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OST-1996-1902

http://www.airport.cityofclovis.org/ - Clovis Municipal Airport


Kingman and Prescott, Arizona / Cortez, Colorado / Alamogordo/Holliman Air Force Base, New Mexico / Clovis, New Mexico and Silver City/Hurley/Deming, New Mexico (EAS)

Order 97-11-9 | OST-96-1899 | OST-96-1900 | OST-96-1901 | OST-1996-1902 - Clovis | OST-96-1903

Issued November 6, 1997 | Served November 13, 1997

Order Revising Service Levels and Subsidy Rates

By this order the Department of Transportation is authorizing increased service levels and subsidy rates for the subsidized essential air service provided by Mesa Air Group at the six communities listed above beginning when the increased service is implemented (but no earlier than October 1, 1997) through September 30, 1998.

Exhibit A: Map | Exhibit B: Calculation of Compensation Requirement | Exhibit C: EAS Service | Exhibit D: Historical Traffic

By: Charles Hunnicutt



Order 98-12-26
OST-96-1899
OST-96-1901
OST-96-1902
OST-96-1903
Issued December 22, 1998
Served December 24, 1998
pdficon.gif (87 bytes)Order to Show Cause Essential Air Service - Kingman & Prescott, AZ; Alamogordo/Hollman AFB & Silver City/Hurley/Deming, NM - Mesa Airlines
    Appendix A:  Map of the States of Arizona and New Mexico  
    Appendix B:  Historical Origin-Destination Passenger Traffic and Average Daily Enplanements  
    Appendix C:  Mesa Air Group Provision of Basic Essential Air Searvice at Kingman and Prescott, AZ  
    Appendix D:  Basic EAS to Be Provided  
    Appendix E:  Service List  

The Department directs all interested persons to show cause within 20 days from the date of service of this order why it should not reselect Mesa Air Group to provide basic essential air service at Kingman and Prescott, Arizona, and Alamogordo/Holloman Air Force Base, Clovis, and Silver City/Hurley/Deming, New Mexico, as described in Appendix D to this order, for the period of October 1, 1998, through September 30, 2000;

By:  Charles Hunnicutt



OST-96-1902 January 14, 1999 pdficon.gif (87 bytes)Proposal of Northeast Aviation Acquisition to Provide EAS EAS
    Exhibit  

We have signed a Letter of Intent to acquire an existing carrier, that is currently operating under Part 135 of the DOT Regulations. We expect to conclude this transaction within 60 days, and to then take the necessary steps to transition to Part 121. During this transition phase eve w~11 utilize the services of Fairchild's Merlin Express operations, a carrier operating with Part 121 authority, that has been found fit, willing and able" under the applicable regulations. Should we be unable to complete the acquisition, we would prepare a new entrant application.

By:  A Douglas Gumula, 215-643-3095



OST-96-1902 January 14, 1999 pdficon.gif (87 bytes)Proposal of Northeast Aviation Acquisition to Provide EAS EAS
    Exhibit  

Northeast Aviation Acquisition Corp. proposes to provide essential air service for a two year period, as detailed below. We have developed our proposals after discussing the respective communities' needs with their representatives. Our service proposals will utilize Fairchild-Dornier 19-seat aircraft, initially operated through Fairchild's Merlin Express wet-lease program. We would be prepared to begin an orderly transition from the incumbent carrier immediately upon acceptance of our proposals. Our plans would be to commence operations within 90 days of acceptance of our proposals.  We have signed a Letter of Intent to acquire an existing carrier, that is currently operating under Part 135 of the DOT Regulations. We expect to conclude this transaction within 60 days, and to then take the necessary steps to transition to Part 121. During this transition phase eve w~11 utilize the services of Fairchild's Merlin Express operations, a carrier operating with Part 121 authority, that has been found fit, willing and able" under the applicable regulations. Should we be unable to complete the acquisition, we would prepare a new entrant application.

By:  A Douglas Gumula, 215-643-3095



 

Order 99-9-17
OST-96-1899
OST-96-1901
OST-96-1902
OST-96-1903
September 27, 1999 Final Order  EAS at Kingman and Prescott, Arizona; Alamogordo/Holloman Air Force Base, New Mexico; Clovis, New Mexico; Silver City/Hurley/Deming, New Mexico

Final Order 99-9-17 is making final the tentative selection originally proposed in show-cause Order 98-12-26, December 22, 1998, of Mesa Air Group to provide basic essential air service with subsidy support at Kingman and Prescott, Arizona

By:  Bradley Mims



Order 01-5-18
OST-96-1899
OST-96-1901
OST-96-1902
OST-96-1903
Issued May 15, 2001
Served May 18, 2001
Order To Show Cause Kingman and Prescott, AZ; Alamogordo/Hollman AFB and Silver City/Hurley/Deming, NM
    Appendixes:  Map, O&D Traffic, EAS to be Provided  
    Service List  

We have tentatively decided to reselect Mesa to provide essential air service at the five Arizona and New Mexico points for another two-year period. We have reviewed the service and traffic history for these communities and find that the service proposed is reasonable. We also tentatively find that Mesa's proposed subsidy rates are reasonable.

As is our customary procedure, we contacted Mesa when the end of the selection period at the five points was approaching and requested that, if the carrier found that subsidy was necessary for its continued service at the communities, it submit a proposal to the Department. Mesa responded by submitting and negotiating with us a proposal to continue to provide the current service levels (all with 19-passenger Beech 1900 aircraft): 18 one-stop or nonstop Kingman-Phoenix and 18 nonstop Prescott-Phoenix round trips each week for $1,083,003 per year; 18 nonstop Alamogordo-Albuquerque round trips each week for $923,789 annually; 18 nonstop Clovis-Albuquerque round trips each week for $1,118,197 annually; and 18 nonstop Silver City-Albuquerque round trips each week for $935,667 annually.

By:  Susan McDermott



Order 2003-5-25
OST-96-1899 - Kingman and Prescott, Arizona
OST-96-1901 - Alamogordo/Holloman AFB, New Mexico
OST-96-1902 - Clovis, New Mexico
OST-96-1903 - Silver City/Hurley/Deming, New Mexico

Issued May 23, 2003 | Served May 29, 2003

Order Setting Interim Subsidy Rates | Word

By Order 2001-5-18, May 15, 2001, the Department selected Mesa Airlines to provide subsidized essential air service at Kingman, Prescott, Alamogordo/Holloman Air Force Base, Clovis and Silver City/Hurley/Deming through March 31, 2003. Those rates have expired without our having established new rates as yet. Consequently, it is necessary for us to extend the expired rates as interim rates, subject to retroactive adjustment, in order to ensure that Mesa will continued to be paid for its services until the we can establish new final rates, retroactive to April 1, 2003. The new final rates may be higher, lower or the same as the interim rates we are extending here.

The Department extends as interim rates the recently expired subsidy rates for the essential air services operated by Mesa Airlines, Inc., d/b/a US Airways Express, at the five communities, until new final rates can be established.

By: Randall Bennett



Order 2004-8-22
OST-96-1902 - Clovis, New Mexico
OST-96-1903 - Silver City/Hurley/Deming, New Mexico

Issued August 19, 2004 | Served August 24, 2004

Order Setting Final Subsidy Rates and to Show Cause | Word

Because of the extensive past-period rate issues that are combined with the carrier selection process in this case, we have decided to process the carrier selection for Clovis and Silver City/Hurley/Deming through show-cause procedures, rather than by initially soliciting proposals from all interested applicants.  Potential applicants will have an opportunity to submit competing proposals in response to our tentative selection decision here.

As is customary when we use show-cause procedures, we contacted Mesa and requested that if the carrier found that subsidy was necessary for its continued service at the communities, it submit a proposal to the Department.  Mesa responded by submitting and negotiating with us a proposal to continue to provide the current service level, three nonstop round trips each weekday and each weekend to Albuquerque, at each community with 19-passenger Beech 1900D aircraft:  Mesa’s annual subsidy requirements for this service would be $1,439,865 for Clovis and $1,352,983 for Silver City/Hurley/Deming.  (See Appendix B, pages 3 and 6 for summary computations of these rates.)

We have tentatively decided to reselect Mesa Air Group, d/b/a Air Midwest, Inc., to provide essential air service at Clovis and Silver City/Hurley/Deming for the period of June 1, 2004, through July 31, 2006.  We find that Mesa’s proposed subsidy rates are reasonable for the proposed level of service.

By: Karan Bhatia



OST-96-1902 - EAS at Clovis, NM
OST-96-1903 - EAS at Silver City/Hurley/Demming, NM


September 23, 2004

Proposal of Great Lakes Aviation

In light of the instructions in the order to provide a "last and final" offer for the service to these points, Great Lakes has provided a list of options for service to these Essential Air Service points for the communities and the Department to choose from.

In the recent successful bids for service points in Wyoming, Nebraska, Colorado and South Dakota, Great Lakes bid to provide service in the local markets to Denver as Great Lakes Airlines, and scheduled the service to connect with our code-share partners Frontier Airlines and United Airlines. Great Lakes will provide service at these New Mexico points as Great Lakes Airlines to Albuquerque, and with our interline agreements with all the Major airlines, will be able to offer connecting bag service through the Albuquerque and Phoenix hubs. In addition we will endeavor to extend our code-share arrangement with Frontier and United, who both service the Albuquerque - Denver market, to allow seamless service through Albuquerque and Denver to all the destinations served by our partners. All proposals contemplate the use of 19 seat Beech 1900D Airliner equipment.

By: Dave Thomas


October 8, 2004

Proposal of Mesa Airlines

Mesa has proudly served both of these communities for over two decades. We continue to maintain an active presence throughout the state of New Mexico, and can leverage existing infrastructure ‑ maintenance facilities, crew domiciles, spare aircraft, etc ‑ to ensure reliable and cost‑effective air service.

Of particular note, we have introduced over the last year aggressive bulk ticketing and market development initiatives and are committed to maintaining this level of promotional support going forward. We have established a full‑time community affairs liaison and she has already developed a broad local network of political and community leaders.

Specific to Clovis, the community has asked us to work with them on a strategy to extend air service to Dallas as the existing demand for eastbound connections - particularly from Cannon Air Force base - is substantial They are undertaking a series of initiatives, e.g. an 8000-foot runway extension, and also hope to access funding from a previous grant as well as local matching funds.

By: Lisa Larsen



OST-96-1902 - EAS at Clovis, NM
OST-96-1903 - EAS at Silver City/Hurley/Demming, NM

October 13, 2004

Re: Certificate of Service (Great Lakes)

By: Mary Kelly



November 1, 2004

Re: Letter to Tom Baca, Director of New Mexico Department of Transportation, Requesting Final Comments

I would like to update you on the essential air service situation at Clovis and to give you an opportunity to submit any comments if you wish. As you know, by Order 2004‑8‑22, August 19, 2004, the Department provided for all interested air carriers to submit proposals to provide essential air service at Clovis. In response to that order, we received eight proposal options from Great Lakes Aviation, Ltd., and Mesa Air Group, Inc., d/b/a Air Midwest. I am attaching brief summaries of these proposals to this letter. Attachment A summarizes the subsidy calculations, while Attachment B summarizes the proposed schedules. (Note that although both applicants also submitted proposals to serve Silver City/Hurley/Deming, I am only including summaries for Clovis service in the attachments.) I would also urge you to review the full proposals as submitted by the carriers.

Please note that the estimated average passenger fare shown in a carrier's proposal does not necessarily reflect the average local fare that passengers would actually pay, but rather reflects that portion of the total ticket price, e.g., the Clovis-Albuquerque portion of a Clovis-(Albuquerque)-Washington fare, that would go to the essential air service carrier. Also, the fare shown is net of certain charges such as Federal excise or ticket taxes and Passenger Facility Charges. Of course, carriers have the discretion to charge fares they deem appropriate, and the passenger fares presented in their proposals have been developed for subsidy rate computation purposes only. Based on the cost elements incorporated in the carriers' computation summaries, the carriers would have to realize passenger fares comparable to the averages shown in their proposals in order to achieve break-even or profitable operations without subsidy.

By: Office of Aviation Analysis, Dennis DeVany


November 1, 2004

Re: Letter to Steve Summers, Clovis Municipal Airport Manager, Requesting Final Comments

By: Office of Aviation Analysis, Dennis DeVany


November 1, 2004

Re: Letter to David Lansford, Mayor of Clovis, NM, Requesting Final Comments

By: Office of Aviation Analysis, Dennis DeVany



OST-96-1902 - EAS at Clovis, NM
OST-96-1903 - EAS at Silver City/Hurley/Demming, NM


November 4, 2004

Re: The Clovis City Commission Letter in Support of Great Lakes Aviation

By: David Lansford


November 18, 2004

Re: The Grant County Commission Letter in Support of Great Lakes Aviation

By: Henry Torres


November 18, 2004

Re: The Grant County Airport Letter in Support of Great Lakes Aviation

By: Terrell Grimes



OST-96-1902 - EAS at Clovis, NM
OST-96-1903 - EAS at Silver City/Hurley/Demming, NM

November 15, 2004

Re: Letter from The New Mexico Aviation Division Deferring Selection to Each Community

By: Thomas Baca



Order 2004-12-21
OST-96-1902 - Clovis, New Mexico
OST-96-1903 - Silver City/Hurley/Deming, New Mexico

Issued December 29, 2004 | Served January 5, 2004

Order Selecting Carrier | Word

By this order, we are selecting Great Lakes Aviation, Ltd., to provide essential air service with 19-passenger Beech B1900D aircraft at Clovis and Silver City/Hurley/Deming, New Mexico, for two years at a combined annual subsidy rate of $1,718,113.

By: Karan Bhatia



Order 2006-11-24
OST-1996-1902 - Clovis
OST-1996-1903 - Silver City/Hurley/Deming

Issued November 27, 2006 | Served November 30, 2006

Order Requesting Proposals | Word

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Clovis and Silver City/Hurley/Deming, New Mexico for the two-year period beginning May 1, 2007, with or without subsidy.

With specific respect to Clovis and Silver City/Hurley/Deming, we ask that carriers submit proposals for two round trips a day (12 round trips per week) to Albuquerque or another suitable hub with 15-seat or larger, pressured aircraft.  In order to give the Department and the communities as broad an array of proposals as possible from which to choose, carriers are also welcome to prepare more than one service option; they need not limit themselves to these requirements if they envision other, potentially more attractive service possibilities, different hubs, for example, with subsidy requirements that remain competitive.

By: Todd Homan



OST-1996-1902 - Clovis
OST-1996-1903 - Silver City/Hurley/Deming


January 3, 2007

Proposals of Great Lakes Aviation - Bookmarked

Proposal # Service Point(s) Hub(s) Served Round Trips Equipment Subsidy Requirement Passenger Forecast
1 Clovis and Silver City Albuquerque and Denver 2 - SVC- ABQ
2 - CVN-ABQ
1900D $2,457,877 4670
4700
2 Silver City Phoenix 2 1900D $992,799 5200
3 Clovis Denver 2 1900D $699,968 4000
4 Clovis Denver 3 1900D $999,932 6000

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

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


December 29, 2006

Proposal of Pacific Wings - Bookmarked

In response to Order 2006-11-24, Pacific Wings, L.L.C. submits the attached bids for provision of Essential Air Service at Clovis and Silver City/Hurley/Deming, New Mexico. We propose to provide both communities with two round trips each weekday and each weekend (12 round trips per week) to Albuquerque using nine-passenger Cessna Grand Caravan (C-208B) turboprop aircraft, at a combined annual subsidy rate of $1,492,296.00.

In order to provide USDOT and the EAS communities maximum flexibility, Pacific Wings is prepared to provide direct or one-stop service to one or both communities at the same rate.

By: Pacific Wings, Franklin Ford, 808-873-0877



January 8, 2007

Requesting Community Comments of:

By Order 2006-11-24, November 30, 2006, the Department solicited proposals from all interested air carriers to provide service at Clovis, as well as at Silver City/Hurley/Deming. In response to that order, we received proposals from two carriers: Great Lakes Aviation and Pacific Wings.

Please note that the average passenger fares shown in each proposal do not necessarily reflect the average local fare Clovis passengers would actually pay, but, rather, reflect a prorated portion of the total ticket price, e.g., the Clovis-Albuquerque portion of a Clovis-Albuquerque-Los Angeles ticket that the subsidized carrier would realize. Also, the fare shown is net of certain charges such as Federal transportation security fees, excise or ticket taxes, and Passenger Facility Charges.

We request that you review each proposal and service option and submit any comments you may have before we submit a recommendation to the Assistant Secretary. We ask that you submit any comments you may have as soon as possible, but in any case no later than February 9, 2007.

By: Dennis DeVany



OST-1996-1902 - Clovis
OST-1996-1903 - Silver City/Hurley/Deming

January 9, 2007

Comments of City of Albuquerque

It appears that Pacific Wings has the potential to serve the public interest, convenience and necessity to promote economical and sustainable intrastate air service in New Mexico, and we support the airline in this endeavor.

By: Fred Mondragon



OST-1996-1902 - Clovis
OST-1996-1903 - Silver City/Hurley/Deming

February 7, 2007

Grant of Extension

By letters to the communities listed above, dated January 8, 2007, the Department offered each community the opportunity to provide comments on the essential air service proposals submitted by Great Lakes Airlines and Pacific Wings. The deadline for comments was set as February 9, 2007. In an e-mail dated January 31, the County Manager for Grant County (Silver City), requested a one-week extension to file comments.

We are hereby granting Grant County's request and extending the date for comments from all communities listed above until February 16, 2007.

By: Dennis DeVany



February 16, 2007

City of Clovis in Support of Great Lakes Option 1

After full consideration, the Clovis City Commission has voted to support the proposal of Great Lakes Airlines (Option #1) to continue as the essential air services provider. This decision was reached after a full opportunity for both airlines to submit their proposals to the Civil Aviation Board, followed by an additional opportunity for Pacific Wings Airlines to make a presentation to the City Commission. The vote of the Clovis City Commissioner was unanimous.

By: Mayor, David Lansford



OST-1996-1902 - Clovis
OST-1996-1903 - Silver City/Hurley/Deming

February 20, 2007

Pacific Wings Will Withdraw its Proposals

Please accept this correspondence as notice that Pacific Wings Airlines hereby withdraws its bid for Essential Air Service in the above-referenced docket.

We regret that Pacific Wings will not have an opportunity to provide more economical and flexible air transportation alternatives to Clovis and Silver City, or to save the federal taxpayer millions of dollars in the process. We hope the information provided here will assist USDOT and the congress in future evaluations of the program, to drive cost savings, improved efficiencies and greater public benefit from this valuable program.

By: Pacific Wings, Greg Kahlstorf



Order 2007-3-18
OST-1996-1902 - Clovis
OST-1996-1903 - Silver City/Hurley/Deming

Issued March 20, 2007 | Served March 23, 2007

Order Selecting Carrier

By this order, we are selecting Great Lakes Aviation, Ltd. to provide subsidized essential air service at Clovis and Silver City/Hurley/Deming, New Mexico, for two years, beginning May 1, 2007, through April 30, 2009. Clovis will receive 18 one-stop round trips per week to Denver at an annual subsidy of $999,932. Silver City/Hurley/Deming will receive 12 nonstop weekly round trips to Phoenix at an annual subsidy of $992,799. Both communities will be served with 19-passenger Beech 1900 aircraft. The total combined annual subsidy is $1,992,731.

By: Andrew Steinberg



OST-1996-1902
OST-1996-1903


March 23, 2007

Objections of Mayor of Clovis

I am writing to strongly object to the order issued this week awarding the Essential Air Service Contract to Great Lakes Airlines for service to Denver. The Clovis City Commission voted February 15th, 2007 in support of the proposal for Great Lakes Airlines (Option 1) to continue as the Essential Air Service provider for Clovis.

It is critical that Clovis maintains air service to and from Albuquerque and I restate our support for Option 1. We would be most grateful if you could reconsider Docket Number OST-1996-1902 and allow for the implementation of Option 1 as submitted by Great Lakes Airlines.

By: Mayor, David Lansford, 505-769-7828


March 23, 2007

Objections of Town of Silver City

It is respectfully requested that your office reconsider your Order served this date with specific regard to the choice of Phoenix as the "hub" for air service. Pending your reconsideration, we are requesting that the effective date of your Order be suspended indefinitely until 'this matter can be resolved.

By: Town Attorney, Robert Scavron, 505-388-8883



March 23, 2007

Comments of Mayor of Clovis

The City of Clovis has received an Order Selecting the Carrier from the DOT. Option 4 was chosen by the DOT for Clovis, which consists of 18 routes to Denver per week but no flights from Clovis to Albuquerque. It is critical that Clovis maintains air service to and from Albuquerque and I restate our support of Option 1 (flights to/from Denver and Albuquerque) and opposition to Option 4 (18 flights a week to/from Denver). We would most respectfully request that you recommend to the DOT that they reconsider their Docket Number OST-1996-1902 and allow for the implementation of Option 1 as submitted by Great Lakes Airlines.

By: Mayor, David Lansford, 505-769-7828



OST-1996-1902 - Clovis
OST-1996-1903 - Silver City/Hurley/Deming

March 26, 2007

Objections of New Mexico Department of Transportation | Word

I am writing to express my concern with your Division’s recent decision awarding the Essential Air Service contract for Clovis and Silver City to Great Lakes Airlines. My concern is not with the selection of Great Lakes but with the changes in both communities route restructuring. Great Lakes currently provide service from both communities to Albuquerque which is the desired destination of both communities. Clovis also has limited service to Denver as well.

The recent award notification to both communities would totally eliminate service to Albuquerque from both cities replacing it with Denver from Clovis and Phoenix from Silver City. In discussions with city officials from both communities, the elimination of Albuquerque in the route structure is not acceptable. Clovis definitely wants the Albuquerque destination and having Denver as a second destination, as is currently the case, is an added bonus. However, they do not want to drop Albuquerque in favor of Denver as is currently planned. Silver City also desires to keep Albuquerque in their route structure but had requested DoT consider adding some flights to Phoenix in addition (similar to Denver for Clovis). Apparently this was not clear in the February 14, 2007 letter Jon Paul Saari, Grant County Manager submitted to you prior to the final airline and route structure determination.

I am requesting your staff re-evaluate this route structure change. Would it be possible to revoke this current award and return to the current route structure for both communities? I believe this would be acceptable to both Great Lakes and each community. I would greatly appreciate anything you could do to provide the desired air service to these two New Mexico communities.

By: Aviation Division Director, Thomas Baca



March 29, 2007

Comments of New Mexico Senator Pete Domenici

The communities of Clovis and Silver City have contacted me with concerns about the lack of service to Albuquerque. It is my understanding that the city of Clovis expressly supported the EAS option offered by Great Lakes Aviation that would have provided for 12 nonstop round trips per week to Albuquerque from both Clovis and Silver City, and 5 one-stop round trips per week to Denver for Clovis. I further understand that Grant County and Sliver City were also supportive of continued service to Albuquerque, and desired service to Phoenix in addition to, not as a substitute for, service to Albuquerque.

As a large state, travel within New Mexico can often times be difficult. This is especially true for individuals living in small communities such as those served by the Clovis and Sliver City airports. As New Mexico's economy and population continue to grow, air service to Albuquerque will become increasingly important to small communities in my home state.

By: Pete Domenici


Order 2007-4-5
OST-1996-1902 - Clovis
OST-1996-1903 - Silver City/Hurley/Deming

Issued April 4, 2007 | Served April 9, 2007

Order Vacating Order 2007-3-18 and Requesting Proposals

We grant the motion to file a Petition for Reconsideration of Order 2007-3-18, filed by Grant County, New Mexico, and, upon review, vacate Order 2007-3-18 and solicit new proposals for service to Clovis and Silver City/Hurley/Deming, New Mexico; and

We request that carriers interested in providing essential air service at Clovis and/or Silver City/Hurley/Deming, New Mexico, submit their proposals, with or without subsidy requests, no later than 20 days after the date of service of this order.

An EAS eligible community is only guaranteed service that connects it to the national air transportation system. Consequently, it is not unusual for an EAS subsidized community to receive air service to a hub that is not its first choice. However, the communities of Clovis and Silver City have argued that they have a unique need for service to Albuquerque and we are willing to resolicit proposals from all interested carriers, whether or not they submitted proposals under the original RFP, to determine if a carrier is willing to provide such service. As such, we hope to balance the statutory criterion of community views with the Department's fiscal responsibility. At this point, we strongly encourage any potential applicant to work with Clovis and Silver City officials to craft proposals that meet their needs within the fiscal constraints of the Department. After we receive proposals, we will follow our normal carrier-selection procedure, i.e. we will once again notify the communities and give them an opportunity to respond to the proposals.

By: Michael Reynolds



OST-1996-1902 - Clovis
OST-1996-1903 - Silver City/Hurley/Deming

April 6, 2007

New Mexico Governor Bill Richardson Requesting Reconsideration

As Governor of New Mexico, I am writing to respectfully request that the US DOT reconsider its decision concerning the EAS contract for Clovis and Silver City, awarded to Great Lake Airlines. The award restructured the air route for both communities to eliminate service to Albuquerque. Although they are satisfied with the carrier, the route change does not reflect the needs of travelers in either community.

By: Bill Richardson


OST-1996-1902 - Clovis
OST-1996-1903 - Silver City/Hurley/Deming


April 27, 2007

Proposals of Pacific Wings d/b/a New Mexico Airlines - Bookmarked

We propose to provide both communities with two round trips each weekday and each weekend (12 round trips per week) to Albuquerque using nine-passenger Cessna Grand Caravan (C-208B) turboprop aircraft, at a combined annual subsidy rate of $1,954,205.00.

In order to provide USDOT and the EAS communities maximum flexibility, New Mexico Airlines is prepared to provide direct or one-stop service to one or both locations at the same rate.

If selected, New Mexico Airlines will also provide the following additional service at no cost to the EAS program in an effort to promote utilization, build traffic and lessen dependence on EAS subsidies:

Counsel: New Mexico Airlines, Franklin Ford, 808-873-0877


April 30, 2007

Proposals of Great Lakes Aviation

Great Lakes Aviation, LTD. is submitting this proposal to provide essential air transportation at these points in New Mexico assuming an Albuquerque hub only. Additional costs associated with the delinking of these communities from our Denver hub are inclusive within this proposal. Aircraft and indirect expenses have been modified to include the costs associated with repositioning crews and aircraft.

Since our original bid submission on January 3rd of this year, the company has seen a dramatic rise in fuel costs. Significantly higher fuel costs are reflected in this proposal.

Great Lakes considers this proposal to be our one and only proposal. All previous proposals are to be considered withdrawn.

Our proposal contemplates the use of 19 seat Beech 1900D Airliner equipment.

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



OST-1996-1902 - Clovis
OST-1996-1903 - Silver City/Hurley/Deming

May 1, 2007

Requests for Community Comments of:

By: Dennis DeVany



OST-1996-1902 - Clovis
OST-1996-1903 - Silver City/Hurley/Deming

May 4, 2007

Comments of Raytheon Airline Aviation

We have no axe to grind with New Mexico Airlines. We are merely attempting to set the record straight since for the foreseeable future we believe the 1900D will play an important role in the EAS structure, and it is important that DOT is aware of the facts.

By: David Carter



May 17, 2007

Clovis City Commission in Support of Great Lakes

After full consideration, the Clovis City Commission has voted to support the proposal of Great Lakes Airlines to continue as the essential air services provider. This decision was reached after a full opportunity for both airlines to submit their proposals to the Civil Aviation Board, followed by an additional opportunity for Pacific Wings L.L.C. d/b/a New Mexico Airlines and Great Lakes to make a presentation to the City Commission. The vote of the Clovis City Commission was 6 in favor and 2 opposed.

By: Mayor David Lansford


May 18, 2007

Town of Silver City in Support of Great Lakes

After much consideration of the competing proposals for essential air service between Silver City and Albuquerque, it is the position of the Town of Silver City that retaining the status quo with Great Lakes Aviation is in the best interest of the Town.

By: Mayor James Marshall


May 21, 2007

Senator Jeff Bingaman in Support of Great Lakes

I am writing in strong support of the recommendation of the Cities of Clovis and Silver City and Grant County that the Department of Transportation award a new two-year contract for Essential Air Service to Great Lakes Airlines. Great Lakes will continue to provide 12 non-stop roundtrips per week to Albuquerque with a twin-turboprop, Beechcraft 1900D pressurized 19-passenger airliner, which meets the minimum statutory standards allowed for Essential Air Service.

While I appreciate concerns that Great Lakes Airlines' bid of $1.18 million per year for service to each of the two cities represents a substantial increase over its previous contract of $859,000 per city, I note that about one-third of the more than 100 EAS communities now have annual subsidy rates greater than $1 million per year. As I understand it, the recent increase in the cost of commercial air service nationwide is a direct result of the dramatic increase in the cost of fuel. To help ensure the depattmeat has the funding needed to maintain commercial air service to small communities, twenty-seven of my senate colleagues recently co-signed my bipartisan letter to the Senate Appropriations Committee supporting an increase in funding to $127 million in FY08 for the EAS program.

By: Jeff Bingaman, 202-224-5521, senator_bingaman@bingaman.senate.gov



Order 2007-5-19
OST-1996-1902 - Clovis
OST-1996-1903 - Silver City/Hurley/Deming

Issued May 31, 2007 | Served June 5, 2007

Order Selecting Carrier

By this order, we are selecting Great Lakes Aviation, Ltd. to provide subsidized essential air service at Clovis and Silver City/Hurley/Deming, New Mexico, for two years, beginning May 1, 2007, through April 30, 2009. Clovis and Silver City/Hurley/Deming each will receive 12 nonstop round trips per week to Albuquerque with 19-passenger Beechcraft 1900D aircraft at an annual combined subsidy of $2,365,290.

By: Andrew Steinberg


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