constituents, would like to request the option of a minimum of one direct flight daily to Milwaukee. We would like the DOT to entertain the possibility of giving Great Lakes Airlines the flexibility to possibly institute a direct flight if passenger boardings exceed aircraft capacity and Ironwood is forced to compete for the limited seats.

By: Airport Manager, Duane DuRay, 906-932-3121

OST-1999-5175 - Iron Mountain/Kingsford
OST-1996-1266 - Ironwood, MI/Ashland, WI
OST-1996-1711 - Manistee/Ludington
OST-2003-15128 - Escanaba

April 1, 2008

Re: Cessation and Returning of Certificates and Authorities of Skyway Airlines

As the Department is now aware, Skyway Airlines, Inc. will terminate all air carrier service after April 5, 2008. As a result. Skyway will be returning for cancellation its air carrier certificates and authorities to the DOT and FAA for cancellation. This decision was a most reluctant, but necessary one. Skyway has not earned any operating or net profits for at least the last three years and has no prospects for doing so, particularly given the current and all-time high price of aviation fuel. The cessation of all Skyway operations necessarily includes its operations to the communities Iron Mountain/Kingsford, Michigan, Ironwood, Michigan/Ashland, Wisconsin, Manistee/Lundington, Michigan and Escanaba, Michigan.

Skyway has been providing EAS to the Four Communities for many years and has been "held in" (since June 1, 2007) awaiting Great Lakes to commence service—an obligation on which it defaulted leading to the decision of the Department to vacate Order 2007-3-21 selecting Great Lakes to provide subsidized service to the Four Communities. Subsequently another applicant—Big Sky—withdrew its proposal to provide the essential air service and Mesaba chose only to serve two of the four EAS points. Later in response to Order 2008-1-13, Great Lakes proposed to provide the requested air service and then seemingly, once again, backed out, after making a formal proposal to the DOT. All during this time period the Department has been aware of the plans of Skyway to eliminate its Beech 1900 aircraft fleet when the Department was so advised in writing (having previously been orally advised) on February 9, 2007 when Skyway formally announced its intention not to continue to provide the essential air service. Skyway has nonetheless continued to provide uninterrupted EAS to the Four Communities, consistently and well, even though it incurred increasingly higher unit operating costs to do so.

Skyway lacks any ability to continue to offer essential air service to the Four Communities. There is no statutory basis for requiring Skyway to provide to service when it lacks the capacity to do so. Nor is there any basis to take action against Skyway's code share partner. Midwest Airlines, under §41739. This is truly an unfortunate, but totally unavoidable situation. Skyway will continue to reaccommodate previously booked passengers on other services of Midwest provided through Muskegon, Grand Rapids, Green Bay, Central Wisconsin / Wausau, and Appleton.

Skyway is continuing to work with Great Lakes to assist it in achieving its objective of providing essential air service to Ironwood and Manistee and hopes to be able to successfully conclude its agreements with Great Lakes to enable the carrier to serve Ironwood and Manistee. In addtion. Skyway extends this offer of cooperation to any other carrier that may wish to submit a proposal to the DOT to provide subsidized service in response to Order 2008-1-13 should Great Lakes choose not to proceed with its proposal.

Counsel: Silverberg Goldman, Robert Silverberg

Order 2008-4-10
OST-1996-1266 - Ironwood, MI/Ashland, WI
OST-1996-1711 - Manistee/Ludington

Issued April 7, 2008 | Served April 10, 2008

Order Selecting Carrier and Setting Final Subsidy Rates | Word

By this order, the Department is selecting Great Lakes Aviation, Ltd. to provide subsidized essential air service at Ironwood, Michigan/Ashland, Wisconsin, and Manistee/Ludington, Michigan, utilizing 19-seat Beech 1900D aircraft at a combined annual subsidy rate of $3,292,260, for a new two-year term beginning when it inaugurates full service.

This case is very straightforward, Great Lakes was the only carrier to submit a proposal and both communities support the selection of the carrier. Great Lakes is an established carrier, provides a significant amount of subsidized EAS throughout the country, and has previously served these two communities. The carrier anticipates obtaining a code-share agreement with Midwest Airlines and its proposed service would essentially replicate the existing (one-stop and nonstop) service to Milwaukee that Skyway Airlines has successfully provided for several years. We encourage the communities and the carrier to continue to work together to optimize the service patterns under this carrier selection. Finally, we note that Midwest Airlines is in the process of shutting down the operations of Skyway. The plans are for Great Lakes to take over these routes on or about April 6.

By: Michael Reynolds

April 22, 2008

Re: Proposal of Mesaba Airlines

In response to the Department's Order 2008-1-13, Mesaba Aviation, Inc., doing business as Northwest Airlink, is enclosing a detailed subsidy proposal for essential air service at Ironwood, MI at a level of thirteen roundtrip flights per week using 34-seat Saab 340 aircraft from Northwest's MSP hub. Service could initiate sometime on or after August 19, 2008.

By: John Spanjers

OST-1996-1711 - Manistee/Ludington
OST-1999-5175 - Iron Mountain/Kingsford
OST-2003-15128 - Escanaba
OST-1996-1266 - Ironwood/Ashland

April 23, 2008

Re: DOT Letter to Congressman Bart Stupak

First, we are not in a position to enforce contracts between third parties. Airline-airport relationships are essentially a landlord-tenant relationship, and the Department has neither the authority nor expertise to adjudicate contractual dispute between third parties.

Second, the EAS program was designed to provide scheduled air service to eligible communities, not to provide revenue to airports in the form of landing fees, rents, or fuel sales. Other than enplanement funds discussed below, the Department does not have the authority to compensate airports for foregone revenues.

Third, we contacted the FAA regarding your question about entitlement funds based on enplanement levels. The lack of service during calendar year 2008 at Delta County Airport may impact the airport's total enplanements and could impact their Airport Improvement Program passenger entitlement funding in FY 2010. However, Section 47114(c)(1)(E) of Title 49 of the United States Code contains a provision that allows the Department the discretion to reapportion the prior year's funding under certain circumstances. The FAA will consider its applicability to this airport and other communities that Skyway Airlines served when we are reviewing the calendar year 2008 enplanements in the spring of 2009.

Finally, DOT has been closely monitoring the negotiations between Great Lakes and Midway Airlines to effect the transfer of aircraft to Great Lakes. Furthermore, meetings and phone calls to both parties have taken place at the Assistant Secretary level, something that is unprecedented in the EAS program. Ultimately, though, this is a commercial transaction that must be resolved by the respective parties. If Great Lakes is not able to start service in a timely fashion, we will re-solicit proposals for replacement service.

By: Dennis DeVany

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